Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 1

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 3
Chunk 1
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ITEM 3.   KEY INFORMATION
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A.   SELECTED FINANCIAL DATA
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Reserved.
 

B.   CAPITALIZATION AND INDEBTEDNESS
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Not applicable.
 

C.   REASONS FOR OFFER AND USE OF PROCEEDS
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Not applicable.
 

D.   RISK FACTORS
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An investment in our ordinary shares involves a high degree of risk since we are subject to various risks and uncertainties relating to or arising out of the nature of our business and general business, economic, financial, legal and other factors or conditions that may affect us. We believe that the occurrence of any one or some combination of the following factors could have a material adverse effect on our business, financial condition, cash flows and results of operations. You should carefully consider risks described below, as well as the other information in this Annual Report, before making an investment decision. We can give no assurance that we will successfully address any of these risks.
 
Risks Related to our Search Business
 
Our search advertising solution depends highly upon revenue generated from our agreements with our search providers. Any adverse change in those agreements could adversely affect our business, financial condition and results of operations.
 
 Our search advertising business is highly dependent on search services agreements with our search providers. There are only a few companies in the market that provide internet search and search advertising services, mainly Microsoft, Google and Yahoo. Such companies are substantially the only participants in western markets, and their competitors do not offer as much coverage through sponsored links or searches. If we fail to quickly locate, negotiate and finalize alternative arrangements or otherwise expedite current operations we have with such alternative search providers, or if we do, but the alternatives do not provide for terms that are as favorable as those currently provided and utilized, we would experience a material reduction in our revenue and, in turn, our business, financial condition and results of operations would be adversely affected.

In previous years, we have been highly dependent on our agreement with Microsoft Irelands Operations Limited. (“Microsoft”). We entered into our first agreement with Microsoft in 2010. In November 2020, we entered into a renewed agreement with Microsoft which became effective on January 1, 2021 and expired on December 31, 2024 (the “Microsoft Agreement”), and which is now in its tail period. The Microsoft Agreement accounted for 35%, 34% and 23% of our revenue, in 2022, 2023 and 2024