Perion Network (PERI) Reports Upbeat Q1 Preliminary Earnings


Perion Network PERI reported strong preliminary results for first-quarter 2022 on Apr 4. The advertising technology company now anticipates revenues of $125 million, which suggests 39% growth from the figure reported in the year-ago quarter.

Adjusted EBITDA is expected to be $22 million, indicating a whopping increase of 150% from the figure reported in the year-ago quarter.

In fourth-quarter 2021, revenues soared 34% year over year to $158 million, while adjusted EBITDA surged 89% to $28.9 million.

The Zacks Consensus Estimate for revenues is currently pegged at $119.4 million, suggesting 33% growth from the figure reported in the year-ago quarter. The consensus mark for earnings has doubled over the past 60 days to 18 cents per share.

What’s in Store for Perion’s Shares in 2022?

Perion shares surged 15.9% to close at $26.51 on Apr 4. The company has returned 10.3% year to date against the Zacks Internet Content industry’s decline of 11.1% and the broader Computer and Technology sector’s decline of 10.9%.

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

Perion’s outperformance can be attributed to its strong product portfolio. Advertising revenues in first-quarter 2022 are expected to have benefited from solid video advertising. Moreover, the company’s top-line growth is expected to have benefited from its Vidazoo acquisition.

Notably, in fourth-quarter 2021, Display Advertising revenues jumped 46% year over year to $100.2 million. Search Advertising revenues increased 16% year over year to $57.8 million.

Perion’s top line is riding on strong contributions from Video and CTV, including Vidazoo, significant growth in average deal size, revenue retention and continued growth in the daily average number of monetizable searches.

The ongoing change in consumer behavior, which has fostered increasing usage of e-commerce services, is expected to keep advertiser spending strong in the near term. Perion is also likely to benefit from robust performance of its Search business, driven by strong advertiser demand.

Perion is expected to update its 2022 guidance on Apr 28, when the company reports first-quarter 2022 results.

Perion provided its 2022 guidance during the fourth-quarter 2021 earnings release. The company expects revenues between $610 million and $630 million compared with the previous guidance of $590-$610 million. At mid-point, revenues are expected to grow 30% from 2021. Adjusted EBITDA is expected to be between $80 million and $84 million, reflecting 29% year-over-year growth at mid-point.

Zacks Rank & Stocks to Consider

Currently, Perion has a Zacks Rank #3 (Hold).

Here are some better-ranked stocks worth considering in the broader Computer & Technology sector.

Teradata TDC sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TDC shares have risen 14.6% in the year-to-date period. The Zacks Consensus Estimate for Teradata’s first-quarter 2022 earnings stands at 65 cents per share, unchanged over the past 30 days.

Diodes DIOD flaunts a Zacks Rank #1.

DIOD shares have fallen 22.8% in the year-to-date period. The Zacks Consensus Estimate for Diodes’ first-quarter 2022 earnings stands at $1.55 per share, unchanged over the past 30 days.

On Semiconductor ON also sports a Zacks Rank #1.

ON shares have declined 12.3% in the year-to-date period. The consensus mark for ON’s first-quarter fiscal 2022 earnings stands at $1.04 per share, unchanged over the past 30 days.

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Teradata Corporation (TDC) : Free Stock Analysis Report

Diodes Incorporated (DIOD) : Free Stock Analysis Report

Perion Network Ltd (PERI) : Free Stock Analysis Report

ON Semiconductor Corporation (ON) : Free Stock Analysis Report

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