The share price of Perion Network (TASE: PERI; Nasdaq: PERI) rose more than 7% on the Tel Aviv Stock Exchange today after the release of preliminary third quarter results this morning which improved expectations of the market. The stock opened lower, but the trend changed after the release of preliminary results.
Perion Network, which is in the business of digital advertising and internet search, expects third-quarter revenue of $158 million, up 31% from the corresponding quarter of 2021. According to figures released this morning, adjusted EBITDA will increase 76% to $31 million. , and 46% of revenue excluding traffic acquisition costs, versus 37% in the corresponding quarter. The better-than-expected results actually come against a backdrop of weakness in the digital advertising market and the results of other companies in this space.
RELATED ARTICLES
Perion Network’s previously released guidance for full 2022 calls for revenue to grow to $620-640 million and adjusted EBITDA of over $102 million, a 47% growth over to 2021 and 41% of sales excluding traffic acquisition costs. Preliminary third quarter results indicate that the company’s revenue in the first three quarters totaled $430 million and EBITDA of $82.1 million, so to meet its guidance it will need to report revenue of 200 million dollars and an EBITDA of only 20 million dollars in the last quarter.
The fourth quarter is generally strong for Perion Network, with events such as Christmas and “Black Friday” falling during the quarter, and given that this year there will also be other advertising-intensive events such as Midterm elections in the US, it looks like the company will have no trouble meeting its revenue guidance, and even exceeding its EBITDA guidance.
“The true test of a strategy is what happens when the going gets tough. Perion’s diversification strategy has demonstrated the level of predictability and continued sustainability of our business, resulting in strong revenue and EBITDA growth “said Doron Gerstel, CEO of Perion Network, commenting on the preliminary results.
“Our innovative technology is enabling us to gain market share as advertisers and publishers seek a higher return on investment during these challenging times. Our SORT technology – which is based on multi-award-winning AI that leverages the powerful consumer privacy trend, is gaining tremendous momentum and attracting world-class advertisers like Mercedes,” added Gerstel.
Perion Network, which has a market capitalization of $884 million after a 15% decline in its share price in 2022 to date, is due to release its full third-quarter financials on Nov. 9.
Published by Globes, Israel business news – en.globes.co.il – October 6, 2022.
© Copyright Globes Publisher Itonut (1983) Ltd., 2022.