Perion Network Ltd (PERI) 2024 Q3 法說會逐字稿

Hello everybody and welcome to the Perion Network third quarter, 2024 earnings conference call. Today's conference is being recorded and an archive of the webcast will be posted on the company's website. 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 2024 年第三季財報電話會議。今天的會議正在錄製中，網路廣播的存檔將發佈在公司網站上。詳細介紹財務表現的新聞稿可在本公司網站 www. perion.com。

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 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 the 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、風險因素和其他因素下的因素。公司年度報告中的 20 F 表格可能導致實際結果、績效或成就與前瞻性陳述中預期或暗示的任何未來結果、績效或成就有重大差異。

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 will be referring to adjusted EBITA. 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, hosting the call today are Tal Jacobson. Perion's Chief Executive Officer and Elad Tzubery Perion's Chief Financial Officer. I would now like to turn the call over to Tal Jacobson. Please go ahead.

在提到 EBITDA 時，我們指的是調整後的 EBITA。我們在收益報告中提供了非公認會計準則衡量指標與其可比較公認會計準則衡量指標的詳細調節表，該報告可在我們的網站上獲取，並且也已提交到表格6-K 中，今天的電話會議由塔爾·雅各布森(Tal Jacobson) 主持。Perion 的執行長和 Elad Tzubery Perion 的財務長。我現在想把電話轉給塔爾·雅各布森。請繼續。

Good morning, good afternoon and welcome to Perion's third quarter, 2024 earning school today. I'm pleased to share the results and the highlights of the progress we're making in the digital advertising innovations, technology and profitability are two core essential elements of Perion culture. For over a decade, we've been successfully building advanced cutting edge technologies at the forefront of tech industry.

早上好，下午好，歡迎來到 Perion 今天的 2024 年第三季盈利學校。我很高興與大家分享我們在數位廣告創新、技術和盈利能力方面取得的成果和進展亮點，這是 Perion 文化的兩個核心要素。十多年來，我們一直在科技產業的前沿成功建構先進的尖端技術。

And since 2014, Perion has been delivering positive annual adjusted EBIDA and operating cash flow an accomplishment we're proud of and committed to continue to drive at Perion. We aim to help CMOS the same people who control almost $700 billion of digital advertising budgets. This number is projected to reach almost a trillion dollars within three years. Today CMOS face an almost impossible mission, they are required to provide continuous survive on advertising budgets. They are expected to do this while working in a fragmented ecosystem of channels, data points, screen sizes, audience segmentations and many different media, bike systems.

自 2014 年以來，Perion 一直實現正的年度調整後 EBIDA 和營運現金流，我們對此感到自豪，並致力於在 Perion 繼續推動這一成就。我們的目標是幫助 CMOS 控制著近 7000 億美元數位廣告預算的人。預計這個數字將在三年內達到近兆美元。如今，CMOS 面臨著幾乎不可能的任務，他們需要在廣告預算上提供持續的生存。他們預計將在由管道、數據點、螢幕尺寸、受眾細分和許多不同媒體、自行車系統組成的碎片化生態系統中工作時做到這一點。

All this while respecting the privacy of the consumer and ensuring a minimal budget waste in all our conversations with brands and agencies. We hear the same thing they are all looking for a holistic solution that can run across the army channel universe and provide the best results while reducing waste. This landscape demands advanced efficient data driven solution. That's exactly where Perion stands out with an A I driven technologies.

所有這些都尊重消費者的隱私，並確保在我們與品牌和機構的所有對話中將預算浪費降至最低。我們聽到同樣的事情，他們都在尋找一種整體解決方案，可以跨越軍隊渠道領域並提供最佳結果，同時減少浪費。這種情況需要先進且高效的數據驅動解決方案。這正是 Perion 憑藉人工智慧驅動技術脫穎而出的地方。

Perion is taken a unique approach to what people used to call the linear consumer journey. We understand that human behavior has changed so much in the past few years and each person interacts differently with technology throughout the day, various technology is deeply rooted in each channel to ensure we can deliver marketing messages at the right time to the right consumer. We connect the dots.

Perion 採用了一種獨特的方法來實現人們過去所說的線性消費者旅程。我們知道，在過去的幾年裡，人類的行為發生了很大的變化，每個人在一天中與科技的互動方式都不同，各種技術深深植根於每個管道，以確保我們能夠在正確的時間向正確的消費者傳遞行銷訊息。我們把這些點連結起來。

We do this across the digital advertising space between data, creative and media to ensure that brands achieve better returns in meaningful outcomes.

我們在數據、創意和媒體之間的數位廣告空間中這樣做，以確保品牌在有意義的成果中獲得更好的回報。

Our advanced technologies keep us ahead of the curve. Anticipating shifts in digital advertising as CTV, retail media, digital out of home and audio ads lead today's industry trends. We continuously introducing new innovative technological solutions. Our solutions position per at the forefront of those high growth areas.

我們的先進技術使我們處於領先地位。隨著 CTV、零售媒體、數位戶外廣告和音訊廣告引領當今的行業趨勢，預計數位廣告將會發生變化。我們不斷推出新的創新技術解決方案。我們的解決方案處於這些高成長領域的前沿。

Less than a year ago, we launched our advanced generative AI solution for audio ads forecasting the movements in the digital advertising industry.

不到一年前，我們推出了先進的音訊廣告產生人工智慧解決方案，預測數位廣告產業的動向。

Indeed, we are now seeing the largest industry players investing in audio with a new deal between the trade desk and Spotify coming to life. As Jeff Green commented, digital audio might be the most on sell corner of the internet.

事實上，我們現在看到最大的行業參與者正在投資音訊領域，交易台和 Spotify 之間的新協議即將生效。正如傑夫·格林評論的那樣，數位音訊可能是網路上最暢銷的角落。

The time spent to add spend ratio is the highest disparity of any channel. We will continue to look at the changes and build advanced technologies for it to capture the revenues and stay ahead of the curve. Our advanced technologies are built to solve the advertiser's toughest challenges, leveraging A I to optimize campaigns and better efficiencies and reach in our AI lab we continue to produce amazing products. You're all familiar with sort and wave sort is our advanced A I audience segmentation technology for CTV and web designed perfectly for cookie less environments.

增加支出比率所花費的時間是所有管道中差距最大的。我們將繼續專注於變化並為其建立先進技術，以獲取收入並保持領先地位。我們的先進技術旨在解決廣告主最嚴峻的挑戰，利用人工智慧來優化廣告活動並提高效率，並在我們的人工智慧實驗室中繼續生產令人驚嘆的產品。你們都熟悉排序，波浪排序是我們先進的 AI 受眾細分技術，適用於 CTV 和 Web，專為無 cookie 環境而完美設計。

And wave is our advanced generative audio ad solution. Belos Creative Studio is our AI driven DC O dynamic content optimization that builds and delivers the most effective creative in real time across multiple channels. And our recently launched product, a unique advertising experience powered by chat AI capabilities connects brands with their consumers through AI conversations and boost engagements by enabling in add interactions tailored to each person. Everything we do is focus on one thing, providing great results for our brands.

Wave 是我們先進的生成音訊廣告解決方案。Belos Creative Studio 是我們的人工智慧驅動的 DC O 動態內容最佳化，可跨多個管道即時建置和交付最有效的創意。我們最近推出的產品是由聊天人工智慧功能提供支援的獨特廣告體驗，透過人工智慧對話將品牌與其消費者聯繫起來，並透過為每個人量身定制的附加互動來提高參與度。我們所做的一切都是專注於一件事，為我們的品牌提供出色的成果。

Great results come when combining advanced technology and premium inventory. This is why when it comes to inventory Perion works with the best.

將先進技術與優質庫存相結合會產生巨大的成果。這就是為什麼在庫存方面 Perion 與最好的合作。

In the past year, we've made many advancements connecting our technology to the leading platforms within our ecosystem. This is our way to ensure that our clients get the best of all worlds when working with us, having advanced technology with a high level of flexibility that meets our client needs is our first priority.

在過去的一年裡，我們在將我們的技術與生態系統中的領先平台連接起來方面取得了許多進展。這是我們確保客戶在與我們合作時獲得最好的結果的方式，擁有滿足客戶需求的先進技術和高度靈活性是我們的首要任務。

It is our unparalleled capabilities that make Perion a trusted partner. We work with some of the industry's most recognized brands and agencies setting new standards and creating impactful results.

正是我們無與倫比的能力使 Perion 成為值得信賴的合作夥伴。我們與一些業內最知名的品牌和機構合作，制定新標準並創造有影響力的成果。

I'm pleased to report that our growth engines continue to perform strongly digital out of home retail media and CTV delivered strong growth of 63% 62% and 19% year over year respectively.

我很高興地向大家報告，我們的成長引擎持續表現強勁，數位戶外零售媒體和 CTV 同比分別實現了 63%、62% 和 19% 的強勁成長。

As we look into the future, I invite you to be part of what's next. Here's what set us apart as an investment opportunity. Innovation is in our DNA. We're constantly pushing boundaries. Staying ahead of the industry trend. We have a decade long track record of generating positive adjusted dividend in operating cash flow.

當我們展望未來時，我邀請您參與未來的發展。這就是我們作為投資機會的獨特之處。創新是我們的基因。我們不斷突破界限。保持行業趨勢的領先地位。我們在營運現金流中產生正調整股利方面擁有長達十年的記錄。

Our commitment to high growth areas such as digital at home retail media and C TV positions us at the forefront of the market. Our leadership team brings deep industry expertise and visionary approach to every decision and with our global footprint, we can serve clients and partners in high growth markets, positioning us to accelerate growth.

我們致力於數位家庭零售媒體和 C TV 等高成長領域，這使我們處於市場的前沿。我們的領導團隊為每個決策帶來深厚的行業專業知識和富有遠見的方法，憑藉我們的全球足跡，我們可以為高成長市場的客戶和合作夥伴提供服務，使我們能夠加速成長。

Now I'll turn it over to our CFO Elad Tzubery who will discuss our quarterly financial results.

現在我將把它交給我們的財務長 Elad Tzubery，他將討論我們的季度財務表現。

Thank you, Tal, good afternoon and good morning to those of you joining us from the US. After completing my first quarter experience, Chief Financial Officer, I'm glad to share that our third quarter results were in line with our expectations in the third quarter. We continue to experience strong contribution from our growth engines, retail media CTV, and digital out of home.

謝謝你，塔爾，下午好，早安，來自美國的各位。在完成我的第一季經驗後，財務官，我很高興與大家分享，我們第三季的業績符合我們對第三季的預期。我們的成長引擎、零售媒體 CTV 和戶外數位媒體持續為我們帶來強勁貢獻。

As we previously disclosed, we continue to see a decline during the quarter in our search business in open web video and in standard display performance within search, we experience the full impact of the actions taken by Microsoft Bing earlier this year and are now generating what we believe is a normalized revenue run rate for the fourth quarter of 2024.

正如我們之前所披露的，本季度我們的開放網路視訊搜尋業務和搜尋內的標準顯示效能繼續下降，我們體驗到了 Microsoft Bing 今年早些時候採取的行動的全面影響，現在正在產生我們認為這是2024年第四季的正常收入運作率。

In the third quarter, we were profitable repurchase additional shares and continue to maintain a strong net cash position. Our favorable financial position will allow us to continue investing in technology organic growth and executing our M&A strategy for the third quarter that ended on September 30th, 2024, revenue was $102.2 million a 45% year over year decrease. This was primarily due to a 76% decrease in search revenue and the continuous weakness in our open web video and standard formats.

第三季度，我們透過回購額外股票來實現獲利，並持續保持強勁的淨現金狀況。我們有利的財務狀況將使我們能夠繼續投資於技術有機成長並執行截至 2024 年 9 月 30 日的第三季的併購策略，營收為 1.022 億美元，年減 45%。這主要是由於搜尋收入下降 76% 以及我們的開放網路影片和標準格式持續疲軟。

These results were partially offset by an increase in revenue attributable to our growth engines adjusted EBITDA was $7.4 million representing an 83% year over year decrease and resulting in a 7% adjusted EBITDA margin and 16% ex stock margin. GAAP net income was $2.1 million while NON-GAAP net income was $11.9 million as of September 30th, 2024, net cash including cash equivalents short term deposits and marketable securities was $383.9 million. During the third quarter, we continued our buyback plan and repurchased 1.6 million shares for a total of $13.5 million revenue from advertising Solutions was $81.3 million. Down 18% year over year. Yet up 9% sequentially representing 80% of total revenue.

這些業績被我們的成長引擎帶來的營收成長部分抵銷。截至 2024 年 9 月 30 日，公認會計準則淨利為 210 萬美元，非公認會計準則淨利為 1,190 萬美元，包括現金等價物短期存款及有價證券在內的淨現金為 3.839 億美元。第三季度，我們繼續實施回購計劃，回購了 160 萬股股票，廣告解決方案的總收入為 1,350 萬美元，收入為 8,130 萬美元。年減18%。但仍較上一季成長 9%，佔總營收的 80%。

The year over year decrease was a result of continuous and anticipated decline in open web video and in standard display revenue, these declines were partially offset by a significant year over year increase of our growth engines including digital out of home, retail media and CTV.

年比下降是由於開放網路影片和標準顯示收入的持續和預期下降造成的，這些下降被我們的成長引擎（包括數位戶外、零售媒體和 CTV）同比大幅成長所部分抵消。

Our digital out of home business grew by 63% year over year on a performer basis to $19.1 million representing 23% of our advertising solutions revenue compared with 11% in the same period last year. On a performer basis, our CTV business grew by 90% year over year to $9.5 million representing 12% of our advertising solutions revenue compared with 8% last year boosted by our digital out of home and C TV Solutions. Our retail media business which is a hyper growth market vertical delivered another strong quarter, retail media increased 62% year over year to $21 million representing 26% of our advertising solutions revenue compared with 13% in the same period last year, search advertising was $20.9 million for the third quarter. Down 76% year over year, representing 20% of our total revenue.

我們的數位戶外業務按表演者計算年增 63%，達到 1,910 萬美元，占我們廣告解決方案收入的 23%，而去年同期為 11%。以表演者計算，我們的CTV 業務年增90%，達到950 萬美元，占我們廣告解決方案收入的12%，而去年在我們的數位戶外和C TV 解決方案的推動下，這一比例為8 %。我們的零售媒體業務是一個快速成長的垂直市場，第二季表現強勁，零售媒體年增62%，達到2,100 萬美元，占我們廣告解決方案營收的26%，去年同期為13%，搜尋廣告為20.9 美元第三季為 100 萬元。年減 76%，占我們總收入的 20%。

As mentioned, this decrease was a result of the changes implemented by Microsoft Bing. Earlier this year, our contract with Microsoft Bing which both currently and going forward represents less than 5% of our overall revenue run rate will not be renewed. At its conclusion at the end of 2024. As per the terms of the contract, there is a tail period that is expected to generate revenue also in 2025. Contribution excluding tax margin was 47% compared with 42% in the third quarter last year, which is primarily due to changes in the product mix. Following the reduction in the search business adjusted, EBITDA was $7.4 million.07 percent of revenue and 16% of contribution ex stock compared with 23% and 55% respectively. In the third quarter of 2023.

如前所述，這一下降是 Microsoft Bing 實施的變更的結果。今年早些時候，我們與 Microsoft Bing 的合約目前和未來僅占我們總收入運行率的不到 5%，將不會續約。於 2024 年底結束。根據合約條款，有一個尾期，預計在 2025 年也能產生收入。不含稅利潤率貢獻率為47%，而去年第三季為42%，主要是由於產品結構的變化。調整後的搜尋業務減少後，EBITDA 為 740 萬美元。2023年第三季。

The cost reduction and efficiency measures that we implemented last quarter allowed us to moderate the year over year decrease in EBITDA on a GAAP basis. Third quarter, net profit was $2.1 million or 0.4 per diluted share compared with a net income of $32.8 million or 65¢ per diluted share in the third quarter of 2023 on a non-GAAP basis, net income decreased by 72% to $11.9 million or 0.23 per diluted share. Compared with $42.4 million or 0.84 per diluted share. Last year. In the third quarter, our cash flow from operating activities generated $16.2 million compared with $40.1 million in the same period. Last year, Peron has a decade long track record of generating a positive cash flow from operation and we expect to continue in this direction in 2024 and going forward.

我們上季實施的成本削減和效率措施使我們能夠減緩以 GAAP 計算的 EBITDA 年減幅度。第三季淨利為210 萬美元，即稀釋後每股收益0.4 美元，而以非公認會計準則計算，2023 年第三季淨利為3,280 萬美元，即稀釋後每股收益65 美分，淨利潤下降72%，至1,190 萬美元稀釋後每股 0.23 美元。相比之下，稀釋後每股收益為 4,240 萬美元，即 0.84 美元。去年。第三季度，我們的營運活動現金流量為 1,620 萬美元，而同期為 4,010 萬美元。去年，Peron 擁有長達十年的從營運中產生正現金流的記錄，我們預計 2024 年及未來將繼續朝這個方向發展。

As of , 2024, net cash including cash equivalents, short term deposits and marketable securities was $383.9 million down from $407.1 million. At the end of the second quarter of 2024 the quarter over quarter decline in cash was primarily the result of an annual settlement of approximately $24 million related to previous acquisitions going forward. We do not expect contingent consideration payments related to past acquisitions other than those of hives.

截至 2024 年，包括現金等價物、短期存款和有價證券在內的淨現金為 3.839 億美元，低於 4.071 億美元。截至 2024 年第二季末，現金環比下降主要是由於與先前的收購相關的年度和解金額約為 2,400 萬美元。我們預計除蜂巢收購之外，不會支付與過去收購相關的或有對價。

In addition, during this quarter, we repurchased 1.6 million shares for a total of $13.5 million as of the end of the third quarter, where we purchased a total of 3.6 million shares, bringing the total spend against our share buyback program to $33.5 million based on our third quarter results and our expectation for the fourth quarter, we are reiterating the full year 2024 guidance that we provided on our second quarter earnings conference call.

此外，在本季度，我們回購了160 萬股股票，截至第三季末，我們總共回購了360 萬股股票，總價值為1,350 萬美元，使我們的股票回購計畫總支出達到3,350 萬美元。

This concludes my financial overview. I will now pass it back to the operator for the Q&A Thank you.

我的財務概覽到此結束。我現在將其傳回接線員進行問答，謝謝。

Thank you. If you wish to ask a question, we ask that you please use the raise hand function at the bottom of your zoom screen or if you have dialed in, please press star nine. Our first question comes from Andrew Marrick at Raymond James. Please unmute your line and ask your question.

謝謝。如果您想提問，請使用縮放螢幕底部的舉手功能，或者如果您已撥入，請按星九。我們的第一個問題來自雷蒙德詹姆斯公司的安德魯馬里克。請取消線路靜音並提出問題。

Hi, thanks for taking my question. Maybe first one on digital out of home seeing good growth there in the format. But I guess could you just talk about the progress in making digital out of home just more programmatic industry wide since it's still kind of lag some of its other formats?

您好，感謝您提出我的問題。也許是戶外數位領域的第一個，看到這種格式的良好成長。但我想您能否談談在整個行業範圍內使戶外數位化更加程序化方面取得的進展，因為它仍然落後於其他一些格式？

Yeah, absolutely. Thank. Thanks for the question.

是的，絕對是。感謝。謝謝你的提問。

So as you've seen, the growth is pretty amazing, but you know, digital out of home continues to grow programmatic out of that grows even faster.

正如您所看到的，成長速度相當驚人，但您知道，戶外數位化繼續成長，而程式化成長甚至更快。

But when we're looking at digital out of home, when we, when we bought Hivestack, we actually combined that within our retail solution. So, you know, we're powering retailers to also use that to use that as part of our omni channel solution to drive more people into physical stores. So the synergetic solution out of that provides even more growth than just the out of home part.

但是，當我們考慮戶外數位化時，當我們購買 Hivestack 時，我們實際上將其合併到我們的零售解決方案中。所以，你知道，我們正在支持零售商也使用它作為我們全通路解決方案的一部分，以吸引更多人進入實體店。因此，協同解決方案比戶外部分提供了更多的成長。

I hope that answer your question.

我希望能回答你的問題。

Yeah, Thank you. Helpful there. And then maybe one quick one if I could on CTV. So, I guess can we just talk about some of the dynamics that are happening there maybe industry wide and how they're affecting you? Because saw the growth of 19% but that's a pretty significant decel from 42% last and the absolute dollar amount was down year over year or down Q over Q, excuse me. Just wondering if there's anything to read into that, maybe in terms of like CPMS coming down across the spaces industry proliferates. How does pricing kind of impact your CTV business? Thank you.

是的，謝謝。那裡有幫助。如果可以的話，也許可以在 CTV 上快速播放一次。那麼，我想我們可以談談全行業正在發生的一些動態以及它們如何影響您嗎？因為增長了 19%，但與去年的 42% 相比有相當大的下降，而且絕對美元金額同比下降，或者環比下降，請原諒。只是想知道是否有什麼值得解讀的，也許是像 CPMS 一樣在太空產業中蓬勃發展。定價對您的 CTV 業務有何影響？謝謝。

Thank you. Yeah, absolutely. So, so CPMS are a bit down but since we're not, you know, when CPMS are down, we're basically buying more inventory. The main reason that the growth was a bit lower than last quarter is because of where the main parts of our CTV is live CTV. So, less sports events during the summer and September actually started to pick up again. But live events on CTV is the main drivers and July August is just a week of part of the year.

謝謝。是的，絕對是。所以，CPMS 有點下降，但因為我們沒有，你知道，當 CPMS 下降時，我們基本上會購買更多庫存。成長比上季略低的主要原因是我們的 CTV 的主要部分是直播 CTV。因此，夏季和九月的體育賽事數量實際上又開始回升。但 CTV 的現場活動是主要推動力，而 7 月 8 月只是一年中的一周。

Our next question comes from Jason Helfstein at Oppenheimer, please unmute your line and ask your question.

我們的下一個問題來自 Oppenheimer 的 Jason Helfstein，請取消線路靜音並提問。

Hey, good, I guess. Good. Afternoon guys. Two questions one. When do you think advertising revenue returns back to positive growth? Presumably sometime next year, but if you just kind of maybe level set base case versus ball case and then question number two, where do you see long term even without margins? XT and, and how do you get there? Is it a function of you know, doing things, you know, how much of its revenue versus work you need to do on the cost side? Thank you.

嘿，很好，我想。好的。下午好各位。兩個問題一.您認為廣告收入何時恢復正成長？大概是明年的某個時候，但如果你只是將基本情況與實際情況進行比較，然後問第二個問題，即使沒有利潤，你對長期前景有何看法？XT 以及如何到達那裡？它是一個函數，你知道，做事情，你知道，它的收入與你需要在成本方面做的工作有多少？謝謝。

So, Hi Jason. Thank you for the question.

那麼，嗨傑森。謝謝你的提問。

So, for the first question regarding our advertising solutions, we believe that on on next year in Q1, we started to see the year started to get which with like increase year over year. And in Q2, we started to see it expedited a little bit more in Q3, we'll see the real growth year over year. We're going to see the entire impact all of the changes that we've made that we've made this year in terms of the EBITDA profitability from from Xoc. So, next I believe that next year we will end up slightly higher than where we are. We are today, we are constantly working about efficiency in the organization and improving our IBI a margin margins and to be able to scale up using our current head count and you know, current level of expenses.

因此，對於我們廣告解決方案的第一個問題，我們相信，從明年第一季開始，我們開始看到這一年開始逐年成長。在第二季度，我們開始看到第三季度的速度加快了一些，我們將看到同比的真正成長。我們將看到今年我們所做的所有改變對 Xoc 的 EBITDA 獲利能力的整體影響。因此，接下來我相信明年我們的成績將略高於目前的水平。今天，我們不斷致力於提高組織效率，提高 IBI 利潤率，並能夠利用我們目前的員工數量和目前的費用水平來擴大規模。

Expenses.

開支。

But can I follow up on that second question? And I mean, do you have to change at all? Like the, I guess pricing billing model, you know, for advertisers to kind of get to the, the margins that you have to get to?

但我可以跟進第二個問題嗎？我的意思是，你必須改變嗎？就像我想的定價計費模式一樣，你知道，廣告商要想獲得必須獲得的利潤？

No, we don't need to change our, our, our pricing model. Now we're, we're scaling with, with some major advertisers and that's where we're going to see the, when we're going to see the growth while you know, maintaining the growth with the current head count.

不，我們不需要改變我們的定價模式。現在，我們正在與一些主要廣告商擴大規模，這就是我們將看到的地方，當我們看到成長時，你知道，以當前的人數維持成長。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from Eric Martinuzzi at Lake Street. Please unmute your line and ask your question.

我們的下一個問題來自 Lake Street 的 Eric Martinuzzi。請取消線路靜音並提出問題。

Yeah, I wanted to focus on the Microsoft contract just to clarify. You said that there will not be a renewal of that contract but that there will be Microsoft related revenue in 2025.

是的，我想重點關注微軟合約只是為了澄清一下。您說過不會續簽該合同，但 2025 年將會有微軟相關收入。

Yes.

是的。

What, what was the question? I was just wondering.

什麼，問了什麼？我只是想知道。

If you, you know, you, you size the Microsoft revenue in the back half of 24 as 5%. What would you characterize? You know, how long do we have this tail in 2025? Is it done by Q1? What percent of revenue is Microsoft in Q1 Q2.

如果你，你知道，你，你將微軟 24 年後半段的收入定為 5%。你會形容什麼？你知道，到2025年我們這條尾巴還有多久？Q1 完成了嗎？微軟在第一季第二季的營收中所佔的百分比是多少？

Right? So the, the agreement with Microsoft can has a clause of tail. What what that means is the users, the end users that are using the product with the Microsoft engine through us can continue to use that to with us till the end of 2025. Now, software users tend to churn, they don't keep that product always. So although we have a tll clause within the agreement, we, and we expect to generate revenue in 2025 we do not and still we do not have that forecast till the end of 2025 but it's going to be part of our revenue in 2025 as we see it now.

正確的？所以，與微軟的協議可以有一個尾部條款。這意味著透過我們使用具有 Microsoft 引擎的產品的使用者、最終用戶可以繼續與我們一起使用該產品，直到 2025 年底。現在，軟體使用者往往會流失，他們不會總是保留該產品。因此，儘管我們在協議中有一個 TLL 條款，但我們預計會在 2025 年產生收入，但我們並沒有，而且直到 2025 年底我們仍然沒有這個預測，但這將成為我們 2025 年收入的一部分，因為我們現在就看吧。

Okay. So, the m is kind of a less than 2% for the full year on revenue percent of revenue.

好的。因此，全年收入佔收入的比例 m 略低於 2%。

Yeah, we'll try to be more accurate next quarter when we're going to provide a bit of visibility between next year.

是的，我們將在下個季度嘗試更加準確，屆時我們將在明年之間提供一些可見性。

But I think that's, that's a kind of a reasonable assumption, but we, we'll need to do a deeper analysis.

但我認為這是一個合理的假設，但我們需要更深入的分析。

Got it. Thanks for taking my question. Thank you.

知道了。感謝您提出我的問題。謝謝。

Our next question comes from Laura Martin at Needham, please unmute your line and ask your question.

我們的下一個問題來自 Needham 的 Laura Martin，請取消線路靜音並提問。

Hey, so let's start with Hivestack. You closed it in the fourth quarter of 23. And the idea of the industrial logic was that undertone had excellent relationships with that agencies in the US. And Hivestack had excellent relationships with that agencies offshore and there was synergy there because you could sort of synergy of introducing products across the globe that way could you update us on whether that industrial logic is playing out, please?

嘿，讓我們從 Hivestack 開始。你在 23 年第四季關閉了它。工業邏輯的想法是，undertone 與美國的這些機構有著良好的關係。Hivestack 與海外機構有著良好的關係，並且存在協同效應，因為您可以在全球範圍內引入產品，這樣您可以向我們介紹這種工業邏輯是否正在發揮作用的最新情況嗎？

Yeah. So on, on the product side. We've implemented the DCO which is a an and to product, which is the dynamic content optimization technology. We've implemented that into the hive stack platform enabling high stack advertisers to enjoy 40% more inventory than they used to. What that means is in out of home. You have so many different sizes and of screens and resolutions that advertisers don't really bother to create creatives for all those sizes. With that new technology, they can now tap into all the inventory which provides greater growth into our hive stack platform. So it does, it does work and it provides a bigger portion of retail advertisers into Paion.

是的。如此，在產品方面。我們已經實現了DCO，這是一個產品，即動態內容優化技術。我們已將其實施到 Hive Stack 平台中，使高堆疊廣告商能夠享受比以前多 40% 的庫存。這意味著在外面。您有如此多不同的尺寸、螢幕和分辨率，以至於廣告商並不真正費心為所有這些尺寸創建廣告素材。借助這項新技術，他們現在可以利用所有庫存，從而為我們的 Hive 堆疊平台提供更大的成長。確實如此，它確實有效，並為 Paion 提供了更多的零售廣告商。

So even though we just, we've, we've started less than a year ago, we're seeing good synergies between the two sides.

因此，儘管我們剛開始不到一年，但我們看到了雙方之間良好的協同效應。

Okay, helpful. And then my other question is, you know, when you stepped into the CEO role here to, we had Microsoft at 20-50% of revenue and now it's going to be less than 5%. My question is sitting here today, you know, should we have, should you have known that this was coming as the head of the Microsoft relationship or was just everybody blindsided by a strategic pivot that Microsoft made. Looking.Back?

好的，有幫助。然後我的另一個問題是，你知道，當你擔任執行長時，微軟佔收入的 20-50%，現在將低於 5%。我今天坐在這裡的問題是，你知道，我們是否應該這樣做，你是否應該知道這是作為微軟關係的負責人而來的，還是只是每個人都被微軟做出的戰略支點弄得措手不及。回頭看？

Yeah. Well, let me, let me just say if I knew to be H1st, I wouldn't take in this role. I didn't want this under my name.

是的。好吧，讓我說一下，如果我知道自己是 H1st，我就不會擔任這個角色。我不想把這個放在我的名下。

But, unfortunately it happened and it happened, interestingly wide for Microsoft, it's a decision they took across the board to, to their other partner, Duss Perion.

但是，不幸的是，它發生了，而且發生了，對於微軟來說​​，有趣的是，這是他們向另一個合作夥伴 Duss Perion 做出的全面決定。

And we were all surprised by this change again, if, if I only knew, but unfortunately, I didn't, I took this role and I, it's my responsibility now to rebuild, you know, the entire thing without the Microsoft agreement.

我們再次對這一變化感到驚訝，如果，如果我只知道，但不幸的是，我不知道，我接受了這個角色，我現在有責任在沒有微軟協議的情況下重建整個事情。

Just following up on that. We're having weakness in, let me call it the old line business, which is the video business and the display business. Do you think the weakness in the core businesses? The ones that are more than a year old is actually related to the same reason that Microsoft left? Is it a quality issue, I guess is my question of perion inventory. Are they unrelated?

只是跟進此事。我們的弱點是，讓我稱之為舊業務，即視訊業務和顯示業務。您認為核心業務的弱點在哪裡？那些一年多的事件，居然和微軟離開的原因有關？是品質問題嗎，我猜是我的perion庫存問題。他們沒有關係嗎？

No, no, absolutely not. It's absolutely not.

不，不，絕對不是。絕對不是。

Microsoft search had nothing to do with the display advertising business. It's not connected in any way.

微軟搜尋與展示廣告業務無關。它沒有以任何方式連接。

Now, some of our parts in the past, you know that we used to have publisher solution and other parts that the industry moved away from is some of the decline that you're seeing now in the advertising part.

現在，我們過去的一些部分，你知道我們曾經有出版商解決方案，而行業放棄的其他部分是你現在在廣告部分看到的一些下降。

But our inventory is, as you probably saw in our presentation, we're now we're connected to the premium of the premium inventory of the industry. We are not compromising any any of our inventory we're just working with very high quality inventory, but those two parts are unrelated. And there's an article I think a few months ago that Microsoft are generating a lot of money through what people call MFA sites and Google as well. So technology companies and advertising. Companies are working with all type of, of websites, but those two parts were never connected.

但我們的庫存，正如您可能在我們的演示中看到的那樣，我們現在已經與行業優質庫存的溢價聯繫在一起。我們不會損害任何庫存，我們只是使用非常高品質的庫存，但這兩個部分是不相關的。我認為幾個月前有一篇文章說微軟透過人們所說的 MFA 網站和谷歌賺了很多錢。科技公司和廣告也是如此。公司正在與各種類型的網站合作，但這兩個部分從未連接起來。

Super helpful. Thank you very much.

超有幫助。非常感謝。

Absolutely. Thank you.

絕對地。謝謝。

Our next question comes from Jeff Martin at Roth. Please unmute your line and ask your question.

我們的下一個問題來自羅斯的傑夫馬丁。請取消線路靜音並提出問題。

Thanks. Good afternoon guys. Wanted to ask, you know, specific and more specifically, what are the trends within, you know, the traditional display and video advertising that are impacting you most you know, most severely here. And do you see that bottoming out and is there growth potential down the road?

謝謝。各位下午好。我想問，具體的，更具體的，傳統展示廣告和影片廣告的趨勢是什麼，對您影響最深，最嚴重。您認為這種情況是否已經觸底？

Yeah. So the the main trends we're seeing is, you know, open I would call it open web inventory is be it became became less and less attractive. You can see that weakness also in the Google reports that youtube and search are growing while ad sales, which is the open web is not doing as as good.

是的。所以我們看到的主要趨勢是，你知道，開放，我稱之為開放網路庫存，它變得越來越沒有吸引力。您還可以在Google報告中看到這一弱點，即 YouTube 和搜尋正在成長，而廣告銷售（即開放網路）卻表現不佳。

And I think that's why we're concentrating mainly on one the premium inventory and second on the omni channel experience. So we can continue to shift between higher margins and more attractive channels.

我認為這就是為什麼我們主要專注於優質庫存，其次是專注於全通路體驗。因此，我們可以繼續在更高的利潤和更具吸引力的管道之間進行轉變。

But that's why you, you're also seeing, you know, part of our display advertising unit division declining in the past year, we expect next year to be a lot better on that. On that part, we're investing a lot in other channels and we, we're now pushing some of our advertisers into youtube and C TV, youtube, both on C TV and web. And those are the growth growing engines that we're looking forward to, you know, to grow.

但這就是為什麼你，你也看到，你知道，我們的展示廣告部門的一部分在過去一年中有所下降，我們預計明年會更好。在這方面，我們在其他管道上投入了大量資金，我們現在正在將一些廣告商推向 YouTube 和 C TV，YouTube 在 C TV 和網路上都有。這些都是我們期待成長的成長引擎。

Great. And then my second question is regarding the search business. The my understanding is that the majority of the, the residual in search is, is with a partner. Yahoo, I just want to throw it out there. Question could the same situation that happened with Microsoft being happen with Yahoo? Thank you.

偉大的。我的第二個問題是關於搜尋業務的。我的理解是，搜尋中的剩餘部分大部分是與合作夥伴一起。雅虎，我只是想把它扔在那裡。問題是，與微軟發生的同樣的情況會發生在雅虎身上嗎？謝謝。

Right. So we do not see any signals that that might be the case.

正確的。因此，我們沒有看到任何可能出現這種情況的訊號。

But again, you know, the search, the search part of, of Perion, I think we've said that in the past is not a strategic part as long as we can, you know, get revenue. And even out of that, we will be more than happy to do this for as many years as possible. But that's not the strategy, that's not the path we're going to. That's not even part of the, the investments we're doing. We're not investing in that part. We're just, you know, we're, we're working on that part to continue to generate revenue in Ebida.

但是，你知道，搜索，Perion 的搜索部分，我想我們已經說過，在過去，只要我們能夠獲得收入，它就不是戰略部分。即便如此，我們也將非常樂意盡可能地做到這一點。但這不是我們的策略，也不是我們要走的路。這甚至不是我們正在進行的投資的一部分。我們不會投資那部分。我們只是，你知道，我們正在致力於這一部分，以繼續在埃比達創造收入。

But the, the main growth engines, I think that's what's going to take us to new places and to higher, higher growth.

但是，我認為主要的成長引擎將帶我們到新的地方並實現更高、更高的成長。

Our last question comes from Mark Keely at Steil. Please unmute your line and ask your question.

我們的最後一個問題來自 Steil 的 Mark Keely。請取消線路靜音並提出問題。

Great. Thanks very much. Good morning. I wanted to ask you about two different things. One is, you know, you brought up the trade desk in your prepared remarks when it comes to audio, I guess, is that how you're accessing audio inventory from A DS P perspective. And then second unrelated question, you know, to you talked about kind of rebuilding the company after this, you know, that the search business, you know, is essentially, you know, close to going away, I guess, can you expand on the M&A strategy and some of the thoughts that you have today? And maybe, you know, if those differ from what we've heard from you in the past. Thank you.

偉大的。非常感謝。早安.我想問你兩件不同的事情。一是，您知道，當談到音訊時，您在準備好的評論中提到了交易台，我想這就是您從 DSP 角度存取音訊庫存的方式。然後第二個不相關的問題，你知道，你談到了在此之後重建公司，你知道，搜索業務本質上，你知道，接近消失，我想，你能擴展一下嗎您今天的併購策略和一些想法？也許，你知道，如果這些與我們過去從你那裡聽到的不同。謝謝。

Yeah.

是的。

Thank you for the questions. So we're now connected on the audio part. We are connected to Spotify directly and iHeart and others.

謝謝你的提問。現在我們已經連接到音訊部分了。我們直接連接到 Spotify 和 iHeart 等。

If, if an advertiser wants to buy our audio through the trade desk, they are more than willing to do so with our technology or through any other DS P. So that's, that's on the audio part. And I think the fact that the trade desk are, did this deal with Spotify is amazing. I think audio has been unrecognized as a growth engine for so many years, but it's still a lot of people are using it and we're going to see a great growth on audio in the future. It's still not there. But I think it's a good part to invest in s for the M&A in the future of the company. I think the company is going away any in the future. I think we need to rebuild our, you know, everything we do. We still have a lot of money. We're generating good ebida, we're generating revenues. We have a lot of technology. We have a lot of of clients and partnerships. It's an amazing company. I think it has an amazing future. And now in terms of M&A we're at the same place we're looking for to buy more growth engines. The criteria is ebita positive synergetic drives through technology and, and that's basically what what we're looking for that makes that answer your question.

如果廣告商想透過交易台購買我們的音頻，他們非常願意使用我們的技術或透過任何其他 DSP 來購買。我認為貿易部門與 Spotify 達成的這筆交易令人驚訝。我認為音訊多年來一直沒有被認為是成長引擎，但仍然有很多人在使用它，未來我們將看到音訊的巨大增長。它仍然不在那裡。但我認為投資s對於公司未來的併購是一個很好的部分。我認為該公司將來會消失。我認為我們需要重建我們所做的一切。我們還有很多錢。我們正在產生良好的EBDA，我們正在創造收入。我們有很多技術。我們有很多客戶和合作夥伴。這是一家了不起的公司。我認為它有一個驚人的未來。現在就併購而言，我們正處於同樣的境地，我們正在尋求購買更多的成長引擎。標準是透過科技實現息稅前利潤積極的協同驅動，而這基本上就是我們所尋找的，可以回答您的問題。

Yes. Thank you very much.

是的。非常感謝。

This concludes today's call. I will now hand back to management for closing remarks.

今天的電話會議到此結束。我現在將交回管理層作結束語。

Thank you everyone for joining us for the at the Q3. And we look forward to having you joining us again next quarter. Thank you.

感謝大家參加第三季的會議。我們期待您下個季度再次加入我們。謝謝。