Perion Network (PERI) Boosts Q4 Outlook; Guides FY15 Revenue Above Expectations

Perion Network Ltd. (NASDAQ: PERI) updated its guidance for the fourth quarter of 2015, including one month of activity from its recent acquisition of Undertone.

As announced earlier this month, Perion closed on its Undertone acquisition on November 30, 2015. Previous guidance for the fourth quarter was issued prior to the Undertone acquisition, and as a result the company is updating its guidance to include Undertone's December activity.

Financial Outlook:

• Fourth quarter revenues expected to be in the range of $64 - $66 million and adjusted EBITDA to be in the range of $9.5 - $10.5 million;
• Full year revenues expected to be in the range of $217 - $219 million with adjusted EBITDA in the range of $52 - $53 million.

*** The Street sees Q4 revenue of $53.8 million and FY15 revenue of $207.1 million.

Josef Mandelbaum, Perion's CEO, commented, "This is a great way to end our year, continuing our transformation into a leader in delivering high-quality advertising solutions to brands and publishers. Most encouraging was the fact that our business performed well in the fourth quarter. Search revenues were stable, as queries showed slight growth, offset by slightly lower than expected RPM's in the fourth quarter. Our mobile marketing platform has continued to show nice growth, and Undertone performed slightly better than expected in the month post acquisition. As we close out 2015, I can confidently say that our business is stronger and more diversified entering the New Year."

The company expects to give first quarter 2016 guidance when it announces 2015 full year and fourth quarter final results. It is important to note that the advertising industry is very seasonal, with the fourth quarter usually being the strongest and the first quarter the weakest.

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