For the third time within a short period Perion Network Ltd. (Nasdaq:PERI: TASE:PERI) has raised its annual guidance. Today, the company released preliminary second quarter figures showing that it expects to record revenue of $105 million for the quarter, 74% more than in in the corresponding quarter of 2020 and 17% more than in the previous quarter, and also 9.5% higher than the consensus analysts' estimate.
The preliminary figure for adjusted EBITDA for the quarter is $13.5 million, which compares with $2.5 million in the corresponding quarter and $8.8 million in the previous quarter. The full financials will be released on August 3.
In the light of the strong preliminary first half results "coupled with a robust revenues pipeline going into the second half of the year", Perion has raised its annual guidance for 2021. The revised guidance is for revenue of $410-430 million, representing growth of 28% at the guidance midpoint in comparison with revenue in 2002. Perion's original revenue guidance for 2021 was $350-370 million, revised in March to $370-380 million, and two months ago to $390-410 million.
Perion's revised guidance for annual adjusted EBITDA is $49-51 million, which compares with $32.8 million in 2020. The adjusted EBITDA margin is projected to rise to 12% this year from 10% in 2020. In its previous guidance for 2021, adjusted EBITDA was projected to be $39-41 million.
The current guidance indicates that the company sees the second half of this year being stronger than the first half in both revenue and EBITDA.
Perion provides digital solutions for Internet search and online advertising. Perion CEO Doron Gerstel said, "The key driver of our growth is the strong performance of our advertising business, which outpaced the industry’s organic growth rates, as brands and agencies expand the adoption of our solutions. Our investments in R&D are delivering significant returns and driving adjusted EBITDA margin expansion. Our strong business visibility into the second half of 2021 gives us the confidence to increase our full-year outlook."
Perion has a market cap of $632 million.
Published by Globes, Israel business news - en.globes.co.il - on June 28, 2021
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