Perion Network Ltd · NASDAQ:PERI
Perion Network — Investor Presentation (December 2021)
38 slides from Perion Network's investor presentation, December 2021
Slide 1: Investors Presentation – December 2021
Investors Presentation – December 2021 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation and our remarks contain forward-looking statements (within the meaning of The Private Securities Litigation Reform Act of 1995) that involve substantial risks and uncertainties, including statements regarding our expectations and beliefs about our busines
Slide 3: Introduction
introduction Doron Gerstel Maoz Sigron CEO CFO 3
Slide 4: Accelerating the momentum
Accelerating the momentum 2020-2022: past, present and future 4
Slide 5: Half a trillion Dollar digital Ad spend by 2022
Half a trillion Dollar digital Ad spend by 2022 "...if you want to sell, you have to spend. It's as simple as that.” $645.8B Tom Bueller • A unique cocktail of a well-funded consumer, inflation, and the power of digital advertising $586.0B leads to unprecedented growth outlook. $524.3B • Continuous
Slide 6: Q3-2021 – All-time record revenues
Q3-2021 – All-time record revenues $600M** • We continually demonstrate our precise market-fit in the half a Trillion-dollar digital 42% YoY advertising marketplace 45% GROWTH $465M** • Unique recipe of high-impact ad units and YoY GROWTH cross- platform performance, including CTV $121M – driven by
Slide 7: Impressive growth in display advertising
Impressive growth in display advertising • Brand equity is elevated when it is associated with more creative messaging 106% than ordinary standard formats YoY GROWTH $165M • Advertisers looking for ease of a one-stop shop/cross screen provider • Video and CTV revenue grew by 245% YoY • Average deal
Slide 8: Sustained growth in search advertising
Sustained growth in search advertising • performance advertisers’ allocating more budget towards search advertising, where consumer show highest intent 20% signal YoY GROWTH $155M* • Renewal of 4 years (2021-2024) strategic $51.8M agreement with Microsoft drives publishers for long term commitment $
Slide 9: Adj. EBITDA - doubled YoY
Adj. EBITDA - doubled YoY * $82.0M** • Successful implementation of hub and spoke 97% • Scale and costs leverage YoY GROWTH $64.5M** • Improved budget control • Enhanced process automation 101% YoY GROWTH $17.6M $32.8M $8.75M 2020-2022 CAGR 58% 2021 Q3 -2020 Q3 2021 2020 2021 2022 * Adjusted EBITDA
Slide 10: Improved & Strong Balance Sheet
Improved & Strong BALANCE SHEET $292M Total Net Cash Including Follow-on $92M Proceeds $0 Debt Q1-21 Q2-21 Q3-21 Q1-16 Operating Cash Flow of $14.2M in Q3-21 -$43M Net cash is calculated as cash and cash equivalents + short term bank deposit – short- and long-term loans – convertible debts 10
Slide 11: Perion Growth and Value Creation
Perion Growth and Value Creation pHUB Model Connect our portfolio of business through Unique Intelligent central Hub Perion participates in both demand and supply sides Innovation that enhances the value of of the Open Web. Innovation advertising and publishers assets creating lucrative growth oppor
Slide 12: pHub Model: Connecting all assets to a central Intelligent HUB
pHub Model Connecting all assets to a central Intelligent HUB DEMAND SUPPLY High O&O brand Impact Sites social Perion Product DSPs agency ads HUB D2S Operated pub's Sites END TO END 12
Slide 13: pHub Model: iHUB Daily Scale
pHub Model DEMAND SUPPLY iHUB Daily Scale iHub 200K daily Sessions 17M high- owned & brand daily social searches impact operated sites Product Periont 25K HUB DSPs agency ads websites D2S operated pub's sites 750M Video Daily Video 3Bn opportunities daily ad requests 2M Daily engagements with ads EN
Slide 14: Hub Model: iHUB values drivers
Hub Model iHUB values drivers reduced reduced increased operational TAC Customer cost Value Shared resources Cross open web data closing the loop central Ad server layer provides greater optimization capability 14
Slide 15: Perion Growth and Value Creation
Perion Growth and Value Creation Perion participates in both demand and supply sides Innovation that enhances the value of of the Open Web. Innovation advertising and publishers assets creating lucrative growth opportunities for advertisers and publishers Execution 15
Slide 16: Innovation: privacy-first cookieless targeting
innovation privacy – first cookieless targeting +77%* +21.5%* CTR IR “ a scalable, cookieless targeting solution, on par with or better than third-party cookie-based targeting options.” Timur Yarnall CEO and Co-Founder of Neutronian * Based on case studies performed by the company 16
Slide 17: Innovation: machine learning and optimization
innovation machine learning and optimization Always ON - 24/7 machine learning 2 always responds to car ads contextual information always responds to travel ads external user signals signals always responds to insurance ads Live Campaign optimization unlikely to watch video UP TO unlikely to 30% int
Slide 18: Innovation: Connected Cart – Awareness to Performance
innovation “Connected Cart” – Awareness to Performance $3.7 M of Retail Division Revenue Expected in 2021 * * * 2021 retail division revenue is a forward-looking estimate, and actual results could vary materially. For a discussion of some of the factors that could cause these variations, please see
Slide 19: Innovation: high impact Live CTV
innovation high impact Live CTV “…we were looking for something new and exciting. With Perion Live CTV, our ads are integrated into the game broadcast, making them nearly unmissable!” OLIVIA SUTHERLAND Senior TV Growth Marketing DraftKings 130% YoY Growth in LIVE CTV CTV Revenue in Q3 2021 19
Slide 20: Innovation: High Impact Interactive CTV - iCTV
innovation HIGH IMPACT Interactive CTV - iCTV MORE Interactive video ads are 32% more MEMORABLE memorable even when the viewer doesn’t engage MORE TIME Interactivity drives 47% more time SPENT spent with ads than standard video MORE 40% lift in iCTV Engagement rates ENGAGEMENT Source:, emarketer
Slide 21: Innovation: Cross-screen synchronization
innovation Cross- screen synchronization $103K 30% YoY Average Deal Size in Q3 2021 21
Slide 22: Innovation: Search Mediation platform
innovation Transactional 150% Search Search Mediation platform 140% 130% 120% 110% 100% 90% contextual match of channel chosen search results to text according to best chances of action 80% 70% 1 2 Display to Search convince 22
Slide 23: Perion Growth and Value Creation
Perion Growth and Value Creation Perion participates in both demand and supply sides of the Open Web. creating lucrative growth opportunities for advertisers and publishers Execution Disciplined Execution. 23
Slide 24: Execution: Non-GAAP SG&A % to Revenue continues to decrease
Execution Non-Gaap SG&A % to Revenue continues to decrease • Improved budget control 26% • Enhanced process automation $465M* • Renegotiated commercial terms 21% 18% $328M $274M $253M $261M 15% 13%** Revenue SG&A $73M $53M $47M $49M $61M % to revenue 2017 2018 2019 2020 2021 * 2021 revenue and SG&A
Slide 25: Execution: Strategic Partnership with Microsoft
Execution 10+ years Strategic Partnership with Microsoft Renewed & expanded 4 year agreement improved revenue share 2021-2024 + from 6 to 34 countries new products 25
Slide 26: Execution: Enhanced Video-Suite offering with H/I
Execution Enhanced Video-Suite offering with An END to END offering for advertisers and publishers eliminating all existing intermediaries H/I Accretive from day 1 video Prudent M&A model – 1/3 cash, suite 2/3 earnout 26
Slide 27: Execution: Vidazoo Rapid Growth
Execution Vidazoo Rapid Growth expected 2020 2021 $45M 41% Revenue $31.9M growth EARNOUT YoY CASH $58.5M $35M UPON ACHIEVING $32.4M $8M 86% adjusted EBITDA $4.3M growth EBITDA YoY by end of 2023 27
Slide 28: 3D diversified business model
3D diversified business model Geographic Spread Cross-Channel While we are We comfortably operate predominantly NA across the three main focused, we are pillars of digital expanding into other advertising – ad search, geographies social media, and display/video/CTV Demand & Supply We operate on both
Slide 29: Targeting revenues of $1B by 2025
targeting revenues of $1B by 2025 $1B Targeting to grow faster than the market, reaching $1B in revenues by 2025. Raised funds to support our organic and inorganic growth. $600M* $465M* 2020 - 2025 CAGR $328M 25% 2020 2021 2022 2025 * 2021, 2022 and 2024 revenue are forward-looking estimate, and act
Slide 30: Revised Guidance 2021-2022
Revised Guidance* 2021-2022 ($M) 2021 YoY 2022 YoY CAGR Guidance Growth%** Guidance Growth%** 2020-2022 Revenue $460-$470 42% $590-$610 29% 35% Adjusted $64-$65 97% $80-$84 27% 58% EBITDA EBITDA to REV Ex- 35%*** 35%*** TAC * Company’s guidance is a forward-looking estimate, and actual results could
Slide 31: Peer Group Comparison
Peer Group Comparison * ** *** Average CAGR (2020-2022) 35% 24% 29% 32% 24% 20% 17% 20% 17% 32% EBITDA to Rev Ex TAC 35% 31% 38% 33% 33% 16% 36% 36% 36% 34% Multiples EV/Rev Ex TAC 2.7 7.8 27.3 5.0 5.8 1.2 3.0 1.8 3.5 10.3 10.5 22.6 72.2 15.2 17.7 7.6 8.2 4.9 6.8 10.5 EV/EBITDA * Perion CAGR is a fo
Slide 32: Thank you
thank you 32
Slide 33: Appendix
appendix 33
Slide 34: Balance Sheet GAAP Basis Overview ($M)
Balance Sheet GAAP Basis Overview ($M) 34
Slide 35: Income Statement GAAP Basis ($M)
Income Statement GAAP Basis ($M) 35
Slide 36: Cash Flow GAAP Basis Overview ($M)
Cash Flow GAAP Basis Overview ($M) 36
Slide 37: Non-GAAP Adjustments ($M)
Non-GAAP Adjustments ($M) * Adjusted EBITDA is defined as operating income excluding stock-based compensation expenses, depreciation, restructuring costs, acquisition related items consisting of amortization of intangible assets and goodwill and intangible asset impairments, acquisition related expe
Slide 38: P&L Non-GAAP ($M)
P&L Non-GAAP ($M) * P&L is defined as profit and loss. ** EBIT is defined as earning before income and tax. 38
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