Fluent Announces Third Quarter 2020 Financial Results
- Q3 2020 revenue of
$78.3 million , up21% over Q3 2019 - Net income of
$1.2 million, or$0.01 per share - Media margin of
$29.7 million , up39% over Q3 2019 and representing37.9% of revenue - Adjusted EBITDA of
$11.6 million , up167% over Q3 2019 and representing14.8% of revenue - Adjusted net income of
$6.3 million , or$0.08 per share
NEW YORK, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT), a leading data-driven performance marketing company, today reported financial results for the third quarter ended 2020.
Ryan Schulke, Fluent’s Chief Executive Officer, commented, "We are pleased to post a solid third quarter in terms of performance and results, as we continue to leverage and expand our business and performance marketplace, as well as evolve best practices for the long term.”
“Innovation was an important theme underpinning the quarter’s results, particularly relating to Fluent’s product and platform, which we see as a reflection of our team’s agility and adaptability through these highly unusual times. I again want to thank all of our employees for their exceptional work under the most difficult of circumstances and to reiterate that Fluent remains resilient and steadfast in striving to support our colleagues, clients, consumers and communities.”
Third Quarter Financial Summary
- Q3 2020 revenue of
$78.3 million, up21% over Q3 2019 - Net income of
$1.2 or$0.01 per share, compared to net loss of$4.5 million , or$0.06 per share, in Q3 2019 - Media margin of
$29.7 million , an increase of39% over Q3 2019 and representing37.9% of revenue - Adjusted EBITDA of
$11.6 million , an increase of167% over Q3 2019 and representing14.8% of revenue - Adjusted net income of
$6.3 million, or$0.08 per share
Media margin, adjusted EBITDA and adjusted net income (loss) are non-GAAP financial measures, as defined and reconciled below.
Business Outlook
- Early indicators for Q4 2020 point to seasonal lift, albeit with visibility constrained by unique circumstances regarding the election, the COVID-19 pandemic and holiday shopping patterns.
- The Media & Entertainment vertical remains the Company’s most significant growth driver, underpinned by direct relationships in the Streaming Services and Mobile Gaming categories.
- Q3 2020 revenue from engaging consumers in international markets, primarily the UK, grew sequentially as compared with Q2 2020, and represented more than
5% of total company revenue in the quarter. - Notwithstanding the extraordinary challenges imposed by the global pandemic, the Company's business and operations have remained on solid footing.
Conference Call
Fluent, Inc. will host a conference call on Thursday, October 29, 2020 at 4:30 PM ET to discuss its 2020 third quarter financial results. To listen to the conference call on your telephone, please dial (888) 339-0797 for domestic callers, or (412) 317-5248 for international callers. To access the live audio webcast, visit the Fluent website at investors.fluentco.com. Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please dial (877) 344-7529 or (412) 317-0088 with the replay passcode 10149165. The replay will also be available for one week on the Fluent website at investors.fluentco.com.
About Fluent, Inc.
Fluent (NASDAQ: FLNT) is a leading performance marketing company with expertise in creating meaningful connections between consumers and brands. Leveraging our proprietary first-party database of opted-in consumer profiles, Fluent drives intelligent growth strategies that deliver superior outcomes. Founded in 2010, the company is headquartered in New York City. For more information, visit www.fluentco.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The matters contained in this press release may be considered to be “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Those statements include statements regarding the intent, belief or current expectations or anticipations of Fluent and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: compliance with a significant number of governmental laws and regulations, including those laws and regulations regarding privacy and data; failure to safeguard the personal information and other data contained in our database; unfavorable global economic conditions, including as a result of health and safety concerns around the ongoing COVID-19 pandemic; failure to compete effectively against other online marketing and advertising companies; dependence on third-party publishers, internet search providers and social media platforms for a significant portion of visitors to our websites; dependence on our key personnel; dependence on emails, text messages and telephone calls, among other channels, to reach users for marketing purposes; competition we face for web traffic; ability to compete and manage media costs in an industry characterized by rapidly-changing internet media and advertising technology, evolving industry standards, regulatory uncertainty, and changing user and client demands; liability related to actions of third-party publishers; limitations on our or our third-party publishers’ ability to collect and use data derived from user activities; ability to remain competitive with the shift of online interactions from computers to mobile devices; dependence on third-party service providers; management of the growth of our operations, including the integration of the AdParlor and Winopoly businesses and other acquired business units or personnel; management of unfavorable publicity and negative public perception about our industry; failure to meet our clients’ performance metrics or changing needs; risks associated with the expansion of our international operations; failure to detect click-through or other fraud on advertisements; achievement of some or all of the benefits that we expect to achieve as a stand-alone company; failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; compliance with the covenants of our credit agreement; and the potential for failures in our internal control over financial reporting. These and additional factors to be considered are set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and in our other filings with the Securities and Exchange Commission. Fluent undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.
FLUENT, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
(unaudited)
| September 30, 2020 | December 31, 2019 | |||||||
| ASSETS: | ||||||||
| Cash and cash equivalents | $ | 15,394 | $ | 18,679 | ||||
| Accounts receivable, net of allowance for doubtful accounts of | 59,411 | 60,915 | ||||||
| Prepaid expenses and other current assets | 2,878 | 1,921 | ||||||
| Total current assets | 77,683 | 81,515 | ||||||
| Restricted cash | 1,480 | 1,480 | ||||||
| Property and equipment, net | 2,396 | 2,863 | ||||||
| Operating lease right-of-use assets | 8,665 | 9,865 | ||||||
| Intangible assets, net | 48,149 | 55,603 | ||||||
| Goodwill | 165,088 | 164,774 | ||||||
| Other non-current assets | 1,852 | 993 | ||||||
| Total assets | $ | 305,313 | $ | 317,093 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||
| Accounts payable | $ | 7,478 | $ | 21,574 | ||||
| Accrued expenses and other current liabilities | 26,229 | 20,358 | ||||||
| Deferred revenue | 2,440 | 1,140 | ||||||
| Current portion of long-term debt | 4,750 | 6,873 | ||||||
| Current portion of operating lease liability | 2,283 | 2,282 | ||||||
| Total current liabilities | 43,180 | 52,227 | ||||||
| Long-term debt, net | 36,388 | 44,098 | ||||||
| Operating lease liability | 7,736 | 9,056 | ||||||
| Other non-current liabilities | 1,865 | 775 | ||||||
| Total liabilities | 89,169 | 106,156 | ||||||
| Contingencies | ||||||||
| Shareholders' equity: | ||||||||
| Preferred stock — | — | — | ||||||
| Common stock — | 40 | 39 | ||||||
| Treasury stock, at cost — 3,936,755 and 2,768,399 shares, respectively | (9,974 | ) | (8,184 | ) | ||||
| Additional paid-in capital | 411,165 | 406,198 | ||||||
| Accumulated deficit | (185,087 | ) | (187,116 | ) | ||||
| Total shareholders' equity | 216,144 | 210,937 | ||||||
| Total liabilities and shareholders' equity | $ | 305,313 | $ | 317,093 | ||||
FLUENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | 78,280 | $ | 64,552 | $ | 228,723 | $ | 201,673 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of revenue (exclusive of depreciation and amortization) | 52,771 | 44,568 | 158,402 | 138,530 | ||||||||||||
| Sales and marketing (1) | 2,925 | 2,717 | 8,643 | 9,209 |
Fluent, Inc.
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About FLNTfluent (nasdaq:flnt) is the trusted acquisition partner for both established and growing brands. leveraging our proprietary first party data asset, fluent creates marketing programs that deliver better digital advertising experiences for consumers and measurable results for advertisers. founded in 2010, the company is headquartered in new york city. for more information, visit www.fluentco.com.
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