Business
Perion Delivers Another Strong Quarter, with 31% Revenue Growth and 141% Growth in Net Income
Company increases 2022 adjusted EBITDA guidance from $102M to at least $120M as a result of a sustainable improvement in profitability TEL AVIV, Israel & NEW
About this update from Perion Network Ltd
[{"type":"text","content":"\nCompany increases 2022 adjusted EBITDA guidance from $102M to at least $120M as a result of a sustainable improvement in profitability\n\n TEL AVIV, Israel & NEW YORK--(BUSINESS WIRE)--\nPerion Network Ltd. (NASDAQ & TASE: PERI), a global advertising technology company whose synergistic solutions are delivered across the three primary channels of digital advertising – ad search, social media and display/video/CTV advertising – today reported record financial results for the third quarter ended September 30, 2022.\n\nDoron Gerstel, Perion’s CEO, stated, “Once again, Perion outperformed the adtech industry – and we believe will continue to do so for the following reasons:\n\n\nWe are leveraging our diversification strategy as advertisers are shifting their direct response budgets from social advertising (mainly Facebook) to search advertising\n\n\nWe are continuously expanding our profit margins, which demonstrates the strategic and economic value of our Intelligent HUB (iHUB)\n\n\nWe are bringing innovation – through SORT™ – in response to advertiser recognition that privacy matters more than ever\n\n\nWe are meeting our clients’ objective to enhance their brand equity by increasing user engagement through Perion’s High-Impact ad suite.”\n\n\n“This was the eighth consecutive quarter we delivered top and bottom-line double-digit growth on a year-over-year basis,” Mr. Gerstel continued. “The 145% year-over-year increase in operating cash flow to nearly $35 million, reflects the significant earnings power of our business model. With a cash position of $390 million at quarter end, we have significant dry powder to execute on our growth strategy, delivering value to shareholders for years to come.”\n\nThird Quarter 2022 Business Highlights\n\n\nMedia margin increased to 41%, compared with 39% in Q3 2021\n\n\nAdjusted EBITDA to revenue ex-TAC of 51% vs. 37% last year. This is among the highest in the industry\n\n\nVideo revenue increased by 209% year-over-year, representing 44% of Display Advertising revenue\n\n\nCTV revenue increased by 134% year-over-year, representing 9% of Display Advertising revenue compared with 5% last year\n\n\nSORTTM spending increased by 25% over the previous quarter, driven by an 11% increase in the number of customers from 126 to 140\n\n\nThe increase in market adoption of our holistic Video Platform solu...