Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Greystone Logistics, Inc. Reports Results of Operations for the Nine and Three Months Ended February 29, 2024
Press Release | 04/17/2024
TULSA, Okla., April 17, 2024 (GLOBE NEWSWIRE) -- Greystone Logistics, Inc. (OTCQB:GLGI) Tulsa-based Greystone Logistics, Inc. reports results of operations for the nine months and the three months ended February 29, 2024.
Greystone reported earnings per share of common stock for the nine months ended February 29, 2024 of $0.09 compared to $0.16 for the prior period. Net income was $3,006,974 for the nine months ended February 29, 2024 compared to $4,881,990 for the nine months ended February 28, 2023 which included other income of approximately $3.2 million from realization of federal tax credits and a gain from deconsolidation of a variable interest entity. EBITDA for the nine months ended February 29, 2024, was $9,660,949 compared to $10,109,572 for the nine months ended February 28, 2023.
Earnings per share of common stock for the three months ended February 29, 2024 were $0.01 per compared to $0.13 per share. Net income for the three months ended February 29, 2024 and 2023 was $297,929 and $3,695,496, respectively.
Sales for the nine months ended February 29, 2024, were $46,990,716 compared to sales of $44,633,542 in the prior period. Gross profit margins were 19.2% and 13.5% for the nine months ended February 29, 2024 and 2023, respectively.
Sales for the three months ended February 29, 2024, were $13,980,009 compared to sales of $13,578,269 in the prior period.
“Credit goes to our employees for the continued progress in the current fiscal year,” stated CEO Warren Kruger. “Our sales team is working diligently filling our pipeline with business from existing and new customers. Unexpected delays in delivery of new molds have created a delay in fulfilling purchase orders for customers. Delivery of the new molds is expected to occur in the latter part of the year thus realizing the utilization of the two new large tonnage injection molding machines and the robotic extrusion line to manufacture hollow extrusion pallets. Greystone is well positioned for our continued growth cycle, including our products for selected markets - grocery, can, nut, cement, tech and beverage industries.”
Greystone Logistics is a "Green" manufacturing company that reprocesses recycled plastic and designs, manufactures and sells high quality 100% recycled plastic pallets that provide logistical solutions for a wide range of industries such as the food and beverage, automotive, chemical, pharmaceutical and consumer products. The Company's technology, including a proprietary blend of recycled plastic resins used in the injection molding equipment and patented pallet designs, allows production of high quality pallets more rapidly and at lower costs than many other processes. The recycled plastic for Greystone’s pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resin.
This press release includes certain statements that may be deemed "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical facts that address activities, events or developments that the Company expects, believes, or anticipates will or may occur in the future, including the potential sales of pallets or other possible business developments are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, including the ability of the Company to continue as a going concern. Actual results may vary materially from the forward-looking statements. For a list of certain material risks relating to the Company and its products, see Greystone Logistics' Form 10-K for the fiscal year ended May 31, 2023.
Conference Call - Wednesday, April 17, 2024, at 2:00 PM ET, hosted by Warren Kruger, President and CEO. Conference ID is Greystone. Dial-in information is Toll-Free Number, 800-579-2543, or Direct or International Number, 785-424-1789. A Q&A session will be available.
Non-GAAP Financial Measure
This press release contains disclosure of EBITDA, which is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. A reconciliation of net income to EBITDA, the most comparable GAAP financial measure, as well as additional information concerning EBITDA, are included at the end of this release.
Greystone Logistics, Inc.
Reconciliation of Consolidated Net Income to EBITDA
For the Nine Months Ended February 29, 2024 and 2023
2024
2023
Net Income $ 3,006,974 $ 4,881,990
Income Taxes 1,375,000 452,000
Depreciation and Amortization 4,296,383 3,954,444
Interest Expense 982,592 821,138
EBITDA (A) $ 9,660,949 $ 10,109,572
(A) EBITDA represents income before income taxes plus interest, depreciation and amortization. The
EBITDA presented above, while considered the most common definition used by investors and
financial analysts, may not be comparable to similarly titled measures reported by other companies.
Greystone believes that EBITDA, while providing useful information, should not be considered in
isolation or as an alternative to other financial measures determined under GAAP.
Contact:
Brendan Hopkins
Investor Relations
Email: investorrelations@greystonelogistics.com
Phone: (407) 645-5295
https://www.greystonepallets.com
Primary Logo
PERI .... $23.50....Hivestack has screens all over the world already !! This tells me that Perion does not complete an M&A until everything is in place. The next M&A could already be in place. I'm going to continue to hold as it seems to me this is way undervalued.. Hope I'm correct.
https://www.hivestack.com/news-insights/hivestack-by-perion-launches-the-first-programmatic-digital-out-of-home-dooh/?utm_content=283809129&utm_medium=social&utm_source=linkedin&hss_channel=lcp-15179046&trk=feed_main-feed-card_feed-article-content
PERI .... $23.50....Hivestack has screens all over the world already !! This tells me that Perion does not complete an M&A until everything is in place. The next M&A could already be in place. I'm going to continue to hold as it seems to me this is way undervalued.. Hope I'm correct.
https://www.hivestack.com/news-insights/hivestack-by-perion-launches-the-first-programmatic-digital-out-of-home-dooh/?utm_content=283809129&utm_medium=social&utm_source=linkedin&hss_channel=lcp-15179046&trk=feed_main-feed-card_feed-article-content
WOW..... Huge News !!!!!
PERI..$24... Something is not right, The market must think it's fraud ??
I don't know what else to think.
Perion’s Diversification Strategy Continues to Drive Strong Performance as Company Achieves Quarterly Growth in Search, CTV and Retail Media
PERI.TA
-15.27%
PERI
-18.59%
Wed, February 7, 2024 at 6:00 AM EST
In this article:
PERI.TA
-15.27%
Watchlist
Watchlist
Significant Event
|
1d
yahoo plus badge
Perion Outlook FY Revenue USD 860-880 Mln
PERI
-18.56%
Delivers Annual Year-Over-Year Growth of 16% in Revenue, 18% in GAAP Net Income and 28% in Adjusted EBITDA
NEW YORK & TEL AVIV, Israel, February 07, 2024--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ and TASE: PERI), a technology leader in connecting advertisers to consumers across all major digital channels, today reported its financial results for the fourth quarter and full year ended December 31, 2023.
"Our fourth quarter and annual results showed notable growth in Search, CTV and Retail Media, further demonstrating the positive impact of our business diversification and continued focus on technology and innovation. In 2023, we generated industry-leading adjusted EBITDA to Contribution ex-TAC margins, giving us a solid foundation for 2024," stated Tal Jacobson, Perion’s CEO.
"As advertising budgets shifted between channels, we capitalized on these trends and delivered profitable growth well ahead of the digital advertising market for 2023. We also advanced our growth strategy with the acquisition of Hivestack, a leading innovative full-stack programmatic digital out-of-home (DOOH) company with an extensive global footprint. The acquisition of Hivestack, alongside our existing offering, solidifies Perion’s differentiated offer to our customers. It’s a significant entry into the fast growing DOOH channel, which opens up new synergistic opportunities within our suite of solutions for brands and retailers. By adding critical touch points to the entire consumer journey across channels such as CTV, Audio, Out Of Home, including our products for Near-store and In-Store screens - we are transforming our Retail Media suite into a pure multi-channel, full consumer journey solution."
"Additionally, our strong cash flow from operations of $155 million for the full year of 2023, positions us well to execute additional acquisitions, further expanding our solutions and enhancing shareholder value," Jacobson concluded.
Fourth Quarter 2023 Business Highlights
Retail Media1 revenue increased 196% year-over-year to $20.2 million, representing 17% of Display Advertising revenue compared to 6% last year
CTV revenue2 increased 69% year-over-year to $14.4 million, representing 12% of Display Advertising revenue compared to 7% last year
Video revenue decreased 33% year-over-year, driven by shifting inventory from video to display to gain higher profit, representing 29% of Display Advertising revenue, compared to 42% last year
The number of Average Daily Searches increased by 37% year-over-year to 30.2 million. The number of Search Advertising publishers increased by 4% year-over-year to 162
Full-Year 2023 Business Highlights
Retail Media1 revenue increased 114% year-over-year to $49.7 million, representing 12% of Display Advertising revenue compared to 6% last year
CTV revenue2 increased 56% year-over-year to $33.5 million, representing 8% of Display Advertising revenue compared to 6% last year
Video revenue decreased 7% year-over-year, driven by shifting inventory from video to display to gain higher profit, representing 36% of Display Advertising revenue, compared to 43% last year
The number of Average Daily Searches increased by 57% year-over-year to 29.1 million. The annual average number of Search Advertising publishers increased by 18% year-over-year to 160
1
Retail Media revenue include all media channels, such as, CTV, video and others
2
Starting in the second quarter of 2023, we changed our methodology for measuring our CTV activity. We moved from measuring CTV campaigns to measuring CTV channels. The CTV growth trend under both methodologies remains in the same trajectory. Under our updated methodology, revenue generated from CTV in the fourth quarter of 2022 was $8.6 million vs. $12.5 million under the previous methodology
Fourth Quarter 2023 Financial Highlight
In millions,
except per share data
Three months ended
Year ended
December 31,
December 31,
2023
2022
%
2023
2022
%
Display Advertising Revenue
$
119.8
$
123.8
-3%
$
398.2
$
360.7
+10%
Search Advertising Revenue
$
114.4
$
85.9
+33%
$
344.9
$
279.6
+23%
Total Revenue
$
234.2
$
209.7
+12%
$
743.2
$
640.3
+16%
Contribution ex-TAC1
$
90.6
$
87.6
+3%
$
310.2
$
267.7
+16%
GAAP Net Income
$
39.4
$
38.7
+2%
$
117.4
$
99.2
+18%
Non-GAAP Net Income1
$
52.9
$
44.7
+19%
$
167.4
$
119.8
+40%
Adjusted EBITDA1
$
53.9
$
48.2
+12%
$
169.1
$
132.4
+28%
Adjusted EBITDA to Contribution ex-TAC1
59%
55%
55%
49%
Net Cash from Operations
$
50.2
$
38.2
+32%
$
155.5
$
122.1
+27%
GAAP Diluted EPS
$
0.78
$
0.79
-1%
$
2.34
$
2.06
+14%
Non-GAAP Diluted EPS1
$
1.04
$
0.90
+16%
$
3.33
$
2.47
+35%
Outlook for 20242
"Our expectations for 2024 reflect increased investments in technology and innovation to enhance our advanced multi-channel solutions, that combined with the acquisition of Hivestack will help Perion deliver strong double-digit revenue and adjusted EBITDA growth in the coming years," commented Tal Jacobson, Perion’s CEO.
In millions
2023
2024 Guidance
YoY Growth %3
YoY proforma Growth %3
Revenue
$743.2
$860-$880
17%
10%
Adjusted EBITDA1
$169.1
$178-$182
6%
10%
Adjusted EBITDA to Revenue1
23%
21%3
Adjusted EBITDA to Contribution ex-TAC1
55%
51%3
1
Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.
2
We have not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because we do not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.
3
Calculated at revenue and adjusted EBITDA guidance midpoint.
Financial Comparison for the Fourth Quarter of 2023
Revenue: Revenue increased by 12% to $234.2 million in the fourth quarter of 2023 from $209.7 million in the fourth quarter of 2022. Display Advertising revenue decreased 3%, accounting for 51% of total revenue, primarily due to 33% decrease in Video revenue to $35.2 million due to shifting inventory from video to display to gain higher profit, partially offset by 196% increase in Retail revenue to $20.2 million and a 69% increase in CTV revenue to $14.4 million. Search Advertising revenue increased by 33%, accounting for 49% of revenue, primarily due to 37% increase in Average Daily Searches and 4% increase in the number of publishers to 162.
Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $143.6 million, or 61% of revenue, in the fourth quarter of 2023, compared with $122.0 million, or 58% of revenue, in the fourth quarter of 2022. The margin contraction was primarily due to product mix, partially offset by media buying optimization, which is enabled by leveraging data and buying power.
GAAP Net Income: GAAP net income increased by 2% to $39.4 million in the fourth quarter of 2023, compared with $38.7 million, in the fourth quarter of 2022. GAAP net income in the fourth quarter of 2023 includes $3.3 million acquisition related expenses and $2.1 million fair-value adjustment of the contingent consideration payable in respect to the Vidazoo acquisition.
Non-GAAP Net Income: Non-GAAP net income increased by 19% to $52.9 million, or 23% of revenue, in the fourth quarter of 2023, from $44.7 million, or 21% of revenue, in the fourth quarter of 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Adjusted EBITDA: Adjusted EBITDA was $53.9 million, or 23% of revenue (and 59% of Contribution ex-TAC) in the fourth quarter of 2023, compared with $48.2 million, or 23% of revenue (and 55% of Contribution ex-TAC) in the fourth quarter of 2022. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release.
Cash Flow from Operations: Net cash provided by operating activities in the fourth quarter of 2023 was $50.2 million, a 32% increase from $38.2 million in the fourth quarter of 2022.
Net cash: As of December 31, 2023, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $472.7 million, compared with $429.6 million as of December 31, 2022.
Financial Comparison for the Full-Year of 2023
Revenue: Revenue increased by 16% to $743.2 million in 2023 from $640.3 million in 2022. Display Advertising revenue increased by 10%, accounting for 54% of revenue, mainly driven by 114% increase in Retail Media revenue to $49.7 million and 56% growth in CTV to $33.5 million, partially offset by 7% decrease in Video revenue to $143.2 million due to shifting inventory from video to display to gain higher profit. Search Advertising revenue increased by 23%, accounting for 46% of revenue, primarily due to a 57% increase in Average Daily Searches and 18% increase in the average annual number of publishers to 160.
Traffic Acquisition Costs ("TAC"): TAC amounted to $432.9 million, or 58% of revenue, compared with $372.6 million, or 58% of revenue in 2022. Media margin remained flat year-over-year.
GAAP Net Income: GAAP net income increased by 18% to $117.4 million in 2023 from $99.2 million in 2022. GAAP net income in 2023 includes $4.0 million acquisition related expenses and $18.7 million fair-value adjustment of the contingent consideration payable in respect to the Vidazoo acquisition.
Non-GAAP Net Income: Non-GAAP net income increased by 40% to $167.4 million, or 23% of revenue, from $119.8 million, or 19% of revenue in 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Adjusted EBITDA: Adjusted EBITDA was $169.1 million, or 23% of revenue (and 55% of revenue ex-TAC), compared with $132.4 million, or 21% of revenue (and 49% of revenue ex-TAC) in 2022. A reconciliation of GAAP Net Income to Adjusted EBITDA is included in this press release.
Cash Flow from Operations: Net cash provided by operating activities in 2023 was $155.5 million, a 27% increase from $122.1 million in 2022.
Conference Call
MDWerks’ Two Trees Beverages Subsidiary Expands and Extends Collaboration with Tim Smith of Discovery Channel’s Moonshiners in New 15-Year Agreement
GREEN COVE SPRINGS, Fla.--(BUSINESS WIRE)-- MDWerks, Inc. (“MDWerks” or the “Company”) (OTC: MDWK), a forward-thinking company leading the charge in the world of sustainable technology, today announced that the Company’s award-winning Two Trees Beverages subsidiary (“Two Trees”) has entered into a new 15-year license agreement that expands and extends its collaboration with Tim Smith, best known for his starring role in Discovery Channel’s Moonshiners and for crafting classic moonshine and other fine spirits.
Under the new agreement with the licensor, Shine Time, LLC, the Company’s product licensing territory for Tim Smith Spirits® has been expanded beyond the United States to include all members of the European Union plus the United Kingdom, Norway, Switzerland, Iceland, Serbia, Turkey and Ukraine, and each country in which any episodes of the reality-television series Moonshiners is aired via terrestrial television, cable or may be digitally streamed by agreement with a digital distribution agreement.
The newly expanded license agreement extends the Tim Smith and Two Trees collaboration through the year 2038. Tim Smith and Two Trees have partnered since 2013 under the original license agreement. Tim Smith Spirits® branded products include Climax Moonshine™, Climax Wood Fired Whiskey™, Climax Fire No 32™, Southern Reserve Bourbon™, Southern Reserve Rye™, and Southern Reserve Whiskey™.
Steven Laker, CEO of MDWerks, commented, “We are thrilled to build on Two Trees’ longstanding relationship with Tim Smith, the legendary third-generation moonshiner featured on Discovery Channel’s Moonshiners and the man behind our critically acclaimed portfolio of Tim Smith Spirits® branded products. Under this exciting new long-term license agreement, we expand the product license territory beyond the United States and intend to work more closely with Tim on promotional activity surrounding our award-winning fine spirits portfolio. We have identified product marketing opportunities with Tim in the areas of strategic product placement across a range of media, distillery visits, and co-branded events, among others.”
Mr. Laker concluded, “In February, be sure to meet Tim at events in and around Daytona for the big race, where he will be available for pictures and will be promoting our brands.”
Tim Smith added, “Building on our shared Appalachian roots, Two Trees has been a valuable partner in expanding Tim Smith branded products to a national audience through its Sustainably Matured™ production capabilities and marketing and distribution expertise. I am eager to step up my support of the Two Trees team in growing the current spirits portfolios as well as developing successful new brands.
PERI...$29... Yes I agree, I'm hoping Perion buys Digital Turbine (APPS) that would add $600 million in revenue and they could sell the unprofitable parts.
Just wishful thinking I guess.
Earnings are out wed before mkt open.
I bought in about 2 years ago at around $.03 and forgot about it.
I like the Tim Smith connection and the license angle, any news on that and this could really pop.
We see a significant opportunity to license our proprietary accelerated-aging technology to other spirit producers who can take advantage of the associated speed, financial benefits, and ethically sourced profile it delivers.
I'm going to hold for now and see what happens.
Thanks for all the info you post.
MDWerks’ Two Trees Beverages Subsidiary Announces Co-Sponsorship of Team Combat League in New Multi-Year Agreement
Green Cove Springs, FL – January 24, 2024 – MDWerks, Inc. (“MDWerks” or the “Company”) (OTC: MDWK), a forward-thinking company leading the charge in the world of sustainable technology, today announced that the Company’s award-winning Two Trees Beverages subsidiary (“Two Trees”) has agreed to an exciting new co-sponsorship of Team Combat League (“TCL”), the nation’s first and only boxing league with a franchise team format. Under the terms of the multi- year co-sponsorship agreement, TCL will promote the Company’s fine spirits brands, including Two Trees® and Tim Smith Spirits®, on TCL telecasts through logo placement on mats, signs, banners, and uniform patches as well as through the sale of the Company’s distinguished, Sustainably MaturedTM whiskeys at certain TCL events.
Steven Laker, CEO of MDWerks, commented, “Two Trees is delighted to co-sponsor Team Combat League as it embarks on its second season in March 2024. We believe this alignment provides exposure to both Two Trees as well as Tim Smith Spirits branded products across a large demographic of viewers within the rapidly growing team sports arena. In the US, spectators already have gravitated quickly to TCL’s unique team boxing concept during its inaugural season.
“Both TCL and MDWerks are progressing through the early stages of their development and have identified extended pathways for growth. While TCL advances an exciting new sport format, MDWerks is disrupting the spirits industry, among other sectors, with a novel energy wave technology platform that promotes environmental sustainability, innovation, and efficiency. This co-sponsorship is an excellent opportunity for MDWerks to leverage TCL’s expanding profile to introduce our brands to a wider consumer audience as well as our technology platform to potential new business partners. MDWerks is thrilled to have Two Trees join TCL for what is sure to be an entertaining second season.”
TCL’s President, Dewey Cooper, added, “Team Combat League is fortunate to gain an excellent co- sponsor like Two Trees Beverages, which is known for impeccable quality, innovation, and environmental responsibility in crafting its award-winning fine spirits brands. We anticipate a long and mutually beneficial relationship with the Two Trees team.”
About MDWerks, Inc.
MDWerks, Inc. (“MDWerks”) (OTC: MDWK) is a forward-thinking company that is leading the charge in the world of sustainable technology. As a prominent provider of energy wave technologies, MDWerks is committed to developing innovative solutions that help businesses reduce their energy costs and drive business value. For more information, please visit https://mdwerksinc.com/.
About Two Trees Beverage Company
MDWerks’ wholly owned subsidiary, Two Trees Beverage Company, is headquartered deep in the Appalachian Mountain country, creating fine spirits, aged sustainably. Two Trees’ fine spirits brands, including Two Trees® and Tim Smith Spirits®, have received multiple industry awards,
including recent recognition at the 2022 Sip Awards, the 2022 Fifty Best Awards, and the 2023 Best of Asheville. For more information, please visit https://twotreesdistilling.com/.
About Team Combat League
Launched in March 2023, Team Combat League (“TCL”) competitions employ a unique and exclusive point scoring system. Each match contains 24 three-minute rounds of nonstop action with a 15-minute halftime after round 12. Teams compete across six weight categories, five male and one female. Each round is scored individually with additional points added for knockouts and knockdowns. One point to each team for a draw, two points for a decision, additional points for knockdowns and maximum six points for fight stoppage. At the conclusion of the 24 rounds, the team with the most points wins. Each TCL season begins in March and concludes with the championship match, The Super Fight. A total of 12 teams will participate in the 2024 season, up from 6 teams in the league’s inaugural season in 2023. For more information, please visit: https://teamcombatleague.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are predictive in nature and are identified by the use of the terms “will,” “look forward to” and “aim,” and similar words indicating possible future expectations, events or actions. Such forward-looking statements are based on current expectations, assumptions, estimates and projections about our business and our industry, and are not guarantees of our future performance. These statements are subject to a number of known and unknown risks, uncertainties and other factors, many of which are beyond our ability to control or predict, which may cause actual events to be materially different from those expressed or implied herein. The Company has provided additional information about the risks facing our business in its most recent annual report on Form 10-K, and any subsequent periodic and current reports on Forms 10-Q and 8-K, filed by it with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date the statement was made and are expressly qualified in their entirety by the cautionary statements set forth herein and in the filings with the Securities and Exchange Commission identified above, which you should read in their entirety before making an investment decision with respect to our securities. We undertake no obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable law.
Company Contact:
MDWerks, Inc.
Steven Laker
T: (252) 501-0019 stevel@mdwerksinc.com
Investor Contact:
The Equity Group Kalle Ahl, CFA
T: (303) 953-9878 kahl@equityny.com
I enjoy reading the posts from you and Jimmyjohn,
Thanks
PERI.... $28
Perion Continues to Deliver Strong Results with 17% Year-Over-Year Increase in Revenue and 29% Growth in Adjusted EBITDA
PERI.TA
-0.36%
PERI
-0.18%
Wed, November 1, 2023 at 4:11 AM PDT
In this article:
PERI.TA
-0.36%
Watchlist
Watchlist
PERI
-0.18%
The company launches WAVE, a generative AI-powered dynamic audio advertising solution
NEW YORK & TEL AVIV, November 01, 2023--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ and TASE: PERI), a global technology company whose synergistic solutions serve all major digital advertising channels - including search, social, display, and video/CTV, today reported its financial results for the third quarter ended September 30, 2023.
"Once again, our business results proved that our strategically diversified model gives us the agility to deliver continued growth," stated Tal Jacobson, Perion’s CEO. "Despite macroeconomic headwinds, our third-quarter year-over-year revenue and adjusted EBITDA increased 17% and 29%, respectively. These results were made possible by the ability to leverage our technological capabilities and focus resources on the strongest industry verticals to achieve top-line profitability and margin expansion. Specifically, our Retail Media solutions are tracking to significantly exceed our annual revenue goal for 2023."
"Our diversification remains a key differentiator for Perion, powered by exceptional execution and ongoing investment in technology," added Mr. Jacobson.
Introducing WAVE
Reaffirming its commitment to technological innovation, Perion expands its advertiser suite of solutions with the introduction of WAVE (Waveform Audio Voice Engine), a generative AI-powered dynamic audio solution that enables advertisers to generate personalized audio advertising messages at scale. The power of the solution is based on advanced algorithmic AI processing which combines first-party data with voice, reaching consumer audiences with tailored audio messages that adapt in real time to parameters such as weather, location, daypart, and many others.
"We are focused on developing technology that creates deeper and more meaningful consumer experiences," explained Mr. Jacobson. "WAVE represents our commitment to changing the game for advertisers, enabling us to tap into lucrative channels and create entirely new categories. We envision a future where every consumer interaction is customized, localized and commerce-enabled."
Albertsons is an early adopter that has seamlessly integrated WAVE into several successful campaigns and is now looking to scale the solution more broadly.
"When Perion introduced us to the AI script and voice, we were blown away. It was very hard to detect that it was an actual AI voice – right down to the nuances of how certain products are pronounced, and the annunciation. To see the machine actually learning those dialogue differences was super important to us," said Tony Colvin, Director – Paid Media, Albertsons Companies.
WAVE is launching into the Retail vertical, adding a richer, multi-dimensional capability to each consumer touchpoint. Perion plans to quickly roll out WAVE to additional verticals, including QSR - Quick-Service Restaurants, automotive, and travel.
Third Quarter 2023 Business Highlights
? Retail Media1 revenue increased 112% year-over-year to $13.0 million, representing 13% of Display Advertising revenue compared to 7% last year
? CTV revenue2 increased 39% year-over-year to $7.9 million, representing 8% of Display Advertising revenue compared to 7% last year
? Video revenue decreased 16% year-over-year, driven by shifting inventory from video to display to gain higher profit, representing 32% of Display Advertising revenue, compared to 44% last year
? The number of Average Daily Searches increased by 86% year-over-year to 31.3 million. The number of Search Advertising publishers increased by 16% year-over-year to 164
1 Retail Media revenue includes all media channels, such as CTV, video and others
2 Starting in the previous quarter, we changed our methodology for measuring our CTV activity. We moved from measuring CTV campaigns to measuring CTV channels. The CTV growth trend under both methodologies remains in the same trajectory. Under our updated methodology, revenue generated from CTV in the third quarter of 2022 was $5.7 million vs. $7.4 million under the previous methodology.
Third Quarter 2023 Financial Highlights1
In millions,
Three months ended
Nine months ended
except per share data
September 30,
September 30,
2023
2022
%
2023
2022
%
Display Advertising Revenue
$
99.2
$
86.8
14%
$
278.5
$
236.9
18%
Search Advertising Revenue
$
86.1
$
71.8
20%
$
230.5
$
193.7
19%
Total Revenue
$
185.3
$
158.6
17%
$
509
$
430.6
18%
Contribution ex-TAC (Revenue ex-TAC)1
$
77.3
$
65
19%
$
219.6
$
180
22%
GAAP Net Income
$
32.8
$
25.6
28%
$
78
$
60.5
29%
Non-GAAP Net Income1
$
42.4
$
29.9
42%
$
114.4
$
75.1
52%
Adjusted EBITDA1
$
42.7
$
33
29%
$
115.2
$
84.1
37%
Adjusted EBITDA to Revenue ex-TAC
55%
51%
52%
47%
Net Cash from Operations
$
40.1
$
34.7
16%
$
105.2
$
83.9
25%
GAAP Diluted EPS
$
0.65
$
0.53
23%
$
1.57
$
1.27
24%
Non-GAAP Diluted EPS1
$
0.84
$
0.61
38%
$
2.28
$
1.56
46%
Outlook for 2023 2
With the first three quarters of 2023 behind us, Perion reiterates its annual revenue and adjusted EBITDA guidance.
In millions
2022
2023
Guidance
YoY
Growth %3
Revenue
$640.3
$730-$750
16%
Adjusted EBITDA
$132.4
$167+
26%
Adjusted EBITDA to Revenue
21%
23%3
Adjusted EBITDA to Contribution ex-TAC
49%
54%3
1 Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.
2 We have not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because we do not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.
3 Calculated at revenue guidance midpoint. Adjusted EBITDA year-over-year growth calculated based on $167 million.
Financial Comparison for the Third Quarter of 2023
Revenue: Revenue increased 17% to $185.3 million in the third quarter of 2023 from $158.6 million in the third quarter of 2022. Display Advertising revenue increased 14% year-over-year, accounting for 54% of total revenue, primarily due to a 112% year-over-year increase in Retail revenue to $13.0 million and a 39% year-over-year increase in CTV revenue to $7.9 million. Search Advertising revenue increased 20% year-over-year, accounting for 46% of revenue, with 86% increase in Average Daily Searches and 16% increase in the number of publishers.
Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $108.0 million, or 58% of revenue, in the third quarter of 2023, compared with $93.6 million, or 59% of revenue, in the third quarter of 2022. The margin expansion was primarily attributed to favorable product mix and media buying optimization through our platform.
GAAP Net Income: GAAP net income increased by 28% to $32.8 million in the third quarter of 2023 compared with $25.6 million in the third quarter of 2022.
Non-GAAP Net Income: Non-GAAP net income was $42.4 million, or 23% of revenue, in the third quarter of 2023, compared with $29.9 million, or 19% of revenue, in the third quarter of 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Adjusted EBITDA: Adjusted EBITDA was $42.7 million, or 23% of revenue (and 55% of Contribution ex-TAC) in the third quarter of 2023, compared with $33.0 million, or 21% of revenue (and 51% of Contribution ex-TAC) in the third quarter of 2022. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release.
Cash Flow from Operations: Net cash provided by operating activities in the third quarter of 2023 was $40.1 million, compared with $34.7 million in the third quarter of 2022.
Net cash: As of September 30, 2023, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $523.6 million, compared with $429.6 million as of December 31, 2022.
Conference Call
Perion’s management will host a conference call to discuss the results at 8:30 a.m. ET today:
? Registration link:
https://incommconferencing.zoom.us/webinar/register/WN_Mwx-qMqNRZKyt3FCZ1XXxQ
? Toll Free: 1-877-407-0779
? Toll/International: 1-201-389-0914
A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website.
About Perion Network Ltd.
Perion is a global multi-channel advertising technology company that delivers synergistic solutions across all major channels of digital advertising – including search advertising, social media, display, video and CTV advertising. These channels converge at Perion’s intelligent HUB (iHUB), which connects the company’s demand and supply assets, providing significant benefits to brands and publishers.
Perion Delivers Strong Results with 22% Year-Over-Year Increase in Revenue and 45% Growth in Adjusted EBITDA
Wed, August 2, 2023 at 4:00 AM PDT
In this article:
PERI
-2.83%
Watchlist
Watchlist
Patternyahoo plus badge
Bearish
trade type S
Company raises annual guidance – focusing on profitability
TEL AVIV & NEW YORK, August 02, 2023--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ and TASE: PERI), a global multi-channel advertising technology company that delivers synergistic solutions across all major channels of digital advertising – including search advertising, social media, display, video and CTV advertising – today reported its financial results for the second quarter ended June 30, 2023.
"Our business results demonstrate, once again, our consistent ability to outperform the industry. We accomplish that through focusing on profitability and margin expansion, driven by efficiency and innovation", stated Tal Jacobson, Perion’s CEO. "Our growth in second-quarter revenue and adjusted EBITDA - up 22% and 45% respectively - highlights our ability to identify and seize lucrative market segments with agility. Our diversification strategy, powered by exceptional execution and investment in technology, has formed the foundation of a business model built for growth."
Second Quarter 2023 Business Highlights
CTV revenue1 increased by 104% year-over-year to $7.2 million, representing 7% of Display Advertising revenue compared to 4% last year
Retail Media2 revenue increased by 63% year-over-year to $10.1 million, representing 10% of Display Advertising revenue compared to 8% last year
Video revenue increased by 14% year-over-year, representing 41% of Display Advertising revenue compared to 44% last year
The number of Average Daily Searches increased by 68% year-over-year to 28.6 million
The number of Search Advertising publishers increased by 28% year-over-year to 159
Revenue from Perion’s AI-based cookieless targeting solution, SORT®2, grew by 84% year-over-year, representing 21% of Display Advertising revenue compared to 14% last year.
1 Starting this quarter, we changed our methodology for measuring our CTV activity. We moved from measuring CTV campaigns to measuring CTV channels. The CTV growth trend under both methodologies remains in the same trajectory. Under our updated methodology, revenue generated from CTV in the second quarter of 2022 was $3.5 million vs. $5.1 million under the previous methodology; and in the first quarter of 2023 $3.9 million vs. $6.2 million.
2 Retail Media and SORT® revenue include all media channels, such as, CTV, video and others
Second Quarter 2023 Financial Highlights1
In millions,
except per share data
Three months ended
Six months ended
June 30,
June 30,
2023
2022
%
2023
2022
%
Display Advertising Revenue
$
99.4
$
81.6
+22%
$
179.3
$
150.2
+19%
Search Advertising Revenue
$
79.1
$
65.1
+21%
$
144.4
$
121.8
+19%
Total Revenue
$
178.5
$
146.7
+22%
$
323.6
$
272.0
+19%
Contribution Ex-TAC (Revenue Ex-TAC)
$
77.0
$
60.7
+27%
$
142.3
$
115.0
+24%
GAAP Net Income
$
21.4
$
19.5
+10%
$
45.2
$
35.0
+29%
Non-GAAP Net Income
$
42.1
$
24.5
+72%
$
72.0
$
45.2
+59%
Adjusted EBITDA
$
41.2
$
28.5
+45%
$
72.5
$
51.1
+42%
Adjusted EBITDA to Contribution Ex-TAC
54%
47%
51%
44%
Net Cash Provided by Operating Activities
$
47.4
$
25.7
+84%
$
65.2
$
49.3
+32%
GAAP Diluted EPS
$
0.43
$
0.41
+5%
$
0.91
$
0.74
+23%
Non-GAAP Diluted EPS
$
0.84
$
0.51
+65%
$
1.45
$
0.95
+53%
1 Contribution Ex-TAC, Non-GAAP Net Income, Adjusted EBITDA and Non-GAAP diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.
Outlook for 20232
"We are encouraged by the strong results we achieved in the first half of 2023", commented Tal Jacobson, Perion’s CEO. "Consequently, we are raising our annual revenue and adjusted EBITDA guidance to reflect increased profitability and margin expansion".
In millions
2022
Prior 2023 Guidance
Current 2023 Guidance
YoY
Growth %1
Revenue
$640.3
$725-$745
$730-$750
16%
Adjusted EBITDA
$132.4
$155+
$167+
26%
Adjusted EBITDA to Revenue
21%
21%1
23%1
Adjusted EBITDA to Contribution Ex-TAC
49%
50%1
54%1
1 Calculated at revenue guidance midpoint. Adjusted EBITDA year-over-year growth calculated based on $167 million.
2 We have not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because we do not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.
Financial Comparison for the Second Quarter of 2023
Revenue: Revenue increased by 22% to $178.5 million in the second quarter of 2023 from $146.7 million in the second quarter of 2022. Display Advertising revenue increased 22% year-over-year, accounting for 56% of total revenue, primarily due to a 14% year-over-year increase in video revenue to $40.9 million and 104% year-over-year increase in CTV revenue to $7.2 million. Search Advertising revenue increased by 21% year-over-year, accounting for 44% of revenue, primarily due to a 68% increase in Average Daily Searches and a 28% increase in the number of publishers. RPM gradually increased in the second quarter compared to the first quarter of 2023.
Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $101.5 million, or 57% of revenue, in the second quarter of 2023, compared with $86.0 million, or 59% of revenue, in the second quarter of 2022. The margin expansion was primarily due to improved product mix in addition to media buying optimization, enabled by leveraging data and buying power.
GAAP Net Income: GAAP net income increased by 10% to $21.4 million in the second quarter of 2023 from $19.5 million in the second quarter of 2022. GAAP net income in the second quarter of 2023 includes a $14.6 million fair-value adjustment of the contingent consideration payable in respect to the Vidazoo acquisition due to overachievement and an amendment to the share purchase agreement entered into effect this quarter as a result of their outstanding performance.
Non-GAAP Net Income: Non-GAAP net income was $42.1 million, or 24% of revenue, in the second quarter of 2023, compared with $24.5 million, or 17% of revenue, in the second quarter of 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Adjusted EBITDA: Adjusted EBITDA was $41.2 million, or 23% of revenue (and 54% of Contribution Ex-TAC) in the second quarter of 2023, compared with $28.5 million, or 19% of revenue (and 47% of Contribution Ex-TAC) in the second quarter of 2022. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release.
Cash Flow from Operations: Net cash provided by operating activities in the second quarter of 2023 was $47.4 million, compared with $25.7 million in the second quarter of 2022.
Net cash: As of June 30, 2023, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $483.3 million, compared with $429.6 million as of December 31, 2022.
Conference Call
Perion’s management will host a conference call to discuss the results at 8:30 a.m. ET today:
Registration link:
https://incommconferencing.zoom.us/webinar/register/WN_xMvsgXNoSAyrwYE3yNKUcA#/registration
Toll Free: 1-877-407-0779
Toll/International: 1-201-389-0914
A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website.
About Perion Network Ltd.
Perion is a global multi-channel advertising technology company that delivers synergistic solutions across all major channels of digital advertising – including search advertising, social media, display, video and CTV advertising. These channels converge at Perion’s intelligent HUB (iHUB), which connects the company’s demand and supply assets, providing significant benefits to brands and publishers.
For more information, visit Perion's website at www.perion.com.
Non-GAAP Measures
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude certain items. This press release includes certain non-GAAP measures, including Contribution Ex-TAC, Adjusted EBITDA, Non-GAAP net income and Non-GAAP earning per share.
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, depreciation, amortization of acquired intangible assets, retention and other acquisition-related expenses and gains and losses recognized with respect to changes in the fair value of contingent consideration.
Non-GAAP net income and Non-GAAP earnings per share are defined as net income and net earnings per share excluding stock-based compensation expenses, retention and other acquisition-related expenses, revaluation of acquisition-related contingent consideration, amortization of acquired intangible assets and the related taxes thereon, non-recurring expenses, 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 press release. A reconciliation between results on a GAAP and non-GAAP basis is provided in the last table of this press release.
Forward Looking Statements
This press release contains historical information and forward-looking statements within the meaning 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. 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, 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, potential litigation associated with such transactions, and general risks associated with the business of Perion including intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions, loss of key customers, unpredictable sales cycles, competitive pressures, market acceptance of new products, changes in applicable laws and regulations as well as industry self-regulation, data breaches, cyber-attacks and other similar incidents, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this press release. Various other risks and uncertainties may affect Perion and its results of operations, as described in reports filed by Perion with the Securities and Exchange Commission from time to time, including its annual report on Form 20-F for the year ended December 31, 2022 filed with the SEC on March 15, 2023. Perion does not assume any obligation to update these forward-looking statements.
PERION NETWORK LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands (except share and per share data)
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenue
Display Advertising
$ 99,379
$ 81,551
$ 179,257
$ 150,154
Search Advertising
79,091
65,105
144,363
121,817
Total Revenue
178,470
146,656
323,620
271,971
Costs and Expenses
Cost of revenue
9,589
6,861
17,148
13,474
Traffic acquisition costs and media buy
101,482
85,956
181,357
156,930
Research and development
8,236
8,336
16,589
17,369
Selling and marketing
13,857
13,955
28,812
27,293
General and administrative
7,413
6,468
13,956
12,134
Changes in fair value of contingent consideration
14,602
-
14,602
-
Depreciation and amortization
3,405
3,208
6,766
6,393
Total Costs and Expenses
158,584
124,784
279,230
233,593
Income from Operations
19,886
21,872
44,390
38,378
Financial income, net
5,158
903
8,586
1,507
Income before Taxes on income
25,044
22,775
52,976
39,885
Taxes on income
3,638
3,275
7,785
4,919
Net Income
$ 21,406
$ 19,500
$ 45,191
$ 34,966
Net Earnings per Share
Basic
$ 0.46
$ 0.44
$ 0.97
$ 0.79
Diluted
$ 0.43
$ 0.41
$ 0.91
$ 0.74
Weighted average number of shares
Basic
46,961,028
44,439,023
46,673,439
44,238,414
Diluted
49,637,258
47,292,249
49,551,061
47,210,769
PERION NETWORK LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
June 30,
December 31,
2023
2022
(Unaudited)
(Audited)
ASSETS
Current Assets
Cash and cash equivalents
$ 185,928
$ 176,226
Restricted cash
1,315
1,295
Short-term bank deposits
225,300
253,400
Accounts receivable, net
140,734
160,488
Prepaid expenses and other current assets
18,947
12,049
Marketable Securities
72,090
-
Total Current Assets
644,314
603,458
Long-Term Assets
Property and equipment, net
3,181
3,611
Operating lease right-of-use assets
8,318
10,130
Goodwill and intangible assets, net
241,235
247,191
Deferred taxes
6,414
5,779
Other assets
52
49
Total Long-Term Assets
259,200
266,760
Total Assets
$ 903,514
$ 870,218
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable
$ 145,639
$ 155,854
Accrued expenses and other liabilities
29,861
37,869
Short-term operating lease liability
3,920
3,900
Deferred revenue
1,978
2,377
Short-term payment obligation related to acquisitions
69,333
34,608
Total Current Liabilities
250,731
234,608
Long-Term Liabilities
Payment obligation related to acquisition
-
33,113
Long-term operating lease liability
5,480
7,580
Other long-term liabilities
10,811
11,783
Total Long-Term Liabilities
16,291
52,476
Total Liabilities
267,022
287,084
Shareholders' equity
Ordinary shares
405
398
Additional paid-in capital
522,217
513,534
Treasury shares at cost
(1,002)
(1,002)
Accumulated other comprehensive loss
(1,105)
(582)
Retained earnings
115,977
70,786
Total Shareholders' Equity
636,492
583,134
Total Liabilities and Shareholders' Equity
$ 903,514
$ 870,218
PERION NETWORK LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In thousands
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Cash flows from operating activities
Net Income
$ 21,406
$ 19,500
$ 45,191
$ 34,966
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
3,405
3,208
6,766
6,393
Stock-based compensation expenses
3,100
2,701
6,502
5,129
Foreign currency translation
(11)
(128)
(13)
(174)
Accrued interest, net
2,150
(639)
(2,031)
(1,181)
Deferred taxes, net
(554)
(44)
(476)
(248)
Accrued severance pay, net
(1,873)
409
(275)
503
Gain from sale of property and equipment
(5)
(6)
(17)
(6)
Net change in operating assets and liabilities
19,754
720
9,504
3,893
Net cash provided by operating activities
$ 47,372
$ 25,721
$ 65,151
$ 49,275
Cash flows from investing activities
Purchases of property and equipment, net of sales
(217)
(177)
(351)
(429)
Marketable securities, net
(20,789)
-
(72,195)
-
Short-term deposits, net
26,000
(1,000)
28,100
(33,400)
Cash paid in connection with acquisitions, net of cash acquired
-
(6,170)
-
(9,570)
Net cash provided by (used in) investing activities
$ 4,994
$ (7,347)
$ (44,446)
$ (43,399)
Cash flows from financing activities
Proceeds from exercise of stock-based compensation
125
346
2,188
1,294
Payments of contingent consideration
-
(9,091)
(13,256)
(9,091)
Net cash provided by (used in) financing activities
$ 125
$ (8,745)
$ (11,068)
$ (7,797)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
8
(147)
85
(177)
Net increase (decrease) in cash and cash equivalents and restricted cash
52,499
9,482
9,722
(2,098)
Cash and cash equivalents and restricted cash at beginning of period
134,744
93,955
177,521
105,535
Cash and cash equivalents and restricted cash at end of period
$ 187,243
$ 103,437
$ 187,243
$ 103,437
PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
In thousands
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
Total Revenue
$ 178,470
$ 146,656
$ 323,620
$ 271,971
Traffic acquisition costs and media buy
101,482
85,956
181,357
156,930
Contribution Ex-TAC
$ 76,988
$ 60,700
$ 142,263
$ 115,041
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
GAAP Income from Operations
$ 19,886
$ 21,872
$ 44,390
$ 38,378
Stock-based compensation expenses
3,100
2,701
6,502
5,129
Retention and other acquisition-related expenses
250
679
257
1,230
Changes in fair value of contingent consideration
14,602
-
14,602
-
Amortization of acquired intangible assets
2,992
2,812
5,955
5,601
Depreciation
413
396
811
792
Adjusted EBITDA
$ 41,243
$ 28,460
$ 72,517
$ 51,130
PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
In thousands (except share and per share data)
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
GAAP Net Income
$ 21,406
$ 19,500
$ 45,191
$ 34,966
Stock-based compensation expenses
3,100
2,701
6,502
5,129
Amortization of acquired intangible assets
2,992
2,812
5,955
5,601
Retention and other acquisition-related expenses
250
679
257
1,230
Changes in fair value of contingent consideration
14,602
-
14,602
-
Foreign exchange losses (gains) associated with ASC-842
(81)
(548)
(198)
(745)
Revaluation of acquisition-related contingent consideration
147
129
292
261
Taxes on the above items
(289)
(771)
(574)
(1,212)
Non-GAAP Net Income
$ 42,127
$ 24,502
$ 72,027
$ 45,230
Non-GAAP diluted earnings per share
$ 0.84
$ 0.51
$ 1.45
$ 0.95
Shares used in computing non-GAAP diluted earnings per share
49,922,156
47,906,671
49,832,074
47,744,781
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802202555/en/
Contacts
Perion Network Ltd.
Dudi Musler, VP of Investor Relations
+972 (54) 7876785
dudim@perion.com
Perion Network Positioned for Growth in Search Advertising with Enhanced Bing Offering, Says Analyst
3:06 pm ET July 10, 2023 (Benzinga) Print
Needham analyst Laura Martin reiterates Perion Network Ltd (NASDAQ: PERI) with a Buy and a $42 price target.
Perion (PERI) reports gross revenues in two categories each quarter: 1) Display Advertising; and 2) Search Advertising. In 1Q23, the Search Advertising segment represented 45% of PERI's total gross revenues, similar to Search's 44% for FY22.
In this report, the analyst did a deep dive into how PERI makes money in Search and why she expects this revenue stream to grow.
Historically, the primary reason customers chose Microsoft Corp (NASDAQ: MSFT) Bing was a higher share of ad revenues, the analyst believes.
ChatGPT has added a compelling new selling point for Bing, and PERI is having an easier time getting new clients to switch to Bing, which should drive faster growth, she believes.
PERI's next CEO, Tal Jacobson, has led the Search segment since 2018 and has overseen its rapid revenue growth.
PERI is a distributor for Bing globally. Microsoft has given PERI the right to put Bing on browsers, devices, and websites globally for a share of the ad dollars on Bing's results pages.
If a consumer uses the Firefox browser, Bing is the default search engine. That is, every time a consumer enters a keyword into the search box, Bing delivers results with ads. If Firefox is PERI's client, PERI gets a revenue share of every Bing ad dollar earned on Firefox until the contract ends.
Lenovo's laptops use Bing as their default search engine. If Lenovo is a client of PERI's, then every time a consumer searches using Bing, PERI gets a rev share of the ad revs on each search results page.
Of every $100 an advertiser pays MSFT for Bing, Martin estimates that MSFT keeps 15%-25% and pays out 75%-85% to PERI. She estimates that PERI typically keeps 25%-30% and pays out 45%-60% to the publisher.
Once PERI launches Bing for a new client, 100% of the ad units on Bing's search results are exclusive to PERI. Said another way, PERI gets paid a revenue share of every ad on all Bing search results on that publisher/device/ browser, etc. (i.e., client) until the contract ends.
Today, PERI sells Bing to enterprises in 62 countries where MSFT has a critical mass of advertisers.
After PERI convinces a new client to use Bing as its default search engine, it must get MSFT's approval before launch. Approvals and tech integration typically take 1 to 3 months, depending on the new client. Both represent material barriers to entry.
There are a total of about a dozen total distributors for Bing globally, Martin estimates. She believes PERI is among the largest, especially since Microsoft's Advertising division awarded PERI's Search subsidiary (called CodeFuel) top honors as its 2021 Supply Partner of the Year for EMEA.
A key positive of PERI's Search revenues is the positive working capital aspects of the Bing deal.
PERI.... $36.50 .. After much thought about Spruce point, I kept all my shares, My fingers are crossed.
Perion Network Expects 20% YoY Revenue Growth and 40% YoY Increase in Adjusted EBITDA in Second Quarter 2023
July 6, 2023
Company to announce second quarter 2023 financial results and updated annual outlook on August 2, 2023
TEL AVIV & NEW YORK, July 06, 2023--(BUSINESS WIRE)--Perion Network Ltd. (Nasdaq & TASE: PERI), a global advertising technology company whose synergistic solutions are delivered across the three primary channels of digital advertising – search, social media and display/video/CTV advertising, today announced preliminary results for the second quarter of 2023.
$ million
Actual
Q2 2022
Preliminary
Q2 2023
YoY
Revenue
146.7
176.0
20%
Adjusted EBITDA(1)
28.5
40.0
40%
Adjusted EBITDA to Revenue(1)
19%
23%
(1) Adjusted EBITDA is a non-GAAP measure. See a reconciliation table below
"The strength of our second quarter results reflects continued momentum of the business," said Tal Jacobson, Perion’s incoming CEO. "Both the second quarter and first six months highlight the power of our executional agility, underlying technological innovation and market fit. Our diversified and scalable business model has allowed us to capitalize on recent positive market indications, resulting in improved margins and market share gains. Based on preliminary data suggesting stronger than initially anticipated growth, we will provide an update to our annual outlook when we report our financial results on August 2."
Conference Call Details
Perion will release its financial results for the second quarter of 2023 on Wednesday, August 2, 2023, prior to the opening of the financial markets. Incoming CEO Tal Jaconson and CFO Maoz Sigron will host a conference call to discuss the results at 8:30
Spruce Point shorts ad-tech firm Perion Network
Tue, May 23, 2023 at 6:21 AM PDT
In this article:
PERI
-1.15%
(Reuters) -Spruce Point Capital Management said on Tuesday it was short on ad technology firm Perion Network, as it had concerns about the accuracy of the company's "financial reporting, efficacy of its product suite, and the sustainability of its growth."
Shares of the company fell 4.9% in trading before the bell.
"Perion has a history of business model pivots that spark unsustainable improvements in performance and share price," said the New York-based short-seller, which issued a "strong sell" rating on Perion.
"We believe this time is no different and will end poorly for investors."
Perion did not immediately respond to a request for comment.
Spruce Point said it sees a 25% to 40% long-term downside risk to Perion’s share price and it was concerned about the company's "extreme dependency" on its partnership with Microsoft.
The investment firm said in its report that in 2021 and 2022, Perion reported that 37% and 35% of the company's revenue came from Microsoft.
(Reporting by Chavi Mehta in Bengaluru; Editing by Maju Samuel)
PERI.... $32 Buy the dip, Sell the rip ????
From the CC...
"Our first quarter reflected search numbers were boosted by a significant increase of 29% in the number of publishers, they sense the potential and want to be part of it. As a result, average daily traffic increased dramatically by nearly 50% year-over-year and are now close to a 30 million monetized search a day on an average basis.
We believe that the massive media attention to ChatGPT 4 has driven a material portion of this and that will continue to see growth that exceeds our normative project. Microsoft being has a real competitive advantage now and that cascade immediately to our business." - Doron, CC
"Our first quarter reflected search numbers were boosted by a significant increase of 29% in the number of publishers, they sense the potential and want to be part of it. As a result, average daily traffic increased dramatically by nearly 50% year-over-year and are now close to a 30 million monetized search a day on an average basis.
We believe that the massive media attention to ChatGPT 4 has driven a material portion of this and that will continue to see growth that exceeds our normative project. Microsoft being has a real competitive advantage now and that cascade immediately to our business." - Doron, CC
PERI... $34 ... Earnings Today..
Perion’s Momentum Continues, Delivering 16% Revenue Growth and 54% Increase in Net Income
Wed, May 3, 2023 at 6:39 AM EDT
In this article:
PERI.TA
-1.62%
Watchlist
Significant Event | 1dyahoo plus badge
Perison Reports Qtrly GAAP Diluted EPS $0.48
PERI
-3.06%
Company raises Annual Guidance, Reflecting Continued Media Margin Expansion and Strong Growth Drivers
TEL AVIV, Israel & NEW YORK, May 03, 2023--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ & TASE: PERI), a global advertising technology company whose synergistic solutions are delivered across the three primary channels of digital advertising – ad search, social media, and display/video/CTV advertising – today reported its financial results for the first quarter ended March 31, 2023.
Doron Gerstel, Perion’s CEO, stated, "We continue to outperform the adtech industry despite the challenging macro environment, as reflected in our ongoing market share gains and increased efficiencies, which are made possible by our innovative technology. All of these collectively, are driving top-line growth and margin expansion".
"We are growing in the areas where technology matters most," added Mr. Gerstel. "These include video – which continues to represent an increasing portion of our display revenue; our fast-growing retail media channel; our privacy-first targeting solution SORT®, and our search advertising solution. The rapid emergence of ChatGPT in the market and Microsoft’s mission to further expand the role of AI within search, has elevated user interest in Bing. As a result, we experienced a 49% year-over-year growth in average daily searches, as well as a lift in new publishers".
"Our ongoing margin and top-line growth are the result of our ability to consolidate cross channel data signals in a central place – Perion’s iHUB. Advanced proprietary AI technology powers a centralized bidding system that maximizes unit revenue (CPM), while reducing media cost and simultaneously meeting our customer ROAS (Return on Ad Spend) expectations," added Mr. Gerstel.
First Quarter 2023 Business Highlights
Media margin increased to 45%, compared with 43% in the first quarter of 2022
Video revenue increased by 26% year-over-year, representing 44% of Display Advertising Revenue compared with 41% last year
The number of video platform publishers increased by 63% year-over-year to 75 publishers
Revenue from retained video platform publishers increased by 71% year-over-year
Average revenue per video platform publisher increased by 22% year-over-year
CTV revenue increased by 12% year-over-year, representing 8% of Display Advertising Revenue - similar to last year, with the number of CTV customers nearly doubling
Retail Media revenue increased by 60% year-over-year, representing 8% of Display Advertising Revenue compared with 6% last year, with the number of retail media customers up 32% over the same period
SORT® spending increased by 93% year-over-year, representing 17% of Display Advertising Revenue, driven by a 142% increase in the number of customers
The number of search advertising publishers increased by 29% year-over-year, while the number of average daily searches increased by 49% to 26.3 million over the same period
First Quarter 2023 Financial Highlights(1)
In millions,
except per share data
Three months ended
March 31,
2023
2022
%
Display Advertising Revenue
$
79.9
$
68.6
+16%
Search Advertising Revenue
$
65.3
$
56.7
+15%
Total Revenue
$
145.2
$
125.3
+16%
Gross Profit (Revenue ex-TAC)
$
65.3
$
54.3
+20%
GAAP Net Income
$
23.8
$
15.5
+54%
Non-GAAP Net Income
$
29.9
$
20.7
+44%
Adjusted EBITDA
$
31.3
$
22.7
+38%
Adjusted EBITDA to Revenue ex-TAC
48%
42%
Net Cash from Operations
$
17.8
$
23.6
-25%
GAAP Diluted EPS
$
0.48
$
0.33
+45%
Non-GAAP Diluted EPS
$
0.60
$
0.44
+36%
(1) See below reconciliation of GAAP to Non-GAAP measures.
Outlook for 2023
"Given our current visibility, and the sustainability and predictability of our business model, we feel confident in raising annual guidance for the full year 2023. The management transition announced in February is on track and I am confident that Perion will continue to thrive under Tal Jacobson’s leadership," concluded Mr. Gerstel.
In millions
2022
Prior 2023 Guidance
Current 2023 Guidance
YoY
Growth %1
Revenue
$640.3
$720-$740
$725-$745
15%1
Adjusted EBITDA
$132.4
$149-153
$155+
17%
Adjusted EBITDA to Revenue
21%
21%1
21%1
Adjusted EBITDA to Revenue ex-TAC
49%
50%1
50%1
(1) Calculated at revenue guidance midpoint
Financial Comparison for the First Quarter of 2023
Revenue: Revenue increased by 16% to $145.2 million in the first quarter of 2023 from $125.3 million in the first quarter of 2022. Display Advertising Revenue increased by 16% year-over-year, accounting for 55% of total revenue. Growth was primarily due to a 26% increase in video revenue, 12% increase in CTV revenue, 93% increase in SORT® customer spending and a 60% year-over-year increase in Retail media revenue. Search Advertising Revenue increased by 15% year-over-year, accounting for 45% of revenue, primarily due to a 29% increase in the number of publishers and a 49% increase in average daily searches, offsetting a 22% decrease in RPM.
Traffic Acquisition Costs ("TAC"): TAC amounted to $79.9 million, or 55% of revenue, in the first quarter of 2023, compared with $71.0 million, or 57% of revenue, in the first quarter of 2022. The improvement in media margin was primarily due to our proprietary iHUB technology which optimizes media buying and reduces our media cost, as well as Search and Display advertising product mix.
Net Income: On a GAAP basis, net income increased by 54% to $23.8 million in the first quarter of 2023 from $15.5 million in the first quarter of 2022. Non-GAAP net income was $29.9 million, or 21% of revenue, in the first quarter of 2023, compared with $20.7 million, or 17% of revenue, in the first quarter of 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.
Adjusted EBITDA: Adjusted EBITDA was $31.3 million, or 22% of revenue and 48% of revenue ex-TAC, in the first quarter of 2023, compared with $22.7 million, or 18% of revenue and 42% of revenue ex-TAC, in the first quarter of 2022. A reconciliation of GAAP Net Income to Adjusted EBITDA is included in this press release.
Cash Flow from Operations: Net cash provided by operating activities in the first quarter of 2023 was $17.8 million, compared with $23.6 million in the first quarter of 2022. Operating cash flow was affected by the shift of approximately $8 million in customer collection from March 2023 to April 2023 and a one-time change in working capital needs.
Cash, cash equivalents, short-term bank deposits and marketable securities: As of March 31, 2023, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $436.3 million, compared with $429.6 million as of December 31, 2022. The $6.7 million increase is primarily a result of $17.8 million in cash from operations, partially offset by $13.3 million cash paid in connection with acquisitions.
Conference Call
Perion management will host a conference call to discuss the results at 8:30 a.m. ET today. Call details:
Registration link:
https://incommconferencing.zoom.us/webinar/register/WN_Uje6WNcQSpmH5CcsC3x4pg
Toll Free: 1-877-407-0779
Toll/International: 1-201-389-0914
A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website.
About Perion Network Ltd.
You make a great point about uplisting. For years I have heard talk about a merge with Trienda
maybe they will merge, that would add a huge amount of revenue and hype could send us over $3. Just the fact they have a CC tells me something big is in the works. JMO
PERI... Bought during the pandemic at an avg of $16. See what Bing brings, should know soon.
Great interview , Thx for posting. Phone is ringing off the hook and they are moving to a higher exchange, Nasdaq?? 20 million mkt cap and soon to be 100 million in revenue..
This has a lot higher to go in my opinion.
Great quarter!!! JMO
Thanks for your post!
I was waiting for the press release today so I could get more color on the buyback & new lines. What i did get was major expansion news??
I sold enough shares last year to get my money out, I do however think this is going over $2.50 so I'm holding the rest of my shares.
From today's press release.. New tools for exciting new lines,Sounds like the margins may be better??
New tools are arriving in the next few months for exciting new lines of business we
anticipate will push top line and bottom-line growth. The recently reported new contract for $13,500,000 of recycled pallets to a national
retailer is expected to have a definite impact. We appreciate the support of our shareholder base as we continue to be an environmental
leader providing the best plastic recycled pallets in the market
Thank you for the info.
Great news!!! I wonder if it's Target, Amazon or Walmart?
Greystone Logistics secures $13.5M contract from a nationwide retailer
AACQ $9.86... Blank check company..
I bought a few for a long term hold.
Origin Materials Lands SPAC Deal: What Investors Should Know About Pepsi-, Danone-, Nestle-Backed Company
11:30 am ET February 17, 2021 (Benzinga) Print
A leader in disruptive materials technology will become the first public pure play carbon negative materials company with a SPAC deal announced Wednesday.
The SPAC Deal: Origin Materials is going public with Artius Acquisition Inc (NASDAQ: AACQ) in a deal valuing the company with an equity value of $1.8 billion.
Existing investors in Origin Materials include PepsiCo (NASDAQ: PEP), Danone and Nestle SA (OTC: NSRGY).
All three companies are investing in the PIPE on this SPAC deal. PepsiCo, Danone and Nestle will own 11% of the new company.
Current Artius Acquisition shareholders will own 39.3% of the new company. The company will trade as "ORGN" on the Nasdaq if the merger is approved.
Related Link: 10 SPACs Trading Under $11 For Investors To Consider In 2021
About Origin Materials: With a patented breakthrough platform, Origin Materials creates useful materials by using wood residue and non-food sources.
The company said it expects to be cost competitive with petroleum-based materials while also producing net zero emissions.
Origin Materials estimates that 55% of global carbon emissions come from energy and transportation and 45% come from the production and consumption of materials and industrial products.
Origin's Growth Projections: Origin lists a $1-trillion opportunity in its presentation and a variety of potential end products.
The company said it has over $1 billion in signed customer contracts, including from the three large companies that are investors.
An additional $400 million in customer contracts are under negotiation, the company said in its presentation.
Origin is creating recyclable, 100% plant-based plastic bottles with partners Danone, Nestle and PepsiCo.
The company estimates that its first plant will be completed in 2022 with additional plants coming and a full-scale commercial plant up and running by 2025.
Leading institutions and several countries are committing to a net zero future, which could make Origin Materials a stock that benefits from the growing demand and macro shift.
Origin's Financials: Origin Materials said it will not have revenue until fiscal year 2023. For fiscal 2023, the company estimates $60 million in revenue.
The real revenue ramp-ups will come in fiscal 2025 and fiscal 2030, the company said. When a full-scale commercial plant is online in 2025, Origin Materials estimates revenue of $475 million.
In fiscal 2030, the company estimates revenue of $4 billion and seven plants up and running.
AACQ Price Action: Shares of Artius Acquisition were down 7.14% at $13 at last check Wednesday. Shares closed up 24% Tuesday on rumors of the SPAC merger.
Bid $1.45 Ask $1.46 WOW!! Can't find any news tho.
Have you noticed the triple zero market take off?
You were the penny stock king a few years ago.
TSNP went from .0001 to $1.74.
Just for kicks I bought $1,000 worth of DLAD at .0001 now it's up to .0004 in less than a week.
Can you give a list of what your buying for a trade or a hold?
TIA
So IGPS is supplying their own pelletized resin.
That explains it for me. Thanks for your post.
I'm thinking it means better margins ?
Also paying down debt is very good.
Miller news is bad but I like this.... We have evaluated this impact in conjunction with other adjustments that were made with the customer and do not expect that it will have a material adverse effect on Greystone’s consolidated financial statements.”
I'm am going to continue to hold at least for now. JMO
GREYSTONE LOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE THREE MONTHS AND SIX MONTHS ENDED NOVEMBER 30, 2020
Greystone Logistics Inc.
Tue, January 19, 2021, 6:00 AM
Tulsa, OK, Jan. 19, 2021 (GLOBE NEWSWIRE) -- GREYSTONE LOGISTICS, INC. (OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports results of operations for the three months and six months ended November 30, 2020.
Greystone recorded net income available to common stockholders (net income less preferred dividends and income from non-controlling interests) for the three months ended November 30, 2020 of $873,180, or $0.03 per share, compared to $304,428, or $0.01 per share, in the prior period. Net income available to common stockholders for the six months ended November 30, 2020 was $1,733,381, or $0.06 per share, compared to $746,678, or $0.03 per share for the prior period. EBITDA for the six months ended November 30, 2020 was $6,614,164 compared to $4,886,619 for the six months ended November 30, 2019. Sales for the three months and six months ended November 30, 2020 were $15,523,318 and $33,091,494, respectively, compared to $19,503,462 and $38,167,971 in the prior periods, respectively. Greystone’s net income was $1,023,073 and $2,032,231 for the three months and six months ended November 30, 2020, respectively, compared to $472,685 and $1,091,984 in the prior periods, respectively.
“Greystone achieved significant increases in earnings for both the three months and six months ended November 30, 2020 compared to the comparable prior periods,” stated CEO Warren Kruger. Kruger continued, “These increased earnings resulted primarily from restructuring the pricing for certain pallets. This restructuring of pricing resulting from changes in the manufacturing process led to the decline in dollar sales, despite comparable unit sales for the periods. A major beer customer has notified us that beginning January 1, 2021, they will be diversifying purchases of case pallets between Greystone and another vendor; however, Greystone will continue to be the sole provider for the keg pallet. We have evaluated this impact in conjunction with other adjustments that were made with the customer and do not expect that it will have a material adverse effect on Greystone’s consolidated financial statements.”
“During the six months ended November 30, 2020, Greystone continued to show substantial improvement in its ratio of equity to total assets from 17.6% as of May 31, 2020 to 24.3% as of November 30, 2020. The net reduction in debt and financing leases from May 31, 2020 to November 30, 2020 was $4.6 million. The debt includes $3,034,000 funding from the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security Act (“CARES”). The CARES act includes provisions to apply for forgiveness of the PPP loan, and Greystone plans to submit the application.”
“The impact of COVID-19 has created much uncertainty in the workplace. The major issue that Greystone has faced is maintaining adequate workforce to meet demand for pallets. The virus has affected the overall workforce in our operating area as well as our own workforce. Employees electing to say at home for protection from COVID-19 and reductions in recruitment of new employees continues to impact the Company’s pallet production. Going forward, we anticipate that the new COIVD-19 vaccine will have a positive impact but are unable to predict the stability of our workforce as long as the virus stays active.”
Greystone Logistics is a "Green" manufacturing company that reprocesses recycled plastic and designs, manufactures and sells high quality 100% recycled plastic pallets that provide logistical solutions for a wide range of industries such as the food and beverage, automotive, chemical, pharmaceutical and consumer products. The Company's technology, including a proprietary blend of recycled plastic resins used in the injection molding equipment and patented pallet designs, allows production of high-quality pallets more rapidly and at lower costs than many other processes. The recycled plastic for Greystone’s pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resin.
Earnings should be around the 15th.
We should also get a press release this time.
This guy is saying spring or early summer.
https://finance.yahoo.com/news/gm-os-jeremy-grantham-warns-the-stock-market-is-in-a-fullyfledged-epic-bubble-185722585.html
If this happens, SOXS is the place to be.
It will be interesting to see what bit coin does,
Gold should fly.. JMO
https://finance.yahoo.com/news/gm-os-jeremy-grantham-warns-the-stock-market-is-in-a-fullyfledged-epic-bubble-185722585.html
INTERVIEW: Get Your SPAC Game on with Skillz
2 Months Ago 9 Minutes Read
Share On Facebook
Share On Twitter
Skillz Chief Executive Officer Andrew Paradise
By Jarrett Banks
First it was the pandemic. Then it was the SPAC boom. The lockdown led to the best quarter ever for mobile gaming company Skillz Inc., and now it will go public through a merger with blank-check company Flying Eagle Acquisition Corp. (NYSE: FEAC, FEAC-UN, FEAC-WT), giving it a valuation of $3.5 billion. SPACs have represented nothing less than a sea change for investors who are looking beyond traditional shares of publicly-traded companies to reap gains.
Flying Eagle is headed by CEO Harry Sloan, who has teamed up with Jeff Sagansky and Eli Baker, who return to the game after working together to take DraftKings (Nasdaq: DKNG) public in April.
In an interview with IPO Edge, Skillz Chief Executive Officer Andrew Paradise said the company is still sometimes misunderstood: It’s more of a data and financial payments system than a video game system. The full interview is below:
IPO Edge: What is Skillz?
Skillz was founded on one simple belief: everyone loves to compete. We are building the competition layer of the internet by re-inventing competitive mobile gaming. Our proprietary technology platform revolutionizes and democratizes the mobile gaming industry, enabling developers to monetize their games through competition and deliver experiences that players trust and love.
To put this into perspective, Skillz is the only mobile gaming platform that enables over $1.6 billion in gross marketplace volume (GMV) and facilitates more than two billion esports tournaments every year. The interactive and highly social experiences we create result in our player community engaging 62 minutes on average per day seeking out fair, fun, and meaningful competition.
We are highly differentiated in that our platform is built to expand the mobile gaming market by realigning the interests of players and developers. In our model, greater user engagement directly leads to increased developer revenue. More revenue then enables developers to build more content for our platform, which, in turn, increases user engagement and retention. By generating higher player to payor conversion, retention, and engagement, we are able to monetize users at a rate more than five times higher than what developers would generate through advertisements or in-game purchases. This alignment creates a virtuous cycle that delivers powerful network effects.
We expect our revenue to grow from $225 million in 2020 to $555 million in 2022, a 57% CAGR. We have a highly scalable business model with 95% gross margins. As we grow, we expect to achieve EBITDA margins over 30%.
IPO Edge: What’s the market opportunity for mobile gaming, and how do you plan to capitalize on it?
The gaming industry is larger than movies, music, and books, with more than 2.7 billion gamers playing monthly and 10 million developers worldwide. What’s more, gaming is also expected to surpass television in the next five years.
Within the broader gaming universe, mobile is the fastest-growing segment, expected to increase from $68 billion last year to $150 billion in 2025. In the U.S., there are 203 million gamers and our platform attracts 2.6 million monthly active users (MAU), so we’re just scratching the surface with less than 1.5% of the market. Also, only 10% of our players compete in prized tournaments, so the other 90% represents an opportunity for additional monetization.
The opportunity to expand internationally is compelling as well. In 2019, we generated more than 90% of our revenue from users in North America, even though the international market is approximately four times larger than the North American market. We believe we have the potential to reach these users through our existing channels and developer partners creating localized content.
We see a significant opportunity for our developers to expand beyond casual content into other genres by powering competitive experiences in every type of game, including first-person shooters, real-time strategy, and racing games. We are making strategic investments to foster diversified content production across our developer partnerships.
We also believe brand advertisers sponsoring prizes represent a material business opportunity for us to both broaden our reach and increase profitability. Brand advertisers are seeking new ways to engage with existing and potential customers online, and are increasingly looking to us for sponsorship opportunities. These types of competitions allow us to reduce the amount of paid prizes and competitions we have to fund, which helps to lower operating costs. Our recent partnership with Bowlero Corp, the worldwide leader in bowling entertainment, is a great example of the type of brand-sponsored competitions we’re capable of executing.
IPO Edge: Please explain how you monetize the platform and the path to profitability.
Skillz currently monetizes through a transaction-based model where the company receives a portion of tournament entry fees. The model is similar to Shopify, which charges a percentage of the merchandise sold by its ecommerce customers. We’ve redesigned the mobile gaming ecosystem so that all the parties are aligned for success. In our model, the more players enjoy their experience, the more money developers make. By providing users with a better experience, Skillz drives higher engagement, retention, and payor conversion, enabling our platform to out-monetize ads and in-game purchases.
Like the Olympics, competition is universally enjoyed – it cuts across age, gender, and socio-economic status. Being competitive is human nature. Competition is an evergreen experience, driving higher retention.
We could be profitable today, but we are strategically reinvesting in our growth given the rapidly expanding market and ROI we’re seeing. Our three-year lifetime value to customer acquisition cost ratio has averaged 4.7x over the past several years. We’ve proven our ability to generate high returns, and plan to continue investing to fuel growth.
IPO Edge: How has your business been impacted by the pandemic?
We’re fortunate that everyone needs more digital entertainment while at home, but the reality is we’ve been growing rapidly for years. When you look at our broader historical performance, we’ve already been doubling or tripling revenue annually over the past several years. Our business has also been resilient during COVID-19, enabling us to thrive.
IPO Edge: Why go public now?
When I decided to join Skillz full-time about seven years ago, the company included my co-founder Casey Chafkin (who today is our Chief Revenue Officer), and five engineers. From the outset, our focus was on building a long-term independent company that we’d eventually take public. I told the team that if everything went well, it would take us 8 to 12 years to do that. After seven years – a period during which we managed to double or triple the business every year – we are on track to achieve that goal.
We look at going public as a milestone, but it’s not the end of the race. Going public gives us greater access to capital, enabling us to grow faster than we could as a private company. We’re building a 100-year vision for an independent company, and we look forward to working with our developer partners to bring Skillz-powered competitions to every kind of game for billions of players worldwide. We believe the future of gaming is something everyone should share in.
IPO Edge: Please explain why you believe you have a deep technology moat.
Data science is really our secret sauce and the deepest competitive moat around our business. We’ve spent eight years building data science technologies and developing our proprietary platform, resulting in a robust portfolio of 58 issued and pending patents.
We currently analyze 1.5 billion data points per day, which we use to enhance our data-driven algorithms, continuously fortifying our position as the world’s leading competitive mobile gaming platform. To put this into perspective, we ingest 300 data points for every five minutes of gameplay, and we’re running five million tournaments every day. Given that, you can imagine the intensity and level of our data warehousing and processing.
Our algorithms and machine learning technologies augment all sides of our platform. Key features of our proprietary data science technologies include anti-cheat, anti-fraud, player rating/matching, and segmentation engine. Strong anti-cheat and anti-fraud protections are among the most critical elements to foster a healthy competitive ecosystem, because they maintain the trust and fairness of the user experience.
Above all, the Skillz brand is rooted in trust and fairness – and our deep technology and data moats provide us with a strong competitive advantage.
IPO Edge: How are you different from other gaming platforms?
We’ve built a business that’s really hard to replicate. Amazon and Sony have tried to compete with us but failed, along with approximately 30 venture-backed startups. Winning in this market is all about protecting the consumer from cheating and fraud, and that is what we prioritize. Just like PayPal enabled the growth of ecommerce, we’re enabling the growth of competitive mobile gaming by providing players with the confidence to compete online.
Importantly, our data science – which includes proprietary algorithms and machine learning technologies to ensure fair, fun, and meaningful competitive gameplay – also differentiates us. We’re providing players with the confidence to transact on our platform and developers with the necessary tools to compete with the largest and most sophisticated mobile game developers in the world. We have 58 granted and pending patents.
We’ve built a technology platform that is a go to market solution for thousands of developers. What a lot of people don’t understand about our business is that Skillz is not so much a video game system as much as it is a data and financial payments system, and that video games are sitting on top of it.
Jarrett Banks
Editor-at-Large
IPO Edge
www.IPO-Edge.com
jb@capmarketsmedia.com
Twitter: @IPOEdge
Instagram: @IPOEdge
10-15-19 the 10-Q was released. On 11-05-19 the 8-K.
So it should be any day now.
I wish they would put out the PR sooner but it makes me hope something big is coming. LOL
Entercom and FanDuel Announce Landmark Strategic Partnership
October 29 2020 - 12:00PM
Business Wire
Alert
Print
Share On Facebook
FanDuel Becomes the Official Sportsbook of Entercom, Creating Industry-Leading Sports Audio and Sports Betting Destination
Today, Entercom Communications Corp. (NYSE: ETM) and FanDuel announce a six-year partnership designating FanDuel, the leading online sports and entertainment company, as the official sportsbook partner of Entercom across its best-in-class sports broadcast stations and RADIO.COM, the fastest growing digital audio platform in America. The partnership brings together America’s #1 Sportsbook with the #1 sports audio company in the United States.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201029005393/en/
This ground-breaking deal unites two industry titans in a shared mission to entertain, engage, and inform sports fans around all aspects of the game and represents a new model between a sports gaming operator and sports media platform. As part of the deal, Entercom listeners will have unique access to FanDuel odds, insight, and promotion via Entercom on-air stations and personalities. Entercom and FanDuel will also collaborate on in-depth integrations and co-produce content that will pioneer the industry with all-new formats.
Under the agreement, FanDuel will be the official sportsbook of Entercom, and receive preferred and increased category access to all Entercom talent in every market where Entercom and FanDuel both operate. The partnership brings FanDuel’s sports betting content, industry-leading products, and risk and trading expertise to the fingertips of Entercom sports fans via a comprehensive integration across the largest sports audio platform in the country.
“Entercom has revolutionized the audio and entertainment industries and we’re beyond excited to be their preferred partner in the sports betting and fantasy categories, said Matthew King, Chief Executive Officer, FanDuel. “In the two years we have been doing business with Entercom, it is abundantly clear to us that their authentic connection to sports fans is one of the best ways for us to engage FanDuel customers. We will work together to offer sports fans access to information wherever, whenever, and however they consume content, providing them with the tools to learn and win.”
“We believe this is the largest advertising commitment ever made within the radio industry. We are focused on delivering the best sports betting experience for our audiences in markets where legalized sports betting will be pervasive,” said David Field, President and Chief Executive Officer, Entercom. “The marketplace is growing exponentially and FanDuel is an ideal partner to take full advantage of the influence and reach of Entercom’s robust sports platforms to deliver an even better, audio sports experience to our listeners.”
Entercom is the unrivaled leader in sports radio, reaching three times more people than the leading competitor. Entercom is the #1 sports radio ownership group, which owns and operates 39 all-sports stations across the U.S., including WFAN 101.9 FM/660 AM (WFAN-FM/AM) in New York, SportsRadio 94WIP (WIP-FM) in Philadelphia and 670 The Score (WSCR-AM) in Chicago. Its unparalleled broadcast portfolio reaches nearly 30 million sports fans monthly and boasts the nation’s leading collection of radio play-by-play coverage. Entercom also serves as the flagship home of 41 professional teams and over 50 Division 1 collegiate programs, including the New York Yankees and Boston Red Sox, Dallas Cowboys and Kansas City Chiefs, Golden State Warriors and Chicago Bulls, and University of Michigan and University of Oregon, among others.
FanDuel was represented in the conversation by AdResults Media.
ETM .. You still in?
Entercom and FanDuel Announce Landmark Strategic Partnership
October 29 2020 - 12:00PM
Business Wire
Alert
Print
Share On Facebook
FanDuel Becomes the Official Sportsbook of Entercom, Creating Industry-Leading Sports Audio and Sports Betting Destination
Today, Entercom Communications Corp. (NYSE: ETM) and FanDuel announce a six-year partnership designating FanDuel, the leading online sports and entertainment company, as the official sportsbook partner of Entercom across its best-in-class sports broadcast stations and RADIO.COM, the fastest growing digital audio platform in America. The partnership brings together America’s #1 Sportsbook with the #1 sports audio company in the United States.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201029005393/en/
This ground-breaking deal unites two industry titans in a shared mission to entertain, engage, and inform sports fans around all aspects of the game and represents a new model between a sports gaming operator and sports media platform. As part of the deal, Entercom listeners will have unique access to FanDuel odds, insight, and promotion via Entercom on-air stations and personalities. Entercom and FanDuel will also collaborate on in-depth integrations and co-produce content that will pioneer the industry with all-new formats.
Under the agreement, FanDuel will be the official sportsbook of Entercom, and receive preferred and increased category access to all Entercom talent in every market where Entercom and FanDuel both operate. The partnership brings FanDuel’s sports betting content, industry-leading products, and risk and trading expertise to the fingertips of Entercom sports fans via a comprehensive integration across the largest sports audio platform in the country.
“Entercom has revolutionized the audio and entertainment industries and we’re beyond excited to be their preferred partner in the sports betting and fantasy categories, said Matthew King, Chief Executive Officer, FanDuel. “In the two years we have been doing business with Entercom, it is abundantly clear to us that their authentic connection to sports fans is one of the best ways for us to engage FanDuel customers. We will work together to offer sports fans access to information wherever, whenever, and however they consume content, providing them with the tools to learn and win.”
“We believe this is the largest advertising commitment ever made within the radio industry. We are focused on delivering the best sports betting experience for our audiences in markets where legalized sports betting will be pervasive,” said David Field, President and Chief Executive Officer, Entercom. “The marketplace is growing exponentially and FanDuel is an ideal partner to take full advantage of the influence and reach of Entercom’s robust sports platforms to deliver an even better, audio sports experience to our listeners.”
Entercom is the unrivaled leader in sports radio, reaching three times more people than the leading competitor. Entercom is the #1 sports radio ownership group, which owns and operates 39 all-sports stations across the U.S., including WFAN 101.9 FM/660 AM (WFAN-FM/AM) in New York, SportsRadio 94WIP (WIP-FM) in Philadelphia and 670 The Score (WSCR-AM) in Chicago. Its unparalleled broadcast portfolio reaches nearly 30 million sports fans monthly and boasts the nation’s leading collection of radio play-by-play coverage. Entercom also serves as the flagship home of 41 professional teams and over 50 Division 1 collegiate programs, including the New York Yankees and Boston Red Sox, Dallas Cowboys and Kansas City Chiefs, Golden State Warriors and Chicago Bulls, and University of Michigan and University of Oregon, among others.
FanDuel was represented in the conversation by AdResults Media.