PERI Q1 2025 Raises FY Guidance: Rev +7%, EBITDA +10%
- Upgraded guidance based on strong Q1 performance: Management raised full-year revenue and EBITDA guidance (up 7% and 10% at the midpoint, respectively) supported by a robust Q1 performance and a healthy pipeline that should stabilize display revenue from next quarter onward.
- Synergistic integration of Greenbids: The immediate integration of the profitable Greenbids acquisition enhances Perion One with advanced AI capabilities, expanding lower funnel performance and tapping into new market segments, particularly in the U.S., thereby driving future growth.
- Compelling unified platform resonating with CMOs: The combined offering of Perion One, enriched with innovations like UID 2.0 and Greenbids' custom algorithm, delivers measurable advertising outcomes and simplifies multi-platform management, garnering strong positive feedback from CMOs and positioning the company for accelerated market adoption.
- Integration and attribution risks: The company's inability to clearly separate the performance of Greenbids from its legacy business creates uncertainty. Despite the immediate integration, the full revenue and EBITDA impact are expected to materialize in 2026, leaving the near-term contribution ambiguous.
- Reliance on synergy realization: The upside guidance heavily depends on achieving anticipated synergies from both Greenbids and organic initiatives. Any delay or underperformance in realizing these synergies could adversely affect the expected revenue and margin improvements.
- Uncertainty in display/web revenue stabilization: Despite recent strong growth in certain channels, the legacy web revenue faced a significant decline and is only expected to stabilize next quarter. This reliance on a turnaround in a historically important segment presents a potential risk to overall performance.
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Guidance Pickup
Q: Why was guidance raised this quarter?
A: Management noted strong Q1 performance, stabilization in display and robust organic growth combined with early Greenbids synergies, leading to a 7% revenue and 10% adjusted EBITDA increase in guidance. -
Acquisition Details
Q: What were Greenbids’ 2024 figures?
A: Executives indicated that, on a stand-alone basis, Greenbids delivered low double-digit revenue growth and contributed low single-digit EBITDA margins, reflecting a fast-growing and profitable unit. -
Integration Timeline
Q: When is Greenbids integrated into Perion One?
A: The integration occurred immediately, though the full market impact, particularly in the U.S., is expected to accelerate more noticeably by 2026. -
Unified Offering
Q: How are CMOs reacting to the platform?
A: CMOs have shown excitement for the unified offering and AI-powered enhancements, appreciating the streamlined approach that reduces the need for multiple platforms. -
TAM Expansion
Q: How will the expanded TAM be leveraged?
A: The acquisition enhances access to performance-based, lower funnel opportunities in key walled gardens, positioning Perion for rapid market share gains despite current uncertainties.
Research analysts covering Perion Network.