Slide 1: Q1 2023 Presentation
Q1 2023 Presentation May 03rd , 2023 11
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: Presenters: Maoz Sigron, Doron Gerstel, Tal Jacobson
Maoz Sigron Doron Gerstel Tal Jacobson CFO CEO General Manager CodeFuel 3
Slide 4: Q1 2023 Revenue ($M)
27% 16% CAGR YoY Q1’21-23 GROWTH 145.2 Q1 2023 125.3 Revenue ($M) 89.8 Outpacing global digital ad market growth (9.5%) * Q1-21 Q1-22 Q1-23 4 * Source: eMarketer, March 2023
Slide 5: Q1 2023 Adjusted EBITDA
89% CAGR Q1’21-23 38% YoY GROWTH 31.3 Q1 2023 EBITDA To Revenue 22% Compared to Adjusted EBITDA 22.7 18% In Q1 2022 Continuous growth in profitability, 8.8 EBITDA 48% among the highest To Revenue Ex TAC Compared to in the industry 42% In Q1 2022 Q1-21 Q1-22 Q1-23 5
Slide 6: Rule of 40
EBITDA Margin YoY Revenue Growth 70 60 49% Rule 0f “40” 50 21% (TTM) 40 40% The Rule of 40 states that: 30 company's revenue YoY growth rate, plus its EBITDA 28% margin, should exceed 40% 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 6
Slide 7: Direct Response Search
Growth Driver #1 Number of Average Daily Traffic Publishers Direct 29% 26.3M 49% Response Growth YoY Growth Search Advertising Daily Average Search Traffic “We have a clear point of view that 30,000,000 the future of search is an integrated experience across search, answers, 25,000,000 chat and crea
Slide 8: Perion's Retail Solutions
Growth Driver #2 7X $14:1 89% 46% 60% Lift in ROAS Growth in Increase Increase always-on in brand YoY revenue Perion’s incremental store visits revenue favorability ’ Q1 22’ VS Q1 23’ Retail Solutions • Ads-As-A-Platform Technology with proprietary AI-driven Retail media was clearly one decisioning
Slide 9: Perion's Commerce Consumer Journey
Perion’s Commerce Person alized , D yn am ic & Consumer Dat a-d riven Tou ch p oin t s Journey 10 AM 11:4 5 AM 2:0 5 PM 3:0 0 PM 7:30 PM 9:0 0 PM Search for a easy D rive k id s t o St op t o g et Research fu n W at ch Ch eck W ake Up recip e id eas soccer g am e g as on w ay act ivit ies for favori
Slide 10: SORT
Growth Driver #3 CTR Total New Customer Customers Customers Spending 1.54% 157 48 93% 3x Google 142% YoY YoY Increase Increase SORT ® SORT® is multi-award winning, including a prestigious Stevie “Best use of Audience award for AI Engagement” Nominee 9
Slide 11: Video Platform
Growth Driver #4 Video Video Land Revenue Platform & Expand Publishers Video 26% 63% 71% Platform YoY YoY YoY Growth Growth Growth “Vidazoo’s, ad optimization Full suite of Video Platform services capabilities have significantly contributed to our Outstream Display Video Yield Invalid Traffic Contex
Slide 12: Optimizing Operations Through Our Proprietary iHUB Technology
Growth Driver #5 Operational amount of cross Saving in 2023E channel data Optimizing $6.3M 17B Shared services, Request Operations Unified Data lake a day Through Our Proprietary iHUB Technology Demand Supply Social Social Network Platform iHUB Video O&O High-impact Monetization Network Display & CT
Slide 13: Thank You
Thank You
Slide 14: Financial Results – Q1 23
Financial Results – Q1 23 Maoz Sigron, CFO 14 14
Slide 15: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights Revenue Gross Profit Adjusted GAAP Net Non-GAAP EBITDA Income EPS (Diluted) $145.2M $65.3M $31.3M $23.8M $0.60 16% YoY Growth 20% YoY Growth 38% YoY Growth 54% YoY Growth 36% YoY Growth 45% Margin 22% Margin 15
Slide 16: Q1 2023 Revenue
30% CAGR Q1’20-23 16% YoY GROWTH 145.2 Q1 2023 125.3 Revenue 89.8 ($M) 66.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 16
Slide 17: Q1 2023 Display Advertising
45% 16% YoY CAGR GROWTH Q1’21-23 79.9 Video increased by 26% YoY 68.6 • 63% YoY increase in video platform publishers Q1 2023 • • 44% of total Display Advertising vs. 41% last year 71% YoY increase in revenue from retained video platform publishers Display CTV increased by 12% YoY Advertising 38.1 •
Slide 18: Q1 2023 Search Advertising
12% 15% YoY CAGR GROWTH Q1’21-23 65.3 56.7 Q1 2023 51.7 Highest revenue since 2015 Search Number of publishers increased by 29% YoY Advertising 26.3 million daily searches Revenues ($M) - an increase of 49% YoY Q1-21 Q1-22 Q1-23 18
Slide 19: Business Diversification Is Key
Business Diversification Is Key 42% 55% 55% 58% Q1-21 45% Q1-22 45% Q1-23 19 Display Advertising revenue Search Advertising revenue
Slide 20: Continued Improvement in Media Margin
Continued Improvement in Media Margin Media Margin Media Margin Media Margin 39% 43% 45% Product mix optimization continues to improve Media buying optimization Q1-21 Q1-22 Q1-23 of our supply and demand assets through iHUB Incremental revenue TAC TAC TAC with low variable cost 61% 57% 55% Continued
Slide 21: Efficiency Driving Profitability
Cost Efficiency 32% 28% 26% $145.2M $125.3M $89.8M iHUB as a shared infrastructure resource Efficiency Q1-21 Q1-22 Q1-23 Driving Revenue % OPEX+COGS Incremental revenue with low variable cost Profitability FTE Productivity $62K Offshoring $45K our operations $31.3M $22.7M $18K $8.8M Q1-21 Q1-22 Q1-2
Slide 22: Q1 2023 Adjusted EBITDA
71% Q1’20-23 20-22 38% Q1 YoY CAGR GROWTH Q1’20-23 EBITDA/Revenue Ex TAC % Q1 2023 48% Adjusted EBITDA 31.3 42% 22% ($M) 22.7 18% 25% 21% 8.8 6.2 10% 9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 22
Slide 23: Q1 2023 GAAP Net Income
54% YoY GROWTH GAAP GAAP Net income ($M) 23.8 Diluted EPS ($) 45% YoY GROWTH 0.48 Q1 2023 15.5 GAAP 0.33 Net Income 3.3 0.09 Q1-21 Q1-22 Q1-23 Q1-21 Q1-22 Q1-23 23
Slide 24: Q1 2023 Non-GAAP Net Income
44% YoY GROWTH Non- GAAP Non- GAAP Net income ($M) 29.9 Diluted EPS ($) 36% YoY GROWTH 20.7 0.60 Q1 2023 Non-GAAP 0.44 Net Income 7.0 0.19 Q1-21 Q1-22 Q1-23 Q1-21 Q1-22 Q1-23 24
Slide 25: Q1 2023 Cash from Operations
Q1’21-23 Q1’21-23 23.6 25%YoY Q1 2023 17.8 Cash from 13.5 Operations ($M) Q1-21 Q1-22 Q1-23 25
Slide 26: Net Cash as of March 31, 2023 ($M)
430 436 390 353 342 322 Net Cash(1) as of March 31, 2023 ($M) 128 141 156 52 40 35 37 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 26 1 Including cash, cash equivalents, short-term bank deposits and $52 million in short-term marketable securities
Slide 27: 2023 Guidance
Revenue $M 2023 Adj. EBITDA $M Guidance 725-745 “Given our current 720-740 15% YoY visibility, and the Growth 1 sustainability and predictability of our business model, we feel 17% 8 confident in raising YoY 155+ Growth1 annual guidance for the 149-153 full year 2023.” 2023E 2023E Previous Improved
Slide 28: Thank You
Thank You
Slide 29: Appendix
APPENDIX 29
Slide 30: Balance Sheet Overview ($M)
Balance Sheet Overview ($M) Current Assets 31/12/2022 31/03/2023 Current Liabilities 31/12/2022 31/03/2023 Cash and cash equivalents 176.2 133.4 Accounts payable 155.9 131.1 Restricted cash 1.3 1.3 Accrued expenses and other liabilities 37.8 22.8 Short-term bank deposit 253.4 251.3 Short-term operat
Slide 31: Income Statement ($M)
Income Statement ($M) Full year ended, 3 Months ended, P&L - GAAP Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 2020 2021 2022 2022 2023 Display Advertising revenue 23.8 18.7 37.9 68.4 38.1 58.0 69.0 100.2 68.6 81.6 86.8 123.8 79.9 148.7 265.3 360.7 68.6 79.9 Search A
Slide 32: Non-GAAP P&L ($M)
Non-GAAP P&L ($M) Full year ended, 3 Months ended, P&L - Non-GAAP Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 2020 2021 2022 2023 2022 2023 Display Advertising revenue 23.7 18.7 37.9 68.4 38.1 58.0 69.0 100.2 68.6 81.6 86.8 123.8 79.9 148.7 265.3 360.7 79.9 68.6 79.
Slide 33: Non-GAAP Adjustments ($M)
Non-GAAP Adjustments ($M) Full year ended, 3 Months ended, Reconciliation of GAAP to NON-GAAP Results Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 2020 2021 2022 2022 2023 GAAP Net Income (Loss) from continuing operations 1.3 (2.2) 2.1 9.0 3.3 7.1 10.6 17.7 15.5 19.5
Slide 34: Cash Flow Overview ($M)
Cash Flow Overview ($M) Full year ended, 3 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 Q3-22 Q4-22 Q1-23 2017 2018 2019 2020 2021 2022 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 25.6 38.7 23.8 (72.8) 8.1 12.
Slide 35: Thank You
Thank You