Perion Network Ltd. (Nasdaq:PERI: TASE:PERI) is soaring by about 20% on Nasdaq after it released better than expected third quarter financials today. Non-GAAP third quarter revenue was $87.4 million, 7% higher compared with ClientConnect's revenue of $81.6 million in the third quarter of 2013.
Perion explains that, "In accordance with generally accepted accounting principles (“GAAP”), the acquisition of ClientConnect by Perion, which closed on January 2, 2014, is accounted for as a reverse acquisition. Therefore, Perion is comparing its results to the results of ClientConnect in 2013. The year over year growth described below is attributable to a great extent to the fact that Perion's 2013 results are not included in the results of ClientConnect in 2013."
Net profit on a non-GAAP basis was $26.6 million, or 30% of revenue, compared with $6.1 million, or 7% of revenue at ClientConnect in the third quarter of 2013. The results were ahead of analysts' estimates.
In its guidance, Perion reaffirmed that 2104 non-GAAP revenue will be in the range of $380 million to $400 million, as previously announced. The company raised its guidance for EBITDA, now expected to be in the range of $115 million to $120 million, and for non-GAAP net profit to $90-95 million.
Perion CEO Josef Mandelbaum said, “We remain confident in our strategy, and will use our strong cash position and continued positive cash flow to focus on being the best in class in two main activities: monetization solutions for developers and mobile marketing solutions for advertisers.
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2014
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