Management increases guidance for 2022
● |
Display Advertising revenue grew 80% (or 52% on pro forma basis), driven by accelerating adoption of Perion's video and CTV solutions, leading to an increase of average client spend by 42% and a 3% increase in number of clients;
|
● |
Video and CTV revenue grew by 341% year-over-year, (or 123% on a proforma basis), representing 46% of Display advertising revenue;
|
● |
Search advertising revenue grew 10%, primarily driven by an increased number of commercial searches, as well as in the percentage of transactional searches;
|
● |
Adjusted EBITDA margin expanded to 42% of revenue excluding traffic acquisitions costs compared to 25% during the first quarter of 2021, as a result of continuous improvement of iHub;
|
● |
Net cash provided by operating activities of $23.6 million; Perion had $342.5 million in cash and zero debt as of March 31, 2022.
|
Three months ended
| ||||||||||||
March 31,
| ||||||||||||
2022
|
2021
|
%
| ||||||||||
Display Advertising revenue
|
$
|
68.6
|
$
|
38.1
|
+80
|
%
| ||||||
Search Advertising revenue
|
$
|
56.7
|
$
|
51.7
|
+10
|
%
| ||||||
Total Revenue
|
$
|
125.3
|
$
|
89.8
|
+40
|
%
| ||||||
GAAP Net Income
|
$
|
15.5
|
$
|
3.3
|
+368
|
%
| ||||||
Non-GAAP Net Income
|
$
|
20.7
|
$
|
7.0
|
+196
|
%
| ||||||
Adjusted EBITDA
|
$
|
22.7
|
$
|
8.8
|
+158
|
%
| ||||||
Adjusted EBITDA/Revenue Ex TAC
|
42%
|
25%
|
+66
|
%
| ||||||||
Net cash provided by operating activities
|
$
|
23.6
|
$
|
13.5
|
+75
|
%
| ||||||
GAAP Diluted Earnings Per Share
|
$
|
0.33
|
$
|
0.09
|
+267
|
%
| ||||||
Non-GAAP Diluted Earnings Per Share
|
$
|
0.44
|
$
|
0.19
|
+132
|
%
|
($M)
|
2021
|
Previous 2022 Guidance
|
Guidance 2022 *
|
YoY Growth % *
|
Revenue
|
$478.5
|
$610-$630
|
$620-$640
|
32%
|
Adjusted EBITDA
|
$69.6
|
$88-$92
|
$98-$102
|
44%
|
EBITDA to REV Ex-TAC
|
37%
|
36%
|
40%
|
Three months ended
| ||||||||
March 31,
| ||||||||
2022
|
2021
| |||||||
(Unaudited)
|
(Unaudited)
| |||||||
Revenue:
| ||||||||
Display Advertising
|
$
|
68,603
|
$
|
38,137
| ||||
Search Advertising
|
56,712
|
51,680
| ||||||
Total Revenue
|
125,315
|
89,817
| ||||||
Costs and Expenses:
| ||||||||
Cost of revenue
|
6,613
|
5,436
| ||||||
Traffic acquisition costs and media buy
|
70,974
|
54,860
| ||||||
Research and development
|
9,033
|
8,545
| ||||||
Selling and marketing
|
13,338
|
10,605
| ||||||
General and administrative
|
5,666
|
4,131
| ||||||
Depreciation and amortization
|
3,185
|
2,377
| ||||||
Total Costs and Expenses
|
108,809
|
85,954
| ||||||
Income from Operations
|
16,506
|
3,863
| ||||||
Financial income, net
|
604
|
193
| ||||||
Income before Taxes on income
|
17,110
|
4,056
| ||||||
Taxes on income
|
1,644
|
750
| ||||||
Net Income
|
$
|
15,466
|
$
|
3,306
| ||||
Net Earnings per Share
| ||||||||
Basic
|
$
|
0.35
|
$
|
0.10
| ||||
Diluted
|
$
|
0.33
|
$
|
0.09
| ||||
Weighted average number of shares
| ||||||||
Basic
|
44,035,576
|
32,147,176
| ||||||
Diluted
|
47,030,727
|
35,820,634
|
March 31,
|
December 31,
| |||||||
2022
|
2021
| |||||||
(Unaudited)
|
(Audited)
| |||||||
ASSETS
| ||||||||
Current Assets:
| ||||||||
Cash and cash equivalents
|
$
|
92,892
|
$
|
104,446
| ||||
Restricted cash
|
1,063
|
1,089
| ||||||
Short-term bank deposits
|
249,600
|
217,200
| ||||||
Accounts receivable, net
|
84,542
|
115,361
| ||||||
Prepaid expenses and other current assets
|
8,553
|
8,075
| ||||||
Total Current Assets
|
436,650
|
446,171
| ||||||
Long-Term Assets:
| ||||||||
Property and equipment, net
|
4,034
|
4,211
| ||||||
Operating lease right-of-use assets
|
10,776
|
11,578
| ||||||
Goodwill and intangible assets, net
|
243,177
|
245,965
| ||||||
Deferred taxes
|
5,413
|
5,228
| ||||||
Other assets
|
110
|
79
| ||||||
Total Long-Term Assets
|
263,510
|
267,061
| ||||||
Total Assets
|
$
|
700,160
|
$
|
713,232
| ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
| ||||||||
Current Liabilities:
| ||||||||
Accounts payable
|
$
|
94,056
|
$
|
107,730
| ||||
Accrued expenses and other liabilities
|
27,081
|
40,331
| ||||||
Short-term operating lease liability
|
3,504
|
3,615
| ||||||
Deferred revenue
|
3,199
|
3,852
| ||||||
Short-term payment obligation related to acquisitions
|
34,651
|
38,179
| ||||||
Total Current Liabilities
|
162,491
|
193,707
| ||||||
Long-Term Liabilities:
| ||||||||
Payment obligation related to acquisition
|
33,377
|
33,250
| ||||||
Long-term operating lease liability
|
8,835
|
9,774
| ||||||
Other long-term liabilities
|
9,647
|
9,541
| ||||||
Total Long-Term Liabilities
|
51,859
|
52,565
| ||||||
Total Liabilities
|
214,350
|
246,272
| ||||||
Shareholders' equity:
| ||||||||
Ordinary shares
|
378
|
375
| ||||||
Additional paid-in capital
|
499,527
|
496,154
| ||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
| ||||
Accumulated other comprehensive gain
|
(120
|
)
|
(128
|
)
| ||||
Accumulated deficit
|
(12,973
|
)
|
(28,439
|
)
| ||||
Total Shareholders' Equity
|
485,810
|
466,960
| ||||||
Total Liabilities and Shareholders' Equity
|
$
|
700,160
|
$
|
713,232
|
Three months ended
| ||||||||
March 31,
| ||||||||
2022
|
2021
| |||||||
(Unaudited)
|
(Unaudited)
| |||||||
Cash flows from operating activities: | ||||||||
Net Income
|
$
|
15,466
|
$
|
3,306
| ||||
Adjustments required to reconcile net income to net cash provided by operating activities:
| ||||||||
Depreciation and amortization
|
3,185
|
2,377
| ||||||
Stock-based compensation expense
|
2,428
|
755
| ||||||
Foreign currency translation
|
(46
|
)
|
(120
|
)
| ||||
Accrued interest, net
|
(542
|
)
|
(75
|
)
| ||||
Deferred taxes, net
|
(204
|
)
|
236
| |||||
Accrued severance pay, net
|
94
|
109
| ||||||
Net changes in operating assets and liabilities
|
3,173
|
6,883
| ||||||
Net cash provided by operating activities
|
$
|
23,554
|
$
|
13,471
| ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment, net of sales
|
(252
|
)
|
(144
|
)
| ||||
Short-term deposits, net
|
(32,400
|
)
|
(43,300
|
)
| ||||
Cash paid in connection with acquisitions, net of cash acquired
|
(3,400
|
)
|
-
| |||||
Net cash used in investing activities
|
$
|
(36,052
|
)
|
$
|
(43,444
|
)
| ||
Cash flows from financing activities: | ||||||||
Issuance of shares in private placement, net
|
-
|
60,960
| ||||||
Proceeds from exercise of stock-based compensation
|
948
|
1,701
| ||||||
Repayment of long-term loans
|
-
|
(8,333
|
)
| |||||
Net cash provided by financing activities
|
$
|
948
|
$
|
54,328
| ||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
(30
|
)
|
(12
|
)
| ||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
(11,580
|
)
|
24,343
| |||||
Cash and cash equivalents and restricted cash at beginning of period
|
105,535
|
48,878
| ||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
93,955
|
$
|
73,221
|
Three months ended
| ||||||||
March 31,
| ||||||||
2022
|
2021
| |||||||
(Unaudited)
| ||||||||
GAAP Net Income
|
$
|
15,466
|
$
|
3,306
| ||||
Stock-based compensation
|
2,428
|
755
| ||||||
Amortization of acquired intangible assets
|
2,789
|
1,342
| ||||||
Retention and other related to M&A related expenses
|
551
|
1,788
| ||||||
Foreign exchange gains associated with ASC-842
|
(197
|
)
|
(318
|
)
| ||||
Revaluation of acquisition related contingent consideration
|
132
|
169
| ||||||
Taxes on the above items
|
(441
|
)
|
(51
|
)
| ||||
Non-GAAP Net Income
|
$
|
20,728
|
$
|
6,991
| ||||
Non-GAAP Net Income
|
$
|
20,728
|
$
|
6,991
| ||||
Taxes on income
|
2,085
|
801
| ||||||
Financial income, net
|
(539
|
)
|
(44
|
)
| ||||
Depreciation
|
396
|
1,035
| ||||||
Adjusted EBITDA
|
$
|
22,670
|
$
|
8,783
| ||||
Non-GAAP diluted earnings per share
|
$
|
0.44
|
$
|
0.19
| ||||
Shares used in computing non-GAAP diluted earnings per share
|
47,620,874
|
36,122,783
|
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Perion Network Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 11:19:26 UTC.