Slide 1: Investor Presentation Q3 2024
Investor Presentation Q3 2024 November 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, Elad Tzubery CFO
Tal Jacobson Elad Tzubery CEO CFO 3
Slide 4: What we do
What Perion builds technologies that make digital advertising more effective by we do connecting the dots between data, creative and channels Most of our clients are Agencies, Brands and Retailers 4
Slide 5: Over a Decade of Delivering Positive Annual Adjusted EBITDA
Over a Decade of Delivering Positive Annual Adjusted EBITDA & Operating Cash Flow 5
Slide 6: Perion is a proven global technology leader
Perion is a proven global technology leader Powering Advertising Across the Path to Purchase 34+ markets Across Perion High Impact Video Retail Media Display PERI Audio Social CTV DOOH Publicly traded on NASDAQ & TASE Advanced Technology Dynamic Creative Device SORT, AI-powered Optimization Graph au
Slide 7: The ~$700b advertising challenge
1 The ~$700b advertising YouTube Meta Google Outdoor challenge Bing ads Spotify CMOs are navigating a Open Pinterest fragmented universe of Web Advertiser screens, creative formats, and placements trying to connect the dots and drive TikTok business results. Netflix Amazon Apple Reddit Hulu 1 7 Sour
Slide 8: Unlocking a Massive TAM: Maximizing advertising impact
Unlocking a Massive TAM: Maximizing advertising impact Digital Ad Spending ($ Billions USD) Worldwide, 2024-2028 992.8 911.5 832.8 754.2 676.9 Source: eMarketer Forecast, March 2024 8
Slide 9: Enabling Brands to Seize Every Advertising Moment
Enabling Brands to Seize Every Advertising Moment 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 DOOH Ads DOOH Ad
Slide 10: Our Solution: A cross-screen optimization flywheel for advertisers
Our Solution: A cross-screen optimization flywheel for advertisers 10
Slide 11: Leveraging AI: First-to-market solutions for advertisers
Leveraging AI: First-to-market solutions for advertisers AI-powered, cross-media WAVE, Generative AI, audience segmentation dynamic audio for the cookie-less world technology, brands can speak to each listener with tailored content 11
Slide 12: Leveraging AI: First-to-market solutions for advertisers
Leveraging AI: First-to-market solutions for advertisers Chat AI Ads - Custom AI-Chat Chatbot, boosting consumer engagement with in-ad conversations Perion’s Creative Studio DCO, featuring dynamic creative optimization solutions for brands to hyper-personalize based on audience, location, weather, d
Slide 13: Integrated with Leading Platforms
Integrated with Leading Platforms DSPs DMPs Proprietary SSPs Tech & AI SORT® Ad Ad Dynamic Publisher Audience Builder Server Creative Platform Targeting MEASUREMENT 13
Slide 14: Trusted by the most recognized brands & agencies
Trusted by the most recognized brands & agencies 14
Slide 15: Advanced Tech with Premium Inventory
Advanced Tech with Premium Inventory: Ensuring brands appear in the right context 1 Web CTV/Video DOOH Audio 1 A selection of inventory across Perion’s 435k+ sites and screens 15
Slide 16: Our Main Growth Engines: Continuing momentum in Q3
Our Main Growth Engines: Continuing momentum in Q3 63% YoY Revenue Growth 62% YoY Revenue Growth 19% YoY Revenue Growth Digital Out-of-Home1 Retail Media CTV 1 On a proforma basis 16
Slide 17: Our DOOH Success
Our DOOH Success DOOH by Perion Digital Out-of-Home Ad Spending 63% Growth 1 US, 2024-2028 ($ Billions USD) 4.6 4.3 4.0 3.6 3.2 Source: eMarketer data – 9.5% CAGR 1 17 On a proforma basis
Slide 18: Our Retail Media Success
Our Retail Media Success Retail Media by Perion Omnichannel Retail Media Ad Spending 62% Y/Y Growth US, 2024-2028 ($ Billions USD) 129.9 104.5 84.1 67.8 54.9 Source: eMarketer data – 24% CAGR 18
Slide 19: Our CTV Success
Our CTV Success CTV by Perion CTV Ad Spending 19% Y/Y Growth US, 2024-2028 ($ Billions USD) 44.3 40.5 36.5 32.6 28.8 Source: eMarketer data – 11.4% CAGR 19
Slide 20: Why Invest in Perion?
Why Invest in Perion? Large Growth Profitability & Tech-Oriented Opportunity Cash Generation1 Strong tech moat Strong focus on Over a decade of with proven AI high-growth digital ad delivering positive capabilities and channels and market annual Adjusted in-house innovative verticals: CTV, DOOH EBIT
Slide 21: Financial Results & Outlook
Financial Results & Outlook 21
Slide 22: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Revenue Adjusted GAAP Net Non-GAAP Net Net Cash2 EBITDA1 Income Income1 $102.2M $7.4M $2.1M $11.9M $383.9M 7% Margin Diluted GAAP EPS: Diluted Non-GAAP 16% ex-TAC Margin $0.04 EPS: $0.23 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliatio
Slide 23: Q3 2024 Revenue
2904 seeeett Qu'22 Q2'22 Q3'22 a4'22 Q1'23 Q2'23 Q3'23 Q4'23 qu'24 Q2'24 Q3'24
Slide 24: Q3 2024 Advertising Solutions
Q3 2024 Advertising Solutions1 CTV increased 19% YoY 12% of Advertising Solutions1 Revenue revenue vs. 8% last year DOOH2 increased 63% YoY ($M) 23% of Advertising Solutions1 revenue vs. 11% last year Video decreased 63% YoY 14% of Advertising Solutions1 revenue vs. 32% last year 1 Formerly referred
Slide 25: Q3 2024 Search Advertising
Q3 2024 Search Advertising 6.9 million Average Daily Searches Revenue 78% YoY decrease ($M) 47 Publishers 71% YoY decrease 25
Slide 26: Q3 2024 Contribution Ex-TAC
Q3 2024 Contribution Ex-TAC1 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 26
Slide 27: Q3 2024 Adjusted EBITDA
Adjusted EBITDA/Revenue Adjusted EBITDA/Contribution ex-TAC Q3 2024 Adjusted EBITDA1 23% 55% ($M) 21% 51% 7% 16% 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 27
Slide 28: Q3 2024 GAAP/Non-GAAP Net Income
GAAP Net Income Non-GAAP Net Income Q3 2024 GAAP/ Non-GAAP1 Net Income ($M) 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 28
Slide 29: Q3 2024 Cash from Operations & Adjusted FCF
Q3 2024 Cash from Operations Adjusted Free Cash Flow1 Cash from Operations & Adjusted FCF ($M) 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 29
Slide 30: Q3 2024 Net Cash
Q3 2024 Net Cash1 ($M) 1 Includes cash, cash equivalents, short term deposits and marketable securities 30
Slide 31: Financial Outlook
Financial Outlook FY 2024 Outlook US$ 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 32: Thank you
Thank you 32
Slide 33: Appendix
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Slide 34: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets 34
Slide 35: Consolidated Statements Of Operations - GAAP
Consolidated Statements Of Operations - GAAP 35
Slide 36: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows 36
Slide 37: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results 37
Slide 38: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results 38