JERUSALEM, Nov 9 (Reuters) – Advertising technology firm Perion Network (PERI.TA),
said on Wednesday it expects sales and earnings to grow in 2023 after posting a 53% rise in third-quarter profit, as advertisers continue to shift to new ways of targeting customers.
Its Tel Aviv-listed shares rose 5.5% after it also lifted its estimate for 2022 adjusted earnings before interest, taxes, depreciation and amortization to at least $120 million from $102 million.
Israeli-based Perion has been capitalizing on advertisers moving away from traditional advertising and into digital areas where ad returns are higher such as in social media and televisions connected to the internet.
Although it narrowed its 2022 sales outlook to $630 million-$635 million from a $620 million-$640 million range for 32% annual growth, the company said it saw no indication of a slowdown in ad spending into next year despite fears of a recession in the United States.
“We are expecting to grow. We have a great opportunity to continue to be highly profitable,” chief executive Doron Gerstel told Reuters, but said it was too early to make more specific 2023 estimates.
Analysts expect Perion to generate revenue of $733 million next year, according to I/B/E/S data from Refinitiv, to which Gerstel said “15% growth compared to what we are doing this year is doable”.
He said that new digital technology made it easier for companies to do better consumer targeting. Among them are TVs and devices connected to the internet, tracking searches on the internet and newer platforms such as podcasts.
More specific targeting could be further helped by new ad tiers from Netflix (NFLX.O) and Disney+ (DIS.N) despite charging advertisers a lofty $65 per thousand views, Gertsel added, triple what others have charged.
Perion earned 61 cents per diluted share excluding one-time items in the third quarter, up from 40 cents a share a year earlier. Revenue rose 31% to $158.7 million.
The company was forecast to earn 44 cents a share excluding items on revenue of $158 million, according to I/B/E/S data from Refinitiv.
Reporting by Steven Scheer; Editing by Jan Harvey and Emelia Sithole-Matarise
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