Still Bullish On Perion - But Cautious
Perion Networks: Cheap And Poised For A Rebound
Perion Networks - A Sinking Ship, An Immediate Short Opportunity With A 40% Downside
Athena Research • 20 Comments
Athena Research • 20 Comments
The 'New' Perion - What Does The Future Hold For It?
Top Alpha • 11 Comments
Top Alpha • 11 Comments
Today, 9:17 AM
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
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, 10:17 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.
Nov. 3, 2015, 12:00 PM
- In addition to beating Q3 estimates, Perion (NASDAQ:PERI) is guiding for Q4 revenue of $52M-$54M, above a $49M consensus. Net income is expected to total $4M-$5M, down from Q3's $6.7M.
- Search revenue, pressured by Google toolbar policy changes and Perion's efforts to reduce customer acquisition costs, fell 38% Y/Y in Q3 to $45.5M. However, it managed to rise 12% Q/Q. Ad/other revenue fell 8% Q/Q and 45% Y/Y to $7.1M.
- A $74.1M goodwill impairment charge was taken. Non-GAAP costs/expenses (doesn't include the charge) fell 25% Y/Y to $18.1M. Perion ended Q3 with $129.4M in cash, and $38.2M in debt.
- Q3 results, PR
Nov. 3, 2015, 9:14 AM
Aug. 24, 2015, 4:29 PM
- The Nasdaq opened down 7.5%, furiously rallied almost to breakeven, and then sold off again in the afternoon to close down 3.8%. Some tech stocks managed to rise nonetheless, while many others posted 5%+ declines.
- Major decliners included Citrix (CTXS -9.3%), Solera (SLH -8.9%), NCR (NCR -7.8%), Nuance (NUAN -6.9%), Infinera (INFN -6.4%), HomeAway (AWAY -6.6%), MagnaChip (MX -6.4%), Yandex (YNDX -7.5%), Neustar (NSR -6%), Ebix (EBIX -7.3%), SGI (SGI -8%), Monster (MWW -7.5%), Silver Spring (SSNI -6.6%), Perion (PERI -11%), and Synchronoss (SNCR -7.5%).
- Solera's decline comes 4 days after the company confirmed it's exploring strategic alternatives, and 5 days after Bloomberg reported a sale is being explored. Yandex has been hit hard in recent weeks by the ruble and crude oil's decline. Infinera is down 20% over the last 3 trading days, albeit still up 34% YTD.
- See also: Morning decliners, Chinese tech stocks, large-cap decliners
Aug. 3, 2015, 9:18 AM
Aug. 3, 2015, 9:15 AM
- Perion (NASDAQ:PERI) has jumped to $2.83 premarket after beating Q2 estimates and guiding for Q3 revenue of $45M-$48M, down from $87.4M a year ago but above a $44.3M consensus.
- Net income is expected to drop to $5M-$6M in Q3 from Q2's $9.5M. The EPS consensus is at $0.10 vs. a reported Q2 level of $0.13.
- Search revenue (hit by Google search toolbar policy changes) fell 56% Y/Y in Q2 to $40.8M, and ad/other revenue fell 54% to $7.8M. Helping offset: GAAP costs/expenses fell 54% to $39.7M after backing out a one-time gain, with customer acquisition costs dropping 65% to $19.5M.
- Perion ended Q2 with 165 active advertisers and $35M worth of managed ad spend (+15% Q/Q). With shares down over 80% from their 2013 highs going into earnings, expectations were low.
- Q2 results, PR
Apr. 1, 2015, 3:14 PM
- With the Nasdaq down 0.8%, only a handful of tech companies are posting big gains. Notable gainers include search toolbar/mobile ad provider Perion (PERI +4.2%) , low-end Android OEM InfoSonics (IFON +7.1%), and Chinese mobile app developer Sungy Mobile (GOMO +8.2%).
- Notable decliners include local reviews leader Yelp (YELP -4.6%), cloud IT service management software vendor ServiceNow (NOW -4.5%), cloud talent management software vendor Cornerstone OnDemand (CSOD -4%), enterprise cloud storage/file-sharing platform Box (BOX -5.5%), software analytics tool provider New Relic (NEWR -5.9%), online family care marketplace marketplace Care.com (CRCM -5%), and e-commerce software provider Demandware (DWRE -4.9%).
- Perion announced this morning it has added Mike Vorhaus, president of consulting firm Magid Advisors, to its board. ServiceNow has announced its Q1 report will arrive on April 16. Yelp, which has been volatile in recent weeks, is now just slightly over $3 above a 52-week low of $42.10. Care.com is less than $1 away from a post-IPO low of $6.50.
- Previously covered: Solar stocks, cybersecurity stocks, Axcelis, GoDaddy, ON Semi, Voltari
Mar. 24, 2015, 3:18 PM
- Today's notable tech gainers include chip packaging/testing firm ChipMOS (IMOS +3.7%), and headphone maker Skullcandy (SKUL +3.9%), mobile banking tech provider Mitek (MITK +6.5%), search toolbar/mobile ad platform provider Perion (PERI +8.8%), Chinese social network/game provider Renren (RENN +4.8%), peripherals giant Logitech (LOGI +4%), security IP licensing firm Finjan (FNJN +13.7%).
- Notable decliners include e-commerce services firm ChannelAdvisor (ECOM -5.6%), program guide/content protection IP firm Rovi (ROVI -4.3%), telecom equipment vendor Calix (CALX -3.5%), and Fibre Channel/Ehternet switch vendor Brocade (BRCD -3.4%).
- Likely helping Finjan: An H.C. Wainwright note stating the company has committed $5M to a Jerusalem Venture Partners (JVP) cybersecurity fund; Alibaba announced yesterday it's investing in JVP. Logitech announced a $100 wireless mouse today. Skullcandy is once more within striking distance of a 52-week high of $11.83.
- Previously covered: Twitter, solar stocks, Sonus/AudioCodes/BroadSoft, Neonode, Arista, Taser, Ciena, Zagg, Gogo, Digital Ally
Feb. 25, 2015, 12:02 PM
- Though it beat Q4 estimates, Perion (PERI -2.9%) is guiding for Q1 revenue of $50M-$53M, below a $69.7M consensus. Net income is expected to be in a range of $9M-$11M.
- The company notes it plans to report "more of its revenue on a net revenue basis to reflect a shift in its business model both in search and mobile," so as to comply with GAAP rules, and that this shift will have a $7M-$10M impact on reported Q1 sales. Backing out that change brings sales guidance to $57M-$63M (still below consensus).
- Perion adds its search monetization (toolbar) business "still faces headwinds." The company is more positive about GrowMobile's mobile ad platform, and declares it's "dedicating resources to organically enhance our monetization portfolio to include other forms of advertising and to expand into mobile."
- Customer acquisition costs were 37% of revenue, up from Q3's 34% but down from 63% a year ago. On the other hand, costs/expenses rose to 32% of revenue from 25% a year ago. Search revenue fell 4% Y/Y to $68.1M, and ad/other revenue 23% to $9.9M.
- Shares started the day sharply lower, but have since pared their losses. A lot of bad news has been priced in already.
- Q4 results, PR
Feb. 25, 2015, 9:24 AM
Perion Network Ltd. engages in the provision of digital media business. It is involved in the development of search-based monetization solution for publishers to track and monitor their business performance. The company was founded by Ofer Adler and Yaron Adler November 1999 and is headquartered... More
Industry: Business Software & Services
Country: United States
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