Perion Network Shares Surge On Q3 Beat; Clocks $159M In Revenue Backed By Display And Search Ad

Perion Network Ltd PERI reported third-quarter FY22 revenue growth of 31% year-on-year to $158.6 million, beating the consensus of $158 million.
Display Advertising revenues rose 26% Y/Y to $86.8 million, primarily from video and CTV revenue growth.
Search Advertising revenue increased 38% Y/Y to $71.8 million, primarily due to a 42% increase in average RPM and a 60% increase in the number of publishers.
Non-GAAP EPS of $0.61 beat the consensus of $0.43.
Adjusted EBITDA margin expanded to 51% of revenue, excluding traffic acquisition costs, compared to 37% last year. The margin expanded due to the continuous improvement of iHub.
Perion Network generated $34.7 million in operating cash flow and held $390.4 million in cash and equivalents.
Doron Gerstel, Perion's CEO, stated, "This was the eighth consecutive quarter we delivered top and bottom-line double-digit growth on a year-over-year basis."
Outlook: Perion updated the FY22 revenue outlook to $630 million - $635 million versus the prior $620 million - $640 million against the consensus of $632.2 million.
Price Action: PERI shares traded higher by 5.67% at $23.49 in the premarket session on the last check Wednesday.

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