Perion Network (NASDAQ:PERI) shares plummeted more than 40% yesterday following the company’s preliminary results announcement, which included a lowered revenue outlook. This revision was primarily due to a decline in search advertising revenue, triggered by adjustments made by Microsoft Bing in its advertising pricing and search distribution marketplace.
These modifications resulted in a decrease in Revenue Per Thousand Impressions (RPM) for Perion and other partners of Microsoft Bing, leading to reduced search volume. As a result, Perion has adjusted its Q1/24 revenue and adjusted EBITDA expectations to $157 million and $20 million, respectively, and its full-year 2024 revenue forecast to between $590 and $610 million from the previous $860 to $880 million range.
The adjusted EBITDA forecast for the year has also been revised down to between $78 million and $82 million from $178 million to $182 million. The company noted that the downturn is mainly due to the search advertising segment and, to a lesser extent, web video activity, while other business metrics continue to show positive trends.