Slide 1: Q3 2023 Investor Presentation
Q3 2023 Investor Presentation | November 1, 2023 1
Slide 2: 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,” “expect,” “intend,” “plan,”
Slide 3: Tal Jacobson CEO, Maoz Sigron CFO
Tal Jacobson CEO Maoz Sigron CFO
Slide 4: Continued focus
Continued through and focus on and
Slide 5: Continuous Top and Bottom-Line Growth
Continuous Top and Bottom-Line Growth Revenue Contribution Adjusted EBITDA! ex-TAC! $185.3M $77.3M $42.7M 17% voy *+19% voy +29% voy 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric.
Slide 6: Q3 2023 Revenue and Adjusted EBITDA
Q3 2023 Revenue Q3 2023 Adjusted EBITDA1 1
Slide 7: Connected TV and Retail Media Ad Spending
Connected TV Ad Spending Retail Media Ad Spending US, 2023-2027 US, 2023-2027 Billions % Change Billions % Change Expected 2023 CTV Expected 2023 Retail Media US Market growth1 US Market growth1 1 Source: eMarketer, March 2023
Slide 8: Technology-Driven Growth
Technology-Driven Growth
Slide 9: Creative, data and channel approach
1 2 3 4 Engaging, dynamic, Strategic use of Relevantly distributed Measure results across high-impact creative advanced data, across premium campaigns, channels targeting and publishers & channels and screens audience for CTV, display, video, segmentation social, DOOH & audio
Slide 10: Sports CTV ad during lulls in the game
Runs during Sports with the ad alongside the game Technology identifies a lull in the action Canvas around the ad designed per advertiser needs
Slide 11: Stay-live experience after Yankees home runs
Stay-live experience after Home Runs in New York Yankees baseball games in CTV/OTT Branding inside the broadcast, right after the most exciting moment in the game
Slide 12: Notable Q3 CTV Clients
Notable Q3 CTV Clients RA © Fidelity COMCAST Ba urd er A Mercedes-Benz 4) ADELTA {) FANDUEL HALZEON maZzDa’ Boat’ Head ACURA KINGS GAKLEY
Slide 13: Digital audio solutions
Weekly Ads Location, Audience,Weather, Generative AI Delivery via Podcasts, Radio, Measurement Audio Content Audio Engine Music Services & Attribution
Slide 14: US Digital Audio Services Ad Spending, 2023-2027
US Digital Audio Services Ad Spending, 2023-2027 Digital audio % Change services ad spending, $B Source: eMarketer, March 2023
Slide 15: Part of the full consumer journey
Part of the full consumer journey More impactful. Personalized. Localized. Relevant. Shoppable. Already implemented by Albertsons, America's 2nd largest supermarket chain - as First Adopter
Slide 16: Financial Results & Outlook
Financial Results & Outlook
Slide 17: Q3 2023 financial highlights
Q3 2023 Revenue Contribution ex-TAC Adjusted GAAP Net Non-GAAP (Revenue ex-TAC)! EBITDA! Income Diluted EPS! QO © ® ® ® $185.3M $77.3M $42.7M $32.8M $0.84 17% YoY Growth 19% YoY Growth 29% YoY Growth 28% YoY Growth 38% YoY Growth 42% Margin 23% Margin 18% Margin 1 Non-GAAP metrics. Please see the Ap
Slide 18: Revenue
Q3 2023 Revenue ($m) 24% CAGR Q3'21-23 121.0 158.6 a Q2 4 a Q2 4 a Q2 17% YoY Growth 185.3 2021 2022 2023 18
Slide 19: Retail Media, CTV and Video revenue growth
Retail Media1 revenue increased by 112% CTV2 increased by 39% YoY Video decreased by 16% YoY
Slide 20: Contribution ex-TAC
Q3 2023 29% CAGR Q3'21-23 20% YoY Growth 86.1 71.8 52.0 Q3-21 Q3-22 Q3-23 T 31.3 million daily searches An increase of 86% YoY T 164 publishers An increase of 16% YoY 20
Slide 21: Optimization of supply and demand assets through iHUB
through ongoing optimization of our supply and demand assets through iHUB with low variable cost
Slide 22: Adjusted EBITDA/Contribution ex-TAC
Q3 2023 29% Adjusted EBITDA/Contribution ex-TAC o YoY © Adjusted EBITDA/Revenue Growth 42.7 56% CAGR Q3'21-23 17.6 fel] Q2 fox cod fel] Q2 fox cod fel] Q2 fox 2021 2022 2023 1 Adjusted EBITDA is a non-GAAP metric, Please see the Appendix to this presentation for a reconciliation of each to the 2 nea
Slide 23: GAAP/Non-GAAP Net Income
Q3 2023 GAAP/ Non-GAAP Net Income ($M) GAAP 28% Net Income orth 76% CAGR Q3'21-23 32.8 25.6 10.6 Q3-21 Q3-22 Non-GAAP Net Income! 66% CAGR Q3'21-23 29.9 15.4 Q3-21 Q3-22 1 Non-GAAP net income is a non-GAAP metric. Please see the Appendix to this presentation for a reconciliation to the nearest GAAP
Slide 24: Cost Efficiency and FTE Productivity
Cost Efficiency FTE Productivity $84.1K $66.0K 25% $38.7K $121.0M $17.6M $33.0M $42.7M Q3-21 Q3-22 Q3-23 Q3-21 Q3-22 ™ Revenue ~~ % OPEX+COGS! Adj.EBITDA ~ Adj. EBITDA per FTE? iHUB as a shared Incremental revenue Offshoring our infrastructure resource with low variable cost operations 1 Non-GAAP Op
Slide 25: Net cash and Operating Cash Flow
Net cash1 Operating Cash Flow
Slide 26: 2023 Guidance
In $ Millions 2022 2023 Guidance YoY Growth! Revenue $640.3 $730-$750 16% Adjusted EBITDA $132.4 $167+ 26% Adjusted EBITDA to Revenue 21% 23%! Adjusted EBITDA to Contribution ex-TAC 49% 54%! 7 \ J \ 7 1 Calculated at revenue guidance midpoint. Adjusted EBITDA year-over-year growth calculated based o
Slide 27: Thank You
Thank You
Slide 28: Appendix
Appendix
Slide 29: Balance Sheet Overview ($m)
Balance Sheet Overview ($m) Condensed Consolidated Balance Sheets Current Assets 9/30/2023 31/12/2022 Current Liabilities 9/30/2023 31/12/2022 Cash and cash equivalents 197.9 176.2 Accounts payable 139.5 155.9 Restricted cash 1.3 1.3 Accrued expenses and other liabilities 33.8 37.9 Short-term bank d
Slide 30: Consolidated Statements of Operations - GAAP
| Consolidated Statements Of Operations - GAAP. Display Advertising revenue Search Advertising revenue Cost of revenue Traffic acquisition costs and media buy Research and development Selling and marketing General and administrative Changes in fair value of contingent consideration Depreciation and
Slide 31: Cash Flow Overview ($m)
Cash Flow Overview ($m) 9 Months ended Condensed Consolidated Statements of Cash Flows Cash flows from operating activities Net Income 33 71106 =-177S 55 19.5 5.6 38.7 238.8 2432.8 210 60.5 78.0 Adjustments required to reconcile net income to net cash 10.2 75 360 old BA. 6.2 91 (05) (60) 2607.3 213°
Slide 32: Non-GAAP Reconciliations ($m)
Non-GAAP Reconciliations ($m) 9 Months ended Reconciliation of GAAP to Non-GAAP Measures Q1-21 Q2-21 Q3-21_Q4-21_Q1-22 _Q2-22__Q3-22_—Q4-22_—Q1-23_—Q2-23__Q3-23 2021 2022-2023 898 109.7 121.0 1580 125.3 146.7586 209.7 «145.2 «178.5 185.3 320.5 430.6 508.9 Traffic acquisition costs and media buy (54.
Slide 33: Non-GAAP Reconciliations ($m)
Non-GAAP Reconciliations ($m) 9 Months ended Reconciliation of GAAP to Non-GAAP Results Q1-21 _Q2-21 _Q3-21 4-21 Q1-22_—Q2-22_—_Q3-22_—Q4-22_—Q1-23_—_Q2-23_Q3-23 Stock-based compensation expenses 08 12 17 33 24 27 3.2 3.2 34 3.1 44 37 84 10.9 Retention and other acquisition-related expenses 18 22 16