Latest news with #PERI
Globe and Mail
7 days ago
- Business
- Globe and Mail
Perion Reports Second Quarter 2025 Results
Perion Network Ltd. (NASDAQ and TASE: PERI), a leader in advanced technology solving for the complexities of modern advertising, today reported its financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights 1 In millions, except per share data Three months ended Six months ended June 30, June 30, 2025 2024 % 2025 2024 % Advertising Solutions Revenue $ 80.6 $ 74.4 8% $ 150.3 $ 150.2 0% Search Advertising Revenue $ 22.4 $ 34.3 (35%) $ 42.0 $ 116.4 (64%) Total Revenue $ 103.0 $ 108.7 (5%) $ 192.3 $ 266.5 (28%) Contribution ex-TAC (Revenue ex-TAC) $ 47.6 $ 49.8 (4%) $ 87.3 $ 110.0 (4%) GAAP Net Income (Loss) $ (3.5) $ (6.2) 44% $ (11.8) $ 5.6 NM Non-GAAP Net Income $ 12.0 $ 13.4 (11%) $ 17.3 $ 36.0 (52%) Adjusted EBITDA $ 7.1 $ 7.7 (8%) $ 8.9 $ 28.0 (68%) Adjusted EBITDA to Contribution ex-TAC 15% 15% 10% 25% Net Cash from Operations $ 21.3 $ (20.5) NM $ 14.2 $ (13.6) NM Adjusted Free Cash Flow $ 20.7 $ (11.4) NM $ 13.3 $ (4.9) NM GAAP Diluted EPS $ (0.08) $ (0.13) 38% $ (0.27) $ 0.11 NM Non-GAAP Diluted EPS $ 0.26 $ 0.26 0% $ 0.36 $ 0.71 (49%) ___________________________________ 1 Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA, Adjusted Free Cash Flow and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures Business & Financial Highlights Advertising Solutions revenue increased 8%, first YoY gain since Q3'23 Strong operating cash flow and adjusted free cash flow of $21.3 million and $ 20.7 million, respectively Channels DOOH revenue increased 35% YoY to $17.6 million Web revenue increased 5% YoY to $53.1 million CTV revenue decreased 5% YoY to $9.7 million Search revenue decreased 35% YoY to $22.4 million Retail Media 2 vertical revenue increased 27% YoY to $22.3 million Greenbids synergies on track, winning custom algo deals from Perion's existing (non-Greenbids) customers, unlocking over one million dollars in booked business within the first 3 months post acquisition Launch of Performance CTV Solution to capture share in $36B+ high-growth streaming ad market 3 Expanding into Korea through strategic partnerships with KT Corporation and NHN AD, unlocking access to APAC's high-growth $21B DOOH market Expanding EMEA DOOH reach and growth through strategic partnerships in Europe Anat Paran joins Perion as the new Chief Operating Officer, bringing a wealth of operational and organizational leadership Second quarter share repurchase of 3.6 million shares for the amount of $33.4 million Reiterating FY 2025 guidance ___________________________________ 2 Retail Media revenue includes several media channels, such as CTV, DOOH, and others 3 2026 forecast for Connected TV ad spending in the U.S. according to eMarketer (July 2025) 'Our second quarter financial performance reflects our progress and early validation of our Perion One strategy, marked by first quarter of year-over-year growth in Advertising Solutions revenue since the third quarter of 2023, signaling that we are beginning to reap the fruits of our transformation,' said Tal Jacobson, Perion's CEO. 'As our financial performance continues to improve, we are also making significant progress in executing our business strategy. The integration of Greenbids into Perion is fully on track, and we are already benefiting from tangible synergies, reflected in early wins of custom algorithm deals from existing and new customers,' added Mr. Jacobson. 'Further expanding our Perion One platform offering, earlier today we announced the launch of our new performance CTV solution, enabling us to activate outcome-based video campaigns across premium streaming environments, with enhanced creative formats and advanced attribution. As CTV ad spend continues to shift toward performance-driven models, we believe this offering significantly strengthens our value proposition.' 'At the same time, our expansion into Korea, alongside new partnerships across Europe, marks another strong step in Perion's global growth strategy,' Mr. Jacobson continued. 'It reflects the trust leading companies place in our technology and the strength of our partnerships as we scale across both new and existing markets.' Revenue and Trends by channel 4 Channels Q2 2025 Revenue ($M) % of Revenue YoY Change DOOH 17.6 17% 35% CTV 9.7 9% -5% Web 53.1 52% 5% Search 22.4 22% -35% Other 0.3 0% -51% ___________________________________ 4 Numbers may not add up due to rounding Financial Outlook for Full-Year 2025 5 Based on current expectations, the Company is reiterating its full-year 2025 outlook ranges: Revenue of $430 to $450 million Adjusted EBITDA 6 of $44 to $46 million Adjusted EBITDA 6 to contribution ex-TAC 6 of 22% at the midpoint Mr. Jacobson concluded: 'While 2025 is a year of transition and transformation for Perion, our financial and business performance represent another meaningful step forward in our journey to cement Perion as a one-stop solution for brands, agencies, and retailers, and become the platform of choice for CMOs seeking transparency, efficiency, and measurable performance across digital channels.' ___________________________________ 5 We have not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because we do not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts. 6 Contribution ex-TAC and Adjusted EBITDA are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures. Share Repurchase Program In March 2025, Perion's Board of Directors authorized a $50 million expansion of the previously authorized share repurchase program of $75 million of its outstanding shares, to a total of $125 million During the second quarter of 2025, the company repurchased a total of 3.6 million shares at a total amount of $33.4 million. As of June 30, 2025, the company repurchased a total of 9.6 million shares at a total amount of $86.7 million. Financial Comparison for the Second Quarter of 2025 Revenue: Revenue decreased by 5% to $103.0 million in the second quarter of 2025 from $108.7 million in the second quarter of 2024. Advertising Solutions revenue increased 8% year-over-year, accounting for 78% of revenue, primarily due to a 35% increase in Digital Out of Home revenue and a 5% increase in our Web channel, partially offset by 5% decline in CTV revenue. Search Advertising revenue decreased by 35% year-over-year, accounting for 22% of revenue, following the previously announced changes implemented by Microsoft Bing in 2024. Traffic Acquisition Costs and Media Buy ('TAC'): TAC amounted to $55.4 million, or 54% of revenue, in the second quarter of 2025, compared with $58.9 million, or 54% of revenue, in the second quarter of 2024. GAAP Net Income (Loss): GAAP net loss decreased by 44% to a loss of $3.5 million in the second quarter of 2025, compared with a GAAP net loss of $6.2 million in the second quarter of 2024. Non-GAAP Net Income: Non-GAAP net income was $12.0 million, or 12% of revenue, in the second quarter of 2025, compared with $13.4 million, or 12% of revenue, in the second quarter of 2024. A reconciliation of GAAP to non-GAAP net income is included in this press release. Adjusted EBITDA: Adjusted EBITDA was $7.1 million, or 7% of revenue (and 15% of Contribution ex-TAC) in the second quarter of 2025, compared with $7.7 million, or 7% of revenue (and 15% of Contribution ex-TAC) in the second quarter of 2024. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release. Cash Flow from Operations: Net cash from operating activities in the second quarter of 2025 was $21.3 million, compared with $20.5 million that were used in the second quarter of 2024. Operating cash flow includes approximately $8 million in customer collection that shifted from March 2025 to April 2025. Net cash: As of June 30, 2025, cash and cash equivalents, short-term bank deposits and marketable securities, amounted to $318.5 million, compared with $373.3 million as of December 31, 2024. Conference Call Perion's management will host a conference call to discuss the results at 8:30 a.m. ET today: Registration link: A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion's website. About Perion Network Ltd. Perion helps brands, agencies, and retailers maximize the value of their advertising investments with advanced AI and creative technologies. Its unified platform, Perion One, bridges media, data, and performance across digital channels to deliver superior results in an increasingly complex advertising environment. For more information, visit Non-GAAP Measures Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude certain items. This press release includes certain non-GAAP measures, including Contribution ex-TAC and Adjusted EBITDA. Contribution ex-TAC presents revenue reduced by traffic acquisition costs and media buy, reflecting a portion of our revenue that must be directly passed to publishers or advertisers and presents our revenue excluding such items. We believe Contribution ex-TAC is a useful measure in assessing the performance of the Company because it facilitates a consistent comparison against our core business without considering the impact of traffic acquisition costs and media buy related to revenue reported on a gross basis. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ('Adjusted EBITDA') is defined as income from operations excluding stock-based compensation expenses, restructuring costs, unusual legal costs, depreciation, amortization of acquired intangible assets, retention and other acquisition-related expenses, as well as gains and losses recognized with respect to changes in fair value of contingent consideration. Adjusted free cash flow is defined as net cash provided by (or used in) operating activities less cash used for the purchase of property and equipment, but excluding the purchase of property and equipment related to our new corporate headquarter office and the portion of the cash payment of contingent consideration in excess of the acquisition date fair value, as we do not view either of those expenses as reflective of our normal on-going expenses. It is important to note that these expenses are in fact cash expenditures. Non-GAAP net income and non-GAAP diluted earnings per share are defined as net income (loss) and net earnings (loss) per share excluding stock-based compensation expenses, restructuring costs, unusual legal costs, retention and other acquisition-related expenses, amortization of acquired intangible assets and the related taxes thereon, foreign exchange gains and losses associated with ASC-842, as well as gains and losses recognized with respect to changes in fair value of contingent consideration. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required for such presentation without unreasonable effort. Consequently, no reconciliation of the forward-looking non-GAAP financial measures is included in this press release. A reconciliation between results on a GAAP and non-GAAP basis is provided in the last table of this press release. Forward Looking Statements This press release contains historical information and forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words 'will,' 'believe,' 'expect,' 'intend,' 'plan,' 'should,' 'estimate' and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Many factors could cause the actual results, performance or achievements of Perion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, but not limited to, political, economic and other developments (including the current war between Israel and Hamas and other armed groups in the region), 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 transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, and general risks associated with the business of Perion including, the transformation in our strategy, intended to unify our business units under the Perion brand (Perion One), intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions (including the fluctuation of our share price), loss of key customers or of other partners that are material to our business, the outcome of any pending or future proceedings against Perion, data breaches, cyber-attacks and other similar incidents, unpredictable sales cycles, competitive pressures, market acceptance of new products and of the Perion One strategy, changes in applicable laws and regulations as well as industry self-regulation, negative or unexpected tax consequences, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this press release. We urge you to consider those factors, together with the other risks and uncertainties described in our most recent Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (SEC) on March 25, 2025, and our other reports filed with the SEC, in evaluating our forward-looking statements and other risks and uncertainties that may affect Perion and its results of operations. Perion does not assume any obligation to update these forward-looking statements. PERION NETWORK LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS In thousands June 30, December 31, 2025 2024 (Unaudited) (Audited) ASSETS Current Assets Cash and cash equivalents $ 113,643 $ 156,228 Restricted cash 1,155 1,134 Short-term bank deposits 145,621 139,333 Marketable securities 59,715 77,774 Accounts receivable, net 162,875 164,358 Prepaid expenses and other current assets 30,929 22,638 Total Current Assets 513,938 561,465 Long-Term Assets Property and equipment, net 10,277 8,916 Operating lease right-of-use assets 18,500 20,209 Goodwill and intangible assets, net 363,859 316,003 Deferred taxes - 8,517 Other assets 610 416 Total Long-Term Assets 393,246 354,061 Total Assets $ 907,184 $ 915,526 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 119,670 $ 122,005 Accrued expenses and other liabilities 33,938 32,848 Short-term operating lease liability 3,211 3,648 Deferred revenue 1,815 2,049 Short-term payment obligation related to acquisitions 3,203 1,300 Total Current Liabilities 161,837 161,850 Long-Term Liabilities Payment obligation related to acquisition 19,553 - Long-term operating lease liability 19,765 18,654 Deferred taxes 5,096 - Other long-term liabilities 12,672 12,082 Total Long-Term Liabilities 57,086 30,736 Total Liabilities 218,923 192,586 Shareholders' equity Ordinary shares 360 391 Additional paid-in capital 502,539 527,149 Treasury shares at cost (1,002) (1,002) Accumulated other comprehensive gain (loss) 1,564 (215) Retained earnings 184,800 196,617 Total Shareholders' Equity 688,261 722,940 Total Liabilities and Shareholders' Equity $ 907,184 $ 915,526 PERION NETWORK LTD. AND ITS SUBSIDIARIES In thousands Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cash flows from operating activities Net Income (loss) $ (3,471) $ (6,209) $ (11,817) $ 5,559 Adjustments required to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,294 4,773 7,766 9,331 Stock-based compensation expense 7,494 5,686 15,081 11,105 Foreign currency translation (77) 7 (67) 29 Accrued interest, net (1,216) 1,043 1,698 2,781 Deferred taxes, net 2,128 (1,403) 5,447 (1,835) Accrued severance pay, net 151 (246) (847) (404) Restructuring costs - 6,895 1,322 6,895 Gain from sale of property and equipment (12) - (37) (8) Net changes in operating assets and liabilities 12,001 (31,080) (4,305) (47,091) Net cash provided (used in) by operating activities $ 21,292 $ (20,534) $ 14,241 $ (13,638) Cash flows from investing activities Purchases of property and equipment, net of sales (1,074) (692) (2,771) (1,131) Capitalization of development costs (413) - (413) - Investment in marketable securities, net of sales 6,922 3,644 18,493 1,709 Short-term deposits, net (4,305) 40,401 (6,288) 22,712 Cash paid in connection with acquisitions, net of cash acquired (26,566) - (26,566) - Net cash provided by (used in) investing activities $ (25,436) $ 43,353 $ (17,545) $ 23,290 Cash flows from financing activities Proceeds from exercise of stock-based compensation 19 107 36 366 Payments of contingent consideration - (31,702) - (31,702) Purchase of treasury stock (33,257) (20,052) (39,758) (20,052) Net cash used in financing activities $ (33,238) $ (51,647) $ (39,722) $ (51,388) Effect of exchange rate changes on cash and cash equivalents and restricted cash 318 (35) 462 (113) Net decrease in cash and cash equivalents and restricted cash (37,064) (28,863) (42,564) Cash and cash equivalents and restricted cash at beginning of period 151,862 175,962 157,362 188,948 PERION NETWORK LTD. AND ITS SUBSIDIARIES In thousands (except share and per share data) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Revenue $ 102,981 $ 108,691 $ 192,323 $ 266,511 Traffic acquisition costs and media buy 55,372 58,933 105,053 156,552 Contribution ex-TAC $ 47,609 $ 49,758 $ 87,270 $ 109,959 Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) GAAP Loss from Operations $ (7,366) $ (12,909) $ (20,393) $ (4,404) Stock-based compensation expenses 7,494 5,686 15,081 11,105 Retention and other acquisition related expenses 2,452 1,713 4,330 3,509 Unusual legal costs 190 - 754 - Change in fair value of contingent consideration - 1,541 - 1,541 Amortization of acquired intangible assets 3,716 4,259 6,630 8,345 Restructuring costs - 6,895 1,322 6,895 Depreciation 578 514 1,136 986 PERION NETWORK LTD. AND ITS SUBSIDIARIES In thousands (except share and per share data) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) GAAP Net Income (loss) $ (3,471) $ (6,209) $ (11,817) $ 5,559 Stock-based compensation expenses 7,494 5,686 15,081 11,105 Amortization of acquired intangible assets 3,716 4,259 6,630 8,345 Retention and other acquisition related expenses 2,452 1,713 4,330 3,509 Unusual legal costs 190 - 754 - Change in fair value of contingent consideration - 1,541 - 1,541 Restructuring costs - 6,895 1,322 6,895 Foreign exchange losses (gains) associated with ASC-842 1,951 (155) 1,591 (165) Taxes on the above items (368) (303) (556) (801) Non-GAAP Net Income $ 11,964 $ 13,427 $ 17,335 $ 35,988 Non-GAAP diluted earnings per share $ 0.26 $ 0.26 $ 0.36 $ 0.71 PERION NETWORK LTD. AND ITS SUBSIDIARIES In thousands (except share and per share data) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Net cash provided (used in) by operating activities $ 21,292 $ (20,534) $ 14,241 $ (13,638) Purchases of property and equipment, net of sales (1,487) (692) (3,184) (1,131) Free cash flow $ 19,805 $ (21,226) $ 11,057 $ (14,769) Purchase of property and equipment related to our new corporate headquarter office 942 181 2,279 181 Portion of the cash payment of contingent consideration in excess of the acquisition date fair value - 9,642 - 9,642
Time Magazine
24-06-2025
- Business
- Time Magazine
How TIME and Statista Determined the World's Most Sustainable Companies of 2025
Statista and TIME have joined forces to identify the World's Most Sustainable Companies of 2025, aiming to highlight corporate responsibility and promote sustainable practices. In an era marked by significant environmental challenges and social inequalities, it is crucial to recognize and reward companies prioritizing sustainability. By featuring these leading entities, the ranking sets a benchmark for other businesses, fostering transparency and accountability and encouraging the integration of sustainability into core corporate strategies. Methodology The ranking process began with a comprehensive selection from over 5,000 of the world's largest and most influential companies, considering factors such as revenue, market capitalization, and public prominence. The process involved a rigorous 4-step methodology to identify the top 500 companies, evaluated on more than 20 key data points. Exclusion of Non-Sustainable Businesses: The first step excluded companies involved in non-sustainable industries like fossil fuels or deforestation. Additionally, companies appearing on negative lists related to sustainability issues, such as those identified as carbon majors or associated with environmental catastrophes, were automatically disqualified. These include: Forest 500 Report (based on 2023 data), Carbon Majors (based on 2023 data), PERI Top 100 Polluter Indexes: Air, Water, Greenhouse, Toxic Greenhouse, Suppliers, Coal (based on 2022 data.) This step also considered significant scandals or controversies related to sustainability. Commitment & Ratings: The second step involved assessing companies based on external sustainability ratings and commitments from reputable organizations. Key criteria included CDP ratings, adherence to the UN Global Compact, alignment with the Science Based Targets initiative (near-term and long-term), inclusion in the S&P Global Sustainability Yearbook, participation in the UNFCCC Race to Zero campaign, and MSCI ESG & SRI evaluations. Reporting & Transparency: The third step evaluated the availability and quality of sustainability reports. This included verifying whether companies published an ESG report for 2023, ensuring these reports had undergone external assurance, and assessing compliance with international reporting standards such as GRI, SASB, and TCFD (now part of the IFRS/ISSB standards). Environmental & Social Stewardship: The final step involved researching various environmental and social Key Performance Indicators (KPIs) from companies' Corporate Social Responsibility (CSR) reports. Environmental metrics included emission intensity, emission intensity reduction, energy intensity, renewable energy ratio, waste intensity and the proportion of recycled waste. Social metrics covered aspects like gender diversity on the board of directors and in leadership, gender pay gap, work safety, and employee turnover. An overall sustainability score was calculated, with a maximum achievable score of 100. The top 500 companies with the highest scores were awarded the title of World's Most Sustainable Companies 2025. These companies are spread across more than 30 countries, with the United States, Japan, and France hosting the highest numbers. See the full list here.
Yahoo
13-05-2025
- Business
- Yahoo
Perion Network: Q1 Earnings Snapshot
TEL AVIV, Israel (AP) — TEL AVIV, Israel (AP) — Perion Network Ltd. (PERI) on Tuesday reported a loss of $8.3 million in its first quarter. The Tel Aviv, Israel-based company said it had a loss of 19 cents per share. Earnings, adjusted for one-time gains and costs, came to 11 cents per share. The digital media company posted revenue of $89.3 million in the period. Perion Network expects full-year revenue in the range of $430 million to $450 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on PERI at
Washington Post
13-05-2025
- Business
- Washington Post
Perion Network: Q1 Earnings Snapshot
TEL AVIV, Israel — TEL AVIV, Israel — Perion Network Ltd. (PERI) on Tuesday reported a loss of $8.3 million in its first quarter. The Tel Aviv, Israel-based company said it had a loss of 19 cents per share. Earnings, adjusted for one-time gains and costs, came to 11 cents per share.
Yahoo
13-05-2025
- Business
- Yahoo
Analysts Estimate Perion Network (PERI) to Report a Decline in Earnings: What to Look Out for
The market expects Perion Network (PERI) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on May 13, 2025, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This digital media company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -79.6%. Revenues are expected to be $88 million, down 44.2% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Perion Network, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -17.65%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Perion Network will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Perion Network would post earnings of $0.34 per share when it actually produced earnings of $0.33, delivering a surprise of -2.94%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Perion Network doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Yelp (YELP), another stock in the Zacks Internet - Content industry, is expected to report earnings per share of $0.31 for the quarter ended March 2025. This estimate points to a year-over-year change of +55%. Revenues for the quarter are expected to be $352.02 million, up 5.8% from the year-ago quarter. The consensus EPS estimate for Yelp has been revised 2.8% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -23.00%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Yelp will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Perion Network Ltd (PERI) : Free Stock Analysis Report Yelp Inc. (YELP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
