Perion Network (PERI) AI Stock Analysis

Compare

1,396 Followers

Top Page

Perion Network

(NASDAQ:PERI)

Rating:65Neutral

Price Target:

$11.50

▲(2.68%Upside)

Perion Network's stock score is driven by promising growth prospects from strategic acquisitions and strong technical momentum. However, financial challenges such as declining web revenue, negative cash flow, and valuation concerns due to recent net losses weigh on the overall score. The company's robust balance sheet and increased guidance provide a buffer, but continuous monitoring of financial performance is crucial.

Positive Factors

Acquisition and Market Expansion

The acquisition of Greenbids substantially widens PERI's total addressable market.

Financial Guidance

PERI raised its guidance for Gross Revenue and Adjusted EBITDA for FY25.

Negative Factors

Earnings Miss

PERI missed estimates for 4Q24 with significant year-over-year declines in gross revenues, net revenues, and adjusted EBITDA.

Financial Performance

Gross Revenues were reported down 43% year-over-year.

Perion Network (PERI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$494.96M

Dividend YieldN/A

Average Volume (3M)240.60K

Price to Earnings (P/E)41.6

Beta (1Y)1.22

Revenue Growth-43.13%

EPS Growth-107.18%

CountryUS

Employees528

SectorCommunication Services

Sector Strength87

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.11

Shares Outstanding45,037,180

10 Day Avg. Volume257,121

30 Day Avg. Volume240,598

Financial Highlights & Ratios

PEG Ratio0.42

Price to Book (P/B)0.70

Price to Sales (P/S)0.00

P/FCF Ratio-33.65

Enterprise Value/Market Cap0.76

Enterprise Value/Revenue0.17

Enterprise Value/Gross Profit2.69

Enterprise Value/Ebitda2.09

Forecast

1Y Price Target

$14.00

Price Target Upside25.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Perion Network Business Overview & Revenue Model

Company DescriptionPerion Network Ltd. is a global technology company that delivers advertising solutions across various digital platforms. Operating in the digital advertising and media sectors, Perion provides a suite of software and services that enable brands and publishers to optimize their advertising strategies. The company's core products include intelligent advertising solutions designed to enhance engagement and drive revenue through data-driven insights and innovative ad formats.

How the Company Makes MoneyPerion Network generates revenue through a diversified model primarily centered around digital advertising. The company earns money by offering solutions for search advertising, social media, and display/video advertising. These solutions include both managed services and self-serve platforms that allow advertisers to effectively reach target audiences. Key revenue streams include partnerships with major search engines, social media platforms, and other digital properties, where Perion facilitates ad placements and receives a share of the advertising spend or performance-based fees. Additionally, the company leverages its proprietary technologies to enhance advertising effectiveness, thereby increasing its appeal to both advertisers and publishers. Strategic acquisitions and alliances also play a crucial role in expanding Perion's market reach and capabilities, contributing to its revenue growth.

Perion Network Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes revenue across different business units, highlighting which segments drive growth and profitability, and where strategic focus might be needed.

Chart InsightsPerion Network's Display Advertising revenue shows a recovery trend after a dip in early 2024, while Search Advertising has seen a sharp decline since mid-2024. The earnings call highlights strategic moves, such as the acquisition of Greenbids, expected to expand market opportunities and enhance profitability. Despite a decline in web revenue, the company's increased guidance and strong growth in digital out-of-home and CTV channels indicate a positive outlook. Investors should note the balanced sentiment, with promising growth tempered by financial challenges like a GAAP net loss and negative cash flow.

Data provided by:

Main Street Data

Perion Network Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q1-2025)

% Change Since: 17.03%|

Next Earnings Date:Aug 11, 2025

Earnings Call Sentiment Neutral

Perion Network's earnings call highlighted strong growth in key segments like Digital Out-of-Home and CTV, alongside a strategic acquisition of Greenbids, leading to increased guidance. However, challenges include a decline in web revenue and a GAAP net loss. The sentiment is balanced with promising growth, yet notable financial challenges.

Q1-2025 Updates

Positive Updates

Strong Growth in Digital Out-of-Home and CTV

Digital out-of-home grew by 80% and CTV by 31% year-over-year, outperforming market growth. These channels now represent 31% of total revenue.

Acquisition of Greenbids

Perion announced the acquisition of Greenbids, a cutting-edge AI company that enhances their technology. This acquisition is expected to significantly increase the total addressable market and improve profitability.

Increased Full-Year Guidance

The company raised its full-year 2025 guidance, increasing revenue projection from a range of $400-$420 million to $430-$450 million, and adjusted EBITDA from $40-$42 million to $44-$46 million.

Strong Cash Position and Share Repurchase

Perion has a strong cash position with $358.5 million, and a share repurchase program expanded to $125 million, showing confidence in long-term value.

Negative Updates

Decline in Web Revenue

Web revenue declined by 28% year-over-year, now representing 46% of total revenue compared to 37% last year. This decline is expected to stabilize starting next quarter.

GAAP Net Loss

Perion reported a GAAP net loss of $8.3 million or $0.19 per diluted share, compared to net income of $11.8 million in the first quarter of 2024.

Negative Adjusted Free Cash Flow

Adjusted free cash flow was negative $7.4 million, impacted by $8 million of collections shifting from March to April.

Company Guidance

During the Perion Network Q1 2025 earnings call, the company provided updated guidance reflecting a positive outlook bolstered by strategic moves and strong performance. Revenue for the first quarter was reported at $89.3 million, exceeding initial expectations, with adjusted EBITDA at $1.8 million. Perion announced the acquisition of Greenbids, an AI-based company, which is expected to significantly enhance their technology and expand their total addressable market into lower funnel performance opportunities. This acquisition, along with organic growth, has led Perion to revise their full-year 2025 guidance upwards. The company now anticipates revenue to be in the range of $430 million to $450 million, up from the previous guidance of $400 million to $420 million, and adjusted EBITDA to be between $44 million and $46 million, representing a 10% increase at the midpoint. The call highlighted strong growth in digital out-of-home and CTV channels, which grew by 80% and 31% year-over-year respectively, contributing significantly to the company's revenue mix and future growth trajectory.

Perion Network Financial Statement Overview

Summary

Perion Network exhibits a mixed financial profile. While the balance sheet remains robust, recent income statement challenges and cash flow volatility highlight potential operational and market pressures. Continuous monitoring of profitability and cash generation is essential.

Income Statement

Neutral

Perion Network's income statement shows mixed performance. The TTM data reveals a decline in revenue compared to the previous year, leading to negative EBIT and net income margins. Despite past growth, recent profitability challenges indicate potential operational inefficiencies or industry headwinds.

Balance Sheet

Positive

The balance sheet remains strong, with a healthy equity ratio and low debt-to-equity ratio, indicating financial stability. However, the decline in stockholders' equity over time suggests some capital erosion, potentially due to recent losses.

Cash Flow

Neutral

Cash flow analysis shows volatility, with the TTM period reflecting negative free cash flow and operating cash flow. The ratio of free cash flow to net income has weakened, signaling cash generation challenges. Historical strong cash flow performance provides some buffer.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	498.29M	743.15M	640.26M	478.50M	328.06M
Gross Profit	165.45M	272.38M	237.25M	165.28M	107.96M
EBITDA	21.83M	152.00M	127.50M	55.80M	22.18M
Net Income	12.61M	117.41M	99.22M	38.71M	10.22M
Balance Sheet
Total Assets	916.45M	1.08B	870.22M	713.23M	358.68M
Cash, Cash Equivalents and Short-Term Investments	373.33M	472.68M	429.63M	321.65M	60.36M
Total Debt	22.30M	7.65M	11.48M	13.39M	30.55M
Total Liabilities	196.69M	359.12M	287.08M	246.27M	174.56M
Stockholders Equity	719.76M	718.15M	583.13M	466.96M	184.12M
Cash Flow
Free Cash Flow	67.00K	154.65M	121.07M	70.57M	21.54M
Operating Cash Flow	6.94M	155.46M	122.12M	71.11M	22.05M
Investing Cash Flow	62.60M	-133.35M	-46.82M	-243.47M	-8.81M
Financing Cash Flow	-100.91M	-10.82M	-3.26M	229.05M	-4.05M

Perion Network Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.20

Price Trends

50DMA

10.50

Positive

100DMA

9.48

Positive

200DMA

9.06

Positive

Market Momentum

MACD

0.27

Negative

RSI

63.22

Neutral

STOCH

66.32

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PERI, the sentiment is Positive. The current price of 11.2 is above the 20-day moving average (MA) of 10.78, above the 50-day MA of 10.50, and above the 200-day MA of 9.06, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 63.22 is Neutral, neither overbought nor oversold. The STOCH value of 66.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PERI.

Perion Network Risk Analysis

Perion Network disclosed 67 risk factors in its most recent earnings report. Perion Network reported the most risks in the "Tech & Innovation" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Perion Network Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBLA	74 Outperform	$1.14B	92.13	1.35%	―	16.62%	―
PERI	65 Neutral	$494.96M	41.65	-1.03%	―	-43.13%	-107.18%
Sector *	62 Neutral	$41.89B	-1.63	-12.07%	3.43%	2.03%	-69.89%
MAX	59 Neutral	$686.84M	35.18	-115.07%	―	148.62%	―
ZH	58 Neutral	$430.07M	―	-0.39%	―	-19.68%	99.02%
TRVG	57 Neutral	$256.87M	―	-11.66%	―	0.77%	87.59%
TEAD	55 Neutral	$250.84M	―	-14.61%	―	4.15%	-394.93%

* Communication Services Sector Average

Performance Comparison

PERI

Perion Network

11.20

2.38

26.98%

TRVG

trivago

3.75

1.65

78.57%

MAX

MediaAlpha

10.18

-4.65

-31.36%

TBLA

Taboola.com

3.51

0.10

2.93%

Zhihu

4.79

1.48

44.71%

TEAD

Teads Holding

2.88

-2.00

-40.98%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025