Perion Network Announces Strong Third Quarter 2024 Results, Driven by Growth in DOOH, Retail Media, and CTV
Expanding on Multi-Channel Strategies to Lead Digital Advertising Growth
Perion Network Ltd. (NASDAQ and TASE: PERI), a leader in digital advertising technology, has released its third-quarter 2024 financial results, showcasing robust performance across key growth sectors like Digital Out of Home (DOOH), Retail Media, and Connected TV (CTV). These results align with Perion’s strategic focus on integrating high-growth digital channels to help advertisers reach consumers effectively across all screens and platforms.
CEO Commentary and Strategic Focus
“Our third-quarter results demonstrate the strength of our multi-channel approach, with significant gains in DOOH, Retail Media, and CTV,” said Tal Jacobson, CEO of Perion. “Advertisers continue to trust Perion for connecting their messages across diverse digital formats, and our DOOH, Retail Media, and CTV solutions are setting industry standards. We are committed to continuous innovation, adding new capabilities and omni-channel solutions that keep Perion at the forefront of digital advertising.”
Quarterly Performance Highlights
- Digital Out of Home (DOOH): Revenue surged by 63% year-over-year to $19.1 million, now accounting for 23% of Advertising Solutions revenue, up from 11% last year.
- Retail Media: Marking a 62% year-over-year increase, Retail Media revenue rose to $21 million, representing 26% of Advertising Solutions revenue.
- Connected TV (CTV): Achieving a 19% year-over-year increase, CTV revenue reached $9.5 million, now comprising 12% of Advertising Solutions revenue.
- Open Web Video: Experienced a 63% decline in revenue, now representing 14% of Advertising Solutions revenue.
- Search Advertising: Dropped by 76% year-over-year to $20.9 million, accounting for 20% of total revenue. This decrease followed Microsoft Bing’s changes to their advertising contract, which represents less than 5% of Perion’s current revenue run rate.
Q3 Financial Overview
- Total Revenue: Decreased by 45% to $102.2 million, down from $185.3 million in Q3 2023.
- Advertising Solutions Revenue: Declined 18% year-over-year, totaling $81.3 million, driven by shifts in product mix.
- GAAP Net Income: Down 94% to $2.1 million compared to $32.8 million in the same period last year.
- Non-GAAP Net Income: Decreased to $11.9 million, or 12% of revenue, down from 23% in Q3 2023.
- Adjusted EBITDA: Reported at $7.4 million, representing 7% of total revenue, compared to 23% in the prior year.
- Cash Flow from Operations: Net cash from operations in Q3 was $16.2 million, compared with $40.1 million in the prior-year quarter.
Financial Outlook for Full-Year 2024 and Share Repurchase Program
Perion is reiterating its 2024 guidance, expecting revenues between $490 million and $510 million, with an Adjusted EBITDA range of $48 million to $52 million. As part of its commitment to shareholder value, Perion continued its $75 million share repurchase program in Q3, acquiring an additional 1.6 million shares for approximately $13.5 million, bringing the total share repurchase to 3.6 million shares, with $33.5 million spent to date.
Conference Call
Perion will hold a conference call to discuss these results at 8:30 a.m. ET today, with a live webcast and replay available on its website.
