Perion Network Tops Q1 Thanks To ChatGPT's Elevating Interest In Microsoft's Bing

Perion Network Ltd PERI reported first-quarter FY23 revenue growth of 16% year-on-year to $145.15 million, beating the consensus of $141.33 million.

• Display Advertising revenues rose 16% Y/Y to $79.9 million, primarily from video and CTV revenue growth.
• Search Advertising revenue increased 15% Y/Y to $65.3 million due to a 29% increase in publishers and a 49% increase in average daily searches.
• Non-GAAP EPS of $0.60 beat the consensus of $0.43.
• Adjusted EBITDA margin expanded to 48% of revenue, excluding traffic acquisition costs, compared to 42% in 2022. 
• Perion Network generated $17.8 million in operating cash flow and held $436.3 million in cash and equivalents.
• "The rapid emergence of ChatGPT in the market and Microsoft's mission to further expand the role of AI within search, has elevated user interest in Bing," Perion CEO Doron Gerstel said, citing a 49% year-over-year growth in average daily searches, as well as "a lift in new publishers."

FY23 Outlook: Perion boosted revenue to $725 million - $745 million, up from $720 million - $740 million versus the consensus of $729.25 million.

Price Action: PERI shares were trading at $35.92 at last check om Wednesday, May 3.