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Perion

Perion Plummets 41% on Monday Trading In a tumultuous turn of events, Perion Network's U.S.-listed shares nosedived by over 40% on Monday following the company's stark reduction in its 2024 revenue forecast. The Israeli ad tech firm attributed this downward revision to a significant decline in search advertising, primarily driven by transformative changes at Microsoft's Bing platform. Perion Network ( NASDAQ:PERI ), which had previously anticipated annual revenue in the robust range of $860 million to $880 million for 2024, now anticipates a starkly reduced figure between $590 million to $610 million. This substantial downgrade underscores the profound impact of shifts in search advertising dynamics, particularly stemming from alterations in ad pricing and distribution mechanisms implemented by Microsoft Bing. Eric Martinuzzi, an analyst at Lake Street Capital Markets, highlighted the inherent risk associated with Perion's revenue concentration on Microsoft, noting that changes in Microsoft's advertising policies have triggered the drastic reset in Perion's revenue outlook. With Microsoft accounting for 35% of its revenue in 2022, the repercussions of the tech giant's strategic shifts reverberate throughout Perion's financial landscape. The fallout from Perion's revised revenue forecast reverberated across the market, with the company's stock plummeting by $13.30 in early trading. Year-to-date, Perion's shares have tumbled by approximately 32%, grappling with intensified competition from industry behemoths such as Alphabet's Google and Meta Platforms, parent company of Facebook. Despite the daunting challenges posed by evolving market dynamics, Perion remains steadfast in its commitment to navigate these turbulent waters. The company is slated to unveil its first-quarter results on May 8, providing investors with crucial insights into its ongoing efforts to mitigate the impact of Microsoft Bing's transformative changes on its revenue streams. As the ad tech industry braces for continued disruption amidst the evolving search advertising landscape, Perion's resilience and adaptability will be put to the test. With uncertainty looming, stakeholders keenly await Perion's strategic response to navigate the shifting sands of the digital advertising realm and emerge stronger in the face of adversity. Technical Outlook NASDAQ:PERI 's stock is in a Downward Trend with the stock's Relative Strength Index (RSI) at 9.88 indicating a very strong overbought condition for the ticker.
NASDAQ:PERIShort
by DEXWireNews
PERI : POSITIION TRADEQ3 : EARNINGS CALL HIGHLIGHTS: Looking at the last 8 quarters, our ability to exceed the rule of 40 is not a series of anomaly or a one-off success. Quite the opposite, we are outperforming the industry because we are built on the fundamental recognition that adtech must be able to respond, underlying response to the trend with ability and agility. Revenue of $158.6 million, reflecting 31% year-over-year growth, the highest quarterly revenue since 2014. Adjusted EBITDA of $33 million, 21% of revenue compared with 15% last year, reflecting 87% year-over-year growth. Net -- GAAP net income of $25.6 million, 141% year-over-year growth, the highest quarterly net income since 2014. Non-GAAP diluted earnings per share of $0.61, reflecting 53% year-over-year growth. The third quarter revenue was $158.6 million, an increase of 31% year-over-year. The strong continued revenue growth reflected a CAGR 38%. Display advertising revenue increased by 26% year-over-year to $86.8 million, 55% of total revenue. Market adoption of our holistic video platform solution continued to rise. Video revenue more than 3% year-over-year, representing 44% of display advertising revenue. The number of video platform publishers increased by 88% year-over-year from 34% to 64%, and the revenue from retained video platform publishers increased by 67% year-over-year. Third quarter OpEx and COGS amounted to $31.7 million or 20% of revenue compared with $33.1 million or 27% of revenue last year. This impressive achievement reflects the execution of our business strategy. On a GAAP basis, net income was $25.6 million or $0.53 per diluted share, an increase of 141% compared with $10.6 million or $0.28 per diluted share in the third quarter of 2021. On a non-GAAP basis, net income was $29.9 million or $0.61 per diluted share, an increase of 94% compared with $15.4 million or $0.40 per diluted share in the third quarter of 2021. Adjusted EBITDA of $33 million, reflecting 94% year-over-year growth, adjusted EBITDA margin of 21% compared with 15% last year. Adjusted EBITDA to revenue, excluding TAC increased from 37% in the third quarter of 2021 to 51% during the third quarter of 2022. Operating cash flow was $34.7 million compared with $14.2 million in the third quarter of 2021, reflecting 145% year-over-year growth. As of September 30, 2022, cash, cash equivalents, and short-term bank deposits of $390 million compared with $322 million as of December 31, 2021; continuously generating positive cash flow. Full earnings call transcript and presentation on the links below: Transcript / Audio : seekingalpha.com Presentation : wp-cdn.perion.com
NASDAQ:PERILong
by TradingMavericks