Perion Q4 Earnings: Another Beat and Raise

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Our Ad Tech coverage analyst Andrew M predicted a rock-solid earnings report for Perion (PERI) and the company delivered. Andrew gives us a rundown of the earnings report and what he’s keeping his eye on.

See our other recent write-ups on Perion here:

Link to the investor presentation and press release

Key Takeaways

  • Beat estimates and raised guidance
  • Management shared promising results of their new SORT technology
  • Q4 revenue of $158 million vs. $145 million est. (9% beat)
    • Growth of 26% YoY
  • Net income of $17.7 million vs $15.5 million est. (14.3% beat)
    • Growth of 100% YoY
  • Updated revenue guidance to $610 million – $630 million for FY22
    • Midpoint of guidance represents 29.7% growth YoY
    • Analysts average projections were $599 million before earnings
Courtesy of Bing (IYKYI)

Earnings Overview

Metrics + Financials

  • Fourth Quarter
    • Revenue was $158 million, a growth of 26% over Q4 of 2020
    • Net income was $17.7 million, 100% over the prior period
    • EBITDA margin excluding traffic acquisition costs (TAC) grew to 45% compared to 45% during the quarter
    • A 29% increase in average revenue per client
  • Full Year
    • Revenue was $478.5 million for 34% growth over the previous year
    • Net income for the year was $60 million, representing growth of nearly 125% year-over-year

Management Commentary

On its SORT technology…

  • “We launched SORT beginning of October, that more than 3 months away. I mentioned it on our previous call. But now I’m so happy that I’m able to share with you that we have already more than 40 customers that are using SORT, but more impressive, guys, this is more impressive that we are able to show that the CTR, the click-through rate is 2x higher than cookie-based targeting.”
    • AM: I could do a write up on SORT alone. I at least want to give some color on this as the importance of it will be lost on someone who isn’t familiar with the industry or understands CTR.  Doubling CTR is absolutely incredible.  I spoke with an executive within the AdTech industry regarding this and while they don’t follow Perion and didn’t listen to the earnings call they had this to say: “They doubled CTR? There’s no way, doubling CTR is so hard, it’s nearly impossible. They must just be dumbing this down for the audience.”  We will be monitoring this in the future, but if SORT does indeed have 2x the CTR, then this is an incredible development.
  • “The other thing which is important, we are estimating that the SORT and the flywheel that I mentioned before able to generate an additional $50 million on advertising budget from our customers.”

On SORT as a service…

  • “We are now developing the ROS 2.0, which is — we call it internally SaaS, but not the SaaS that you know, but this is SORT as a Service. And there is a growing — we’re getting tons of fleets from publisher that would like to adapt SORT as their privacy technology on their side”
    • AM: We will monitor any developments on this side of the business – this could be a very profitable part of their business down the line if SORT is as good as they are making it to be.

On CTV growth…

  • “Our record revenue with 34% year-over-year growth between the fourth quarter 2021 with $158 million versus $118 million last year, very much thanks to 311% growth in CTV, $46 million versus $11 million. Another 2 KPIs, which we are very much keep attention to is the average deal size.”

On the seasonality of the upcoming year…

  • “In terms of seasonality, we’re expecting the same trend, about 20% in Q1, 24% in Q2 and Q4 and more than 30%, 32% in Q4. This is more or less in line with our pro forma for 2021. And we’ll take — also will be the same in 2022.”

On the hub…

  • “When it comes to the value of the hub, we are talking about reduced operational costs to reduce tax here on the millions of dollars that it will generate. But the one that we’re proud the most is this one. How are we able to increase our customer value through the fact that we are analyzing so much data.”
  • “Now if you combine the end-to-end into the efficiency of the hub that’s able to optimize it, you’re able to get a lot of gain. As I mentioned, we are translating it into a contribution of $6.5 million into the bottom line.”


  • Management increased FY22 full year guidance
  • Perion is now guiding revenue in 2022 to be between $610-630 Million (30% projected growth)
  • Perion raised their guidance for adjusted Ebitda to be between $88-92 Million
  • Management increased their EBITDA to Rev ex Tac up to 36%

Quick Valuation

  • At $23.40, PERI is trading just over a $623 million enterprise value.
  • At the midpoint of guidance, PERI is trading at 6.9x FY22 EBITDA with growth still ahead of the company and promising results from the SORT technology.
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