Inuvo Reports 21% Year-Over-Year Revenue Growth to $20.8 Million for the Fourth Quarter of 2023
Gross profit increased by
Gross margin for the fourth quarter of 2023 increased to
Inuvo management to host conference call today at 4:15 PM ET
LITTLE ROCK, Ark., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE American: INUV), a leading provider of marketing technology, powered by artificial intelligence (AI) that serves brands and agencies, today provided a business update and announced its financial results for the fourth quarter and full year ended December 31, 2023.
Q4 2023 Financial Highlights (year-over-year):
- Revenue increased
21% to$20.8 million in Q4 2023 - Gross profit increased
55% to$18.2 million in Q4 2023 - Gross margin increased to
87.3% in Q4 2023 from68.0% in Q4 2022 - Adjusted EBITDA loss improved by
$600 thousand and net loss improved by$1.6 million in Q4 2023
2023 Operational Highlights:
- Clients now include a top three auto, technology and retail company
- Introduced two new higher margin products in 2023
- Hired advertising agency insider Barry Lowenthal as President
- Signed 56 new agencies/brands and one new platform during the year
- Increased brand awareness with 35 media mentions
- Company had an all-time high Q3 2023 quarter of
$24.6 million - Company revenue in the second half of 2023 increased
32% year-over-year
Richard Howe, CEO of Inuvo, stated, “I am pleased to report we achieved solid financial results for the fourth quarter of 2023, with revenue increasing
Mr. Howe continued, “With the demise of the third-party cookie in 2024, led by Apple and Google, IntentKey stands ready to power the next generation of digital advertising through privacy-forward, cookieless audience discovery and targeting capabilities that more accurately reflect why audience segments convert, and adapt faster to changes within those segments driving better results for advertisers. Consequently, I am pleased to report that our sales pipeline is robust and the outlook for 2024 is quite promising.”
Financial Results for the Fourth Quarter and Full Year Ended December 31, 2023
Net revenue for the fourth quarter of 2023 totaled
Cost of revenue for the fourth quarter of 2023, totaled
Gross profit for the fourth quarter of 2023 and full year ended December 31, 2023 totaled
Operating expenses for the fourth quarter of 2023 totaled
Other expense/income for the fourth quarter of 2023 and the full year ended December 31, 2023 contributed
Net loss for the fourth quarter of 2023 was
Adjusted EBITDA [see reconciliation table below] was a loss of approximately
Liquidity and Capital Resources:
On December 31, 2023, Inuvo had
As of December 31, 2023, Inuvo had 137,983,918 common shares issued and outstanding.
Conference Call Details:
Date: Thursday, February 29, 2024
Time: 4:15 p.m. Eastern Standard Time
Toll-free Dial-in Number: 1- 888-886-7786
International Dial-in Number: 1- 416-764-8658
Conference ID: 21240883
Webcast Link: HERE
A telephone replay will be available through Thursday, March 14, 2024. 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 21240883 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. 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, 2023, as filed on February 29, 2024, 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 fourth 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
Investor Relations:
David Waldman / Natalya Rudman
Crescendo Communications, LLC
Tel: (212) 671-1020
inuv@crescendo-ir.com
| (Tables follow) | |||||||||||||||
| INUVO, INC. | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31 | December 31 | December 31 | December 31 | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net revenue | $ | 20,842,095 | $ | 17,270,886 | $ | 73,911,528 | $ | 75,603,745 | |||||||
| Cost of revenue | 2,643,543 | 5,527,244 | 10,477,272 | 30,244,387 | |||||||||||
| Gross profit | 18,198,552 | 11,743,642 | 63,434,256 | 45,359,358 | |||||||||||
| Operating expenses | |||||||||||||||
| Marketing costs | 15,212,600 | 10,143,119 | 51,982,572 | 36,921,139 | |||||||||||
| Compensation | 3,591,109 | 2,852,084 | 13,793,309 | 12,463,095 | |||||||||||
| Selling, general and administrative | 1,821,821 | 2,680,971 | 8,050,890 | 8,624,998 | |||||||||||
| Total operating expenses | 20,625,530 | 15,676,174 | 73,826,771 | 58,009,232 | |||||||||||
| Operating loss | (2,426,978 | ) | (3,932,532 | ) | (10,392,515 | ) | (12,649,874 | ) | |||||||
| Interest (expense) income, net | 7,884 | (10,033 | ) | (29,570 | ) | (21,111 | ) | ||||||||
| Other income (loss), net | - | (34,218 | ) | 14,668 | (435,554 | ) | |||||||||
| Income tax benefit | 17,764 | - | 17,764 | - | |||||||||||
| Net loss | (2,401,330 | ) | (3,976,783 | ) | (10,389,653 | ) | (13,106,539 | ) | |||||||
| Other comprehensive income | |||||||||||||||
| Unrealized loss on marketable securities | - | 47,634 | 84,868 | (138,605 | ) | ||||||||||
| Comprehensive loss | (2,401,330 | ) | (3,929,149 | ) | (10,304,785 | ) | (13,245,144 | ) | |||||||
| Earnings per share, basic and diluted | |||||||||||||||
| Net loss income | ($ | 0.02 | ) | ($ | 0.03 | ) | ($ | 0.08 | ) | ($ | 0.11 | ) | |||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 127,381,051 | 119,995,367 | 131,116,370 | 119,826,036 | |||||||||||
| Diluted | 127,381,051 | 119,995,367 | 131,116,370 | 119,826,036 | |||||||||||
| INUVO, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| December 31 | December 31 | |||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Cash and cash equivalent | $ | 4,440,454 | $ | 2,931,415 | ||
| Marketable securities-short term | - | 1,529,464 | ||||
| Accounts receivable, net | 9,226,956 | 11,119,892 | ||||
| Prepaid expenses and other current assets | 1,076,121 | 798,977 | ||||
| Total current assets | 14,743,531 | 16,379,748 | ||||
| Property and equipment, net | 1,680,788 | 1,668,972 | ||||
| Goodwill | 9,853,342 | 9,853,342 | ||||
| Intangible assets, net of accumulated amortization | 4,664,791 | 5,649,291 | ||||
| Other assets | 1,431,692 | 2,005,957 | ||||
| Total assets | $ | 32,374,144 | $ | 35,557,310 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 6,432,120 | $ | 8,044,802 | ||
| Accrued expenses and other current liabilities | 8,100,354 | 5,550,984 | ||||
| Total current liabilities | 14,532,474 | 13,595,786 | ||||
| Long-term liabilities | 859,484 | 212,208 | ||||
| Total stockholders' equity | 16,982,186 | 21,749,316 | ||||
| Total liabilities and stockholders' equity | $ | 32,374,144 | $ | 35,557,310 | ||
| RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED EBITDA | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| December 31 | December 31 | December 31 | December 31 | ||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Net loss | (2,401,330 | ) | (3,976,783 | ) | $ | (10,389,653 | ) | $ | (13,106,539 | ) | |||
| Interest (Income) Expense | (7,884 | ) | 10,033 | 29,570 | 21,111 | ||||||||
| Income tax benefit | (17,764 | ) | (17,764 | ) | |||||||||
| Depreciation | 425,106 | 402,989 | 1,670,868 | 1,527,663 | |||||||||
| Amortization | 264,523 | 276,738 | 1,080,690 | 1,175,222 | |||||||||
| EBITDA | (1,737,349 | ) | (3,287,023 | ) | (7,626,289 | ) | (10,382,543 | ) | |||||
| Stock-based compensation | 514,613 | 459,323 | 1,986,296 | 2,350,314 | |||||||||
| Non recurring items: | |||||||||||||
| Expense of fraudulent media | 1,367,800 | ||||||||||||
| Unrealized loss on marketable securities | 34,218 | 14,668 | 435,554 | ||||||||||
| Doubtful account reserve | - | 975,243 | 361,097 | 1,237,774 | |||||||||
| Adjusted EBITDA | (1,222,736 | ) | (1,818,239 | ) | (5,264,228 | ) | (4,991,101 | ) | |||||
Reconciliation of Operating 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.
