Perion's Earnings Call: Contradictions in CTV Growth, Web Revenue Stability, and AI Search Impact

Advertising Solutions Growth:
- Perion Network reported an 8% year-over-year increase in Advertising Solutions revenue, marking the first positive growth since Q3 2023.
- This growth was driven by healthy performance across Digital-out-of-home, Retail Media, and Web.

Digital-out-of-home Expansion:
- Digital-out-of-home revenue increased by 35% year-over-year, reaching 17% of total revenue.
- The growth was due to strategic partnerships and expanding global programmatic digital-out-of-home presence.

CTV Performance and Strategy:
- CTV revenue declined by 5% year-over-year, representing 9% of total revenue.
- The decline was attributed to advertisers' budget shifting to the second half of the year, but Perion remains optimistic about annual CTV growth due to the launch of the Performance CTV Solution.

Strong Financial Performance:
- Perion Network generated $21.3 million in operating cash flow, highlighting the strength of its cash-generative business model.
- The company achieved a 15% adjusted EBITDA margin despite a challenging macroeconomic environment.

Strategic Acquisitions and Integration:
- The acquisition of Greenbids has already generated tangible synergies, with more than $1 million in Perion Algo deals from existing customers.
- The integration of Greenbids is expected to enhance the company's AI technology and drive growth in its offerings.