Perion Network (PERI) 6 Nov 24 2024 Q3 Earnings call transcript

Focus on Innovation and Advanced Technologies

Perion Network, a global digital advertising leader, showcased their commitment to innovation and advanced technologies during their third quarter 2024 earnings call. With a decade-long track record of generating positive annual adjusted EBITDA and operating cash flow, the company is well-positioned to continue its growth trajectory. Perion's Chief Executive Officer, Tal Jacobson, highlighted the company's unique approach to digital advertising, emphasizing its ability to help CMOs navigate the increasingly fragmented digital advertising landscape.

Perion's AI-driven technologies are at the forefront of digital advertising innovation, enabling brands to achieve better returns and meaningful outcomes across multiple channels. The company's advanced AI audience segmentation technology, SORT, and its generative AI audio ad solution, WAVE, are just a few examples of Perion's cutting-edge solutions. Furthermore, the recent launch of a unique advertising experience powered by Chat AI capabilities underscores Perion's commitment to staying ahead of industry trends and capturing high-growth areas like CTV, Retail Media, and Digital out of Home.

Financial Performance and Strategic Focus

The third quarter results were in line with expectations, with a focus on strong contributions from the company's growth engines. While there were challenges in the Search business, particularly in open web video and standard ad formats, Perion remains optimistic about its future prospects. The decline in Search revenue was attributed to the impact of Microsoft Bing's actions earlier in the year. Despite these challenges, Perion reported a profitable quarter, with a strong net cash position, allowing the company to invest in technology, organic growth, and executing its M&A strategy.

Strong Growth Engines and Future Outlook

Perion's growth engines, particularly Digital out of Home, Retail Media, and CTV, have delivered strong growth of 63%, 62%, and 19% year-over-year, respectively. This growth is a testament to Perion's strategic focus on high-growth areas and its ability to adapt to industry trends. Looking ahead, Perion invites investors and stakeholders to be part of its future growth story, highlighting its commitment to innovation, leadership, and a global footprint that positions it to accelerate growth in high-potential markets.

Conclusion

Perion Network's third quarter 2024 earnings call underscored the company's strong financial performance, innovative technologies, and strategic focus on high-growth areas. With a decade-long track record of generating positive adjusted EBITDA and operating cash flow, Perion is well-positioned to continue its growth trajectory and remain at the forefront of digital advertising innovation. By staying ahead of industry trends and leveraging advanced technologies, Perion is setting new standards and creating impactful results for its clients and partners.