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Perion Network Stock Drops 30% on Guidance Cut
Jun 11, 2024 5:08 PM - Davit Kirakosyan
Image credit: FMP
Perion Network (NASDAQ:PERI) dropped around 30% yesterday after the company significantly reduced its revenue guidance. Perion announced that Microsoft's Bing search service will exclude several publishers from its search distribution marketplace, though no specific names were mentioned. This change will severely impact Perion's revenue from Bing, which is now expected to account for less than 5% of total revenue in the second half of the year. In 2022, Microsoft was a major partner, contributing 35% of Perion's revenue.
Perion's CEO, Tal Jacobson, stated that the recent changes by Microsoft Bing have had a significant negative impact on their search advertising business.
In response to these developments, Perion has lowered its second-quarter revenue forecast to a range of $106 million to $108 million, down from the previous estimate of $118 million to $122 million. The company is scheduled to report its second-quarter results on July 31. For the full year 2024, Perion now anticipates revenue between $490 million and $510 million, a decrease from the earlier projection of $590 million to $610 million. This previous forecast had already been adjusted downward in April due to changes in Bing's ad pricing model.
Jacobson emphasized that Perion will continue to focus on expanding its AI-driven advertising solutions through innovation and partnerships. He reaffirmed the company's commitment to delivering shareholder value and completing the ongoing $75 million share buyback program.
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