Digital Ad Firm Perion Network Surpasses Q3 Expectations, CEO Tal Jacobson Confident In Meeting Annual Goals

Perion Network Ltd PERI reported third-quarter FY23 revenue growth of 17% year-on-year to $185.31 million, beating the consensus of $184.36 million.

The digital advertising company's adjusted EPS of $0.84 beat the consensus of $0.63.

Also Read: Perion Network Is Top Small-Cap Ad Stock - Oppenheimer Analyst Touts Amid Strong Financial Performance

Display Advertising revenues rose 14% Y/Y to $99.2 million, primarily from Retail and CTV revenue growth.

Search Advertising revenue increased 20% Y/Y to $86.1 million due to a 16% increase in publishers and an 86% increase in average daily searches.

Adjusted EBITDA margin expanded to 55% of revenue, excluding traffic acquisition costs, compared to 51% in 2022. 

Perion Network generated $40.1 million in operating cash flow and held $523.6 million in cash and equivalents.

CEO Tal Jacobson flagged that Retail Media solutions are tracking to exceed Perion's annual revenue goal for 2023 significantly.

FY23 Outlook: Perion reiterated revenue of $730 million - $750 million versus the consensus of $741.29 million.

PERI also maintained Adjusted EBITDA to Contribution Ex-TAC of 54%.

The stock has lost 18.5% last month.

Price Action: PERI shares traded higher by 7.68% at $27.35 premarket on the last check Wednesday.