Slide 1: Investor Presentation Q2 2024
Investor Presentation Q2 2024 July 31, 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,” “
Slide 3: Tal Jacobson CEO, Maoz Sigron CFO
Tal Jacobson Maoz Sigron CEO CFO 3
Slide 4: Tackling a $700B (and growing) challenge
Tackling a $700B* (and growing) challenge YouTube Google Meta Outdoor ads Bing Spotify Open Web Advertiser Pinterest (Brands / Retailers) Tiktok Netflix Amazon Apple Reddit Hulu 4 * https://www.emarketer.com/content/worldwide-digital-ad-spending-forecast-2024#page-report
Slide 5: Perion's Technology connecting the dots Across Consumer Touchpoints
Perion’s Technology connecting the dots Across Consumer Touchpoints Social Podcast On the road Desktop Mobile Desktop Parking In-store TV Dynamic Video Wave AI Audio XL Dynamic Direct response In-article Retail focused Interactive High Impact Ad High Impact Ad Ad Ads DOOH Video Ad Search Ad Video ad
Slide 6: Our main Growth Engines Continuing Momentum
Our main Growth Engines Continuing Momentum Retail Media CTV Digital Out-of-Home 75% 42% 41% 1 YoY Growth YoY Growth YoY Growth 1 On a proforma basis 6
Slide 7: Omnichannel Advertising for Brands
Omnichannel Advertising for Brands Colorado Tourism on CTV, Audio, and Mobile 7
Slide 8: CTV solutions for Brands
CTV solutions for Brands Location based to boost store traffic 70% 42% CAGR YoY Q2’22-24 Growth 8
Slide 9: Retail Media Solutions that Drive Conversions
Retail Media Solutions that Drive Conversions 69% 75% CAGR YoY Q2’22-24 Growth Shoppable Ads 9
Slide 10: Perion's technology powers campaigns on YouTube CTV
Perion’s technology powers campaigns on YouTube CTV 2nd Largest CTV Ad Platform in the US Offering brands wider reach and higher engagement Adding premium inventory Connected TV Ad Revenues, by Company, US, 2024, $B * *Source: https://forecasts-na1.emarketer.com/584b26021403070290f93a3a/5f8f546b4af8
Slide 11: DOOH - Leveraging Technology to drive In-store traffic
DOOH - Leveraging Technology to drive In-store traffic 41%1 YoY Growth 41%1 YoY Growth 62% Lift in-store visitations X4.18 In footfall traffic in key locations 1 On a proforma basis 11
Slide 12: AI-based Dynamic Creative Optimization
AI-based Dynamic Creative Optimization Expanding Technology Capabilities to Programmatic DOOH 2 1 3 4 12
Slide 13: Recent Recognition & Awards
Recent Recognition & Awards Promoting Sustainability and Excellence 13
Slide 14: Financial Results & Outlook
Financial Results & Outlook 14
Slide 15: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Revenue Adjusted GAAP Net Non-GAAP Net Net Cash2 EBITDA1 Income Income1 $108.7M $7.7M -$6.2M $13.4M $407.1M 39% YoY 81% YoY Decline 129% YoY Decline 68% YoY Decline 15% QoQ Decline Decline 7% Margin 15% ex-TAC Margin 1 Non-GAAP metrics. Please see the Appendix to this pr
Slide 16: Q2 2024 Revenue
39% YoY Decline Q2 2024 Revenue ($M) 16
Slide 17: Q2 2024 Advertising Solutions
25% Q2 2024 YoY Decline Advertising Solutions1 CTV increased 42% YoY 14% of Advertising Solutions1 revenue Revenue vs. 7% last year DOOH2 increased 41% YoY ($M) 18% of Advertising Solutions1 revenue vs. 9% last year Video decreased 66% YoY 18% of Advertising Solutions1 revenue vs. 41% last year 1 Fo
Slide 18: Q2 2024 Search Advertising
57% Q2 2024 YoY Decline Search Advertising Revenue 16.3 million Average Daily Searches 43% YoY decrease ($M) 95 Publishers 40% YoY decrease 18
Slide 19: Q2 2024 Contribution Ex-TAC
Q2 2024 Contribution Ex-TAC1 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 19
Slide 20: Q2 2024 Adjusted EBITDA
Adjusted EBITDA/Revenue Adjusted EBITDA/Contribution ex-TAC 81% Q2 2024 YoY Decline Adjusted EBITDA1 23% 54% ($M) 19% 47% 7% 15% 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 20
Slide 21: Q2 2024 GAAP/Non-GAAP Net Income
GAAP Net Income Non-GAAP Net Income Q2 2024 GAAP/ Non-GAAP1 Net Income ($M) 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 21
Slide 22: Q2 2024 Cash from Operations & Adjusted FCF
Q2 2024 Cash from Operations Adjusted Free Cash Flow Cash from Operations & Adjusted FCF ($M) 22
Slide 23: Q2 2024 Net Cash
Q2 2024 Net Cash1 ($M) 1 Includes cash, cash equivalents, short term deposits and marketable securities 23
Slide 24: Financial Outlook
Financial Outlook FY 2024 Outlook US$ M FY 2024 Guidance Revenue 490-510 Adjusted EBITDA1 48-52 Adjusted EBITDA/Revenue1 10%2 Adjusted EBITDA/ Contribution ex-TAC1 23%2 1 Contribution ex-TAC and Adjusted EBITDA are non-GAAP measures. See reconciliation of GAAP to non-GAAP measures at the appendix to
Slide 25: Thank you
Thank you 25
Slide 26: Appendix
manceeeases seeaateeeeseso= 26
Slide 27: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets 27
Slide 28: Consolidated Statements Of Operations - GAAP
Consolidated Statements Of Operations - GAAP 28
Slide 29: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows 29
Slide 30: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results 30
Slide 31: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results 31