Perion Network (PERI) Canaccord Genuity's 46th Annual Growth Conference summary

Strategic repositioning and platform unification

• In 2025, the business unified under the Perion One platform, pivoting to address digital advertising complexity with an AI-driven layer above major platforms like Google and Meta.

• Perion One integrates digital out-of-home, CTV, retail media, and the AI agent Outmax, all showing strong adoption and spend growth.

• The platform leverages AI to optimize campaigns across channels, creatives, and audiences, providing actionable insights and recommendations.

• Ask Perion, a new agentic interface, enables clients to interact with campaigns and receive optimization suggestions in real time.

• Outmax, the optimization engine, is expanding to more channels and is considered highly sticky due to its performance-driven outcomes.

Business momentum and channel performance

• Perion One achieved 15% year-over-year growth in spend, with retail media up 60%, CTV up 56%, out-of-home up 45%, and Outmax over 130%.

• Digital out-of-home is the largest channel, now operating over 1.6 million screens in 40+ countries, including new in-store integrations like Best Buy Canada.

• CTV is among the fastest-growing products, developed organically and outperforming market growth rates.

• Retail media strategy combines online and in-store presence, with partnerships including Amazon, Walmart, Mastercard, and Best Buy.

• Exclusive reseller agreements are used to expand into new geographies efficiently, focusing on partners with strong agency and brand relationships.

Financial outlook and capital allocation

• Search remains a stable and profitable segment, supporting investment in growth engines and buybacks.

• Full-year guidance was narrowed to the upper end, with profitability expected to inflect in H2 due to seasonality and new strategic agreements.

• 2028 targets reaffirmed: Perion One spend CAGR of at least 25%, contribution ex-TAC growth of at least 20%, and adjusted EBITDA margin of 28%, driven by growth and AI efficiencies.

• AI-driven automation, including Ask Perion, is expected to improve operational efficiency and support margin expansion.

• Capital allocation remains disciplined, with ongoing buybacks and selective M&A focused on CTV, retail media, digital out-of-home, and cross-channel activation.