Perion Network Ltd. (PERI) is poised to outperform in 2022. Based in Israel, Perion delivers advertising solutions to brands, agencies and publishers in North America, Europe and elsewhere around the world, suggests Bryan Perry, editor of Hi-Tech Trader.
It provides Wildfire, a content monetization platform, search monetization solutions, actionable performance monitoring platform and a cross-channel social software as a service platform that lifts return on money spent on ads.
The company offer solutions in analytics for marketing campaigns on artificial intelligence (AI)-driven platforms that help define and optimize how content is created in order to have the highest level of impact on targeted consumers and business. Perion also markets tools to manage content on websites and for publishers that build websites.
Perion posted Q3 earnings per share (EPS) of $0.40. which beat estimates by $0.12 on revenue of $121.02 million (+45.1% year/year) that beat by $12.06 million. The company raised guidance for the fourth quarter and the full year.
In 2022, management expects to generate revenues of $455 million to $465 million (consensus: $438.29 million) and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $59 million to $61 million, vs. prior guidance of $415 million to $430 million and $50 million to $51 million, respectively.
Following a $100 million secondary stock offering on Dec. 8, shares of PERI are trading at $23. This is well off the recent high of $33, which was the product of a reaction to the standout earnings report. The stock is a fundamental and technical buy.
