Perion Network Ltd (PERI) Q1 2025 Earnings Call Highlights: Strategic Growth and Raised ...

In This Article:

  • Total Revenue: $89.3 million for Q1 2025.

  • Adjusted EBITDA: $1.8 million for Q1 2025.

  • Net Cash Position: Nearly $360 million.

  • Digital Out-of-Home Growth: 80% year-over-year, representing 19% of total revenue.

  • CTV Growth: 31% year-over-year, representing 12% of total revenue.

  • Retail Media Growth: 33% year-over-year.

  • Web Revenue Decline: 28% year-over-year, representing 46% of total revenue.

  • Search Revenue: Stabilized at approximately $20 million per quarter, representing 22% of total revenue.

  • Contribution Margin (Excluding TAC): 44% compared to 38% in Q1 2024.

  • GAAP Net Loss: $8.3 million or $0.19 per diluted share.

  • Non-GAAP Net Income: $5.4 million or $0.11 per diluted share.

  • Cash Used in Operating Activities: $7.1 million for Q1 2025.

  • Adjusted Free Cash Flow: Negative $7.4 million for Q1 2025.

  • Share Repurchase Program: Expanded to $125 million, with almost 6 million shares repurchased for $53.3 million by Q1 2025 end.

  • 2025 Revenue Guidance: Increased to $430 million to $450 million.

  • 2025 Adjusted EBITDA Guidance: Increased to $44 million to $46 million.

Release Date: May 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Perion Network Ltd (NASDAQ:PERI) reported a strong start to 2025, exceeding initial expectations with growth across all core channels.

  • The company announced a strategic acquisition of Greenbids, enhancing its AI capabilities and expanding its total addressable market.

  • Perion Network Ltd (NASDAQ:PERI) raised its full-year 2025 guidance, reflecting confidence in its growth trajectory and market opportunities.

  • The digital out-of-home channel grew by 80% year-over-year, demonstrating the success of Perion Network Ltd (NASDAQ:PERI)'s acquisition and integration strategy.

  • Perion Network Ltd (NASDAQ:PERI) maintains a strong cash position with $358.5 million, providing flexibility for strategic investments and shareholder returns.

Negative Points

  • Perion Network Ltd (NASDAQ:PERI) reported a GAAP net loss of $8.3 million for Q1 2025, compared to a net income of $11.8 million in the same quarter last year.

  • Web revenue declined by 28% year-over-year, indicating challenges in this segment.

  • The company's adjusted free cash flow was negative $7.4 million for the first quarter, impacted by delayed collections.

  • Search revenue has stabilized at approximately $20 million per quarter, representing a significant decline from 52% to 22% of total revenue year-over-year.

  • The integration and scaling of Greenbids' technology may take time to fully realize its potential impact on Perion Network Ltd (NASDAQ:PERI)'s financial performance.