Perion Network (PERI) investor relations material

Strategic pivot and product innovation

• Initiated a major strategic pivot in 2025, focusing on building a centralized platform, Perion One, to unify digital ad buying across all channels with an advertiser-centric approach.

• Acquired Greenbids (now Outmax) to serve as an AI-driven activation layer, optimizing campaigns in real time for up to 40% better yield across channels including CTV, Meta, YouTube, and out-of-home.

• Shifted all products to be performance-driven, sunsetting or rewriting non-performative offerings and integrating them into Perion One, except for legacy search tied to a Yahoo agreement.

• Emphasized custom AI algorithms for campaign-specific optimization, differentiating from standard DSP algorithms and enabling dynamic budget allocation across platforms.

• Outmax and DCO (dynamic creative optimization) technologies enable real-time, context-aware ad placements, including weather and location-based personalization for both CTV and out-of-home.

Business model, growth, and customer focus

• Maintains a take-rate business model similar to Meta and Google, with potential for volume-based discounts as scale increases.

• Focuses on enterprise clients but is developing self-serve, agentic AI tools to expand into SMBs, aiming for a simplified, conversational interface for campaign setup.

• Performance improvements have led to higher budgets and increased take rates, especially in CTV, which saw 75% growth in Q3 versus 14% market growth.

• Out-of-home is now positioned as a performance channel, with case studies showing measurable impact on sales and in-store activity.

• Customer acquisition is currently agency-driven, but self-serve capabilities are on the roadmap to broaden reach.

Financial management and future outlook

• Announced a $200 million share buyback, with over half completed, reflecting strong cash generation and a focus on shareholder value.

• Remains profitable and cash flow positive, with ongoing investments in both organic product development and inorganic growth (acquisitions, new algorithms).

• 2025 is a pivotal year for restructuring and product build-out; 2026 is focused on investment and product completion; 2027 targets accelerated scale and growth, aiming for growth rates comparable to leading industry peers.

• Major executive turnover (9 of 10 replaced) and cost structure overhaul to support the new strategy and focus on advertiser value.

• The company is moving away from inventory management and Open Web dependency, centering on the advertiser as the primary asset and enabling cross-channel optimization.