Annual Forecast Pushed Perion’s Shares by 20%
8 January, 2013
The internet applications developer estimated Q4 2012 sales of $21 million, and raised its 2013 annual sales forecast to $110 million - up 80% over the previous year
Perion’s stock in Nasdaq has reacted swiftly today after the company announced its forecast for Q4 2013 and 2013 annual sales. Perion said that sales in the last quarter of 2012 are expected to reach atotal $21 million. A few minutes later, the company’s stock soared over 20% to the price of 12.2 dollars for share.
The entire 2012 sales are expected to reach $61 million – an increase of 64% compared to $37 million in 2011. For the year 2013 the forecast sales of $110 million. This is more than 80% growth compared to 2012. Josef Mandelbaum, CEO of the company, explained the good results due to mergers and acquisitions strategy and organic growth of about 25% in 2012.
Perion develops and markets Internet applications for mass market. Its three flagship products are the email platform IncrediMail, the photo sharing service Smilebox and the instant messaging application for Facebook, SweetIM. The company was established in 2000 under the name of IncrediMail, to developed the IncrediMail email program. In August 2012 it bought the US basaed Smilebox for $25 million in cash, plus $15 million if certain milestones will be accomplished in the future.
On November, it acquired the Israeli based SweetPacks which developed the SweetIM suite for $41 million, part in cash ($25 million) and the rest in shares. This acquisition helped it to acquire customer base of 22 million users. Due to the fact that that only a quarter of its growth is organic, its acquisition strategy proved to be successful.