Perion plummets on more Bing changes

Perion CEO Tal Jacobson credit: Ohad Dayan
Perion CEO Tal Jacobson credit: Ohad Dayan

The Israeli digital ad company has now announced that Microsoft Bing is excluding a number of publishers from its search distribution marketplace.

Israeli digital ad company Perion Network (Nasdaq: PERI; TASE: PERI) has again revised its outlook downwards. Two months after announcing that changes in pricing made by Microsoft's Bing search engine had detrimentally impacted the company's revenue, Perion has now announced that Microsoft Bing is excluding a number of publishers from its search distribution marketplace.

Perion's share price is currently down 29.34% on Nasdaq, giving a market cap of $425 million.

These latest actions by Bing, together with the changes in advertising pricing and mechanisms implemented by Microsoft Bing during the first quarter of 2024, the company says, means that revenue from Microsoft Bing is expected to represent less than 5% of Perion’s revenue in the second half of 2024. "As the company continues to work with other search engines, our agreement with Microsoft Bing is no longer material to Perion," the company added. Perion added that it has also seen a recent decline in revenue from standard video and display formats.

Perion has revised its revenue guidance down to $106-108 million inm the second quarter from $118-122 million with adjust EBITDA of $6.5-7.5 million, down from its previous forecast of $10-12 million.

Full year 2024 guidance has been cut from $590-610 million to $490-510 million after revenue of more than $700 million in 2023. 2024 EBITDA will be $48-52 million, down 70% from 2023.

Perion CEO Tal Jacobson said, "The recent changes Microsoft Bing implemented to its search distribution marketplace are unfortunate and significantly impacted our search advertising business. Perion remains committed to expanding our AI-driven advertising solutions business through product innovation and partnerships. Specifically, we are focused on expanding our growth engines into more countries, including CTV, retail media, and programmatic digital out-of-home (DOOH). These represent a big opportunity for Perion due to their size and growth rate worldwide.

He added, "Furthermore, management and our board of directors are equally committed to delivering shareholder value by leveraging our strong balance sheet to invest in technology, acquire complementary solutions and execute our $75 million buyback program, which has already begun."

Published by Globes, Israel business news - en.globes.co.il - on June 10, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Perion CEO Tal Jacobson credit: Ohad Dayan
Perion CEO Tal Jacobson credit: Ohad Dayan
Bank Leumi branch credit: Eyal Izhar Leumi posts largest ever bank profit

Bank Leumi earned a profit of NIS 9.8 billion in 2024, 40% more than in 2023.

Medical research  credit: Shutterstock Boston Scientific buys Israeli medical device co SoniVie

The US medical device company will pay up to $540 million for the Rehovot-based intravascular ultrasound device developer for treating high blood pressure.

Dina Ben Tal Ganancia  credit: Guy Kushi & Yariv Fein El Al agrees to shoulder higher security costs

In exchange for lowering the government's security spending burden, El Al expects state permission to distribute dividends.

Playtika head office in Herzliya Credit: Eyal Izhar Playtika stock sinks to all-time low

The Israeli mobile games developer's share price has fallen over 80% since its Wall Street IPO four years ago.

Ronit Harel Ben Zeev credit: Osnat Rom S&P Maalot Israel CEO: Capital market needs more women

Ronit Harel Ben Zeev talks to "Globes" about she came to work at the Tel Aviv Stock Exchange, the Israeli economy and S&P Maalot.

Building work on Sarona Hotel credit: Shutterstock Work moves slowly ahead on one of Israel's biggest hotels

After years of delays, construction work resumed several months ago on the 800-room, 47-floor Sarona Hotel in Tel Aviv.

New car deliveries in Israel credit: Shutterstock New car deliveries in Israel hit five year low

Deliveries of gasoline, hybrid and plug-in vehicles were led by Hyundai with 9,251 deliveries since the beginning of the year.

Yadin Antebi  credit: Jonathan Bloom Hapoalim posts record annual profit, sets targets

Bank Hapoalim expects to post a profit of NIS 8.5-9.5 billion in each of the years 2025 and 2026, but expresses concern about the real estate sector.

Venture capital credit: Shutterstock Andreessen Horowitz boosting Israel VC investments

According to the IVC-Gornitzky-KPMG-Israel Innovation Authority investors report for 2024, the US venture capital fund has become one of the most active foreign investors in Israel.

Wiz Sarona offices inset Assaf Rappaport credit: Wiz Omer Hacohen Wiz leases five floors in renovated Sarona building

Exclusive: The Israeli cloud security company is leasing 5,500 square meters of space in a preserved Tel Aviv Templar building.

Tel Aviv Midtown - inset Ilya Sutskever credit: Shutterstock SSI Israel hires first senior researchers

Exclusive: "Globes" names some of the senior researchers hired in Tel Aviv by Ilya Sutskever's Safe Super Intelligence.

Raising dollars credit: Shutterstock Israeli startups raised over $550m in February

Israeli startups have raised $1.25 billion in the first two months of 2025, up from $800 million in the corresponding period of 2024.

Ashdod's South Port  credit: Wikipedia New regulation for Israel's ports underway

The reform, though not perfect and still liable to met with opposition, is vital to efficient handling of Israel's trade.

BIG Glilot opening weekend credit: BIG 150,000 jam into BIG Glilot over first weekend

Israel's newly opened and biggest shopping center recorded huge sales on Friday and Saturday, despite traffic congestion at the car park entrance.

Israeli apartments Credit: Shutterstock Apartments sold and rented

A selection of recent real estate deals in Israel in Jerusalem, Ma'aleh Adumim, Hod Hasharon, Zikron Yaakov, Kiryat Bialik, and Beersheva.

Nochi Dankner  credit: Tamar Matsafi Court orders seizure of Nochi Dankner assets worth NIS 50m

The order follows the cancelation of the settlement of the class action brought by IDB shareholders against Dankner and his partner Itay Strum..

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018