Revenue Performance - Fourth quarter revenue decreased by 45% to $129.6 million from $234.2 million year-over-year, with Advertising Solutions revenue down 13%[12] - Digital Out of Home (DOOH) revenue grew 57% year-over-year to $27.9 million in Q4 2024, contributing 22% of total revenue[6] - Connected TV (CTV) revenue increased by 10% year-over-year to $15.8 million in Q4 2024, representing 12% of total revenue[6] - Total revenue for Q4 2024 was $129.577 million, a decrease of 44.6% compared to $234.230 million in Q4 2023[32] - Advertising solutions revenue decreased to $104.101 million in Q4 2024 from $119.795 million in Q4 2023, a decline of 12.5%[32] - Search advertising revenue dropped significantly to $25.476 million in Q4 2024 from $114.435 million in Q4 2023, a decrease of 77.7%[32] - Revenue for Q4 2024 was $129,577,000, a decrease of 44.6% compared to $234,230,000 in Q4 2023[35] Profitability Metrics - GAAP net income fell by 87% to $4.9 million in Q4 2024 compared to $39.4 million in Q4 2023[13] - Non-GAAP net income was $16.1 million, or 12% of revenue, in Q4 2024, down from $52.9 million, or 23% of revenue, in Q4 2023[14] - Adjusted EBITDA decreased by 71% to $15.5 million, or 12% of revenue, in Q4 2024 compared to $53.9 million, or 23% of revenue, in Q4 2023[15] - GAAP Net Income for the year ended December 31, 2024, was $12,614,000, down 89.3% from $117,413,000 in 2023[36] - Adjusted EBITDA for the year ended December 31, 2024, was $50,851,000, a decline of 70.0% from $169,116,000 in 2023[35] - Free cash flow for Q4 2024 was $2,981,000, significantly lower than $49,936,000 in Q4 2023[37] - Non-GAAP diluted earnings per share for the year ended December 31, 2024, was $1.27, down 61.9% from $3.33 in 2023[36] Cost and Expense Management - Total costs and expenses for Q4 2024 were $125.401 million, down from $194.346 million in Q4 2023, reflecting a reduction of 35.5%[32] - Traffic Acquisition Costs (TAC) decreased to $74.8 million, or 58% of revenue, in Q4 2024, down from 61% in Q4 2023, indicating improved margin[13] - Traffic acquisition costs and media buy for Q4 2024 totaled $74,838,000, a decrease of 47.9% from $143,605,000 in Q4 2023[35] - Stock-based compensation expenses for the year ended December 31, 2024, increased to $24,029,000 from $15,590,000 in 2023, representing a 54.0% increase[36] Cash Flow and Liquidity - Cash and cash equivalents decreased to $156.228 million as of December 31, 2024, compared to $187.609 million at the end of 2023[33] - The company reported a net cash provided by operating activities of $4.340 million for Q4 2024, a significant decrease from $50.216 million in Q4 2023[34] - Net cash provided by operating activities for the year ended December 31, 2024, was $6,939,000, a decrease of 95.5% from $155,463,000 in 2023[37] - Adjusted free cash flow for the year ended December 31, 2024, was $16,602,000, down from $154,679,000 in 2023[37] Shareholder Returns and Guidance - Perion announced a share repurchase program totaling $75 million, with $46.9 million spent as of the end of Q4 2024[9] - The company provided full-year 2025 revenue guidance of $400 to $420 million and adjusted EBITDA guidance of $40 to $42 million[11] Asset and Liability Overview - Total assets decreased to $916.451 million as of December 31, 2024, down from $1,077.266 million at the end of 2023[33] - The company’s total liabilities decreased to $196.695 million as of December 31, 2024, from $359.119 million at the end of 2023[33] - The weighted average number of diluted shares outstanding was 46,325,857 for Q4 2024, compared to 50,600,750 for Q4 2023[32] Strategic Initiatives - The company is focusing on expanding the Perion One platform, which integrates advanced AI technologies for operational efficiency and growth[3]

Revenue Sources and Agreements - In 2024, 23% of the company's revenue was generated from its agreement with Microsoft, while 10% came from another search provider[45]. - The Microsoft Agreement accounted for 35%, 34%, and 23% of the company's revenue in 2022, 2023, and 2024, respectively[44]. - The expiration of the Microsoft Agreement on December 31, 2024, places the company in a tail period, potentially affecting revenue generation[49]. - In 2023 and 2024, the top five publishers accounted for approximately 11% and 15% of the company's revenue, respectively[47]. Advertising Activity and Market Competition - The company experienced a decline in search advertising activity in Q1 2024 due to changes in advertising pricing and mechanisms implemented by Microsoft[44]. - In Q2 2024, the company faced an additional decline in search advertising activity due to Microsoft's exclusion of several publishers from its search distribution marketplace[44]. - The advertising industry is highly competitive, and failure to compete effectively could lead to a decline in revenue[28]. - The company relies heavily on third-party publishers for its search offerings, making it vulnerable to changes in their policies and the competitive landscape[48]. - The discretionary nature of relationships with advertising customers exposes the company to increased pricing pressure and potential revenue loss[60]. - The competitive landscape in the advertising industry is intense, with the need for continuous innovation to maintain market share[80]. Data Collection and Processing - The company depends on its ability to collect and process data, and any limitations could significantly diminish the value of its solutions[33]. - The ability to collect and process data, including personal data, is crucial for the company's advertising solutions, and any limitations could significantly diminish its value and lead to loss of customers and revenue[86]. - The company relies on third-party search engine results, primarily from Microsoft Bing and Yahoo, exposing it to competition from emerging AI technologies like OpenAI's ChatGPT and Google's Gemini[92]. Economic and Political Risks - Political and economic instability in the Middle East, particularly in Israel, may adversely affect the company's operations and revenue[33]. - The ongoing military conflict between Russia and Ukraine has contributed to global economic volatility, impacting the company's business environment[108]. - The ongoing military conflict in Israel has led to a deterioration in economic indicators, including a downgrade in Israel's credit rating by agencies such as Moody's, S&P Global, and Fitch[216]. - The company faces risks from political, economic, and military instability in the Middle East, which could adversely affect operations and revenue generation[211]. Regulatory and Compliance Challenges - The company is subject to ongoing costs associated with compliance with corporate governance and disclosure requirements, which could adversely affect financial results[136]. - The evolving legal and regulatory landscape surrounding AI, including new laws in the U.S. and EU, may impose additional compliance costs and affect the company's operations[95][96]. - The company is subject to stringent data protection laws, including the GDPR, which impose significant compliance costs and potential fines for violations[174]. - Non-compliance with data privacy regulations could lead to legal liability and adversely affect business operations[173]. Financial Performance and Market Conditions - The company has recognized impairments in goodwill and intangible assets in the past, which could negatively affect future results of operations[120]. - Global economic conditions, including inflationary pressures and rising interest rates, could adversely affect the company's revenue and financial condition[110]. - The company may face substantial tax liabilities if required to collect sales, use, or other taxes on its services, which could adversely affect future sales revenue[189]. - Legislative changes in various states and countries regarding digital advertising taxation could materially impact the company's revenue[191]. Innovation and Technology - The company announced a strategic transformation in February 2025, unifying its business units under the Perion brand and launching the Perion One platform[69]. - In 2023, the company launched WAVE, a generative AI-powered dynamic audio solution, and SORT®, a pre-bid technology that uses proprietary AI to optimize ad delivery[91]. - The company must continue to innovate and invest in AI technologies to remain competitive, as failure to do so could materially adversely affect its business[89]. Shareholder and Market Dynamics - As of March 5, 2025, three shareholders beneficially held more than 5% of the outstanding shares, which may allow them to control shareholder vote outcomes[122]. - The company has authorized a share repurchase program totaling $125 million, with $46.9 million spent to repurchase 5.2 million shares as of December 31, 2024[131]. - The company's ordinary shares are traded on both Nasdaq and TASE, leading to potential price variations due to different currencies and trading times[149]. Cybersecurity and Data Protection - The company may face significant legal, reputational, or financial exposure due to cybersecurity threats and data breaches[155]. - The company relies on third-party service providers for information technology, which poses risks related to cybersecurity and data breaches[156]. - Significant failures in data protection measures could materially adversely affect the company's business and reputation, leading to claims from customers and data subjects[159]. Operational Challenges - The company faces margin pressure due to the commoditization of digital advertising services, impacting its profitability[99]. - The company faces significant competition for qualified personnel, particularly in the high-tech industry, which may lead to increased wage inflation and impact profitability[117]. - The company must comply with Nasdaq's continued listing requirements, or it risks delisting, which could negatively affect the price of its ordinary shares[148].

Investors in Perion Network Ltd. (PERI) need to pay close attention to the stock based on moves in the options market lately. That is because the April 17, 2025 $2.5 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could a ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these ...

Investors interested in Internet - Content stocks are likely familiar with Perion Network (PERI) and RELX PLC (RELX) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our St ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis ...

Typically, when a company misses on either trailing results or forward guidance in an earnings report, it's punished by the market. It's also frequently dinged by analysts.Sure enough, over the past few days, both groups rapped the knuckles of adtech company Perion Network (PERI -0.23%) following the release of its latest set of quarterly earnings. According to data compiled by S&P Global Market Intelligence, the stock tumbled nearly 13% in price this week.Well short with top-line guidanceHump Day was the d ...

Shares of Perion (NASDAQ: PERI ) reacted negatively to Q4 results and FY25 guidance, a trend that has become common for the past several quarters. While I acknowledge the outlook for this year was underwhelming, as its larger revenue contributors continue toAn individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a ...

Perion Network (PERI -12.41%) stock is getting hit with big sell-offs in Wednesday's trading. The ad tech company's share price was down 11.7% as of 12:40 p.m. ET and had been off as much as 15.2% earlier today.Perion reported its fourth-quarter results before the market opened this morning, and investors are having a strong bearish reaction. Besides posting sales that fell slightly short of the average Wall Street target, the company also issued guidance that was way below the mark.Perion stock slips on a ...

Perion Network Ltd. (NASDAQ:PERI) Q4 2024 Earnings Conference Call February 19, 2025 8:30 AM ET Company Participants Tal Jacobson - Chief Executive Officer Elad Tzubery - Chief Financial Officer Conference Call Participants Andrew Marok - Raymond James Jason Helfstein - Oppenheimer Eric Martinuzzi - Lake Street Laura Martin - Needham & Co. Jeff Martin - ROTH Capital Operator Hello, everybody, and welcome to the Perion Network Ltd. fourth quarter and full year 2024 earnings conference call. Today's conferenc ...