Perion Network: It Can't Be This Bad
Vince Martin • 15 Comments
Vince Martin • 15 Comments
Still Bullish On Perion - But Cautious
Wed, Aug. 3, 8:32 AM
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Tue, Mar. 15, 11:31 AM
- Perion (PERI -8.2%) is lower after beating Q4 estimates, guiding for Q1 revenue of $69M-$71M (up from $52.1M a year earlier), and guiding for 50%+ 2016 revenue growth. Consensus, which doesn't appear to fully account for Perion's $180M December acquisition of ad services firm Undertone, is for Q1 revenue of $53.2M and 31% revenue growth. 2016 EBITDA margin guidance is at 10%-12%.
- Top-line performance: Search revenue (toolbar-driven) fell 37% Y/Y in Q4 to $43.1M - Perion says it's trying to lower customer acquisition costs and focus on premium publishers. Ad/other revenue, boosted by the acquisitions of Undertone and social media ad platform MakeMeReach, rose 145% to $24.5M. Perion expects to get close to half its 2016 revenue from Undertone and MakeMeReach.
- Financials: Non-GAAP costs and expenses (excludes content acquisition and media buy costs) were $27.3M (42% of revenue) vs. $25.3M (32% of revenue) a year ago. Content acquisition/media buy costs rose by $1.7M to $30.8M. Thanks to the Undertone deal, Perion ended 2015 with $60M in cash, $99M in debt, and $49M in acquisition-related payment obligations.
- Perion's Q4 results, earnings release
Tue, Mar. 15, 8:26 AM
- Perion Network (NASDAQ:PERI): Q4 EPS of $0.10 beats by $0.03.
- Revenue of $65.34M (-17.0% Y/Y) beats by $5.84M.
- Shares +0.39% PM.
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Mon, Jan. 4, 12:40 PM
Dec. 31, 2015, 9:19 AM
- Perion (NASDAQ:PERI) has revised its Q4 guidance, in part to account for its $180M acquisition of digital brand ad service provider Undertone (closed on Nov. 30). The company now expects Q4 revenue of $64M-$66M (up from a prior $52M-$54M) and adjusted EBITDA of $9.5M-$10.5M (up from $6M-$7M).
- RPMs (ad prices) were slightly lower than expected in Q4, but Undertone performed slightly better than expected. Search-related revenue (pressured in recent quarters) was "stable," and Perion's mobile ad platform is said to have "continued to show nice growth."
- PERI +2.7% premarket to $3.80. Q1 guidance will be given with Perion's Q4 report.
- Update (11:51AM ET): After opening higher, Perion is now down 3%.
Dec. 15, 2015, 9:18 AM
Dec. 1, 2015, 10:41 AM
- Using proprietary ad formats, Undertone provides PC and mobile brand ad services for brands, ad agencies, and publishers. Perion (PERI +8.6%) has acquired the company for $130M in cash and the assumption of $50M in debt.
- Perion is paying $91M in cash up-front, $16M in 18 months, $3M in isntallments over the next 18 months, and $20M (bearing interest) in 2020. Undertone had revenue of $104M over the first 9 months of 2015, and expects 2015 revenue of $143M-$145M and adjusted EBITDA of $21M-$23M. The company gets 3/4 of its revenue from cross-screen and mobile ad solutions.
- Perion asserts the purchase "creates a differentiated independent ad tech platform with significant scale and profitability," adds "noteworthy" customer relationships, and broadens its ad product suite "with the addition of proprietary, high-impact creative formats." It follows last year's purchase of mobile ad management platform Grow Mobile, and the early-2015 acquisition of social media ad platform MakeMeReach.
- Earlier: Perion obtains $10M investment, $20M credit facility
Dec. 1, 2015, 10:17 AM
- An advisory client of JPMorgan has invested $10M in Perion (NASDAQ:PERI). In addition, the company has obtained a $20M credit facility from Israel's Bank Leumi.
- For reference, Perion currently has a $171M market cap (not counting the impact of the investment). The company ended Q3 with $129.4M in cash, and $38.2M in debt.
- Shares have jumped a day after closing just $0.16 above a 52-week low of $2.05.
Nov. 4, 2015, 1:09 PM
- Chardan's Marc Estigarribia has upgraded Perion (PERI +3.7%) to Buy a day after the search toolbar/mobile ad provider beat Q3 estimates and provided strong Q4 guidance. His target is $4.
- Estigarribia : “The Company executed on its revenue turnaround for its software monetization efforts and now looking to stabilize in cash flow." He adds Perion has $1.81/share in cash (compares with a current share price of $2.51), and sees its transition to a revenue-sharing business model (and away from a download-dependent model) finishing next quarter.