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Perion (PERI) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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Perion Network (PERI - Free Report) reported fourth-quarter 2022 adjusted earnings of 90 cents per share, which beat the Zacks Consensus Estimate by 28.57% and jumped 45.2% year over year.
Revenues of $209.7 million beat the consensus mark by 2.25% and jumped 32.7% year over year.
Perion Network Ltd Price, Consensus and EPS Surprise
Display Advertising revenues (59% of total revenues) soared 23.6% year over year to $123.8 million.
Video revenues increased 33% year over year, representing 42% of Display Advertising revenues. Connected Television revenues surged 42% year over year.
Search Advertising and other revenues (41% of total revenues) soared 48.6% year over year to $85.9 million.
Average daily searches increased by 26% and average RPM increased by 13% year over year.
Operating Details
Traffic acquisition costs (TAC) surged 30.8% year over year to $122 million. However, TAC, as a percentage of revenues, decreased from 59.1% in the year-ago quarter to 58.2% in the fourth quarter.
Adjusted EBITDA came in at $48.2 million, up 66.8% on a year-over-year basis.
On a non-GAAP basis, selling and marketing expenses declined 4% year on year to $16.1 million.
Research and development expenses rose 0.5% year over year to $9.3 million. General and administrative expenses shot up 14.7% year on year to $7.9 million.
Total operating expenses on a non-GAAP basis were $168.5 million, up 22.8% year over year.
Perion reported an operating profit of $41.2 million compared with the operating profit of $20.8 million reported in the year-ago quarter.
Balance Sheet and Cash Flows
As of Dec 31, 2022, the company had cash & cash equivalents and short-term bank deposits worth $430.9 million.
Cash flow from operations was $38.2 million.
Guidance
For 2023, revenues are projected between $720 million and $740 million, indicating year-over-year growth of 14%.
Adjusted EBITDA is expected in the range of $149-$153 million, suggesting growth of 14% at the mid-point.
Zacks Rank & Stocks to Consider
Perion Network currently carries a Zacks Rank #3 (Hold).
Perion shares have gained 35.3% in the past year against the Zacks Computer & Technology sector’s decline of 20.4%.
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Perion (PERI) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Perion Network (PERI - Free Report) reported fourth-quarter 2022 adjusted earnings of 90 cents per share, which beat the Zacks Consensus Estimate by 28.57% and jumped 45.2% year over year.
Revenues of $209.7 million beat the consensus mark by 2.25% and jumped 32.7% year over year.
Perion Network Ltd Price, Consensus and EPS Surprise
Perion Network Ltd price-consensus-eps-surprise-chart | Perion Network Ltd Quote
Segment Details
Display Advertising revenues (59% of total revenues) soared 23.6% year over year to $123.8 million.
Video revenues increased 33% year over year, representing 42% of Display Advertising revenues. Connected Television revenues surged 42% year over year.
Search Advertising and other revenues (41% of total revenues) soared 48.6% year over year to $85.9 million.
Average daily searches increased by 26% and average RPM increased by 13% year over year.
Operating Details
Traffic acquisition costs (TAC) surged 30.8% year over year to $122 million. However, TAC, as a percentage of revenues, decreased from 59.1% in the year-ago quarter to 58.2% in the fourth quarter.
Adjusted EBITDA came in at $48.2 million, up 66.8% on a year-over-year basis.
On a non-GAAP basis, selling and marketing expenses declined 4% year on year to $16.1 million.
Research and development expenses rose 0.5% year over year to $9.3 million. General and administrative expenses shot up 14.7% year on year to $7.9 million.
Total operating expenses on a non-GAAP basis were $168.5 million, up 22.8% year over year.
Perion reported an operating profit of $41.2 million compared with the operating profit of $20.8 million reported in the year-ago quarter.
Balance Sheet and Cash Flows
As of Dec 31, 2022, the company had cash & cash equivalents and short-term bank deposits worth $430.9 million.
Cash flow from operations was $38.2 million.
Guidance
For 2023, revenues are projected between $720 million and $740 million, indicating year-over-year growth of 14%.
Adjusted EBITDA is expected in the range of $149-$153 million, suggesting growth of 14% at the mid-point.
Zacks Rank & Stocks to Consider
Perion Network currently carries a Zacks Rank #3 (Hold).
Perion shares have gained 35.3% in the past year against the Zacks Computer & Technology sector’s decline of 20.4%.
Some better-ranked stocks in the same sector are Baidu (BIDU - Free Report) , RingCentral (RNG - Free Report) and Cambium Networks (CMBM - Free Report) .
While Baidu sports a Zacks Rank #1 (Strong Buy), both Cambium and RingCentral carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu shares have declined 8.6% in the past year. BIDU is set to report its fourth-quarter 2022 results on Feb 22.
RingCentral shares have declined 74.4% in the past year. RNG is set to report its fourth-quarter 2022 results on Feb 15.
Cambium shares have declined 18% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.