Perion Network 
PERI reported second-quarter results marked by growth in its Perion One platform and newer advertising channels, while overall revenue and contribution ex-TAC declined amid continued softness in open-web advertising and promotional pricing for customer acquisition.
Chief Executive Officer Tal Jacobson said the company’s strategy has centered on diversifying away from the open web and building its capabilities in connected TV, retail media and digital out-of-home advertising. He said those channels outpaced the broader market during the quarter, while the company’s Outmax AI agent recorded triple-digit year-over-year spend growth.
Total spend increased 9% year over year to $194.7 million in the second quarter. Spend on Perion One, the company’s unified advertising platform, rose 15% to $156.7 million and represented 80% of total spend, compared with 76% a year earlier.
Growth Engines Outpace Legacy Advertising Segments
Chief Financial Officer Elad Tzubery said CTV spend grew 56% year over year to $17.7 million, while digital out-of-home spend increased 45% to $87.7 million. Retail media spend rose 60% to $59.4 million. Outmax spend increased 136% year over year on a pro forma basis, according to the company.
Those gains were partly offset by ongoing weakness in open-web advertising. Revenue fell 5% year over year to $98.2 million, while total contribution ex-TAC declined 11% to $42.3 million. Perion One contribution ex-TAC was $34.9 million, down 4% from the prior-year period, but accounted for 83% of total contribution ex-TAC, up from 76% a year earlier.
Tzubery attributed the decline in Perion One contribution ex-TAC primarily to promotional terms used to win new accounts and increase spending from existing customers. During the question-and-answer session, Jacobson said the company conducted a number of test campaigns during the first half that carried low margins. Management expects take rates to normalize over time and modestly improve in the…