Perion Reports Strong Q1 Growth, Navigates New Microsoft Bing Ad Pricing Successfully

Perion Network Ltd PERI reported fiscal first-quarter 2024 revenues of $157.82 million, up 9% year over year. Revenues beat Wall Street's estimate of $156.82 million.

The company reported adjusted EPS of $0.44, beating the analyst consensus estimate of $0.23.

Average Daily Searches increased by 20% year-over-year to 31.6 million in the quarter under review. The number of Search Advertising publishers increased by 8% year-over-year.

Retail Media revenue increased 134% year-over-year to $14.9 million. CTV revenue increased 108% year-over-year to $8.2 million. Video revenue decreased 52% year-over-year.

Operating cash flow was $6.9 million, compared with $17.8 million a year ago. As of March-end, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $479.7 million.

“Perion is a resilient and agile company and we are confident in our strategic positioning to overcome challenges, including recent changes in advertising pricing and mechanisms introduced by Microsoft Bing,” stated Tal Jacobson, CEO of Perion.

Outlook: Perion Network expects second-quarter revenue of $118 million – $122 million (versus consensus of $118.54 million) and adjusted EBITDA of $10 million – $12 million.

The company reiterated fiscal 2024 revenue of $590 million – $610 million (estimate: $598.04 million) and adjusted EBITDA of $78 million – $82 million.

Price Action: PERI shares are trading lower by 0.63% to $12.63 at the last check Wednesday.