Slide 1: Q1 2022 Presentation
Q1 / 2022 Presentation April 28th , 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, Maoz Sigron CFO
Doron Gerstel Maoz Sigron CEO CFO
Slide 4: Record revenue growth in Q1 2022
40% YoY Record revenue GROWTH in Q1 – 2022 125 ($M) Perion is built to 90 capitalize on any market changes as 66 advertisers shift 53 budgets between different pillars of digital advertising 63 65 78 60 83 118 110 121 158 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 2022
Slide 5: Our diversification model in action
Display Adv 55% Our Q1 22 diversification model in action Search Adv 45% 40% 5% 2% Video CTV Retail Allowing us to Focus On High Growth Categories Display Adv 42% Q1 21 15% 3% 1% Search Adv Video CTV Retail 58%
Slide 6: Digital Ad Spend
Perion continues to outperform AdTech AdTech category 23% CAGR 20-22 ($B) The three pillars’ Digital Ad Spend strategy drives exceptional growth 401 521 602 39% despite changes in CAGR 20-22 market dynamics 2020 2021 2022
Slide 7: Record EBITDA margin
158% YoY Record EBITDA GROWTH margin ($M) 22.7 AI-driven iHub drives: scalable operational efficiencies 42% 8.8 Improved media margin 6.2 5.1 21% 25% 7.4 7.6 12.2 2.4 8.7 15.3 14.3 17.6 28.9 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 2022
Slide 8: Connecting Perion's Assets To Our iHub
Connecting Perion’s Assets To Our iHub Demand Supply Social Social Network Platform Brand &Agency O&O Video Network DSPs High-impact Monetization Display&CTV Platform Intelligent HUB CTV Network High- intent signal Video&Display Network Perion Assets
Slide 9: iHub Benefits
Increased Customer value Reduced operational cost iHub Benefits Reduced media cost
Slide 10: Patented Technology
24/7 Patented Always responds contextual to travel ads information Technology iHUB Always responds to car ads external user signals signals Always responds to insurance ads We have verified that based on click-through rates cc observed for Q1 2022 campaigns, SORT™ demonstrates the ability to outperf
Slide 11: Now Advertisers Have a Choice!
Now Advertisers Have a Choice! Scale, Privacy and yet...Better Performance Delivered 40% towards new audiences SORT vs. 3rd Party Cookies on cookie-free browsers 106% 38% Lift in Page Lift in Brand Grabber CTR Reveal CTR 60% 35% Lift in Page Grabber Lift in Brand Reveal Interaction Rate Interaction
Slide 12: Cookie Free Solution
Higher Exposure 158MM+ Impressions delivered Cookie Free Solution More Spend 110+ START HERE More Clicks 74% Campaigns are want visible using SORT protection seals Being used on Additional 110 campaigns FlyWheel Data in 6 months AI/ ML Modeling Increased Higher ROAS Performance Dozens of CTR up to i
Slide 13: Display Advertising Growth
Display Advertising Growth ($M) 68.6 Brand and Agency is looking for FULL funnel solution 38.1 23.7 18.7 37.9 68.4 58.0 69.0 100.2 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 2022
Slide 14: Full Funnel Awareness to Performance
Awareness Consideration Intent Full Funnel Awareness to Performance Buy Innovative, cross-screen Connected Cart connects awareness to performance synchronization, at every stage of media funnel with connected cart at every funnel stage 2.5X Display CTR Higher 112K $1M+ Products Added Carted Product
Slide 15: Search Advertising Growth
2022 Search 2021 2020 Advertising 2019 56.7 Growth 51.7 ($M) 42.3 18.1 Increased number 35.2 17.7 of publishers 17.5 to 120 from 95 15.7 12.2 Travel is back 11.9 7.8 42.2 44.2 51.8 41.7 45.5 49.9 51.7 52.0 57.8 Q1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 2022
Slide 16: Financial Results Quarterly Overview Q1 2022
Financial Results Quarterly Overview Q1 2022
Slide 17: Q1 Financial Highlights
Q1 22 Financial Highlights $125.3M $22.7M 18% 0.44$ 40% YoY 158% YoY 10% 132% YOY Growth Growth in Q1 2021 Growth Revenue Adjusted EBITDA Non-Gaap EBITDA To Revenue EPS
Slide 18: Q1 22 Revenue
40% GROWTH 36% GROWTH Q1 22 Revenue $66.1M $89.8M $125.3M Q1 20 Q1 21 Q1 22 $26M
Slide 19: Q1 22 Display Advertising Revenues
80% GROWTH 1. 341% year over year Q1 22 growth in video and 61% CTV, representing 46% Display GROWTH of Display advertising revenue Advertising 2. Average client spend increase by 42% Revenues 3. Number of clients increase by 3% $23.7M $38.1M $68.6M Q1 20 Q1 21 Q1 22 $26M
Slide 20: Q1 22 Search Advertising Revenues
10% GROWTH 1. 18.1 million average Q1 22 daily commercial searches compared to Search 17.7 last year. 2. 120 publishers Advertising compared to 95 last year. Revenues $42.3M $51.7M $56.7M Q1 20 Q1 21 Q1 22 $26M
Slide 21: Revenue Diversification Is Key
Revenue Diversification Is Key 36% 42% 55% 45% 64% Q1 20 58% Q1 21 Q1 22 Display Advertising revenue Search Advertising revenue
Slide 22: Q1 22 Improved Media Margin
Q1 22 Improved Media Margin Media Margin Media Margin 39% 43% Product mix improvement Our ability to connect the Q1 21 Q1 21 Supply and Demand sides of the open-web to our central iHub – an intelligent TAC TAC control system 61% 57% Incremental Revenue with low variable cost
Slide 23: Q1 22 OPEX+COGS
$66.1M $125.3M 44% $89.8M 1. Scalability embedded in our business model Q1 22 35% 2. iHub as a shared infrastructure resource OPEX+COGS $66.1M 30% 3. Offshoring our operations $28.9M $31.1M $37.8M Q1 20 Q1 21 Q1 22 Revenue OPEX+COGS $26M % To Revenue
Slide 24: Q1 22 Net Income GAAP
368% 267% GROWTH GROWTH Q1 22 Net Income 80% GAAP 148% GROWTH GROWTH $1.3M $3.3M $15.5M $0.05 $0.09 $0.33 Q1 20 Q1 21 Q1 22 Q1 20 Q1 21 Q1 22 Net income Diluted EPS
Slide 25: Q1 22 Non-GAAP Net Income and Diluted EPS
132 GROWTH 196% GROWTH $0.44 $20.7M Q1 22 12% GROWTH Non-GAAP 41% $0.19 $0.17 Net Income and GROWTH $7.0M Diluted EPS $5.0M Q1 20 Q1 21 Q1 22 Q1 20 Q1 21 Q1 22 Net income EPS
Slide 26: Q1 22 Adjusted EBITDA
158% GROWTH $22.7M 18% EBITDA Q1 22 Compared to To Revenue 10% Adjusted In 2021 41% EBITDA GROWTH $8.8M $6.2M 42% EBITDA Compared to To Revenue 25% Ex TAC In 2021 Q1 20 Q1 21 Q1 22
Slide 27: Q1 22 Cash from Operations
75% GROWTH $23.6M Q1 22 440% Cash from GROWTH $13.5M Operations $2.5M Q1 20 Q1 21 Q1 22
Slide 28: Cash as of March 31, 2022
$321.6M $342.5M $321.6M Cash as of March 31, 2022 $128M $128M $39.5M Q1 2020 Q1 2021 Q4 2021 Q1 2022
Slide 29: Thank You
Thank You
Slide 30: Microsoft Advertising Global Supply Partner Of The Year
Microsoft Advertising Global Supply Partner Of The Year
Slide 31: Sustainable & Predictable business model: Improved 2022 Guidance
Sustainable & Predictable business model 32% 620 YoY $118M GROWTH ($M) - 640 Improved 2022 Guidance $78M 478 With robust growth, increased 328 profitability, and $342.5M in cash and zero debt, Perion is 44% 98 YoY poised to further accelerate its - GROWTH Revenue 22 momentum. We have the 102 EBITDA
Slide 32: Thank You
Thank You
Slide 33: Appendix
appendix 33
Slide 34: Balance Sheet GAAP Basis Overview ($M)
Balance Sheet GAAP Basis Overview ($M) Current Assets 31/12/2021 31/03/2022 Current Liabilities 31/12/2021 31/03/2022 Cash and cash equivalents 104.4 92.9 Accounts payable 107.7 94.1 Restricted cash 1.1 1.1 Accrued expenses and other liabilities 40.3 27.1 Short-term bank deposit 217.2 249.6 Short-te
Slide 35: Income Statement GAAP Basis ($M)
Income Statement GAAP Basis ($M) Full year ended, P&L - GAAP Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 2018 2019 2020 2021 Display Advertising revenues 29.3 33.2 26.2 37.3 18.6 21.3 21.6 26.4 23.8 18.7 37.9 68.4 38.1 58.0 69.0 100.2 68.6 12
Slide 36: Cash Flow GAAP Basis Overview ($M)
Cash Flow GAAP Basis Overview ($M) Full year ended, Cash Flow Results Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 2018 2019 2020 2021 Operating activities Net Income 0.1 1.0 2.2 4.9 1.2 2.9 2.9 5.9 1.3 (2.2) 2.1 9.0 3.3 7.1 10.6 17.7 15.5 8.1
Slide 37: Non-GAAP Adjustments ($M)
Non-GAAP Adjustments ($M) Full year ended, Reconciliation of GAAP to NON-GAAP Results Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 2018 2019 2020 2021 GAAP Net Income (Loss) from continuing operations 0.1 1.0 2.2 4.9 1.2 2.9 2.9 5.9 1.3 (2.2)
Slide 38: P&L Non-GAAP ($M)
P&L Non-GAAP ($M) Full year ended, P&L - Non-GAAP Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 2018 2019 2020 2021 Display Advertising revenues 29.3 33.2 26.2 37.3 18.6 21.3 21.6 26.4 23.7 18.7 37.9 68.4 38.1 58.0 69.0 100.2 68.6 126.0 87.9 14