In the age of digital advertising, agencies need innovative ways to stay ahead of the competition. Perion Network Ltd. (Nasdaq:PERI) offers digital advertising solutions to brands, agencies, and publishers by applying their core AI and machine learning technology across all their platforms. They operate in three main “pillars”: ad search, social media, and display/video/CTV, which form a total potential market of more than $300B. In addition, they have a new user loop, using AI and machine learning to deliver optimized advertising to act as a funnel and engage new customers.
Comps: Criteo S.A. (Nasdaq:CRTO), PROS Holdings, Inc. (NYSE:PRO)
We must keep in mind that while all of these companies have a market capitalization of over USD 1 billion, Perion Network and Criteo are advertising agencies and PROS Holdings is an optimization software company. With that being said, Perion Network has the advantage over the other two in earnings per share, price to earnings, profitability, return on equity, and revenue growth year-over-year. Furthermore, they beat the revenue outright of PROS Holdings and hold minimal debt relative to equity.