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| Statement |
|---|
| Our two year CAGR was 25% demonstrating the strength of our product mix |
| This is among the highest in the ad tech industry |
| Over the past years, Perion has consistently improved its profitability |
| Our retail media results continued to exceed our internal expectations with quarterly revenue of $20.2 million an increase of 196% year-over-year |
| Therefore, we were able to quickly respond and capitalize on our customer spending allocations by delivering the right product mix |
| Perion's strong and consistent cash flow from operations and our significant net cash position generated over $20 million in financial income in 2023 |
| In addition, our unrelenting emphasis on operational efficiency and profitability allowed us to achieve strong margin growth for both the full year and the fourth quarter |
| And I think, the beautiful thing with our system and with our technology is our ability to identify opportunities and based on that to improve our position and to improve margin and do what is good for our results, and this is what happened in the last two quarters |
| I'm pleased to report continued profitability for Q4 |
| We are very proud of Perion's ability to direct resources to high growth and high margin areas in 2023 |
| Impressively, Perion's results stand way above their growth projections demonstrating our ability to execute and conquer any channel and vertical we aim for |
| But currently, we think pushing the company forward and having a leadership position in the market will gain more market value for investors – more value for investors than buybacks |
| Perion achieved year-over-year revenue growth of 16% to $743 million and 28% growth in adjusted EBITDA, reaching $169 million with a 23% margin and an impressive 55% ex-TAC margin |
| We're also actively seeking inorganic opportunities that align with our vision, with a strong cash flow from operation of over $150 million a year and a total cash of over $470 million, Perion is well positioned to execute additional acquisitions |
| In Q4 2023, we achieved a robust top and bottom line growth |
| Our revenue and adjusted EBITDA reflect on our financial strength and our operational efficiency and market competitiveness |
| 2023 proved to be a meaningful year, demonstrating the agility and resilience of our business model at Perion |
| To conclude, our focus on diversified technologies that powers the consumer's journey and strategic acquisitions continues to drive Perion's impressive growth and success |
| The quarterly search revenue significantly increased by 33% year-over-year to $114.4 million, representing an impressive 41% two-year CAGR |
| That, along with our cost efficiency and tax optimization resulted in a year-over-year growth in GAAP net income of 18% to over $117 million and 40% year-over-year increase in non-GAAP net income to over $167 million |
| We were able to maintain this strong margin due to our product mix and the media buying optimization of our supply and demand assets |
| So we're very happy about the Q4 and the full year of 2023 results, we think we saw a tremendous growth |
| [Commercials] Tal Jacobson Our digital out-of-home platforms, advanced geofencing feature along with audience targeting, increased product awareness and store visits significantly |
| Our diversification strategy created opportunities that resulted in continued impressive growth |
| Among the top growth drivers in 2023, Retail Media stood out far exceeding our internal expectations with a year-over-year revenue increase of 114% to nearly $50 million |
| This is a testament to our effective strategy and execution in this rapidly growing space |
| CTV revenue also experienced strong growth of 56% year-over-year as more and more customers adapted our impact CTV solutions |
| It also presents exciting opportunities for our high impact display and creative solutions |
| While this partnership is not just about the numbers, the addition of over 46,000 digital screens is certainly impressive |
| While Perion is strong in the U.S., HiveStack is strong internationally |
| Statement |
|---|
| For the fourth quarter of 2023, the media margin was 39% and down from 42% in the same period last year, due to product mix change and our efforts to gain market share in a competitive environment |
| In the past, you've talked about how you're not relying on cookies, but how you actually think you could benefit when that happens in the industry? And then my second question, I think guidance is slightly weaker than we expected on an organic basis by 200 basis points or so |
| The quarterly decrease in display advertising revenue was primarily due to a 33% year-over-year decline in video revenue |
| For the fourth quarter, display advertising revenue decreased by 3% year-over-year to $119.8 million accounting for 51% of total revenue |
| And this is the main reason for the revenue decrease in video during the fourth quarter |
| And then based on what we got, we know if we want to show a video ad or display it, right? And now since Q3 that actually happened last quarter, we saw that video ad got lower rates than display ads |
| Insurance loans, Q4 was still low, travel was still up |
| And again, nothing more than that |
| On an annual basis, we can see the same downward trends |
| If the day winds down, our technology doesn't |
| Laura Martin And then, I guess my other one, just building on the guidance issue is, are you guys -- so it sounds like you're saying there's going to be a revenue mix shift in 2024 that's going to have lower margin |
| I would like to stress that the ongoing conflict in Israel has not materially impacted our operations and business results |
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