Israeli digital advertising company Périon Network (Nasdaq: PERI; TASE: PERI) has again revised its outlook downward. Two months after announcing that price changes made by Microsoft’s Bing search engine had negatively impacted the company’s revenue, Perion announced that Microsoft Bing was excluding a number of publishers from its distribution market of research.
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Perion’s stock price is currently down 29.34% on the Nasdaq, giving it a market cap of $425 million.
According to the company, these latest actions by Bing, along with changes in advertising rates 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 revenue. Perion at second. half 2024. « As the company continues to work with other search engines, our agreement with Microsoft Bing is no longer important to Perion, » the company added. Perion added that it has also seen a recent decline in revenue from standard video and display formats.
Perion revised its revenue guidance downward to $106-108 million from $118-122 million in the second quarter, with adjusted EBITDA of $6.5-7.5 million, down by compared to its previous forecast of $10 million to $12 million.
Full-year 2024 guidance was reduced from $590-610 million to $490-510 million after 2023 revenue of over $700 million. 2024 EBITDA will be $48-52 million dollars, down 70% compared to 2023.
Tal Jacobson, CEO of Perion, said: “The recent changes implemented by Microsoft Bing in its search distribution marketplace are unfortunate and have had a significant impact on our search advertising business. Perion remains committed to growing our AI advertising solutions business through product innovation and partnerships. We focused on expanding our growth drivers into more countries, including CTV, retail media and programmatic digital out-of-home (DOOH). These represent a big opportunity for Perion due to their size and growth rate worldwide.
He added: “Additionally, management and our board are also committed to creating shareholder value by leveraging our strong balance sheet to invest in technology, acquire complementary solutions and execute our buyback program of 75 million dollars, which has already started.
Published by Globes, Israel Business News – fr.globes.co.il – June 10, 2024.
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