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Perion Network Ltd (PERI)
:PERI
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Perion Network
(NASDAQ:PERI)
Rating:66Neutral
Price Target:
$11.50
▲(10.58%Upside)
Positive Factors
Acquisition
The acquisition of Greenbids substantially widens PERI's total addressable market.
Financial Performance
PERI outperformed on almost all metrics of the 1Q25 estimates.
Revenue Growth
The acquisition of Greenbids is expected to accelerate revenue growth potential due to its robust AI algorithm capability.
Negative Factors
Earnings Miss
PERI missed estimates for 4Q24 with significant year-over-year declines in gross revenues, net revenues, and adjusted EBITDA.
Guidance
FY25 guidance for PERI was lower than expected, with a decrease in both gross revenues and adjusted EBITDA.
Revenue Decline
Gross Revenues were reported down 43% year-over-year.
Perion Network (PERI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$462.08M
Dividend YieldN/A
Average Volume (3M)562.88K
Price to Earnings (P/E)41.6
Beta (1Y)1.07
Revenue Growth-43.13%
EPS Growth-107.18%
CountryUS
Employees528
SectorCommunication Services
Sector Strength89
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.11
Shares Outstanding45,037,180
10 Day Avg. Volume190,711
30 Day Avg. Volume562,878
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.65
Price to Sales (P/S)0.00
P/FCF Ratio-31.19
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit2.44
Enterprise Value/Ebitda1.89
Forecast
1Y Price Target
$13.50Price Target Upside29.81% 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
Analyzes revenue from different business segments, highlighting which areas are driving growth and where the company might face challenges or opportunities.
Analyzes revenue from different business segments, highlighting which areas are driving growth and where the company might face challenges or opportunities.
Data provided by:
Main Street Data
Main Street DataPerion Network Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 8.67%|
Next Earnings Date:Jul 30, 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 shows a mixed financial performance. Despite a strong balance sheet with a healthy equity ratio and low debt, the income statement reveals declining revenues and negative margins. Cash flow volatility further underscores potential operational pressures.Income Statement
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.55
Neutral
Balance Sheet
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.70
Positive
Cash Flow
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.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 429.81M | 498.29M | 743.15M | 640.26M | 478.50M | 328.06M | Gross Profit |
| 139.28M | 165.45M | 272.38M | 237.25M | 165.28M | 107.96M | EBIT |
| -16.13M | -3.04M | 116.74M | 109.16M | 45.90M | 12.25M | EBITDA |
| 536.00K | 21.83M | 152.00M | 127.50M | 55.80M | 22.18M | Net Income Common Stockholders |
| -7.50M | 12.61M | 117.41M | 99.22M | 38.71M | 10.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 61.62M | 373.33M | 472.68M | 429.63M | 321.65M | 60.36M | Total Assets |
| 283.78M | 916.45M | 1.08B | 870.22M | 713.23M | 358.68M | Total Debt |
| 40.70M | 22.30M | 7.65M | 11.48M | 13.39M | 30.55M | Net Debt |
| 2.31M | -133.93M | -179.96M | -164.75M | -91.06M | -17.11M | Total Liabilities |
| 118.59M | 196.69M | 359.12M | 287.08M | 246.27M | 174.56M | Stockholders Equity |
| 165.18M | 719.76M | 718.15M | 583.13M | 466.96M | 184.12M |
| Cash Flow | Free Cash Flow | ||||
| -15.02M | 67.00K | 154.65M | 121.07M | 70.57M | 21.54M | Operating Cash Flow |
| -6.90M | 6.94M | 155.46M | 122.12M | 71.11M | 22.05M | Investing Cash Flow |
| 90.36M | 62.60M | -133.35M | -46.82M | -243.47M | -8.81M | Financing Cash Flow |
| -107.24M | -100.91M | -10.82M | -3.26M | 229.05M | -4.05M |
Perion Network Technical Analysis
Positive
10.40
Price Trends
9.42
Positive
9.09
Positive
8.74
Positive
Market Momentum
0.25
Positive
53.49
Neutral
24.34
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 10.4 is below the 20-day moving average (MA) of 10.64, above the 50-day MA of 9.42, and above the 200-day MA of 8.74, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.18B | 94.75 | 1.35% | ― | 16.62% | ― | |
67 Neutral | $712.48M | 37.28 | -115.07% | ― | 148.62% | ― | |
66 Neutral | $462.08M | 41.65 | -1.03% | ― | -43.13% | -107.18% | |
61 Neutral | $14.78B | 5.89 | -4.32% | 3.67% | 2.75% | -30.30% | |
59 Neutral | $282.91M | ― | -11.66% | ― | 0.77% | 87.59% | |
53 Neutral | $264.98M | ― | -14.61% | ― | 4.15% | -394.93% | |
48 Neutral | $351.28M | ― | -0.39% | ― | -19.68% | 99.02% |
* Communication Services Sector Average
Performance Comparison
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Perion Network
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MAX
MediaAlpha
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TBLA
Taboola.com
3.56
-0.24
-6.32%
ZH
Zhihu
4.02
0.92
29.68%
OB
Outbrain
2.66
-1.89
-41.54%
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.