Digital advertising and Internet search company Perion Network anticipates to deliver $158 million in revenue in the third quarter, which is 31% higher than the same period in 2021.

Following the release of preliminary results on Thursday morning that exceeded market expectations, Perion Network’s (TASE: PERI) stock price increased by more than 7% on the Tel Aviv Stock Exchange.

Adjusted EBITDA was even stronger as it increased by an impressive 76% to $31 million. The results are actually better than expected given the market’s weakness for digital advertising and the performance of competitors in this industry.

According to the company’s guidance for the year, overall revenue is expected to increase to $620–640 million, with adjusted EBITDA above $102 million. This would represent a 47% increase over 2021. According to the preliminary third quarter figures, the company’s revenue for the first three quarters was $430 million, and its EBITDA was $82.1 million. As a result of consistently beating expectations, Perion Network will need to report a revenue of $200 million and EBITDA of about $20 million in the final quarter in order to match this year’s projections.

The fourth quarter is traditionally a strong one for the company. This year, in addition to the seasonal festivities, there will also be other advertising-intensive events, such as the midterm U.S. elections. Therefore, it would appear that Perion Network would not have any trouble meeting its revenue guidance and may even exceed its EBITDA projections.

However the CEO Doron Gerstel prefers to stay modest in his comments to the preliminary results: “The real test of a strategy is what happens when the going gets tough. Perion’s diversification strategy has demonstrated the level of predictability and ongoing sustainability of our business, driving strong revenue and EBITDA growth.”

The company’s emphasis on a variety of advertising channels, such as search, social, display, and video, is the diversification strategy Gerstel is alluding to.

He also added the following: “Our innovative technology allows us to gain market share, as advertisers and publishers are looking for higher ROI at these trying times. Our SORT technology — which is built on multi-award-winning AI that leverages the powerful consumer privacy trend, is gaining huge momentum and attracting world-class advertisers like Mercedes.”

To foster customer loyalty, Perion offers SORT, their cookie-free targeting technology, free of charge. Considering that Alphabet’s Google is anticipated to outlaw third-party cookies by 2024, SORT might give Perion a competitive edge.

Perion Network will be publishing its full third quarter report on November 9.