Inuvo Posts Record Q1 2025 Revenue of $26.7M, up 57% Year-Over-Year

Rhea-AI Summary

Inuvo (NYSE American: INUV) reported record Q1 2025 revenue of $26.7 million, marking a 57% increase from Q1 2024's $17.0 million. The company's gross profit rose 41% to $21.1 million, while net loss per share improved to $0.01 from $0.02 year-over-year. The growth was driven by a 61% increase in Platforms revenue and a 31% increase in Agencies & Brands. Key operational highlights include the launch of an enhanced IntentKey Self-Serve Platform, addition of 20 new IntentKey clients, and introduction of zip code-level audience insights. Despite higher operating expenses of $22.9 million, Adjusted EBITDA loss narrowed to $22,000 from $1.0 million in Q1 2024. As of March 31, 2025, Inuvo maintained a solid financial position with $2.6 million in cash, a $10.0 million unused working capital facility, and no debt.

Positive

• Record quarterly revenue of $26.7M, up 57% YoY
• Significant improvement in Adjusted EBITDA loss from $1.0M to just $22K
• Strong growth in both business segments: Platforms (+61%) and Agencies & Brands (+31%)
• Healthy balance sheet with no debt and $10M unused working capital facility
• Net loss per share improved from $0.02 to $0.01

Negative

• Gross profit margin declined from 87.7% to 79% due to product mix changes
• Operating expenses increased to $22.9M from $17M YoY
• Still operating at a net loss of $1.3M
• Cash position of $2.6M is relatively low considering the business scale

Insights

Financial Analyst

Inuvo delivers exceptional 57% revenue growth to record levels while dramatically reducing losses and nearly reaching EBITDA breakeven.

Inuvo's Q1 2025 results reveal impressive momentum with $26.7 million in revenue representing a 57% year-over-year increase - marking the highest quarterly revenue in company history. This is particularly notable as Q1 typically represents their seasonally weakest quarter, suggesting potential for stronger performance ahead.

The company demonstrated strong top-line growth across both segments, with Platforms up 61% and Agencies & Brands growing 31%. Gross profit increased 41% to $21.1 million, though gross margin contracted from 87.7% to 79% due to product mix changes.

Near-term profitability is improving significantly. Net loss per share was cut in half to $0.01 from $0.02 year-over-year, while Adjusted EBITDA loss shrunk dramatically to just $22,000 from $1 million in Q1 2024 - putting the company at virtual breakeven.

The company's balance sheet remains solid with $2.6 million in cash, no debt, and $10 million in untapped credit. The $610,000 employee retention credit from the IRS provided an unexpected boost to other income.

Operationally, Inuvo's AI-powered IntentKey platform continues gaining traction with 20 new clients added and 15 self-service clients now using the enhanced self-serve platform. The company's zip code-level audience targeting capabilities represent a competitive advantage in precision marketing.

The narrowing losses and accelerating revenue growth suggest Inuvo may be approaching an inflection point toward sustained profitability if current growth trends continue through 2025.

Management to host conference call at 8:30 AM ET, Friday, May 9, 2025

LITTLE ROCK, Ark., May 09, 2025 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today provided a business update and announced its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights:

• Revenue was a record $26.7 million; a 57% increase compared to $17.0 million in Q1. 2024; highest revenue in the Company’s history.
• Gross profit increased 41% to $21.1 million, compared to $14.9 million in Q1 2024.
• Net loss per share was $0.01 compared to $0.02 in the prior year.  
• Adjusted EBITDA loss was $22 thousand, compared to a loss of $1.0 million for Q1 2024.

First Quarter 2025 Operational Highlights:

• The company launched the enhanced IntentKey Self-Serve Platform, an advanced AI agent for audience discovery and targeting.
• The company added 20 new IntentKey clients and now has 15 self-service clients. 
• The company introduced IntentKey zip code-level audience insights and targeting.
• The company materially grew both Platform and the Agencies & Brands product lines. 

Richard Howe, CEO of Inuvo, stated, “I’m thrilled to announce another record quarter, our second consecutive, with 57% year-over-year growth driven by both product lines. As Q1 is typically our weakest quarter, this strong performance sets a positive tone for the year ahead.” Mr. Howe added, “Our Platform product is benefiting from technology and service enhancements initiated in late 2023, while Agencies & Brands are thriving with enhanced capabilities that enable marketers to quickly identify and target virtually any audience they can conceive, in minutes.”

Financial Results for the First Quarter Ended March 31,2025

Net revenue for the first quarter of 2025 totaled $26.7 million, compared to $17.0 million for the same period last year. The increase in revenue for the three-month period ended March 31, 2025, compared to the same period in the prior year came from a 61% increase within Platforms and a 31% increase within Agencies & Brands.

Cost of revenue for the first quarter of 2025 totaled $5.6 million, compared to $2.1 million for the same period last year. The increase in the cost of revenue for the three months ended March 31, 2025, as compared to the same period last year, was related to higher Platform revenue and the introduction of a new product.

Gross profit for the three months ended March 31, 2025, totaled $21.1 million as compared to $14.9 million for the same period last year. Gross profit margin for the three months ended March 31, 2025, was 79% as compared to 87.7% for the same period last year. The lower gross margin was due to changes in product mix.

Operating expenses for the three months ended March 31, 2025, totaled $22.9 million compared to $17 million for the same period last year. Operating expenses are composed of marketing costs, compensation and general & administrative expenses. For the three-months ended March 31, 2025, all three categories of operating expense increased year-over-year.

Marketing costs increased due to the higher expenses associated with Platform revenue growth. Compensation expense was higher due primarily to a one-time accrual of an employee benefit of $335,000 and to higher incentive accrual. General and administrative expense was $1.1 million higher year-over-year primarily due to a reduction of the allowance for expected credit losses last year.

Finance expense, net of interest income, for the three months ended March 31, 2025, was $28 thousand compared to $20 thousand in the same quarter last year. Finance expense this year included $77 thousand of interest income from the Internal Revenue Service (IRS) for a delayed employee retention credit.

Other income was approximately $541 thousand for the three months ended March 31, 2025 in comparison with $0 for the same quarter in 2024. In March 2025, the Company received a payment from the IRS totaling $610 thousand in connection with an employee retention credit filed in 2023. Of the total payment, $533 thousand was recognized in other Income.

Net loss for the first quarter of 2025 was $1.3 million, or $0.01 per basic and diluted share, as compared to net loss of $2.1 million, or $0.02 per basic and diluted share, for the same period last year.

Adjusted EBITDA [see reconciliation table below] was near break-even at a loss of approximately $22 thousand in the first quarter of 2025 compared to a loss of approximately $1.0 million for the same period last year.

Liquidity and Capital Resources:

On March 31, 2025, Inuvo had $2.6 million in cash and cash equivalents, an unused working capital facility of $10.0 million and no debt.

As of May 2, 2025, Inuvo had 144,253,434 common shares issued and outstanding.

Conference Call Details: 

Date: Friday, May 9, 2025
Time: 8:30 a.m. Eastern Time
Toll-free Dial-in Number: 1-800-717-1738
International Dial-in Number: 1- 646-307-1865
Conference ID: 11109974
Webcast Link: HERE

A telephone replay will be available through Friday, May 23, 2025. To access the replay, please dial 1- 844-512-2921 (domestic) or 1- 412-317-6671 (international). At the system prompt, please enter the code 11109974 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

About Inuvo
Inuvo®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey® AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visit www.inuvo.com.

Safe Harbor / Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Inuvo’s quarter-end financial close process and preparation of financial statements for the quarter that are subject to risks and uncertainties that could cause results to be materially different than expectations. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in Inuvo, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on February 27, 2025, and our other filings with the SEC.  Additionally, forward looking statements are subject to certain risks, trends, and uncertainties including the continued impact of Covid-19 on Inuvo’s business and operations. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.

Inuvo Company Contact:
Wally Ruiz
Chief Financial Officer
Tel (501) 205-8397
wallace.ruiz@inuvo.com 

(Tables follow)

INUVO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

		Three Months Ended
		March 31				March 31
			2025				2024
Net revenue		$	26,708,032			$	17,023,777
Cost of revenue			5,620,941				2,099,042
Gross profit			21,087,091				14,924,735
Operating expenses:
Marketing costs			17,512,994				13,102,644
Compensation			3,599,321				3,224,859
General and administrative			1,744,563				688,510
Total operating expenses			22,856,878				17,016,013
Operating loss			(1,769,787	)			(2,091,278	)
Interest expense, net			27,929				20,380
Other income			(540,571	)			-
Income tax expense			2,676				-
Net loss		$	(1,259,821	)		$	(2,111,658	)
Other comprehensive income:
Unrealized gain (loss) on marketable securities			-				-
Comprehensive income (loss)		$	(1,259,821	)		$	(2,111,658	)
Net loss per share, basic and diluted		($	0.01	)		($	0.02	)
Weighted average shares outstanding:
Basic			142,719,274				138,789,669
Diluted			142,719,274				138,789,669

INUVO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
		March 31			December 31
			2025			2024
Assets
Cash and cash equivalent		$	2,561,993		$	2,459,245
Accounts receivable, net			12,022,440			12,545,771
Prepaid expenses and other current assets			738,995			639,805
Total current assets			15,323,428			15,644,821
Property and equipment, net			1,793,966			1,792,903
Goodwill			9,853,342			9,853,342
Intangible assets, net of accumulated amortization			3,777,499			3,897,875
Other assets			943,956			1,006,990
Total assets		$	31,692,191		$	32,195,931
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$	7,257,005		$	8,422,351
Accrued expenses and other current liabilities			10,221,581			9,463,537
Total current liabilities			17,478,586			17,885,888
Long-term liabilities			766,891			835,271
Total stockholders' equity			13,446,714			13,474,772
Total liabilities and stockholders' equity		$	31,692,191		$	32,195,931

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(unaudited)
		Three Months Ended
		March 31				March 31
			2025				2024
Net loss		$	(1,259,821	)		$	(2,111,658	)
Interest expense, net			27,929				20,380
Income tax expense			2,676				-
Depreciation and amortization			568,042				673,203
EBITDA			(661,174	)			(1,418,075	)
Stock-based compensation			304,284				396,312
Non recurring items:
Employee Benefit			335,000				-
Adjusted EBITDA		$	(21,890	)		$	(1,021,763	)

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA 

We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as Net loss plus (i) interest expense, (ii) depreciation, and (iii) amortization. We further define Adjusted EBITDA as EBITDA plus (iv) stock-based compensation and (v) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

FAQ

What was Inuvo's (INUV) revenue growth in Q1 2025?

Inuvo reported record Q1 2025 revenue of $26.7 million, representing a 57% increase compared to $17.0 million in Q1 2024.

How much did INUV's Platform revenue grow in Q1 2025?

Inuvo's Platform revenue grew by 61% in Q1 2025 compared to the same period last year.

What is Inuvo's (INUV) current debt situation?

As of March 31, 2025, Inuvo had no debt, $2.6 million in cash, and an unused working capital facility of $10.0 million.

How did INUV's gross profit margin change in Q1 2025?

Inuvo's gross profit margin decreased from 87.7% in Q1 2024 to 79% in Q1 2025 due to changes in product mix.

What operational achievements did Inuvo (INUV) report in Q1 2025?

Inuvo launched an enhanced IntentKey Self-Serve Platform, added 20 new IntentKey clients, gained 15 self-service clients, and introduced zip code-level audience insights and targeting.