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- **Revenue Recovery**: Q3 2025 marks first year-over-year growth in revenue and contribution ex-TAC since Q1 2024, driven by 75% CTV growth and 26% DOOH expansion.
- **AI-Powered Innovation**: Outmax AI algorithm delivered 22% CPM savings for Ford, while Soda and DOOH Player create high-margin, recurring revenue streams.
- **Share Buyback Expansion**: $200 million buyback program reflects confidence in long-term value, with $94.2 million repurchased to date.
- **Strategic Focus**: Shifting 37% of revenue to high-growth channels (CTV and DOOH) vs. 28% last year, with web business declining strategically to focus on AI-driven platforms.
- **2026 Growth Outlook**: CEO targets exceeding 11% street consensus via Perion One platform adoption and market share gains in connected TV, DOOH, and retail media.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $110.5 million, up 8% year-over-year, with contribution ex-TAC growing 7% to $51 million. This marks the first year-over-year growth in both metrics since Q1 2024.
- **Core Growth Engines**: CTV revenue surged 75% YoY, digital out-of-home (DOOH) grew 26%, and retail media expanded 40%, outpacing market growth rates.
- **New Products**: Launched Outmax (unified AI algorithm for media optimization), Soda (AI monetization engine for publishers), and the DOOH Player (full-stack platform for DOOH and retail media).
- **Strategic Partnerships**: Expanded into retail media with Albertsons Media Collective, demonstrating 5.5% sales lift for Spliemo Water campaigns.
- **Perion One Vision**: Focused on becoming a unified AI-powered platform for modern marketers, with 37% of revenue now from high-growth channels (CTV and DOOH) vs. 28% last year.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA rose 63% YoY to $12.1 million (24% of contribution ex-TAC). Non-GAAP EPS was $0.28, up 22% YoY.
- **Cash Flow**: Generated $5.9 million in operating cash flow, with $315 million in total cash as of Q3.
- **Share Repurchase**: Expanded buyback program to $200 million (up from $125 million), with $94.2 million repurchased to date.
- **Guidance**: Reaffirmed full-year 2025 revenue ($430-$450 million) and EBITDA ($44-$46 million) targets.

**【Q&A Key Highlights】**
- **CTV Growth Drivers**: Outmax and Greenbids algorithms drove 12% viewability improvement and 22% CPM reduction for Ford campaigns. CTV expected to outpace market growth due to connected TV shift.
- **Web Business Decline**: 11% YoY decline attributed to strategic exit of low-margin web businesses in Q2 2024. Remaining web revenue is stable, but long-term focus on high-growth channels.
- **AI Adoption**: 100% of R&D now AI-driven, with automation replacing manual processes. Sales and marketing investments will scale Perion One adoption.
- **New Revenue Streams**: Soda and DOOH Player generate high-margin, recurring revenue. DOOH Player captures both direct and programmatic spend, expanding TAM.
- **2026 Outlook**: CEO expects to exceed street consensus (11% growth) via market share gains in CTV, DOOH, and retail media.

Perion Network Ltd. (PERI) Q3 2025 Earnings Call Transcript

- **Platform Shift**: Transitioning to Perion One, a CMO-centric AI platform, with Greenbids acquisition driving $1M+ in new AI deals.
- **Revenue Growth**: Q2 2025 Advertising Solutions up 8% YoY, Digital-out-of-home +35%, Retail Media +27%.
- **CTV Recovery**: Q2 decline (-5% YoY) expected to reverse in H2 2025 with new Performance CTV Solution targeting mid-market brands.
- **Cash Flow Strength**: $21.3M operating cash flow, $33.4M share buyback, $38M remaining in buyback program.
- **Expansion Strategy**: Digital-out-of-home partnerships in APAC, EMEA driving cross-selling of AI solutions and CTV.

**【CEO Summary Section】**
- Perion is transitioning to a platform-driven model with Perion One, a centralized AI-powered platform for CMOs, integrating creative, data, and channels like Web, CTV, and Digital-out-of-home.
- Acquired Greenbids in Q2 2025 to enhance AI capabilities, with initial synergies booking $1M+ in Perion Algo deals from existing customers.
- Launched Performance CTV Solution, combining high-impact ads with outcome-based metrics, targeting mid-market brands and retailers.
- Q2 2025 highlights: Advertising Solutions revenue up 8% YoY (first growth since Q3 2023), Digital-out-of-home +35% YoY, Retail Media +27% YoY.
- Focused on channel-agnostic growth, with CTV Q2 decline (-5% YoY) attributed to budget shifts to H2 2025.

**【CFO Financial Commentary】**
- Q2 2025 Revenue: $103M (8% YoY growth in Advertising Solutions), Adjusted EBITDA: $7.1M (15% ex-TAC margin), Operating Cash Flow: $21.3M.
- Digital-out-of-home now 17% of revenue (vs. 12% YoY), CTV 9% (stable vs. YoY), Search 22% (stable vs. Q2 2024).
- Completed $33.4M share buyback in Q2, with $38M remaining in program.
- Full-year 2025 guidance: Revenue $430M-$450M, Adjusted EBITDA $44M-$46M.
- Expect margin expansion in H2 2025 via cost optimization and higher-margin solutions.

**【Q&A Key Highlights】**
- **CTV Growth**: CFO reiterates confidence in outpacing 13% CTV market growth in 2025, citing strong H2 pipeline and Performance CTV Solution.
- **Sales Strategy**: Moving to self-serve and white-label Perion One for agencies, aiming to grow revenue without proportional headcount increase.
- **AI Integration**: Automating operations (e.g., HR, campaign deployment) with Gen AI to streamline growth.
- **Digital-out-of-home Expansion**: New partnerships in Korea, Germany, and Italy to tap $21B APAC market, driving cross-selling of Perion Algo.
- **Capital Allocation**: Prioritizing buybacks ($38M remaining) and strategic M&A, with focus on AI and platform synergies.

Perion Network (PERI)-11 Aug 25-2025 Q2 Earnings call transcript

- **Revenue Growth Accelerates**: Q1 2025 revenue up 18% YoY to $89.3M, driven by 80% DOOH growth and 31% CTV expansion.
- **Greenbids Acquisition Supercharges Growth**: $27.5M upfront deal to enter walled garden performance advertising, with EBITDA accretion starting 2025.
- **Guidance Raised 7%**: Full-year revenue target increased to $430-450M, reflecting organic momentum and Greenbids synergies.
- **Strong Cash Position**: $358.5M net cash enables M&A and $125M share buyback program (already repurchased 9M shares).

**【CEO Opening Remarks】**
- Launched Perion One, an outcome-driven platform integrating AI, creative insights, and cross-channel optimization to address CMOs' needs for measurable business outcomes.
- Acquired Greenbids, an AI-powered bidding platform, to expand into lower-funnel performance advertising on walled gardens (YouTube, Facebook, Instagram) and DSPs.
- Q1 highlights: 80% YoY growth in Digital Out-of-Home (DOOH), 31% in CTV, and 33% in retail media. Greenbids' custom algorithm reduces ad spend waste and targets inefficiencies in the ecosystem.
- Raised 2025 full-year guidance to $430-450M revenue (vs. prior $400-420M) and $44-46M EBITDA (vs. $40-42M), driven by organic growth and Greenbids synergies.

**【CFO Financial Summary】**
- Q1 2025 Results:
  - Total Revenue: $89.3M (vs. $75.5M YoY)
  - Adjusted EBITDA: $1.8M (vs. $1.3M YoY)
  - Cash Position: $358.5M (net cash)
- Key Metrics:
  - DOOH: 19% of revenue (vs. 6% YoY), +80% YoY
  - CTV: 12% of revenue (vs. 5% YoY), +31% YoY
  - Web Revenue: 46% of revenue (vs. 37% YoY), -28% YoY
- Guidance Update:
  - Revenue: +$30M midpoint (7% increase)
  - EBITDA: +$4M midpoint (10% increase)
- Greenbids Contribution:
  - $27.5M upfront, $22.5M earn-out over 2 years, $15M retention package
  - Accretive to EBITDA in 2025, with full impact from 2026+

Perion Network (PERI)-13 May 25-2025 Q1 Earnings call transcript

- **Perion One Platform Launch**: Unifies CTV, DOOH, retail media under single AI-driven ecosystem
- **Core Growth Engines Outperform**: DOOH (+50%), CTV (+30%), Retail Media (+62%) vs. market growth
- **2025 Financial Outlook**: $400-420M revenue, $40-42M EBITDA, 22% margin
- **Cost Optimization**: Q1 2025 headcount reductions to improve efficiency
- **AI Innovation**: Testing multiple LLMs for cost-effective automation
- **Share Buybacks**: $46.9M spent (of $75M authorization)

**【CEO Summary Section】**
- Introduced the **Perion One platform**, a unified AI-driven advertising ecosystem integrating CTV, digital out-of-home (DOOH), retail media, and open web. 
- Core growth engines outperformed market growth in 2024:
  - **DOOH revenue +50% YoY** (vs. 10% market growth)
  - **CTV revenue +30% YoY** (vs. 23% market growth)
  - **Retail media revenue +62% YoY** (vs. 20% market growth)
- Appointed 3 top-tier executives: CRO (Google veteran), CPO (Criteo/PubMatic), and CTO (Samsung Ads alumni)
- Open web business expected to stabilize as advertisers shift budgets to higher-margin channels

**【CFO Financial Commentary】**
- **2024 Full Year Results**:
  - Revenue: $498.3M (-33% YoY) due to search ad decline
  - Adjusted EBITDA: $50.9M (10% margin)
  - GAAP Net Income: $12.6M; Non-GAAP Net Income: $64M
  - Free cash flow: $16.6M
- **2025 Guidance**:
  - Revenue: $400-420M
  - Adjusted EBITDA: $40-42M
  - EBITDA margin: 22%
- Implemented cost-saving measures in Q1 2025 (headcount reductions) to improve efficiency
- Share buyback program: $46.9M spent (of $75M authorization)

**【Q&A Highlights】**
1. **Open Web Challenges**:
   - Industry-wide decline due to ad format commoditization
   - Perion One platform expected to reverse trend by 2026
2. **Perion One Implementation**:
   - 2025 efficiency gains to be reflected in 2H25 financials
   - Full impact on margins anticipated in 2026
3. **CTV Growth**:
   - Q4 2024 growth slowed to +10% YoY (vs. +30% full year)
   - 2025 growth expected to outpace market (23% YoY)
4. **AI Strategy**:
   - Testing multiple LLMs (OpenAI, Google, DeepSeek) for cost optimization
   - Open-source models preferred for flexibility
5. **Capital Allocation**:
   - Focus on organic growth and Perion One integration
   - Acquisitions will only target platform-agnostic solutions

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