Perion Network Ltd.'s (PERI) stock is taking a significant hit, declining by over 36 percent. This drop is largely due to the company's revised revenue forecast for the fiscal year 2024, which has been lowered mainly due to downturns in search advertising and, to a lesser extent, web video activity.
The media company now anticipates generating revenue between $590 and $610 million, a significant decrease from the previously estimated range of $860 to $880 million. Additionally, it predicts an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) between $78 and $82 million, contrasting with the initially forecasted $178 to $182 million.
Alongside adjusting its revenue outlook, Perion has also released preliminary financial results for the first quarter. The results indicate a decrease in adjusted EBITDA, dipping to $20 million from last year's $31.3 million. In contrast, revenue rose to $157 million, an increase from last year's figure of $145.2 million.
Market analysts, who were polled by Thomson Reuters, had anticipated a higher revenue figure of $175.53 million for the same quarter. Currently, Perion's stock is undergoing a steep fall by 36.08 percent, trading at $13.50 on the Nasdaq.
