Right, perion.com. Before we begin, I'd like to read the following safe harbor statement. Today's discussion includes forward-looking statements. These statements reflect the company's current views with respect to future events. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including those discussed under the heading "Risk factors" and elsewhere in the company's annual report on Form 20-F that may cause actual results, performance, or achievements to be materially different and any future results, performance, or achievements anticipated or implied by these forward-looking statements. The company does not undertake to update any forward-looking statements to reflect future events or circumstances. As in prior quarters, the results reported today will be analyzed both on a GAAP and non-GAAP basis. While mentioning EBITDA, we will be referring to adjusted EBITDA.
We have provided a detailed reconciliation of non-GAAP measures to their comparable GAAP measures on Form 6-K, which has been filed and is available on our website as well. Hosting the call are Doron Gerstel, Perion's Chief Executive Officer, Maoz Sigron, Perion's Chief Financial Officer, and Daniel Slivkin, Vidazoo's Chief Executive Officer. I will now turn the call over to Doron Gerstel. Please go ahead.
Hi, everyone. Good morning. Thanks for joining this special conference where we're announcing the acquisition of Vidazoo Video Monetization System. Let's get started. Okay. My presentation today is divided into three parts. At the beginning, I want to take you a little bit back and talk about why video. Probably you have an idea where we are going. Second is why Vidazoo, and the third part, we'll talk a lot about the synergy for Perion. With why video. All in all, it always start with the consumer trend, and those are facts that we're taking from Social Media Week from beginning of 2021, where they did quite a survey as far as comparing the consumer engagement to video versus text, and you see the numbers, and I will read it for you.
88% more time spent on website with video, and no doubt that we are in this age that video is very much way more preferred by consumer when they are reading content, which is based on video or exposed to any kind of advertising. Talking about advertising, I think the reaction from advertising is definitely there. As you can see from the number, this is a digital video advertising spend in the U.S. between 2019 and prediction to 2023. We talk about the CAGR of almost 20% year-over-year, and you definitely see the number. This is the fast-growing format when it comes to digital advertising. Clearly, advertising are reacting on consumer preference. The next trend, which I very much would like to see, is from the publisher standpoint.
What we found out that this is very interesting, where publishers are struggling, not all of the publisher, because those publisher, at this point, there is a massive video advertising market concentration, which is very much among the largest, most prominent publisher and broadcaster, where more than 60% of the pie of ad spend is going with them. What is the need from the others, which is tier 2 and tier 3? Large, but not as large, that they're all looking for a simple, highly scalable plug-and-play video solution. There is a need, from a product-market-fit standpoint, this is what publisher is looking for, which leads me very much into why Vidazoo. From why Vidazoo, first and foremost, give you the big picture and looking about the Perion high-impact video suite spend or video suite advertising dollars between 2020 and 2021.
We basically see that for 2020, we did the $20 million. The number is growing, and this is expected to be $47 million in 2021, which is reflecting the growing direct demand that we're getting from a large advertiser for our solution, which is high-impact video suite. At the right side is the Vidazoo, and this is the Vidazoo number from 2020 to 2021, which is reflecting the publisher side of the equation, and they are selling more and increasing it to more publishers that looking for this plug-and-play video monetization platform.
What Perion is looking for, Perion is looking for access to direct video ad supply, and Vidazoo is looking to access to direct video ad budget, which can be a very happy marriage because this is quite a complementary acquisition because if we're looking about growing our business, as we can see in the 2020 to 2021 and beyond, and we have here high aspiration to grow our business, we definitely need this direct video ad supply. At the same time for Vidazoo, that when they are looking about growing their business, the fact that we're able to expose their publisher to a direct quality demand, and I will talk about it at large in a second, that's complementing, and that creates a huge growth for both sides of the equation.
Perion and Vidazoo. First of all, the positioning statement of how the two is going to position into the market the day after. For the first time, we can say, on one side to our advertiser, which are brand and agency, and on the other side to publisher, that we are offering an end-to-end solution. An end solution for advertiser and publisher. The most important part is the other part of my sentence, that we're eliminating all existing intermediators. The fact that we're eliminating them gives us a huge benefit. Aside of our own way, that we are basically cutting the middleman and able to improve our operational cost and reduce our media cost, put this a bit aside for a second, most and foremost it's for our customer.
Brand and agency are able to get, via this end-to-end platform, way better control on their ad spend, both from quality, scalability, and transparency, because it all comes from one platform that is coming from one vendor. Second, scale. One of the things that has really helped Perion scale its video business has to do with high-impact video suite, as I mentioned before. We reached the point that in order to increase and create more engagement between user and our ad units, require an intimate relationship, for instance, with the video player or video monetization platform. In this way, using Vidazoo existing pub network will really help us to achieve greater scale for high-impact video to their publisher network and able, as I mentioned before, to have better control on the quality of those videos.
The quality. Unique on-page integration tech allows control and transparency, both advertiser and publisher. We touched this one, and I will definitely demonstrate it on the technology that Vidazoo is bringing into the table. If the technology is right, definitely the team is right. As I mentioned, Daniel is with us. They are three co-founder, Daniel, Gal, and Roman, which established Vidazoo seven years ago. Daniel is on the call with us. Daniel, would you like to say a few words?
Yes. Hi to everyone. My name is Daniel Slivkin. I'm one of the original co-founders, this was definitely a ride of 7.5 years that, as a bootstrap company, we were always seeking for the right partner for us among the years. The opportunity is definitely huge for us with Perion, as Vidazoo wants to become the largest global video monetization platform. In order to do that, we needed a partner that can actually help us to drive the vision forward at large scale. With the Perion available business units and the resources and business connections, we will definitely be able to deliver products at a grand scale, as we could only dream before as a private company.
Thank you, Daniel. Let's move on. We are still with the why Vidazoo. We have a picture here. Their headquarters in Tel Aviv, and this is the team. Most of it are technology people, as you can see here. From a tech standpoint, Daniel, you definitely can talk about those three factors that we mentioned in our press release. Please go ahead.
Yeah, sure. Maybe just to explain more about what our technology is doing. Our technology is very unique because it allows every publisher without video knowledge or resources or tech to quickly create and syndicate relevant video content through our online video player, that later obviously can be monetized with video ads and add new incremental revenue from TV budgets. Our technology basically divided to several products. I would say, each one of them have their own entity and life. The first and the most crucial one is the online video player. The publishers don't have this technology. They need to license this technology and pay a lot of money for it.
Vidazoo provides a service where you can just implement the code, and then we will create, in real time, any placement, any video you need that publisher desires, that will immediately can be monetized with our ad marketplace, which is the second product. The yield management, that is basically a very sophisticated ad server that behind the scenes can control and automatically optimize all of the programmatic demand, direct demand, to eventually optimize and deliver the highest payouts to the publisher from the TV budgets. Doron, can you please? Yeah. As I mentioned, the robust marketplace is what the publisher sees in the platform, how much money he made. Also, we have a content marketplace that if a publisher doesn't have a production resources or their own video content.
They can easily choose any category of videos through our marketplace of content creators and easily create a playlist, implement it on their site, and then just monetize it with pre-roll ads that's coming from our marketplace. Then they just go to the platform and see how much money they made every day from the video views and the video ads. This technology is basically, just to sum everything up, is the wire plug that connects TV budgets that are being shifted very quickly in the last eight years or so from linear TV, to digital publishers. We allow this at a very quick and plug-and-play solution, as Doron mentioned, at high scale to every publisher worldwide.
Great. Thanks so much. The numbers are right. What you see here, from a numbers standpoint, those are the numbers of Vidazoo 2020- 2021. You're able to look at it from a revenue perspective as well as from adjusted EBITDA. From a revenue perspective in 2020, the revenue was $31.9 million. They expected to finish 2021 with $45 million. That reflect 41% growth year-over-year. The numbers are even more impressive when it comes to EBITDA, $4.3 million in 2020 and $8 million in 2021, which reflect 86% growth year-over-year. Numbers are not just revenue and EBITDA. I think that we are impressed with the fact that their technology is being installed on 1,000 publisher worldwide.
The interesting part is the ability to track. We will share with you the data as it comes in the next calls that we have, as far as how they're deploying their spend on video with the Vidazoo platform. We are working on two efforts. One, increase the base of the pyramids, which is the number of publisher. Second, looking about this publisher as a revenue unit that is going to consume more and more video from the Vidazoo monetization platform. They were working with 20+ advertising aggregated companies. 80% of the revenue are from U.S. advertisers and user. For us, we were looking for a company which have, develop what we like to call it as the SY technology moat, when it comes to this product.
The deal is right. I mentioned to you in, it was our investor calls, analyst investor calls at the beginning of the year when we did our follow-on and raised money that we are looking definitely to use the money that we raised for acquisition. We put here a few criteria when it comes to this acquisition. First, we said it need to be a product market fit, and I think we cover it in depth here because it's from the advertiser that moving spend so much into video, from a publisher standpoint, that looking for a plug and play from the fact that it provide a technology that create a differentiation in the marketplace. That was only the first and the second criteria of what we're looking at. The other one was we basically stated that it need to be immediately accretive deal for Perion.
Yes, it's immediately accretive deal from their Perion Network. The second, the core criteria that we basically said has to do very much with the structure. We believe on this structure, where a third of the overall deal, the transaction is providing in cash and the other two third is an earn out. We are doing it, and this is the fourth transaction that we are doing in this way, in a very successful way. We are measuring this success by the fact that the acquired team is highly motivated and engaged for us, in this case, till the end of 2023. All in all, because we have a joint goal, and our joint goal is to achieve a $33.2 million of EBITDA of Vidazoo. In this case, we will able to pay the earn out in full.
We believe that this is the right form or right framework of transaction that has to do with the acquisition that we're doing. Why Perion and Vidazoo? If we cover the why video, and then we talked a lot about the Vidazoo side, let's now look at it together into one point of view. This is our hub and spoke model, which I shared with you in the past. The new addition, and hope you're able to see my cursor. The new addition is this, the Vidazoo logo here, but let's take it here. The left side of the hub and spoke has to do with the demand side of it. The right side has to do with the supply as you basically see it. Here within the circle is our asset. Our asset, they're divided into two.
Asset that has to do with demand asset and asset that has to do with supply asset. This is very much the framework. Within this framework, we are able to add more and more assets to this equation, which is left side of it and right side of it. At the middle is the most important thing, which has to do with the intelligent hub. Internally, we looked at it as a smart routing. I will talk about its value in a second, but it's basically able to give you kind of an air control tower of all demands that is coming from here to the right supplies here. This is a very important thing. I mentioned it when we talked about eliminating all intermediators between the demand side, between our customer brand and agencies, and Bing as well, to the right side, the publisher.
Here we able to develop, that's the end-to-end. We able to connect the left side, the demand, the brand and agency, with their advertising campaign, all the way to either own publisher, content publisher asset. In this regards, our own O&O and the mini site, the Newsweek of the world that we're working with, as well as the network of publisher. This network of publisher is network of publisher that we are working with, hundreds of publisher, and additional publisher that Vidazoo is working with. All together, we are expanding our reach and make this circle bigger and bigger, which gives us more and more opportunities to increase the revenue. When it comes to the value of it, I want to talk about three levels of values that we see by enhancing our hub and spoke. Not in any specific order, but those are our main interests.
Those are our KPI. One has to do very much of increased operational efficiency. When you are looking about the intelligent hub, there are a lot of shared services that we are operating here, shared services from the demand side, as well as shared services for the supply side, which allows us, in a way, to be way more efficient operationally, which has to do of reducing our OpEx, on OpEx to revenue, something that I'm sharing all the time when we're doing our IR presentation. The next value item is reduced media cost. Reduced media cost is definitely one of the most important thing for Perion as an advertising, as an ad tech company. We are reducing this media cost by having this smart routing, by having it closing the loop.
We close the loop, and in this way, we close the loop because we are serving more and more demand that we're getting here from our customer with our internal asset. Now with Vidazoo, we don't need to use others in order to serve those video format as we did before. Daniel mentioned it, if it has to do with the player, it has to do with video monetization platform. It's all being done in-house. Closing this loop provide us way better opportunity to reducing media cost. Last but not least, which I think is the most important thing, is that we increase the customer value. That's actually creating this flywheel that we all talked about. Why it's creating this flywheel?
At the end of the day, the customer here understand that the fact that we are providing it an end-to-end type of solution, they spend more. If they spend more, our publisher is getting more, this definitely serve the purpose in creating a great flywheel that allows us to get, as I said, more campaign and more budget because they definitely see the value. Other dimension into this value is a huge investment that we're doing because other than the smart routing, we're able to see and capture data that is coming from all our asset, if it's the left side or the right side, but in a way, this data is serving to better target audience in any given campaign. No doubt that customers start and realize the value of our hub-and-spoke model.
Last but not least, this all together has to do with us providing a revised guidance. This revised guidance is first and foremost for the remaining of 2021. That has to do with the acquisition. What you're able to see here, that was the previous guidance. We increased the guidance, from a midpoint of $422.5 million-$437.5 million. That's on the revenue side. That's reflecting 33% year-over-year growth. That's 2021. From an EBITDA standpoint, it's a 60% growth year-over-year, at the guidance midpoint between the 2020 and 2021. That's the year growth. When it comes to 2022, I want to mention one thing before I'm going into the numbers. This is a very important comment that has to do with our visibility.
As I mentioned, the fact that we are adding Vidazoo here give us way better way to forecast and way better way to predict our numbers and give us a confidence, greater confidence, when we are putting guidance for 2022. In this way, we increase our guidance, which reflect a 29% year-over-year growth between 2021 and 2021 from the revenue side, and 33% growth on adjusted EBITDA between 2021 and 2022. All in all, another thing that we're looking at is EBITDA to revenue ex-tech, and we are across the 30 line, and we're looking about 31% EBITDA to revenue ex-tech. With that, I very much finish our presentation. We're very exciting to have the Vidazoo team as part of the Perion team. There is a tremendous opportunity for us in the marketplace. Again, welcome, Vidazoo.
Thank you, Doron. It's also important to mention that we are very thrilled and excited to join the family and looking forward for a very great synergy and road ahead. Thank you very much for the opportunity. That's great.
Yeah. We will open the guidance. We will open the call for any kind of questions, right?
Yes.
Can we?
Yes. Thank you. At this time, we'll be conducting a question and answer session. You may submit a question by using the Q&A icon on the bottom of your screen. You may need to hover your mouse in the Zoom program for the icon to appear. To verbally ask a question, please click the raise your hand icon on the bottom of your screen. I'll ask you to unmute when it's your turn to ask a question. Once again, to type a question in, please use the Q&A function on the bottom of your screen, or click the raise a hand icon on the bottom of your screen, and I will unmute your line and ask you to speak. One moment, please, while we pull for questions. Our first question today is coming from Eric Martinuzzi. Your line is now live.
Gentlemen, congratulations on the transaction. Daniel, you've created quite a company. I'm a big fan of growth companies, and I like that 41% number for 2021. That's a terrific accomplishment. My question has to do with the competitive landscape. I'm still trying to get my arms around the technology that you've acquired here, but to me, it looks like a supply-side platform, SSPs will be your competitors here. Do I have that right? Would a PubMatic, would a Magnite, either Doron or Daniel, is that who your competitors are?
Daniel, you want to take it?
Yeah, I would love so. In that sense, the SSP, the supply-side platforms are basically only a pipe of budgets, right? They have budgets that they're driving from the DSPs, which is the demand-side platforms, to the publishers. It works that way in display. SSPs work directly with the publishers when it comes to display, but when it comes to video, they need to buy pre-roll and outstream formats, which they don't have the technology to do. In that sense, today, Vidazoo works with all of the SSPs. Those SSPs, as you mentioned, such as PubMatic and AppNexus and the rest of them, are all acquiring the media and ad placements from Vidazoo. If they want Vidazoo and some other several companies, if they want to access pre-roll supply or outstream video supply.
Go ahead. I'll let you finish.
No, I just wanted to mention that Doron mentioned that Vidazoo, in order to grow, we need more direct budgets to allow our publishers a higher payout. At the same time, also, the brands and agencies want more control and transparency because when you transform the same ad from so many intermediaries in between, you don't always have this confidence in what I'm getting eventually, in terms of viewability and other metrics. In that sense, we are integrated directly on the page with our video player and outstream video player, and we allow the agencies and brands to have a more transparent path of optimization.
You actually anticipated my next question, which was, who are the middlemen who are getting eliminated here? I'm assuming that you're saying that that friction cost of the SSPs gets eliminated here because now people can use Perion, the hub and spoke system of Perion, to go direct and get that video reach. Am I understanding that correctly?
Yes.
Exactly. If Perion has their own DSP and they have their own brands and agencies that are already spending on their platform for specific formats, now they can actually extend and expand their offering to their agencies that can now also suggest them pre-roll ads, standard video ads, and also High impact video ads, as Doron mentioned.
Got it. Thanks for taking my questions.
Thank you, Eric.
Thanks. Our next question today is coming from Jeff Martin. Your line is now live.
Thanks. Good evening, guys. Congratulations on a nice transaction here. Wanted to get a sense, and I joined a little bit late, so I apologize if this is redundant. I want to get a sense of the competitive moat. How is the platform differentiated? If you could speak to who you most directly compete with, that'd be very helpful.
We just answered this question a minute ago.
Right. I was wondering if you could name direct competitors.
Daniel?
Yeah, sure. We mainly compete with other similar technologies such as Connatix, for example, and Avantis, and JW Player and Brightcove. There are some of them direct, some of them indirect, but basically, every company that develops their own video player or can provide some video content library to publishers, they're our main competitors. What makes us very unique in that sense is that the technology is our proprietary and our culture and the way we focus our business is always a performance-driven attitude, meaning that we provide to publishers the technology that creates and drives the highest payout in terms of the dollar that they're getting for every ad. It's all being done through the sophisticated and comprehensive yield management platform that we've been building since 2014.
This is our secret sauce that eventually can mix all of the programmatic demand and the direct demand together, that publisher can get the highest dollar for the least ads that they can show to the users.
Great. I did catch you had about 200 publishers on the platform. Could you speak to some of the largest customers, how long they've been with you, how much they're adding, at what rate they're adding? It looks like a very nice growth profile of the business, so obviously you must be adding publishers and growing the existing publisher base. If you could comment around that'd be helpful.
Yeah, sure thing. You are right. In the publishing side of things, we're growing very rapidly because it's a word of mouth out there. Once you provide a very good performance, publishers just kind of speak with each other, and then we have inbound leads coming in from publishers. I must mention that most of our publishers are tier 2, tier 3 publishers, not the giants that has their own internal content creation teams and resources. We mainly work with publishers that either has only content writers and don't have a lot of resources to manage and power ads. When it comes to the big names, we are working with Investing.com, which is one of the largest financial portals. We are working with Ströer Media Brands in Germany, which is one of the largest media publications in Europe in general.
We work with also some local news sites, and we also work with a huge entertainment section that doing a lot of social activity, part of which also Doron mentioned, for example, that their O&O websites, and those are growing very rapidly. We expecting a growth with the synergy with Perion, we expect to have a lot of also more premium publishers to come into our platform to help us drive all of this publisher network that obviously Perion has as well.
Wonderful. Thanks for taking my questions, and congratulations to all of you.
Thank you so much.
Thank you. As a reminder, if you'd like to ask a question, you can type your question into the Q&A pod or to verbally ask a question, please use the raise your hand feature. One moment please while I poll for further questions.
Kevin, we will take one question from the chat. Just to answer about the guidance. The guidance for 2021 updated by $12 million with the acquisition of Vidazoo and $3 million just aligning to the midpoint that we have currently. The main change is from Vidazoo. For 2022, the additional $55 million revenue is directly related to Vidazoo, and now we are expecting $560 million revenue midpoint for 2022.
Thank you. If there are no further questions at this time, I'll turn the floor back over to management for any further or closing comments.
Yeah. Guys, thank you very much for joining this call. We are excited about this acquisition. Just to remind you, our third quarter earning call is going to be on October 26th, where we're going to, of course, cover the third quarters, and we'll elaborate more on the Vidazoo acquisition and about our hub and spoke strategy as well. Thanks again for being on our call today. Thanks so much. Bye-bye.
Thank you. That does conclude today's webinar. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.
Thanks.