Perion Network (PERI) Stock Forecast & Price Target

Perion Network Ltd demonstrated significant growth in key revenue segments, with Retail Media increasing 33% year-over-year to $19.8 million, now constituting 22% of total revenue, up from 9% in the previous quarter. The company's Digital Out-of-Home (DOOH) revenue surged 80% year-over-year to $17.4 million, representing 19% of overall revenue, which reflects its successful acquisition of HiveStack and marks a substantial rise from 6% in the previous period. Additionally, Perion Network raised its revenue guidance by $30 million to a range of $430-$450 million, alongside an increase in adjusted EBITDA guidance by $4 million, underscoring the company’s robust growth trajectory and operational efficiency.

Perion Network Ltd reported a significant decline in total revenue, which fell to $89.3 million, representing a 43% year-over-year decrease, alongside a sharp 93% drop in adjusted EBITDA to $1.5 million. The company faces multiple challenges, including the loss of its Microsoft Bing search revenue and competition impacting its high-margin advertising business, which contributes to a structurally slower revenue growth outlook. Additionally, with rising operating costs projected to outpace revenue declines, concerns regarding the company's return on invested capital are heightened for 2025.