Perion Network Ltd

Hello, everybody, and welcome to the Perion Network second quarter 2024 earnings conference call. Today's conference is being recorded. The press release detailing the financial results is available on the company's website at www.perion.com. Before we begin, I'd like to read the following Safe Harbor statement. Today's discussion includes forward-looking statements. These statements reflect the company's current views with respect to future events. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including those discussed under the heading risk factors and elsewhere in the company's annual report on Form 20F that may cause actual results, performance, or achievements to be materially different, and any future results, performance, or achievements anticipated or implied by these forward-looking statements. The company does not undertake to update any forward-looking statements to reflect future events or circumstances as in prior quarters. The results reported today will be analyzed both on a GAAP and non-GAAP basis. While mentioning EBITDA, we'll be referring to adjusted EBITDA. We have provided a detailed reconciliation of non-GAAP measures to their comparable GAAP measures in our earnings release, which is available on our website and has been filed on Form 6-K. Hosting the call today are Tal Jacobson, Perrion's Chief Executive Officer, and Moaz Sigron, Perion's Chief Financial Officer. I'd now like to turn the call over to Tal Jacobson. Please go ahead.

Good morning and good afternoon. Thank you for joining us for our second quarter earnings review. As always, Moaz Sigron, our CFO, is with me today. I want to start by reminding all of us what are we trying to solve at Perion. Digital advertising is expected to reach $700 billion this year and grow to over $900 billion within three years. However, managing this vast spending across numerous platforms, channels, screens, data points has become very complex for the advertisers. The chief marketing officer is in charge of spending those digital advertising budgets. An army of experts and vendors are needed to cover all relevant advertising channels. And when they do, it's almost impossible to prove actual ROI across all channels and platforms. This is where Perion comes in, providing the technology that fits the brand goals. As a technology company, we ensure our tech fits the brand strategy, as different brands have different needs. In the early days, an off-the-shelf CRM worked for many brands. Today, we know that if you want to get the best results from your CRM, it's not enough to buy a license for a CRM such as Salesforce. If you want to get the best results, you need to customize the technology to your needs. The same applies to the $700 billion digital advertising industry. And we believe we are on our way to tackle the over-complexity of digital advertising universe through technology. Our mission in the fast-evolving, over-complex, omnichannel advertising universe is clear. To identify, connect, deliver, and measure compelling messages across multiple screens and platforms. while maximizing our clients' advertising budgets. The core of our technology is to empower advertisers to seamlessly and effectively connect with their audience, whether at home, at work, in the supermarket, or on the move. This quarter, we made significant advancements in our technologies, forged key integrations, and secure crucial partnerships to advance our solutions. Here's a reflection of our core growth engines that have continued to demonstrate positive momentum with a strong double digit growth rate. HiStack, our best of breed programmatic digital out of home technology that we acquired at the end of last year is already bearing fruit. We have added a robust growth engine, enhanced our ability to help advertisers deliver omnichannel experiences, and expanded our global footprint. Programmatic digital out of home is expected to play a pivotal role in the future of retail media as consumers continue to see goods at physical stores and retail advertisers compete for their attention. By leveraging our technology, advertisers can synchronize their campaigns to deliver consistent brand messages, effectively to maximize ROI. Our recent omnichannel campaign for Colorado tourism utilized our CTV pause ads, our cutting-edge AI-generated dynamic audio ad technology called Wave, and our mobile interactive ads.

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