Spruce Point releases Perion Network short report, questions financial reporting accuracy By Investing.com

© Perion PR Spruce Level releases Perion Community (PERI) brief report, questions monetary reporting accuracy

Funding analysis agency Spruce Level Capital Administration issued a “Sturdy Promote” ranking on Perion Community (NASDAQ:) Tuesday, citing issues concerning the accuracy of the corporate’s monetary reporting, the efficacy of its product suite, and the sustainability of its progress.

Perion shares are presently down over 2% at $31 per share. Nevertheless, the inventory fell as little as $29.62 earlier within the session following the discharge of the report.

Spruce Level’s report outlines a number of crimson flags it sees concerning Perion’s enterprise, reminiscent of “the way it generates $1.50m and $0.30m of income and EBITDA per worker within the promoting know-how business.”

They state the peer common is $0.53 million and $0.07M, respectively, and its efficiency “places it on par with know-how leaders Apple, Google, Microsoft, and Fb.”

As well as, the short-selling agency says Perion “miraculously generated $233m of cumulative money circulate” since 2020, with “simply $2.2m of complete capital expenditures, $3.6m of PP&E, and know-how and growth expense 3x under business common.”

Lastly, Spruce Level questioned why Perion has “raised $231m of fairness with no clear objective.” The agency concluded that they see a possible 25% to 40% draw back in Perion’s shares.