Perion Network Ltd. (NASDAQ: PERI) made waves in the market early Thursday morning on an improved outlook for its fourth quarter and full year. The company updated its guidance for the fourth quarter, including one month of activity from its recent acquisition of Undertone. Previous guidance was issued prior to the acquisition.
In terms of the financial outlook, fourth-quarter revenues are now expected to be in the range of $64 million to $66 million, and adjusted EBITDA to be in the range of $9.5 million to $10.5 million. The consensus estimate from Thomson Reuters calls for revenues of $53.75 million in the fourth quarter.
As for the full year, revenues are expected to be in the range of $217 million to $219 million, with adjusted EBITDA in the range of $52 million to $53 million. The consensus estimate calls for revenue of $207.07 million for the full year.
Josef Mandelbaum, CEO of Perion, commented on the updated guidance:
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.
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Looking past the fourth quarter, Perion expects to give first-quarter 2016 guidance when it announces the 2015 full-year and fourth-quarter final results. The company noted that the advertising industry is seasonal in nature, with the fourth quarter usually being the strongest and the first quarter the weakest.
Shares of Perion closed Wednesday down 0.5% at $3.70, with a consensus analyst price target of $5.00 and a 52-week trading range of $2.05 to $4.52. In early trading indications on Thursday, the stock was up 3.8% at $3.84.
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