07:32 AM EDT, 04/08/2024 (MT Newswires) -- Perion Network ( PERI ) shares fell by more than 38% in premarket trading on Monday after the company lowered its 2024 guidance for revenue and adjusted EBITDA due to a decline in search advertising activity in Q1.

The company said it now expects $590 million to $610 million in revenue and $78 million to $82 million in adjusted EBITDA for 2024. Perion Network ( PERI ) previously estimated 2024 revenue at $860 million to $880 million and adjusted EBITDA at $178 million to $182 million.

Perion Network ( PERI ) said Microsoft Bing implemented changes in advertising pricing and mechanisms in its search distribution marketplace, leading to decreased search volume and reduced revenue per thousand impressions for Perion, along with other Microsoft Bing distribution partners.

For Q1, Perion Network ( PERI ) estimated $157 million in revenue. Analysts polled by Capital IQ expect $175.5 million.

The company is set to release its Q1 results on May 8.

Price: 13.09, Change: -8.02, Percent Change: -37.99