Slide 1: Q2 2023 Investor Presentation
Q2 2023 Investor Presentation | August 2 , 2023 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 and Maoz Sigron, CFO
Tal Jacobson Maoz Sigron CEO CFO 3
Slide 4: Outperforming the Market: Our Diversification Model at Scale
Outperforming the Market Our Diversification Model at Scale Digital Video CTV Retail Search Advertising Media Advertising H1-23 19% 20% 54%1 62% 19% Q2-23 22% 14% 104%1 63% 21% 7.8% 11.2% 21.2% 19.7% 8.3% 9.5% 7.0% 16.2% 10.1% 9.8% Source for US and Global data: eMarketer, March 2023, Expected 2023
Slide 5: Q2 2023 Revenue ($M)
Q2 2023 Revenue ($M) 27% Perion Q2-23 YoY 22% YoY Revenue Growth Consistent ability to Contribution Ex-TAC1 Growth outperform the market2 178.5 VS. 146.7 8% Peers Group 2023 YoY 109.7 Contribution Ex-TAC2 Growth Q2-21 Q2-22 Q2-23 1 Contribution Ex-TAC (Revenue Excluding TAC) is a Non-GAAP metric. Pl
Slide 6: Q2 2023 Adjusted EBITDA ($M)
Q2 2023 Adjusted EBITDA ($M) 54% Perion Q2-23 45% YoY Adjusted EBITDA Growth Adjusted EBITDA to Contribution Ex-TAC 41.2 Continued focus on profitability and margin VS. 23% expansion driven by efficiency and innovation Adjusted 28.5 EBITDA to Revenue 22% Peer Group 2023 14.3 Adjusted EBITDA Margin1
Slide 7: Perion's Growing Retail Media
Perion’s Retail Media Ad Spending Growing US, 2023-2027 Retail Media Solution 63% Q2-23 Revenue increase YoY $106.12 $84.97 VS. $68.14 Our Personalized $55.31 Digital Circular $45.15 drives strong 24.9% 19.7% 24.7% incremental sales for retailers. 22.5% 23.2% 19.7% Expected US Retail Media Ad spendi
Slide 8: Personalized Dynamic Retail Media Solution
Personalized Dynamic Retail Media Solution iHub tech Data Creative Engine SORT R CTV Online Video Retailer’s 1st Decisioning AI based party Engine Targeting Engine Data & Content to distribute the right product to 3rd party the right person enrichment at the right data Thousands of moment DOOH High
Slide 9: Personalized Dynamic Retail Media Campaign
Personalized Dynamic Retail Media Campaign Online High Impact DOOH CTV Video Display 9
Slide 10: Award Winning Retail Media
Award Winning Retail Media Solutions “...This achievement is a testament to the dedication and creativity of our performance media team and our valued partnership with Perion… this award motivates us even further to continue pushing boundaries and redefining the shopper journey during holiday and be
Slide 11: Financial Results and Outlook
Financial Results and Outlook 11
Slide 12: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Revenue Contribution Ex- Adjusted GAAP Net Non-GAAP TAC (Revenue Ex-TAC)1 EBITDA1 Income Diluted EPS1 $178.5M $77M $41.2M $21.4M $0.84M 22% YoY Growth 27% YoY Growth 45% YoY Growth 10% YoY Growth 65% YoY Growth 43% Margin 23% Margin 12% Margin 1 Non-GAAP metrics. Please
Slide 13: Q2 2023 Revenue
28% Q2 2023 CAGR Q2’21-23 22% Revenue YoY Growth ($M) 178.5 146.7 109.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 13
Slide 14: Q2 2023 Display Advertising
31% 22% Q2 2023 CAGR Q2’21-23 YoY Growth Display Video increased by 14% YoY Advertising 99.4 41% of Display Advertising Revenue ($M) 81.6 revenue vs. 44% last year CTV1 increased by 104% YoY 58.0 7% of Display Advertising revenue vs. 4% last year Retail Media2 revenue increased by 63% 10% of Display
Slide 15: Q2 2023 Search Advertising
28.6 million daily searches 24% An increase of 68% YoY and 9% QoQ Q2 2023 CAGR Q2’21-23 159 publishers Search 21% An increase of 28% YoY YoY Advertising Growth Average Daily Searches Revenue ($M) 79.1 (Monetized) 65.1 51.6 Q2-21 Q2-22 Q2-23 15
Slide 16: Q2 2023 Contribution Ex-TAC (Revenue Ex-TAC)
Q2 2023 Contribution Ex-TAC (Revenue Ex-TAC) 43% 41% 40% Improved Product mix continues to improve Media buying optimization of our supply and demand assets through iHUB Incremental revenue with low variable cost Q2-21 Q2-22 Q2-23 16
Slide 17: Q2 2023 Adjusted EBITDA ($M)
45% YoY 70% Adjusted EBITDA/Contribution Ex-TAC Growth Q2 2023 CAGR Q2’21-23 Adjusted EBITDA/Revenue Adjusted 54% EBITDA1 ($M) 23% 48.2 47% 41.2 19% 33.0 31.3 33% 28.9 28.5 13% 22.7 17.6 14.3 8.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 1 Adjusted EBITDA is a non-GAAP metric. Please see the Appe
Slide 18: Q2 2023 GAAP/Non-GAAP Net Income
Q2 2023 GAAP Net Income Non-GAAP Net Income1 GAAP/ 10% 72% YoY YoY Growth Growth Non-GAAP Net Income ($M) 19.5 21.4 42.1 24.5 7.1 12.3 Q2-21 Q2-22 Q2-23 Q2-21 Q2-22 Q2-23 1 Non-GAAP net income is a non-GAAP metric. Please see the Appendix to this presentation for a reconciliation to the nearest GAAP
Slide 19: Efficiency Driving Profitability
Efficiency Cost Efficiency FTE Productivity Driving Profitability 2 iHUB as a shared Incremental revenue Offshoring our infrastructure resource with low variable cost operations 1 Non-GAAP Operating Expenses and Cost of Revenue. Please see the Appendix to this presentation for a reconciliation to th
Slide 20: Strong Balance Sheet & Cash Flow to Support Growth Plans
Strong Balance Sheet & Financial Q2-22 Q1-23 Q2-23 Metric ($M) Cash Flow to Support Growth Plans Net cash1 353.0 436.3 483.3 Operating Cash Flow 25.7 17.8 47.4 1 Net cash includes cash and cash equivalents, short-term bank deposits and marketable securities 20
Slide 21: Guidance
Guidance In $ Millions 2022 Prior 2023 Current 2023 YoY Growth1 Guidance Guidance Revenue $640.3 $725-$745 $730-$750 16% Adjusted EBITDA $132.4 $155+ $167+ 26% Adjusted EBITDA to Revenue 21% 21%1 23%1 Adjusted EBITDA to Contribution Ex-TAC 49% 50%1 54%1 1 Calculated at revenue guidance midpoint. Adj
Slide 22: Thank You
Thank You
Slide 23: Appendix
Appendix
Slide 24: Balance Sheet Overview ($M)
Balance Sheet Overview ($M) Numbers may not add due to rounding 24
Slide 25: Income Statement ($M)
Income Statement ($M) 25 Numbers may not add due to rounding
Slide 26: Cash Flow Overview ($M)
Cash Flow Overview ($M) Numbers may not add due to rounding 26
Slide 27: Non-GAAP Reconciliations ($M)
Non-GAAP Reconciliations ($M) Numbers may not add due to rounding 27
Slide 28: Non-GAAP Reconciliations ($M)
Non-GAAP Reconciliations ($M) Numbers may not add due to rounding 28