Perion Network, Ltd.
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Research Overview

INDEX:
S&P 500
Sector:
Technology
Position:
Short
Date:
May 23, 2023

After conducting a forensic financial review of Perion Network, Ltd. (Nasdaq / TASE: PERI), an Israel-based global advertising technology company, Spruce Point has concerns about the accuracy of its financial reporting, efficacy of its product suite and the sustainability of its growth. Based on our investigation, we estimate a 25% to 40% downside risk, or $19.10-$23.85 per share.

The report highlights several key concerns with the company, including:

  • Evidence that the company’s search business appears to be under pressure and over-reliant on a Microsoft partnership where revenues appear to be falling below plan while reporting anomalies emerge
  • Multiple concerns with Perion’s revenue reporting and sustainability of recent financial performance
  • A broad range of troubling aspects related to Perion’s recent acquisitions and capital raising practices
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