Perion Network Ltd. (NASDAQ: PERI) a digital media company that helps make the everyday life of 40+ year old second wave adopters easier and more enjoyable, today announced its guidance for 2012.
- Revenue is expected to be $48 - $50 million, representing 30%+ year over year growth
- EBITDA is expected to be $9.5 - $11 million , representing a 20% - 22% EBITDA margin
- Net Income is expected to be $7 - $8 million, representing a 14% - 17% net profit margin
- Smilebox to contribute roughly $15 million in revenue and $2 million in EBITDA
Commenting on the guidance, Mr. Josef Mandelbaum, Perion’s CEO said, “In 2012 we expect our expanded product portfolio to drive significant top line growth and provide us with strong and sustainable profit margins.”
“The acquisition of Smilebox is surpassing our expectations and as a result will be the largest contributor to our growth in 2012. The realization of both revenue and cost synergies are the main contributors to the success of the acquisition to date. The Smilebox product line will generate non-GAAP revenues of roughly $15 million in 2012, compared to approximately $11.5 million in 2011. The increase in revenues, coupled with the improved cost structure, is expected to generate EBITDA of $2 million in 2012, compared to an estimated $1.5 million loss for the full year of 2011. These results will enable us to realize approximately a 7% return on cash utilized for the acquisition in 2012 and double digit annual returns in each subsequent year,” Mandelbaum continued.
Based on preliminary unaudited information, management confirmed that revenues, EBITDA and net income for 2011 will all be in line with previously provided guidance. The $37 million in revenues would represent a 25% year over year growth from 2010. Additionally, while it is premature to report precise numbers, for the fourth quarter, Smilebox will be cash flow positive and appears to be slightly better than breakeven.