Perion Network Ltd (PERI) 2022 Q4 法說會逐字稿

Hello everybody and welcome to the Perion Network fourth quarter and full year 2022 earnings conference call. Today's conference is being recorded. The press release detailing the financial results is available on the company's website at www.perion.com.

大家好，歡迎來到 Perion Network 第四季度和 2022 年全年收益電話會議。今天的會議正在錄製中。詳述財務業績的新聞稿可在公司網站 www.perion.com 上查閱。

Before we begin, I'd like to read the following Safe Harbor statement. Today's discussion includes forward-looking statements. These statements reflect the company's current views with respect to future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including those discussed under the heading, Risk Factors and elsewhere in the company's annual report on Form 20-F that may cause actual results, performance or achievements to be materially different, and any future results, performance or achievements anticipated or implied by these forward-looking statements.

在我們開始之前，我想閱讀以下安全港聲明。今天的討論包括前瞻性陳述。這些陳述反映了公司目前對未來事件的看法。這些前瞻性陳述涉及已知和未知的風險、不確定性和其他因素，包括標題下的風險因素和公司 20-F 年度報告中其他地方討論的因素，這些因素可能導致實際結果、業績或成就出現重大差異，以及這些前瞻性陳述預期或暗示的任何未來結果、業績或成就。

The company does not undertake to update any forward-looking statements to reflect future events or circumstances. As in prior quarters, the results reported today will be analyzed both on a GAAP and non-GAAP basis. While mentioning EBITDA, we will be referring to adjusted EBITDA. We have provided a detailed reconciliation of non-GAAP measures to their comparable GAAP measures in our earnings release, which is available on our website which has also been filed on Form 6-K.

公司不承諾更新任何前瞻性陳述以反映未來事件或情況。與前幾個季度一樣，今天報告的結果將在 GAAP 和非 GAAP 基礎上進行分析。在提到 EBITDA 時，我們指的是調整後的 EBITDA。我們在我們的收益發布中提供了非 GAAP 措施與其可比較的 GAAP 措施的詳細對賬，可在我們的網站上查閱，該表格也已在 6-K 表格中提交。

Hosting the call today are Doron Gerstel, Perion's Chief Executive Officer, and Maoz Sigron, Perion's Chief Financial Officer, and Tal Jacobson, General Manager of CodeFuel and Perion's Chief Executive Officer effective August 1, 2023. I would now like to turn the call over to Doron Gerstel. Please go ahead.

今天主持電話會議的有 Perion 首席執行官 Doron Gerstel 和 Perion 首席財務官 Maoz Sigron，以及 CodeFuel 總經理和 Perion 首席執行官 Tal Jacobson，將於 2023 年 8 月 1 日生效。我現在想把電話轉過來多倫格斯特爾。請繼續。

Yes, greetings. I hope everyone is well. I'm very glad to have the opportunity to be with you all once again. Together with me on the call is Maoz Sigron, our CFO, Tal, GM of CodeFuel and, as said, as of August 1 replacing me as CEO of Perion. Tal will introduce himself and we will talk about the transition plan in depth towards the end of our call.

是的，問候。我希望每個人都好。很高興有機會再次和大家在一起。與我一起參加電話會議的還有我們的首席財務官 Maoz Sigron、CodeFuel 的總經理 Tal，並且如前所述，自 8 月 1 日起接替我擔任 Perion 的首席執行官。 Tal 將自我介紹，我們將在通話結束時深入討論過渡計劃。

Now to business. By now, you've all seen the numbers. I will briefly review them in the context you've seen before, so you have an apples-to-apples comparison. After that, I'll get into the theme of our call today, Perion's execution model.

現在開始做生意。到目前為止，你們都已經看到了這些數字。我將在您之前看到的上下文中簡要回顧它們，以便您進行同類比較。之後，我將進入我們今天電話會議的主題，即 Perion 的執行模型。

For the revenue side, we are showing a 30% year-over-year growth in 2022 that demonstrates once again that we are able to follow the trends in media spending, for example consumer awareness of privacy and the increase of viewers that watch live sports events on their smart TVs, leading to huge demand for high impact live CTV. We also responded to the trends regarding (inaudible) media and advertiser preference towards direct response via search-related advertising. These are all reflected in our performance. What's more, these shifts are likely to increase, not decrease in velocity, therefore the ability to react becomes mandatory to continue to outperform the industry. You should remember this important factor when we talk about our execution model.

在收入方面，我們在 2022 年實現了 30% 的同比增長，這再次表明我們能夠跟隨媒體支出的趨勢，例如消費者對隱私的意識和觀看體育直播的觀眾的增加他們的智能電視上的活動，導致對高影響力直播 CTV 的巨大需求。我們還回應了有關（聽不清）媒體和廣告商偏好通過搜索相關廣告直接響應的趨勢。這些都體現在我們的表現上。更重要的是，這些轉變可能會增加，而不是減少速度，因此反應能力成為繼續超越行業的必要條件。當我們談論我們的執行模型時，您應該記住這個重要因素。

From an EBITDA standpoint, our ability to increase our media margin despite the pressure on advertising inventory due to macroeconomic environment reinforces the value of our high impact ad units and highlights the effectiveness of our central control system, Intelligent HUB, at optimizing demand and supply. These factors are behind our amazing year-over-year EBITDA growth of 90% in 2022.

從 EBITDA 的角度來看，儘管宏觀經濟環境對廣告庫存造成壓力，但我們提高媒體利潤率的能力增強了我們高影響力廣告單元的價值，並突出了我們的中央控制系統 Intelligent HUB 在優化需求和供應方面的有效性。這些因素是我們 2022 年 EBITDA 同比驚人增長 90% 的原因。

Finally, I want to bring back our Rule of 4 slide. To remind you, this principle says as software companies combine revenue growth rate and profit margin should equal or exceed 40%. Q4 was another quarter following seven consecutive ones where we achieved the Rule of 4, actually 54% on the Rule of 4, performance which belongs to the most respected and high value software companies.

最後，我想帶回我們的 4 規則幻燈片。提醒一下，這個原則是說軟件公司的收入增長率和利潤率應該等於或超過40%。第四季度是繼連續七個季度我們實現 4 規則之後的另一個季度，實際上是 4 規則的 54%，屬於最受尊敬和高價值的軟件公司的表現。

Now I would like to share with you our execution model that has guided Perion's thinking in my time at the company. It's the explore and exploit model. You can also think of it as innovate and improve model. I'm sharing this because I keep getting asked the basic question, how does Perion do it? In fact, how does Perion manage to deliver quarter after quarter, year after year of growth no matter what the economic conditions, in the midst of a pandemic, supply chain disruption, and decades-high inflation. The simple answer is our conviction that the ability to successfully execute if the core of our success. It is fundamental.

現在，我想與大家分享一下我在公司期間指導 Perion 思考的我們的執行模型。這是探索和利用模型。您也可以將其視為創新和改進模型。我分享這個是因為我一直被問到一個基本問題，Perion 是怎麼做到的？事實上，Perion 如何在大流行、供應鏈中斷和幾十年的高通脹中，無論經濟狀況如何，都能實現季度又季度、年復一年的增長。簡單的答案是我們堅信成功執行的能力是我們成功的核心。這是根本。

To demonstrate how this works in practice, let's look behind the scenes because the more you now about how we approach strategy and execution, the better you'll be able to understand the sustainability and predictability of our business and to assess our growth. The image shows the full concept. It's composed of two parts. The exploit grid contains our mature solution which constantly needs to be improved in terms of growth and sustainability alongside our innovation engine, which empowers us to explore and invent new growth initiatives in the explore group. Our numbers are proof of the effectiveness of this model. In 2022, our explore initiative generated $64 million in revenue and $26 million in media margin, while in 2023 our expectation is to double the revenue to $110 million and generate $45 million in margin.

為了證明這在實踐中是如何運作的，讓我們看看幕後情況，因為您現在對我們如何制定戰略和執行的了解越多，您就越能理解我們業務的可持續性和可預測性並評估我們的增長。該圖顯示了完整的概念。它由兩部分組成。 exploit grid 包含我們成熟的解決方案，這些解決方案需要在增長和可持續性方面不斷改進，同時我們的創新引擎使我們能夠在探索組中探索和發明新的增長計劃。我們的數字證明了該模型的有效性。 2022 年，我們的探索計劃產生了 6400 萬美元的收入和 2600 萬美元的媒體利潤，而到 2023 年，我們的預期是收入翻一番，達到 1.1 億美元，產生 4500 萬美元的利潤。

For our exploit solution, we visualize our portfolio in two vectors: growth and sustainability. We extend our moat to protect us from any disruption in the marketplace. We build and measure KPIs to continually assess the progress we are making to reach higher profitability and greater sustainability. With that as context, I've chosen a few highly relevant examples to demonstrate our model.

對於我們的漏洞利用解決方案，我們將我們的投資組合可視化為兩個向量：增長和可持續性。我們擴大護城河以保護我們免受市場上的任何干擾。我們建立和衡量 KPI，以持續評估我們為實現更高的盈利能力和更大的可持續性而取得的進展。以此為背景，我選擇了一些高度相關的示例來演示我們的模型。

First one that I choose is our video solution. Our video platform is one of our main growth drivers, increasing in 2022 by 129% compared to 2021. That represents 43% of display advertising revenue. We've also seen an average increase in three important metrics. Revenue per video platform publisher grew by 106%. We experienced a 69% year-over-year increase in the number of publishers that are using our video platform - 76, up from 45 in Q4 last year, and finally a 78% year-over-year increase in revenue from retained video platform, in other words our publishers are spending more and more on our platform.

我選擇的第一個是我們的視頻解決方案。我們的視頻平台是我們的主要增長動力之一，與 2021 年相比，2022 年增長了 129%。這佔展示廣告收入的 43%。我們還看到了三個重要指標的平均增長。每個視頻平台發布商的收入增長了 106%。使用我們視頻平台的發布商數量同比增長 69%——從去年第四季度的 45 家增加到 76 家，最終來自保留視頻平台的收入同比增長 78% ，換句話說，我們的出版商在我們的平台上花費越來越多。

Now I'll move to SORT, our privacy-first cookieless solution which is another very interesting example of our explore solution. It's growing maturity demonstrates the journey I talked about earlier, how a 2021 explore initiative moved into exploit grid in 2022. The results in Q4 are powerful. Ad campaigns using SORT represented $26 million, up 82% quarter-over-quarter, reaching 21% of advertising revenue. The number of SORT customers increased by 36%, 76 new SORT customers, overall 191 customers using SORT. On average deal size, that's the most important factor, using SORT increased by 33% to $107,500, so when customers are using SORT, they feel comfortable and safe to spend more because that's what consumers like.

現在我將轉到 SORT，我們的隱私優先無 cookie 解決方案，這是我們探索解決方案的另一個非常有趣的例子。它的日益成熟展示了我之前談到的旅程，即 2021 年的探索計劃如何在 2022 年進入利用網格。第四季度的結果是強大的。使用 SORT 的廣告活動價值 2600 萬美元，環比增長 82%，佔廣告收入的 21%。 SORT 客戶數量增長 36%，新增 SORT 客戶 76 家，共有 191 家客戶使用 SORT。就平均交易規模而言，這是最重要的因素，使用 SORT 的交易增加了 33%，達到 107,500 美元，因此當客戶使用 SORT 時，他們會感到舒適和安全，可以花更多的錢，因為這是消費者喜歡的。

Last but certainly not least, SORT delivered a 1.33% CPR, almost three times the Google benchmark of 0.46. Let me repeat, this is without cookies. With that success of SORT as an in-house service, we are working extensively, that's an explore effort, to offer SORT as a service to other companies that are interested in offering a privacy-first solution that performs better than other targeting tactics.

最後但同樣重要的是，SORT 提供了 1.33% 的 CPR，幾乎是谷歌基準 0.46 的三倍。讓我重複一遍，這是沒有 cookie 的。隨著 SORT 作為內部服務的成功，我們正在廣泛開展工作，這是一項探索性的工作，將 SORT 作為服務提供給其他公司，這些公司有興趣提供比其他目標策略表現更好的隱私優先解決方案。

Last on the exploit side is direct response, or what we call the search advertising. Our portfolio and healthy direct response solution via search advertising continues to be one of our most profitable and sustainable exploit solutions. The business is driven by two levers: increasing the number of publishers and aggregate number of monetized number searches we transfer, mainly to Microsoft Bing. That number is robust and impressive. We are reporting today 22 million average of daily - I repeat, daily search that is going through us in Q4 2022, an increase of 26% year-over-year. This number is growing every day and I can tell you that this quarter, actually the first five weeks of the quarter, we are seeing 25 million searches, daily searches or average daily searches.

最後一個利用端是直接響應，或者我們所說的搜索廣告。我們的產品組合和通過搜索廣告的健康直接響應解決方案仍然是我們最有利可圖和可持續的利用解決方案之一。該業務由兩個槓桿驅動：增加發布者的數量和我們轉移的貨幣化數字搜索的總數，主要是向 Microsoft Bing。這個數字是強勁而令人印象深刻的。我們今天報告平均每天有 2200 萬次——我重複一遍，2022 年第四季度我們每天進行的搜索量同比增長 26%。這個數字每天都在增長，我可以告訴你，本季度，實際上是本季度的前五週，我們看到了 2500 萬次搜索、每日搜索或平均每日搜索。

Let me quickly point out again that direct response is one of the three pillars of our diversification strategy. As cost sensitive advertisers move to ad search, we are there.

讓我再次快速指出，直接反應是我們多元化戰略的三大支柱之一。隨著對成本敏感的廣告商轉向廣告搜索，我們就在那裡。

With that, we will move to the explore grid. When it comes to our innovation engine, we will continue to explore many different ideas. We recognize that the profit potential of any one of them will be unclear at the outset. That's how explore operates - we have assigned a dedicated team and budget to design, test and scale explore innovations. They investigate the value proposition, market (inaudible) synergies with our existing product and business models. Only after all these are assessed as positive, then an innovation initiative makes it to the top right-hand corner as tested business idea with substantial profit potential. This enables us to focus on innovation and disruption, ensuring that we stay ahead of the curve and not be blindsided as our industry rapidly changes.

這樣，我們將移動到探索網格。談到我們的創新引擎，我們將繼續探索許多不同的想法。我們認識到，其中任何一家的盈利潛力在一開始都是不明朗的。這就是探索的運作方式——我們已經分配了專門的團隊和預算來設計、測試和擴展探索創新。他們調查價值主張、市場（聽不清）與我們現有產品和商業模式的協同作用。只有在所有這些都被評估為積極之後，創新計劃才會作為具有巨大利潤潛力的經過測試的商業理念出現在右上角。這使我們能夠專注於創新和顛覆，確保我們保持領先地位，而不是在我們的行業快速變化時措手不及。

The best example that I can take at this point from the CTV is the live CTV. CTV is another broad explore opportunity that excites us. Specifically, we found a very sizeable sub-segment of live CTV within sport events. According to Nielsen, sports broadcasting reached the most CTV users and, hear me out, 94 of the 100 most watched telecasts on TV in 2022. Commercializing this live sports CTV requires unique technology that is a huge challenge as ad insertion cannot be planned ahead of time in terms of timing and, more importantly, in terms of format, and needs to be executed on the run.

在這一點上，我可以從 CTV 中獲得的最好例子是直播 CTV。 CTV 是另一個讓我們興奮的廣泛探索機會。具體來說，我們在體育賽事中發現了一個非常大的直播 CTV 子部分。根據尼爾森的說法，體育廣播覆蓋了最多的 CTV 用戶，聽我說，2022 年電視上收視率最高的 100 個電視節目中有 94 個。將這種直播體育 CTV 商業化需要獨特的技術，這是一個巨大的挑戰，因為無法提前計劃廣告插入time 在時間方面，更重要的是在格式方面，需要在運行時執行。

As an example here is how Dr. Pepper used our live CTV platform to reach U.S. viewers watching college football. It's a rare win-win-win - the viewer gets to continue watching their sports content without interruption, the advertiser maximizes attention which might have been lost during the commercial break, and the publisher retains viewers, they don't change the channel or jump to a different app. This means more revenue for everyone.

這裡的一個例子是 Dr. Pepper 如何使用我們的直播 CTV 平台來吸引觀看大學橄欖球比賽的美國觀眾。這是一種罕見的雙贏——觀眾可以不間斷地繼續觀看他們的體育內容，廣告商最大限度地增加了可能在廣告時間丟失的注意力，而出版商留住了觀眾，他們不會改變頻道或跳轉到不同的應用程序。這意味著每個人都有更多的收入。

Next example on the explore is retail. The growth of retail media is also dramatic. These huge players, from CVS to The Home Depot to Macy's, are building retail networks. It is another true explore opportunity for Perion. Retail media has become the fourth largest advertising medium with ad spend forecast to reach $121 billion globally in 2023 - that's a 10% increase from last year. Growth of retail media is positioned to do for the 2020s what search powered digital advertising did for the 2000s and what social media did for the 2010s. Perion is uniquely positioned to take advantage of this new wave. We are working with the largest retailers, such as Albertson's, and during the first year after establishing our retail division, we generated $22.3 million in revenue and expect to deliver $30 million in revenue in 2023.

探索的下一個例子是零售。零售媒體的增長也很驚人。這些大玩家，從 CVS 到家得寶再到梅西百貨，正在建立零售網絡。這是 Perion 的另一個真正的探索機會。零售媒體已成為第四大廣告媒體，預計到 2023 年全球廣告支出將達到 1210 億美元，比去年增長 10%。零售媒體的增長在 2020 年代的作用類似於搜索驅動的數字廣告在 2000 年代的作用以及社交媒體在 2010 年代的作用。 Perion 具有獨特的優勢，可以利用這一新浪潮。我們正在與 Albertson's 等最大的零售商合作，在建立零售部門後的第一年，我們創造了 2230 萬美元的收入，預計到 2023 年將實現 3000 萬美元的收入。

Last but not least, an earnings call without ChatGPT is not a true earnings call, so I will refer to it especially after yesterday's meeting at (inaudible). The advertising industry is on the cusp of a major transformation as advances in generative AI are set to revolutionize the way brands reach and engage with their target audience. This capability has the potential to dramatically streamline the advertising production process and open up new avenues for creative expression.

最後但並非最不重要的是，沒有 ChatGPT 的財報電話會議不是真正的財報電話會議，因此我將在昨天（聽不清）的會議之後特別提到它。廣告行業正處於重大變革的風口浪尖，因為生成人工智能的進步將徹底改變品牌接觸目標受眾和與目標受眾互動的方式。這種能力有可能極大地簡化廣告製作過程，並為創意表達開闢新的途徑。

With regard to search, our expectation is that ChatGPT will revolutionize Bing search capabilities by providing more advanced and intuitive search experiences for its users, better meeting their needs and expectations. We believe that such superior search results will increase advertiser spending and as a result, we expect to see a very positive impact on our search business.

在搜索方面，我們預計 ChatGPT 將通過為用戶提供更先進、更直觀的搜索體驗，更好地滿足他們的需求和期望，徹底改變 Bing 搜索功能。我們相信，如此出色的搜索結果將增加廣告商的支出，因此，我們預計會對我們的搜索業務產生非常積極的影響。

Microsoft Bing currently is only 3% of the global search market. If the new Bing search with ChatGPT sparks even modest share gains, Microsoft can do very well in the business. As their CFO, Amy Hood said yesterday, every percentage point of share it gains in search equals roughly $2 billion in additional advertising revenue, and as a strategic partner of Microsoft Bing, I'm sure we will be benefiting from this increase.

微軟必應目前僅佔全球搜索市場的 3%。如果帶有 ChatGPT 的新 Bing 搜索能帶來適度的份額增長，那麼微軟可以在該業務中做得很好。正如他們的首席財務官艾米胡德昨天所說，它在搜索中獲得的每一個百分點的份額相當於大約 20 億美元的額外廣告收入，作為 Microsoft Bing 的戰略合作夥伴，我相信我們將從這一增長中受益。

Let me also point out that ChatGPT, which is the number one technology story of the year, fits beautifully in our exploit-explore framework. In parallel, we will develop new exploratory applications of what AI can accomplish in our technology stack.

我還要指出的是，ChatGPT 是年度頭號技術故事，非常適合我們的利用-探索框架。與此同時，我們將開發新的探索性應用程序，以了解 AI 在我們的技術堆棧中可以完成的任務。

Going forward, it's also important to point out that the relationships between exploit and explore is dynamic. As Schumpeter pointed out in his famous theory of creative disruption, new ideas are continually destroying and replacing the old. That's why continued exploration is the lifeblood of any business and that's why failure is not be feared. You cannot explore without making mistakes, and we've made our share. This is why, for example, we shut down Privado, a privacy web browser. With that, I would like to pass it to Maoz. Maoz?

展望未來，指出利用和探索之間的關係是動態的也很重要。正如熊彼特在其著名的創造性顛覆理論中指出的那樣，新思想不斷地摧毀和取代舊思想。這就是為什麼持續探索是任何企業的生命線，這就是為什麼不害怕失敗的原因。不犯錯誤就無法探索，而我們已經做出了自己的貢獻。例如，這就是我們關閉隱私 Web 瀏覽器 Privado 的原因。有了這個，我想把它傳遞給毛茲。毛茲？

Thank you Doron. Good afternoon and good morning to those of you joining us from the U.S. I am happy to be here today to present continuing strong results for Perion for the fourth quarter and full year of 2022.

謝謝多倫。下午好，早上好，從美國加入我們的各位。我很高興今天來到這裡，介紹 Perion 2022 年第四季度和全年持續強勁的業績。

Perion continues to outperform the ad tech industry, consistently improving our results during the last two years despite the global macroeconomic challenges and market volatility. Perion's diversified business model, technology differentiation and innovation-focused approach continued to enable us to navigate our way through a challenging market, resulting in excellent performance.

Perion 的表現繼續優於廣告技術行業，儘管全球宏觀經濟面臨挑戰和市場波動，但在過去兩年中我們的業績不斷提高。 Perion 多元化的商業模式、技術差異化和以創新為中心的方法繼續使我們能夠在充滿挑戰的市場中前行，並取得了出色的業績。

Let's look at the key financial achievements for 2022, reflecting the strength of our business model and our ability to execute our strategy.

讓我們看看 2022 年的主要財務成就，它們反映了我們商業模式的實力和我們執行戰略的能力。

Revenue grew by 34% to a record of over $640 million. Adjusted EBITDA of $132.4 million, another record, 90% year-over-year growth. Non-GAAP net income of nearly $120 million doubled year-over-year. Non-GAAP diluted earnings per share increased by 57% to $2.47. We continue to demonstrate our ability to generate cash with operating cash flow jumping 72% year-over-year to $122.1 million.

收入增長了 34%，達到創紀錄的 6.4 億美元以上。調整後的 EBITDA 為 1.324 億美元，同比增長 90%，再創新高。非 GAAP 淨收入近 1.2 億美元，同比翻了一番。非 GAAP 攤薄後每股收益增長 57% 至 2.47 美元。我們繼續展示我們產生現金的能力，經營現金流量同比增長 72% 至 1.221 億美元。

I would like to share with you one additional and meaningful financial KPI that in my opinion reflects the strength of Perion's performance over time. The revenue and EBITDA LTM show our ability to consistently execute our business strategy. During the last 10 quarters, the average quarter-over-quarter growth of revenue LTM was 9% and EBITDA LTM was 17%. The financial metrics clearly reflect our strong results over time and Perion's robust, sustainable and predictable business model. Our ability to grow our revenue while continuously improving profitability quarter over quarter is most impressive and shows long term execution in a volatile environment.

我想與您分享一個額外且有意義的財務 KPI，在我看來，它反映了 Perion 隨著時間的推移表現的實力。收入和 EBITDA LTM 表明我們有能力始終如一地執行我們的業務戰略。在過去 10 個季度中，收入 LTM 的平均環比增長率為 9%，EBITDA LTM 為 17%。財務指標清楚地反映了我們隨著時間的推移取得的強勁業績以及 Perion 穩健、可持續和可預測的商業模式。我們在增加收入的同時不斷提高盈利能力的能力令人印象深刻，並且在動蕩的環境中顯示出長期執行力。

I would like to take this opportunity to talk a bit about our inorganic efforts and more specifically about the Vidazoo acquisition. The Vidazoo acquisition in October of 2021 is a great demonstration of how we approach and execute our M&A strategy. Our M&A strategy includes the following: being profitable and accretive from day one; second, a solid growth prospective; third, strong synergies with Perion organic business; fourth, strong market position; and last but not least, a broad and build model one-third cash and two-thirds (inaudible).

我想藉此機會談談我們的無機努力，更具體地說是關於 Vidazoo 的收購。 2021 年 10 月對 Vidazoo 的收購很好地展示了我們如何處理和執行我們的併購戰略。我們的併購戰略包括以下內容：從第一天起就實現盈利和增值；第二，穩健的增長前景；第三，與Perion有機業務的強大協同效應；第四，強大的市場地位；最後但並非最不重要的是，一個廣泛的構建模型三分之一現金和三分之二（聽不清）。

In Vidazoo, we found a company that had a product we were missing in our offering. We wanted to enhance our high impact and video offering, having an end-to-end solution for publishers, eliminating all existing intermediaries, and Vidazoo is the answer. Vidazoo was accretive since day one and had a clear growth trajectory. Their ability to attract new publishers and gain more traffic from existing ones helped them to grow faster than our expectations, but more importantly, we identified clear synergies with our existing businesses. Our ability to expose all Perion assets to Vidazoo and use Vidazoo as a delivered video solution and introduce the video platform to Perion's publisher network created significant synergy dollars during 2022, and more to come in the next years.

在 Vidazoo，我們發現一家公司有我們在產品中缺少的產品。我們希望增強我們的高影響力和視頻產品，為出版商提供端到端的解決方案，消除所有現有的中介，而 Vidazoo 就是答案。 Vidazoo 從第一天起就在增值，並且有清晰的增長軌跡。他們吸引新發布商並從現有發布商獲得更多流量的能力幫助他們實現了超出我們預期的增長，但更重要的是，我們發現了與現有業務的明顯協同效應。我們將所有 Perion 資產暴露給 Vidazoo 並將 Vidazoo 作為交付的視頻解決方案並將視頻平台引入 Perion 的出版商網絡的能力在 2022 年創造了顯著的協同效應，並在未來幾年創造了更多。

The revenue CAGR between 2020 and 2022 was 101% and the EBITDA CAGR for the same period was 118%. Vidazoo is growing their business dramatically while improving their profitability, which is exactly aligned with Perion DNA. Based on Vidazoo 2022 EBITDA and the total consideration of $93.5 million, the Vidazoo multiple is 4.5 compared with Perion 2022 multiple of 8.5.

2020 年至 2022 年的收入 CAGR 為 101%，同期 EBITDA CAGR 為 118%。 Vidazoo 正在大幅發展業務，同時提高盈利能力，這與 Perion DNA 完全一致。基於 Vidazoo 2022 EBITDA 和 9350 萬美元的總對價，Vidazoo 的倍數為 4.5，而 Perion 2022 的倍數為 8.5。

Now let's move to the key financial achievements of Q4 2022. Revenue for the fourth quarter was $209.7 million, reflecting 33% year-over-year growth. Adjusted EBITDA of $48.2 million increased by 67% year-over-year. GAAP net income was $38.7 million, representing 119% year-over-year growth, the highest quarterly net income ever. Non-GAAP diluted earnings per share was $0.90, reflecting 45% year-over-year growth.

現在讓我們來看看 2022 年第四季度的主要財務成就。第四季度的收入為 2.097 億美元，同比增長 33%。調整後的 EBITDA 為 4820 萬美元，同比增長 67%。 GAAP 淨收入為 3870 萬美元，同比增長 119%，是有史以來最高的季度淨收入。非 GAAP 攤薄後每股收益為 0.90 美元，同比增長 45%。

Let's turn to the next slide to discuss our results in more detail. The revenue of the fourth quarter of 2022 was $209.7 million, an increase of 33% year-over-year, reflecting a strong continued three-year CAGR of 33%. The revenue of the full year 2022 was $640.3 million, an increase of 34% year-over-year, reflecting a strong continued three-year CAGR of 40%.

讓我們轉到下一張幻燈片來更詳細地討論我們的結果。 2022 年第四季度的收入為 2.097 億美元，同比增長 33%，反映了 33% 的強勁持續三年復合年增長率。 2022 年全年收入為 6.403 億美元，同比增長 34%，反映了強勁的持續三年復合年增長率 40%。

Fourth quarter display advertising revenue increased by 24% year-over-year to $123.8 million, 59% of total revenue. This was driven primarily by the continuous market adoption of our holistic video platform the solution, the increase in SORT revenue, and growth of our CTV business. Video revenue increased by 33% year-over-year, representing 42% of display advertising revenue compared with 39% in Q4 2021. The number of video platform publishers increased by 79% year-over-year from 42 to 75. The revenue from retained video platform publishers increased by 78% year-over-year.

第四季度展示廣告收入同比增長 24% 至 1.238 億美元，佔總收入的 59%。這主要是由於市場不斷採用我們的整體視頻平台解決方案、SORT 收入的增加以及我們的 CTV 業務的增長。視頻收入同比增長 33%，佔展示廣告收入的 42%，而 2021 年第四季度為 39%。視頻平台發布商數量同比增長 79%，從 42 家增加到 75 家。收入來自保留的視頻平台發行商同比增長 78%。

Our CTV business continued to gain traction, growing by 42% year-over-year, representing 10% of the total display advertising revenue. Our innovative cookieless targeting SORT solution is being adopted more and more by the market in light of consumer growing awareness and increasing (inaudible) pressure on companies to protect consumer privacy. The number of SORT customers rose to 191 this quarter, a 36% increase quarter-over-quarter. SORT customer revenue increased by 82% during that period, now representing 21% of display advertising revenue versus 17% in the previous quarter.

我們的 CTV 業務繼續獲得牽引力，同比增長 42%，佔展示廣告總收入的 10%。隨著消費者意識的增強以及公司保護消費者隱私的壓力越來越大（聽不清），我們的創新型 cookieless 目標 SORT 解決方案正越來越多地被市場採用。本季度 SORT 客戶數量增至 191 家，環比增長 36%。在此期間，SORT 客戶收入增長了 82%，目前佔展示廣告收入的 21%，而上一季度為 17%。

Fourth quarter search advertising revenue increased by 49% year-over-year to $85.9 million, driven by a growing trend of advertising favoring our high intent direct response advertising. The year-over-year increase in revenue was driven by a 13% increase in RPM and a 26% increase in the number of average daily searches. The results demonstrate our strategic diversification business model of our two main revenue streams. The fourth quarter display advertising revenue accounted for 59% of total revenue compared with 63% in 2021, with search advertising representing 41% of revenue compared with 37% in 2021.

第四季度搜索廣告收入同比增長 49% 至 8,590 萬美元，這得益於廣告趨勢的增長有利於我們的高意圖直接響應廣告。收入的同比增長是由每千次展示收入增長 13% 和平均每日搜索次數增長 26% 推動的。結果證明了我們兩個主要收入來源的戰略多元化業務模式。第四季度展示廣告收入佔總收入的 59%，而 2021 年為 63%，搜索廣告佔收入的 41%，而 2021 年為 37%。

On an annual basis, display advertising revenue accounted for 56% of the total revenue compared with 55% in 2021. We continue to expand into the fast-growing segments of video, CTV and retail business. Our sales business continues to grow as we benefit from the current shift to direct response search advertising.

按年度計算，展示廣告收入佔總收入的 56%，而 2021 年為 55%。我們繼續擴展到視頻、CTV 和零售業務等快速增長的領域。我們的銷售業務繼續增長，因為我們受益於當前向直接響應搜索廣告的轉變。

Our media margin continued to show year-over-year improvement. Revenue excluding TAC was $87.7 million or 42% of revenue compared with 41% of revenue in the fourth quarter of 2021. The Intelligent HUB that we have developed and several other processes and automation leverage data and buying power to control and improve the overall media buying system. This has resulted in better selling and buying power, translating into a continuous improvement in media margin.

我們的媒體利潤率繼續呈現同比增長。不包括 TAC 的收入為 8770 萬美元，佔收入的 42%，而 2021 年第四季度為 41%。我們開發的智能 HUB 和其他幾個流程和自動化利用數據和購買力來控制和改善整體媒體購買系統。這導致更好的銷售和購買力，轉化為媒體利潤率的持續提高。

We take great pride in our ability to implement efficiency measures and progress in our day-to-day operations. Each and every efficiency measure shows a continuous improvement over the last three years. Our OpEx plus COGS in 2022 accounted for 23% of revenue compared with 28% in 2021 and 33% in 2020. At the same time, EBITDA per FTE has risen from $78,000 in 2020 to over $300,000 in 2022. This impressive achievement reflects the execution of our business strategy and the disciplined manner we run our operation.

我們為能夠在日常運營中實施效率措施和取得進展而感到自豪。每一項效率措施都顯示出過去三年的持續改進。我們在 2022 年的 OpEx 加上 COGS 佔收入的 23%，而 2021 年和 2020 年分別為 28% 和 33%。與此同時，每 FTE 的 EBITDA 從 2020 年的 78,000 美元增加到 2022 年的 300,000 美元以上。這一令人印象深刻的成就反映了執行力我們的業務戰略和我們經營業務的紀律方式。

Over the past few years, we have invested in innovation and automation, creating the infrastructure that allows incremental top and bottom line growth on a lower cost basis. We have improved our budget control and are consistently looking for new efficiency initiatives. This shows how our efficiency and cost control measures, coupled with focused growth in high margin business, translates into impressive bottom line growth.

在過去的幾年裡，我們投資於創新和自動化，創建了允許在較低成本的基礎上實現增量收入和利潤增長的基礎設施。我們改進了預算控制，並一直在尋找新的效率舉措。這表明我們的效率和成本控制措施，加上高利潤業務的重點增長，如何轉化為令人印象深刻的底線增長。

Fourth quarter adjusted EBITDA was $48.2 million, reflecting 67% year-over-year growth. Adjusted EBITDA margin was 23% compared with 18% last year, while adjusted EBITDA to revenue excluding TAC increased from 45% in the fourth quarter of 2021 to 55% in the fourth quarter of 2022. Full year adjusted EBITDA was $132.4 million, up 90% year-over-year and with a three-year CAGR of 101%. 2022 EBITDA margin was 21% compared with 15% last year. 2022 EBITDA excluding TAC margin significantly increased to 49% compared with 37% last year.

第四季度調整後的 EBITDA 為 4820 萬美元，同比增長 67%。調整後的 EBITDA 利潤率為 23%，而去年為 18%，而調整後的 EBITDA 佔收入（不包括 TAC）的比例從 2021 年第四季度的 45% 增加到 2022 年第四季度的 55%。全年調整後的 EBITDA 為 1.324 億美元，增長 90 %，三年復合年增長率為 101%。 2022 年 EBITDA 利潤率為 21%，而去年為 15%。 2022 年扣除 TAC 利潤率的 EBITDA 顯著增至 49%，而去年為 37%。

On a CAGR basis, fourth quarter net income was $38.7 million or $0.79 per diluted share, an increase of 119% compared with $17.7 million or $0.44 per diluted share in the fourth quarter of 2021. For the full year, our GAAP net income was $99.2 million or $0.06 per diluted share, an increase of 156% compared with $38.7 million or $0.02 per diluted share in 2021.

按複合年增長率計算，第四季度淨收入為 3870 萬美元或攤薄後每股收益 0.79 美元，比 2021 年第四季度的 1770 萬美元或攤薄後每股收益 0.44 美元增長 119%。全年，我們的 GAAP 淨收入為 99.2 美元百萬美元或攤薄後每股 0.06 美元，與 2021 年的 3870 萬美元或攤薄後每股 0.02 美元相比增長 156%。

On a non-GAAP basis, fourth quarter net income was $44.7 million or $0.19 per diluted share, an increase of 77% compared with $25.3 million or $0.62 per diluted share in the fourth quarter of 2021. For the full year, non-GAAP net income was $119.8 million or $2.47 per diluted share, double the $60 million or $1.57 per diluted share in 2021.

按非公認會計原則計算，第四季度淨收入為 4470 萬美元或攤薄後每股收益 0.19 美元，比 2021 年第四季度的 2530 萬美元或攤薄後每股收益 0.62 美元增長 77%。全年，非公認會計原則淨收入收入為 1.198 億美元或每股攤薄收益 2.47 美元，是 2021 年的 6000 萬美元或每股攤薄收益 1.57 美元的兩倍。

We continue to demonstrate our solid ability to generate cash. Fourth quarter operating cash flow was $38.2 million compared with $28.8 million in the fourth quarter of 2021, reflecting 32% year-over-year growth. For the full year, cash from operations amounted to $122.1 million, up 72% year-over-year.

我們繼續展示我們產生現金的堅實能力。第四季度運營現金流為 3820 萬美元，而 2021 年第四季度為 2880 萬美元，同比增長 32%。全年，運營現金為 1.221 億美元，同比增長 72%。

As of December 31, 2022, our cash, cash equivalents, and short term deposits amounted to nearly $430 million, up $40 million on previous quarter and $108 million since December 31, 2021. Our strong cash generating ability and the accumulated $430 million in cash provides us with a valuable resource to execute both organic and inorganic growth opportunities.

截至 2022 年 12 月 31 日，我們的現金、現金等價物和短期存款總計近 4.3 億美元，比上一季度增加 4000 萬美元，自 2021 年 12 月 31 日以來增加 1.08 億美元。我們強大的現金生成能力和累計 4.3 億美元的現金為我們提供寶貴的資源來執行有機和無機增長機會。

Given our strong performance and our sustainable and predictable business model, we expect the solid business momentum to carry on in 2023. With our visibility into the year, we are today publishing our guidance for 2023: revenue between $720 million to $740 million and adjusted EBITDA between $149 million to $153 million. This concludes my financial and guidance overview, and with that I will hand over to Doron. Doron, please go ahead.

鑑於我們強勁的業績以及可持續和可預測的業務模式，我們預計穩健的業務勢頭將在 2023 年繼續。鑑於我們對這一年的了解，我們今天發布了 2023 年的指導意見：收入在 7.2 億美元至 7.4 億美元之間，調整後的 EBITDA在 1.49 億美元到 1.53 億美元之間。我的財務和指導概覽到此結束，接下來我將交給 Doron。多倫，請繼續。

Thank you Maoz. At this point, I'd like to elaborate on what we shared earlier today, that I am stepping down as CEO. I joined Perion as CEO in 2017, almost six years ago - actually, it was April 2, 2017. The board recruited me to turn the business around. They recognized that I had had a career of doing just that, so I was no stranger to cleaning up messes, but this was quite a big one. The challenge in front of me was to fix the capital structure, build our competitive advantage and moat, strengthen our technology, and enhance operational efficiency. Only by doing those things, all of them, not one of them, would growth be restored.

謝謝毛茲。在這一點上，我想詳細說明我們今天早些時候分享的內容，即我將辭去首席執行官一職。大約六年前，我於 2017 年加入 Perion，擔任首席執行官——實際上，那是 2017 年 4 月 2 日。董事會聘請我來扭轉公司局面。他們認識到我的職業生涯就是這樣做的，所以我對收拾殘局並不陌生，但這是一個很大的工作。擺在我面前的挑戰是固定資本結構，建立我們的競爭優勢和護城河，加強我們的技術，提高運營效率。只有做這些事情，所有這些事情，而不是其中之一，才能恢復增長。

I'm proudest of the fact that we have reached a point where we outperform our industry and demonstrate continuous growth and high profitability even during the most volatile economy, including the worst pandemic that we've seen in decades. We've accomplished this by creating an execution model that is positioned to benefit from wherever ad spending flows across the three pillars of our industry. That's why we are on the only one of 52 ad tech and market publicly traded companies who saw share price growth in 2022.

令我感到最自豪的是，我們已經達到了超越行業的地步，即使在最動蕩的經濟中，包括我們幾十年來所見過的最嚴重的流行病，也表現出持續的增長和高盈利能力。我們通過創建一個執行模型來實現這一目標，該模型定位於從廣告支出流經我們行業三大支柱的任何地方獲益。這就是為什麼我們是 2022 年股價上漲的 52 家廣告技術和市場上市公司中唯一一家的原因。

We have become a true technology leader with innovations like SORT, which has won awards. We have made smart and strategic acquisitions which have enabled us to enter into new categories and created organizational synergies. We have attracted world-class brands, strengthened our relationship with Microsoft Bing, and have built a culture that is committed and creative, and we did all that with agility, speed and resourcefulness.

我們已經成為真正的技術領導者，憑藉像 SORT 這樣的創新，它已經獲獎。我們進行了明智的戰略性收購，這使我們能夠進入新的類別並創造組織協同效應。我們吸引了世界一流的品牌，加強了我們與 Microsoft Bing 的關係，並建立了一種承諾和創新的文化，我們以敏捷、快速和足智多謀的方式做到了這一切。

With all that behind us and Perion is now well past the turnaround point, I felt it was the right time to move forward with the succession plan. It was clear for me to recommend Tal as my successor to the board. I recruited Tal from SimilarWeb in 2018 to drive the turnaround at CodeFuel and to position our search business for accelerated growth. Tal is a visionary entrepreneur but also has great expertise as an operator. Under his leadership, CodeFuel, our search advertising (inaudible) reorganized, modernized its technology infrastructure, and further developed our strong and mutually beneficial partnership with Microsoft Bing. What's more, CodeFuel technology has played an important role in the development of Perion's Intelligent Hub. Tal was instrumental in making that happen.

一切都過去了，Perion 現在已經過了轉機點，我覺得現在是推進繼任計劃的正確時機。我很清楚地推薦 Tal 作為我的董事會繼任者。我於 2018 年從 SimilarWeb 招募了 Tal，以推動 CodeFuel 的轉變，並定位我們的搜索業務以加速增長。 Tal 是一位富有遠見的企業家，同時也擁有豐富的經營經驗。在他的領導下，CodeFuel 對我們的搜索廣告（聽不清）進行了重組，使其技術基礎設施現代化，並進一步發展了我們與 Microsoft Bing 的強大互利合作夥伴關係。更重要的是，CodeFuel 技術在 Perion 智能中心的開發中發揮了重要作用。塔爾在實現這一目標方面發揮了重要作用。

As many of you have followed us and seen the growth of our search and direct response business are aware, the performance has been superb. As GM, Tal drove that. In addition, Tal has been by my side as a key member of the executive team involved in all important strategic discussions, including M&As. This broad immersion in current business beyond CodeFuel gave the opportunity to collaborate with other business units. He knows them, understands them, and works well with them.

正如你們中的許多人關注我們並看到我們的搜索和直接響應業務的增長一樣，我們的表現非常出色。作為通用汽車，塔爾推動了這一點。此外，塔爾作為執行團隊的重要成員一直在我身邊，參與了所有重要的戰略討論，包括併購。除了 CodeFuel 之外，這種對當前業務的廣泛投入讓我們有機會與其他業務部門合作。他了解他們，理解他們，並且與他們合作得很好。

The next six months will be a transition period, and I'll invest enough time to ensure that when Tal assumes the CEO role, it will go very smoothly. Of course, I will remain on the board of Perion and so be very involved in the future of the company. I'd like now to turn the call over to Tal. Tal?

接下來的六個月是一個過渡期，我會投入足夠的時間來保證Tal接任CEO的時候會非常順利。當然，我將繼續留在 Perion 的董事會，並積極參與公司的未來發展。我現在想把電話轉給 Tal。塔爾？

Yes, thank you Doron. It's an honor to be named as Perion's next CEO, and I look forward to continuing with the collaboration with Doron in the next six months as we work through the transition. I want to thank the board of directors for their confidence in me. I'm excited about the opportunities before us and ready for the challenges.

是的，謝謝多倫。很榮幸被任命為 Perion 的下一任首席執行官，我期待在接下來的六個月內繼續與 Doron 合作，因為我們正在努力完成過渡。我要感謝董事會對我的信任。我對擺在我們面前的機遇感到興奮，並準備好迎接挑戰。

For those who don't know me, I joined Perion in 2018 as the General Manager of CodeFuel. My task was to transform the search business, which was in a period of decline, into a sustainable, profitable growing business. By solidifying our key relationship with Microsoft Advertising, investing in technology, and focusing on quality, we achieved just that. Today, our search advertising business enjoys a robust relationship with Microsoft Advertising. Just one year ago, we were named Microsoft Advertising's Global Supply Partner of the Year. This is aligned with what Perion stands for: an innovator, a leader in technology, and a differentiator in the entire ad tech market.

對於那些不認識我的人，我於 2018 年加入 Perion，擔任 CodeFuel 的總經理。我的任務是將處於衰退期的搜索業務轉變為可持續、盈利增長的業務。通過鞏固我們與 Microsoft Advertising 的重要關係、投資技術並關注質量，我們實現了這一點。今天，我們的搜索廣告業務與 Microsoft Advertising 建立了穩固的關係。就在一年前，我們被微軟廣告評為年度全球供應合作夥伴。這與 Perion 所代表的一致：創新者、技術領導者以及整個廣告技術市場的差異化者。

Over the past six years, Doron led a momentum restructuring, pivoting the strategy and developing and leading the team that together established Perion as a true innovator. I've had the pleasure of working closely with Doron and I look forward to continuing our work together from the board seat that Doron is going to continue with us.

在過去的六年中，Doron 領導了勢頭重組、調整戰略以及發展和領導團隊，共同將 Perion 打造成真正的創新者。我很高興與 Doron 密切合作，我期待著在 Doron 將繼續與我們一起擔任董事會席位後繼續我們的工作。

I believe we have only scratched the surface of the opportunities we are facing, including search, retail and CTV. We are positioned to address all key facets of digital advertising, delivering high impact solutions for brands at every step of the consumer decision journey. We have proven our ability to identify shifts in ad spending, delivering the right solution at the right time. This is evident in our market leadership, our expanding margins, our growing share, and our overall financial performance. The future of Perion is bright. With that, I would like to turn the call back to Doron.

我相信我們只觸及了我們所面臨的機會的表面，包括搜索、零售和 CTV。我們定位於解決數字廣告的所有關鍵方面，在消費者決策過程的每一步為品牌提供高影響力的解決方案。我們已經證明了我們有能力識別廣告支出的變化，並在正確的時間提供正確的解決方案。這在我們的市場領導地位、不斷擴大的利潤率、不斷增長的份額以及我們的整體財務業績中顯而易見。 Perion 的未來是光明的。有了這個，我想把電話轉回給多倫。

Right, thanks so much. We will open the line for Q&A, please. Operator?

好的，非常感謝。請打開問答熱線。操作員？

(Operator Instructions) Our first question today is coming from Jason Helfstein of Oppenheimer.

（操作員說明）我們今天的第一個問題來自 Oppenheimer 的 Jason Helfstein。

A few questions. First, Doron, mazel tov on your tenure and what you've been able to do at the company. I think the market is concerned with maybe the timing of your leaving, given that the results speak for themselves yet the stock appears to be down. Is there anything you're seeing, kind of--just in the short term, what are you seeing in the business, perhaps, as far as out as you can see? That's question one, just maybe try to help the market ease itself.

幾個問題。首先，Doron，請介紹一下您的任期以及您在公司所做的工作。我認為市場關心的可能是你離開的時間，因為結果不言而喻，但股價似乎下跌。有沒有什麼你看到的，有點——就短期而言，你在業務中看到了什麼，也許，就你能看到的？這是第一個問題，也許只是試圖幫助市場自我放鬆。

The second, as you think about retail media, are these contractual relationships? Obviously you're seeing really nice growth, but you're competing against some pretty big companies who are trying to become platform plays with retail media, so just talk about the contractual nature of retail media.

第二，當你想到零售媒體時，這些是合同關係嗎？顯然你看到了非常好的增長，但你正在與一些試圖成為零售媒體平台的大公司競爭，所以只談零售媒體的合同性質。

Then last, just on ChatGPT and what Microsoft is doing, is your initial take that for Perion specifically, you will benefit if they're able to bring more advertisers onto Bing, it drives up CPCs and ultimately you benefit from that? Obviously very early with this whole AI-driven search, but just any thoughts there. Thank you.

最後，就 ChatGPT 和 Microsoft 正在做的事情而言，您最初是否特別針對 Perion，如果他們能夠將更多廣告商帶到 Bing 上，您將受益，它會提高每次點擊費用，最終您會從中受益嗎？顯然，整個人工智能驅動的搜索還很早，但只是有任何想法。謝謝。

I will start with the easy one, which is the ChatGPT, because the flow is as follows when it comes to our business. First, it all has to do with consumers. We believe that this technology first and foremost will attract more consumers that will use Bing, and as I mentioned before, it's all about how many are using the technology. I think the Microsoft CFO said that each one point is $2 billion, and while you have more that are using the Bing search, advertisers are aligning with it because it's all about scale. If advertisers are aligning in what way, they want to spend more - that's one, so they put more ads into this platform compared to other platforms that exist, and the second, they're willing to bid more, so we are expecting that two things will happen. One, we will have more in terms of searches, and right now, you've seen the numbers and we're expecting them to grow.

我將從簡單的 ChatGPT 開始，因為涉及到我們的業務時，流程如下。首先，這一切都與消費者有關。我們相信，這項技術首先會吸引更多使用 Bing 的消費者，正如我之前提到的，這完全取決於有多少人在使用這項技術。我想微軟首席財務官說過，每一點都是 20 億美元，雖然你有更多的人在使用 Bing 搜索，但廣告商正在與之保持一致，因為這一切都與規模有關。如果廣告商以何種方式結盟，他們想要花更多錢——第一，與現有的其他平台相比，他們在這個平台上投放了更多廣告，第二，他們願意出價更高，所以我們預計有兩個事情將會發生。第一，我們將有更多的搜索，現在，你已經看到了這些數字，我們預計它們會增長。

The other thing is if advertisers would be willing to spend more because we believe that the demand will be higher, it will increase the RPM, so with those two factors by itself, and I'm not here talking about any kind of technology cooperation or something that we're able to do this, only by that, I have no doubt that we will benefit from I think what Microsoft Bing is doing, and it's all about giving a fight to Google and become more dominant from the 3% market share that they have today, so that's clear.

另一件事是，如果廣告商願意花更多錢，因為我們相信需求會更高，它會增加每千次展示收入，所以考慮到這兩個因素本身，我在這裡不是在談論任何類型的技術合作或我們能夠做到這一點，只有那樣，我毫不懷疑我們將從我認為微軟 Bing 正在做的事情中受益，這一切都是為了與穀歌進行鬥爭，並從 3% 的市場份額中佔據主導地位他們有今天，所以很清楚。

As far as what I've seen in 2023, so first of all, you know us by now very well, we are very conservative and we are mostly conservative when it comes to the first time that we provide guidance for the year, happen to be in this call. Having said, we're not seeing any slowdown in this quarter. We are five weeks into the quarter and if I'm trying to compare this quarter to the last quarter--to the first quarter of 2022, I think we are in very, very good shape.

就我在 2023 年所看到的情況而言，首先，你現在非常了解我們，我們非常保守，當我們第一次提供今年的指導時，我們大多是保守的，碰巧在這個電話中。話雖如此，我們沒有看到本季度有任何放緩。我們進入本季度已有五週時間，如果我想將本季度與上一季度 - 與 2022 年第一季度進行比較，我認為我們的狀況非常非常好。

As I mentioned, there are some other areas where we are changing our business model - you know, always on, I mentioned it on the last call, with our retail customer, which gives us a better way to predict our business, so all in all, on one hand we are conservative, on the other hand, we are very optimistic as far as our ability to once again deliver the growth and the profitability as we did in the last three years or so.

正如我提到的，還有一些我們正在改變我們的商業模式的其他領域——你知道，總是在，我在上次電話會議上提到過，與我們的零售客戶，這為我們提供了一種更好的方式來預測我們的業務，所以所有總之，一方面我們是保守的，另一方面，我們對我們再次實現增長和盈利能力的能力非常樂觀，就像我們在過去三年左右所做的那樣。

And the retail media, is it contractual?

而零售媒體，它是合同製的嗎？

The retail media is very interesting. We still define it as an explore business, even though the appetite is really big for 2023. I mentioned $30 million - this is our target versus the $22 million that we did this year, but I think what is more important is the quality of the revenue of retail media, because if we're talking about sustainability and predictability, I think that's the great example, because what is always on? Always on is a type of contractual business where an advertiser, in this case retailers in a way commit for spending along the year, and it's not aligned to a certain campaign. For us, for our modeling, these dollars that are considered to be retail dollars are worth more than dollars that are coming from campaigns that we are questioning their sustainability.

零售媒體非常有趣。我們仍然將其定義為探索業務，儘管 2023 年的胃口真的很大。我提到了 3000 萬美元——這是我們的目標，而我們今年的目標是 2200 萬美元，但我認為更重要的是質量零售媒體的收入，因為如果我們談論可持續性和可預測性，我認為這是一個很好的例子，因為什麼是永遠在線的？ Always on 是一種合同業務，在這種情況下，廣告商（在本例中為零售商）以某種方式承諾全年支出，並且與特定活動不一致。對於我們來說，對於我們的建模，這些被認為是零售美元的美元比我們質疑其可持續性的活動所產生的美元更有價值。

The next question is coming from Laura Martin of Needham.

下一個問題來自 Needham 的 Laura Martin。

Hello?

你好？

Yes?

是的？

Can you hear me okay, you guys?

你能聽到我說話嗎，伙計們？

Yes. We can hear you.

是的。我們能聽到你的聲音。

Fantastic, sorry about that. Okay, so Doron, let's start with you. Jason drilled down on ChatGPT as it relate to Bing and Microsoft's comments yesterday. I want to pivot your insight and ask you about--you said that you thought ChatGPT and this generative AI could really streamline the production process for ad tech, so I want to step out of search and go to the other part of your business, and could you give us your early thoughts on how you think ChatGPT impacts the advertising part of your business over the next two years, excluding the search business?

太棒了，對此感到抱歉。好的，多倫，讓我們從你開始吧。 Jason 深入研究了 ChatGPT，因為它與 Bing 和微軟昨天的評論有關。我想談談你的見解並問你關於 - 你說你認為 ChatGPT 和這種生成人工智能真的可以簡化廣告技術的生產過程，所以我想走出搜索並轉向你業務的其他部分，您能否告訴我們您對 ChatGPT 在未來兩年內如何影響您業務的廣告部分（不包括搜索業務）的早期想法？

Then second for you, Doron, I'd like to do CTV. You said it was 10%--you guys said it was 10% of (inaudible) advertising. How big and how fast can that get? Do you think over the next year or two, will you continue to project growth in your mind of that 42% or do you see it slowing?

然後是你的第二個，多倫，我想做 CTV。你說它是 10%——你們說它是（聽不清）廣告的 10%。它能達到多大和多快？您是否認為在接下來的一兩年內，您會繼續預測這 42% 的增長還是會放緩？

Then three, Maoz, are you kidding me - like, I get that you guys are conservative, but how do you go from growing total revenue at 33% in both the fourth quarter and the full year, to 14? Like, what's falling off the cliff, because it's not search, so what is falling off a cliff that--the deceleration it has? Those are my three questions, thanks.

然後是第三個，Maoz，你在開玩笑吧——我知道你們很保守，但是你們如何從第四季度和全年的總收入增長 33% 到 14%？比如，什麼東西從懸崖上掉下來，因為它不是搜索，所以什麼東西從懸崖上掉下來——它有減速？這是我的三個問題，謝謝。

Yes, so first, the ChatGPT, so other than the search, the most, let's say obvious, trivial one that we are very much around it, it has to do with reducing all creative work, content work, everything that has to do with rendering video and putting a lot of AI. I mentioned in one of our calls, the technology of dynamic creative optimization, the DCO, that is going, I think, to be a commodity, everyone is going to use it. The idea is very much to be as personalized as possible what you are targeting, no matter if this is performance or awareness campaign. This is going to be, I think, the first--very much the first phase of using the ChatGPT internally.

是的，首先是 ChatGPT，所以除了搜索之外，我們非常關注它，可以說是最明顯、最微不足道的一個，它與減少所有創造性工作、內容工作以及與渲染視頻並放置大量 AI。我在我們的一個電話中提到，動態創意優化技術 DCO，我認為，它會成為一種商品，每個人都會使用它。這個想法是盡可能個性化您的目標，無論這是性能還是意識活動。我認為，這將是在內部使用 ChatGPT 的第一階段。

The minor factor is reducing the labor costs that associate with this development. I think the main benefit will be our ability to deliver greater value, greater return on ad spend to our advertiser because the personalization is going to get a huge boost. That's the trivial.

次要因素是降低與此開發相關的勞動力成本。我認為主要的好處將是我們能夠為我們的廣告商提供更大的價值、更高的廣告支出回報，因為個性化將得到巨大的推動。那是微不足道的。

But if you're looking about it in a way beyond that, one of the most important things, it has to do with the modeling and our ability, and that's a very interesting thing. We are sitting in a goldmine with the HUB. I mentioned the fact that we're creating the technology that's able to capture signal from all over - you know, the channels, if it's the supply and the demand, and things like that. That's a huge boost into our model. We are already looking about how we're able to upload the huge amount of data and what is the result that we're getting back. That's going to be a huge step forward in the way that we're able to optimize demand and supply, and most importantly to bid smartly against our competitor.

但是，如果您以超越此的方式看待它，那麼最重要的事情之一就是與建模和我們的能力有關，這是一件非常有趣的事情。我們正坐在 HUB 的金礦中。我提到了一個事實，即我們正在創造能夠從各地捕獲信號的技術——你知道，渠道，如果是供應和需求，等等。這是對我們模型的巨大推動。我們已經在研究我們如何能夠上傳大量數據以及我們得到的結果是什麼。這將是我們能夠優化需求和供應的方式向前邁出的一大步，最重要的是能夠巧妙地與我們的競爭對手競標。

The HUB is going to be the main beneficiary, even though it's quite challenging - we talk about a huge amount of data. We're still not sure what is the pricing model of this type of AI start-up. Currently, it's not that cheap to upload all the data and developing here a model, and we are looking about it when price will go down or it will be other opportunity for us, doing it in a most economic way. But that's something that we as a company see it as the next phase of using ChatGPT in our--internally.

HUB 將成為主要受益者，儘管它非常具有挑戰性——我們談論的是大量數據。我們仍然不確定這類 AI 初創公司的定價模式是什麼。目前，上傳所有數據並在這裡開發模型並不便宜，我們正在考慮價格何時會下降，或者這對我們來說是其他機會，以最經濟的方式進行。但作為一家公司，我們將其視為在我們內部使用 ChatGPT 的下一階段。

In terms of live CTV and CTV in general, which was your next question, so you know better than anyone else that these CTV things got commoditized, and we are always looking about the growth and we're looking about the profitability, and this regards the gross margin. The reason that we are trying to develop all kinds of products into niches, and currently there is a reason where I mentioned live CTV within the CTV, we need to step away from the competition, we need to step away from the commoditization that is happening on CTV, and keep a very, very high margin. The outlook on CTV will be on margin, more on the growth because I think that there is a great opportunity to get high margin.

就直播 CTV 和一般 CTV 而言，這是你的下一個問題，所以你比任何人都更清楚這些 CTV 的東西已經商品化了，我們一直在關注增長和盈利能力，這方面毛利率。我們試圖將各種產品開發到利基市場的原因，目前我在 CTV 中提到直播 CTV 是有原因的，我們需要遠離競爭，我們需要遠離正在發生的商品化在 CTV 上，並保持非常非常高的利潤率。 CTV 的前景將是利潤率，更多的是增長，因為我認為有很大的機會獲得高利潤率。

The other area that we are focusing from CTV standpoint has to do with the convergence of CTV and retail, which is very interesting. We are having some advanced discussions with our retailers, you know, customers, how the two definitely can work together, retail media and CTV. We are going to launch soon one of the most impressive campaigns that we are working on it right now. To summarize, I think that it's the time to break CTV into verticals in order for us to dominate those verticals. Maoz, do you want to take the third one?

從 CTV 的角度來看，我們關注的另一個領域與 CTV 和零售的融合有關，這非常有趣。我們正在與我們的零售商進行一些高級討論，你知道，客戶，兩者如何絕對可以合作，零售媒體和 CTV。我們將很快推出我們目前正在開展的最令人印象深刻的活動之一。總而言之，我認為現在是時候將 CTV 分成多個垂直領域，以便我們主導這些垂直領域。毛茲，你要拿第三個嗎？

Yes, I will take the last one. I must say that in the last years, we're really using the same model. This is the same model that helped us to meet guidance in the last three years. We are implementing the same model, and this is where we are now. We did 40% revenue and 40% EBITDA growth for 2023. We're feeling very comfortable with these numbers and we will keep the same model. The model is the same. Yes, the times change, the market is changing, we are taking all that we know on the model, but this is how we did it and this is how we will do it moving forward.

是的，我要最後一個。我必須說，在過去的幾年裡，我們確實在使用相同的模型。這與幫助我們在過去三年中達到指導目標的模型相同。我們正在實施相同的模型，這就是我們現在所處的位置。我們在 2023 年實現了 40% 的收入增長和 40% 的 EBITDA 增長。我們對這些數字感到非常滿意，我們將保持相同的模式。模型是一樣的。是的，時代在變，市場在變，我們正在把我們所知道的一切都用在模型上，但這就是我們的做法，也是我們前進的方式。

The next question is coming from Andrew Marok with Raymond James.

下一個問題來自 Andrew Marok 和 Raymond James。

Another one on ChatGPT, if I could. Is there potentially a risk that Bing could decline to renew the agreement, maybe not this current agreement or even the next agreement, but if Bing is able to fundamentally transform the search marketplace and gain significant share on an organic basis, is there a risk that Bing maybe no longer needs partnerships to help drive traffic to Bing, because they're already doing enough, and I guess what would the contingency plans be there?

如果可以的話，另一個在 ChatGPT 上。是否存在 Bing 可能拒絕續簽協議的潛在風險，可能不是當前協議甚至下一份協議，但如果 Bing 能夠從根本上改變搜索市場並在有機基礎上獲得重要份額，是否存在這樣的風險Bing 可能不再需要合作夥伴來幫助增加 Bing 的流量，因為他們已經做得足夠多了，我猜會有什麼應急計劃？

Then second on SORT, I guess, what does kind of the, quote-unquote, sales cycle look like for SORT? We're seeing obviously great expansion in that product, but how does it actually get into advertisers' plans from awareness to implementation?

然後是 SORT，我想，SORT 的報價-取消報價銷售週期是什麼樣的？我們顯然看到該產品的巨大擴張，但它實際上如何進入廣告商的計劃，從意識到實施？

As far as ChatGPT, and we're having a very close conversation with the guys, I definitely see no risk. The other way around - first of all, they are $10 billion into technology, I'm sure that someone, I don't know, put them in ROI plan how they're able to get this back, and the only way to get back is to increase their market share. The only way to get this back is that they will increase revenue and they will rely more on partners like CodeFuel to drive more searches, underline quality searches that they're able to monetize and very much generating a healthy business for advertisers. I think that this risk diminishes by the fact that they doubled down on Bing in terms of their strategy, simple as that.

至於 ChatGPT，我們正在與這些人進行非常密切的對話，我絕對認為沒有風險。反過來 - 首先，他們在技術上投入了 100 億美元，我敢肯定有人，我不知道，把他們放在 ROI 計劃中，他們如何能夠收回這一點，以及獲得回報的唯一途徑回來就是增加自己的市場份額。恢復這一點的唯一方法是他們將增加收入，他們將更多地依賴像 CodeFuel 這樣的合作夥伴來推動更多搜索，強調他們能夠貨幣化的高質量搜索，並為廣告商帶來健康的業務。我認為，由於他們在戰略方面對 Bing 加倍下注，這種風險會降低，就這麼簡單。

Now to your question about SORT, so surprisingly the sales cycle with SORT has, as I said, two phases. In phase one, advertisers are a bit concerned and they said, okay, what is the--there is no free lunch here, in other words, when we are adopting SORT, are we compromising on results, in other words CTR. So when they started the campaigns using SORT, it's always and always being done in an AB fashion, where some of the campaign is SORT, using SORT alongside of using cookies. That's 100% of the cases.

現在回答關於 SORT 的問題，令人驚訝的是，正如我所說，SORT 的銷售週期有兩個階段。在第一階段，廣告商有點擔心，他們說，好吧，這裡沒有免費的午餐，換句話說，當我們採用 SORT 時，我們是否會在結果（即點擊率）上妥協。因此，當他們開始使用 SORT 開展活動時，它總是以 AB 方式進行，其中一些活動是 SORT，在使用 cookie 的同時使用 SORT。這是100%的情況。

Now, once they're doing their initial campaign, sometimes it's even more than one, I must say, because markets are quite skeptical - how the hell are you able not using cookies and yet outperform the cookies, or using cookies? That seems for them a bit of a miracle. That's why there is an experiment here, that's why it takes a bit long for us to take 100% of their campaign. But once they reach this level where they--it's clear for them that we're able to deliver and they are not compromising on performance, what happens here is that they increase their spend, and that's what we show them the average deal size, significant growth of average deal size because of that. They gain confidence in the technology and for them, it's definitely doing more CTR-wise.

現在，一旦他們開始了最初的活動，有時甚至不止一次，我必須說，因為市場非常懷疑——你到底怎麼能不使用 cookie 而表現優於 cookie，或者使用 cookie？這對他們來說似乎有點奇蹟。這就是為什麼這裡有一個實驗，這就是為什麼我們需要很長時間才能 100% 地參與他們的活動。但是一旦他們達到這個水平，他們很清楚我們能夠交付並且他們不會在性能上妥協，這裡發生的是他們增加支出，這就是我們向他們展示的平均交易規模，因此，平均交易規模顯著增長。他們對這項技術有了信心，對他們來說，它肯定會在點擊率方面做得更好。

In the end, listen to their consumer. On previous calls, I talked about the ESG and the movement, it's very much aligned with what advertisers believe is the right things to do for their consumer.

最後，聽取他們的消費者的意見。在之前的電話會議上，我談到了 ESG 和運動，它與廣告商認為應該為他們的消費者做正確的事情非常一致。

The next question today is coming from Mark Kelley of Stifel.

今天的下一個問題來自 Stifel 的 Mark Kelley。

Great. Not to go back to the ChatGPT question one more time, I just want to make sure I'm fully grasping how that benefits you guys. I think if the consumer starts to think that Bing is a better place to search versus Google and they go directly to Bing, that would make sense, but I guess, how does that manifest itself in the pre-emptive search product that you guys have? I'm having a hard time wrapping my head around it, so apologies for making you repeat yourself a bit there.

偉大的。我不想再回到 ChatGPT 問題了，我只是想確保我完全理解這對你們有何好處。我認為，如果消費者開始認為 Bing 是比 Google 更好的搜索地點，並且他們直接轉到 Bing，那將是有道理的，但我想，這在你們擁有的先發製人的搜索產品中如何體現？我很難理解它，所以很抱歉讓你在那裡重複了一遍。

Then second just on the retail media business, two quick ones. Is that entirely in the Undertone segment today, and then with iHUB, do you expect to be a part of the supply side as well? Thank you.

其次是零售媒體業務，兩個快速的。這完全是今天的 Undertone 細分市場，然後是 iHUB，您是否希望也成為供應方的一部分？謝謝。

Yes. You know, first on the ChatGPT, but I think we need to take a step back, so how are we able to enjoy and monetize and what we're doing regardless. Bing's big policy is to rely on a very limited amount of partners which they certify. We are one of them, we're not the only one but it's a handful of partners - that's Bing policy. Now what they ask for each partner is to deal with hundreds of publishers, and the way--and they're expecting from the partners as well as from us that we will screen all searches and we will deliver only quality searches, because quality means searches with high intent, otherwise Bing, as you know--Bing is charging the advertiser once they click on an ad on any given search ad page or search results page.

是的。你知道，首先是在 ChatGPT 上，但我認為我們需要退後一步，那麼我們如何能夠享受和貨幣化以及我們正在做的事情。 Bing 的主要政策是依賴他們認證的數量非常有限的合作夥伴。我們是他們中的一員，我們不是唯一的，但它是少數合作夥伴 - 這就是 Bing 政策。現在他們對每個合作夥伴的要求是與數百個發布商打交道，他們希望合作夥伴和我們能夠篩選所有搜索，並且只提供高質量的搜索，因為質量意味著具有高度意圖的搜索，否則 Bing，如您所知 - 一旦廣告商點擊任何給定搜索廣告頁面或搜索結果頁面上的廣告，Bing 就會向廣告商收費。

Now, what is a quality searcher? Quality searcher is the one that clicks and actually has true intent to buy or true intent to visit this website. What is a non-quality is bots and everything here which is not having an intent. That's why in--what Bing is expecting for us to increase the number of quality searches, and the way for us to translate it is working with more and more publishers and more and more quality publishers, improve at the same time our quality infrastructure, and able to screen and deliver only those searches that we believe that they are quality searches. That's first and foremost.

現在，什麼是質量搜索器？質量搜索者是點擊並真正有購買或訪問該網站的真實意圖的搜索者。什麼是非質量是機器人和這裡沒有意圖的一切。這就是為什麼 Bing 期望我們增加高質量搜索的數量，以及我們翻譯它的方式是與越來越多的出版商和越來越多的優質出版商合作，同時改善我們的質量基礎設施，並且能夠篩選並僅提供那些我們認為是高質量搜索的搜索。這是首要的。

Now what is going to happen here is the fact is that while they enhance or improve the consumer interaction with their search, it will be more and more partners that will offer the search capability, more partners that we need to certify, more partners that will go through us, as a result more searches, and we are expecting that the number of 22 million of average daily searches will increase. If this will increase, it has a direct correlation to our ability to generate revenue.

現在這裡要發生的事實是，雖然他們增強或改善了消費者與他們的搜索的互動，但將有越來越多的合作夥伴提供搜索功能，我們需要認證更多的合作夥伴，更多的合作夥伴將通過我們，結果是更多的搜索，我們預計平均每日搜索的數量將增加 2200 萬。如果這會增加，它與我們創收的能力直接相關。

Now in terms of retail media, at this point retail media is only from Undertone. Undertone is developing, it's an explore initiative. Undertone established a whole division, which is a retail-slash-commerce division at this point. We have dedicated sales people, dedicated R&D as we are doing it. It's a dedicated budget for this initiative. Currently under Undertone, we are expecting to leverage this relationship with the brands and basically expand it to other business units in Perion.

現在在零售媒體方面，在這一點上零售媒體只有Undertone。 Undertone 正在發展，這是一項探索計劃。此時，Undertone 建立了一個完整的部門，即零售-斜線-商業部門。我們有敬業的銷售人員，敬業的研發人員。這是這項計劃的專項預算。目前在 Undertone 下，我們期望利用與品牌的這種關係，並將其基本上擴展到 Perion 的其他業務部門。

The next question is coming from Eric Martinuzzi of Lake Street Capital.

下一個問題來自 Lake Street Capital 的 Eric Martinuzzi。

I wanted to ask about the growth for 2023, where we've got the 14% on the top line. I'm wondering, underlying that, what's the implied growth rate for the two segments, the display growth and the search growth?

我想問一下 2023 年的增長情況，我們的收入增長了 14%。我想知道，在此基礎上，顯示增長和搜索增長這兩個部分的隱含增長率是多少？

Definitely when we are arriving to the different model, we're expecting advertising to grow more than the search. We are more conservative around search, but it's--it's (inaudible) the 40%, but we are again not so far between the two. I will say that the search is more close to the 10% and the rest is going to the advertising, which is close to 20%.

當然，當我們轉向不同的模式時，我們期望廣告的增長超過搜索。我們在搜索方面更為保守，但它是（聽不清）40%，但我們再次在兩者之間相距不遠。我會說搜索更接近 10%，其餘的將用於廣告，接近 20%。

Okay, and why is that, because in Q4, we did--and I assume these are organic comps, but the Q4 search was up, what, 49% and display was up 24%?

好的，為什麼會這樣，因為在第四季度，我們做了——我假設這些是有機組合，但是第四季度的搜索量增加了，什麼，49%，顯示量增加了 24%？

We did a great progress also during Q4 with adding the new publisher to the network. As I mentioned before, we're building the model based on where we are now and taking it further, and based on where we are now with the seasonality and just the normal growth, this is our assumption for 2023.

我們在第四季度也取得了很大進展，將新發布者添加到網絡中。正如我之前提到的，我們正在根據我們現在的情況構建模型並進一步發展，並且根據我們現在的季節性和正常增長情況，這是我們對 2023 年的假設。

Okay, and then Tal, congratulations not only on the pending promotion here but also the great work that you did in modernizing CodeFuel. Just curious to know your role in the Microsoft relationship. Are you kind of the point person when it comes to the contract renewal with Microsoft?

好的，然後是 Tal，不僅要祝賀這裡即將晉升的職位，還要祝賀您在現代化 CodeFuel 方面所做的出色工作。只是想知道您在 Microsoft 關係中的角色。在與 Microsoft 續簽合同時，您是關鍵人物嗎？

Yes, so first of all, I really appreciate that; and yes, I'm the main contact with Microsoft, with the entire executives at Microsoft Advertising, have been for the past few years. I negotiated the last agreement and obviously I'll negotiate the next agreement, so yes.

是的，首先，我真的很感激；是的，在過去的幾年裡，我是微軟的主要聯繫人，也是微軟廣告公司的所有高管。我談判了上一份協議，顯然我將談判下一份協議，所以是的。

The next question is coming from Jeff Martin of Roth Capital. Please go ahead.

下一個問題來自 Roth Capital 的 Jeff Martin。請繼續。

Congratulations on a great 2022 and end of the year. Two questions from me. One, how are you viewing the competitive dynamic? Are you seeing your competitors in the marketplace trying to adopt similar models to the iHUB and SORT? Then secondly, SORT as a service, is that currently available? If not, when will it be available and what kind of opportunity do you see that becoming over the long run?

祝賀 2022 年和年底。我有兩個問題。第一，您如何看待競爭動態？您是否看到市場上的競爭對手試圖採用與 iHUB 和 SORT 類似的模型？其次，SORT 即服務，目前是否可用？如果沒有，它什麼時候可用？從長遠來看，您認為它會成為什麼樣的機會？

SORT as a service is an explore initiative, of course not to reveal. We're getting a lot of requests to definitely externalize this service that is done internally. We want to make sure first that SORT works, and if SORT works for us and it works for the 191 customers that are using SORT, and we are able to demonstrate that no one needs to compromise on their results, vice versa, then we feel comfortable externalizing it to publishers, to other DSPs, and we are, let's say at this point, quite advanced in this effort.

SORT as a service 是一項探索計劃，當然不會透露。我們收到了很多請求，希望將這項在內部完成的服務明確外部化。我們首先要確保 SORT 有效，如果 SORT 對我們有效，並且它對使用 SORT 的 191 個客戶有效，並且我們能夠證明沒有人需要在他們的結果上妥協，反之亦然，那麼我們覺得很樂意將其外部化給出版商和其他 DSP，我們可以說，在這一點上，我們在這方面的努力相當先進。

The moment we will go live, or GL as we like to say internally, we definitely will share with you. We are expecting that this will happen hopefully in the first half of 2023.

在我們上線的那一刻，或者我們內部喜歡說的 GL，我們一定會與您分享。我們預計這有望在 2023 年上半年實現。

From a competitive standpoint, the HUB that it's using is an internal product. I don't know what others are doing. It's not the secret sauce, the question is what you are doing with the HUB. We have one advantage, and the advantage that we have, that I don't know if our customer has, is the great and huge amount of signals that we're getting from our direct response or search advertisers--sorry, search users, consumers that are searching. That's a goldmine. If you compare this to the other signal that we have from both sides of the open web, from the supply and the demand, you are getting into a very, let's say a great model that's able to provide us an insight and, based on that, we are building all our modeling because data drives those models.

從競爭的角度來看，它使用的 HUB 是內部產品。我不知道別人在做什麼。這不是秘訣，問題是你在用 HUB 做什麼。我們有一個優勢，我們擁有的優勢，我不知道我們的客戶是否擁有，是我們從我們的直接響應或搜索廣告商那裡獲得的大量信號——抱歉，搜索用戶，正在搜索的消費者。那是一座金礦。如果您將此與我們從開放網絡的供應和需求雙方獲得的其他信號進行比較，您將進入一個非常好的模型，可以為我們提供洞察力，並基於此，我們正在構建我們所有的模型，因為數據驅動這些模型。

We keep investing huge amounts of R&D resources into it and we are trying to believe that that's creating us a greater and deeper moat from our customer. Definitely the media margin and our EBITDA margin, if you're looking at it, EBITDA as a ratio for revenue ex-TAC, we are demonstrating the advantages of the HUB. It's not proprietary for sure, but we are--we believe that there is a way to go for us and we are getting quite a dividend for this investment.

我們不斷投入大量研發資源，我們努力相信這正在為我們創造一條與客戶之間更大更深的護城河。絕對是媒體利潤率和我們的 EBITDA 利潤率，如果你正在看的話，EBITDA 作為收入 ex-TAC 的比率，我們正在展示 HUB 的優勢。它肯定不是專有的，但我們是——我們相信我們有一條路可以走，而且我們從這項投資中獲得了可觀的回報。

Thank you. We're showing no additional questions in queue at this time. I'd like to turn the floor back over to Mr. Gerstel for closing comments.

謝謝。我們目前沒有顯示隊列中的其他問題。我想將發言權轉回給 Gerstel 先生以徵求結束意見。

Hi guys, thank you very much for your participation. See you in the next earnings call. Thank you.

大家好，非常感謝您的參與。下次財報電話會議見。謝謝。

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.

女士們，先生們，感謝你們的參與。今天的活動到此結束。此時您可以斷開線路或退出網絡廣播，然後享受接下來的一天。