DATA-DRIVEN AD TECH SOLUTIONS FOR BRANDS & PUBLISHERSCOMPANY DECK

August 2020

1

$333B2019

Global DigitalAd Spend

BIGADDRESSABLEMARKET

2

Source: eMarketer.com 6/2020

ADDRESSABLEMARKET

HUGE $526B2024 FC,

Global DigitalAd SpendTOMORROW

3

Source: eMarketer.com 6/2020

THE GIANTS ARE CONSOLIDATING THE WORLD 65%

4

Source: eMarketer.com 6/2020

ON AD SPENDINGTHE COVID19 IMPACT

According to eMarketer, short-term change in average digital Ad spending due to the Pandemic decreased 25%-35%

Source: eMarketer.com 4/2020

5

6

Perion is well-positioned to capitalize on any shifting budget between3 main pillars of digital advertising

265,470299,537

333,993365,554

391,781411,810

426,124

2017 2018 2019 2020 2021 2022 2023

PERION’S DIVERSIFICATION STRATEGY

Ad Spend ($M)

Source: Statista 10/2019

Search Advertising 45%

Social Advertising 35%

Display Advertising 20%

PERION’SDIVERSIFICATION STRATEGYSEARCH ADVERTISING

VIDEO & DISPLAY

20%

SEARCH42%

SOCIAL MEDIA

38%

7

Online retailers are leading to greater competition in the auction

Improved algorithms accuracy

Direct correlation between search and online purchases.

MARKETTRENDS

8

Source: eMarketer.com 6/2020

Search Ad Spending $MWorldwide, 2019-2024

FOR 10 YEARSA STRATEGIC PARTNER

9

* Microsoft 10K 7/2020** Statcounter.com, 7/2020

963MUNIQUE

GLOBAL VISITORS

144BYEARLY

SEARCHES

18.5%SEARCH SHARE

IN U.S. (PC)**

IN NUMBERS

+1%GROWTH IN REVENUES*

$7.7BIN REVENUESFY2020 YTD*

10

CODEFUELMARKET RECOVERY

11

BEND THE CURVEOUTPERFORM THE BENCHMARK

-2% YoY

12

37.6

34.4 33.3 34.331.6

29.631.0

34.7 35.3

42.344.2

51.8

42.3 41.6

Q1-1

7

Q2-1

7

Q3-1

7

Q4-1

7

Q1-1

8

Q2-1

8

Q3-1

8

Q4-1

8

Q1-1

9

Q2-1

9

Q3-1

9

Q4-1

9

Q1-2

0

Q2-2

0

Based on benchmark -25%

YoY

+10

COLLABORATION WITH CHECK POINT

66

Keywords Data

TrafficValidation

CodeFuel Hosted Search

DataAnalysis

Device GEO ad Unit Channel A/B testing

Search Query

RevenuesOptimization(CPC / RPM)

13

COLLABORATION WITH

14

You Have the Right to Remain Private

73%Of consumers surveyed are more aware of data breaches compared to five years ago

78%said they are taking action to limit the amount of personal information they share online

PRIVADOCO-DEVELOPED BY CODEFUEL AND MICROSOFT

15

Advertising

16

PERION’SDIVERSIFICATION STRATEGYDISPLAY & SOCIAL ADVERTISING

Brands in housing media buying capabilities

Performance marketing growing

Death of the cookie imminent

Continued growth of walled gardens

Creative matters

KEY GUIDING TRENDS

17

FULL FUNNEL– CUSTOMER JOURNEY

18

(RPM) (CPM)

O&O Sites

Personalized Content and

Layout

5-7 minutes

per session

Audience targeting Buying System

Landing Page

Display Ad Units

DisplayTo Search

Cost Per Click

Maximize PPS – Profit Per Session

ADVERTISINGSTRATEGYFull Funnel Attribution Modeling

AdIntelligence Graph (AIG)

(CPA)

19

Action

PredictiveAnalytics

O&O BUSINESS MODEL EVOLUTION

Yield optimization

Platform

Display 2 SearchFormat

CIQAs a Service

CIQAs a Platform

Enhance Synchronized

digital branding

Q2/2020 2021Q3/2020 Q3/2020Q1-Q3 /2020

Establish O&O Network

Externalized ContentIQ servicesTo other publishers (Mini-Site)

CIQ Synergy with CodeFueland Undertone

20

21

18.621.3 21.6

26.423.7

18.7

39.942.4

Q1-1

9

Q2-1

9

Q3-1

9

Q4-1

9

Q1-2

0

Q2-2

0

H1-1

9

H1-2

0

ADVERTISING – KEEPING THE MOMENTUM DESPITE COVID

CONNECTING THE WORLD’S BEST BRANDS & PUBLISHERS WITH AWARD-WINNING CREATIVES

AWARDSPUBLISHERSBRANDS

22

PERION’S TURNAROUND – A THREE PHASES’ APPROACH

Cost optimization Building Tech-Moat Ignite GrowthPhase 1 Phase 2 Phase 3

23

Key Turnaround Financial Optimization Milestone ($M)

24

92.586.2 86.9

77.7

64.6 64.4 62.3 60.7

50.2

40.8 39.7 40.5

31.0

20.8 18.8 16.7 14.6 12.5

-43.7

35.4

Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

Debt Net Cash

Phase 1

In H1 2020 we paid $15M for CIQ acquisition.Total Cash $47.9MTotal Debt $12.5M

Cost optimization

25

33%

28%26% 26%

6% 7% 8%10%

2017 2018 2019 2020

Revenue OPEX R&D

* 2020 revenues and expenses are based on management mid point guidance and analysts’ estimates

Building Tech-Moat

Ignite Growth

274

253261

2017 2018 2019 2020

GROW

TH D

RIVE

RS

ContentIQ / PubOceanAccretive acquisition

Microsoft partnership,Launch of Privado

Synergistic AD solution

Revenues ($M)

26

276-286

27

1. CIQ costs synergy2. Vendors and consultants'

terms renegotiation3. Reduced travel and

marketing expenses4. Reduced rent expenses5. Automation processes to

reduce costs

All the measures we’ve taken resulted in more than $10 million of proforma* cost savings annualized

Proforma Cost-Savings of more than $10M YoY

0.7

1.8

2.6

5.6

R&D

G&A

S&M

COGS

WHAT WE’VE DONE SO FAR:

* - combined financial results of CIQ as if it was acquired at the beginning of 2019.

ADJUSTED EBITDA ($M)2019 - 2020

27

29.6

32.5

7.4

2.5

8.7

11-13

2018 2019 Q2-19 Q2-20 H1-20 H2-20

H2 2020 Guidance

2020GUIDANCE Based on our current

visibility we expect the following results:

28

($M) H1 2020 H2 2020 2020

Revenue $126.4 $150-$160 $276-$286

Adj EBITDA $8.7 $11-$13 $20-$22

www.perion.com29

Appendix

Balance Sheet Overview ($M)

Current Assets 31/12/2019 30/06/2020 Current Liabilities 31/12/2019 30/06/2020

Cash and cash equivalents 38.4 31.0 Current maturities of long-term loans and Convertible debt 8.3 8.3

Restricted cash 1.2 1.2 Accounts payable 47.7 36.6

Short-term bank deposit 23.2 16.9 Accrued expenses and other liabilities 18.4 15.0

Accounts receivable, net 49.1 35.9 Short-term operating lease liability 3.7 3.8

Prepaid expenses and other current assets 3.2 3.3 Deferred revenues 4.2 3.9

115.1 88.3 Payment obligation related to acquisitions 1.0 13.9

83.3 81.5

Non-Current Assets 31/12/2019 30/06/2020 Long-Term Liabilities 31/12/2019 30/06/2020

Property and equipment, net 10.9 8.6 Long-term Debt 8.3 4.2

Operating lease right-of-use assets 22.4 20.7 Long-term operating lease liability 20.4 18.4

Intangible assets, net 2.7 17.2 Payment obligation related to acquisitions - 12.1

Goodwill 125.8 149.2 Other long-term liabilities 6.6 6.0

Deferred taxes & Other assets 6.9 6.5 35.3 40.7

168.7 202.2

Shareholders' Equity 31/12/2019 30/06/2020

165.2 168.3

Total Assets 283.8 290.5 Total Liabilities and Shareholders' Equity 283.8 290.5

30

Income Statement GAAP Basis ($M)

31

Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 2017 2018 2019 2019 2020

Advertising 29.3 33.2 26.2 37.3 18.6 21.3 21.6 26.4 23.8 18.7 134.5 126.0 87.9 39.9 42.4

Search and other 31.6 29.6 31.0 34.7 35.2 42.3 44.2 51.8 42.3 41.6 139.5 126.8 173.6 77.5 84.0

Total Revenues 60.9 62.8 57.2 72.0 53.8 63.6 65.8 78.2 66.1 60.3 274.0 252.8 261.5 117.4 126.4

Customer acquisition costs 31.9 31.1 28.8 36.6 27.4 33.2 34.2 41.1 36.1 36.8 130.9 128.4 135.9 60.6 72.9

Media Margin 29.0 31.7 28.4 35.4 26.4 30.4 31.6 37.1 30.0 23.5 143.1 124.4 125.6 56.8 53.5

% of Revenues 47.6% 50.5% 49.7% 49.2% 49.1% 47.8% 48.0% 47.4% 45.4% 39.0% 52.2% 49.2% 48.0% 48.4% 42.3%

Cost of revenues 6.1 5.8 5.5 6.4 5.8 6.1 6.8 6.9 5.8 4.9 24.7 23.8 25.6 11.9 10.7

Gross Margin 22.9 25.9 22.9 29.0 20.6 24.3 24.8 30.2 24.2 18.6 118.4 100.6 100.0 44.9 42.8

% Gross Margin 37.6% 41.2% 40.0% 40.3% 38.3% 38.2% 37.7% 38.6% 36.6% 30.8% 43.2% 39.8% 38.2% 38.2% 33.9%

Research and development 5.5 4.7 4.4 4.3 4.9 5.6 6.0 6.1 7.2 7.1 17.2 18.9 22.6 10.5 14.3

Selling and marketing 9.7 10.1 8.6 10.5 8.3 8.7 8.6 9.0 9.7 8.2 52.7 38.9 34.7 17.0 17.9

General and administrative 4.3 4.9 3.9 3.4 3.0 3.4 3.6 5.0 3.9 3.6 21.9 16.4 15.0 6.4 7.5

Depreciation and amortization 2.1 2.5 2.5 2.6 2.4 2.3 2.6 2.4 2.4 2.2 16.6 9.7 9.7 4.7 4.6

Impairment, loss of goodwill and intangibles - - - - - - - - - - 85.7 - - - -

Restructuring charges 1.1 0.9 - - - - - - - - - 2.0 - - -

Total OPEX 22.7 23.1 19.4 20.8 18.6 20.0 20.8 22.5 23.2 21.1 194.1 85.9 82.0 38.6 44.3

% of Revenues 37.3% 36.8% 33.9% 28.9% 34.6% 31.4% 31.6% 28.8% 35.1% 35.0% 70.8% 34.0% 31.4% 32.9% 35.0%

EBIT 0.2 2.8 3.5 8.2 2.0 4.3 4.0 7.7 1.0 (2.5) (75.7) 14.7 18.0 6.3 (1.5)

% of Revenues 0.3% 4.5% 6.1% 11.4% 3.7% 6.8% 6.1% 9.8% 1.5% (4.1%) (27.6%) 5.8% 6.9% 5.4% (1.2%)

Financial expense, net 0.6 1.2 1.2 0.8 1.3 1.0 0.4 0.7 - 0.7 5.9 3.8 3.5 2.3 0.7

Tax expenses (benefit) (0.5) 0.6 0.1 2.5 (0.5) 0.4 0.7 1.1 (0.3) (1.0) (8.8) 2.8 1.6 (0.1) (1.3)

Net Income (Loss) 0.1 1.0 2.2 4.9 1.2 2.9 2.9 5.9 1.3 (2.2) (72.8) 8.1 12.9 4.1 (0.9)

% of Revenues 0.2% 1.6% 3.8% 6.8% 2.2% 4.6% 4.4% 7.5% 2.0% -3.6% -26.6% 3.2% 4.9% 3.5% -0.7%

Net Earnings per Share - Basic 0.00 0.04 0.08 0.19 0.05 0.11 0.11 0.23 0.05 (0.08) (2.81) 0.31 0.50 0.16 (0.03)

Net Earnings per Share - Diluted 0.00 0.03 0.08 0.19 0.05 0.11 0.11 0.22 0.05 (0.08) (2.81) 0.31 0.49 0.16 (0.03)

Full year ended, 6 Months ended,

Cash Flow Overview ($M)

32

Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 2017 2018 2019 2019 2020

Operating activities

Net Income 0.1 1.0 2.2 4.9 1.2 2.9 2.9 5.9 1.3 (2.2) (72.8) 8.1 12.9 4.1 (0.9)

Adjustments required to reconcile net income to net cash 14.5 1.9 8.8 (0.6) 12.8 5.5 8.2 5.3 1.2 2.4 108.8 24.7 31.8 18.3 3.5

Net cash provided by continuing operating activities 14.6 2.9 11.0 4.3 14.0 8.4 11.1 11.2 2.5 0.2 36.0 32.8 44.7 22.4 2.6

Investing activities

Deposits and others 5.1 (0.4) (1.6) (4.9) (2.9) 0.6 (10.8) (6.8) 15.4 (9.2) (4.8) (1.8) (19.9) (2.3) 6.3

M&A activity - - - - - (1.2) - - (9.3) (4.5) - - (1.2) (1.2) (13.8)

Net cash provided by (used in) investing activities 5.1 (0.4) (1.6) (4.9) (2.9) (0.6) (10.8) (6.8) 6.1 (13.7) (4.8) (1.8) (21.1) (3.5) (7.5)

Financing activities

Net cash used in financing activities (9.6) (9.5) (3.2) (0.7) (11.7) (10.0) (1.5) (1.5) (0.5) (1.9) (23.9) (23.0) (24.8) (21.7) (2.4)

Effect of exchange rate changes on cash and cash equivalents 0.1 (0.1) 0.1 - (0.1) - - - (0.1) 0.0 0.3 0.1 - (0.1) (0.1)

Net increase (decrease) in cash and cash equivalents and restricted cash 10.2 (7.1) 6.3 (1.3) (0.7) (2.2) (1.2) 2.9 8.0 (15.4) 7.6 8.1 (1.2) (2.9) (7.4)

Cash and cash equivalents and restricted cash at beginning of period 32.7 42.9 35.8 42.1 40.8 40.1 37.9 36.7 39.6 47.6 25.1 32.7 40.8 40.8 39.6

Cash and cash equivalents and restricted cash at end of period 42.9 35.8 42.1 40.8 40.1 37.9 36.7 39.6 47.6 32.2 32.7 40.8 39.6 37.9 32.2

Full year ended, 6 Months ended,

Non-GAAP Adjustments ($M)

33

Reconciliation of GAAP to NON-GAAP Results Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 2017 2018 2019 2019 2020

GAAP Net Income (Loss) from continuing operations 0.1 1.0 2.2 4.9 1.2 2.9 2.9 5.9 1.3 (2.2) (72.8) 8.1 12.9 4.1 (0.9)

Share based compensation 0.6 0.9 0.6 0.6 0.5 0.5 0.7 0.7 1.1 0.8 2.1 2.7 2.3 1.0 1.9

Amortization of acquired intangible assets 1.2 1.2 1.2 1.2 1.0 1.0 1.1 1.0 1.2 1.1 13.0 4.8 4.3 2.0 2.2

Restructuring costs 1.1 0.9 - - - - - - - - - 2.0 - 0.0 -

Retention and other related to M&A related expenses 0.2 - - 0.1 0.3 0.3 0.3 1.4 1.8 1.8 0.2 0.4 2.4 0.6 3.7

Impairment of goodwill and intangible assets - - - - - - - - - - 85.7 - - 0.0 -

Fair value revaluation of convertible debt and related derivative 0.1 0.7 0.3 (0.3) 0.3 (0.2) - - - - 1.2 0.8 0.1 0.1 -

Foreign exchange losses associated with ASC-842 - - - - 0.3 0.2 0.2 - (0.3) 0.2 - - 0.7 0.5 (0.1)

Earnout Financial expenses - - - - - - - - - 0.3 - - 0.0 0.0 0.3

Taxes on the above items (0.3) 0.0 0.0 (0.7) (0.3) (0.2) (0.2) (0.2) (0.1) (0.1) (12.0) (1.0) (1.0) (0.5) (0.2)

Non-GAAP Net Income from continuing operations 3.0 4.7 4.3 5.8 3.3 4.5 5.0 8.8 5.0 1.9 17.4 17.8 21.7 7.8 6.9

Taxes on income (0.1) 0.6 0.1 3.2 (0.2) 0.7 0.9 1.2 (0.3) (0.9) 3.2 3.8 2.6 0.5 (1.1)

Financial expense, net 0.5 0.5 1.0 1.1 0.7 1.0 0.2 0.7 0.3 0.2 4.7 3.1 2.7 1.7 0.5

Depreciation 0.9 1.3 1.3 1.4 1.3 1.2 1.5 1.4 1.2 1.2 3.6 4.9 5.5 2.6 2.4

Adjusted EBITDA 4.3 7.1 6.7 11.5 5.1 7.4 7.6 12.1 6.2 2.4 28.9 29.6 32.5 12.6 8.7

Non-GAAP diluted earnings per share 0.12 0.17 0.16 0.21 0.12 0.17 0.18 0.32 0.17 0.07 0.72 0.65 0.83 0.30 0.24

Full year ended, 6 Months ended,

P&L Non-GAAP ($M)

34

Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 2017 2018 2019 2019 2020

Advertising 29.3 33.2 26.2 37.3 18.6 21.3 21.6 26.4 23.7 18.7 134.5 126.0 87.9 39.9 42.4

Search and other 31.6 29.6 31.0 34.7 35.3 42.3 44.2 51.8 42.3 41.6 139.5 126.9 173.6 77.5 84.0

Total Revenues 60.9 62.8 57.2 72.0 53.8 63.6 65.8 78.3 66.1 60.3 274.0 252.8 261.5 117.4 126.4

Customer acquisition costs 31.9 31.1 28.8 36.6 27.4 33.2 34.2 41.1 36.1 36.8 130.9 128.4 135.9 60.6 72.9

Media Margin 29.0 31.7 28.4 35.4 26.4 30.4 31.6 37.1 29.9 23.5 143.1 124.5 125.6 56.8 53.5

% of Revenues 47.6% 50.5% 49.6% 49.2% 49.1% 47.8% 48.1% 47.5% 45.3% 39.0% 52.2% 49.2% 48.0% 48.4% 42.3%

Cost of revenues 6.0 5.8 5.4 6.4 5.7 6.0 6.8 6.8 5.7 4.9 24.6 23.6 25.4 11.8 10.6

Gross Margin 23.0 25.9 22.9 29.0 20.7 24.4 24.8 30.3 24.2 18.6 118.5 100.9 100.2 45.0 42.9

% Gross Margin 37.8% 41.3% 40.1% 40.3% 38.4% 38.3% 37.8% 38.8% 36.6% 30.8% 43.2% 39.9% 38.3% 38.4% 33.9%

Research and development 5.4 4.6 4.2 4.2 4.8 5.5 5.1 5.7 6.1 6.1 17.0 18.4 21.1 10.3 12.2

Selling and marketing 9.5 9.9 8.4 10.3 8.1 8.6 8.5 9.0 8.7 7.2 52.0 38.1 34.2 16.7 15.9

General and administrative 3.8 4.3 3.6 3.0 2.7 2.8 3.6 3.4 3.2 3.0 20.6 14.8 12.5 5.5 6.1

Depreciation and amortization 0.9 1.3 1.3 1.4 1.3 1.2 1.5 1.4 1.2 1.1 3.6 4.9 5.5 2.6 2.4

Total OPEX 19.6 20.1 17.6 19.0 16.9 18.2 18.7 19.5 19.2 17.4 93.1 76.3 73.3 35.1 36.6

% of Revenues 32.2% 32.0% 30.8% 26.4% 31.4% 28.6% 28.4% 24.9% 29.0% 28.9% 34.0% 30.2% 28.0% 29.9% 29.0%

EBIT 3.4 5.8 5.3 10.1 3.8 6.2 6.1 10.8 5.0 1.2 25.4 24.6 26.9 10.0 6.3

% of Revenues 5.6% 9.2% 9.3% 14.0% 7.0% 9.7% 9.3% 13.8% 7.6% 2.0% 9.3% 9.7% 10.3% 8.5% 5.0%

Financial expense, net 0.5 0.5 1.0 1.1 0.8 1.0 0.2 0.7 0.3 0.2 4.7 3.0 2.7 1.8 0.5

Tax expenses (benefit) (0.1) 0.6 0.1 3.2 (0.2) 0.7 0.9 1.3 (0.2) (0.9) 3.2 3.8 2.6 0.4 (1.1)

Net Income (Loss) 3.0 4.7 4.3 5.8 3.3 4.5 5.0 8.9 5.0 1.9 17.4 17.8 21.6 7.8 6.9

% of Revenues 5.0% 7.4% 7.5% 8.1% 6.0% 7.1% 7.6% 11.3% 7.5% 3.2% 6.4% 7.0% 8.3% 6.6% 5.5%

Net Earnings per Share - Diluted 0.12 0.17 0.16 0.21 0.12 0.17 0.18 0.32 0.17 0.07 0.24 0.65 0.83 0.30 0.24

Full year ended, 6 Months ended,

PERION ADVERTISING STRATEGYTRENDS

PERION PRIVATE WALLED GARDEN FOR BRANDADVERTISING INTENT GRAPH

Brands in housing media buying capabilities

Performance marketing growing

Death of the cookie imminent

Continued growth of walled gardens

Creative matters

KEY GUIDING TRENDS