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Perion (PERI) Announces Encouraging Preliminary Q4 Results

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Perion Network PERI recently announced preliminary fourth-quarter and 2020 financial results. The company is scheduled to report the final results on Feb 9.

Per the preliminary report, fourth-quarter 2020 revenues are estimated between $110 million and $115 million, surpassing the earlier guidance range of $100-$105 million. Also, the updated guidance range is above the Zacks Consensus Estimate of $101.4 million.

Further, non-GAAP earnings for fourth-quarter 2020 is forecasted between 35 cents and 36 cents per share, well above the consensus mark for adjusted earnings of 23 cents.

Adjusted EBITDA for the quarter is anticipated to be $14.5-$15 million, up from the previous guidance range of $13-$14 million.

2020 Results Preview

Perion anticipates 2020 revenues in the band of $320-$325 million, increasing from the earlier guidance range of $310-$315 million and indicating an improvement of 23% on a year-over-year basis. The Zacks Consensus Estimate for the same is currently pegged at $311.2 million.

Further, non-GAAP earnings for 2020 is projected between 80 cents and 82 cents per share, much above the consensus mark for adjusted earnings of 28 cents.

Adjusted EBITDA for the year is expected to be in the $32-$32.5 million range, exceeding the earlier guidance of $30-$31 million.

Strong Ad Business, Acquisition Synergies: Key Positives

Shares of Perion Network have surged 49.5% over the past year compared with the Zacks Internet – Content industry’s growth of 94.1%.

Perion Network Ltd Price and Consensus

Perion Network Ltd Price and Consensus
Perion Network Ltd Price and Consensus

Perion Network Ltd price-consensus-chart | Perion Network Ltd Quote


The company’s upbeat preliminary results for the fourth quarter and fiscal 2020 come in the light of solid traction in its advertising business, driven by strength in Connected television (CTV) and video offerings along with contributions from the acquisitions pursued by the company in 2020.

Momentum in the digital advertising market due to a significant improvement in advertisement spending serves as a key catalyst. Moreover, the company expects the recent acquisitions of ContentIQ and Pub Ocean to have driven synergies, thereby aiding the top line.

Notably, in the third quarter of 2020, Perion’s advertising revenues soared 75.8% year over year to $37.9 million, primarily driven by 200% revenue growth in CTV and contributions from the buyouts of ContentIQ and Pub Ocean.

Zacks Rank & Other Stocks to Consider

Perion currently carries a Zacks Rank #2 (Buy).

Some top-ranked stocks in the broader technology sector are Square SQ, PerkinElmer PKI and Micron Technology MU. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Square, PerkinElmer and Micron is pegged at 33%, 19.5% and 12.7%, respectively.

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