Why Perion Network Shares Are Diving Premarket Monday
Portfolio Pulse from Lekha Gupta
Perion Network Ltd. (NASDAQ:PERI) shares plummeted premarket Monday after the company reported disappointing preliminary results for Q1 FY24 and significantly lowered its FY24 guidance. The company's revenue and adjusted EBITDA for Q1 were below consensus expectations, attributed to a decline in Search Advertising activity due to changes by Microsoft Bing. Additionally, Perion lowered its FY24 revenue and adjusted EBITDA outlook, citing challenges in Search Advertising and web video activity. Despite these setbacks, the company is focusing on expanding its Display Advertising activity and leveraging its strong cash balance for strategic acquisitions.
April 08, 2024 | 11:21 am
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Perion Network Ltd. (NASDAQ:PERI) shares dropped significantly after reporting lower than expected Q1 FY24 results and reducing FY24 guidance. The decline in Search Advertising activity and adjustments in advertising by Microsoft Bing were key factors. Despite this, Perion is optimistic about its Display Advertising expansion and acquisition strategy.
The sharp decline in PERI's stock price is directly related to the company's preliminary Q1 FY24 results and reduced FY24 guidance, which were below market expectations. The negative impact on Search Advertising activity, primarily due to changes implemented by Microsoft Bing, has significantly affected the company's performance. However, Perion's strategic focus on expanding its Display Advertising activity and leveraging its strong cash position for acquisitions may provide a pathway for recovery and growth in the long term.
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