Perion Network (PERI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 39% year-over-year to $108.7M, with significant drops in search and open web video/display, but strong growth in Retail Media (+75%), CTV (+42%), and DOOH (+41%).

• Technology expansion included integration with YouTube CTV, onboarding major brands, and new product launches.

• Leadership changes: Maoz Sigron promoted to COO; Elad Tzubery appointed as CFO effective August 1, 2024.

• Industry recognition with awards for sustainability, excellence, and IAB Tech Lab certification.

Financial highlights

• Q2 2024 revenue was $108.7M, down from $178.5M in Q2 2023; Advertising Solutions revenue fell 25% YoY, Search Advertising revenue dropped 57% YoY.

• Adjusted EBITDA was $7.7M (7% margin), down 81% YoY; GAAP net loss was $6.2M; non-GAAP net income was $13.4M, down 68% YoY.

• Operating cash flow was -$20.5M, impacted by a $17.6M Microsoft collection delay and a $9.6M Vidazoo earn-out payment.

• Net cash position at quarter-end was $407.1M, down from $479.7M in Q1 and $472.7M at year-end 2023.

• Adjusted free cash flow was -$11.4M for Q2 2024.

Outlook and guidance

• Full-year 2024 guidance reiterated: revenue of $490–$510M and adjusted EBITDA of $48–$52M, with adjusted EBITDA to contribution ex-TAC at 23% midpoint.

• H2 free cash flow expected to align with EBITDA guidance of $50M.

• Anticipates Microsoft Bing revenue to represent about 5% of total revenue in H2 2024.

• Continued focus on profitable, technology-driven M&A and operational efficiency.