- Perion revised its 2Q revenue forecast to $106 million to $108 million, down from the previous forecast of $118 million to $122 million. The estimate was $120 million.
- Adjusted EBITDA for 2Q is now expected to be $6.5 million to $7.5 million, down from the earlier forecast of $10 million to $12 million. The estimate was $11 million.
- For the year, Perion now expects revenue between $490 million and $510 million, revised down from $590 million to $610 million. The estimate was $601 million.
- Adjusted EBITDA for the year is forecasted at $48 million to $52 million, compared to the previous expectation of $78 million to $82 million. The estimate was $80.8 million.
- Microsoft Bing has decided to exclude several publishers from its search distribution marketplace, impacting Perion’s Search Advertising business.
- Search revenue from the agreement with Microsoft Bing is anticipated to be less than 5% of Perion’s revenue in the second half of 2024.
- Perion has observed a decline in revenue from standard video and display formats.
- CEO Tal Jacobson commented that the changes implemented by Microsoft Bing have had a significant negative impact on their Search Advertising business.
- Despite these challenges, Perion remains focused on expanding its AI-driven Advertising Solutions through product innovation and partnerships.
- Shares of Perion fell 15% in pre-market trading to $10.51 on a volume of 9,163 shares traded.
- Analyst ratings: 2 buys, 4 holds, and 0 sells.
A look at Perion Network Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Perion Network Ltd. is positioned for long-term growth and resilience, according to Smartkarma Smart Scores. With a high Growth score of 5, the company is expected to expand steadily in the future, driven by its digital media products and services. Additionally, Perion Network scores a 4 in Value, indicating that it is seen as undervalued in the market, presenting a potentially attractive opportunity for investors seeking value.
Although the company’s Dividend score is low at 1, suggesting limited dividend payouts, its strong Resilience score of 5 indicates that Perion Network is well-equipped to weather market volatility and challenges. However, the Momentum score of 2 suggests a moderate level of market momentum. In summary, Perion Network is a digital media company that offers various consumer products and services, with a promising outlook for growth and resilience in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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