Slide 1: Investor Presentation Q1 2024
Investor Presentation Q1 2024 May 8, 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: Presenters
Tal Jacobson Maoz Sigron Andreas Soupliotis Kenny Lau CEO CFO GM, Out of Home, CPO, Advertiser Hivestack Solutions, Undertone 3
Slide 4: Acknowledging Challenges. Accelerating Growth.
Acknowledging Challenges. Accelerating Growth. 4
Slide 5: The Perion Universe
The Perion Universe CTV Demand Technology Audio Demand DCO driven Demand Technology Web Full Stack Generation Technology DOOH Full Stack Technology Advertiser (Brands / Retailers) Social Demand Technology Audience Segmentation Technology Search Supply Technology 5
Slide 6: Perion brands: Undertone, Vidazoo, Hivestack, Codefuel
© UNDERTONE 23 VIDAZOO °> HIVESTACK &> CODEFUEL by PERION by PERION by PERION by PERION er 20 6
Slide 7: Perion Along the Consumer Journey
Perion Along the Consumer Journey Social Podcast Roadside Desktop/ Desktop/ Desktop Parking In-store TV Billboard Mobile Mobile Lot Sign Dynamic Wave AI XL Dynamic Direct response In-article High Impact Retail focused Interactive High Impact Video Ad Audio Ads DOOH Video Ad Search Ad Video ad Ad DOO
Slide 8: Our Fastest Growing Growth Engines
Our Fastest Growing Growth Engines 134% 108% 25%1 Retail Media CTV Digital Out-of-Home YoY Growth YoY Growth YoY Growth 1 On a proforma basis 8
Slide 9: Growth Engine: Retail Media Solutions
Growth Engine: Retail Media Solutions 134% Growth YoY ($M) 93% 134% CAGR YoY Q1’22-24 Growth 14.9 3.3 DOOH CTV, Display, Video and other 9
Slide 10: Growth Engine: CTV Advertising
Growth Engine: CTV Advertising 108% Growth YoY ($M) 49% 108% CAGR YoY Q1’22-24 Growth 10
Slide 11: Growth Engine: DOOH
Growth Engine: DOOH 25%1 YoY Growth ($M) 25%1 YoY Growth 1 On a proforma basis 11
Slide 12: Andreas Soupliotis, GM, Out of Home, Hivestack
Founder and GM of Hivestack, the leading global full stack DOOH advertising technology Manages Global operations across 32+ markets in EMEA, APAC and the Americas Over 25 years of experience spanning across the software and ad tech industry Andreas Soupliotis GM, Out of Home, Hivestack 12
Slide 13: Lululemon DOOH
Lululemon DOOH Driving brand awareness and increasing in-store traffic with Custom Audience targeting and location targeting 640% 208% Lululemon Increase in brand image DOOH Increase in interest 314% 4,296 Increase in Increase in footfall traffic incremental walk-ins Driving brand awareness and incr
Slide 14: Kenny Lau, CPO, Advertiser Solutions, Undertone
Kenny has over 15 years of experience in the programmatic advertising space Previous industry experiences at companies including PubMatic, Criteo, AdTheorent and Nielsen. Rich experience in multiple domains of AdTech and large-scale platform development Kenny Lau CPO, Advertiser Solutions, Undertone
Slide 15: SORT 2.0 Now for CTV
SORT® 2.0 Now for CTV AI-based audience segmentation for a cookieless future Privacy-safe targeting to find the audiences most interested in your brand at that moment, across all browsers & devices. SORT® analyzes all of the non-PII signals present when someone lands in our network – and immediately
Slide 16: WAVE Generative AI driven Audio Ads
WAVE Generative AI driven Audio Ads Now support Spanish Generative AI dynamic audio technology that adapts in real-time to deliver personalized messages to listeners across all digital audio streaming services, including music, podcasts, terrestrial radio & more. New verticals: Retail, CPG, QSR, & T
Slide 17: Recent Certifications & Awards
Recent Certifications & Awards Embracing Quality, Sustainability and Excellence 17
Slide 18: Financial Results & Outlook
Financial Results & Outlook 18
Slide 19: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Revenue Adjusted GAAP Net Cash Flow from Net Cash2 EBITDA1 Income Operations $157.8M $20.3M $11.8M $6.9M $479.7M 9% YoY Growth 35% YoY Decline 51% YoY Decline 61% YoY Decline 1% QoQ Growth 13% Margin 34% ex-TAC Margin 1 Non-GAAP metrics. Please see the Appendix to this p
Slide 20: Q1 2024 Revenue
9% Q1 2024 YoY Growth Revenue ($M) 20
Slide 21: Q1 2024 Advertising Solutions
Q1 2024 5% Advertising YoY Decline Solutions1 CTV increased 108% YoY Revenue 11% of Advertising Solutions revenue vs. 5% last year ($M) DOOH2 increased 25% YoY 13% of Advertising Solutions revenue vs. 9% last year Video decreased 52% YoY 22% of Advertising Solutions revenue vs. 44% last year 1 Forme
Slide 22: Q1 2024 Search Advertising
Q1 2024 26% YoY Search Growth Advertising 31.6 million Average Daily Searches Revenue 20% increase YoY ($M) 168 Publishers 8% increase YoY 22
Slide 23: Q1 2024 Contribution Ex-TAC
Q1 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. 23
Slide 24: Q1 2024 Adjusted EBITDA
Adjusted EBITDA/Revenue Adjusted EBITDA/Contribution ex-TAC Q1 2024 35% YoY Adjusted Decline EBITDA1 ($M) 22% 48% 18% 42% 13% 34% 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 24
Slide 25: Q1 2024 GAAP/Non-GAAP Net Income
Q1 2024 GAAP Net Income Non-GAAP Net Income GAAP/ Non-GAAP1 Net Income ($M) 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. 25
Slide 26: Q1 2024 Cash from Operations
Q1 2024 Cash from Operations ($M) 26
Slide 27: Q1 2024 Net Cash
Q1 2024 Net Cash1 ($M) 1 Includes cash, cash equivalents, short term deposits and marketable securities 27
Slide 28: Financial Outlook
Financial Outlook Q2 2024 Outlook FY 2024 Outlook Q2 2024 FY 2024 US$ M Q2 2023 US$ M FY 2023 Guidance Guidance Revenue 178.5 118-122 Revenue 743.2 590-610 Adjusted EBITDA1 41.2 10-12 Adjusted EBITDA1 169.1 78-82 Adjusted EBITDA/Revenue1 23% 9%2 Adjusted EBITDA/Revenue1 23% 13%2 Adjusted EBITDA/ Adj
Slide 29: Thank you
Thank you 29
Slide 30: Appendix
poe 0099992905 Lit eet sseeecaneton ST a 30
Slide 31: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets 31
Slide 32: Consolidated Statements Of Operations - GAAP
Consolidated Statements Of Operations - GAAP 32
Slide 33: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows 33
Slide 34: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results 34
Slide 35: Reconciliation of GAAP to Non-GAAP Results
Reconciliation of GAAP to Non-GAAP Results 35