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Mar 31
Perion Q1 2025 Earnings Report
Perion reported a decline in revenue and net income due to steep losses in its Search business, though strong growth in DOOH, CTV, and Retail Media helped soften the impact.
Key Takeaways
Perion's Q1 2025 results reflected a sharp drop in total revenue and GAAP earnings due to reduced Search advertising revenue, following changes by Microsoft Bing. However, robust performance in Digital Out of Home, Connected TV, and Retail Media segments helped offset the decline. The company raised its full-year outlook and acquired Greenbids to enhance AI ad capabilities.
Total revenue fell 43% YoY to $89.3 million, primarily due to a 76% drop in Search advertising revenue.
Non-GAAP net income was $5.4 million, while GAAP net loss stood at $8.3 million.
DOOH, CTV, and Retail Media grew 80%, 31%, and 33% YoY respectively.
Perion acquired Greenbids to expand AI-driven capabilities and raised its full-year 2025 guidance.
Perion
Perion
Perion Revenue by Segment
Revenue by Segment
Advertising Solutions Revenue
CapyFin.comSearch Advertising Revenue
CapyFin.com Forward Guidance
Perion raised its full-year 2025 revenue and adjusted EBITDA outlook based on strong organic growth and the acquisition of Greenbids.
Positive Outlook
- FY25 revenue guidance increased to $430M–$450M.
- Adjusted EBITDA guidance raised to $44M–$46M.
- Expected Adjusted EBITDA to Contribution ex-TAC margin of 22% at midpoint.
- Greenbids acquisition expected to enhance AI ad capabilities.
- Ongoing share repurchase program expanded to $125M to drive shareholder value.
Challenges Ahead
- Search advertising remains a weak spot due to Bing-related changes.
- Web segment revenue declined 28% YoY.
- Significant decrease in cash flow from operations.
- Adjusted EBITDA margin dropped substantially YoY.
- GAAP net loss of $8.3M, including restructuring costs.