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Investor Presentation Q2 2025 August 11, 2025
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2 Forward Looking Statements This presentation contains historical information and forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words “will,” “believe,” “expect,” “intend,” “plan,” “should,” “estimate” and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks and uncertainties. All statements other than statements of historical fact included in this presentation are forward-looking statements. Many factors could cause the actual results, performance or achievements of Perion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, but not limited to, political, economic and other developments (including the current war between Israel and Hamas and other armed groups in the region), the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance, the risk that such transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, and general risks associated with the business of Perion including, the transformation in our strategy, intended to unify our business units under the Perion brand (Perion One), intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions (including the fluctuation of our share price), loss of key customers or of other partners that are material to our business, the outcome of any pending or future proceedings against Perion, data breaches, cyber-attacks and other similar incidents, unpredictable sales cycles, competitive pressures, market acceptance of new products and of the Perion One strategy, changes in applicable laws and regulations as well as industry self-regulation, negative or unexpected tax consequences, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this presentation. We urge you to consider those factors, together with the other risks and uncertainties described in our most recent Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (SEC) on March 25, 2025, and our other reports filed with the SEC, in evaluating our forward-looking statements and other risks and uncertainties that may affect Perion and its results of operations. Perion does not assume any obligation to update these forward-looking statements. Investors should read this presentation together with our respective quarterly press release furnished to the SEC. Non-GAAP Measures Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude certain items. This presentation includes certain non-GAAP measures, including Contribution ex-TAC and Adjusted EBITDA. Contribution ex-TAC presents revenue reduced by traffic acquisition costs and media buy, reflecting a portion of our revenue that must be directly passed to publishers or advertisers and presents our revenue excluding such items. We believe Contribution ex-TAC is a useful measure in assessing the performance of the Company because it facilitates a consistent comparison against our core business without considering the impact of traffic acquisition costs and media buy related to revenue reported on a gross basis. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is defined as income from operations excluding stock-based compensation expenses, restructuring costs, unusual legal costs, depreciation, amortization of acquired intangible assets, retention and other acquisition-related expenses, as well as gains and losses recognized with respect to changes in fair value of contingent consideration. Adjusted free cash flow is defined as net cash provided by (or used in) operating activities less cash used for the purchase of property and equipment, but excluding the purchase of property and equipment related to our new corporate headquarter office and the portion of the cash payment of contingent consideration in excess of the acquisition date fair value, as we do not view either of those expenses as reflective of our normal on-going expenses. It is important to note that these expenses are in fact cash expenditures. Non-GAAP net income and non-GAAP diluted earnings per share are defined as net income (loss) and net earnings (loss) per share excluding stock-based compensation expenses, restructuring costs, unusual legal costs, retention and other acquisition-related expenses, amortization of acquired intangible assets and the related taxes thereon, foreign exchange gains and losses associated with ASC-842, as well as gains and losses recognized with respect to changes in fair value of contingent consideration. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required for such presentation without unreasonable effort. Consequently, no reconciliation of the forward-looking non-GAAP financial measures is included in this presentation. A reconciliation between results on a GAAP and non-GAAP basis is provided in the appendix attached to this presentation. .
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Today’s Call Tal Jacobson Chief Executive Officer ● Opening Remarks ● Business Update ● Q2 2025 Financial Results ● Q&A ● Closing Remarks Elad Tzubery Chief Financial Officer
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Each C-Suite Executive Has a Platform to Drive Results CMOCRO COO CTO
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FY 2025 Activating the Platform Vision Launched Perion One strategy, unifying all technologies and brands under a single platform vision Executed leadership reorganization to align with platform strategy and operational excellence Acquired AI-first company - Greenbids, to automate optimization & improve walled garden performance Began sales & go-to-market transformation, focusing on vertical solutions & enterprise client growth FY 2026/27 Scaling Platform, Intelligence & Impact Perion One orchestrates planning, activation, & measurement across all major digital channels Transition to platform-led company, increasing share of recurring, high-margin revenue streams Expanded AI-powered insights, self-service tools, & creative automation to improve speed and efficiency Deepen global adoption across brands, agencies and retailers, unlocking long-term growth and margin leverage FY 2024 Laying the Foundation for Platform-Led Growth Acquired Hivestack to enter the fast-growing DOOH market & establish its platform as the backbone of Perion One Launched full-scale planning & integration efforts across business lines Appointed key global executives to lead platform strategy Our Path Forward Executing Our Transformation Plan
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Across product, partnerships & performance Progress in Multiple Dimensions
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Q2 Business Highlights Product Progress ● Performance CTV solution launched to Capture Share in $36B+ High-Growth Streaming Ad Market ● Greenbids tech and business integrations fully on track. Synergies are showing good signs as we already winning custom algo deals from Perion existing customers Industry Recognition & Awards ● Combb Award Canadian OOH ● La Nuit des Rois Awards Advancing our TAM & Global Reach ● Strategic partnerships in Korea to expand programmatic DOOH footprint in APAC, Expanding our reach in a $21B APAC DOOH market ● Expanding EMEA DOOH reach and growth through strategic partnerships in Europe Business Performance ● YoY increase in Advertising Solutions revenue ● Retail Media and DOOH shows continued momentum ● Web - back to growth ● Strong Cash flow from operations
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Perion One - Performance CTV Engineered to Drive Outcomes in a $36B+ Streaming Market AI-Powered CTV Platform with Measurable Results Real-time optimization and attribution tied to business KPIs–site visits, leads, conversions. Unlocking Mid-Market Opportunity Serving brands and agencies historically underserved by performance CTV platforms. Foundation for Perion One Cross-Channel Growth Accelerates unified monetization across DOOH, Web, Social.
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Kenny Lau Chief Product Officer Mina Naguib Chief Technology Officer Erin McCallion Chief Marketing Officer Amit Gelber Chief Growth Officer Anat Paran Chief Operating Officer Ran Cohen Chief Strategy Officer Elad Tzubery Chief Financial Officer Adi Zackai Mates EVP HR Stephen Yap Chief Revenue Officer Jonathan Saada EVP Supply Tal Jacobson Chief Executive Officer Leadership Team of Industry Visionaries
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Why Invest Large Growth Opportunity Strong focus on high-growth digital ad channels and market verticals: CTV, DOOH & Retail Media Unified Media Performance with Perion One Building a single platform to plan, activate, optimize & analyze across all channels, bridging creative and media with actionable insights for performance-driven outcomes AI as the OS of Advertising AI-driven platform to power predictive planning, creative performance, & real-time decisioning Profitability & Cash Generation1 Over a decade of positive annual Adjusted EBITDA & Operating Cash Flow, combined with efficient operations with scalable technology foundation Global Footprint Presence in North America, South America, EMEA & APAC Experienced Management Led by a highly experienced, global management team with a track record of delivering innovation and value 1 Annually, on a non-GAAP basis
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Financial Results & Outlook
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Q2 2025 Financial Highlights DOOH 35% YoY Revenue growth Retail Media 27% YoY Revenue growth Q2 Highlights Greenbids ProgressGrowth Engines CTV 5% YoY Revenue decline ●Healthy momentum in DOOH, Retail and Web. ●CTV budgets moving to H2 ●Strategy bearing fruit: Advertising Solutions back to YoY growth ●Strong Operating cash flow: expecting high FCF conversion rate in FY2025 ●Reiterating FY2025 guidance ●Post-acquisition integration fully on track ●Tangible synergies already generating new business wins ●Over one million dollar of new custom algo deals booked by existing customers ●Strong market acceptance: Robust order pipeline for 2025
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Q2 2025 Financial Highlights $103.0M Revenue Adjusted EBITDA1 Cash Flow from Operations Non-GAAP Net Income1Contribution ex-TAC Margin1 $7.1M $21.3M $12.0M 46% 7% Margin 15% ex-TAC Margin Diluted Non-GAAP EPS: $0.26 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric.
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Source: eMarketer data, July 2025 Growth Engines Expected to Outpace Market Growth1 in FY 2025 DOOH by Perion 35% YoY Growth ($M) DOOH Ad Spending 8.1% 2023-2028 CAGR, US ($B) CTV by Perion 5% YoY Decline ($M) CTV Ad Spending 14.3% 2023-2028 CAGR, US ($B)
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Our Retail Media Success Adoption of Our Technology with Retailers Retail Media by Perion 27% YoY Growth ($M) Omnichannel Retail Media Ad Spending 16.2% 2023-2028 CAGR, US ($B) Source: eMarketer data, July 2025
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Revenue ($M)
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Revenue by Channels DOOH Revenue of $17.6M Increased by 35% YoY CTV Revenue of $9.7M Decreased by 5% YoY Web Revenue of $53.1M Increased by 5% YoY Search Revenue of $22.4M Decreased by 35% YoY Q2 2025 DOOH 17% Web 52% CTV 9% Search 22% Percent of revenue may not add up due to rounding
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Advertising Solutions Revenue Revenue ($M) YoY Revenue growth rate
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Search Revenue Stabilizing ($M)
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Contribution ex-TAC1 1 Calculated as Contribution ex-TAC to Revenue. Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric.
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Adjusted EBITDA1 ($M) 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. Adjusted EBITDA/Contribution ex-TAC Adjusted EBITDA/Revenue 7% 15% 7% 15% 23% 54%
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Q2 2025 GAAP/Non-GAAP1 Net Income ($M) & EPS 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. GAAP Net Income (Loss) & EPS Non-GAAP Net Income & EPS1
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Q2 2025 Cash from Operations & Adjusted Free Cash Flow1 ($M) 1 Non-GAAP metrics. Please see the Appendix to this presentation for a reconciliation of each to the nearest GAAP metric. Cash from Operations Adjusted Free Cash Flow1
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Net Cash1 ($M) 1 Includes cash, cash equivalents, short term deposits and marketable securities, as well as long-term loans, net of current maturities
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Share Repurchase Program Accumulated spend ($M) Number of shares repurchased (M)
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Reiterating FY2025 Financial Outlook 1 Contribution ex-TAC and Adjusted EBITDA are non-GAAP measures. See reconciliation of GAAP to non-GAAP measures at the appendix to this presentation. 2 Calculated at revenue and Adjusted EBITDA guidance midpoint $M FY 2025 Guidance 430 - 450 44 - 46 10%2 22%2 Revenue Adjusted EBITDA1 Adjusted EBITDA/Revenue1 Adjusted EBITDA/ Contribution ex-TAC1
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Thank You.
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Appendix.
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Condensed Consolidated Balance Sheets
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Consolidated Statements Of Operations - GAAP
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Condensed Consolidated Statements of Cash Flows
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Reconciliation of GAAP to Non-GAAP Results
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Reconciliation of GAAP to Non-GAAP Results