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  "documentTitle": "Perion Network Ltd. (PERI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-05-23 00:00:00",
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      "text": "Spruce Point believes there is significant downside risk to PERI’s share price as the Company is signaling financial strain and will have difficulty in hitting lofty growth targets while cash flow is starting to contract and it accrues for severance costs.",
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      "kind": "list",
      "text": "Factors Why Perion's Multiple Should Compress Further: Increasing risks in search business, sustainability of results, revenue misstatements, shareholder misalignment, and governance concerns.",
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      "text": "downside: 25% – 40%",
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      "text": "Spruce Point believes there is significant downside risk to PERI's share price as the Company is signaling financial strain and will have difficulty in hitting lofty growth targets while cash flow is starting to contract and it accrues for severance costs. Given the opacity of PERI's financial disclosures, notably around revenue recognition and server costs, it is difficult to ascertain its \"true\" earnings. However, even assuming Street projections for EBITDA are achieved and that PERI's multiple normalizes to at, or below, its longer-term average for slowing growth, we conservatively estimate 25% – 40% downside risk.",
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      "text": "(1) Includes $54.6m of acquisition payment obligations on the balance sheet. Downside based on current share price of $31.78 and diluted shares in recent proxy st. Source: Company financials, Spruce Point research",
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      "kind": "title",
      "text": "Spruce Point Estimates 25% – 40% Downside",
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