Hadtech Company productivity Topped analysts’ forecasts in the first quarter reports, and raised its annual forecast for the second time, after showing revenue and earnings growth.
The company, which provides digital advertising solutions that synchronize between search platforms, social networks, websites and smart TVs, grew in the first quarter by 39.5% compared to the corresponding quarter and its revenues amounted to about $ 125 million. Of that amount, advertising revenue totaled $ 68.6 million, a 79.9% jump over the same quarter last year (thanks in part to a Vidazo contribution acquired at the end of 2021), and search revenue rose 9.7% to $ 56.7 million.
According to GAAP, net income was $ 15.5 million, compared to $ 3.3 million in the same quarter last year. After deducting various accounting items, non-GAAP net income was $ 20.7 million, an increase of 197%, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached $ 22.7 million.
During the quarter, Productivity generated a cash flow of $ 23.6 million from current operations and at the end of the quarter it had $ 342 million in cash.
Expects 32% growth in annual revenue
The annual forecast is updated and productivity is now expecting revenues of $ 620-640 million – an increase of $ 10 million from the previous forecast and a growth of 32% compared to 2021. Adjusted EBITDA will reach $ 98-100 million, also an increase of $ 10 million compared to the forecast The previous one, and a figure that reflects growth of 44% compared to 2021.
Doron Gerstel, CEO of Productivity, said: “The strong financial performance in the first quarter stems from the advertising channel diversification strategy, continued investment in innovation, synergistic acquisitions, and the unique ability to connect the supply and demand sides of digital advertising to a single central HUB. Investment in innovation is one of the key factors in the 80% growth in advertising revenue. The increasing use of the SORT technology we have developed allows customers to upload targeted campaigns without the use of cookies, and enjoy a higher return on investment in advertising compared to the use of third-party cookies. “
Gerstel added that Ferion’s ability to connect all advertising channels increased the company’s profit margin, less media costs, to 42% compared to 25% in the same quarter last year. He said, “The consistent increase in revenue and profitability alongside a $ 342 million net cash position is well positioned for continued momentum in its operations. We are ready for the new era of cookie-free campaigns, where privacy awareness will become increasingly important. We have the infrastructure, an experienced team that has proven it. Himself, and financial strength to continue this positive trend. ‘
productivity Traded inNASDAQ And in Tel Aviv worth $ 1 billion, after falling 24.5% from its peak in November but rising by 36.7% in the past year.