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Are you keeping up with the latest news in the financial world? If not, you’re in the right place! Today, we’re diving into the recent plunge of Perion Network’s stock price and what it means for investors.
Shares of Perion Network (NASDAQ: PERI) dropped over 40% recently after the company released disappointing preliminary first-quarter 2024 results. The digital advertising products and services company also adjusted its full-year forecast, causing concern among investors.
Breaking down Perion’s performance
Perion reported that its first-quarter revenue is expected to be $157 million, an 8% increase compared to the previous year. However, this figure fell significantly short of analysts’ expectations of $175.5 million, representing a growth of nearly 21%. Additionally, the company stated that adjusted EBITDA for the quarter will decrease by 36% year over year to $20 million.
The underperformance in Q1 was attributed to changes in advertising pricing and mechanisms by Microsoft Bing, impacting search advertising volume and web video activity for Perion. Despite challenges, Perion’s CEO highlighted the company’s strong relationship with Microsoft and potential collaborations in digital advertising solutions.
Looking ahead for Perion Network investors
Despite the setback, Perion revised its full-year revenue guidance to $590 million to $610 million, marking a 19% decrease from the previous year. Adjusted EBITDA outlook for 2024 was also lowered to $78 million to $82 million, down from the initial forecast of $178 million to $182 million.
In response to the market reaction, Perion announced a $25 million increase in their share buyback authorization, signaling confidence in the company’s future success in the digital advertising landscape.
For investors considering Perion Network, it’s essential to explore all options and stay informed. The recent market volatility serves as a reminder of the unpredictable nature of the finance industry.
Should you invest in Perion Network?
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