"In the third quarter, Perion grew revenue 8.1% to $110.5 million, with adjusted non-GAAP (generally accepted accounting principles) grew 22% to $0.28. Both figures beat expectations, but what was especially notable was Perion's revenue growing for the first time since the first quarter of 2024. In 2024, Microsoft made a change to its Bing search algorithm that greatly reduced Perion's revenue, then cut Perion and other demand-side platforms out of the loop altogether."
"That caused a deep decline in Perion's Search business and overall revenue. However, it appears that the decline in Search-related revenue is now over, with the company's other smaller but high-growth segments outweighing the weaker parts of the business: As you can see, Perion's largest segment in web advertising is struggling, but the high-growth DOOH and CTV segments are gradually making up a larger and larger part of the business. Moreover, even Search revenue seems to have bottomed and is turning upwards again."
Perion returned to revenue growth in the third quarter, with revenue up 8.1% to $110.5 million and adjusted non-GAAP EPS rising 22% to $0.28. Revenue growth marked the first increase since the first quarter of 2024. A 2024 change to Microsoft's Bing algorithm and subsequent platform exclusions had driven a deep decline in Search revenue. High-growth segments such as DOOH and CTV are increasingly offsetting weaker web advertising results. Perion launched Perion ONE to unify cross-channel ad buying and formed a retail advertising partnership with Albertsons, driving 40% retail ad growth. Perion holds $315.6 million in cash, creating a cash-heavy balance sheet.
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