First, you're using -e but using say which won't work. For the say feature, you need -E. Bah... the v5.10 was right in front of me even.

Second, you're only reading one line of the file at a time (-n), so you'll never see the "He" on the next line.

Try something like this, which slurps in the entire file all at once:

perl -E '$str=do{local($/);<>}; say $& if $str =~ /kid.He/s;' temp
kid
He
[download]

ps. I didn't know about the -00 flag :)