Steve Orman

Steve Orman asked for more details on the confidence underpinning the 28% Adjusted EBITDA margin target for 2028, specifically regarding cost of revenue efficiencies, OpEx, and AI initiatives.

Answer

CFO Elad Tzubery highlighted the progress already made, citing the Q4 margin jump from 29% last year to 37% this quarter. He explained that efficiency measures, particularly in G&A and cost of revenue, will continue through automation and AI tools. Mr. Tzubery also mentioned planned investments in go-to-market and R&D for the upcoming year, which, combined with accelerated growth, are expected to further expand the Adjusted EBITDA to contribution ex-TAC ratio over the next few years.

Steve Orman asked for more detail on the confidence underpinning the target of a 28% Adjusted EBITDA to Contribution ex-TAC margin by 2028, specifically inquiring about the contributions from cost of revenue efficiencies, OpEx, and AI initiatives.

Answer

Tal Jacobson, Perion's Chief Executive Officer, (Correction: Elad Tzubery, Perion's Chief Financial Officer, answered this question) highlighted the progress already made, with Q4 margins increasing from 29% last year to 37% this quarter. He attributed this to efficiency measures implemented in G&A and cost of revenues through automation and AI tools. Mr. Jacobson also mentioned planned investments in go-to-market and R&D for the upcoming year, expecting that as growth progresses, the impact of these efficiencies will further contribute to the EBITDA to Contribution ex-TAC ratio.