Why did PERI's revenue costs drop sharply in Q2 2024?

Perion Network (PERI) experienced a significant decline in revenue and cost of goods sold in Q2 2024, primarily due to the impact of Microsoft Bing's changes to its search distribution marketplace.

1. **Microsoft Bing's Changes**: Bing, which was one of PERI's largest advertising partners, accounting for about 35% of PERI's revenue by the end of 2022, decided to exclude several publishers from its search distribution marketplace. This shift in pricing strategy significantly reduced search revenue from Bing to less than 5% of PERI's revenue in 2H24.
2. **Decline in Standard Video and Display Formats**: Perion also saw a recent decline in revenue from standard video and display formats, reflecting market conditions and a shift towards higher premium formats.

In summary, the decline in revenue and cost of goods sold in Q2 2024 was primarily due to Microsoft Bing's changes to its search distribution marketplace and a decline in revenue from standard video and display formats.

|code|Ticker|Name|Date|Total Revenue|Net Income|market_code|
|---|---|---|---|---|---|---|
|PERI|PERI.O|Perion Network|2023 Q3|1.85305E8|3.2821E7|185|
|PERI|PERI.O|Perion Network|2023 Q4|2.3423E8|3.9401E7|185|
|PERI|PERI.O|Perion Network|2024 Q1|1.5782E8|1.1768E7|185|
|PERI|PERI.O|Perion Network|2024 Q2|1.08691E8|-6209000|185|