global ad tech company: for brands & publishers › wp-content › uploads › 2017 › 03 ›...

Doron GerstelCEO

GLOBAL AD TECH COMPANY:FOR BRANDS & PUBLISHERSPowered by technology. Enriched by data

This presentation contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995with respect to the business, financial condition and results of operations of Perion. The words “will”, “believe,” “expect,” “intend,” “plan,” “should” and similarexpressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion withrespect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of Perion to bematerially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financialinformation, including, among others, the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future,risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance; the risk that such transactionswill divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, potentiallitigation associated with such transactions, and general risks associated with the business of Perion including intense and frequent changes in the markets inwhich the businesses operate and in general economic and business conditions, loss of key customers, unpredictable sales cycles, competitive pressures,market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whetherreferenced or not referenced in this presentation . Various other risks and uncertainties may affect Perion and its results of operations, as described in reportsfiled by the Company with the Securities and Exchange Commission from time to time, including its annual report on Form 20-F for the year ended December31, 2016 filed with the SEC on March 7, 2017. Perion does not assume any obligation to update these forward-looking statements.

FORWARD LOOKING STATEMENTS

Non-GAAP financial measures, including adjusted EBITDA, consist of GAAP financial measures adjusted to exclude acquisition related expenses, other non-recurring expenses, share-based compensation expenses, accretion and gain from the reversal of acquisition related contingent consideration, impairment ofgoodwill, amortization and impairment of acquired intangible assets and the related taxes thereon, as well as certain accounting entries under the businesscombination accounting rules that require us to recognize a legal performance obligation related to revenue arrangements of an acquired entity based on itsfair value at the date of acquisition. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other itemsthat are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management usesin planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate ourbusiness and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performanceof our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, andshould be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financialmeasures may differmaterially from the non-GAAP financial measures used by other companies.

NON-GAAP MEASURES

1. Perion Facts2. Investment Highlights3. Company Evolution4. Powering Organic Growth5. Business Growth Indicators6. Search & Bing7. Comparable8. Key Takeaways9. Questions

Proprietary| NASDAQ: PERI

PERION FACTS

• Founded in 1999• Publicly listed 2006 (NASDAQ), 2007

(TASE)• Acquired Undertone in 2015• 500+ employees with main offices in

New York and Tel Aviv• Primary Sales offices: Chicago,

London, Paris• Sales Presence: Los Angeles, Boston,

Washington DC, Atlanta, Toronto, Dusseldorf, Hamburg, Barcelona

• Development offices: Tel Aviv, San Francisco, Buenos Aires


INVESTMENT HIGHLIGHTS

$312.8M

2016 EBITDA

$45.4M

Complete Solutions For Advertisers & Publishers

2016 Cash Flow

$33.8M

from continuing operations 2016 Revenue

150+ Fortune 500 companies

A leader in Bing Search Distribution

#1 FacebookMedia Partner

in Europe

• Market leader in digital advertising and search distribution

• Profitable for 10+ years

• Strong partnerships with


• Organic Growth• Advertising: accelerate transformation to full funnel solutions• Search: long term renewal with Bing in progress featuring expansion into adjacent products• Synergies: leverage relevant assets and opportunities• Talent: Mike Glover joins Perion as new search leader

• Differentiated Technology• Product: invest in world-class advertising and search capabilities• Engineering: focus on data infrastructure, customer insights, business intelligence• Partnerships: reduce capital commitment through selective alliances• Talent: Chris Henger promoted to global product leader

• Optimized Cost Structure• G&A: more efficient operating support • Media: drive economics of scale • Talent: Ophir Yakovian joins Perion as CFO

KEY PRIORITIES & ACTIVITES


2001 2005 2009

Rise of Display Ad Networks

COMPANY EVOLUTION

2003 200720042002 2006 2008

“Undertone Networks”Founded

Undertone Brand & Quality

Focus

Undertone Brand & Quality Network

1999

Perionfounded as

“Incredimail”

2000

Expand Consumer Apps Portfolio

Data-Driven Solutions

2013 2017 2011 20122010 2015 20162014

Exchanges, DSPs, & Mobile Networks Founded

M&A Period

Mobile Solutions

Proprietary Ad Format Development

Programmatic & SocialEnablement

Intent Data and Machine Learning

Search DistributionConsolidation


HISTORICAL DIGITAL ADVERTISING FUNNEL

Search & Social Advertising

Brand AdvertisingAwareness

Consideration

Intent

Purchase


FUNNEL SILOS STARTING TO CONVERGE

• High Impact

• Data-driven

• Great Creative

• Social Enabled

• Linked Capabilities

• Sophisticated Tech

• Programmatic

Awareness

Consideration

Intent

Purchase


KEY ASSETS POWER ORGANIC GROWTHLeveraging our integrated assets to drive long term growth and unlock sustainable shareholder value

• Diversified cross-screen media and technology platform

Search Distribution

• Free cash flow enabling investment in organic growth

Data & Intent

• Enhanced campaign performance, search growth, and operational efficiency

Quality Brand

Advertising Solutions


DATA IS OUR ‘GLUE’

Business Results

Intelligence Layer

Data Engine

Better Products

Identified Synergies

Enhanced Performance

Operational Efficiencies

Intent Data

CreativeProfiles

EngagementSignals

AudienceSegments

Automated Insights

AdvancedData Science

SophisticatedBusiness Analytics


BROADENING AND DEEPENING CUSTOMER RELATIONSHIPS TO INCREASE WALLET SHARE AND DRIVE GROWTH

Brand Advertising

• Expand business with global & local agency partners

• Increase incremental campaign spend through superior performance and service

Social

• Expand social offering with new channels and partnerships

• Add capabilities like Facebook Canvas, video content, and influencers to capture additional social budgets

Search

• Better optimize RPM through machine learning

• Extend into mobile to build deeper partnerships with publishers


PHARMACEUTICAL TECH/TELECOMFIN SERVICES RETAILCPGAUTO

SERVING THE WORLD’S BEST BRANDS ACROSS ALL VERTICALS


Engaging Video Storytelling Drives Purchase Intent for Puffs

10%Lift in Purchase Intent

CTR 36X Industry Rich Media

Benchmark1

Sexy, But Simple Car Imagery Sells 11,000+ Cars for BMW

11,310 Vehicles Purchased

21 seconds Interaction Time

Fun, Unexpected Creative Drives Site Visits for Garmin

635% Lift in Unique Site Visitors

389% Lift in Number of Site Visits

DELIVERING STRONG BUSINESS OUTCOMES …

173%Lift in Store Visits

178% Lift in Site Visits

Appealing Image Gallery Drives Consumers to Raymour & Flanigan

Sources: Sizmek1


60%

30%

0%

90%

45%

0%

3%

1.5%

0%

50%

25%

0%

… THROUGH HIGH PERFORMING CAMPAIGNS

38%

58% 85%

30%

*MOAT benchmark; *the ratio of those that converted from hovering to interactingSources: IPSOS; Sizmek 2015 Databook; Undertone 2016 Benchmarks

2.97%

.22%

34%

.98%

IPSOS Recall/Standard vs. Undertone HI

MOAT/Standard vs Undertone HI

Sizmek/RM vs Undertone HI

Sizmek/RM vs Undertone HI

EngagementAwareness Attention* CTR

Industry Undertone Industry Undertone Industry Undertone Industry Undertone

Proprietary| NASDAQ: PERISource: Undertone Data, Google Insights, IAS, MOAT; UDMS 2016 Benchmarks;Based on Undertone Page Grabber and Standard 300 x 250

86%Lower Cost Per Click

50% Lower Cost Per Engagement

$1.00

$7.14

$10.00

$5.00

0

$.20

$.10

0

$.10

$.20

Industry Undertone Industry Undertone

… WITH ATTRACTIVE RETURN ON INVESTMENT


UNDERTONE GROWTH STRATEGY• Provide Full Funnel Creative Digital Media Solutions

• Powered by technology• Enriched by data• Supported by service excellence

• Concentrate On Growth Categories Most Important To Brands• Mobile• Video• Social• Programmatic

• Value Creation For Brands, Agencies, And Media Partners

NASDAQ: PERI

Consumers

Proprietary Technology Platform

Exclusive Media Placements

Brands

Award WinningCreative

NASDAQ: PERI


• Achieving stability and growth alongside market changes• Fully compliant with market regulations• Cash flow to augment investments in our growth businesses

LEADING SEARCH SYNDICATION PLAYER WITH HIGH PROFITABILITY

Perion analysisBluCora/ InfoSpace was acquired on July 2016

Public And Private Competitors Solid long-term partnership with


LEVERAGING SYNDICATION SUCCESS TO GAIN MARKET SHARE

$104 $136

$76 $24

2015 2016

Syndication Tail & Other

• Decrease in expense-free search revenues generated from legacy users

• Increase in Search Syndication business


KEY TAKEAWAYS

Provide a full funnel creative digital media solutions for brands, agencies & media partners

Proprietary Technology

Our integrated assets to drive long-term growth & unlock shareholder value

Complete Solutions

Optimized Cost Structure

G&A: more efficient operating support Media: drive economics of scale

Organic Growth

150+ Fortune 500 companies

A leader in Bing Search Distribution

#1 FacebookMedia Partner in Europe

Strong partnerships with

Thank You

global ad tech company: for brands & publishers › wp-content › uploads › 2017 › 03 ›...

Documents