Perion Network Q2: Retail Media and CTV Bright Spots Amid Overall Weakness
Portfolio Pulse from Lekha Gupta
Perion Network Ltd. (NASDAQ:PERI) reported a 39% Y/Y decline in Q2 FY24 revenue to $108.7 million, beating the consensus of $107.0 million. Despite growth in Retail Media and CTV revenues, overall performance was weak with significant declines in Search Advertising and Open Web Video revenues. Adjusted EBITDA fell 81% Y/Y to $7.7 million, and adjusted EPS of $0.26 exceeded the consensus loss of $0.01. The company reiterated its FY24 revenue outlook and expanded its share repurchase program.
July 31, 2024 | 2:49 pm
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Perion Network Ltd. reported a 39% Y/Y decline in Q2 FY24 revenue to $108.7 million, beating the consensus of $107.0 million. Despite growth in Retail Media and CTV revenues, overall performance was weak with significant declines in Search Advertising and Open Web Video revenues. Adjusted EBITDA fell 81% Y/Y to $7.7 million, and adjusted EPS of $0.26 exceeded the consensus loss of $0.01. The company reiterated its FY24 revenue outlook and expanded its share repurchase program.
The significant decline in overall revenue and adjusted EBITDA, despite some bright spots in Retail Media and CTV, indicates a challenging quarter for Perion Network. The stock is likely to face short-term pressure due to the overall weak performance, even though the company beat revenue and EPS estimates and reiterated its FY24 outlook.
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