Perion (NASDAQ:PERI) adjusts 2024 outlook amid search Ad shifts

Perion Network (NASDAQ:PERI) recently disclosed preliminary financial outcomes for the first quarter of 2024 and adjusted its full-year guidance.

The firm experienced a downturn in search advertising owing to changes in Microsoft Bing's advertising pricing and distribution mechanisms, which led to reduced Revenue Per Thousand Impressions (RPM) and search volumes.

Despite these challenges, Perion anticipates Q1 2024 revenue of $157 million and an adjusted EBITDA of $20 million.

For the entirety of 2024, the company now forecasts revenue between $590-$610 million and adjusted EBITDA in the range of $78-$82 million, attributing the decline primarily to the search advertising segment.

Despite the setback, Perion's CEO, Tal Jacobson, remains optimistic about the company's collaboration with Microsoft and its diversified strategy, focusing on customer needs across various digital advertising avenues.

In a move reflecting confidence in its financial strength, Perion announced an increase in its buyback program from $50 million to up to $75 million.