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Perion Network (PERI) Reports Upbeat Q4 Preliminary Earnings

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Perion Network (PERI - Free Report) reported strong preliminary results for fourth-quarter 2022 on Jan 4. The advertising technology company now anticipates revenues of $205 million, which suggests 30% growth from the figure reported in the year-ago quarter.

Adjusted EBITDA is expected to be $47 million, indicating a whopping 63% increase from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for revenues is currently pegged at $201.7 million, suggesting 27.64% growth from the figure reported in the year-ago quarter. The consensus mark for earnings of 65 cents per share, unchanged over the past 30 days.

What’s in Store for Perion’s Shares in 2023?

Perion shares gained 7.6% to close at $27 on Jan. The company has returned 23.8% in the past year against the Zacks Internet Content industry’s decline of 36.6% and the broader Computer and Technology sector’s decline of 33.4%.

Perion’s outperformance can be attributed to its strong product portfolio. Advertising revenues in fourth-quarter 2022 are expected to have benefited from solid video advertising. Moreover, the company’s top-line growth is expected to have benefited from its Vidazoo acquisition.
 

 

In third-quarter 2022, Display Advertising revenues increased 26% year over year to $86.8 million. Search Advertising revenues increased 38% year over year to $71.8 million.

Perion’s top line is riding on strong contributions from Video (up 209% in the third quarter) and CTV (up 134% in the third quarter), including Vidazoo, significant growth in average deal size, revenue retention and continued growth in the daily average number of monetizable searches.

Perion is likely to benefit from the robust performance of its Search business, driven by strong advertiser demand. The adoption of its SORT solution is strong with advertisers and agencies who are becoming more aware of the importance of consumer privacy.

In the third quarter, the number of SORT customers rose to 140, up 11% increase sequentially. SORT customer spending increased 25% representing 17% of display advertising revenue.

Perion is expected to update its 2023 guidance on Feb 8, when the company reports fourth-quarter 2022 results.

Zacks Rank & Other Stocks to Consider

Perion currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks (ANET - Free Report) , Asure Software (ASUR - Free Report) and Cogent Communications (CCOI - Free Report) are some same-ranked stocks worth considering in the broader Computer & Technology sector.

Arista shares have dropped 14.5% in the past year. The Zacks Consensus Estimate for ANET’s fourth-quarter 2022 earnings stands at $1.21 per share, unchanged over the past 30 days.

Asure shares have gained 34.1% in the past year. The Zacks Consensus Estimate for ASUR’s fourth-quarter 2022 earnings stands at 1 cent per share, unchanged over the past 30 days.

Cogent shares have declined 15.4% in the past year. The consensus mark for CCOI’s fourth-quarter 2022 earnings stands at 18 cents per share, down a penny over the past 30 days.

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