Perion Network (PERI -11.90%) stock is getting hit with big sell-offs in Wednesday's trading. The ad tech company's share price was down 11.7% as of 12:40 p.m. ET and had been off as much as 15.2% earlier today.

Perion reported its fourth-quarter results before the market opened this morning, and investors are having a strong bearish reaction. Besides posting sales that fell slightly short of the average Wall Street target, the company also issued guidance that was way below the mark.

Perion stock slips on a Q4 sales miss and weak guidance

In the fourth quarter, Perion posted adjusted earnings per share of $0.33 on sales of $129.6 million. While the profit for the period was in line with expectations, revenue missed the average analyst estimate by roughly $840,000. Sales for the period were down 44.7% year over year, and adjusted earnings per share were down 68% compared to the prior-year period.

What comes next for Perion?

For this year, Perion is guiding for sales to come in between $400 million and $420 million. That fell far short of the average Wall Street forecast, which had called for sales of roughly $468.8 million across the stretch. Management also guided for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $40 million and $42 million.

At the midpoint of its guidance range, Perion's sales target would mean an annual revenue decline of 17.7%. That stems in part from the company prioritizing its new Perion One platform and artificial intelligence (AI) focus as part of an initiative to improve long-term sales growth and profitability. The shift could pay off in the long run, but the forecast suggests it will cause some significant growing pains this year.