Ad tech firm Perion sees earnings growth in 2023 after strong Q3 (updated)

Perion Network

09/11/2022 14:57

(Adds details, CEO comments, share reaction)
    By Steven Scheer
       JERUSALEM, Nov 9 (Reuters) - Advertising technology firm
Perion Network  PERI.TA   PERI.O  
said on Wednesday it expects sales and earnings to grow in 2023
after posting a 53% rise in third-quarter profit, as advertisers
continue to shift to new ways of targeting customers.
    Its Tel Aviv-listed shares rose 5.5% after it also lifted
its estimate for 2022 adjusted earnings before interest, taxes,
depreciation and amortisation to at least $120 million from $102
million.
    Israeli-based Perion has been capitalising on advertisers
moving away from traditional advertising and into digital areas
where ad returns are higher such as in social media and
televisions connected to the internet.
    Although it narrowed its 2022 sales outlook to $630
million-$635 million from a $620 million-$640 million range for
32% annual growth, the company said it saw no indication of a
slowdown in ad spending into next year despite fears of a
recession in the United States. 
    "We are expecting to grow. We have a great opportunity to
continue to be highly profitable," chief executive Doron Gerstel
told Reuters, but said it was too early to make more specific
2023 estimates.
    Analysts expect Perion to generate revenue of $733 million
next year, according to I/B/E/S data from Refinitiv, to which
Gerstel said "15% growth compared to what we are doing this year
is doable".
    He said that new digital technology made it easier for
companies to do better consumer targeting. Among them are TVs
and devices connected to the internet, tracking searches on the
internet and newer platforms such as podcasts. 
    More specific targeting could be further helped by new ad
tiers from Netflix  NFLX.O  and Disney+  DIS.N  despite charging
advertisers a lofty $65 per thousand views, Gertsel added,
triple what others have charged.
    Perion earned 61 cents per diluted share excluding one-time
items in the third quarter, up from 40 cents a share a year
earlier. Revenue rose 31% to $158.7 million.
    The company was forecast to earn 44 cents a share excluding
items on revenue of $158 million, according to I/B/E/S data from
Refinitiv.
 (Reporting by Steven Scheer; Editing by Jan Harvey and Emelia
Sithole-Matarise)
 ((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters
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