Perion Network Ltd (PERI) 2024 Q4 法說會逐字稿

Hello, everybody, and welcome to the Perion Network fourth quarter and full-year 2024 earnings conference call. Today's conference is being recorded, and an archive of the webcast will be posted on the company 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 年第四季和全年財報電話會議。今天的會議正在錄製，網路直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，我想先讀以下安全港聲明。今天的討論包括前瞻性陳述。這些聲明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「風險因素」標題下和公司 20-F 表年度報告中其他部分所討論的因素，這些因素可能會導致實際結果、業績或成就產生重大差異，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 a non-GAAP basis. While mentioning EBITDA, we will be referring to adjusted EBITDA.

本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 GAAP 和非 GAAP 進行分析。在提到 EBITDA 時，我們將指的是調整後的 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. Hosting the call today are Tal Jacobson, Perion's Chief Executive Officer; and Elad Tzubery, Perion's Chief Financial Officer.

我們在收益報告中提供了非 GAAP 指標與可比較 GAAP 指標的詳細對帳表，您可以在我們的網站上查閱，並且已在 6-K 表中提交。今天主持電話會議的是 Perion 執行長 Tal Jacobson；以及 Perion 財務長 Elad Tzubery。

I would now like to turn the call over to Tal Jacobson. Please go ahead.

現在我想將電話轉給塔爾·雅各布森 (Tal Jacobson)。請繼續。

Good morning, everyone, and thank you for joining us today at Perion's Q4 2024 Earnings Call. 2024 was a pivotal year for us at Perion. It was a year of laying the foundation for a transformation that is now coming to life. Over the past year, we have been strategically aligning our technologies, operations and vision, setting the stage for the launch of the Perion One strategy.

大家早安，感謝您今天參加 Perion 2024 年第四季財報電話會議。 2024 年對 Perion 來說是關鍵的一年。這是為現在即將實現的轉型奠定基礎的一年。在過去的一年裡，我們一直在策略性地調整我們的技術、營運和願景，為 Perion One 策略的啟動奠定基礎。

With Perion One, we are uniting all of our technologies under one platform and all our business units and brands under one roof. While this strategy is expected to attract more customers through our unified platform, it is also transforming our organization to become more efficient than ever before.

透過 Perion One，我們將所有技術整合在一個平台下，並將所有業務部門和品牌整合在一個屋簷下。雖然這項策略有望透過我們的統一平台吸引更多客戶，但它也將使我們的組織比以往任何時候都更有效率。

Under this new strategy, we focus on AI development for both customer-facing products and operational efficiency solution. We believe that Perion One is the perfect platform for a deeply fragmented $700 billion industry, an industry that is forcing advertisers to navigate a complex maze of platforms, formats and channels.

在這項新策略下，我們專注於面向客戶的產品和營運效率解決方案的人工智慧開發。我們相信，Perion One 是一個完美的平台，適合高度分散的價值 7000 億美元的行業，這個行業迫使廣告商在複雜的平台、格式和通路迷宮中找到方向。

The focus has long been on where ads run. if it's CTV, open web, digital out-of-home or social rather than what truly matters, reaching the right customers at the right moment with the right message to drive exceptional results. This fragmentation leads to inefficiencies, wasted spending and missed opportunities.

人們長期以來關注的焦點是廣告的投放地點。無論是 CTV、開放網路、數位戶外或社交，而不是真正重要的事情，即在正確的時間向正確的客戶傳達正確的訊息，以取得卓越的成果。這種分散性會導致效率低、資金浪費和錯失機會。

At Perion, we believe this complexity shouldn't be the advertiser's problem to solve. That's why we're building Perion One to unify, simplify and amplify the advertisers' journey, ensuring advertisers can focus on impact and results, not execution challenges.

在 Perion，我們相信這種複雜性不應該成為廣告商需要解決的問題。這就是我們建立 Perion One 的原因，以統一、簡化和擴大廣告商的旅程，確保廣告商能夠專注於影響力和結果，而不是執行挑戰。

The foundations of Perion One are based on advanced AI capabilities that infuse personalized messaging for every brand moment. The role of Perion One is to solve the complexity of omnichannel advertising and provide a unified AI-driven advertising infrastructure that deliver precision, efficiency and measurable results.

Perion One 的基礎是先進的 AI 功能，可為每個品牌時刻注入個人化的訊息。Perion One 的角色是解決全通路廣告的複雜性，並提供統一的人工智慧驅動的廣告基礎設施，以實現精準、高效和可衡量的結果。

In this pivotal moment in Perion's history, I'm happy to reveal a first look at our Perion One platform. This platform will unite all our technologies in one place. It provides our customers with an advanced portal into creative insights and planning of any brand's next great advertising moment. Perion One will bring together CTV, digital out-of-home, retail media, social and open web capabilities under a single AI-driven platform. It is a fundamental change in how digital advertising should work.

在 Perion 歷史的這個關鍵時刻，我很高興首次展示我們的 Perion One 平台。這個平台將把我們所有的技術集中在一起。它為我們的客戶提供了一個先進的門戶，可以了解任何品牌的下一個偉大廣告時刻的創意見解和規劃。Perion One 將把 CTV、數位戶外、零售媒體、社交和開放網路功能整合到一個 AI 驅動的平台下。這是數位廣告運作方式的根本性改變。

Instead of siloed solutions, Perion One will provide advertisers with a seamless, intelligent platform that optimizes campaigns across every major channel. With Perion One, brands will benefit from greater economics, enabling every advertising dollar to be optimized for a maximum impact. The platform will offer increased efficiency to eliminate execution friction and streamline processes. Its advanced, AI-driven performance will automate optimization at scale and a smarter supply path will enrich DSPs and SSPs with premium inventory.

Perion One 不會提供孤立的解決方案，而是為廣告主提供無縫、智慧的平台，優化每個主要管道的廣告活動。借助 Perion One，品牌將獲得更大的經濟效益，使每一分廣告費都優化，以實現最大效益。該平台將提高效率，消除執行摩擦並簡化流程。其先進的人工智慧驅動性能將實現大規模自動優化，更智慧的供應路徑將為 DSP 和 SSP 提供優質庫存。

The Perion One platform will be gradually rolled out to our customers in the upcoming months. To fully capitalize on our new strategy and accelerate our transformation, we've strengthened our leadership team with some of the best talent in the ad tech industry. I'd like to welcome three exceptional leaders to our management team. Stephen Yap, a Google veteran, joined us as our new Chief Revenue Officer to lead our advertising sales worldwide. Kenny Lau, an ex-Criteo and ex-PubMatic steps in as our Chief Product Officer; and Mina Naguib, who was part of the leading team that architected the Samsung Ads technologies, takes on the role of our Chief Technology Officer.

Perion One 平台將在未來幾個月內逐步向我們的客戶推出。為了充分利用我們的新策略並加速我們的轉型，我們引進了一些廣告科技產業最優秀的人才來加強我們的領導團隊。我歡迎三位傑出的領導者加入我們的管理團隊。Google資深員工 Stephen Yap 加入我們，擔任新任首席營收官，領導我們全球的廣告銷售。前 Criteo 和 PubMatic 員工 Kenny Lau 擔任我們的首席產品長；作為三星廣告技術架構領導團隊成員之一的米娜·納吉布 (Mina Naguib) 擔任我們的技術長。

Mina will lead all our technologies, including our advanced AI solutions and infrastructures. This exceptional management team of Tier 1 leaders in the ad tech industry is instrumental. We believe it will expand our reach, deepen customer relationships and unlock new growth opportunities.

Mina 將領導我們所有的技術，包括我們先進的人工智慧解決方案和基礎設施。這支由廣告科技產業一級領導者組成的傑出管理團隊發揮了重要作用。我們相信它將擴大我們的業務範圍、加深客戶關係並開啟新的成長機會。

While preparing for this transformation, we continue to deliver strong performance on all of our three core growth engines: digital out-of-home and CTV, alongside our retail media as we continue to see adoption of our technologies with retailers. All our growth engines have consistently outpaced the market, and we believe they will continue to be the drivers of our future success.

在為這項轉型做準備的同時，我們繼續在三大核心成長引擎上保持強勁表現：數位戶外廣告和連網電視，以及零售媒體，因為我們繼續看到零售商採用我們的技術。我們所有的成長引擎都持續領先市場，我們相信它們將繼續成為我們未來成功的驅動力。

In 2024, our digital out-of-home grew by 50% year over year, far outpacing the 10% year over year market growth reported by eMarketer. This reflects our programmatic innovation and Perion's ability to drive higher performance than the industry. Our CTV solutions grew by 30% year over year, surpassing the 23% year over year market growth.

2024 年，我們的數位戶外廣告年增 50%，遠超過 eMarketer 報告的 10% 的市場年成長率。這體現了我們的程序創新和 Perion 推動高於行業績效的能力。我們的 CTV 解決方案年增 30%，超過了市場 23% 的年成長。

Our investments in advanced targeting and cross-device solutions continue to drive this momentum. As you recall, we expanded those capabilities with our new partnership with Experian, which we announced during Q4.

我們對先進定位和跨裝置解決方案的投資繼續推動這一勢頭。您還記得，我們​​透過與 Experian 建立新的合作夥伴關係擴展了這些功能，我們在第四季度宣布了這一消息。

Retailers continue to adopt our solutions. Our retail media grew by 62% year over year, more than tripled the industry 20% year over year growth. Each of these areas represent a high-growth, high-value market. Integrating them into Perion One gives us a unique competitive advantage, positioning us to accelerate future growth. Today, we are introducing a new way of looking at our results by breaking them down into channels.

零售商繼續採用我們的解決方案。我們的零售媒體年增62％，是該行業年增20％的三倍多。每個領域都代表著高成長、高價值的市場。將它們整合到 Perion One 中為我們提供了獨特的競爭優勢，使我們能夠加速未來的成長。今天，我們引入了一種查看結果的新方法，即按管道進行細分。

We believe this provides greater transparency into the new Perion One structure. It reflects our evolution into a platform that delivers greater efficiency and value. By aligning our reporting with our strategic focus, we enhance visibility and foster a more meaningful conversation with our investors and customers. Now, our CFO, Elad Tzubery, will walk you through our financial results.

我們相信這將為新的 Perion One 結構提供更大的透明度。它體現了我們向提供更高效率和價值的平台的演變。透過使我們的報告與策略重點保持一致，我們提高了知名度並與我們的投資者和客戶建立了更有意義的對話。現在，我們的財務長 Elad Tzubery 將向您介紹我們的財務表現。

Thank you, Tal, and thank you all for joining us today. 2024 was a challenging year for Perion. Nevertheless, we ended the year both profitable and with positive operating cash flow. In addition, we met the annual revised guidance that we provided in June 2024 for revenue, adjusted EBITDA and adjusted EBITDA to contribution ex-TAC margin. The strength of our balance sheet allows us to execute on our capital allocation priorities and growth plans, both organic and nonorganic.

謝謝你，塔爾，也謝謝大家今天加入我們。 2024 年對 Perion 來說是充滿挑戰的一年。儘管如此，我們今年仍然實現盈利，並實現了正的經營現金流。此外，我們也達到了 2024 年 6 月提供的有關收入、調整後 EBITDA 和調整後 EBITDA 至貢獻扣除 TAC 利潤率的年度修訂指引。我們強勁的資產負債表使我們能夠執行資本配置優先事項和成長計劃（包括有機和無機的）。

As of December 31, 2024, we repurchased a total of 5.2 million shares for a total of $46.9 million. As we enter 2025 under the Perion One strategy, we are unifying our technologies and brands into a single cohesive ecosystem.

截至 2024 年 12 月 31 日，我們共回購了 520 萬股，共 4,690 萬美元。在 Perion One 策略的引領下，我們即將進入 2025 年，並​​將我們的技術和品牌統一為一個單一的、有凝聚力的生態系統。

As part of this change, we have started streamlining our operations and optimizing costs through headcount reductions during the first quarter of 2025. This will also allow us to strengthen our ability to attract and serve more customers, run more efficient sales and marketing operations, maximize synergies across our entire organization and leverage a unified and connected data platform to drive smarter decision-making and higher margins. We expect these efficiency measures to continue to have positive impact on our profit margins through 2025 and going into 2026.

作為此項變革的一部分，我們已於 2025 年第一季開始透過裁員來精簡營運並優化成本。這也將使我們能夠增強吸引和服務更多客戶的能力，開展更有效率的銷售和行銷運營，最大限度地發揮整個組織的協同效應，並利用統一且互聯的數據平台來推動更明智的決策和更高的利潤率。我們預計這些效率措施將在 2025 年至 2026 年繼續對我們的利潤率產生正面影響。

Moving to our financial results. For the full year, revenue amounted to $498.3 million, a 33% decrease year over year. This is mainly related to the decrease in search revenue and the weakness in our Open Web video and standard ad formats. However, the decline in revenue was partially offset by continued strong performance of our growth engines.

轉向我們的財務表現。全年營收為4.983億美元，年減33%。這主要與搜尋收入的下降以及我們的開放網路影片和標準廣告格式的弱點有關。然而，營收的下降被我們成長引擎的持續強勁表現部分抵消。

Adjusted EBITDA was $50.9 million, resulting in a 10% adjusted EBITDA margin and a 24% ex-TAC margin. GAAP net income for the full year was $12.6 million, while non-GAAP net income was $64 million. During 2024, we generated cash flow from operating activities of $6.9 million and adjusted free cash flow of $16.6 million.

調整後的 EBITDA 為 5,090 萬美元，調整後的 EBITDA 利潤率為 10%，扣除 TAC 後的利潤率為 24%。全年 GAAP 淨收入為 1,260 萬美元，非 GAAP 淨收入為 6,400 萬美元。2024 年，我們產生的經營活動現金流為 690 萬美元，調整後的自由現金流為 1,660 萬美元。

As of December 31, 2024, net cash, including cash equivalents, short-term bank deposits and marketable securities were $373.3 million.

截至 2024 年 12 月 31 日，淨現金（包括現金等價物、短期銀行存款及有價證券）為 3.733 億美元。

Turning to our fourth quarter performance. Revenue was $129.6 million compared with $234.2 million in the same period last year. Our adjusted EBITDA for the fourth quarter was $15.5 million, resulting in a 12% adjusted EBITDA margin and a 28% ex-TAC margin. GAAP net income for the fourth quarter was $4.9 million, while non-GAAP net income was $16.1 million, resulting in a non-GAAP diluted earnings per share of $0.33.

談談我們第四季的表現。營收為 1.296 億美元，去年同期為 2.342 億美元。我們第四季的調整後 EBITDA 為 1,550 萬美元，調整後 EBITDA 利潤率為 12%，扣除 TAC 因素後的利潤率為 28%。第四季 GAAP 淨收入為 490 萬美元，非 GAAP 淨收入為 1,610 萬美元，非 GAAP 每股稀釋收益為 0.33 美元。

Our cash flow from operating activities remained positive, generating $4.3 million.

我們的經營活動現金流維持正值，達到 430 萬美元。

Advertising Solutions revenue for the fourth quarter was $104.1 million, down 13% year over year, representing 80% of total revenue. This decrease was expected due to the declining open video and standard ad formats as advertisers are shifting their budgets towards social video and higher-end solutions. This decline was partially offset by the continuous momentum from our core growth engines, CTV and digital out-of-home channels, and our retail vertical. Digital out-of-home increased by 57% year over year in the fourth quarter on a pro forma basis, representing 27% of Advertising Solutions revenue. While for the full year, digital out-of-home increased by 50% and represented 21% of Advertising Solutions revenue.

第四季廣告解決方案營收為1.041億美元，年減13%，佔總營收的80%。由於廣告商將預算轉向社交影片和高端解決方案，開放影片和標準廣告格式的減少是意料之中的。這一下降被我們核心成長引擎、CTV 和數位戶外通路以及零售垂直業務的持續成長勢頭部分抵消。第四季數位戶外廣告營收年增 57%，佔廣告解決方案收入的 27%。而全年而言，數位戶外廣告成長了50%，佔廣告解決方案收入的21%。

Our CTV business increased by 10% year over year in the fourth quarter, representing 15% of Advertising Solutions revenue versus 12% last year. For the full year, CTV increased by 30%, representing 13% of Advertising Solutions versus 8% in 2023. Our Retail Media business, a fast-growing market vertical, posted another strong quarter, primarily boosted by our digital out-of-home business. In the fourth quarter, Retail Media revenue grew by 34% year over year to $27 million. For the full year 2024, Retail Media revenue delivered an impressive 62% growth in comparison to 2023, reaching $80.6 million.

我們的 CTV 業務在第四季度同比增長了 10%，佔廣告解決方案收入的 15%，而去年這一比例為 12%。就全年而言，CTV 成長了 30%，佔廣告解決方案的 13%，而 2023 年為 8%。我們的零售媒體業務是一個快速成長的垂直市場，本季表現再創強勁，這主要得益於我們的數位戶外業務。第四季度，零售媒體營收年增34%至2,700萬美元。2024 年全年，零售媒體收入與 2023 年相比成長了 62%，達到 8,060 萬美元。

I would like to highlight that all three growth engines outpaced the market growth in 2024. According to eMarketer, digital out-of-home ad spending in the US grew by 10% year over year compared with Perion's 50% growth. CTV grew by 23% year over year compared with Perion's 30% growth and Retail Media grew by 20% year over year compared with Perion's 62% growth.

我想強調的是，所有三個成長引擎在 2024 年都超過了市場成長。據 eMarketer 稱，美國數位戶外廣告支出年增 10%，而 Perion 的增幅為 50%。CTV 年成長 23%，而 Perion 的增幅為 30%；零售媒體年增 20%，而 Perion 的增幅為 62%。

Turning to our search advertising. Revenue for the fourth quarter totaled $25.5 million, accounting for 20% of our total revenue. As we previously discussed, we did not renew our contract with Microsoft Bing that ended on December 31, 2024. Yet, in 2025, there is a tail period in which we expect to generate revenue.

轉向我們的搜尋廣告。第四季的營收總計2,550萬美元，占我們總營收的20%。正如我們之前討論過的，我們沒有續簽與 Microsoft Bing 於 2024 年 12 月 31 日結束的合約。然而，在 2025 年，我們預期會有一個尾端時期產生收入。

Overall, our search advertising is expected to remain stable, representing about 20% of our total revenue. In the fourth quarter, the contribution, excluding traffic acquisition costs margin, was 42% compared with 39% in the fourth quarter of 2023.

整體來看，我們的搜尋廣告預計將保持穩定，占我們總收入的20%左右。第四季度，不包括流量獲取成本利潤率的貢獻率為 42%，而 2023 年第四季為 39%。

On an annual basis, contribution ex-TAC margin was 43% compared with 42% in 2023.

以年度計算，扣除 TAC 後的貢獻利潤率為 43%，而 2023 年為 42%。

This is primarily due to the changes in our product mix, focusing on more profitable solutions. Adjusted EBITDA for the fourth quarter was $15.5 million or 12% of revenue and 28% of contribution ex-TAC. This compares to $53.9 million or 23% and 59%, respectively, in the fourth quarter of 2023. For the full year, adjusted EBITDA totaled $50.9 million or 10% of revenue and 24% of contribution ex-TAC. This compares to $169.1 million or 23% and 55%, respectively, in 2023.

這主要是由於我們的產品結構發生了變化，我們更專注於更有利可圖的解決方案。第四季調整後 EBITDA 為 1550 萬美元，佔營收的 12% 和扣除 TAC 貢獻的 28%。相比之下，2023 年第四季分別為 5,390 萬美元或 23% 和 59%。全年調整後的 EBITDA 總計 5,090 萬美元，佔營收的 10% 和扣除 TAC 貢獻的 24%。相較之下，2023 年則分別為 1.691 億美元，佔 23% 及 55%。

During the second half of 2024, we implemented cost reductions and efficiency measures. This helped us moderate the year over year decrease in adjusted EBITDA that resulted from the business decline in the first half of the year. On a GAAP basis, our fourth quarter net income was $4.9 million or $0.11 per diluted share versus $39.4 million in Q4 of 2023 or $0.78 per diluted share. On a non-GAAP basis, net income was $16.1 million or $0.33 per diluted share versus $52.9 million in Q4 of 2023 or $1.04 per diluted share.

2024 年下半年，我們實施了成本削減和效率措施。這幫助我們緩和了上半年業務下滑而導致的調整後 EBITDA 年比下降。根據 GAAP 計算，我們第四季的淨收入為 490 萬美元，即每股攤薄收益 0.11 美元，而 2023 年第四季的淨收入為 3,940 萬美元，即每股攤薄收益 0.78 美元。以非 GAAP 計算，淨收入為 1,610 萬美元，即每股攤薄收入 0.33 美元，而 2023 年第四季為 5,290 萬美元，即每股攤薄收入 1.04 美元。

For the full year, GAAP net income was $12.6 million or $0.25 per diluted share versus $117.4 million in 2023 or $2.34 per diluted share. Non-GAAP net income was $64 million or $1.27 per diluted share versus $167.4 million or $3.33 per diluted share in 2023. During the fourth quarter of 2024, we generated $4.3 million in both cash from operations and adjusted free cash flow. On a full year basis, we generated $6.9 million in cash from operations and $16.6 million in adjusted free cash flow. This gap in 2024 between adjusted EBITDA and adjusted free cash flow is attributed to the year over year change in the working capital related to our business with Microsoft Bing and the post-acquisition investment in HiveStack's working capital.

全年 GAAP 淨收入為 1,260 萬美元，即每股攤薄收入 0.25 美元，而 2023 年為 1.174 億美元，即每股攤薄收入 2.34 美元。非公認會計準則淨收入為 6,400 萬美元，即每股攤薄收入 1.27 美元，而 2023 年為 1.674 億美元，即每股攤薄收入 3.33 美元。2024 年第四季度，我們的營運現金流量和調整後自由現金流均為 430 萬美元。從全年來看，我們的營運活動現金流為 690 萬美元，調整後自由現金流為 1,660 萬美元。2024 年調整後的 EBITDA 與調整後的自由現金流之間的差距歸因於與我們與 Microsoft Bing 的業務相關的營運資本的同比變化以及收購後對 HiveStack 營運資本的投資。

For 2025, we expect our cash flow conversion from EBITDA to resemble past performance patterns. We expect to continue our decade-long track record of generating positive cash flow from operations and adjusted free cash flow. In the fourth quarter, we continued with our share buyback program and repurchased another 1.6 million shares for a total of $13.4 million. To date, we spent $46.9 million repurchasing shares against our total authorization of $75 million. As of December 31, 2024, we had on our balance sheet $373.3 million in cash, cash equivalents, short-term bank deposits and marketable securities.

到 2025 年，我們預計 EBITDA 的現金流量轉換將與過去的績效模式相似。我們期望延續十年來從經營活動中產生正現金流和調整後自由現金流的良好記錄。第四季度，我們繼續執行股票回購計劃，共回購了 160 萬股，總額為 1,340 萬美元。到目前為止，我們已花費 4,690 萬美元回購股票，而我們的總授權金額為 7,500 萬美元。截至 2024 年 12 月 31 日，我們的資產負債表上有 3.733 億美元的現金、現金等價物、短期銀行存款和有價證券。

Entering fiscal year 2025, and given our strong financial position, we are confident in our ability to execute our capital allocation strategy, balancing between share repurchases, organic investments and selective acquisitions that complement our growth strategy.

進入 2025 財年，鑑於我們強勁的財務狀況，我們有信心執行我們的資本配置策略，在股票回購、有機投資和選擇性收購之間取得平衡，以補充我們的成長策略。

Looking ahead towards 2025, we are providing our full year financial guidance, and we are introducing our core key performance indicators. These indicators provide a more accurate and helpful way to assess the strength of our business. As a result, going forward, we will begin sharing our revenue breakdown by advertising channels, digital out-of-home, CTV, web and search. 2025 will be a transformative and exciting year for us at Perion, one in which we are focusing on solutions that are more profitable and better aligned with our mission to make digital advertising more effective for our customers, and in turn, make our business more efficient.

展望 2025 年，我們將提供全年財務指導，並推出核心關鍵績效指標。這些指標為我們評估業務實力提供了更準確、更有用的方法。因此，展望未來，我們將開始按廣告管道、數位戶外、連網電視、網路和搜尋分享我們的收入分佈。 2025 年對 Perion 來說將是變革且令人興奮的一年，在這一年中，我們將專注於更有利可圖、更符合我們使命的解決方案，即為我們的客戶提供更有效的數位廣告，進而使我們的業務更有效率。

For the full year 2025, we expect to generate revenue of $400 million to $420 million, adjusted EBITDA of $40 million to $42 million and adjusted EBITDA to contribution ex-TAC margin of 22%. To summarize, we ended 2024 on a positive note, and we are excited for what's to come for Perion in 2025. With that, I will now pass it back to the operator for the Q&A session. Thank you.

就 2025 年全年而言，我們預計營收為 4 億至 4.2 億美元，調整後 EBITDA 為 4,000 萬至 4,200 萬美元，調整後 EBITDA 扣除 TAC 貢獻利潤率為 22%。總而言之，我們以積極的態度結束了 2024 年，我們對 2025 年 Perion 的未來充滿期待。說完這些，我現在將把它交還給操作員進行問答環節。謝謝。

(Operator Instructions) Andrew Marok, Raymond James.

（操作員指示）安德魯·馬羅克（Andrew Marok），雷蒙德·詹姆斯（Raymond James）。

I appreciate the new disclosure format and wanted to talk quickly about the Open Web business. So things pretty tough there right now and looking like it might continue into 2025 based on some of the shifts that Elad talked about. But in your estimation, how much of that is addressable via the Perion One reorg that you're working on? And how much is down to just tough conditions in the space overall?

我很欣賞新的披露格式，並想快速談談開放網路業務。所以現在的情況相當艱難，而且根據 Elad 談到的一些變化來看，這種情況可能會持續到 2025 年。但據您估計，其中有多少可以透過您正在進行的 Perion One 重組來解決？那麼，整體而言，有多少是因為太空環境條件艱苦造成的？

Thank you for the question, Andrew. You're absolutely right. Open Web as an industry as a channel is not a growing part. But we do believe that for us within Perion One platform as we're onboarding new advertisers to use our platform for all the channels. We do think that with time, our open web will start to strengthen again.

謝謝你的提問，安德魯。你完全正確。開放網路作為一個產業作為一個管道並不是一個正在成長的部分。但我們確實相信，對於我們 Perion One 平台而言，我們正在吸引新的廣告商，讓他們透過所有管道使用我們的平台。我們確實認為，隨著時間的推移，我們的開放網路將再次開始變得強大。

So we are optimistic on that, but we're also putting a lot of focus on CTV and out-of-home.

因此我們對此持樂觀態度，但我們也將重點放在 CTV 和戶外廣告上。

Of course, yes, the growth areas. I appreciate that. And then really quickly, if you could maybe give us a little sense of the Perion One reorg's effect on the 2025 outlook. I guess, what kind of has to still be done behind the scenes? And how much is figured into the guide in terms of incremental cost for any remaining work to be done or potential top line disruption as clients get moved over?

當然，是的，有成長領域。我很感激。然後很快，您能否給我們稍微介紹一下 Perion One 重組對 2025 年前景的影響。我想，幕後還需要做哪些事呢？那麼，隨著客戶轉移，剩餘工作的增加成本或潛在的營收中斷成本在指南中被計算在內是多少？

Sure. So thank you for the question. So first of all, I said regarding the Perion One strategy, First of all, as part of this change, we already took some measures already in the first quarter of 2025 and going to some headcount reductions. And I believe that going into the future, the ability of unifying everything together actually will help us to run much more efficient sales and marketing operations. By having the platform within the agencies, they already have access to all of our offering, and it will be much more efficient in our sales pitch, and they will have already everything in place to be able to increase the budget and by that, to allow us to be much more efficient in our efforts.

當然。感謝您的提問。因此，首先，關於 Perion One 策略，我首先說過，作為這項變革的一部分，我們已經在 2025 年第一季度採取了一些措施，並進行了部分員工裁減。我相信，展望未來，將所有事物統一在一起的能力實際上將幫助我們開展更有效率的銷售和行銷業務。透過在代理商內建立平台，他們已經能夠訪問我們提供的所有產品，並且這將使我們的銷售宣傳更加高效，而且他們已經做好了一切準備來增加預算，從而讓我們的工作更加高效。

In addition to that, we already took into consideration in 2025 the guidance some of those initiatives inside mostly around operational efficiency and of course, the ability to leverage our -- leverage all of the data and to enjoy from improved margins into the 2025. Having said that, we do expect that the full impact of this change will actually be reflected in 2026. But some of this is already, of course, reflected in 2025, mostly around second half of the year.

除此之外，我們已經在 2025 年的指導方針中考慮了其中的一些舉措，主要圍繞營運效率，當然還有利用我們所有數據的能力，並享受 2025 年利潤率的提高。話雖如此，我們確實預計這項變革的全部影響將在 2026 年真正體現出來。但其中一些當然已經反映在 2025 年，主要是在下半年左右。

Jason Helfstein, Oppenheimer.

奧本海默的傑森‧赫爾夫斯坦 (Jason Helfstein)。

Okay, can you hear me now? So two questions, like two-parter on Perion One. So one, I guess, it's -- when you think about making the shift, how does it allow you, once you're done to kind of -- I guess, talk about how you're planning to use automation to actually improve the gross margins of kind of the dollars that will move to Perion One? And then I guess it's like you just talked about in your last answer, do you think there's going to be an efficiency on the sales and marketing. So is it -- you think both there's a long-term benefit to gross margin on efficiency of executing the campaigns using automation.

好的，你現在聽得到我的聲音嗎？所以有兩個問題，就像 Perion One 上的兩個部分一樣。所以，我想，首先，當您考慮進行轉變時，一旦完成，它如何允許您這樣做——我想，談談您計劃如何使用自動化來實際提高將轉移到 Perion One 的美元的毛利率？然後我想這就像您剛才在回答上一個問題時談到的，您認為銷售和行銷效率會提高嗎？所以是這樣的——您認為使用自動化執行活動的效率對毛利率有長期好處嗎？

On top of that, it improves the go-to-market because the tools will be with your customers, and so you won't have to spend as much on sales and marketing? And then maybe tie that back to how much of the slowdown in Open Web was you proactively slowing down because the cost of running these campaigns wasn't productive, as opposed to the market caused the slowdown in that spend?

最重要的是，它改善了產品上市速度，因為這些工具將與您的客戶在一起，這樣您就不必在銷售和行銷上投入太多？然後也許可以將其與開放網路的放緩聯繫起來，有多少是您主動放慢速度的，因為運行這些活動的成本沒有效率，而不是市場導致了這些支出的放緩？

Yes.

是的。

So kind of three questions there.

所以這裡有三個問題。

Absolutely. So let's start with automation. So we're absolutely focusing on a lot of automation, everything AI-driven. One, automation to reduce the level of manual work that we do today. So as we scale, we do see better efficiency.

絕對地。那麼讓我們從自動化開始。因此，我們絕對專注於大量自動化，一切由人工智慧驅動。第一，透過自動化減少我們如今的手工勞動量。因此，隨著規模擴大，我們確實看到了更高的效率。

So that's a core factor of this reorganization. How do we get more work with less manual work (inaudible), and it goes hand-in-hand with our sales and marketing. So currently, when we're getting new campaigns, it's a lot of manual work, and we're shifting that towards automation. This is an ongoing work. We've started that 6 to 7 months ago, and we're just in the middle of the process, but we do expect to become more and more efficient.

這是此次重組的核心因素。我們如何用更少的手工勞動獲得更多的工作（聽不清楚），這與我們的銷售和行銷密切相關。因此目前，當我們開展新的活動時，需要進行大量的手動工作，而我們正在將其轉向自動化。這是一項正在進行的工作。我們在 6 到 7 個月前就開始了這項工作，目前正處於過程的中間階段，但我們確實希望變得越來越有效率。

As to marketing, Perion had five different brands up until now. Now we only have one. So the marketing dollars are now focused on only one brand, which should give us -- for the same money, should give us 5x more efficiency on our marketing dollars towards our own brand. As for the web, so you've asked, and I think you're absolutely right. We've -- when we look at this new organization, we realized a lot of the things we have are still -- they've existed since 1999.

至於行銷，Perion 迄今為止已有五個不同的品牌。現在我們只有一個。因此，行銷費用現在只集中在一個品牌上，這將使我們用同樣的錢，在自有品牌上的行銷費用效率提高 5 倍。至於網絡，你問了，我認為你完全正確。當我們審視這個新組織時，我們意識到我們擁有的許多東西仍然存在——它們自 1999 年以來就已經存在了。

And a lot of things are still kind of legacy with old technology. So some of the things we needed to figure out, are we going to continue to do those with old technology that are not -- it's not really relevant, or the future, or rebuild that, or just let it go. And we've decided on some things that are with lower margins and that needed refactoring to the technology to just let them go. And this is why you actually see a lowered guidance than what we previously thought of giving because we wanted to focus on the high-growth parts. And we didn't want to reinvest in old technology that wasn't the future.

很多東西仍然是舊技術的遺留問題。所以，我們需要弄清楚的一些事情是，我們是否要繼續使用那些與未來不太相關的舊技術，或重建它，或就此放棄它。我們已決定放棄一些利潤較低且需要技術重構的項目。這就是為什麼您實際上看到的指導值比我們之前給出的要低，因為我們希望專注於高成長部分。我們不想對那些不屬於未來的舊技術進行重新投資。

And we only want to focus on high-margin products.

我們只想專注於高利潤的產品。

And this is why everything is very aligned within the Perion One platform, the new super talented executives that we brought on board and even the guidance, which is super focused on the strategic parts and the high-margin parts. I hope that answered the question.

這就是為什麼 Perion One 平台內的一切都非常一致，我們引入的新超級天才主管甚至指導都高度關注策略部分和高利潤部分。我希望這能回答這個問題。

Yeah, that's good color, thank you.

是的，顏色很好，謝謝。

Eric Martinuzzi, Lake Street.

馬丁努齊 (Eric Martinuzzi)，湖街。

Yes. The CTV growth for the year was up 30%, but it did slow to a 10% growth rate in Q4. Just wondering what sort of growth rate you baked in for 2025?

是的。今年的 CTV 成長率為 30%，但第四季的成長率確實放緩至 10%。只是想知道您預期 2025 年的成長率是什麼樣的？

So thank you, Eric. So regarding the CTV, you're correct to see CTV in Q4 was 10%. But we actually saw in Q4 some value shifts also to the out-of-home under the anywhere TV. So some of those dollars in Q4 were actually shifted to out-of-home. So -- and I think that, as you mentioned, the overall yearly performance of our CTV is actually outperformed the market.

所以謝謝你，埃里克。因此關於 CTV，您正確地看到第四季度的 CTV 是 10%。但我們實際上在第四季度看到一些價值轉變，轉向了隨處電視等戶外領域。因此，第四季度的部分資金實際上轉移到了戶外廣告。所以 — — 我認為，正如您所說，我們的 CTV 的整體年度表現實際上優於市場。

It is.

這是。

And if we are looking at 2025, we believe that also in 2025, we'll be beating -- at least beating the market growth for CTV.

如果我們展望 2025 年，我們相信到 2025 年，我們的成長速度也將至少超過 CTV 的市場成長速度。

On an annual basis.

每年一次。

On an annual basis?

以年度計算嗎？

Yes.

是的。

Okay. On an annual basis, we do expect to continue to beat the market on CTV.

好的。從年度來看，我們確實預期在 CTV 上的表現將繼續超越市場。

Okay. And then your -- I missed it, but you commented on the translation of adjusted EBITDA. For -- so at the midpoint, we've got $41 million of adjusted EBITDA. What does that translate into for free cash flow for the year?

好的。然後你的——我錯過了，但你對調整後的 EBITDA 的翻譯進行了評論。對於—所以在中間點，我們的調整後 EBITDA 為 4,100 萬美元。這對於全年的自由現金流來說意味著什麼？

That's an excellent question.

這是一個非常好的問題。

Really great question.

真是一個好問題。

So even though our EBITDA this year is lower than 2024, on our cash flow, we do expect it to be much higher than 2024. Elad, if you can give him some color?

因此，儘管我們今年的 EBITDA 低於 2024 年，但就我們的現金流而言，我們確實預計它將遠高於 2024 年。埃拉德，你能給他塗點顏色看看嗎？

Yes. 2024, we saw a onetime gap that happens mostly as a result of the year over year change in the working capital related to our search activity. And of course, building the working capital for HiveStack following the acquisition. In 2025, we are expected that our cash flow conversion from the EBITDA will be back to the normal rates as we used to see before 2024, meaning that the adjusted free cash flow and the EBITDA will be very close to each other.

是的。 2024 年，我們看到了一次性的差距，這主要是由於與我們的搜尋活動相關的營運資本逐年變化所造成的。當然，收購之後也要為 HiveStack 累積營運資金。2025 年，我們預計 EBITDA 的現金流轉換率將恢復到 2024 年之前的正常水平，這意味著調整後的自由現金流和 EBITDA 將非常接近。

So cash flow-wise should be better year than 2024.

因此從現金流來看，今年應該比 2024 年更好。

Laura Martin, Needham & Co.

勞拉·馬丁（Laura Martin），Needham & Co.

Love the new disclosures. I agree with Andrew on that. So I wanted to start with Retail Media vertical. So up 34%. When I think of retail media, Tal, I think of CTV only.

喜歡新的披露。我同意安德魯的觀點。所以我想從零售媒體垂直領域開始。因此上漲了34%。塔爾，當我想到零售媒體時，我只想到 CTV。

Can you confirm what the mix of the retail media vertical is? And then secondly, a lot of people, your competitors, are saying that opens up new total addressable markets because you can attract SMBs to retail media. Can you talk about whether you're getting new clients in retail media? And then third, specifically related to retail media, are there other verticals, like this one, that we should be thinking about that are becoming as large as retail media vertical, which you break out now?

能否確認零售媒體垂直組合的情況？其次，許多人，包括您的競爭對手，都表示這開闢了新的潛在市場，因為您可以吸引中小企業關注零售媒體。您能談談您是否在零售媒體中獲得了新客戶嗎？第三，具體與零售媒體相關，是否還有其他垂直行業，例如這個，我們應該考慮，它們變得和零售媒體垂直行業一樣大，您現在具體談談這個行業嗎？

Yes, absolutely. It's great to hear from you. And thanks for the question. So retail media is really a way of measuring how much retailers are adopting our technologies. And you're absolutely right, CTV was the engine that started it all with us.

是的，絕對是如此。很高興收到您的來信。感謝您的提問。因此，零售媒體實際上是衡量零售商採用我們技術的程度的一種方式。您完全正確，CTV 是我們啟動這一切的引擎。

It turns out a lot of our retailers, we were able to shift them into more and more solutions among them, Waves, which is our audio. Still small, but it's getting there and absolutely out-of-home. So our retail media play plays a lot into physical stores. I don't know if you guys know this, but physical stores are still representing roughly, I think, 85% of acquisitions versus online, at least for grocery. So our platform and our activity is going to be focusing a lot on how do we drive people back to grocery stores, physical grocery stores through all our solutions, and that might be out-of-home, CTV, web, audio, the entire thing.

事實證明，我們能夠將許多零售商轉向越來越多的解決方案，其中包括 Waves，也就是我們的音訊解決方案。雖然規模仍然很小，但已經接近目標，並且絕對超出了預期。因此我們的零售媒體在實體店中扮演重要角色。我不知道你們是否知道這一點，但我認為實體店仍然佔據著大約 85% 的購物份額，而不是網上購物，至少對於雜貨而言是如此。因此，我們的平台和活動將重點放在如何透過我們的所有解決方案將人們吸引回到雜貨店、實體雜貨店，這些解決方案可能是戶外廣告、CTV、網路、音訊等所有一切。

And you absolutely right. SMBs are absolutely on the table. Now that we have a platform, we're working on creating that as a second phase to also SMBs. We're going to start with -- since we have Stephen Yap, which comes with 25 years of experience with big agencies, retailers and Tier 1 brands, we're going to start with that. But SMBs are definitely on our road map, maybe not for 2025, but for going forward, absolutely, this is something on our radar.

你完全正確。中小企業絕對可以考慮。現在我們有了平台，我們正致力於將其作為第二階段的服務提供給中小型企業。我們將從——因為我們有 Stephen Yap，他有 25 年與大型機構、零售商和一級品牌合作的經驗，所以我們將從他開始。但中小企業肯定在我們的路線圖上，也許不是在2025年，但對未來來說，這絕對是我們關注的事情。

Does that answer your question?

這回答了你的問題嗎？

It's fantastic. My other question is on the generative AI large language model. It sounds like you're integrating -- you're not only automating but also using the large language models more. You used to be using OpenAI because of your close relationship with Microsoft. But given the breakup, given the divorce, my question is, are you using different large language models as the backbone for Perion One?

太棒了。我的另一個問題是關於生成式人工智慧大型語言模型。聽起來你正在整合——你不僅在自動化，而且還在更多地使用大型語言模型。由於您與微軟關係密切，您曾經使用過 OpenAI。但考慮到分手、考慮到離婚，我的問題是，您是否使用不同的大型語言模型作為 Perion One 的骨幹？

Are you using multiple ones? Are you still using the OpenAI backbone, large language model? Can you talk about what's happening on the back end of Perion One and your generative AI usage?

您使用多個嗎？您還在使用 OpenAI 主幹、大型語言模式嗎？您能談談 Perion One 後端的情況以及您的生成式 AI 的使用嗎？

Yes. Yes, absolutely. That's an excellent question. So even though Microsoft -- we're in good terms, so no beef there, and we didn't ditch OpenAI, but we do experiment more and more with the Google capabilities and now our lab are actually looking at the DeepSeek algorithms just to see their capabilities. Obviously, they're way cheaper, so a lot more efficient.

是的。是的，絕對是如此。這是一個非常好的問題。因此，儘管我們與微軟的關係很好，所以沒有什麼矛盾，我們也沒有拋棄 OpenAI，但我們確實越來越多地嘗試谷歌的功能，現在我們的實驗室實際上正在研究 DeepSeek 演算法，以了解它們的功能。顯然，它們更便宜，因此效率更高。

But it's a bit of early days for that new algorithm. But yes, we're working with -- we're testing all the infrastructures out there to make sure that we have the right one with the right structuring -- right cost structuring. Obviously, those things are expensive.

但該新演算法還處於早期階段。但是的，我們正在測試所有的基礎設施，以確保我們擁有正確的結構和正確的成本結構。顯然，這些東西很貴。

Okay. And just my understanding is, let's say, you move to DeepSeek, which is much less expensive. Is it -- would you stay on more than one? Or once you build on DeepSeek, is it -- are the barriers to exit pretty high? Do you have to sort of stay with whichever one you build your capabilities on?

好的。我的理解是，假設你轉向 DeepSeek，它的成本要低得多。是嗎－您會入住不只一家嗎？或者一旦你在 DeepSeek 上進行構建，退出的門檻是否會很高？你是否必須堅持使用你建構能力的那個？

No. So everything we do stays on -- we might take -- so DeepSeek is an open source. So we might take pieces of that. But everything stays on our environment. Since it's an open source, it stays on our environment.

不。所以我們所做的一切都會保留——我們可能會採取——所以 DeepSeek 是一個開源的。因此我們可以採取其中的一部分。但一切都保留在我們的環境中。因為它是開源的，所以它保留在我們的環境中。

Maybe we won't use their different versions or their updates, but we won't build anything that has a high cost of switching.

也許我們不會使用它們的不同版本或更新，但我們不會建立任何切換成本高昂的東西。

Jeff Martin, ROTH Capital.

羅仕證券（ROTH Capital）的傑夫·馬丁（Jeff Martin）。

I wanted to drill down a little more on Open Web. It's still 46% of Advertising Solutions revenue in the fourth quarter with you expecting that to kind of level off and grow at some point. What sort of things internally are you doing to facilitate that inflection? And could you pinpoint when in 2025 you anticipate that inflection?

我想更深入地了解開放網路。它仍然佔第四季度廣告解決方案收入的 46%，您預計這一比例將在某個時候趨於平穩並出現成長。您內部正在做哪些事情來促進這種轉變？您能否準確指出 2025 年何時會出現這個轉捩點？

So on the web part and the open web channel, we don't see -- we don't anticipate a big change in 2025. I think the major wins that we're aiming for is out-of-home and CTV, and that's also -- if we can increase web, then we would absolutely love that. But the major focus is on more advanced solutions. Open web is pretty crowded. So we're focusing on more advanced solutions for CTV, for out-of-home and all across the board for retail media.

因此，在網路部分和開放的網路管道方面，我們沒有看到——我們預計 2025 年不會發生重大變化。我認為我們瞄準的主要勝利是戶外廣告和 CTV，而且如果我們能夠增加網路廣告，那麼我們絕對會喜歡它。但主要的焦點是更先進的解決方案。開放網路相當擁擠。因此，我們專注於為 CTV、戶外廣告和零售媒體提供更先進的解決方案。

So that's really the focus. But again, since we're an agnostic platform, whatever the client wants, that's what we're going to deliver. We're not pushing for a specific channel. But that's how we've modeled 2025.

所以這才是真正的重點。但是，因為我們是一個不可知論的平台，所以客戶想要什麼，我們就提供什麼。我們並不推崇某個特定的管道。但這就是我們對 2025 年的建模。

Great. And then one more, if I could. On the capital allocation as we head into -- further into 2025 and thinking beyond that at the same time, how are you thinking about your acquisition strategy relative to the company's focus on Perion One, getting that in place, starting to see the benefit from that? Maybe help us understand how you're thinking about potential acquisitions relative to the Perion One strategy?

偉大的。如果可以的話，還想再說一次。關於資本配置，隨著我們進入 2025 年並同時考慮更長遠的未來，您如何考慮相對於公司對 Perion One 的關注的收購策略，如何實施這一策略，並開始看到其中的好處？也許可以幫助我們了解您如何看待與 Perion One 策略相關的潛在收購？

Yes. that's a good question. So within Perion One, we -- obviously, we -- it took a lot of effort to consolidate everything, all the business units, all the brands and all the technologies. We do not intend to break that again. So whatever we're going to buy it has to be -- has to fit within this platform as additional features to those customers, right?

是的。這是個好問題。因此，在 Perion One 內部，我們 — — 顯然，我們 — — 花費了大量精力來整合一切，包括所有業務部門、所有品牌和所有技術。我們無意再次破壞這一點。所以，無論我們要購買什麼，它都必須能夠適應這個平台，作為對客戶的附加功能，對嗎？

So it's built in as an extremely synergetic solution. We will never, again, buy companies that are going to be stand-alone. So that's how we're thinking about it.

因此，它是一種極具協同作用的解決方案。我們永遠不會再收購獨立的公司。這就是我們的想法。

But to be honest, we are now mainly focusing on our organic growth, making sure this transition works well. We just added three amazing executives to make sure that this transition goes well, the unification transition. So we have a lot of work on our plate, but we still look at some great companies. And as I said, whenever we're going to find something, it has to be part of this one platform. We're not going to deviate from that.

但說實話，我們現在主要關注的是有機成長，確保這項轉型順利進行。我們剛剛增添了三位出色的高階主管，以確保這項過渡、即統一過渡順利進行。因此，我們有很多工作要做，但我們仍在關註一些優秀的公司。正如我所說的，無論何時我們要尋找什麼東西，它都必須是這個平台的一部分。我們不會偏離這個目標。

This concludes the Q&A session. I will now hand it back to Tal Jacobson and Elad Tzubery for closing remarks.

問答環節到此結束。現在我將把發言權交還給 Tal Jacobson 和 Elad Tzubery，請他們作最後發言。

Thank you for joining us today, and we're excited about the future and hope to see you again next time. Thank you.

感謝您今天的加入我們，我們對未來充滿期待，希望下次能再見到您。謝謝。

Thank you.

謝謝。