Slide 1: Q2 / 2022 Presentation
Q2 / 2022 Presentation Aug 3rd , 2022 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation and our remarks contain forward-looking statements (within the meaning of The Private Securities Litigation Reform Act of 1995) that involve substantial risks and uncertainties, including statements regarding our expectations and beliefs about our busines
Slide 3: Doron Gerstel, CEO and Maoz Sigron, CFO
Doron Gerstel Maoz Sigron CEO CFO
Slide 4: 5 Things to remember when volatility is the new norm
We are diversified to capitalize on shifts in spending We are continuously expanding our margin demonstrating the effectiveness of our Intelligent 5 Things HUB (iHUB) to remember We are meeting the demand for higher user when volatility engagement with our high-impact Ad suite is the new norm We are
Slide 5: Revenue ($M): our business is agile
34% YoY Revenue ($M) GROWTH 147 Our business is agile and shifts 110 to where media budgets are trending 60 66 83 118 90 121 158 125 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022
Slide 6: Perion Continues to Outperform
Perion Continues to 602 Digital Ad Spend Outperform 521 23% The Category CAGR 20-22 401 ($B) The three-pillar Digital Ad Spend strategy drives World - wide exceptional growth 39% CAGR 20-22 despite changes in market dynamics 2020 2021 2022E
Slide 7: EBITDA ($M): continuously expanding margins
99% EBITDA ($M) EBITDA/Revenue Ex TAC % YoY GROWTH We are 28 47% continuously expanding our margins through our 14 iHUB 33% Operational efficiencies Reduce media cost 2 6 10% 9 15 9 18 29 23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022
Slide 8: Connecting Perion's Assets to our iHub
Connecting Perion’s Assets to our iHub Our iHub is an industry-leading innovation which unifies a fragmented ecosystem to create a model that eliminates waste and rewards clients Demand Supply Social Social Network Platform Brand &Agency O&O Video Network DSPs High-impact Monetization Display & CTV
Slide 9: Advertisers recognize that consumers favor privacy (SORT)
Advertisers More Spend recognize 69 Existing SORT customers Increase their spend by that 50% QoQ consumers increasingly More Customers START More Clicks favor brands HERE Approx. 62% 231M+ Impressions delivered that protect increase in spend QoQ and almost 3.3M Clicks their privacy double the number
Slide 10: Advertising Revenue
Advertising Revenue 41% YoY We meet GROWTH the demand $82M for higher engagement $58M with High-Impact Ad suite $19M High impact video and CTV suite drives user engagement Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022
Slide 11: High impact ads maintain brand equity
High impact ads maintain brand equity during & beyond economic downturn Grow long term brand awareness with attention grabbing ad formats and Brand encourage immediate 124K+ $1M+ Recall Lift results with a shortened products added product value in cart, 2X to cart directly one step away from Kantar
Slide 12: Innovation - High impact gaming suite
Innovation-High impact gaming suite Increase brand affinity & memorability among a growing, diverse & valuable audience High Impact ads in relevant game experiences from top publishers on Over $6B PC, Console & mobile “…this was a great Mobile In-Game Revenue by EOY – awareness play 100% Viewable, n
Slide 13: Innovation - Retail CTV Personalization
Innovation – Retail CTV Personalization Dynamic & personalized retail video solutions with infinite possibilities 904 stores in 17 States 4,520 video possibilities
Slide 14: 54 publishers already used our video platform
Video Player Content 54 publishers Vi Display Management System (CMS) already used Outstream Yield our video Management platform Video Studio Client-Side Support Prebid, Video AD vs. 22 in Q2/2021 (Auto video VAST, VPAID. generation from Google IMA JS Article) Platform SDK Full Server API Bidding In
Slide 15: Search Advertising
26% Search Monetized Search (M) RPM increase % YoY Advertising GROWTH $65M DR continues to be a safe $52M harbor when ill $42M 18.1 winds blow 17 17.7 17.5 15.7 43% Increased number 12.2 of publishers 52% to 124 from 93 in Q2 2021 -30% Travel is back 42 45 50 52 52 58 57 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 16: Financial Results Quarterly Overview
Financial Results Quarterly Overview 22 Maoz Sigron, CFO
Slide 17: Q2 Financial Highlights
Q2 22 Financial Highlights $146.7M $28.5M $19.5M $0.51 34% YoY 99% YoY 175% YoY 55% YoY Growth Growth Growth Growth Revenue Adjusted Gaap Net Non-GAAP EBITDA Income EPS 27
Slide 18: Q2 2022 Revenue
34% 56% YoY GROWTH CAGR Q2 2022 Revenue ($M) 60.3 109.7 146.7 Q2 20 Q2 21 Q2 22 $26M 16
Slide 19: Q2 2022 Display Advertising Revenues
41% 109% YoY GROWTH CAGR 1. Video: 273% YoY growth, 44% of Advertising revenue 2. CTV: 90% YoY growth, 6% of Advertising revenue Q2 2022 3. SORT: Customers doubled QoQ from 65 to 126, average spend Display increased by 62%, 14% of Advertising revenue Advertising 4. Vidazoo platform: 145% YoY increas
Slide 20: Q2 2022 Search Advertising Revenues
26% 25% YoY GROWTH CAGR 1. Average RPM increased by 42% YoY Q2 2022 2. Number of Publishers increased by 33% YoY Search Advertising Revenues ($M) 41.7 51.6 65.1 Q2 20 Q2 21 Q2 22 $26M 18
Slide 21: Business Diversification Is Key
Business Diversification Is Key 31% 53% 56% 44% 69% Q2 20 47% Q2 21 Q2 22 Display Advertising revenue Search Advertising revenue 19
Slide 22: Continued Improvement in Media Margin
Continued Improvement in Media Margin Media Margin Media Margin Media Margin 39% 40% 41% 1. Improved commercial terms 2. Favorable product mix Q2 20 Q2 21 Q2 22 3. Intelligent Hub Control Systems TAC TAC TAC 61% 60% 59% 20
Slide 23: Efficiency Drives Profitability
146.7 109.7 1. Process automation 39% 2. iHub as a central 30% infrastructure resource Efficiency 24% 3. Higher scalability 60.3 Drives Profitability 23.8 32.6 35.6 Q2 20 Q2 21 Q2 22 Revenue ($M) OPEX+COGS ($M) % To Revenue $26M 21
Slide 24: Q2 2022 Net Income GAAP
Net income Diluted EPS GAAP 175% YoY 116% YoY GROWTH GROWTH Q2 2022 Net Income GAAP ($M) -2.2 7.1 19.5 -0.08 0.19 0.41 Q2 20 Q2 21 Q2 22 Q1 20 Q1 21 Q1 22 22
Slide 25: Q2 2022 Net Income Non-GAAP
Net income Non-GAAP Diluted EPS 99% 55% YoY YoY GROWTH GROWTH Q2 2022 Net Income Non-GAAP ($M) 1.9 12.3 24.5 0.07 0.33 0.51 Q2 20 Q2 21 Q2 22 Q1 20 Q1 21 Q1 22 23
Slide 26: Q2 2022 Adjusted EBITDA
99% YoY GROWTH 19% EBITDA Compared to To Revenue 13% Q2 2022 In Q2 2021 Adjusted EBITDA 47% EBITDA ($M) Compared to To Revenue 2.5 14.3 28.5 33% Ex TAC In Q2 2021 Q2 20 Q2 21 Q2 22 24
Slide 27: Q2 2022 Cash from Operations
76% YoY GROWTH Q2 2022 Cash from Operations ($M) 0.2 14.6 25.7 Q2 20 Q2 21 Q2 22 25
Slide 28: Net Cash as of June 30, 2022
353 Net Cash as of June 30,2022 ($M) 54 48 60 60 128 141 156 322 342 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022
Slide 29: Thank You
Thank You
Slide 30: TTM "Rule of 40"
YoY Revenue Growth EBITDA Margin 24% 20% 23% 35% 39% 60% 65% 60% 62% 55% 15% 16% TTM 12% 15% 18% “Rule of 40” 40% 10% 10% 12% 10% 11% 11% 10% 13% 25% 29% 48% 52% 46% 46% 37% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022
Slide 31: Sustainable & predictable business model
Revenue 22 Sustainable EBITDA 22 Revenue & predictable EBITDA $118M 620 32% CAGR 20-22E business model YoY 39% to 640 GROWTH ($M) $78M 478 328 “ Company Reiterates Annual Guidance, Reflecting Ongoing Confidence in Sustainable Growth 102+ 47% CAGR 20-22E Despite Challenging Macro YoY 76% 41%+ GROWTH
Slide 32: 5 Things to remember
We are diversified to capitalize on shifts in spending We are continuously expanding our margin demonstrates the effectiveness of our Intelligent 5 Things HUB (iHUB) to remember We are meeting the demand for higher user when volatility engagement with our high-impact Ad suite is the new norm We are
Slide 33: Appendix
appendix 33
Slide 34: Balance Sheet Overview ($M)
Balance Sheet Overview ($M) Current Assets 31/12/2021 30/06/2022 Current Liabilities 31/12/2021 30/06/2022 Cash and cash equivalents 104.4 102.4 Accounts payable 107.7 96.7 Restricted cash 1.1 1.0 Accrued expenses and other liabilities 40.3 25.3 Short-term bank deposit 217.2 250.6 Short-term operati
Slide 35: Income Statement ($M)
Income Statement ($M) Full year ended, 6 Months ended, P&L - GAAP Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 2017 2018 2019 2020 2021 2021 2022 Display Advertising revenues 23.8 18.7 37.9 68.4 38.1 58.0 69.0 100.2 68.6 81.6 134.5 126.0 87.9 148.7 265.3 96.1 150.2 Search Advertising
Slide 36: P&L Non-GAAP ($M)
P&L Non-GAAP ($M) Full year ended, 6 Months ended, P&L - Non-GAAP Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 2017 2018 2019 2020 2021 2021 2022 Display Advertising revenues 23.7 18.7 37.9 68.4 38.1 58.0 69.0 100.2 68.6 81.6 134.5 126.0 87.9 148.7 265.3 96.1 150.2 Search Advertising
Slide 37: Non-GAAP Adjustments ($M)
Non-GAAP Adjustments ($M) Full year ended, 6 Months ended, Reconciliation of GAAP to NON-GAAP Results Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 2017 2018 2019 2020 2021 2021 2022 GAAP Net Income (Loss) from continuing operations 1.3 (2.2) 2.1 9.0 3.3 7.1 10.6 17.7 15.5 19.5 (72.8)
Slide 38: Cash Flow Overview ($M)
Cash Flow Overview ($M) Full year ended, 6 Months ended, Cash Flow Results Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 2017 2018 2019 2020 2021 2021 2022 Operating activities Net Income 1.3 (2.2) 2.1 9.0 3.3 7.1 10.6 17.7 15.5 19.5 (72.8) 8.1 12.9 10.2 38.7 10.4 35.0 Adjustments requ
Slide 39: Thank You
Thank You