Perion Network stock tanks 23%: what happened?

Shares of Perion Network Ltd (NASDAQ: PERI) are down close to 25% in premarket on Monday after the media tech firm updated its guidance for the current quarter as well as the full financial year. 

Perion Network stock is now down 70% YTD

Perion Network now forecasts its revenue to fall between $106 million and $108 million in Q2. Analysts, in comparison, were at a much better $120 million. 

PERI share price is taking a big hit today as the updated outlook marks a significant decline from up to $122 million in quarterly revenue its management had guided for just last month. 

Perion attributed the expected weakness to Microsoft Bing that recently decided to exclude a bunch of publishers from its search distribution marketplace. Still, Tal Jacobson - chief executive of the ad tech company said in a press release today:

Perion stock has now lost close to 70% since the start of 2024. 

Perion Network's updated guidance for the full year

Perion Network stock price is slipping also because it trimmed its guidance for the full year on Monday. The Nasdaq-listed firm now forecasts its adjusted EBITDA to fall between $48 million and $52 million on up to $510 million in revenue. 

The updated outlook is materially weaker than $601 million consensus and $590 million to $610 million in full-year revenue its management had guided for in May. CEO Jacobson also said today:

$PERI will also continue to invest in technology and make complementary acquisitions to boost shareholder value, he added. The Israel based company is in the midst of executing a $75 million share buyback programme already. 

Note that Perion Network shares do not currently pay a dividend. 

What else could be hitting Perion Networks share price today?

Perion share price may also be taking a hit because “The Gross Law Firm” issued a notice to its shareholders this morning that told them to contact it about a pending class action if they invested in $PERI between February 9th, 2021 and April 5th, 2024. 

The complaint alleges that Perion Network issued “materially false and/or misleading statements” during the aforementioned class period, as per a press release on Monday. 

Heading into today, Wall Street had a consensus “overweight” rating on Perion stock.