Q1 2024 Perion Network Ltd Earnings Call
Operator: Hello, everybody, and welcome to the Perion Network First Quarter 2024 Earnings Conference Call. This conference is being recorded.
Hello, everybody and welcome to the carrier networks first quarter 2024 earnings Conference call. Today's conference is being recorded at the press release detailing financial results is available on the company's website at www dot failure on Dot com before we begin I would like to read the following safe Harbor statement today's discussion.
Operator: The press release detailing the financial results is available on the company's website at www.perion.com. Before we begin, I would 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 20-F that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements anticipated or implied by these forward-looking statements.
Operator: 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 a non-GAAP basis. While mentioning EBITDA, we will 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 also been filed on Form 6-K. Hosting the call today are Tal Jacobson, Perion's Chief Executive Officer, and Maoz Sigron, Perion's Chief Financial Officer. I would now like to turn the call over to Tal Jacobson. Please go ahead.
Includes forward looking statements. These statements reflect the companys current views with respect to sure about 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 20-F that may cause actual results performance.
Or achievements to be materially different at least 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 were you 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 also been filed on form 6K hosting the call today are J, J, <unk>, Chief Executive officer and miles to grow.
Speaker Change: <unk> <unk> Chief Financial Officer, I would now like to turn the call over to Tal Jacobson. Please go ahead. Good morning, and good afternoon, everyone. Thank you for joining US today with me today at our New York Office or a high stack general manager and jazz superiority, who leads our out of home advertising technologies and our.
Tal Jacobson: Good morning and good afternoon, everyone. Thank you for joining us. With me today at our New York office are our high-stack general manager, Andreas Suppliotis, who leads our out-of-home advertising team, and our chief product officer, Kenny Lau, who leads our advertising solution. Our CFO, Maoz Sigron, is joining us from our Israeli office. Today we face our challenges head-on, with a determined spirit to navigate forward.
Tal Jacobson: Chief product Officer, Kenny Lau, who leads our advertising solutions are.
Tal Jacobson: Our CFO Mel I'll see gone he's joining us from our email your office today, we face our challenges head on with a determined spirit to navigate forwards.
Tal Jacobson: As we previously announced, the first quarter of 2024 presented specific challenges, including a decline in our search advertising activity that began during the first quarter and will be mostly reflected in our second quarter. This is largely due to recent changes in advertising pricing and mechanisms by Microsoft. These changes led to a reduction in revenue per thousand searches for both Perion and other Microsoft Bing distribution partners. Let's take a deeper look into what this means. Beran has been working with Microsoft on a revenue sharing model. This model did not change.
Tal Jacobson: As we previously announced the first quarter of 'twenty 'twenty four presented specific challenges.
Tal Jacobson: Notably a decline in our search advertising activity that began during the first quarter and will be mostly reflected from our second quarter. This is largely due to recent changes in advertising pricing and mechanisms by Microsoft.
Tal Jacobson: These changes led to reduction in revenue per thousand searches for both Varian and other Microsoft Bank distribution partners, let's take a deeper look into what this means for us Bill and it's been working with Microsoft on a revenue sharing model.
Tal Jacobson: This model did not change yeah.
Tal Jacobson: Yet both Microsoft and Perion earn their revenue based on how much Microsoft charges their advertisers. This is where the changes were made. It is common for major tech companies such as Microsoft to periodically adjust their pricing strategy. Microsoft Advertising Pricing and Mechanisms do not affect our country.
Tal Jacobson: Yet both Microsoft and Paragon earned their revenue base on how much Microsoft charges their advertisers.
Tal Jacobson: This is where the changes were made.
Tal Jacobson: It is common for major tech companies, such as Microsoft to Bill Yardley adjust your pricing strategies.
Tal Jacobson: Microsoft's advertising pricing mechanism changes do not affect our contract.
Tal Jacobson: You'll notice that despite her announcement about the changes that Microsoft made our search activity actually grew 26% year over year in Q1.
Tal Jacobson: You'll notice that despite our announcement about the changes that Microsoft made, our search activity actually grew 26% year-over-year in Q1. Again, we expect the changes to mostly affect us from Q2 forward, and our new guidance reflects that. We believe that our relationship with Microsoft remains strong with ongoing collaboration between our two companies. This event didn't change Perion's execution abilities and future possibilities. Now, let's move to talk about the future.
Tal Jacobson: Again, we expect the changes to mostly affect us from Q2 forward.
Tal Jacobson: Our new guidance reflects that.
Tal Jacobson: We believe that our relationship with Microsoft remains strong with ongoing collaboration between our teams.
Tal Jacobson: This event Didnt change very on execution abilities and future possibilities now lets move to talk about the future I'm excited to present, the next phase of Paydowns evolution.
Tal Jacobson: I'm excited to present the next phase of Perion's evolution, an advertiser-centric universe with technologies that power brand presence across the entire consumer journey. The Perion universe is built to connect advertisers with their target audience throughout the entire day, online and in the physical world, such as in-store advertising. We harness the power of dynamic creative optimization to generate demand.
Tal Jacobson: And advertisers centric universe with technologies that power brand presence across the entire consumer journey.
Tal Jacobson: And universe is built to connect advertisers with their target audience throughout the entire day online and in the physical world such as in store advertising, we harness the power of dynamic creative optimization to generate demand we use our technologies in web and search.
Tal Jacobson: We use our technologies in web and search supply, in digital out of home, in social, connected TV, and in audio apps. All our technologies are leveraged to create an harmonious blend of consumer engagement. This new chapter of Perion is wrapped in a fresh brand identity. Our new brand reflects our evolution as a company. At Perion, we architect AI-powered technology solutions to anticipate consumer behavior and adjust.
Tal Jacobson: Supply in digital out of home in social connected TV and in audio ads.
Tal Jacobson: All of our technologies, our leverage to create and ammonia is blend of consumer engagement. This new chapter Purion is wrapped in a fresh brand identity.
Tal Jacobson: Our new brand reflects our evolution as a company it's been Aon, we architect AI powered technology solutions to anticipate consumer behavior and adjust to it.
Tal Jacobson: Our AI solutions are designed to help brands and advertisers elevate their strategies and seize every advertising moment. Our new slogan, Elevate with Perion, embodies our commitment to advertisers to stay ahead of the curve. Our objective is to ensure that wherever their audiences are in their journey, Perion is there to elevate their brand and outcome. As Perion keeps evolving, we add more technologies and solutions to our universe, either by acquisitions or through our in-house talented R&D team. Later, you will hear from our Chief Product Officer for Advertising Solutions about the new innovations we have lined up. Well, we at Perion have many growth endeavors.
Tal Jacobson: Our AI solutions are designed to help brands and advertisers elevate their strategies and sees every advertising moment.
Tal Jacobson: Our new slogan elevate with Paragon embodies our commitment to advertisers to stay ahead of the curve.
Tal Jacobson: Our objective is to ensure that wherever their audiences are in their journey Varian is there to elevate their brand and outcome is.
Tal Jacobson: Barry on keeps evolving we add more technologies and solutions to our universe, either by acquisition or through our in house talented R&D teams.
Tal Jacobson: Later, you will hear from our Chief product officer for advertising solutions, but the new innovations, we have lined up well with failure and have many growth engines. We are highlighting for you the fastest growing drivers in each quarter, we've seen significant growth across the key areas.
Tal Jacobson: We are highlighting for you the fastest-growing drivers in each quarter. We've seen significant growth across the key areas. Retail Media Solution grew by 134%. Our CTV advertising surged 108%, and our programmatic digital out-of-home advertising increased by 25% on a Proforma basis. These engines are pivotal in our growth path.
Tal Jacobson: Retail media solution grew by 134%.
Tal Jacobson: Our CTV advertising search 100 at 8% and our programmatic digital out of home advertising increased by 25% on a pro forma basis.
Tal Jacobson: These engines are pivotal in our growth path.
Tal Jacobson: Within retail, we replicated the success that we had with large retailers and grocery in the food and beverage industry. In the first quarter, for example, our technology significantly enhanced the top U.S. beer brands with a cross-channel campaign. We use advanced AI-driven dynamic mapping in high-impact advertising to achieve 14% sales, and we generated nearly half a million dollars in incremental in-store sales. This approach leverages real-time data, such as sporting events, to optimize ad delivery that creates more food traffic to multiple retail locations.
Tal Jacobson: Within retail we replicate the success that we had with large retailers and grocers in the food and beverage industry in the first quarter. For example, our technology significantly enhanced the top U S beer brand with a cross channel campaign view.
Tal Jacobson: We use advanced AI, driven dynamic mapping and high impact advertising units to achieve a 14% sales lift and.
Tal Jacobson: And we generated nearly half a million dollars in incremental in store sales.
Tal Jacobson: This approach leverage real time data such as sporting events to optimize AD delivery that creates more foot traffic to multiple retail locations.
Tal Jacobson: It's important to highlight the strength that HiveStacks brought to our retail media solution. As you can see, the impressive 134% year-over-year growth of our Retail Media Solutions was fueled by both our organic and our new digital out of home advertising. We believe that digital out-of-home will increasingly support the growth of our retail media solutions going forward, within CTV advertising which enjoyed a remarkable 108% growth. This quarter, the most popular features among our customers were live and dynamic. Branded CTV and PAUSE ads. Here's an example of a live CTV ad that we ran for Estee Lauder that was part of an international cross-screen campaign.
Tal Jacobson: It is important to highlight the strength that's highest tax brought to our retail media solutions.
Tal Jacobson: As you can see the impressive 134% year over year growth of our retail media solutions was fueled by both our organic and our new digital out of home advertising solutions. We believe that digital out of home will increasingly supports the growth of our retail media solutions.
Tal Jacobson: Going forward, we then CTV advertising that enjoyed a remarkable 108% growth this quarter. The most popular features among our customers were alive and dynamic CTV branded CTV and pause ads Here's an example of a law.
Tal Jacobson: <unk> CTV AD that we ran for Este Lauder that was part of an international Cross screen campaign.
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Tal Jacobson: We just don't want around dusk.
Tal Jacobson: Okay.
Speaker Change: Hi, guys have it back.
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Speaker Change: I grew up on hand, that's been a huge part of my life for as long as I can remember now and pass along my level.
Speaker Change: A little girl Theres more than one way to get game day ready from early morning, Wakeup call, Hey, Kickoffs after dark I need My luck, all day, I need Mike, Jim Maloney, whether island fans.
unknown: There's more than one way to get game day ready. From early morning wake-up calls to kick-offs after dark, I need my look to last all day. I need my skin glowing. Whether I'm with the fans or the studio. Because as fans, we love this game. I believe every fan and every shade has a story. What's yours?
Tal Jacobson: Because as fast well loved this dang I believe every fan and every chain has a story what's yours.
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Tal Jacobson: Notre Dame David.
Tal Jacobson: This specific campaign shows that the consumer's journey constantly changes with the current trend of cosmetic companies advertising during football. Within digital out-of-home advertising, we achieve a remarkable 25% year-over-year growth. This success demonstrates the strategic value of our recent acquisition of High, This acquisition unlocks revenue potential, especially retail media revenue, from retailers that leverage programmatic digital out-of-home advertising technology to attract consumers to their stores. To elaborate on our digital out-of-home advertising activity and success, I'll hand it over to Andres, the founder and general manager of HypeSmart, who's leading our out-of-home advertising.
Tal Jacobson: Three weeks what are the three with this specific campaign shows that the consumers' journey constantly changes.
Tal Jacobson: With the current trend of cosmetic companies.
Tal Jacobson: Appetizing during football offense within digital out of home advertising, we achieve a remarkable 25% year over year growth.
Tal Jacobson: This success demonstrates the strategic value of our recent acquisition of high stack.
Tal Jacobson: This acquisition unlocks revenue potential, especially retail and media revenue.
Tal Jacobson: From retailers that leverage programmatic digital out of home advertising technology to attract consumers to their stores to elaborate on our digital out of home advertising activity and success.
Undress: Over to undress, the founder and general manager of high stack Who's leading our out of home advertising activities. Thank.
Undress: Thank you child.
Andres: So, out-of-home advertising is the oldest traditional media channel undergoing a massive renaissance that is being helped by advanced technology. As digital screens replace printed signs, and programmatic technology eventually complements direct sales, the stage is set for a massive upside for the rise of programmatic digital advertising. A recent eMarketer study in the United States suggests that 30% of all digital out-of-home advertising transactions will be programmatic by 2025, while 70% will be non-programmatic. That's an awesome growth story for programmatic digital at home. When we observe that it represented only 3% in 2019,
Undress: Out of home advertising is the oldest traditional media channel undergoing a massive renaissance that is being helped by advanced technology.
Undress: As digital screens replace printed signs and programmatic technology eventually complements direct sales the <unk>.
Undress: Stage is set for a massive upside for the rise of programmatic digital out of home.
Undress: A recent E marketer study in the United States suggests that 30% of all digital out of home advertising transactions will be programmatic by 2025, while 70% will be non programmatic.
Undress: That's an awesome growth story for programmatic digital out of home when we observe that it represented only 3% in 2019.
Andres: This represents a whopping 969% growth over six years, and it's not stopping. Extrapolating this trend line could suggest that programmatic digital out-of-home is on track to represent about 50% of all digital out-of-home transactions in five years. From a marketer's perspective, this growth is driven by technological advances afforded by programmatic digital at home on how to reach precise audiences at scale for compelling digital experiences. Perion's HiveStack advanced technology sits at the epicenter of this massive growth story and is used by marketers globally to drive business outcomes at all stages in the consumer sales cycle.
Undress: This represents a whopping 969% growth over six years and its not stopping extrapolating. This tread line could suggest that programmatic digital out of home is on track to represent about 50% of all digital out of home transactions in five years.
Undress: From a marketers perspective this growth is driven by technological advances afforded by programmatic digital out of home on how to reach precise audiences at scale to compelling digital experiences.
Undress: Purion high stack advanced technology sits at the epicenter of this massive growth story and is used by marketers globally to drive business outcomes at all stages in the consumer sales funnel.
Andres: Retailers, in particular, are taking advantage of programmatic digital out-of-home technology to drive consumers into their retail stores, which is now part of Perion's Retail Media Solution universe. Let's look at a real-life case study of how an awesome Canadian brand, Lululemon, used Perion's HiveStack platform and their agency, Zenith, to drive in-store visitation to their retail stores. Lululemon was looking to drive brand awareness and increase...
Undress: Retailers in particular are taking advantage of programmatic digital out of home technology to drive consumers into their retail stores, which is now part of Purion <unk> retail media solution universe.
Undress: Let's look at our real life case study of how an awesome Canadian brand Lulu Lemon use purion high stack platform and their agencies zenith to drive in store visitation to their retail stores.
Andres: Lululemon was looking to drive brand awareness and increase in-store traffic in key cities across Germany. A strategy was developed to promote two products, the Lululemon Shorts and the Performance Leggings. The Shorts campaign used custom audience and location targeting to drive impactful reach and engagement. With core Lululemon buyers through outdoor screens in relevant environments, screens along marathon event routes in Munich and Berlin were used to promote performance leggings to audiences when receptivity would be at an all-time high.
Undress: And then with marketing to drive brand awareness and increase in store traffic in key cities across Germany.
Undress: Our strategy was developed to promote two products Lulu Lemon short and the performance lagging.
Undress: The shorts campaigns custom audience and location targeting to drive impactful reach and engagement with corn, Lulu lemon buyer through outdoor screens and relevant environments screens, a long marathon event routine Munich, Berlin, where he used to promote performance lagging to audiences when receptivity would be at an all time high.
Undress: Thanks to its ability to optimize the campaigns in real time.
Andres: Thanks to its ability to optimize the campaigns in real time, Lululemon continued to run ads throughout the year via the HiveStack platform. The campaign exceeded core objectives, resulting in over 4,000 walk-ins. A brand lift study also recorded a 640% increase in brand image, a 208% increase in interest, and a 314% increase in football trash, showing programmatic digital out-of-home's ability to make all the right moves.
Undress: The lemon continued to run ads throughout the year by the Hi Tech platform.
Undress: The campaign exceeded core objectives, resulting in over 4000 Watkins our brand lift studies also recorded a 640% increase in brand emits a 208% increase in interest.
Undress: And a 314% increase in footfall traffic.
Undress: Selling programmatic digital out of home is ability to make all the right moves.
Undress: Yes.
Undress: As you can see we have become a key part of little lemons toolbox to drive in store visitation and the measurement data proves that digital out of home drives results.
Andres: As you can see, we have become a key part of Lululemon's toolbox to drive in-store visitation, and the measurement data proves that digital at home drives recovery. I want to thank Tal and Perion for adding Hivestack's advanced technology and our amazing team to the Perion universe. The best is yet to come for programmatic digital at home, and Perion's HiveStack is a global leader in this space and sits at the epicenter of it all.
Undress: I want to thank Tao and Purion for adding high stacks advanced technology, and our amazing team to the Purion universe. The best is yet to come for programmatic digital out of home and Purion High stack is a global leader in this space and sits at the epicenter of it all.
Undress: Thank you Andreas exciting time indeed.
Kenny Lau: And now, our Chief Product Officer of Advertising Solutions, Kenny Lau, will present two of our new and exciting innovations.
Undress: Now our chief product officer of our advertising solutions, Kenny Lau will present, two of our new and exciting innovations. Good morning, and good afternoon, everyone. Today I'd like to share some of the exciting things, we're developing internally to equip our customers with the most comprehensive set of products.
Kenny Lau: Good morning and good afternoon, everyone. Today, I'd like to share some of the exciting things we are developing internally to equip our customers with the most comprehensive set of products and solutions in the ever-evolving digital advertising space. As we prepare for Cochlear's future, we seek to prioritize user privacy while enhancing accuracy in targeting, and we've been doing so with SORT, our AI-based audience segmentation technology for our high-impact and video advertising campaigns. Now, this award-winning technology is getting a major upgrade. Soar 2.0, which has more capabilities for the web, but even more exciting, it is now also for CTV.
Kenny Lau: <unk> solution in the ever evolving digital advertising space.
Kenny Lau: As we prepare for a cookie less future, we seek to prioritize user privacy, while enhancing accuracy in targeting and we've been doing so with sort our AI based audience segmentation technology for high impact and video advertising campaigns now.
Kenny Lau: Now This award winning technology is getting a major upgrade SAR two data, which has more capabilities for web, but even more exciting. It is now also for CTV one of the fastest growing areas in digital advertising.
Kenny Lau: One of the fastest growing areas in digital. What does that mean for advertisers and brands? So 2.0 technology offers privacy-focused targeting, ensuring that your brand connects with the most receptive audience for your message regardless of the browser or device preference, analyzes non-personal identifiable information. At the moment, someone lancing on that, and then immediately classified them into the most likely intangible.
Kenny Lau: What does that mean for advertisers and brands saw two level technology offers privacy focus targeting and showing that your brand connects with the most receptive audiences for your message regardless of their browser or device preferences.
Kenny Lau: So analyze it non personal identifiable information signals at the moment someone Lansing our network.
Kenny Lau: And then immediately classifies them into the most likely in tank group.
Kenny Lau: This allows us to serve the most relevant ad, maximizing engagement and return on investment. It is not just about reaching more viewers; it's about reaching the right audience with the right message while respecting their privacy. Alongside our proprietary solution, SORT, we have developed WAVE, our AI-based dynamic audio technology to bring unparalleled precision to audio ads. We are proud of the progress our Wave Audio Ads technology has made, delivering personalized audio experiences that drive engagement and sales. This quarter, we expanded our ways to reach into new verticals, including CPG, quick service restaurant, and travel.
Kenny Lau: This allow us to serve the most relevant at maximizing engagement and return on investment.
Kenny Lau: It is not just about reaching more viewers, it's about reaching the right audiences with position while respecting their privacy.
Kenny Lau: Alongside our proprietary solutions sort, we have developed with our AI based dynamic audio technology to bring unparalleled position to audio ads.
Kenny Lau: We are proud of the progress our wave audio AD technology has made delivering personalized the audio experiences that drive engagement and sales.
Kenny Lau: This quarter, we expanded waste reach into new verticals, including CPG quick service restaurant and travel. Moreover, we are thrilled to announce the launch of waves multi language capabilities signed with Spanish listless.
Kenny Lau: Moreover, we are thrilled to announce the launch of WAVE's multi-language capability. Sign with Spanish. Let's listen to a sample of Super Shoes and remember this is not a real person, all generative AI, and you wouldn't know the difference. Preparate para la primavera en tu aldea.
Kenny Lau: Let's listen to our sample for Super shoes, and remember this is not a real person.
Kenny Lau: It's all generally if AI and you wouldn't know the difference.
Kenny Lau: Get ready for spring in your local Albany Super Shoes. Take a look at the latest styles, from light and comfortable sneakers to your favorite sandals and everything else. And here you have something that will make your day even happier. Enjoy a 20% discount on selected products, whether you buy online or in the store. Find your essential spring items at Super Shoes today and save on everything you need.
Kenny Lau: The parallel Primavera and dwell Bunny super choose to look at.
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Tal Jacobson: Thank you, Kenny. It's always a pleasure to see our AI team producing groundbreaking products for our Now, I'm proud to share our recent industry recognition and certification. Perion has been granted two tax certifications for 2024, symbolizing our unwavering commitment to integrity and quality in digital advertising. These awards and industry recognitions reflect our team's hard work and our commitment to excellence. They are proof of what Perion is capable of achieving. Thank you once again for joining us. We're excited about the future and invite all of you to continue with us on this promising journey. And now, our CFO, Maoz Sigron, will present the financial results for Q1.
Speaker Change: Thank you Kenny it's always a pleasure to see our AI team producing ground breaking product for our customers.
Speaker Change: Now I'm proud to share our recent industry recognition and certification Varian has been granted to tax certification for 'twenty 'twenty four.
Speaker Change: Bill I think our unwavering commitment to integrity and quality in the digital advertising space. These awards and industry recognitions reflect our team's hard work and our commitment to excellence.
Speaker Change: There are proof of what Purion is capable of achieving thank you once again for joining US today, we're excited about the future and invite all of you to continue with us on this promising journey.
Speaker Change: And now our CFO, most seaborne will present the financial results for Q1.
Most Seaborne: Thank you good afternoon, and good morning to those of you joining us from the U S.
Maoz Sigron: Thank you, Tal. Good afternoon, and good morning to those of you joining us from the U.S. As Tal mentioned, the first quarter was a challenging one. We experienced a decline in search advertising activity that is attributed to changes in advertising prices, a new mechanism that Microsoft is implementing in its search distribution market. These changes in pricing strategies affected all Microsoft's distribution partners. Our relationship with Microsoft remains strong.
Most Seaborne: As Todd mentioned, the first quarter was a challenging one.
Most Seaborne: We experienced a decline in theaters it doesn't activity that is attributed to changes in advertising prices and new mechanism that Microsoft being implemented and its third distribution marketplace.
Most Seaborne: These changes and pricing strategies.
Most Seaborne: That all Microsoft with solution partners.
Most Seaborne: Our relationship with Microsoft remains strong.
Most Seaborne: And as a result of Microsoft changes and to a limited extent a reduction in video activity will reduce the 'twenty 'twenty four full year guidance in our announcement on April eight.
Maoz Sigron: As a result of Microsoft's changes, and to a limited extent, a reduction in video activity will reduce the 2024 full-year guidance we announced on April 8. We at Perion have a history of meeting challenges. We are resilient and agile; we continuously focus on enhancing our growth engines, which include retail media, CTV, and digital out-of-phone. Thanks to Perion's assets, technology, know-how, and expertise, along with our core growth engine, I am confident that our team will take Perion to the next successful growth chapter.
Most Seaborne: We at <unk> have a history of meeting challenges, we are resilient and agile we continuously focus on enhancing our growth engine, which include retail media CTV and digital out of home.
Most Seaborne: Thanks to Purion assets technology, Knowhow and expertise along with our core growth engine.
Most Seaborne: I am confident that our team will take purion to the next successful growth Jeff to moving to the first quarter main financial highlights revenue increased by 9% year over year to $157 8 million.
Maoz Sigron: Moving to the first quarter, the main financial highlights. Revenue increased by 9% year over year to $157.8 million. Adjusted EBITDA decreased by 35% year-over-year to $20.3 million, resulting in a 13% adjusted EBITDA margin and 34% extract margin. Gap net income decreased by 51% to $11.8 million. Cash flow from operations decreased by 61% to $6.9 million.
Most Seaborne: Adjusted EBITDA decreased by 35% year over year to $28 million.
Most Seaborne: So thinking and 13% adjusted EBITDA margin and 34% ex Tac margin.
Most Seaborne: GAAP net income decreased by 51% to $11 8 million.
Most Seaborne: Cash flow from operations decreased by 61% the $6 9 million net debt slightly increased over the previous quarter to $479 7 million revenue for the first quarter was $157 8 million, an increase of 9% year over year.
Maoz Sigron: Net cash slightly increased over the previous quarter to $479.7 million. Revenue for the first quarter was $157.8 million, an increase of 9% year-over-year. This growth was achieved despite a 52% decrease in video and is the result of our ability to execute our diversification strategy. While search advertising grew by 26% year over year, we expect revenue to decline next quarter due to the changes to Microsoft Bing pricing strategies, as we discussed earlier. Revenue from advertising solutions decreased by 5% year over year to 75.8 million and accounted for 48% of total revenue.
Most Seaborne: This growth was achieved despite a 52% decrease in video and is the result of our ability to execute our diversification strategy.
Most Seaborne: While our search advertising grew by 26% year over year, we expect revenue to decline next quarter due to the changes to Microsoft Bank pricing strategies as we discussed earlier revenue from advertising solutions decreased by 5% year over year, the $75 8 million and accounted for 48%.
Most Seaborne: Total revenue the year over year decrease in revenue was a result of continuous declines in video revenue and was partially offset by significant year over year increase of our growth engine.
Maoz Sigron: The year over year decrease in revenue was a result of a continuous decline in video revenue and was partially offset by a significant year over year increase in our growth engine. Our CTV business grew by 108% year-over-year to $8.2 million, representing 11% of advertising solutions revenue, compared with 5% last year. And it was driven by strong customers' adoption of our high-impact CTV solutions.
Most Seaborne: Our <unk> business grew by 108% year over year to $8 2 million, representing 11% of advertising solutions revenue compared with 5% last year and it was driven by strong customer adoption of our impacted the solution.
Maoz Sigron: Digital Autoform grew by 25% year-over-year on a per-forma basis to 9.7 million. We are also happy with the consistent growth delivered by our written-media verticals, which grew by 134% year-over-year to $14.9 million and accounted for 20% of advertising solutions revenue, compared with 8% in the same period last year. These results were driven by new customers and increased spending of existing customers. Edited by The Positive Progress We Are Making to Introduce New Products and New Technology Revenue from Search Advertising increased by 26% year-over-year in the first quarter to $82 million. During the quarter, average daily searches increased by 20% over the same period last year, and the number of publishers grew by 8% year over year.
Most Seaborne: Digital out of home grew by 25% year over year on a pro forma basis to $9 7 million.
Most Seaborne: We're also happy with the consistent growth delivered by our retail media vertical wells.
Most Seaborne: <unk> grew by 134% year over year to $14 9 million accounted for 20% of advertising solutions revenue.
Most Seaborne: Compared with 8% in the same period last year.
Most Seaborne: This result, while they're in and by new customers and increased spending of existing customers aided by the positive focus we are making to introduce new products and new technology revenue for the search advertising and increased by 26% year over year in the first quarter to 82 million during the quarter.
Most Seaborne: Nevertheless, daily searches increased by 20% over the same period last year.
Most Seaborne: And the number of publishers grew by 8% year over year.
Maoz Sigron: While having a relatively minor impact on revenue in the first quarter, we expect the changes recently instituted by Microsoft Bing to significantly impact sales advertising revenue in the second quarter and throughout 2025. Contribution excluding tax to revenue was 38% compared with 45% in the first quarter last year, mostly due to a shift in product mix and higher revenue share for some of our search publishers in the first quarter of 2024. Adjusted EBITDA decreased by 35% year over year to 20.3 million, or 13% of revenue, from 22% in the first quarter of 2023 and 80% in the first quarter of 2022. The decrease in adjusted EBITDA was mainly a result of the reduction in self-advertising activity during the quarter and higher operation expenses following the integration of IFP.
Most Seaborne: While having a relatively minor impact on revenue in the first quarter. We expect the changes recently instituted by Michael something the significantly impacted advertising revenue in the second quarter and throughout 2024.
Most Seaborne: The abuse and excluding conduct to revenue or 38% compared with 45% in the first quarter last year, mostly due to shifts in product mix and higher revenue share for some of our search publishers in the first quarter of 2020 full adjusted EBITDA decreased by 35% year over year to 20.
Most Seaborne: <unk> 3 million or 13% of revenue from 22% in the first quarter of 2023 and 80% in the first quarter of 2022. The decrease in adjusted EBITDA was mainly a result of the reduction in sales activity during the quarter and I have operation expenses following the intake.
Most Seaborne: We identify stick.
Maoz Sigron: Adjusted EBITDA to contribution x-stack decreased to 34%, compared with 84% in the first quarter of 2023 and 42% in the first quarter of 2022. On a gap basis, first quarter net income decreased by 51% to $11.8 million or $0.24 cents per diluted share, compared with $23.8 million or $0.48 cents per diluted share in the first quarter of 2022. On a non-gap basis, net income decreased by 25% to $22.6 million, or $0.44 per diluted share, for the first quarter, compared with $29.9 million, or $0.60 per diluted share, last year.
Most Seaborne: Adjusted EBITDA contribution of ex Tac decreased to 34% compared with 84% in the first quarter of 'twenty 23, and 42% in the first quarter of 2022 on a GAAP basis first quarter net income decreased by 51% to $11 8 million Oh full center diluted share compared with.
Most Seaborne: $23 8 million or 48 into the shale in the first quarter of 2023.
Most Seaborne: On a non-GAAP basis net income decreased by 25% to $22 6 million or <unk> 44 cents per diluted share for the first quarter compared with $29 9 million or 60 cents a share last year operating cash flow for the first quarter was $6 9 million compared with $17 8 million.
Maoz Sigron: Operating cash flow for the first quarter was $6.9 million, compared with $17.8 million in the same period last year. The decrease in operating cash flow was mainly attributed to the reduction in search advertising activity and one-time working capital needs for the i-STEC operation.
Most Seaborne: In the same period last year the decrease in operating cash flow was mainly attributed to the reduction in search advertising activity and one time working capital needs for the <unk> operation.
Maoz Sigron: We are proud of our consistent ability to generate positive cash flow and to increase our net cash position despite the challenges we are facing. As of March 31, 2024, net cash, including cash, cash equivalents, short-term deposits, and marketable securities, was $479.7 million, up from $472.7 million at the end of the fourth quarter of 2022. The increase in cash and cash equivalents was the result of the positive operating cash flow generated in the quarter.
Most Seaborne: We are proud of our consistent ability to generate positive cash flow and to increase our net cash position. Despite the challenges we are facing as.
Most Seaborne: As of March 31st 2020, full net cash, including cash equivalents short term deposits and marketable securities was $479 7 million up from $472 7 million at the end of the fourth quarter of 2023, the increase in cash and cash equivalents was there.
Most Seaborne: All of the positive operating cash flow generated in the quarter consistent with our previous announcement. We are confident that there is diversified and holistic solutions will expand our opportunities to better serve our customers.
Maoz Sigron: Consistent with our previous announcement, we are confident that Perion's diversified and holistic solutions will expand our opportunities to better serve our customers. We are reiterating our full year 2024 guidance that we provided on April 8th, adding guidance to the second quarter of 2024 as well. This concludes my financial overview, and now we'll open the line for questions. Thank you.
Most Seaborne: We are reiterating our full year 'twenty 'twenty four guidance that we provide the right relate added guidance to the second quarter of 'twenty 'twenty four with them. This concludes my financial overview and now we will open the line for questions.
Operator: Thank you. We will now be conducting a question and answer session. If you would like to be placed in the question queue, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. Once again, that's star number one to be placed into the question queue. Our first question today is coming from Max Michaelis from Lake Street Capital. Your line is now live. Hey guys.
Speaker Change: Thank you, we'll now be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for.
Max Michaelis: Hey guys, thanks for taking my questions. First one for me:
Most Seaborne: For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one once again Thats star one to be placed in the question queue.
Most Seaborne: Our first question today is coming from Maxim <unk> from Lake Street Capital. Your line is now live.
Max Michaelis: If we look at video revenue, I think it was down 33% last quarter and down 52% here in Q1. Internally, where had you guys expected that to end up? And then, I guess, going forward, what are your expectations for the year just for video revenue? And then I guess you can tie in a macro question with that as well. Have you seen any improvement in the macro here, maybe in the
Maxim: Hey, guys. Thanks for taking my questions first one for me.
Maxim: If you look at video revenue was down 33% last quarter.
Maxim: 52% here in.
Maxim: Q1, we're internally where had you guys expected that to end up and then I guess going forward. What is your expectations for the year just for video revenue and then I guess you can tie in macro question with that as well if you've seen any improvement in the macro maybe in the second quarter.
Maxim: Yes.
Maoz Sigron: Well, maybe you want to take this? Yes, of course. Thank you for the question.
Speaker Change: Maybe you want to take this.
Maoz Sigron: As we said, the end of video is expected to end in the second quarter this year, so we're expecting to move to normal growth in Q3. So we have another quarter of a negative comparison between 24 and 23, and we're expecting H2 to move to be a positive one. We are moving with the market. As we said, historically, there is a reason why video is moving down. The idea here is optimization, and we believe that this impact will end at the end of this quarter or the second quarter.
Speaker Change: Yes of course.
Speaker Change: Thank you for the question and as we said the as at the end of the video is expected to end in the second quarter.
Yes: This year, we're expecting to move to a normal growth.
Speaker Change: Q3, so we have another quarter of a negative comparison between 'twenty four to 'twenty, three and we expect to engage students to move to be a positive one.
Speaker Change: We are moving with the market as we've said historically.
Speaker Change: There is a reason why.
Speaker Change: Moving down the idea here is optimization and we believe that this impact will.
Speaker Change: We'll end it.
Speaker Change: At the end of the end of this.
Speaker Change: This quarter over the second quarter.
Speaker Change: Yes.
Max Michaelis: Okay, thanks guys. And then my last question here. I know you guys increased the buyback authorization last quarter. But were you guys active at all in
Speaker Change: Okay. Thanks, guys and then my last question here.
Speaker Change: I know you guys.
Speaker Change: Increase the buyback authorization last quarter were you guys active at all in Q1 or have you been.
Speaker Change: Hmm.
Speaker Change: So.
Maoz Sigron: So the buyback is yet in process. We, as we said, first filed the 20F. So now we don't have any problem, and we can move on with the plan. But as we need to file the plan when we are open, and we are not in the blackout period, which is going to be this weekend, so next week we are going to file a plan which will be executed two weeks later. So we are expecting this plan to start at the end of May, and we are going immediately to start the buyback plan in the quarter already. I believe that when we get to the end of the quarter and we will share the results, you will see the buyback take place in our...
Speaker Change: Buyback is yet.
Speaker Change: In process.
unknown: [inaudible]
Speaker Change: He said.
Speaker Change: Got it.
Speaker Change: It's been filed so now we don't have any.
Speaker Change: Problem and who can move on with it then but.
Speaker Change: We need to find the plan when we are open and we are not in a blackout period.
Speaker Change: Just going to be this weekend. So next week, we are going to find a plan, which will execute two weeks later or so we're really expecting this trend to stop at the end of May and we are going to immediately to stop the buyback plan.
Speaker Change: In the quarter already I believe that when we will get to the end of the quarter.
Speaker Change: We'll share the results you will see already the buyback.
Speaker Change: Now in our balance sheet.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Yes.
Jason Stuart Helfstein: Thank you. The next question today is coming from Jason Helfstein from Oppenheimer. Your line is now live.
Speaker Change: Thank you. Your next question today is coming from Jason <unk> from Oppenheimer. Your line is now live.
Speaker Change: Hi, This is Steve roaming on for Jason.
Steve Roman: Hi, this is Steve Roman on behalf of Jaeson. So just first on SORT2, was just wondering if you've broadly launched that to all of your CTV advertisers or whatever percentage, and then wondering if you can give any metrics in terms of who, you know, how many advertisers are using it, etc. And then secondly, on High Stack Growth, you guys posted a 25% pro forma. I'm just wondering if this is in line with or exceeding your expectations. And what do you think of the full year in terms of digital out of form? Thank you.
Steve: So just first on sort to was just wondering if you've broadly launched that to all of your CTV advertisers or whatever percentage and then wondering if you can give any metrics in terms of who you know how many advertisers using it et cetera, and then secondly on high stock growth.
Steve: You guys posted 25% pro forma just wondering if this is in line or exceeding your expectations and what do you think on a full year in terms of digital out of home. Thank you.
Unknown Executive: Right, so let's start on SORT 2.0. We are just launching it now. So this is getting shipped out today, and obviously, we don't have the results yet. But, you know, the big news here is it got a major upgrade with all the new technologies for, the new formats of Qt Less, and obviously the audience segmentation for CTV, which is huge. Once it's out, and we're going to have more metrics, we'll be happy to share them.
Speaker Change: Alright.
Speaker Change: Let's start on the sort to point out we are just launching it now.
Speaker Change: So this is a.
Speaker Change: Getting shipped out today.
Speaker Change: So obviously, we don't have the results yet.
Speaker Change: But the Big news here is it got a major upgrade with all the new technologies for.
Speaker Change: The new formats of Coke less and obviously the audience segmentation for CTV, which which is huge.
Speaker Change: Once once it's out and we're going to have more metrics that we'd be happy to share that.
Speaker Change: Hum.
Speaker Change: What was the other one.
Speaker Change: The second question was I can I can take it was about <unk>.
Unknown Executive: What was the other one? The second question was, I can take it, about iFTECH. So yes, this is a really exciting quarter. This is the first time we have iFTECH in the pool. And this is definitely aligned with our expectation, as we shared with the KPIs. They are in the ending quarter with 25% year-over-year growth, which is very much aligned with our expectation. We're expecting to end the year with more or less our original model, not a dramatic change. This is Q1, and we're expecting more to come in the next quarter.
Speaker Change: This is really exciting quarter. This is the first time we have.
Speaker Change: Sticking in full and this is definitely aligned with our expectation as we shared with the Kpis.
Speaker Change: Yes.
Speaker Change: In the quarter was 25%.
Speaker Change: Was there much in line with our expectation we are expecting to end the year with.
Speaker Change: More or less.
Speaker Change: Our regional model.
Speaker Change: Nonetheless exchange. This is Q1 and we're expecting more to come in the next quarter.
Speaker Change: Thank you. Our next question today is coming from Mark Kelley from Stifel. Your line is now live.
Unknown Executive: Thank you. The next question today is coming from Mark Kelley from C4. Your line is now live.
Mark Patrick Kelley: Great, thanks. Good morning, everyone.
Mark Patrick Kelley: Great. Thanks, good morning, everyone.
Mark Patrick Kelley: First question just on.
Mark Patrick Kelley: First question, just on..., with cookie deprecation getting pushed out again to 25 on Chrome, does that provide, I guess, a little bit of cushion in the back half of this year, especially for the non-search business? Or is that not the right way to think about it? And second one, just going back to Hivestack. A few weeks ago, we saw that Lamar chose Vistar to power their digital billboards. Stack up relative to Vistar, you know, maybe they were looking for something that the high-stack suite of products didn't offer. I guess what's the right way to think about that? And, you know, were you a part of that RFP process? Thank you.
Mark Patrick Kelley: As cookie deprecation getting pushed out again to 25 on chrome does that provide.
Mark Patrick Kelley: I guess, a little bit of cushion in the back half of this year or.
Mark Patrick Kelley: Especially for the non search business or is that not the right way to think about it.
Mark Patrick Kelley: One just going back to <unk>.
Speaker Change: Hi stack.
Mark Patrick Kelley: A few weeks ago, we saw that Lamar shows.
Mark Patrick Kelley: The startup power their digital Billboards I'm, just curious how does your tech.
Mark Patrick Kelley: Back up relative to the star.
Mark Patrick Kelley: They were looking for something that the <unk> suite of products didn't offer I guess, what's the right way to think about that then.
Mark Patrick Kelley: Were you a part of that RFP process. Thank you.
Unknown Executive: Yeah, well, thank you very much for the question. So cookie list.
Speaker Change: Yeah, well. Thank you very much for the question so cookie less.
Unknown Executive: Yeah, I think, you know, the fact that Google keeps pushing this back, for me, it's no, it's not a surprise. But you know, we were ready for the cookieless era two years ago. And now, as time goes by, more and more technologies are coming out to address that. So we want to make sure that we're ready for that, whenever my Google finally decides to do that. So we're going to be perfectly ready, and we are perfectly ready now.
Speaker Change: I think the.
Speaker Change: The fact that Google keeps pushing this back.
Speaker Change: For me it sounds surprise.
Speaker Change: But we were ready for the calculus era, two years ago, and now as time goes by more and more technologies are coming out to.
Speaker Change: To address that so we want to make sure that we're ready for that.
Speaker Change: When ever my Google finally decide.
Speaker Change: To do that so we're going to be perf.
Speaker Change: Perfectly ready and we are perfectly ready now.
Unknown Executive: Now, in terms of VSTAR, you know, for everything we've been hearing from our clients, high-stack is the most advanced solution out there. That's what we're hearing, and that's what we believe, and obviously, you know, VSTAR. Those guys are great.
Speaker Change: Now in terms of <unk>.
Speaker Change: Anything we're we've been hearing from our clients high stack at the most advanced solutions out there.
Speaker Change: Is what we're hearing is what we believe.
Speaker Change: Uh huh.
Speaker Change: And obviously the stars.
Unknown Executive: We know we know them very well. You know, they're a competitor. So they're getting some deals. We're getting some deals. This is just the nature of the business, but from everything we know, our technology is the most advanced technology out there.
Speaker Change: Those guys are great. We know we know them very well.
Speaker Change: You know they are a competitor.
Speaker Change: Theyre getting some of that some deals were getting some deals.
Speaker Change: This is just the nature of the business, but.
Speaker Change: Our technologies.
Speaker Change: Everything we know it's the most advanced technology out there.
Speaker Change: Okay. Thank you very much.
Speaker Change: Okay.
Operator: Thank you. As a reminder, that's star number one to be placed in the question queue. Our next question is coming from Laura Martin from Niedermann Company. Your line is now live.
Speaker Change: Thank you as a reminder, that star one to be placed in the question queue. Our next question is coming from Laura Martin from Needham <unk> Company. Your line is now live.
Laura Anne Martin: Good morning, good morning. I'm thinking about the overall context of demand from a vertical point of view. Are you, can you talk about what you're seeing in the marketplace right now, please?
Laura Anne Martin: Good morning, good morning.
Laura Anne Martin: When thinking about the overall context of the demands Hum.
Laura Anne Martin: From a vertical point of view are you can you talk about what youre seeing in the marketplace right now please.
Laura Anne Martin: Yeah.
Laura Anne Martin: from a vertical point of view.
Laura Anne Martin: From the vertical point of view.
Unknown Executive: Yeah, I have strong verticals.
Speaker Change: Yeah strong verticals.
Unknown Executive: Yeah, well, do you have that article? Yes, of course.
Speaker Change: Yeah.
Speaker Change: Most of you have that.
Unknown Executive: Of course, yes, I can, I can take that. Thank you. Thank you, Laura. And good morning.
Speaker Change: This growth is like and I can take that thank.
Speaker Change: Thank you. Thank you Laura and good morning.
Unknown Executive: So, we, you know, I, Laura, so the same trend, as you say, I can say from the financial, from the press that retail is, let's say, very strong. Consumer goods, as well, travel is strong, health care, and cars are strong. These are the areas that are more dominant in
Speaker Change: Hi.
Speaker Change: So the same trend as you can see it from the financials from the breadth of the retailers is that they are very strong for us.
Speaker Change: Oh good.
Speaker Change: One is the strong <unk> and <unk>.
Speaker Change: <unk> is strong.
Speaker Change: The area that are more dominant in Q1.
Speaker Change: Okay. That's interesting because that's exactly the opposite of what double verify said yesterday, so that's super interesting okay.
Laura Anne Martin: Okay, that's interesting because that's exactly the opposite of what Double Verify said yesterday. So that's super interesting. Okay. And when you think about yourself,
Speaker Change: And when you think about you.
Speaker Change: Sorry go ahead.
Unknown Executive: No, I agree. It's interesting that this is different from what others are reporting, but this is the nature of this.
Speaker Change: No I agree it's interesting that this is different from what others are reporting but this is the major.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Yeah.
Laura Anne Martin: Yeah, and then in terms of your expense growth, G&A was, you know, sort of much higher than we thought, but sales and marketing were much lower than we thought. So could you talk about that sort of reallocation of resources between the cost lines, why money is moving towards G&A and away from sales and marketing, please?
Speaker Change: Then in terms of your expense growth.
Speaker Change: He was.
Speaker Change: Sort of much higher than we thought, but sales and marketing, which much slower than what we thought.
Speaker Change: Could you talk about that sort of reallocation of resources.
Speaker Change: Between the cost lines why money is moving towards <unk> and away from sales.
Speaker Change: Sales and marketing please.
Unknown Executive: This is more related to the GAAP numbers and less to the non-GAAP. There are some stock-based compensation adjustments that we did in the quarter that are part of the GAAP. The non-GAAP is very normal and in line with our trends. This is more accounting changes that we did in the SBC during the quarter and not more than that.
Speaker Change: In the quarter. This is more of this.
Speaker Change: It is more related to the gift number then lifted and only get in there.
Speaker Change: Some stock based compensation that.
Speaker Change: The adjustment that we did in the quarter.
Speaker Change: That's all part of the GAAP to non-GAAP is very normal in line with our plan.
Speaker Change: This is more accounting changes that we did and this is during the quarter and was more than that.
Laura Anne Martin: Okay, this is super helpful. Thank you.
Speaker Change: Okay Super helpful. Thank you.
Operator: Thank you. Thank you. Our next question today is coming from Jeff Martin from Roth MCAM. Your line is now live. Thanks. Good morning.
Speaker Change: Alright. Thank you. Our next question today is coming from Jeff Martin from Roth I'm Kim Your line is now live.
Jeffrey Michael Martin: Thanks, good morning guys. I wanted to touch on search a little bit more. What specifically is the mechanism that changed at Bing and how has that affected your publisher count in Qt?
Jeffrey Michael Martin: Thanks, Good morning, guys wanted to touch on search a little bit more what specifically is the mechanism that changed that thing and how has that affected your publisher count in Q2.
Jeffrey Michael Martin: Right so.
Unknown Executive: So Microsoft changed the mechanism of pricing for distribution channels. And the reason it affected our publishers is that, at the end of the day, it all needs to make economic sense for them. I mean, they have other options, right? They can switch between vendors, they can do whatever they want. And this is exactly what happened.
Jeffrey Michael Martin: Microsoft changed.
Jeffrey Michael Martin: <unk> mechanism of pricing for distribution channels right.
Jeffrey Michael Martin: In the way the rethink it affected our publishers.
Jeffrey Michael Martin: At the end of the day, it all needs to make economic sense for them.
Jeffrey Michael Martin: Have other ops.
Jeffrey Michael Martin: Their options right. They can switch between vendors. They can we can do whatever they want.
Jeffrey Michael Martin: And this is exactly what happened.
Unknown Executive: Does that give you the answer? Yeah, sure. What's the publisher count change so far in Q10? So we, you know, we
Speaker Change: Does that help Dan Swisher.
Dan Swisher: Yes sure.
Dan Swisher: What's the publisher count change so far in Q2.
Speaker Change: So you.
Dan Swisher: I cannot disclose disclose Q2 numbers, yet, but we did disclose that.
Unknown Executive: disclose Q2 numbers yet. But, you know, we did disclose that although the average was high, we actually saw growth. We're at the end of the quarter where we actually saw a decline. So, Again, numbers for Q2 are going to be reported.
Jeffrey Michael Martin: Although the average was was high.
Jeffrey Michael Martin: We actually saw growth.
Jeffrey Michael Martin: Yeah.
Jeffrey Michael Martin: Towards the end of <unk>.
Jeffrey Michael Martin: Of the quarter, we actually saw a decline so.
Jeffrey Michael Martin: Again numbers of Q2, we're going to be reported in three months from now.
Speaker Change: Fair enough, but and then in terms of importance.
Unknown Executive: Fair enough, but and then in terms of work, let me just add one more thing, but it's important to say that the guidance that we gave already took that into consideration, right?
Jeffrey Michael Martin: And when we think but it's important to say that the guidance that we gave.
Jeffrey Michael Martin: Already took that into consideration.
Jeffrey Michael Martin: So.
Jeffrey Michael Martin: This is.
Jeffrey Michael Martin: This is already what you see.
Unknown Executive: This is already what you see in front of you.
Jeffrey Michael Martin: In terms of guidance.
Jeffrey Michael Martin: And then in terms of capital allocation, you've got the 75 million authorized for repurchase. Has there been activity in the past month or so since you made the pre-release announcement? And then what's the potential to increase that amount over time? Do you plan to be aggressive in buying back shares?
Jeffrey Michael Martin: And then in terms of capital allocation, you've got the 75 million authorized for repurchase has there been activity.
Jeffrey Michael Martin: In the past month or so since you made the pre release announcement and then what's the potential to up that materially over time do you plan to be aggressive in buying back shares.
Jeffrey Michael Martin: As I said the buyback plan is not yet.
Jeffrey Michael Martin: Third we are expecting to start in the.
Jeffrey Michael Martin: More or less two weeks from now.
Unknown Executive: As we said, the BiPEC plan is not yet started. We're expecting to start it in more or less two weeks from now. This is part of the regulations and the other requirements that we have.
Jeffrey Michael Martin: Now.
Jeffrey Michael Martin: This is Basel regulations and.
Jeffrey Michael Martin: And the requirements that we have.
Jeffrey Michael Martin: The first is the funding of the asset.
Unknown Executive: First is the filing on the 20th, and second is a period that we need to wait after we file the plan, but we're expecting to execute the plan this quarter. And we are running with a 75 million plan, and this is very much aligned with what we said a few weeks ago about the preliminary from M&A. You know, we have the same plan, the same structure. We know what we are looking for, and once we get the right opportunity, we will do it.
Jeffrey Michael Martin: If you have that we need to wait after they were filing the plan that we expected.
Jeffrey Michael Martin: And then this quarter and we are aligning with a 75 million. Glenn This is very much aligned with what we said a few weeks ago when the preliminary.
Jeffrey Michael Martin: No.
Jeffrey Michael Martin: St Vincent's lock Joe Yeah, we know what we're looking for and once we get the right opportunity.
Jeffrey Michael Martin: We will we will do that this is very much aligned with ours.
Unknown Executive: This is very much aligned with our high-level view on the cash that we have so far. One is the BiPEC, which has already been announced, and second, of course, is the M&A effort, which is, of course, relevant to what we're expecting to do next with the cash.
Jeffrey Michael Martin: I live in view on the cash profile.
Jeffrey Michael Martin: One is the buyback or the analysis second reported the M&A effort, which is of course.
Jeffrey Michael Martin: Relevant.
Jeffrey Michael Martin: Two what we are expecting to do next with it.
Speaker Change: Thank you.
Speaker Change: Yeah, Let me just I'll.
Speaker Change: I just got an answer for my team about the previous question.
Speaker Change: Why we start got a deal with Lamar so it turns out that the more actually owns part of the store.
Speaker Change: So there was no RFP there.
Unknown Executive: Let me just, I just got an answer from my team about the previous question, why Vistar got to deal with Lamar. So it turns out that Lamar actually owns part of Vistar. So there was no RFP. That was just part of the opening.
Speaker Change: That was just part of the ownership.
Unknown Executive: Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to management for any further or closing comments.
Speaker Change: Thank you we've reached end of our question and answer session I'd like to turn the floor back over to management for any further or closing comments.
Speaker Change: Yeah. Thank you. Thank you everyone for joining us today and thank.
Tal Jacobson: Thank you. Thank you, everyone, for joining us today. And thank you for being part of our journey. Even though we've seen a big change lately, we are confident in our future. We're investing in technology, we're investing in our clients, and we have all the resources needed to succeed. So thank you again, and I hope to see you again at our next learning conference.
Speaker Change: Thank you for being part of our journey.
Speaker Change: Even though we saw.
Speaker Change: A big change lately, we are confident in our future.
Speaker Change: <unk> technology and <unk>, our clients and we have all the research resources needed to succeed. So thank you again and I hope to see you again in our.
Speaker Change: Our next earnings call. Thank you.
Operator: Thank you. That does conclude today's teleconference webcast, and we disconnect your line at this time. Have a wonderful day. We thank you for your participation today.
Speaker Change: Thank you that does conclude today's teleconference. Webcast. You may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.
Speaker Change: Goodbye.