PERI Earnings Prediction
The chart below shows how PERI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PERI sees a +4.55% change in stock price 10 days leading up to the earnings, and a +0.37% change 10 days following the report. On the earnings day itself, the stock moves by -2.30%. This data can give you a slight idea of what to expect for the next quarter's release.
PERI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
129.58M
-44.68%
26.79%
Gross Margin
29.83%
-7.88%
-6.25%
Operating Margin
3.11%
-82.65%
-233.48%
Net Margin
3.81%
-77.35%
84.06%
EPS
0.11
-85.90%
175.00%
No Data Available
PERI Earnings Analysis
Perion Network Ltd Corporation (PERI.O) Earnings Conference Call
Positive
Strategic Foundation Laid: 2024 was a pivotal year for Perion Network Ltd., laying the foundation for the PerionOne strategy, which aims to unify technologies and improve operational efficiency.
Advertising Process Simplification: The PerionOne platform is designed to simplify the advertising process, addressing the complexities of a fragmented $700 billion industry, which is expected to attract more customers.
Digital Out-of-Home Revenue Surge: Digital out-of-home revenue grew by 50% year over year, significantly outpacing the 10% market growth reported by eMarketer, showcasing Perion's programmatic innovation.
CTV Solutions Growth Surge: CTV solutions experienced a 30% year-over-year growth, surpassing the 23% market growth, indicating strong demand for advanced targeting and cross-device solutions.
Retail Media Revenue Surge: Retail media revenue grew by 62% year over year, more than tripling the industry growth rate of 20%, highlighting the effectiveness of Perion's offerings in this sector.
Positive Cash Flow Generation: The company ended 2024 profitable with positive operating cash flow, generating $6.9 million from operations and $16.6 million in adjusted free cash flow.
Strong Financial Position: Perion Network Ltd. has a strong balance sheet with $373.3 million in cash and equivalents, providing a solid foundation for future growth and capital allocation strategies.
Share Repurchase Confidence: The company repurchased 5.2 million shares for $46.9 million, demonstrating confidence in its stock and commitment to returning value to shareholders.
Negative
Earnings Miss Reported: Perion Network Ltd. missed earnings expectations with a reported EPS of $0.33, falling short of the expected $0.34.
Revenue Decline Analysis: The company experienced a significant revenue decline of 33% year over year, amounting to $498.3 million, primarily due to decreased search revenue and weakness in open web video and standard ad formats.
Revenue Decline Analysis: In Q4, revenue dropped to $129.6 million from $234.2 million in the same period last year, indicating a substantial decrease in performance.
Q4 Adjusted EBITDA Decline: Adjusted EBITDA for Q4 was $15.5 million, down from $53.9 million in Q4 2023, reflecting a decrease in profitability.
Net Income Decline: GAAP net income for the full year was $12.6 million, a sharp decline from $107.4 million in 2023, indicating a significant drop in overall profitability.
Decline in Non-GAAP Income: Non-GAAP net income also fell to $64 million for the full year, down from $167.4 million in 2023, highlighting a concerning trend in earnings.
Advertising Revenue Decline: The advertising solutions revenue for Q4 was $104.1 million, down 13% year over year, primarily due to advertisers shifting budgets away from open web video and standard ad formats.
Search Advertising Revenue Impact: The company did not renew its contract with Microsoft Bing, which is expected to impact search advertising revenue stability going forward.
PERI FAQs
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PERI Earning Call Sentiment
Perion Network Ltd. (NASDAQ:PERI) Q4 2024 Earnings Call Transcript
PERI.O
4.29%Positive
The earnings report shows significant declines in key financial metrics such as revenue, EBITDA, and net income, indicating weak financial performance. Despite some positive developments in digital out-of-home and retail media revenues, the overall financial picture is concerning. The share repurchase program provides some support, but operational challenges, economic factors, and unclear guidance on future improvements contribute to a negative outlook. The Q&A reveals uncertainty about addressing open web challenges and lacks a clear timeline for improvements, reinforcing a negative sentiment.
