Shares of Perion Network (NASDAQ: PERI) plummeted more than 40% on Monday after the digital advertising products and services company announced far weaker-than-expected preliminary first-quarter 2024 results. Perion also reduced its full-year outlook.

In a press release this morning, Perion said it expects first-quarter 2024 revenue to be $157 million, up 8% year over year -- far below Wall Street's models for revenue of $175.5 million, or growth of nearly 21%. Perion also said that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter will be down 36% year over year to $20 million.

Perion blamed its relative underperformance in Q1 on "changes in advertising pricing and mechanisms implemented by Bing in its Search Distribution marketplace," which hurt search advertising volume and (to a lesser extent) web video activity.

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Source Fool.com