Perion Network Ltd · NASDAQ:PERI
Perion Network — Investor Day (March 2021)
55 slides from Perion Network's investor day presentation, Mar 8, 2021
Slide 1: Investor Day Presentation | March 8, 2021
1 Investor Day Presentation | March 8, 2021
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: Welcome
Welcome
Slide 4: Doron Gerstel
Doron Gerstel CEO & Director, Perion Over 20 years of extensive CEO level experience in the international hi-tech industry. Proven track record of management expertise, strategic planning, and business development. Catamaran Sailor 4
Slide 5: Agenda
Agenda 10:00 am Welcome and Introduction 10:10 am The Last Three Years… Doron Gerstel, CEO, Maoz Sigron, CFO 10:25 am Powering Growth Use Cases Intelligent High Impact display advertising – iCTV Solution Content Monetization System for Publishers Intent Monetization System Social Actionable Performa
Slide 6: The Last Years Set the Stage for Growth
The Last 3 Years Set the Stage for Growth 6
Slide 7: Financial Strategy - Diversification
Financial Strategy - Diversification Perion capitalizes on any shift in advertisers’ budget allocation between the three main pillars of digital advertising 7
Slide 8: Google 3rd party cookies announcement validates diversification strategy
Google 3rd party cookies announcement Validates Perion’s diversification strategy • Chrome joins FireFox and Safari in preventing advertisers from tracking users via 3rd party cookies 26% Display • Implications on re-targeting campaigns and additional Campaigns information required to enrich user pr
Slide 9: 2020 Momentum continues
2020 Momentum continues Key growth drivers ● Microsoft Bing partnership ● Accretive, synergistic acquisitions of Content IQ and PubOcean ● Intelligent High Impact Ad unit and iCTV adoption 9
Slide 10: Maoz Sigron
Maoz Sigron CFO, Perion An experienced finance executive with more than 10 years of experience working at NASDAQ-listed companies (Stratasys, Allot). Off-road cycling 10
Slide 11: OPEX % to Revenue reduced by 10% over four years
OPEX % to Revenue reduced by 10% over the last four years... …while revenue increased by 20%! Revenue OPEX % to Revenue *NON-GAAP figures. 11
Slide 12: SG&A % to Revenue was reduced by 11% in four years
SG&A % to Revenue was reduced by 11% in four years… …as a result of our consistent efforts to: 1. Improve Budget control 2. Enhance Process automation 3. Renegotiate commercial terms Revenue SG&A % to Revenue *NON-GAAP figures. 12
Slide 13: R&D increased to 8% of Revenue in four years
R&D increased to 8% from Revenue in four years... …we will continue to invest in technology, which is a significant part of our differentiation from competition. Revenue R&D % to Revenue *NON-GAAP figures. 13
Slide 14: Strong Balance Sheet, Enables Future Growth
Strong Balance Sheet, Enables Future Growth 14
Slide 15: Growth Use Cases
Growth Use Cases e @ e @ qe % . Perion
Slide 16: Intelligent High-impact Display Advertising
Intelligent High-impact Display Advertising Memorable ad experiences by orchestrating solutions across video, advanced TV, rich media, and social. Heading
Slide 17: Dan Aks
Dan Aks President, Undertone Media operating executive with experience in educational media, digital platforms, linear TV, music, and magazines. Former partner in a large consulting firm, specializing in media strategy and operations efficiency. Avid global museum visitor 17
Slide 18: CTV Consumption is Driving Ad Dollars
CTV Consumption is Driving Ad Dollars, with Wide and Growing Viewership More than 80% of the US is using Connected TV - that’s over 206M users. 4 out of 5 of them are watching ad- supported content, and all, on average, are watching 81% more content on CTV How are brands going to stand out and make
Slide 19: iCTV - Memorable Ads. Unforgettable Results.
iCTV - Memorable Ads. Unforgettable Results. Undertone Closes the Creative Gap to Generate Growth Through INTELLIGENT HIGH IMPACT Interactive CTV - iCTV EARLY MOVER IN INTERACTIVE DIFFERENTIATED CTV LANDSCAPE CAPABILITIES STRONG CREATIVE PERFORMANCE MORE Interactive video ads are 32% more MEMORABLE
Slide 20: Bob Deininger
Bob Deininger VP Digital Media & Analytics, NorBella 20
Slide 21: NorBella Interview
NORBELLA INTERVIEW
Slide 22: Content Monetization System
Content Monetization System Understand and optimize digital content performance across millions of engagement moments Heading
Slide 23: Ziv Yirmiyahu
Ziv Yirmiyahu Co-Founder, Content IQ Co-founded Content IQ in 2014 to be acquired by Perion Network in January 2020. Ziv leads the technology direction of Perion’s Publisher Solution Business Unit as well as its finance strategy. Avid soccer and squash player 23
Slide 24: Decline in Organic Traffic to Publishers Properties
Decline in Organic Traffic to Publishers Properties Digital publishing revenue growth The big players like Google and in the United States from 2018 to 2025 Facebook have radically disrupted the digital media landscape and quarter after quarter, year after year, they continue to grow. So what does t
Slide 25: Dev Pragad
Dev Pragad CEO, Newsweek Perion
Slide 26: Newsweek Interview
NEWSWEEK INTERVIEW
Slide 27: Asaf Katzir
Asaf Katzir Co-Founder, Content IQ Co-founded Content IQ in 2014. Under his leadership the company has grown from a small startup to a successful business. Superheroes miniatures collector 27
Slide 28: Content Monetization System
Content Monetization System Distribution Websites & Engine Infrastructure Maximizing value per session Revenue Content Engine Engine 28
Slide 29: Intent Monetization System
Intent Monetization System Leveraging High-Intent to Monetize Digital Properties Heading
Slide 30: Tal Jacobson
Tal Jacobson General Manager, CodeFuel An executive in the Israeli high-tech industry for over 20 years. He was the Chief Revenue & Business Development Officer at SimilarWeb. Tal also held leadership positions as the VP of Business at McCann Erickson and was part of the Business Development team at
Slide 31: Search Ad Spending - Key Growth Drivers
Search Ad Spending - Key Growth Drivers ● eCommerce tipping point ● “Search before you buy” consumer behavior ● A huge growth in online retailers hunting via ad search 31
Slide 32: Search Advertising Revenues
Search Advertising Revenues • New agreement with Bing at better terms daily number • Collaboration with additional leading search of searches (M) providers • New product introductions • Secular trend of ecommerce growth 32
Slide 33: Search Mediation for Publishers & Media Traders
Search Mediation for Publishers & Media Traders Search demand Providers AI/ML contextual match of search results to text Intent-based yield optimization 1 2 Capture Convince 33
Slide 34: Partnering with Leading Providers
Partnering with Leading Providers 34
Slide 35: Mike Wyner
Mike Wyner Founder & CEO, Barking Ad Media 35
Slide 36: Barking Ad Media Interview
BARKING AD MEDIA INTERVIEW
Slide 37: Pargone.ai - Social APM Platform
Pargone.ai - Social APM Platform Actionable Performance Monitoring (APM) Breakthrough management & prediction SaaS technology for performance marketing
Slide 38: Shay Alfandary
Shay Alfandary General Manager, Paragone.ai Seasoned enterprise SaaS executive with over 20 years of experience in bringing products to market and developing new sources of revenue. An aspiring Tennis Player 38
Slide 39: Why Do CMOs Increase Social Spend?
Why Do CMOs Increase Social Spend? World Social $248B Ad Spend ● Consumers move indoors and online ● Proliferation of Social Channels $85B ● Superior Targeting Capabilities 2020 2027 78% of B2C CMOs are shifting more budgets to social this year 39
Slide 40: $208,000 ARR
● $15M social ad spend a year ● Run ~100 campaigns concurrently ● Across 8 countries $208,000 ARR ● Channels - Facebook, Instagram, Snapchat, Pinterest It’s impossible to optimize our social spend when I am running 100 campaigns manually. It requires 70,000* manual decisions a year! * 100 Campaigns
Slide 41: Actionable Performance Monitoring Across Channels In Real Time
Actionable Performance Monitoring (APM) Across Channels In Real Time An engine to ingests and harmonizes cross-channel campaign data in real- time, at scale MONITOR A rule engine to automate Trained AI model for workflows, naming ACT PREDICT predicting performance of conventions, and promoting socia
Slide 42: Top Performing Marketers Already Use Paragone.AI
Top Performing Marketers Already Use Paragone.AI AWARD WINNING PLATFORM - G2 42
Slide 43: Jorge Irizar
Jorge Irizar Global COO, Havas Media 43
Slide 44: Havas Media Interview
HAVAS MEDIA INTERVIEW
Slide 45: The Next 3 Years…
The Next 3 Years… 45
Slide 46: Joy Marcus
Joy Marcus Board Director, Perion 46
Slide 47: Joy Marcus is a Board Director at Perion
• Joy Marcus is a Board Director at Perion and Chairman of the Compensation Committee. She is also a full time Lecturer at Princeton University, Venture Fellow at Jerusalem Venture Partners, and the founder of the venture group, Brilliant Friends, which invests in women led late seed and early A-rou
Slide 48: Perion in Numbers
Perion in Numbers* 40% (167) 60% (250) 48
Slide 49: Company programs & efforts
Company programs & efforts • Flexible work • Extensive maternity and parental leave • Wellness programs • “She codes” – increase # of women in tech roles • WomenLead- empowerment to Perion women 49
Slide 50: Consumer behavior drives advertising spend
Consumer behavior drives advertising spent Trend Result More time on social social media advertising spend $340B Growth of OTT display advertising spend $542B 2020 More online search 2024 shopping advertising spend 50
Slide 51: How it all Fits Together: Perion Hub & Spoke System
How it all Fits Together Perion Hub & Spoke System 80 Intelligent Owned & high impact Operated brand sites intelligent social product Pub HUB demand supply ads Network agency minisites publisher D2S demand supply assets assets walled garden 51 Perion Publisher Audience Graph
Slide 52: Trend-Driven Acquisition Strategy
Trend-Driven Acquisition Strategy Acquisition Targets: • Dynamic creative optimization (DCO) - enrich intelligent high impact with personalization layers • Search privacy - enhance search privacy through blockchain technology • Dynamic Ad Insertion (DAI) for OTT - to enrich our iCTV offering Acquisi
Slide 53: Looking Ahead: 3-year growth plan 2021-2023
Looking Ahead 3-year growth plan 2021-2023 53
Slide 54: Q&A and Closing Remarks
Q&A and Closing Remarks Perion Perion
Slide 55: Thank you
thank you