01 · Challenge
The Challenge
Hayden IR began representing Perion Network on April 16, 2012, to expand its visibility beyond the Israeli investment community to technology-focused investors in the U.S. At engagement the stock was $4.82, the market cap was approximately $48 million and average trading volume was approximately 22,000 shares a day.
02 · Solution
Our Solution
- Positioned the company to attract U.S. investors and set expectations appropriately
- Focused attention on Perion’s acquisition-driven growth strategy, including the 2011 acquisition of SmileBox and the November 2012 acquisition of SweetPacks, and its impact on revenue growth and profitability
- Repositioned the Perion story to highlight the unique niche and audience it targets and its potential for revenue growth, expanding margins and profitability
- Introduced management to approximately 70 U.S. investors
- Targeted U.S. investors at investor conferences, roadshows, one-on-one meetings and conference calls, with roadshows in New York, San Francisco, Boston, Chicago, Philadelphia and Seattle
- Updated investor collateral materials
03 · Impact
The Impact
- Stock rose 159%, from $4.82 at engagement to an all-time high of $12.48 on January 14, 2013, a market cap of $124.8 million
- Institutional holdings rose 244%, from approximately 1.6M shares (March 31, 2012) to 5.5M shares (September 30, 2012), giving founders and early investors additional liquidity
- Trading volume increased 10-fold; on January 8, 2013, Perion traded 3.9 million shares, or 62% of total float
- Needham & Company initiated coverage with a Buy rating and a $14.00 price target; Roth Capital Partners, Chardan Capital Markets and Benchmark Company also cover the stock
- Secured new investment bank-sponsored conference invitations from B. Riley & Co., ThinkEquity, The Benchmark Company, Rodman & Renshaw and Needham & Co.
- Coghill Capital Management, which owned no shares at March 31, 2012, held 578K shares by September 30, 2012
Past results are not indicative of future performance. Figures are as reported in Hayden IR’s case study for Perion Network Ltd. See our disclosures.
