Perion Network Ltd (NASDAQ:PERI) Extends Partnership with Microsoft

Perion Network Ltd (NASDAQ:PERI)

Perion Network Ltd (NASDAQ:PERI) shares fell 8.5% after the advertising solutions provider announced it is extending its relationship with search engine Bing. The new agreement, set to run through 2020, should allow the company expand its reach in the search engine ecosystem.

Perion Network Ltd (NASDAQ:PERI)

PERI Stock Performance

Thursday’s sell-off saw PERI stock register a new 52-week low of $0.94 a share as it continues to trade in a strong downtrend. For the year, Perion Network is down by more than 30% after it hit a high of $2.32 in February.

Thursday’s sell-off came as a surprise given that the Microsoft Corporation (NASDAQ:MSFT) agreement expected to grow Perion Network Ltd (NASDAQ:PERI) search business. The extension allows the company to continue providing its publishing partners and their consumers a leading search and monetization solutions.

“This enhanced agreement is designed to expand Perion’s reach into the search space, providing additional growth opportunities for us, and enabling us to continue providing comprehensive search solutions to new and existing publishers around the world,” said CEO Doron Gerstel.

Snapchat Partnership

In addition to the Microsoft agreement extension, Perion Network Ltd (NASDAQ:PERI)’s creative advertising division, Undertone, has been named as an official Snapchat Creative Partner. The selection underscores the unit’s ability to offer dynamic creativity on Snapchat’s platform.

Undertone specializes in helping recognizable brands deliver engaging digital experiences to drive business growth. The Perion Network Ltd (NASDAQ:PERI) unit has already partnered with the likes of Unify water and Niagara to help them deliver high impact creative ads.

“This partnership underlines our commitment to cross-platform creativity and helping brands connect with consumers however they consume content,” said Mike Pallad, President of Undertone.

Perion Financial Results

Separately, Perion Network Ltd (NASDAQ:PERI) will announce financial results for the three months ended September 30, 2017, on November 9, 2017. For the three months ended June 30, 2017, the company reported a net loss of (-$36) million or (-$0.46) cents a share. Revenues dropped 11% from $78 million to $69.7 million, primarily because of a 24% decline in search and other revenues.

Perion Network exited the quarter with cash and cash equivalent of $22.4 million compared to $4.3 million in the second quarter of 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Perion Network Ltd (NASDAQ:PERI)

Perion Network Ltd (NASDAQ:PERI) Changes Management To Fuel Search Unit Growth

Perion Network Ltd (NASDAQ:PERI)

Perion Network Ltd (NASDAQ:PERI) has moved to strengthen ties with Microsoft Corporation (NASDAQ:MSFT)’s Bing with the appointment of Mike Glover as the General Manager of its search unit. Glover takes over from Amir Nahmias, who is stepping down after nine years with the company.

Search Unit Changes

According to the company, the restructuring seeks to bolster the company’s search unit. Glover is credited with playing a key role in helping Infospace, in the early 2000’s, secure long-term agreements with search providers and publishers. He also joins the company with 14 years of experience in business development, sales, and marketing.

“Mike’s in-depth experience in the industry is essential for Perion’s long-term strategy for growth in search. Mike understands and believes in the search media market and will be a fantastic new addition to spearheading this unit as we continue to evolve Perion as a search industry leader. The position itself will be based in Redmond in order to strengthen our key relationship with Microsoft’s Bing.” said Perion CEO, Doron Gerstel.

The appointment of Mr. Glover comes on the heels of the appointment of Ophir Yakovian as Perion Network Ltd (NASDAQ:PERI) new Chief Financial Officer. Yakovian is taking over from Yakov Kaufman who is stepping down after 11 years with the company. Yakovian joins the company with more than a dozen years of experience of working in a number of NASDAQ listed companies.

Q1 Financial Results

Separately, Perion Network Ltd (NASDAQ:PERI) recently reported its first quarter earnings where its net loss shrunk to (-$2.1) million from (-$5.6) million as of Q1 2016. The company has attributed the decline to improved cost structure. Revenues, on the other hand, were down by 18% – coming in at $62 million compared $75.8 million.

A decline in expense-free search revenues remains a point of concern, advertising revenues in the first quarter having declined by 22%. Search and other revenues were also down by 16% compared to last year. However, the company maintains that the decline was transitory given that April’s revenues were up by 20% compared to last year.

Customer acquisition expense, as of the first quarter, totaled $30.1 million representing 48% of the total revenues, compared to $34.3 million as of last year. Perion Network Ltd (NASDAQ:PERI) exited the first quarter with cash and cash equivalent amounting to $22.8 million.

Perion Network Ltd (NASDAQ:PERI) stock was up 10.53% in Thursday’s trading session and ended the day at $1.68 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.