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• Full Year Revenue: $498.3 million, a 33% decrease year over year.

• Adjusted EBITDA: $50.9 million, with a 10% adjusted EBITDA margin and a 24% ex-TAC margin.

• GAAP Net Income: $12.6 million for the full year.

• Non-GAAP Net Income: $64 million for the full year.

• Operating Cash Flow: $6.9 million generated during 2024.

• Adjusted Free Cash Flow: $16.6 million for the full year.

• Net Cash: $373.3 million as of December 31, 2024.

• Q4 Revenue: $129.6 million, compared to $234.2 million in the same period last year.

• Q4 Adjusted EBITDA: $15.5 million, with a 12% adjusted EBITDA margin and a 28% ex-TAC margin.

• Q4 GAAP Net Income: $4.9 million.

• Q4 Non-GAAP Net Income: $16.1 million, with a non-GAAP diluted EPS of $0.33.

• Advertising Solutions Revenue: $104.1 million in Q4, down 13% year over year.

• Digital Out-of-Home Growth: 50% year over year for the full year, 57% in Q4.

• CTV Growth: 30% year over year for the full year, 10% in Q4.

• Retail Media Growth: 62% year over year for the full year, 34% in Q4.

• Search Advertising Revenue: $25.5 million in Q4, representing 20% of total revenue.

• Share Repurchase: 5.2 million shares repurchased for $46.9 million as of December 31, 2024.

• Warning! GuruFocus has detected 5 Warning Signs with PERI.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Perion Network Ltd (NASDAQ:PERI) introduced the Perion One strategy, unifying all technologies and business units under one platform to enhance efficiency and customer attraction.

• The company reported strong growth in its core growth engines: digital out-of-home grew by 50% year over year, CTV solutions grew by 30%, and retail media grew by 62%, all outpacing market growth.

• Perion Network Ltd (NASDAQ:PERI) strengthened its leadership team with experienced executives from Google, Criteo, and Samsung Ads, expected to expand reach and unlock new growth opportunities.

• Despite a challenging year, the company ended 2024 with positive operating cash flow and met its revised guidance for revenue, adjusted EBITDA, and adjusted EBITDA to contribution ex-TAC margin.

• The company has a strong balance sheet with $373.3 million in cash, cash equivalents, short-term bank deposits, and marketable securities, supporting its capital allocation priorities and growth plans.

Negative Points

• Perion Network Ltd (NASDAQ:PERI) experienced a 33% decrease in full-year revenue, primarily due to a decline in search revenue and weakness in Open Web video and standard ad formats.

• The company did not renew its contract with Microsoft Bing, which ended on December 31, 2024, impacting search advertising revenue.

• Adjusted EBITDA for the full year was significantly lower at $50.9 million compared to $169.1 million in 2023, reflecting a decrease in profitability.

• The company is undergoing headcount reductions as part of its operational streamlining efforts, which may impact employee morale and productivity.

• Perion Network Ltd (NASDAQ:PERI) provided a lower revenue guidance for 2025, expecting $400 million to $420 million, reflecting a cautious outlook amid ongoing market challenges.