Perion Network Ltd · NASDAQ:PERI
Perion Network — Q4 2023 Earnings Presentation
36 slides from Perion Network's earnings presentation, Feb 7, 2024
Slide 1: Q4 and FY 2023 Presentation
Q4 and FY 2023 Presentation February 7, 2024 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words “will,” “believe,” “e
Slide 3: Tal Jacobson CEO, Maoz Sigron CFO
Tal Jacobson Maoz Sigron CEO CFO 3
Slide 4: Perion
Perion We unlock advertising possibilities across all screens, platforms and locations, powered by advanced technology. One ecosystem. Cross channel. AI Driven. Locally optimized. Exist naturally along the consumer journey.
Slide 5: Perion along the Consumer Journey
Perion along the Consumer Journey Social Podcast Roadside Desktop/ Desktop/ Desktop Parking In-store TV Billboard Mobile Mobile Lot Sign Dynamic Wave AI XL Dynamic Direct In-article High Impact Retail Interactive Interactive Video Ad Audio Ads DOOH response Video ad ad focused DOOH ad CTV Ad Video a
Slide 6: Q4 2023 and 2024 overview
Q4 2023 Continued profitable growth through diversification. Notable growth in Search, CTV & Retail Media. Added Geo and channel expansion through the HiveStack acquisition. 2024 Continue to build an immersive consumer journey through technology. Increase our investment in technology with our own R&D
Slide 7: Q4 Consistent Growth
Q4 Consistent Growth Q4 2023 Revenue ($M) Q4 2023 Adjusted EBITDA1 ($M) 22 CAGR % 12% 36 CAGR % 12% Q4’21-23 YoY Q4’21-23 YoY Growth Growth 234.2 53.9 209.7 48.2 158.0 28.9 Q4-21 Q4-22 Q4-23 Q4-21 Q4-22 Q4-23 7 1 Adjusted EBITDA is a non-GAAP metric. Please see the Appendix to this presentation for
Slide 8: Annual Growth
Annual Growth FY 2023 Revenue ($M) FY 2023 Adjusted EBITDA1 ($M) 25 CAGR % 16% 56 CAGR % 28% 2021-2023 YoY 2021-2023 YoY Growth Growth 743.2 169.1 640.3 132.4 478.5 69.6 2021 2022 2023 2021 2022 2023 8 1 Adjusted EBITDA is a non-GAAP metric. Please see the Appendix to this presentation for a reconci
Slide 9: Noticeable Touchpoints in Q4/23
Noticeable Touchpoints in Q4/23 9
Slide 10: Perion CTV Growth Outpacing Market
Perion CTV Growth Outpacing Market 15% Connected TV CAGR Ad Spending US, 2023-20271 Billions $42.44 $38.24 $33.30 $30.10 $24.60 Q4 2023 FY 2023 2023 2024 2025 2026 2027 $14.4M $33.5M 20.0% Expected 2023 YoY CTV US Market growth1 69% YoY 56% YoY 1 Source: eMarketer, October 2023 10
Slide 11: Pause Ads in partnership with DirecTV
Pause Ads in partnership with DirecTV Branded TV moments for both linear and streaming Memorable CTV ad units Runs when viewers pause content Technology enables segmented audiences for optimal reach Shoppable experience to increase consumer action Used by leading brands 11
Slide 12: Perion Retail Media Growth
Perion Retail Media Growth 24% Retail Media Ad Spending CAGR US, 2023-20271 Billions $109.40 $88.65 $72.14 $59.61 $46.38 Q4 2023 FY 2023 2023 2024 2025 2026 2027 $20.2M $49.7M 23.1% Expected 2023 YoY Retail Media US Market growth1 196% YoY 114% YoY 1 Source: eMarketer, October 2023 12
Slide 13: WAVE gaining Retail traction - Pep Boys campaigns
WAVE gaining Retail traction - Pep Boys campaigns WAVE AI-based Dynamic Audio ads part of the full consumer journey More impactful. Personalized. Localized. Relevant. Shoppable. 2.4 X Visit Rate Lift 117% Incremental Sales Lift 100% Generative AI Available on multiple audio platforms 13
Slide 14: Amazon Publisher Services (APS) Integration
Amazon Publisher Services (APS) Integration Frictionless integration with Perion demand Access to premium publishers' inventory via APS Domain.com Any publisher that monetizes Header <Amazon JS/> with Amazon can now easily connect Perion demand and campaigns. No Technical integration is required, Pe
Slide 15: Partnering with Eletromidia Brazil with our DOOH solutions
Partnering with Eletromidia Brazil with our DOOH solutions Delivering on our promise of GEO expansion Reaching 29 million people daily The largest OOH media company in Brazil with more than 64,000 screens in the country's largest cities, out of which more than 46,000 are designed for a high impact d
Slide 16: Perion's DOOH for Retail CPG in action
Perion’s DOOH for Retail CPG in action Helena Rubinstein leverages HiveStack to drive in-store visits Advanced Geofence Targeting Increase foot traffic into physical stores Our advance technology to provide geofencing to plan and activate the campaign at specific DOOH screens in close proximity to Hel
Slide 17: Financial Results & Outlook
Financial Results & Outlook 17
Slide 18: FY 2023 Financial Highlights
FY 2023 Financial Highlights Revenue Adjusted GAAP Net Non-GAAP Cash flow from EBITDA1 Income Net Income1 Operations $743.2M $169.1M $117.4M $167.4M $155.5M 16% YoY Growth 28% YoY Growth 18% YoY Growth 40% YoY Growth 27% YoY Growth 23% Margin 16% Margin 55% ex-TAC Margin 1 Non-GAAP metrics. Please se
Slide 19: Q4 2023 Financial Highlights
Q4 2023 Financial Highlights Revenue Contribution Adjusted Non-GAAP Non-GAAP ex-TAC1 EBITDA1 Net Income1 Diluted EPS1 $234.2M $90.6M $53.9M $52.9M $1.04 12% YoY Growth 3% YoY Growth 12% YoY Growth 19% YoY Growth 16% YoY Growth 39% Margin 23% Margin 59% ex-TAC margin 1 Non-GAAP metrics. Please see th
Slide 20: Revenue
22% 12% 25% 16% CAGR YoY CAGR YoY 2021-2023 Q4’21-23 Growth Growth Revenue 743.2 ($M) 640.3 478.5 234.2 209.7 158.0 Q4-21 Q4-22 Q4-23 2021 2022 2023 20
Slide 21: Display Advertising Revenue ($M)
9% 3% 23% 10% CAGR YoY CAGR YoY Decline Growth Display Q4’21-23 2021-2023 Advertising Revenue ($M) 360.7 398.2 123.8 119.8 265.3 100.2 Q4-21 Q4-22 Q4-23 2021 2022 2023 Retail Media1 increased by 196% Retail Media1 increased by 114% CTV2 increased by 69% YoY CTV2 increased by 56% YoY Video decreased
Slide 22: Search Advertising Revenue ($M)
41% 33% 27% 23% Search CAGR Q4’21-23 YoY Growth CAGR 2021-2023 YoY Growth Advertising Revenue ($M) 344.9 279.6 114.4 213.2 85.9 57.8 Q4-21 Q4-22 Q4-23 2021 2022 2023 30.2 million average daily searches 29.1 million average daily searches An increase of 37% YoY An increase of 57% YoY 162 publishers 1
Slide 23: Contribution Ex-TAC
42% 42% Contribution 40% Ex-TAC 42% 41% 39% Q4-21 Q4-22 Q4-23 2021 2022 2023 Change in Media buying Gaining Market Product mix optimization share with ongoing of our supply and demand in a competitive optimization assets through iHUB environment 23
Slide 24: Adjusted EBITDA ($M)
Adjusted EBITDA/Contribution ex-TAC Adjusted EBITDA/Revenue Adjusted 36% 12% 56% 28% CAGR YoY CAGR YoY EBITDA1 ($M) Q4’21-23 Growth 2021-2023 Growth 169.1 55% 132.4 53.9 23% 48.2 59% 23% 28.9 69.6 Q4-21 Q4-22 Q4-23 2021 2022 2023 1 Adjusted EBITDA is a non-GAAP metric. Please see the Appendix to thi
Slide 25: Q4 2023 GAAP/Non-GAAP Net Income
Q4 2023 49% 2% 45% 19% CAGR YoY CAGR YoY Q4’21-23 Growth Q4’21-23 Growth GAAP/ Non-GAAP GAAP Non-GAAP Net Income1 Net Income Net Income ($M) 52.9 44.7 39.4 38.7 25.3 17.7 Q4-21 Q4-22 Q4-23 Q4-21 Q4-22 Q4-23 1 Non-GAAP net income is a non-GAAP metric. Please see the Appendix to this presentation for
Slide 26: FY 2023 GAAP/Non-GAAP Net Income
FY 2023 74 % 18% 67 % 40% CAGR YoY CAGR YoY 2021-2023 Growth 2021-2023 Growth GAAP/ GAAP Non-GAAP Non-GAAP Net Income Net Income1 Net Income ($M) 167.4 119.8 117.4 99.2 60.0 38.7 2021 2022 2023 2021 2022 2023 1 Non-GAAP net income is a non-GAAP metric. Please see the Appendix to this presentation fo
Slide 27: Continuous Growth in Cost Efficiency
Revenue % OPEX+COGS1 25% Continuous 21% 19% Growth in Cost Efficiency 23% 19% 16% $158.0M $209.7M $234.2M $478.5M $640.3M $743.2M Q4-21 Q4-22 Q4-23 2021 2022 2023 Use of process Favorable exchange Offshoring our Automation rate (ILS/US$) operations 1 Non-GAAP Operating Expenses and Cost of Revenue. P
Slide 28: Strong Balance Sheet & Cash Flow
Strong Balance Sheet & Cash Flow Financial to Support Metric ($M) Q4-22 Q4-23 2023 Growth Plans Net cash1 429.6 472.7 472.7 Operating Cash Flow 38.2 50.2 155.5 1 As of end of period. Net cash includes cash and cash equivalents, short-term bank deposits and marketable securities 28
Slide 29: Guidance
Guidance In $ Millions 2023 2024 Guidance YoY Growth1 YoY Proforma Growth1 Revenue $743.2 $860-$880 17% 10% Adjusted EBITDA $169.1 $178-$182 6% 10% Adjusted EBITDA to Revenue 23% 21%1 Adjusted EBITDA to Contribution ex-TAC 55% 51%1 1 Calculated at revenue and adjusted EBITDA guidance midpoint. 29
Slide 30: Thank You
Thank You
Slide 31: Appendix
Appendix
Slide 32: Balance Sheet Overview ($M)
Balance Sheet Overview ($M) Numbers may not add due to rounding 32
Slide 33: Income Statement ($M)
Income Statement ($M) 33 Numbers may not add due to rounding
Slide 34: Cash Flow Overview ($M)
Cash Flow Overview ($M) Numbers may not add due to rounding 34
Slide 35: Non-GAAP Reconciliations ($M)
Non-GAAP Reconciliations ($M) Numbers may not add due to rounding 35
Slide 36: Non-GAAP Reconciliations ($M)
Non-GAAP Reconciliations ($M) Numbers may not add due to rounding 36