Perion Network NASDAQ: PERI is positioning its Perion One platform as an AI-enabled layer designed to help advertisers manage campaigns across a fragmented digital advertising market, Chief Executive Officer Tal Jacobson said during a Canaccord Genuity discussion.
Jacobson said advertisers are seeking better visibility into campaigns that run across multiple platforms, channels, creative formats and audience segments. Perion’s strategy is to use artificial intelligence to analyze campaign data, identify inefficiencies and provide recommendations intended to improve media investment outcomes.
“We’re actually building a layer above those platforms with AI that can help you run across everything smoothly, and then get the insights,” Jacobson said. He described the broader digital advertising industry as a large but complex market in which advertisers have been frustrated by the difficulty of understanding performance across platforms.
Growth in Perion One Channels
Jacobson highlighted growth in spend through Perion One and several of its newer offerings during the company’s second quarter. He said Perion One spend increased 15% year over year, while retail media spend rose 60%, connected TV, or CTV, increased 56%, and digital out-of-home spending grew 45%.
Outmax, Perion’s AI-driven cross-channel optimization technology, posted growth of more than 130%, according to Jacobson. He said the company measures adoption primarily through customer spending on its products.
Outmax is intended to assess campaign performance across channels, creatives, audiences and key performance indicators, then recommend changes such as adding a platform, shifting budgets or removing a creative asset. Jacobson said the product has shown a “land and expand” dynamic, in which clients begin using it at a smaller scale and increase spending over time.
The company also launched Ask Perion, an agentic interface that allows clients to interact with the platform, submit campaigns, seek optimization recommendations and review campaign results. Jacobson described Ask Perion as the customer-facing interface and Outmax as the underlying engine.
Looking ahead, he said Perion expects to continue adding channels and cited potential future additions including ChatGPT, Gemini and Snapchat. The company is also working to deploy Outmax on platforms including ChatGPT and Google Shopping, according to the discussion.
Agency Agreements and Channel Expansion
Perion recently signed two strategic agreements tied to a large agency following months of testing across different key performance indicators, campaigns and creative formats, Jacobson said. The company expects the agreements to begin making a material financial contribution late in the third quarter.
Jacobson said the extended testing process demonstrated that Perion’s technology could perform across platforms and channels. While such agreements may be difficult to close, he said the complexity and testing requirements create a higher barrier to entry for competitors. Perion believes the model can be replicated with additional clients.
Digital out-of-home remains Perion’s largest channel. Jacobson said the company completed an integration with Best Buy Canada and is operating technology for the retailer’s in-store inventory. He said Perion sees in-store media as a growth opportunity because it allows advertisers to reach consumers near the point of purchase.
Perion is connected to more than 1.6 million screens in over 40 countries, Jacobson said, though the company does not own those screens. Its goal is to continue expanding the network so advertisers can access screens globally through its platform.
CTV is also among Perion’s fastest-growing products, Jacobson said. He noted that the product was developed organically and said Perion’s cross-channel approach can support CTV activity across services and platforms such as YouTube, Disney, Hulu and HBO. The company believes its ability to reallocate activity among channels could support additional growth.
In retail media, Jacobson said Perion is pursuing both online and physical-store opportunities. He said the company acquired out-of-home capabilities because it views the channel as a key component of physical retail media, particularly for reaching consumers before and during store visits.
Outlook, Profitability and Capital Allocation
Jacobson said Perion narrowed its full-year contribution ex-traffic-acquisition-cost guidance at the upper end while maintaining adjusted EBITDA guidance at the midpoint. He attributed expected second-half improvement to the newly signed agency agreements and the company’s normal seasonality, noting that revenue and EBITDA have historically been weighted toward the second half of the year.
The company reaffirmed its 2028 targets, including Perion One spend compound annual growth of at least 25%, contribution ex-TAC growth of at least 20%, and adjusted EBITDA margin of 28%.
Jacobson said achieving the margin target would depend on growth, operating leverage and AI-driven efficiencies. As revenue expands, he said Perion does not expect headcount to need to rise at the same pace because AI tools can take on more operational work. Ask Perion is also being used internally for certain company tasks, he said.
On capital allocation, Jacobson said Perion expects to complete its existing $200 million share repurchase authorization by year-end, after repurchasing roughly $167 million of stock. He said the company remains disciplined on acquisitions and is focused on assets that could strengthen CTV, retail media, digital out-of-home and cross-channel activation through Outmax.
Jacobson characterized Perion’s search business as stable and profitable despite its transition away from Microsoft. He said the company intends to sustain the segment and use its profits to support investment in growth businesses or share repurchases.
In terms of advertiser verticals, Jacobson said Perion is seeing healthy growth in commerce, healthcare and travel. He added that political advertising has not historically been a significant factor for the company.
About Perion Network (NASDAQ:PERI)
Perion Network Ltd. NASDAQ: PERI is a digital advertising technology company that offers a suite of solutions designed for both brand marketers and performance-driven advertisers. The firm's platform integrates search monetization, programmatic display, video and connected TV (CTV) advertising to help clients reach and engage audiences across desktop, mobile and television environments. Through proprietary algorithms and AI-driven tools, Perion's technology optimizes ad placements in real time, aiming to boost campaign efficiency and return on investment for publishers and advertisers alike.
Key offerings include search engine marketing services that cover major platforms such as Google and Bing, native and display advertising solutions under its Undertone brand, as well as social and video ad formats.
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