Israeli digital advertising company Perion network (Nasdaq: PERI; TASE: PERI) once again revised its forecasts downward. Two months after announcing that pricing changes made by Microsoft's Bing search engine had detrimentally impacted the company's revenue, Perion has now announced that Microsoft Bing is excluding a number of publishers from its search distribution marketplace.
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Perion's stock price is currently down 29.34% on the Nasdaq, giving it a market cap of $425 million.
The company says these latest actions by Bing, combined with changes to ad pricing and mechanisms implemented by Microsoft Bing during the first quarter of 2024, mean that Microsoft Bing revenue is expected to represent less than 5% of Perion's revenue in the second quarter. Half of 2024. “As the company continues to work with other search engines, our agreement with Microsoft Bing is no longer material to Perion,” the company added. Perrion added that it has also seen a recent decline in revenue from standard video and display formats.
Perion revised its revenue guidance to $106-108 million in the second quarter from $118-122 million with adjusted EBITDA of $6.5-7.5 million, down from its previous forecast of $10-12 million.
Full-year 2024 guidance was lowered from $590-610 million to $490-510 million after revenue of more than $700 million in 2023. EBITDA in 2024 will be $48-52 million, down 70% from 2024 2023.
“The recent changes Microsoft Bing implemented to its search distribution marketplace were unfortunate and significantly impacted our search advertising business,” said Tal Jacobson, CEO of Perion. “Perion remains committed to expanding our AI-driven advertising solutions business through… Product Innovation and Partnerships Specifically, we are focused on expanding our growth drivers into more countries, including CTV, retail media and digital out-of-home (DOOH), which represents a significant opportunity for Perion given its scale and growth rate across the globe.
“Furthermore, management and our Board of Directors are equally committed to delivering shareholder value by leveraging our strong balance sheet to invest in technology, acquire complementary solutions and implement the $75 million buyback program, which has already begun,” he added.
Published by Globes, Israel Business News – en.globes.co.il – on June 10, 2024.
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