- Perion has reduced their financial year revenue forecast, now expecting to earn between $590 million to $610 million, down from the previous estimate of $860 million to $880 million.
- The company’s adjusted Ebitda is now predicted to be between $78 million to $82 million, a decrease from the previous estimate of $178 million to $182 million.
- Perion has increased its Buyback Program from $50 million to $75 million.
- The company’s preliminary 1Q adjusted Ebitda is $20 million, a 36% decrease year-on-year.
- Perion experienced a decline in Search Advertising activity in 1Q, due to changes in advertising pricing and mechanisms implemented by Microsoft Bing in its Search Distribution marketplace.
- These adjustments have caused a reduction in Revenue Per Thousand Impressions for both Perion and other Microsoft Bing distribution partners, leading to decreased search volume.
- The lower outlook is mainly due to Search Advertising, and to a lesser extent, the web video activity.
- Perion maintains a strong relationship with Microsoft and both organizations are exploring more opportunities to collaborate on a variety of digital advertising solutions.
- Preliminary 1Q revenue is $157 million, an 8% increase year-on-year.
- Shares of Perion fell 24% in pre-market trading to $16.02 on 2,595 shares traded.
- The company’s stock has 4 buys, 2 holds, and 0 sells.
A look at Perion Network Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 3 | |
| 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 a digital media company that offers various products and services to its customers. The company has been evaluated using the Smartkarma Smart Scores, which rates companies on a scale of 1-5 for various factors that determine its long-term outlook. Based on this assessment, Perion Network has received a value score of 3, dividend score of 1, growth score of 5, resilience score of 5, and momentum score of 3.
These scores indicate that Perion Network has a positive long-term outlook, with high scores for growth and resilience. This suggests that the company is expected to continue growing and is well-equipped to withstand any challenges in the market. However, the low dividend score may not be appealing to investors looking for regular income. Overall, Perion Network’s products and services, such as email, photo sharing, and screensavers, have the potential to attract and retain customers, making it a promising digital media company for the future.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
