TEL AVIV, Israel & New York, October 13, 2019 – Shares of Perion Network Ltd. (NASDAQ: PERI) inclined 1.33% to $4.57. The stock traded total volume of 161.449K shares lower than the average volume of 405.58K shares.
Perion Network Ltd. (PERI) reported 12% decrease in revenues from $60.90M in the first quarter of 2018 to $53.80M in the first quarter of 2019. This decline was primarily a result of a 37% decline in Advertising revenues as a result of the transition from selling formats to holistic solution. Despite of the decline in revenues, our gross margin in the Advertising business increased year over year as we prioritize margins and profitability over sales. Search and other revenues increased 12% in the first quarter of 2019 as a result of the addition of new publishers, higher revenue-per-mile and increased number of searches.
Customer Acquisition Costs and Media Buy (“CAC”): CAC in the first quarter of 2019 were $27.40M, or 51% of revenues, as compared to $31.90M, or 52% of revenues in the first quarter of 2018.
Net Income: On a GAAP basis, net income in the first quarter of 2019 was $1.20M, as compared to a net income of $0.10M in the first quarter of 2018.
Non-GAAP Net Income: In the first quarter of 2019, non-GAAP net income was $3.30M, or 6.0% of revenues, compared to the $3.00M, or 5.0% of revenues, in the first quarter of 2018.
Adjusted EBITDA: In the first quarter of 2019, Adjusted EBITDA was $5.10M, or 9.5% of revenues, compared to $4.30M, or 7.0% of revenues, in the first quarter of 2018.
Cash and Cash Flow from Operations: As of March 31, 2019, cash and cash equivalents and short-term deposit were $45.10M. Cash provided by operations in the first quarter of 2019 was $14.00M, compared to $14.60M in the first quarter of 2018.
Short-term Debt, Long-term Debt and Convertible Debt: As of March 31, 2019, total debt was $31.00M, compared to $40.50M at December 31, 2018.
2019 Guidance:
Management has increased its previously issued Adjusted EBITDA guidance of $22.0M to $24.0M for the full year of 2019 to $24.0M to $26.0M.
PERI has the market capitalization of $117.63M and its EPS growth ratio for the past five years was -37.90%. The return on assets ratio of the Company was 3.20% while its return on investment ratio stands at 6.30%. Price to sales ratio was 0.48 while 24.40% of the stock was owned by institutional investors.
