Perion Network Ltd (PERI) 2023 Q4 法說會逐字稿

Hello, everybody, and welcome to the Perion Network fourth quarter and full year 2023 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，歡迎參加 Perion Network 第四季和 2023 年全年財報電話會議。今天的會議正在錄製中。詳細介紹財務業績的新聞稿可在公司網站 www.perion.com 上取得。

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 that 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，包括在公司20-F 表格年度報告標題風險因素和其他地方討論的因素，這些因素可能導致實際結果、業績或成就與預期存在重大差異。這些前瞻性陳述預期或暗示的任何未來結果、績效或成就。

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 a non-GAAP basis.

該公司不承諾更新任何前瞻性陳述以反映未來事件或情況。與前幾季一樣，今天報告的結果將根據公認會計原則和非公認會計原則進行分析。

While mentioning EBITDA, we'll 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 and has also been filed on Form 6-K.

在提到 EBITDA 時，我們指的是調整後的 EBITDA。我們在收益報告中提供了非 GAAP 指標與其可比較 GAAP 指標的詳細調整表，該調整表可在我們的網站上獲取，並已在 6-K 表格中提交。

Hosting the call today are Tal Jacobson, Perion's Chief Executive Officer; and Maoz Sigron, Perion's Chief Financial Officer. I will now turn the call over to Tal Jacobson. Please go ahead.

今天主持電話會議的是 Perion 執行長 Tal Jacobson；以及 Perion 財務長 Maoz Sigron。我現在將把電話轉給塔爾·雅各布森。請繼續。

Welcome to Perion's Q4 and full year 2023 earnings. I'm excited to unveil our performance for the quarter reflect on a year of substantial achievements and provide a glimpse into the future. Before we look at the numbers, let's take a minute to align on our mission.

歡迎閱讀 Perion 第四季和 2023 年全年收益。我很高興能夠公佈本季的業績，回顧一年來取得的重大成就，並展望未來。在查看這些數字之前，讓我們花一點時間來調整我們的使命。

Perion unlocks advertising possibilities across all screens, platforms and locations. We are powering our magic by advanced technology. Perion is an ever growing ecosystem, cross-channel, AI driven locally optimized and most importantly, we exist naturally along the consumer's journey.

Perion 開啟了跨所有螢幕、平台和地點的廣告可能性。我們透過先進技術為我們的魔法提供動力。Perion 是一個不斷發展的生態系統，跨渠道，人工智慧驅動，在地優化，最重要的是，我們自然地存在於消費者的旅程中。

Today's consumers lead a dynamic and diverse lifestyle, having multiple interactions with the technologies around them. Each journey is different constructed by a more diverse of multiple touch points. We make sure our clients have the solutions for each of those touch points. We enable advertisers to interact with their consumers naturally, regardless of the platform to use to achieve maximum impact.

當今的消費者過著充滿活力和多樣化的生活方式，與周圍的技術進行多種互動。每個旅程都是由更多樣化的多個接觸點建構的。我們確保我們的客戶擁有針對每個接觸點的解決方案。我們使廣告商能夠與消費者自然互動，無論使用什麼平台來實現最大影響。

Perion's technologies and solutions leave naturally across the consumer's journey. Picture this a typical day in Daniel's life. The day begins when she sips her coffee while scrolling through her favorite social app. Our dynamic video ad appears feeding naturally into our experience, a subtle yet effective touch point.

Perion 的技術和解決方案自然地貫穿消費者的旅程。想像一下這是丹尼爾生活中典型的一天。當她一邊喝著咖啡，一邊瀏覽她最喜歡的社交應用程式時，這一天就開始了。我們的動態影片廣告自然融入了我們的體驗，成為微妙而有效的接觸點。

As she commutes to work our AI driven digital audio ads, Wave tailored messages to her preferences this makes our interaction unique and personal. As she looks at the road, she sees our extra-large video ad or the side of the road those moments are not coincidences. They are carefully crafted touch points in our journey with the consumer.

當她上下班上班時，我們的人工智慧驅動的數位音訊廣告，Wave 根據她的喜好定制訊息，這使得我們的互動獨特且個性化。當她看著路時，她看到我們的超大影片廣告或路邊的這些時刻並非巧合。它們是我們與消費者的旅程中精心設計的接觸點。

As the day goes by Daniel remembers the messaging we presented to her across the channels. She decides to look for that product on her search engine. This is where our search technology and the partnership with Microsoft comes into play.

隨著時間一天天過去，丹尼爾還記得我們透過管道向她傳達的訊息。她決定在她的搜尋引擎上尋找該產品。這就是我們的搜尋技術以及與 Microsoft 的合作關係發揮作用的地方。

When Daniel decides to take a coffee break and read some news online. She sees our well optimize dynamic video display in high impact ads on our favorite websites. Of course, we will meet Daniel, again on her way to her favorite store through our digital out of home ads.

當丹尼爾決定喝杯咖啡休息一下並在網路上閱讀一些新聞。她看到我們在我們最喜歡的網站上的高影響力廣告中優化了動態影片顯示。當然，我們會透過我們的數位戶外廣告在前往她最喜歡的商店的路上再次見到丹尼爾。

In continue to interact with her even within the store. As the day winds down our technology doesn't our CTV dynamic ad solutions continue to present personalized content. Our technology is an immersive cross-channel ecosystem but the company's consumers throughout their daily journey.

即使在店內也繼續與她互動。隨著時間的流逝，我們的 CTV 動態廣告解決方案不再繼續提供個人化內容。我們的技術是一個沉浸式跨通路生態系統，但該公司的消費者貫穿其日常旅程。

I am pleased to report continued profitability for Q4. Once again, diversification proved to be the right strategy. In the fourth quarter, we see a notable growth in search, CTV and Retail Media. Additionally, our strategic acquisition of HiveStack in December, expanded our geographical and channel reach.

我很高興地報告第四季度的持續獲利能力。事實再次證明，多元化是正確的策略。第四季度，我們看到搜尋、CTV 和零售媒體的顯著成長。此外，我們在 12 月策略性收購了 HiveStack，擴大了我們的地理和通路覆蓋範圍。

Looking ahead to 2024, a key aspect of our strategy is to enhance our touch points across the consumer journey using cutting edge technology, hencel̥ we're increasing our investment in technology through our in-house R&D teams, including the newly joined high tech team. We're also actively seeking inorganic opportunities that aligned with our vision with a strong cash flow from operation of over $150 million a year and a total cash of over $470 million. Varian is well positioned to execute additional acquisitions.

展望2024年，我們策略的一個關鍵面向是利用尖端技術來增強我們在消費者旅程中的接觸點，因此我們將透過內部研發團隊（包括新加入的高科技團隊）增加對科技的投資團隊。我們也積極尋找符合我們願景的無機機會，每年營運現金流超過 1.5 億美元，現金總額超過 4.7 億美元。瓦里安有能力執行更多收購。

In Q4 2023, we achieved a robust top and bottom line growth. Our revenue and adjusted EBITDA reflect on our financial strength in our operational efficiency and market competitiveness.

2023 年第四季度，我們實現了強勁的營收和利潤成長。我們的營收和調整後的 EBITDA 反映了我們在營運效率和市場競爭力方面的財務實力。

Turning to our full year performance, the same key indicators underpin our excellence. We've maintained constant focus on revenue growth, profitability and operational optimization, yielding outstanding results through our 2023. Central to our success is our cutting-edge technology that enables agility throughout the consumer's journey.

談到我們的全年業績，同樣的關鍵指標支撐著我們的卓越表現。我們始終專注於營收成長、獲利能力和營運優化，在 2023 年取得了出色的業績。我們成功的核心是我們的尖端技術，它能夠在整個消費者的旅程中實現敏捷性。

Now let's see where some of our technologies met consumers in Q4, the Perion CTV Solution are gaining momentum with advertisers. According to eMarketer, CTV ad spending is on the rise. Impressively scenarios results stand way above their growth projections, demonstrating our ability to execute and conquer any channel and vertical we aim for.

現在讓我們來看看我們的一些技術在第四季度與消費者見面的地方，Perion CTV 解決方案正在獲得廣告商的青睞。據 eMarketer 稱，CTV 廣告支出正在增加。令人印象深刻的是，情境結果遠高於其成長預測，這證明了我們執行和征服我們目標的任何管道和垂直領域的能力。

One of our innovations in the CTV space is pause ads in partnership with DirecTV. We've created yet another opportunity for our branded moment and on TV is also one of the few ways to guarantee that commercial message is notice in both linear and CTV when the viewers pass content, the CTV ads come into play, offering, segmented audience targeting and increasing consumer engagement.

我們在 CTV 領域的創新之一是與 DirecTV 合作暫停廣告。我們為我們的品牌時刻創造了另一個機會，電視也是保證商業訊息在線性和 CTV 中得到關注的少數方法之一，當觀眾傳遞內容時，CTV 廣告開始發揮作用，為細分受眾提供服務瞄準並提高消費者參與度。

Those ads are both noticeable and actionable. This ad byshipped is a great example. We build those as in short repeating loops so that viewers are virtually guaranteed to see them. Our pause ads run across nearly every TV network on DirecTV inventory, both linear and streaming.

這些廣告既引人注目又可行。這則附帶的廣告就是一個很好的例子。我們以短重複循環的方式構建這些內容，以便觀眾幾乎可以保證看到它們。我們的暫停廣告幾乎在 DirecTV 庫存上的每個電視網絡上投放，包括線性和串流媒體。

This includes TV networks without any ads in linear, such as HBO, sports networks like ESPN brands that already use our pause Tv ads include Paco Rabanneon, Con Edison, Shipt, Twilio, Eversource, AAA and more.

這包括沒有任何線性廣告的電視網絡，例如 HBO，以及已經使用我們的暫停電視廣告的 ESPN 品牌等體育網絡，包括 Paco Rabanneon、Con Edison、Shipt、Twilio、Eversource、AAA 等。

The Perion Retail Media solution continues to grow and outpace both our internal expectation and industry benchmarks. This is a testament to our effective strategy and execution in this rapidly growing space as part of our Retail Media solutions.

Perion 零售媒體解決方案不斷發展並超越了我們的內部預期和行業基準。作為我們零售媒體解決方案的一部分，這證明了我們在這個快速成長的領域中的有效策略和執行力。

Last quarter, we launched our generative AI audio advertising technology Wave, as the campaign with Albertsons was the first one we revealed, now I'm happy to share that Wave is adopted by additional leading brands running on leading platforms such as Spotify, iHeartMedia, Audioboom and many more.

上個季度，我們推出了生成式人工智慧音訊廣告技術Wave，與Albertsons 合作的廣告活動是我們發布的第一個廣告活動，現在我很高興與大家分享，Wave 已被Spotify、iHeartMedia 等領先平台上運行的其他領先品牌採用。 Audioboom 等等。

This time we're sharing the Pep Boys campaign to our non-US audience. Pep Boys is a leading US automotive service provider operating in more than 900 locations across the US. Let's listen to this generative AI ad (video playing)

這次我們將向非美國觀眾分享 Pep Boys 活動。Pep Boys 是美國領先的汽車服務供應商，在美國 900 多個地點開展業務。讓我們來聽聽這則生成式人工智慧廣告（影片播放）

This narrative AI audio ad creates communication between brands and potential consumers, offering relevant solutions in a store that sells natural and appealing, this approach is a prime example of how we leverage AI to revolutionize consumers' interaction, making every message both heard and acted upon.

這種敘述性人工智慧音訊廣告在品牌和潛在消費者之間建立了溝通，在商店中提供相關的解決方案，銷售自然且有吸引力，這種方法是我們如何利用人工智慧徹底改變消費者互動的典型例子，讓每一個訊息都被聽到並採取行動。

We are very proud of the partnership with Amazon that we've announced this quarter in which we integrated Amazon publisher services into our video platform. With this integration publishers now have access through a wider range of ad demand for more precise targeting and enhanced campaign performance.

我們對本季宣布的與亞馬遜的合作關係感到非常自豪，我們將亞馬遜發布商服務整合到我們的視訊平台中。透過這種集成，發布商現在可以透過更廣泛的廣告需求來實現更精確的定位和增強的廣告活動效果。

Some of the notable publishers that are already working with us using the Amazon publisher services include IMDB, Van Net, Bored Panda and publishers collective, following our strategic acquisition of HiveStack, we shared our plans to expand into new markets.

一些著名的出版商已經與我們合作使用亞馬遜出版商服務，包括 IMDB、Van Net、Bored Panda 和出版商集體，在我們策略收購 HiveStack 後，我們分享了拓展新市場的計劃。

I am proud to announce we're delivering on that commitment with a major partnership in Brazil. We've joined forces with a lead for media, one of the largest media owners in Brazil's vibrant media landscape. While this partnership is not just about the numbers, the addition of over 46,000 digital screens is certainly impressive.

我很自豪地宣布，我們正在透過與巴西的主要合作夥伴來履行這項承諾。我們與媒體領導者聯手，該領導者是巴西充滿活力的媒體領域最大的媒體所有者之一。雖然此次合作不僅涉及數字，但新增的 46,000 多個數位螢幕無疑令人印象深刻。

It also presents exciting opportunities for our high-impact display and creative solutions. The Brazilian market offers a dynamic and rapidly growing advertising landscape with Retail Media reposition to make a significant impact.

它還為我們高影響力的展示和創意解決方案提供了令人興奮的機會。巴西市場提供了一個充滿活力且快速成長的廣告環境，零售媒體的重新定位將產生重大影響。

One of our recent successes in our digital out of home technology for retailers and CPG companies is this campaign for Elena Rubenstein in Hong Kong promoting their new power cell product. The company's core strategy involved advanced proximity geo-fencing to plan and activate campaigns targeting specific physical locations in the proximity of a Lennar women's 10 store in Hong Kong.

我們最近在為零售商和消費品公司提供數位戶外技術方面的成功之一是為 Elena Rubenstein 在香港推廣他們的新電池產品而開展的活動。該公司的核心策略涉及先進的鄰近地理圍欄，以規劃和啟動針對香港 Lennar 女裝 10 店附近特定實體位置的活動。

Let's take a look (video playing) Our digital out of home platforms advance geo-fencing feature along with audience targeting increase product awareness and store visits significantly.

讓我們看一下（影片播放） 我們的數位戶外平台推進了地理圍欄功能以及受眾定位，顯著提高了產品知名度和商店訪問量。

The success of this campaign is another example of how immersive the consumer journey becomes with the use of advanced technologies.

活動的成功再次證明了先進技術的使用讓消費者的旅程變得多麼身臨其境。

To conclude, our focus on diversified technologies that powers the consumer's journey and strategic acquisitions continues to drive sales, impressive growth and success. Now Maoz our CFO, will provide a more detailed financial analysis.

總而言之，我們對推動消費者旅程和策略性收購的多元化技術的關注繼續推動銷售、令人印象深刻的成長和成功。現在，我們的財務長毛茲將提供更詳細的財務分析。

Thank you, Tal. Good afternoon and good morning to those of you joining us from the US. 2023 proved to be a meaningful year, demonstrating the agility and resilience of our business model at Perion. Strict execution of our diversification strategy and cost control measures were key to our success in delivering healthy, profitable revenue growth and margin expansion.

謝謝你，塔爾。來自美國的各位下午好，早安。事實證明，2023 年是有意義的一年，展現了 Perion 業務模式的敏捷性和彈性。嚴格執行多元化策略和成本控制措施是我們成功實現健康、獲利的收入成長和利潤率擴張的關鍵。

Perion is among the most diverse companies in the [EdTech] space. Therefore, we were able to quickly respond and capitalize on our customers' spending allocations by delivering the right product. We successfully honest efficiency and innovation to exceed internal expectations for both profitability and margin goals.

Perion 是 [EdTech] 領域最多元化的公司之一。因此，我們能夠快速回應並透過提供正確的產品來利用客戶的支出分配。我們成功地以誠實的效率和創新超越了獲利能力和利潤目標的內部預期。

Perion achieved year-over-year revenue growth of 16% to $743 million and 28% growth in adjusted EBITDA, reaching $169 million with a 23% margin and an impressive 55% exact margin variance, strong and consistent cash flow from operations and our significant net cash position generated over $20 million in financial income in 2023.

Perion 的營收年增16%，達到7.43 億美元，調整後EBITDA 成長28%，達到1.69 億美元，利潤率為23%，確切利潤差高達55%，令人印象深刻，營運現金流強勁且持續，我們的2023 年淨現金部位產生超過 2,000 萬美元的財務收入。

That along with our cost efficiency and tax optimization resulted in a year-over-year growth in GAAP net income of 18% to over $117 million and 40% year-over-year increase in non-GAAP net income to over $167 million.

再加上我們的成本效率和稅務優化，導致 GAAP 淨利潤年增 18%，超過 1.17 億美元，非 GAAP 淨利潤年增 40%，超過 1.67 億美元。

For the year, cash flow from operations increased by 27% year over year $155.5 million. Our diversified business model and product mix allows us to quickly respond to shifts in the market, in essence, following the money with the right solutions.

全年營運現金流量為 1.555 億美元，較去年同期成長 27%。我們多元化的業務模式和產品組合使我們能夠快速回應市場變化，本質上是用正確的解決方案追隨資金。

Among the top growth drivers in 2023, Retail Media stood out far exceeding our internal expectations with a year-over-year revenue increase of 114% to nearly $50 million. CTV revenue also experienced strong growth of 56% year-over-year as more and more customers adopted our high impact CTV solutions.

在 2023 年的主要成長動力中，零售媒體脫穎而出，遠遠超出我們的內部預期，營收年增 114%，達到近 5,000 萬美元。中視隨著越來越多的客戶採用我們高影響力的 CTV 解決方案，營收也實現了 56% 的年強勁成長。

Sales grew by 23% year-over-year, boosted by advertiser budget shift to high-intent advertising. Key to our success is our ability to develop new innovations that address the needs of our customers. In parallel, we consistently find new ways to improve the efficiency of our operations.

由於廣告主預算轉向高意圖廣告，銷售額較去年同期成長 23%。我們成功的關鍵是我們有能力開發新的創新來滿足客戶的需求。同時，我們不斷尋找新的方法來提高營運效率。

In the fourth quarter, we completed acquisition of HiveStack, a global innovative programmatic digital out-of-home solution, also known as DOOH. This transaction is expected to significantly contribute to Perion's diversification strategy.

第四季度，我們完成了HiveStack的收購，HiveStack是全球創新的程式化數位戶外解決方案，也稱為DOOH。此次交易預計將對 Perion 的多元化策略做出重大貢獻。

It will allow us to establish a considerable footprint in the fast-growing digital out-of-home channel. According to PQ Media. It is expected to show a three-year schedule of 15% for 2024 to 2026. Our plan is to leverage synergies between our Retail Media solutions and high-tech digital out-of-home capabilities.

它將使我們能夠在快速成長的數位戶外管道中建立相當大的足跡。據 PQ 媒體報導。預計2024年至2026年的三年計畫將達到15%。我們的計劃是利用我們的零售媒體解決方案和高科技數位戶外功能之間的協同作用。

And offer complete compelling solutions to our customer base. While Perion is strong in the US, I think is strong internationally. Together, we can open new markets. We expect this transaction to result in significant cross-sell opportunities and geographic expansion to fast-growing markets. I would like to say that the ongoing conflict in Israel has not materially impacted our operations and business results.

並為我們的客戶群提供完整、引人注目的解決方案。雖然 Perion 在美國很強大，但我認為在國際上也很強大。我們可以共同開拓新市場。我們預計此交易將帶來重大的交叉銷售機會以及對快速成長市場的地理擴張。我想說的是，以色列持續的衝突並未對我們的營運和業績產生重大影響。

Nearly 100% of Perion's revenue is generated outside of Israel, and only 45% of our cash and cash equivalents are held in Israel. Our employees are drafted to military service are mostly back to work and business continues and uninterrupted.

Perion 近 100% 的收入來自以色列境外，而我們只有 45% 的現金和現金等價物存放在以色列。我們應徵入伍的員工大部分都已返回工作崗位，業務仍在繼續且不間斷。

Now let's review the financial highlights for the fourth quarter. Revenue increased by 12% year-over-year to $234.2 million contribution extract was $19.6 million, increased by 3% year-over-year, delivering 39% margin.

現在讓我們回顧一下第四季的財務亮點。營收年增 12%，達到 2.342 億美元，貢獻提取金額為 1,960 萬美元，年增 3%，利潤率為 39%。

Adjusted EBITDA was $63.9 million, increased by 12% year-over-year, delivering 23% margin in the 59% exact margin. non-GAAP net income increased by 19% year-over-year to $52.9 million. Non-GAAP diluted earnings per share increased by 16% year-over-year to $0.0104.

調整後 EBITDA 為 6,390 萬美元，年增 12%，實際利潤率為 59%，利潤率為 23%。非 GAAP 淨利潤年增 19% 至 5,290 萬美元。非公認會計原則稀釋後每股收益年增 16% 至 0.0104 美元。

Our diversification strategy created opportunities that resulted in continued impressive growth. On a yearly basis. The revenue was $743.2 million an increase of 16% year-over-year. Our two year gain was 25%, demonstrating the strength of our product mix.

我們的多元化策略創造了機會，帶來了持續令人矚目的成長。按年計算。營收為 7.432 億美元，年增 16%。我們的兩年成長率為 25%，證明了我們產品組合的實力。

On a quarterly basis, the revenue for the fourth quarter was $234.2 million, an increase of 12% year-over-year, and our two year revenue CAGR was 22%.

按季度計算，第四季的營收為 2.342 億美元，年成長 12%，我們的兩年營收複合年增長率為 22%。

Turning now to the display advertising for the fourth quarter Display Advertising revenue decreased by 3% year-over-year to $119.8 million, accounting for 51% of total revenue. The quarterly decrease in display advertising revenue was primarily due to a 32% year-over-year decline in video revenue.

現在轉向展示廣告，第四季展示廣告收入較去年同期下降3%至1.198億美元，佔總收入的51%。展示廣告收入季度下降主要是由於影片收入年減 32%。

This is due to shifting of inventory from video to display to gain higher profits. Our Retail Media results continued to exceed our internal expectations with quarterly revenue of $20.2 million, an increase of 196% year-over-year.

這是由於庫存從視頻轉向展示以獲得更高的利潤。我們的零售媒體業績持續超越我們的內部預期，季度營收為 2,020 萬美元，較去年同期成長 196%。

This is accounts for 70% of display advertising revenue compared with 6% in the fourth quarter of 2022. Our quarterly CTV business continued to expand, growing by 69% year-over-year, representing 12% of this advertising revenue compared with 7% last year.

這佔展示廣告收入的 70%，而 2022 年第四季這一比例為 6%。我們的季度CTV業務持續擴大，年增69%，佔廣告收入的12%，而去年為7%。

Turning now to our sales business, the quarterly sales revenue significantly increased by 33% year-over-year to $114.4 million, representing an impressive 41% two year CAGR during the quarter. Average daily searches increased by 37% over the same period last year and the number of publishers grew by 4% year-over-year.

現在轉向我們的銷售業務，季度銷售收入年增 33%，達到 1.144 億美元，該季度的兩年複合年增長率高達 41%，令人印象深刻。日均搜尋量較去年同期成長 37%，發布商數量較去年同期成長 4%。

During the last two years, we have seen budget shift to direct response. This is a result of Perion's unique position in search, and we have been able to capitalize on that, for 2023, our media margin was 42%, which was on par with 2022 and consistent with our expectations. We were able to maintain this strong margin due to our product mix and the media buying optimization of our supply and demand assets.

在過去兩年中，我們看到預算轉向直接回應。這是 Perion 在搜尋領域獨特地位的結果，我們能夠利用這一點，2023 年，我們的媒體利潤率為 42%，與 2022 年持平，符合我們的預期。由於我們的產品組合以及供需資產的媒體購買優化，我們能夠維持如此強勁的利潤率。

For the fourth quarter of 2023, the media margin was 39%, down from 42% in the same period last year due to product mix change in our efforts to gain market share in a competitive environment, we are very proud of Perion's ability to direct resources to high-growth and high margin areas in 2023.

2023 年第四季度，媒體利潤率為39%，低於去年同期的42%，這是由於我們努力在競爭環境中獲得市場份額而進行的產品結構變化，我們對Perion 能夠直接指導的能力感到非常自豪2023年將資源投入高成長和高利潤領域。

In addition, our unrelenting emphasis on operational efficiency and profitability allowed us to achieve strong margin growth for both the full year and the fourth quarter. Adjusted EBITDA for the year was $169.1 million increased by 28% year-over-year with 23% margin compared with 21% in 2022 and 50% in 2021.

此外，我們對營運效率和獲利能力的不懈重視使我們能夠在全年和第四季度實現強勁的利潤成長。全年調整後 EBITDA 為 1.691 億美元，年增 28%，利潤率為 23%，而 2022 年為 21%，2021 年為 50%。

Adjusted EBITDA to contribution extract margin was 55%, up from 49% in 2022 and 37% in 2021. Adjusted EBITDA for the quarter increased by 12% year-over-year to $53.9 million, reflecting a 23% margin. Adjusted EBITDA to contribution extract margin was 59%, up from 55% in the fourth quarter of 2022 and 45% in 2021.

調整後的 EBITDA 佔貢獻提領利潤率為 55%，高於 2022 年的 49% 和 2021 年的 37%。該季度調整後 EBITDA 年增 12% 至 5,390 萬美元，利潤率為 23%。調整後的 EBITDA 佔貢獻提領利潤率為 59%，高於 2022 年第四季的 55% 和 2021 年的 45%。

This is among the highest in the biotech industry. On a GAAP basis, fourth-quarter net income increased by 2% to $39.4 million or $0.78 per diluted share. This is in comparison with $38.7 million or $0.79 per diluted share in the fourth quarter of 2022.

這是生物技術產業中最高的。以 GAAP 計算，第四季淨利成長 2%，達到 3,940 萬美元，即稀釋後每股收益 0.78 美元。相比之下，2022 年第四季的收入為 3,870 萬美元，即稀釋後每股 0.79 美元。

The increase in net income is mainly due to acquisition expenses, retention and change in fair value of contingent consideration. On a non-GAAP basis, Q4 net income increased by 19% to $52.9 million or $0.0104 per diluted share.

淨利增加主要是由於收購費用、保留及或有對價公允價值變動所致。以非公認會計準則計算，第四季淨利成長 19%，達到 5,290 萬美元，即稀釋後每股收益 0.0104 美元。

This is compared with $44.7 million or $0.19 per diluted share during the fourth quarter of 2022. On a GAAP basis, full year 2023 net income increased by 18% to $117.4 million or $0.0234 per diluted share. This is compared with $99.2 million or $0.0206 per diluted share in 2022.

相比之下，2022 年第四季的營收為 4,470 萬美元，即稀釋後每股 0.19 美元。以 GAAP 計算，2023 年全年淨利成長 18%，達到 1.174 億美元，即稀釋後每股收益 0.0234 美元。相比之下，2022 年為 9,920 萬美元，即稀釋後每股 0.0206 美元。

On a non-GAAP basis, net income increased by 40% to $167.4 million or $0.0333 per diluted share for 2023. This is in compared with $119.8 million or $0.0246 per diluted share in 2022. Over the past years, Perion has consistently improved its profitability. This is mainly thanks to our adoption of operational excellence and strict cost control measures throughout the organization that increase efficiency and productivity.

以非公認會計準則計算，2023 年淨利成長 40%，達到 1.674 億美元，即稀釋後每股收益 0.0333 美元。相比之下，2022 年為 1.198 億美元，即稀釋後每股 0.0246 美元。過去幾年，Perion 的獲利能力不斷提高。這主要歸功於我們在整個組織中採用卓越營運和嚴格的成本控制措施，並提高了效率和生產力。

For the fourth quarter, non-GAAP operating expenses and cost of revenue were 60% of revenue compared with 19% in the fourth quarter of 2022 and 23% in the fourth quarter of 2021. On an annual basis, we can see the same down what rents and non-GAAP operating expenses and cost of revenue were 19% of revenue compared with 21% in 2022 and 25% in 2021.

第四季度，非 GAAP 營運費用和收入成本佔收入的 60%，而 2022 年第四季為 19%，2021 年第四季為 23%。以年度計算，我們可以看到租金和非 GAAP 營運費用以及收入成本佔收入的 19%，而 2022 年為 21%，2021 年為 25%。

This continuous improvement was mainly driven by cross-company implementation of process automation, the depreciation of the Israeli shekel versus the USD and the offshoring of some of our operations.

這種持續改進主要是由於流程自動化的跨公司實施、以色列謝克爾對美元的貶值以及我們的一些業務的離岸外包。

Moving to the balance sheet and cash flow highlights. For the year operating cash flow was $165.5 million compared with $122.1 million in 2022, increased by 27% year-over-year. Operating cash flow for the fourth quarter was $50.2 million, compared to $38.2 million in the same period last year, an increase of 32%. As of December 31, 2023, our net cash was $473 million, inclusive of the cash paid in the recent HiveStack acquisition.

轉向資產負債表和現金流亮點。全年營運現金流為 1.655 億美元，較 2022 年的 1.221 億美元成長 27%。第四季營運現金流為5,020萬美元，較去年同期的3,820萬美元成長32%。截至 2023 年 12 月 31 日，我們的淨現金為 4.73 億美元，包括最近收購 HiveStack 時支付的現金。

Finally, moving to our 2024 outlook. The guidance reflects our plans to significantly invest in technology to enhance our multi-channel solutions and to capitalize on HiveStack's ability to expand our reach into additional geographic. Strong execution of this initiative is expected to result in strong double digit revenue and adjusted EBITDA growth in the coming years. This concludes my financial overview, and now we can open the line for questions.

最後，展望 2024 年。該指南反映了我們計劃大力投資技術以增強我們的多通路解決方案，並利用 HiveStack 將業務範圍擴大到更多地區的能力。該計劃的大力執行預計將在未來幾年帶來強勁的兩位數收入和調整後的 EBITDA 成長。我的財務概述到此結束，現在我們可以開始提問了。

Thank you, and I'll be conducting a question and answer session (Operator Instructions)

謝謝，我將進行問答環節（操作員說明）

Jason Helfstein, Oppenheimer. Your line is now live.

賈森·赫夫斯坦，奧本海默。您的線路現已上線。

Thank you. Good morning, everybody. Two questions. First, talk about how you think about Perion benefiting from chrome cookie deprecation you know in the past, you've talked about how you're not reliant on cookies, but how you actually think you could benefit when that happens in the industry?

謝謝。大家早安。兩個問題。首先，談談您如何看待 Perion 從 chrome cookie 棄用中受益，您知道過去，您談到如何不依賴 cookie，但您實際上認為當行業發生這種情況時您會如何受益？

And then my second question, and I think guidance is slightly weaker than we expected on an organic basis by 200 basis points or so, not huge, but maybe talk about what headwinds you're seeing right now for '24 that would keep you from growing stronger than 10% on an organic basis. Thank you.

然後是我的第二個問題，我認為指引比我們在有機基礎上預期的略弱200 個基點左右，不是很大，但也許可以談談您現在看到的24 年的不利因素，這些不利因素會阻止您有機增長超過 10%。謝謝。

Okay. Thank you, Jason. So on first of all, let's talk about cookies so, as you know, we have soared and we are now working on SORT 2.0, which we're going to launch during the year there. And we are we are prepared to all those could us implementations.

好的。謝謝你，傑森。首先，讓我們來談談 cookie，正如您所知，我們已經飛速發展，我們現在正在開發 SORT 2.0，我們將在今年推出它。我們已經準備好實施所有這些。

But we I think we're going to gain from that. The fact that a lot of other companies are not going to be prepared for that. And hopefully, we're going to get more budgets just by the fact that we are ready for that. So that's on the cookie part or the other one, the guidance item.

但我認為我們將從中受益。事實上，許多其他公司不會為此做好準備。希望我們能夠為此做好準備，從而獲得更多預算。這就是 cookie 部分或另一個部分，即指導項。

So thank you Jason. So as you noted, the guidance, let's take a 10% growth on the EBITDA and revenue on a performer basis. And this is why there is a big change in the product mix, mainly due to video that take the numbers to a new level, as we said in the last quarter and also during the last, during this quarter, the variability of margin is the most important element in our business.

所以謝謝你傑森。正如您所指出的，指導意見中，我們將 EBITDA 和收入按績效計算增長 10%。這就是為什麼產品組合發生了很大的變化，主要是由於影片將數字提升到了一個新的水平，正如我們在上個季度和上個季度所說的那樣，在本季度中，利潤率的變化是我們業務中最重要的元素。

And we are actually doing this more for video to this day when we can get higher margin. And this is the main reason for the revenue decrease in video during the fourth quarter. And this is also implemented in our model for next year, offset by the growth driver and as we also mentioned in the retail business, the CTV and also now that we have the digital out-of-home, this isn't that they're both over for 2024, but all in all, the 10% efficacy in the model that we are now using and very much effect all the changes that we have discussed for the fourth quarter.

事實上，直到今天，當我們可以獲得更高的利潤時，我們還在影片方面做更多的工作。這也是第四季視訊收入下降的主要原因。這也將在我們明年的模型中實施，被成長動力所抵消，正如我們在零售業務、CTV 中也提到的那樣，而且現在我們有了數位戶外服務，這不是他們的目標。到2024 年，這一切都結束了，但總而言之，我們現在使用的模型中10% 的功效對我們在第四季度討論的所有變化都有很大影響。

Thank you.

謝謝。

Laura Martin, Needham and Co. Your line is now live.

Laura Martin，Needham and Co. 您的線路現已上線。

Good morning, guys. Have heard about genAI selling your guidance in your guidance. You said that you're going to have an investment year. And it feels like with and just listening to like big tech is going to be a lot of investment in infrastructure for genAI.

早上好傢伙。聽說過 genAI 在你的指導中出售你的指導。你說過你將迎來投資年。感覺就像大型科技公司一樣，光聽就會對 genAI 的基礎設施進行大量投資。

Now the resultant two questions. One is on is a lot of your investment coming because of the genAI upgraded. Second, what are your genAI, when you think about the product roadmap, how are you thinking about incorporating genAI into product?

現在產生兩個問題。其中之一是，由於 genAI 的升級，您將獲得大量投資。第二，你的genAI是什麼，當你考慮產品路線圖時，你是如何考慮將genAI融入產品中的？

That's a great question. Thank you, Laura. So our investment comes from a few points. One, absolutely genAI. We've presented the genAI Wave product that we launched last quarter and the progress we've made with it.

這是一個很好的問題。謝謝你，勞拉。所以我們的投資來自於幾個點。一，絕對是genAI。我們介紹了上季推出的 genAI Wave 產品以及我們在該產品上的進展。

So we're generating and created when I present genAI, we are implementing genAI across all our infrastructure. And we also know we bought HiveStack, which is a pure technology play, and we're integrating that into everything Perion.

因此，當我介紹 genAI 時，我們正在生成和創建，我們正在所有基礎設施中實施 genAI。我們還知道我們購買了 HiveStack，這是一個純粹的技術遊戲，我們正在將其整合到 Perion 的所有內容中。

So we're investing in, you know, a unified infrastructure and obviously genAI is a very big part of that. We're seeing that, you know, on all of the technology companies, big investment in AI want to be want to continue to be very advance. So we're going to continue to you and to invest in genAI technologies. That's a that's a pretty big part of 2024.

所以我們正在投資統一的基礎設施，顯然 genAI 是其中非常重要的一部分。我們看到，所有科技公司都希望對人工智慧進行大量投資，並繼續保持領先地位。因此，我們將繼續為您投資 genAI 技術。這是 2024 年的一個相當大的部分。

And then I guess my other one, just building on the guidance issue is, are you guys so it sounds like you're saying there's going to be a revenue mixture in 2024 that's going to have lower margin. That's so sort of how I heard you answer Jason's question is, is that permanent or is it I would have guessed your growth in CTV., which is really robust, would have really helped your margins. But can you talk sort of about the margins and why we're getting a margin downdraft from the mix shift please?

然後我想我的另一個問題，只是建立在指導問題的基礎上，你們是嗎？聽起來你們是在說 2024 年將出現一種利潤率較低的收入組合。我聽到你回答傑森的問題時就是這樣的，是永久性的還是我猜你在 CTV 的成長，這真的很強勁，真的會幫助你的利潤。但您能談談利潤率以及為什麼我們會因混合轉型而導致利潤率下降嗎？

Thank you Laura, so there is no dramatic change with the media margin we're talking about again, if I may do it as a now talking about 2024 margin, we're talking about 41% margin, more or less. This is our estimated estimation, which is not far from the 42% we have for 2024 sorry, for 2023.

謝謝勞拉，所以我們再次討論的媒體利潤率沒有顯著變化，如果我可以像現在談論 2024 年利潤率一樣，我們談論的利潤率或多或少是 41%。這是我們的估計，與 2024 年（抱歉，2023 年）的 42% 相去不遠。

And again, in order to gain market and another to be able to convert to have effective competition. This is the number that we believe can help us to keep and it takes you into '25 and '26. And this is in line with our model.

再次，為了贏得市場，並且能夠轉變為有效的競爭。我們相信這個數字可以幫助我們保留它，它將帶您進入“25”和“26”。這符合我們的模型。

Yes, there is a shift and of the product mix that changed a bit the margin I think is any is new. The fact that they have now less video is another is another piece. So the mix is different, but the total picture is not different. We are above 40%, this is our main goal. And the 41% now at the beginning of the year reflect very much my thinking about the 2024 launch.

是的，產品組合發生了一些變化，我認為任何利潤都是新的。事實上，他們現在的影片越來越少，這是另一回事。所以混合是不同的，但整體情況並沒有不同。我們超過了40%，這是我們的主要目標。年初的 41% 很大程度上反映了我對 2024 年發布的想法。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Mark Kelley, Stifel. Your line is now live.

馬克凱利，斯蒂菲爾。您的線路現已上線。

Great. Thank you very much and appreciate taking the questions. Two quick ones, and apologies if you addressed some of this in the prepared remarks, and I'm kind of bouncing between calls, but this next version of sort, I know it's not out yet. I know it's early, but any data points you can provide in terms of how, you know, effectiveness versus the the original version of sort that's in the market today.

偉大的。非常感謝並感謝您提出問題。兩個快速的，如果你在準備好的評論中解決了其中的一些問題，我很抱歉，我在電話之間來回切換，但下一個版本，我知道它還沒有出來。我知道現在還為時過早，但是您可以提供任何數據點，說明與當今市場上的原始版本相比，其有效性如何。

I guess what's informing your changes that you're making on the back end for sorry, that's the first one and then the second one, the shift between display and video. I guess how do those conversations work with your clients when you're changing where their budgets are allocated? is it something that your clients are just comfortable you shifting budgets wherever they're going to get a better ROE as or I guess what goes into that whole process in terms of where you're steering and allocating budgets? Thank you.

我想是什麼通知了您在後端所做的更改，抱歉，這是第一個，然後是第二個，即顯示和視訊之間的轉換。我想當您改變客戶的預算分配方式時，這些對話如何進行？您的客戶是否願意您將預算轉移到任何可以獲得更好 ROE 的地方，或者我猜您在指導和分配預算方面涉及整個過程？謝謝。

Okay, absolutely. And on SORT 2.0, as you know, when you know with technology, we constantly need to make advanced improvements, right? So what was okay for SORT, two years ago when we built that now needs to get a robust uplift, including AI, including genAI, a lot of infrastructure through the data and a lot of updates.

好吧，絕對可以。在 SORT 2.0 上，如您所知，當您知道技術時，我們不斷需要進行高級改進，對吧？所以，兩年前我們在建置 SORT 時還可以，現在需要強勁的提升，包括人工智慧，包括 genAI，透過數據和大量更新提供大量基礎設施。

As you probably know, Google released their sandbox for the cookie-less era, which again, I think is getting implemented. So we're constantly adding one more feature into SORT but this specific one is going to be a huge leap into something even bigger.

您可能知道，Google 發布了針對無 cookie 時代的沙箱，我認為該沙箱正在實施。因此，我們不斷在 SORT 中添加一項功能，但這一特定功能將是向更大的目標邁出的一大步。

So we're constantly adding more features SORT 2.0 is going to be a lot more advanced and video versus display. So the way it works is we sit with our code on websites and every time we go into website, it says request to all of my partners.

因此，我們不斷添加更多功能，SORT 2.0 將會更加先進，視訊與顯示相比也會更加先進。所以它的工作方式是我們把我們的程式碼放在網站上，每次我們進入網站時，它都會向我所有的合作夥伴發出請求。

And then based on what we got, we know we want to show a video ad or display ad right and now since Q3, meaning that actually happened last quarter, we saw that video ad got lower rates than [pause]. So we could we could have made a bigger margin on display and are actually aren't as willing to have told that because on the publishing side, publisher just want a higher yield, which the algorithm generates a higher yield. So this is why our algorithm Q3, Q4 four decided that the state will generate higher profits, and that's how it's being chosen.

然後根據我們得到的訊息，我們知道我們想要展示影片廣告或展示廣告，從第三季度開始，這意味著實際上發生在上個季度，我們看到影片廣告的費率低於[暫停]。因此，我們本可以在展示上獲得更大的利潤，但實際上並不願意告訴我們，因為在版本方面，出版商只是想要更高的產量，而演算法會產生更高的產量。所以這就是為什麼我們的演算法 Q3、Q4 四決定國家會產生更高的利潤，這就是它的選擇方式。

Okay, great. Thanks very much.

好的，太好了。非常感謝。

Thank you.

謝謝。

Jeff Martin, Roth Capital Partners. Your line is now live.

傑夫馬丁，羅斯資本合夥人。您的線路現已上線。

Thank you. Good afternoon and good morning to everybody. Wanted to see if you could elaborate on the geographic expansion strategy. I know you mentioned the new relationship in Brazil looks like that could be very meaningful over time. But just curious if you could elaborate on on any other details on your geographic expansion strategy?

謝謝。大家下午好，早安。想看看您是否可以詳細說明地域擴張策略。我知道你提到巴西的新關係隨著時間的推移可能會非常有意義。但只是好奇您是否可以詳細說明您的地理擴張策略的任何其他細節？

Absolutely. So the reason why we bought HiveStack because we think and we see that it's super synergetic with everything that we do. So Undertone in HiveStack actually sell the same type of client, right? The agencies, nownAdded Geo has amazing leadership within the US, but HiveStack has an amazing relationship everywhere out of.

絕對地。所以我們購買 HiveStack 的原因是因為我們認為並且我們看到它與我們所做的一切具有超級協同作用。那麼 HiveStack 中的 Undertone 實際上銷售相同類型的客戶端，對吧？這些機構（現在的 Added Geo）在美國擁有令人驚嘆的領導力，但 HiveStack 在世界各地都擁有令人驚嘆的關係。

So we're going to push the existing product that we have through the HiveStack relationships worldwide and we're also going to push the high-tech technology to the undertone relationship in the US, just said that. Everywhere else HiveStack going to push undertone [everywhere else US.]

因此，我們將透過 HiveStack 關係在全球推廣我們現有的產品，我們也將在美國將高科技技術推向底層關係，剛才說。HiveStack 在其他地方都將低調[美國其他地方。]

Now having said that, when you have a DSP and an SSP, which is basically what HiveStack does we get an agreement with a company like a Retail Media which is a huge media company in Brazil. You can now have the ability to sell Brazilian traffic, resilience screens for anywhere else.

話雖如此，當你擁有 DSP 和 SSP 時（這基本上就是 HiveStack 所做的），我們會與像 Retail Media 這樣的公司達成協議，這是巴西的大型媒體公司。現在您可以向其他任何地方銷售巴西流量、彈性螢幕。

So if there is an American company that wants to promote to bridge to the Brazilian market or Chinese or Japanese advertiser. They now can do that through our exclusive inventory. Now very mine because we have the DSP, SSP, our goal is to cause the increase more inventory worldwide and more advertisers worldwide.

因此，如果有一家美國公司想要推廣以橋接巴西市場或中國或日本廣告商。他們現在可以透過我們的獨家庫存來做到這一點。現在非常我的，因為我們有DSP、SSP，我們的目標是在全球增加更多的庫存和更多的廣告商。

Because what happened is a lot of advertisers in different countries are advertising budgets on other countries, right is what we call inside out. So we're actually getting, you know, as it does for Hong Kong and Korea actually advertise on our Japanese screens.

因為發生的情況是，不同國家的許多廣告商都在其他國家做廣告預算，這就是我們所說的由內而外。所以我們實際上得到了，你知道，就像香港和韓國在我們的日本螢幕上做的廣告一樣。

So that's currently happening. So we want to add more agreements like that. And this is the first stage through those agreements, we want to push more high impact creative that Undertone are so good at. So I hope that answers the question.

目前正在發生這種情況。所以我們想添加更多這樣的協議。這是這些協議的第一階段，我們希望推出 Undertone 擅長的更具影響力的創意。所以我希望這能回答這個問題。

Very helpful. Thank you. One more if I could just curious how you're thinking about capital allocation strategy going forward. You look at the free cash flow generation this year more than paid for HiveStack acquisition. Should we be looking for additional M&A in 2024? And might you consider a share repurchase program or dividend program? Thanks.

很有幫助。謝謝。如果我想知道您如何考慮未來的資本配置策略，請再問一個。你會看到今年產生的自由現金流比收購 HiveStack 所支付的還要多。2024 年我們是否應該尋求更多併購？您是否可以考慮股票回購計劃或股利計劃？謝謝。

So that's great question, so absolutely M&A, absolutely. You know, we want to continue to grow even faster. We want to add more technologies for the video retail space, CTV measurements want to grow faster and grow faster, even with profitability. So that's one thing.

所以這是一個很好的問題，所以絕對是併購，絕對是。您知道，我們希望繼續更快地成長。我們希望為視訊零售領域添加更多技術，CTV 測量希望成長得更快、成長得更快，即使在獲利的情況下也是如此。所以這是一回事。

A buybacks, it's always part of our discussions were actually done a very thorough analysis. And what we've been told by some by our own search is creating long-term value, continue to grow as fast as possible is going to create more value for shareholders in buybacks.

回購始終是我們討論的一部分，實際上進行了非常徹底的分析。有些人透過我們自己的搜尋告訴我們，創造長期價值，繼續盡可能快地成長將為股東在回購中創造更多價值。

Having said that, this is always something that no we're taking on, but frankly, we think pushing the company forward and having a leadership position in the market will gain more market value for investors. We'll have that if we do better than buybacks.

話雖如此，這始終是我們正在承擔的事情，但坦白說，我們認為推動公司前進並在市場中佔據領導地位將為投資者贏得更多市場價值。如果我們做得比回購更好，我們就會實現這一點。

Thank you.

謝謝。

Eric Martinuzzi, Lake Street Capital Markets. Your line is now live.

馬丁努齊 (Eric Martinuzzi)，湖街資本市場。您的線路現已上線。

I wanted to go a layer deeper on the shift in the mix of video versus display. What do you think is behind the video getting lower rates then perhaps historically video achieved?

我想更深入地了解影片與顯示混合的轉變。您認為影片收視率低於歷史影片收視率背後的原因是什麼？

So as you know, always the dynamic in the market, working with the multiple solutions and formats, you can take the CTV on in others, you're charging sometimes more than $30 to stand ups and down with fewer dollars.

如您所知，市場始終充滿活力，採用多種解決方案和格式，您可以在其他市場中採用 CTV，有時您需要花費 30 多美元才能以更少的美元站立起來。

And this is always based on demand and supply and you know what is available and what is now more effective for the advertiser. And I think the beautiful thing with our system and with our technology is our ability to identify the opportunities.

這始終基於需求和供應，您知道什麼是可用的以及什麼現在對廣告商更有效。我認為我們的系統和技術的美妙之處在於我們有能力發現機會。

And based on that to improve our position and to improve margin and you know, do what is good for our results and this is what happened in the last quarter. This is something that started at the beginning as of the third quarter. So this is H2 2023.

在此基礎上，改善我們的地位並提高利潤率，做對我們的業績有利的事情，這就是上個季度發生的事情。這是從第三季初就開始的事。這是 2023 年下半年。

And this is, you know, the trends in our 2024, of course, will be different. We need to keep our eyes open to track and pursue other opportunities. And this is, I think, part of our advantage with the diversification that we have and the different products that we are offering.

而這是，你知道，我們2024年的趨勢當然會有所不同。我們需要睜大眼睛去追蹤和尋求其他機會。我認為，這是我們擁有的多元化和我們提供的不同產品的優勢的一部分。

And again, nothing more than that. Of course, there are a lot of reason behind any preference, but it depends on geographic depend on the customer type depend on what's happening in the market. But again, for us, this is just really going at that opportunity.

再說一遍，僅此而已。當然，任何偏好背後都有很多原因，但這取決於地理位置、取決於客戶類型、取決於市場上發生的情況。但同樣，對我們來說，這只是一個真正的機會。

And I think me (multiple speakers) just add one more thing to that. You know, I think it goes back to the strategy that we have great. We know it's very dynamic advertisers are keep shifting budgets based on the goals they have currently raised, so currently more advertisers. And we saw that in past two quarters for advertisers are pushing towards direct response, direct live, this is why search is going up. This is why it stays going up display versus video.

我想我（多位發言者）只是再補充一件事。你知道，我認為這可以追溯到我們的偉大策略。我們知道，廣告商非常活躍，他們會根據他們目前提出的目標不斷調整預算，因此目前有更多的廣告商。我們看到，在過去兩個季度，廣告商正在推動直接回應、直接直播，這就是為什麼搜尋量上升的原因。這就是為什麼它在顯示方面比視頻方面保持上升的原因。

Other times video is going up instead of that. So this goes back to the strength of our model of diversification. We're not putting all our eggs in one basket for diversify. They want to make sure that our technology meets the consumer where they advertise needs in.

其他時候，影片會上升，而不是上升。所以這又回到了我們多元化模式的優勢。我們不會為了多元化而把所有雞蛋放在一個籃子裡。他們希望確保我們的技術能夠滿足消費者的廣告需求。

We're not doubling down on a specific format. That's not what we do want to make sure advertisers have different strategies through different periods. We're going to meet them and that's our goal.

我們不會在特定格式上加倍努力。這並不是我們想要確保廣告商在不同時期採取不同策略的目的。我們要去見他們，這就是我們的目標。

Since it is been driven by, If I were to ask the question regarding vertical strength or vertical weakness over the past six months, could you address financial services, travel and entertainment, maybe or what trends are you seeing over the past six months as far as?

因為它的驅動因素是，如果我問有關過去六個月的垂直優勢或垂直劣勢的問題，您能否解決金融服務、旅遊和娛樂問題，或者您在過去六個月中看到的趨勢是什麼作為？

So we do see auto, you know, in a pretty good shape insurance loans Q4 was still low, travel was still up and we don't have the numbers for Q1 still. But we're hoping that insurance and logistics is going to start to pick up, but those are those were the trends in Q4.

因此，我們確實看到汽車狀況良好，第四季度的保險貸款仍然很低，旅行仍然在成長，而且我們還沒有第一季的數據。但我們希望保險和物流能夠開始回升，但這就是第四季的趨勢。

Got it. Thanks for taking my questions.

知道了。感謝您回答我的問題。

Thank you.

謝謝。

Thank you.

謝謝。

Mauricio Munoz, Raymond James. Your line is now live.

毛里西奧·穆尼奧斯，雷蒙德·詹姆斯。您的線路現已上線。

Yeah, thank you for taking my question on. Could you please expand on the opportunity in search? What's driving the up above trend strong result this quarter and how sustainable is the opportunity? Thank you.

是的，謝謝你回答我的問題。能否詳細介紹一下搜尋方面的機會？是什麼推動了本季高於趨勢的強勁業績？這個機會的可持續性如何？謝謝。

Great. Listen, as always, we're adding more publishers, which are adding more searches. But the end of the day, it's really a market trend right, where advertising budgets are going to shift are now shifting into direct response in Q4? Again, it goes back to a lot of market movements and our ability to gain more searches.

偉大的。聽著，一如既往，我們增加了更多的發布商，而這些發布商也增加了更多的搜尋。但歸根結底，這確實是一個市場趨勢，廣告預算將在第四季轉變為直接回應？再次，這可以追溯到大量的市場變動以及我們獲得更多搜尋的能力。

Thank you.

謝謝。

Thank you.

謝謝。

We've reached the end of our question and answer session. I'd like to turn the floor back over for any further or closing comments.

我們的問答環節已經結束。我想重新發言以徵求進一步的意見或結束意見。

Thank you, so we're very happy about the Q4 and the full year of 2023 results, we think we saw a tremendous role. We're going to continue to grow. We're going to continue to invest in technology, and we're going to continue to push this company forward years to come.

謝謝，我們對第四季和 2023 年全年的業績感到非常高興，我們認為我們看到了巨大的作用。我們將繼續成長。我們將繼續投資技術，並在未來幾年繼續推動這家公司向前發展。

We know again pushing on growth, push up profitability, gaining more cash that's our strategy. Thank you for joining. Thank you.

我們再次知道，推動成長、提高獲利能力、獲得更多現金是我們的策略。感謝您的加入。謝謝。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您今天的參與。