Perion Network Stock Gets Boost From Q2 Beat, Guidance Lift

Perion Network Ltd PERI reported second-quarter FY23 revenue growth of 22% year-on-year to $178.5 million, beating the consensus of $176 million.

Display Advertising revenues rose 22% Y/Y to $99.4 million, primarily from video and CTV revenue growth.

Search Advertising revenue increased 21% Y/Y to $79.1 million due to a 28% increase in publishers and a 68% increase in average daily searches.

Non-GAAP EPS of $0.84 beat the consensus of $0.71.

Adjusted EBITDA margin expanded to 54% of revenue, excluding traffic acquisition costs, compared to 47% in 2022. 

Perion Network generated $47.4 million in operating cash flow and held $483.3 million in cash and equivalents.

"Our business results demonstrate, once again, our consistent ability to outperform the industry. We accomplish that through focusing on profitability and margin expansion, driven by efficiency and innovation", said Tal Jacobson, Perion's CEO. "Our growth in second-quarter revenue and adjusted EBITDA - up 22% and 45% respectively - highlights our ability to identify and seize lucrative market segments with agility."

FY23 Outlook: Perion boosted revenue to $730 million - $750 million (prior $725 million - $745 million) versus the consensus of $737.89 million.

It expects Adjusted EBITDA to Contribution Ex-TAC of 54% (prior 50%).

Price Action: PERI shares opened flat at $35.51 on Wednesday morning.

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