Perion Shares Pop On Q4 Beat Aided By Diversification, Microsoft Relationship

Perion Network Ltd PERI reported fourth-quarter FY21 revenue growth of 34% year-on-year to $158 million, beating the consensus of $144.96 million.
Display Advertising revenues rose 46% Y/Y to $100.2 million, fueled by the proforma basis growth of 87% in video and CTV.
Search Advertising revenue increased 16% Y/Y to $57.8 million, due to 17.5 million of average daily monetizable search queries compared to 15.7 million in the Q4 of 2020 and 43% Y/Y increase in publishers to its network.
Non-GAAP EPS of $0.62 beat the consensus of $0.39.
The Adjusted EBITDA/Revenue Ex TAC expanded to 45% from 35% last year. The adjusted EBITDA margin expanded 530 bps to 18.3%.
Perion Network generated $28.8 million in operating cash flow and held $321.6 million in cash and equivalents.
Doron Gerstel, Perion's CEO, commented, "Record fourth quarter and full-year outstanding financial performance are a direct result of Perion's diversification strategy and our ability to connect all our assets into a single intelligent hub, demonstrating Perion's sustainable and predictable business model."
The company noted its expanded relationship with Microsoft Corp MSFT Bing drove the increase in search advertising revenue and significant incremental EBITDA.
Outlook: Perion raised the FY22 revenue outlook from $590 million - $610 million to $610 million - $630 million, above the consensus of $596.3 million.
Price Action: PERI shares traded higher by 9.39% at $23.99 in the premarket session on the last check Wednesday.

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