Perion tumbles on full-year guidance cut


Perion (PERI -9.4%) now expects 2014 revenue of $380M-$400M and net income of $80M-$90M, down sharply from a May forecast of $460M-$470M and $103M-$108M.

The company largely blames Google Chrome policy changes (previous) that require users to manually agree to the installation of plug-ins (such as Perion's search toolbars). A "technical matter" that has hurt search traffic is also taking a toll, but Perion expects the issue to be fixed soon.

CEO Josef Mandelbaum: "We're not going to spend as aggressively because we would be losing money, and we are preserving the profitability of the business." Perion is lowering its payouts to partners until monetization rebounds.

Costs/expenses fell to 20% of revenue in Q2 from 23% a year ago. Customer acquisition costs were 50% of revenue.

Q2 results, PR

Comments (1)
  • educandi
    , contributor
    Comments (17) | Send Message
     
    Three items of interest.

     

    First, on 6/18/14, SA published article that said Perion was a "sinking ship" with a 40% downside. Well that's about to be accomplished.

     

    Second is that Mandelbaum has a history of giving an upbeat outlook and then follows that with lower guidance.

     

    And the last item is that the cause of Perion's lower guidance is Google. If you remember, it was Google that was instrumental in getting the Muslim Brotherhood intrenched in Egypt after Mubarak was thrown out. Just makes sense that Google will do whatever it takes to make things difficult for Perion.
    7 Aug 2014, 09:57 AM Reply Like
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