Analogy 1: It's like a smaller, independent version of Google's advertising business, helping websites monetize their content with ads and enabling brands to reach customers online.

Analogy 2: Think of it as a comprehensive ad technology platform for publishers and advertisers, combining services found in Google AdSense (for websites) and The Trade Desk (for brands) into a single ecosystem.

• SORT (Smart Optimization of Responsive Traits): An advertising platform designed for cookieless environments, using contextual signals and AI to deliver relevant ads without relying on personal identifiers.
• Undertone: A high-impact creative advertising platform offering premium ad experiences across display, video, and Connected TV (CTV) for advertisers.
• Hivestack: A programmatic digital out-of-home (DOOH) ad server and supply-side platform (SSP) that enables real-time buying and selling of DOOH ad inventory.
• Vidazoo: A video monetization platform providing publishers with tools to manage and optimize video content and advertising on their sites.
• Search Monetization: Services that partner with search engines (e.g., Microsoft Bing) to provide search advertising solutions, enabling publishers to monetize their search traffic.

Perion Network (PERI) operates primarily in the ad-tech space, selling its advertising technology solutions to other companies.

Given the nature of its business, which involves connecting a wide array of advertisers (brands and agencies) with a large number of publishers (websites, apps, media owners) across various platforms (search, display, CTV), Perion does not typically have a small, identifiable list of "major customers" in the traditional sense that account for a dominant portion of its revenue.

Instead, Perion's revenue is derived from a vast ecosystem of partners and clients. However, a key and widely recognized partnership that significantly contributes to Perion's revenue, particularly within its search advertising segment, is with:

• Microsoft Corporation (Symbol: MSFT): Perion's CodeFuel search monetization platform relies heavily on its partnership with Microsoft. Perion's platform funnels search queries to Microsoft's Bing search engine and monetizes the resulting advertising impressions through Microsoft's ad network. While Microsoft acts as a critical partner and revenue source rather than a direct "customer" paying Perion for its services, this relationship is fundamental to a significant portion of Perion's business.

On the demand side (advertisers), Perion's Undertone platform serves thousands of brands and advertising agencies, and on the supply side (publishers), it partners with numerous media owners and broadcasters. No single advertiser or publisher typically represents a "major customer" that is publicly disclosed or accounts for a disproportionate amount of revenue.

• Microsoft Corporation (MSFT)

Tal Jacobson, Chief Executive Officer

Tal Jacobson has over two decades of leadership and executive experience in the ad-tech industry. He was appointed Perion's CEO in 2023. Previously, he served as General Manager of CodeFuel, Perion's Search Advertising unit, since 2018, where he was instrumental in driving market share and solidifying a strategic relationship with Microsoft. Jacobson was a co-founder and Chief Revenue Officer of SimilarWeb, where he played a pivotal role in its early growth, eventually leading to its IPO. He also held the CEO position at the video collaboration platform Watchitoo, was VP of Business at McCann Erickson, and Director of Business Development at AOL. His career began at Macromedia in 1997, which was later acquired by Adobe.

Elad Tzubery, Chief Financial Officer

Elad Tzubery is a seasoned finance professional with over a decade of experience in financial leadership roles within NASDAQ-listed companies. Appointed CFO in 2024, he specializes in building and leading finance organizations and scaling business capabilities. Tzubery has played a key role in Perion's M&A processes. Prior to joining Perion, he held financial leadership positions at Allot Communications and EY Israel. He holds a BA in Accounting and Business Administration from the College of Management.

Stephen Yap, Chief Revenue Officer

Stephen Yap joined Perion as Chief Revenue Officer. He previously served as Managing Director of the Google Marketing Platform team, where he oversaw Google's data and technology solutions for retail and commerce across the Americas. During his 17-year tenure at DoubleClick and Google, Yap successfully led various teams and product launches, helping marketers advance their digital maturity.

Maoz Sigron, Chief Operating Officer

Maoz Sigron is an experienced finance executive with over a decade of experience with NASDAQ-listed companies. He previously served as Perion's Chief Financial Officer from February 2018 until Elad Tzubery's appointment in 2024. Prior to Perion, Sigron was Vice President of Allot Communications, where he led the full lifecycle of M&A deals, from due diligence to integration. He also served as Controller at Stratasys Ltd., playing a key role in the Objet-Stratasys merger, and as Controller at Tnuva. Earlier in his career, he was a CPA at PwC.

Ran Ben-Yair, General Manager, High Impact & Social Advertising

Ran Ben-Yair is a pioneer in online advertising, holding multiple executive leadership roles at Perion since rejoining the company in 2017. He co-founded and served as President of Legolas Media, one of the first audience-powered Demand-Side Platforms (DSPs), which was acquired by Undertone in 2014. Ben-Yair also served as Vice President of Product Strategy at Sizmek (formerly MediaMind), where he guided product strategy through its IPO.

Emerging Threats for Perion Network (PERI):

• The evolving landscape of search engines with the integration of AI-powered conversational interfaces. Perion generates a significant portion of its revenue from search advertising, largely through its partnership with Microsoft Bing. The active deployment of AI-powered conversational tools like Microsoft Copilot and Google's Search Generative Experience (SGE) has the potential to fundamentally alter user behavior. If users receive direct, summarized answers within the search results page without needing to click on external links, it could lead to a reduction in ad impressions and clicks, thereby impacting Perion's core search advertising monetization model. The shift in how users interact with search is an emerging threat to traditional search advertising revenue streams.
• The ongoing deprecation of third-party cookies and increasing global privacy regulations. The ad-tech industry, including Perion, has historically relied heavily on third-party cookies for audience targeting, measurement, and attribution. With major browsers like Google Chrome phasing out third-party cookies (currently targeting H2 2024) and stringent privacy regulations (like GDPR and CCPA) becoming more widespread and enforced, the ability to track users across the web is significantly hampered. While Perion has been developing alternative solutions (e.g., first-party data strategies, contextual advertising), this systemic shift forces a complete overhaul of established methodologies, creating uncertainty and potentially impacting the effectiveness and revenue generation from its advertising platforms if adaptation is not sufficiently rapid or effective compared to competitors.

Perion Network (NASDAQ: PERI) operates in the digital advertising sector, offering solutions across search, social media, and display/video/Connected TV (CTV) advertising. The company's management estimates their total addressable market globally was $521 billion in 2021, with an expected growth to $756 billion by 2026.

For its main products and services, the addressable markets are sized as follows:

• Digital Advertising (Overall): The worldwide digital ad spending was forecasted to reach $526 billion in 2023.
• Search Advertising: The worldwide search ad spend was estimated at $163 billion in 2021 and projected to grow to $222 billion in 2024. Perion's serviceable market within search, based on Bing's market share, is approximately $6.3 billion globally.
• Connected TV (CTV) Advertising: The U.S. ad spend for Connected TV is projected to exceed $36 billion in 2026. Globally, CTV advertising spending is estimated to reach nearly $26 billion in 2023 and is expected to surpass $42 billion by 2028.
• Social Media Advertising and Walled Gardens: Perion's acquisition of Greenbids expanded its addressable market to include walled garden channels such as YouTube, Facebook, and Instagram. While a specific market size for Perion's social media offerings wasn't explicitly stated, the acquisition targets this significant segment of digital advertising.

Perion Network Ltd. (PERI) is expected to drive future revenue growth over the next two to three years through several key strategies and market trends:

1. Growth in High-Potential Advertising Channels (Connected TV, Retail Media, and Digital Out-of-Home): Perion Network has consistently highlighted Connected TV (CTV), Retail Media, and Digital Out-of-Home (DOOH) as significant growth engines. These segments have demonstrated strong year-over-year increases, outpacing overall market growth and offsetting declines in other areas such as search and open web video. The company has launched new solutions, such as its Performance CTV Solution, to capitalize on the increasing demand for measurable advertising results in these channels, with the CTV advertising market alone projected to exceed $36 billion in U.S. ad spend by 2026.
2. Leveraging the Perion One Unified Platform and AI-Driven Technologies: The Perion One platform is central to the company's strategy, aiming to unify its diverse advertising technologies and enhance operational efficiencies. Perion is heavily investing in advanced AI-driven solutions, including its AI audience segmentation technology (SORT) and generative AI audio ad solution (WAVE), to deliver improved outcomes for advertisers and navigate the complexities of digital advertising. Strategic acquisitions, such as Greenbids, further expand Perion's AI capabilities and total addressable market.
3. Strategic Acquisitions and Geographical Expansion: Perion plans to pursue growth through strategic mergers and acquisitions (M&A) that integrate into its Perion One platform. The acquisition of Greenbids is one example contributing to the company's expanded capabilities. Additionally, Perion is focused on geographical expansion, including recent moves into markets like Korea and new partnerships across Europe, which reflect a global growth strategy and build trust in its technology.

Share Repurchases

• Perion Network's Board of Directors authorized an expansion of its share repurchase program to a total of $125 million on March 10, 2025.
• As of December 31, 2024, the company had repurchased 5.2 million shares totaling $46.8 million.
• By October 30, 2025, a total of 9.6 million shares had been repurchased for $86.7 million since the program's inception, with approximately $38.3 million remaining under the current authorization.

Outbound Investments

• In late 2023, Perion acquired Hivestack, which significantly boosted its Digital Out-Of-Home (DOOH) business.
• Perion acquired Greenbids in 2025, which is expected to increase 2025 revenue guidance by $30 million and EBITDA by $4 million.
• The company continues to evaluate additional merger and acquisition opportunities.

Capital Expenditures

• Perion Network's last 12-month capital expenditure was approximately -$8.88 million.
• Capital expenditures have shown significant growth, with a year-over-year increase of 465.9% and a 3-year compound annual growth rate (CAGR) of 143.8%.
• Projected capital expenditures are set at $2 million annually from 2025 to 2029.