Why Did Perion Network Shares Gain Today?

Perion Network Ltd PERI reported second-quarter FY21 revenue growth of 82% year-on-year to $109.7 million, beating the analyst consensus of $104.94 million.
Display and Social Advertising revenues rose 211% Y/Y to $58 million, fueled by broad-based adoption of its video and CTV offerings, leading to an increase of average campaign spend by 58% and a 67% increase in the number of clients.
Search Advertising and other revenues increased 24% Y/Y to $51.6 million, driven by improved performance advertising spend by brands.
Non-GAAP EPS of $0.33 beat the analyst consensus of $0.18.
The adjusted EBITDA margin expanded 890 bps to 13%.
Perion generated $14.6 million in operating cash flow and held $141.2 million in cash and equivalents.
Outlook: Perion narrowed the FY21 revenue outlook from the previous $410 million- $430 million to $415 million- $430 million versus the analyst consensus of $420.17 million.
It sees FY22 revenue of $490 million - $520 million against the analyst consensus of $481.99 million.
Price action: PERI shares closed higher by 5.27% at $19.57 on Tuesday.

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