Perion Network Ltd. ( PERI ) shares are tumbling after it reported first-quarter FY24 preliminary results and lowered FY24 guidance. 

The company sees revenue of $157 million, up 8% Y/Y (consensus $175.529 million), and adjusted EBITDA of $20 million (-36% Y/Y) in the first quarter.

In the first quarter of 2024, the company witnessed a decline in Search Advertising activity, owing to changes in advertising pricing and mechanisms implemented by Microsoft Bing in its Search Distribution marketplace. 

Buyback: The company approved an increase to its buyback program to up to $75 million from $50 million.

Outlook: For FY24, the company lowered outlook for revenue to $590 million-$610 million (from $860 million-$880 million earlier) vs. consensus of $868.386 million and adjusted EBITDA of $78 million- $82 million (from $178 million-$182 million earlier).

The guidance cut is mainly attributed to Search Advertising and web video activity.

Tal Jacobson, Perion’s CEO said, “We continue to expand and strengthen our solutions and technologies by leveraging our cash flow generation and strong cash balance of almost half a billion USD to acquire companies that are complementary and additive to our growth.”

“A key driver of our long-term success is our focus on expanding our Display Advertising activity, whose growth drivers include AI-driven CTV, Retail Media and Digital out-of-home (DOOH). These growth drivers continued to deliver meaningful growth in the first quarter and are expected to increasingly contribute to our results in 2024.”

Perion plans to release its first quarter 2024 results on May 8, 2024.

Price Action: PERI shares are down 37.8% at $13.14 premarket on the last check Monday.