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Perion Network (Perion Network) Operating Margin %

: 17.93% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Perion Network's Operating Income for the three months ended in Dec. 2023 was $42.0 Mil. Perion Network's Revenue for the three months ended in Dec. 2023 was $234.2 Mil. Therefore, Perion Network's Operating Margin % for the quarter that ended in Dec. 2023 was 17.93%.

Good Sign:

Perion Network Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Perion Network's Operating Margin % or its related term are showing as below:

PERI' s Operating Margin % Range Over the Past 10 Years
Min: 3.65   Med: 8.01   Max: 22.36
Current: 18.22


PERI's Operating Margin % is ranked better than
81.35% of 579 companies
in the Interactive Media industry
Industry Median: 1.34 vs PERI: 18.22

Perion Network's 5-Year Average Operating Margin % Growth Rate was 27.70% per year.

Perion Network's Operating Income for the three months ended in Dec. 2023 was $42.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $135.4 Mil.


Perion Network Operating Margin % Historical Data

The historical data trend for Perion Network's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Perion Network Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.89 3.73 9.12 16.45 18.22

Perion Network Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.64 16.88 19.32 18.59 17.93

Competitive Comparison

For the Internet Content & Information subindustry, Perion Network's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Perion Network Operating Margin % Distribution

For the Interactive Media industry and Communication Services sector, Perion Network's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Perion Network's Operating Margin % falls into.



Perion Network Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Perion Network's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=135.434 / 743.155
=18.22 %

Perion Network's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=41.994 / 234.23
=17.93 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Perion Network  (NAS:PERI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Perion Network Operating Margin % Related Terms

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Perion Network (Perion Network) Business Description

Traded in Other Exchanges
Address
26 HaRokmim Street, Holon, ISR, 5885849
Perion Network Ltd is a technology company. It offers online advertising and searching solutions to brands, agencies, and publishers through desktop, mobile and social channels. Its products and services include Undertone, Codefuel, Make me reach, and Smilebox. The company earns prime revenue from search fees and online advertising services. It operates in the business segment of High Impact Advertising solutions. Geographically, the group has a business presence in North America, Europe, and Other countries of which a majority of the revenue is derived from North America.
Executives
Longview Fund Lp 10 percent owner VIKING ASSET MANAGEMENT LLC, 66 BOVET ROAD, SUITE 320, SAN MATEO, CA 94402