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Inuvo Reports 23.6% Year-Over-Year Revenue Growth to $35.2 Million for the First Half of 2024

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Inuvo Inc (NYSE American: INUV) reported strong financial results for Q2 2024 and the first half of the year. Revenue increased 9.4% to $18.2 million in Q2 and 23.6% to $35.2 million for H1 2024. The company's IntentKey AI technology continues to outperform competitors in audience targeting without using consumer data or cookies. Inuvo is making progress with its self-service and predictive media mix modeling products, expecting to sign a master services agreement with its largest retail client in Q3 2024.

Financial highlights include a 62% improvement in Adjusted EBITDA loss and a 48% reduction in net loss for Q2 2024. The company also secured a $10 million credit line and reported preliminary unaudited revenue of $7.7 million for July 2024, showing continued growth.

Inuvo Inc (NYSE American: INUV) ha riportato risultati finanziari solidi per il secondo trimestre del 2024 e il primo semestre dell'anno. I ricavi sono aumentati del 9,4% fino a 18,2 milioni di dollari nel Q2 e del 23,6% fino a 35,2 milioni di dollari per il primo semestre del 2024. La tecnologia IntentKey AI dell'azienda continua a superare i concorrenti nel targeting del pubblico senza utilizzare dati dei consumatori o cookie. Inuvo sta progredendo con i suoi prodotti di modellazione del mix media predittivo e self-service, prevedendo di firmare un accordo di servizi master con il suo più grande cliente al dettaglio nel terzo trimestre del 2024.

I punti salienti finanziari includono un 62% di miglioramento nella perdita di EBITDA rettificata e una riduzione del 48% della perdita netta per il Q2 del 2024. L'azienda ha anche ottenuto una linea di credito di 10 milioni di dollari e ha riportato ricavi preliminari non verificati di 7,7 milioni di dollari per luglio 2024, dimostrando una crescita continua.

Inuvo Inc (NYSE American: INUV) informó resultados financieros sólidos para el segundo trimestre de 2024 y la primera mitad del año. Los ingresos aumentaron un 9.4% hasta 18.2 millones de dólares en el Q2 y un 23.6% hasta 35.2 millones de dólares para la primera mitad de 2024. La tecnología IntentKey AI de la compañía sigue superando a sus competidores en el targeting de audiencias sin utilizar datos de consumidores o cookies. Inuvo está avanzando con sus productos de modelado de mezcla media autogestionados y predictivos, y espera firmar un acuerdo de servicios maestro con su mayor cliente minorista en el Q3 de 2024.

Los aspectos financieros destacados incluyen una mejora del 62% en la pérdida de EBITDA ajustado y una reducción del 48% en la pérdida neta para el Q2 de 2024. La compañía también aseguró una línea de crédito de 10 millones de dólares y reportó ingresos preliminares no auditados de 7.7 millones de dólares para julio de 2024, mostrando un crecimiento continuo.

Inuvo Inc (NYSE American: INUV)는 2024년 2분기 및 상반기 강력한 재무 결과를 보고했습니다. 2분기 매출은 9.4% 증가하여 1820만 달러에 달하고, 상반기에는 23.6% 증가하여 3520만 달러에 이릅니다. 이 회사의 IntentKey AI 기술는 소비자 데이터나 쿠키를 사용하지 않고도 경쟁자들에 비해 관객 타겟팅에서 뛰어난 성과를 내고 있습니다. Inuvo는 셀프 서비스 및 예측 미디어 믹스 모델링 제품에서 진전을 이루고 있으며, 2024년 3분기에는 최대 소매 고객과 마스터 서비스 계약을 체결할 것으로 예상하고 있습니다.

재무 하이라이트로는 조정 EBITDA 손실의 62% 개선순 손실의 48% 감소가 있습니다. 회사는 또한 1천만 달러의 신용 한도를 확보하였으며, 2024년 7월의 초기 비감사 매출이 770만 달러로 보고되어 지속적인 성장을 보여주고 있습니다.

Inuvo Inc (NYSE American: INUV) a annoncé de solides résultats financiers pour le deuxième trimestre de 2024 et la première moitié de l'année. Le chiffre d'affaires a augmenté de 9,4% pour atteindre 18,2 millions de dollars au T2 et de 23,6% pour atteindre 35,2 millions de dollars pour le premier semestre 2024. La technologie IntentKey AI de l'entreprise continue de surpasser ses concurrents dans le ciblage d'audience sans utiliser de données consommateurs ou de cookies. Inuvo progresse avec ses produits de modélisation du mix media autogéré et prédictif, s'attendant à signer un contrat de services principal avec son plus grand client de détail au T3 2024.

Les points forts financiers incluent une amélioration de 62% de la perte EBITDA ajustée et une réduction de 48% de la perte nette pour le T2 2024. L'entreprise a également obtenu une ligne de crédit de 10 millions de dollars et a rapporté des revenus préliminaires non audités de 7,7 millions de dollars pour juillet 2024, montrant une croissance continue.

Inuvo Inc (NYSE American: INUV) hat für das 2. Quartal 2024 und die erste Hälfte des Jahres starke finanzielle Ergebnisse gemeldet. Der Umsatz stieg im 2. Quartal um 9,4% auf 18,2 Millionen Dollar und um 23,6% auf 35,2 Millionen Dollar in der ersten Hälfte des Jahres 2024. Die IntentKey AI Technologie des Unternehmens übertrifft weiterhin die Wettbewerber im Publikumstracking, ohne Verbraucherdaten oder Cookies zu verwenden. Inuvo macht Fortschritte mit seinen Produkten für Selbstbedienung und prädiktives Medienmix-Modellieren und erwartet, im 3. Quartal 2024 einen Master-Service-Vertrag mit seinem größten Einzelhandelskunden zu unterzeichnen.

Die finanziellen Highlights umfassen eine 62% Verbesserung des bereinigten EBITDA-Verlusts und eine 48% Reduzierung des Nettoverlusts im 2. Quartal 2024. Das Unternehmen sicherte sich auch eine Kreditlinie von 10 Millionen Dollar und berichtete von vorläufigen, nicht geprüften Einnahmen von 7,7 Millionen Dollar für Juli 2024, was ein fortgesetztes Wachstum zeigt.

Positive
  • Revenue increased 9.4% to $18.2 million in Q2 2024
  • Revenue grew 23.6% year-over-year to $35.2 million in H1 2024
  • Adjusted EBITDA loss improved 62% to $668,000 in Q2 2024
  • Net loss reduced by 48% to $1.7 million in Q2 2024
  • Secured $10.0 million credit line
  • Preliminary unaudited revenue in July 2024 was $7.7 million, higher than H1 2024 monthly average
  • Gross profit margin for H1 2024 improved to 85.8% from 80.5% in the same period last year
  • IntentKey AI technology outperforms competitors in audience targeting without using consumer data
  • Self-serve product boasts high margins, with gross profit ranging from 85-95%
Negative
  • Company still reported a net loss of $1.7 million in Q2 2024
  • Adjusted EBITDA remained negative at $668,000 loss in Q2 2024
  • Operating expenses increased to $34.0 million for H1 2024 compared to $29.7 million in the same period last year

Insights

Inuvo's Q2 2024 results show promising growth trends, but challenges remain. Revenue increased by 9.4% YoY to $18.2 million, while H1 2024 revenue grew 23.6% to $35.2 million. The company's focus on AI-driven advertising solutions, particularly the IntentKey platform, appears to be gaining traction.

Notably, gross profit margins improved to 85.8% for H1 2024, up from 80.5% in the same period last year. This indicates better cost management and potentially higher-value contracts. However, Inuvo still reported a net loss of $1.7 million in Q2, albeit reduced by 48% YoY.

The secured $10 million credit line provides additional financial flexibility, but investors should monitor cash burn rates. With $2 million in cash and the new credit facility, Inuvo has improved its liquidity position, which is important for funding growth initiatives in the competitive AI advertising space.

Inuvo's IntentKey platform stands out as a pioneering solution in the AI-driven advertising landscape. As the first large language generative AI capable of targeting audiences without using consumer data or cookies, it addresses growing privacy concerns while potentially offering superior performance.

The company's expansion into self-service and predictive media mix modeling products is strategically sound. Self-serve models with 85-95% gross profit margins could significantly boost profitability if widely adopted. The media mix modeling offering positions Inuvo as a more strategic partner to clients, potentially leading to larger, more stable contracts.

However, the AI advertising space is highly competitive. Inuvo must continue innovating and expanding its client base to maintain its technological edge. The pending master services agreement with a major retail client is a positive sign, but consistent execution will be key to long-term success in this rapidly evolving sector.

Revenue increased 9.4% to $18.2 million in Q2 2024

Inuvo management to host conference call today at 4:15 PM ET

LITTLE ROCK, Ark., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE American: INUV), provider of the first generative artificial intelligence (AI) advertiser solution made specifically for brands and agencies, today provided a business update, and announced its financial results for the second quarter ended June 30, 2024.

Q2 2024 Financial Highlights (year-over-year) and Subsequent Events:

  • Revenue increased 9.4% to $18.2 million in Q2 2024
  • Adjusted EBITDA loss improved 62% to a loss of $668 thousand in Q2 2024
  • Net loss reduced by 48% to a loss of $1.7 million in Q2 2024
  • Secured $10.0 million credit line
  • Preliminary unaudited revenue in July 2024 was $7.7 million as compared to approximately $5.9 million monthly average through the first half of 2024

Richard Howe, CEO of Inuvo, stated, “We are pleased to report that revenue increased by 23.6% year-over-year to $35.2 million in the first half of 2024. Additionally, in the second quarter, we achieved 9.4% year-over-year growth, with revenues reaching $18.2 million. Furthermore, adjusted EBITDA, net loss and free-cash-flow all improved within the first half of 2024.”

The IntentKey remains the first and only large language generative artificial intelligence capable of identifying and targeting audiences without tracking or using consumer data or cookies and continues to outperform competitors by a significant margin. As the next evolution in digital advertising, IntentKey puts the power of Inuvo’s proprietary audience discovery and targeting AI in the hands of marketers where it can be used as a managed or self-service.

Mr. Howe continued, “This year we are making significant strides towards the distribution of our self-service and predictive media mix modeling products with roughly a half dozen self-serve models built in the quarter and a number of media mix product sales cycles well underway. The self-serve product boasts high margins, with gross profit ranging from 85-95%. The media mix modeling provides the means for Inuvo to act in a more strategic capacity within clients. We also expect to sign in the 3rd quarter of 2024 a master services agreement with our largest retail client which provides Inuvo the opportunity to expand across their enterprise.”

Financial Results for the Three and Six Month Ended June 30, 2024

Net revenue for the second quarter of 2024 totaled $18.2 million, compared to $16.7 million for the same period last year. Net revenue for the six months ended June 30, 2024, totaled $35.2 million compared to $28.5 million for the same period last year.

Cost of revenue for the second quarter of 2024 totaled $2.9 million, compared to $2.4 million for the same period last year. Cost of revenue for the six months ended June 30, 2024, totaled $5.0 million as compared to $5.6 million for the same period last year. The decrease in the cost of revenue for the six months ended June 30, 2024, as compared to the same period last year, was related to the change in revenue mix due to higher revenue from Platform clients.

Gross profit for the three and six months ended June 30, 2024, totaled $15.3 million and $30.2 million, respectively, as compared to $14.3 million and $22.9 million, respectively, for the same periods last year. Gross profit margin for the three and six months ended June 30, 2024, was 84.0% and 85.8%, respectively, as compared to 85.8% and 80.5%, respectively, for the same periods last year.

Operating expenses for the three months ended June 30, 2024, totaled $17.0 million compared to $17.6 million for the same period last year. Operating expenses for the six months ended June 30, 2024, totaled $34.0 million compared to $29.7 million for the same period last year.

Finance expense was approximately $42 thousand and $38 thousand for the three months ended June 30, 2024 and 2023, respectively. Finance expense was approximately $62 thousand and $57 thousand for the six months ended June 30, 2024 and 2023, respectively.

Net loss for the second quarter of 2024 totaled $1.7 million, or $0.01 per basic and diluted share, as compared to net loss of $3.4 million, or $0.03 per basic and diluted share, for the same period last year. Net loss for the six months ended June 30, 2024, totaled $3.9 million, or $0.03 per basic and diluted share, as compared to net loss of $6.8 million, or $0.05 per basic and diluted share, for the same period last year.

Adjusted EBITDA [see reconciliation table below] was a loss of approximately $668 thousand in the second quarter of 2024, compared to a loss of approximately $1.8 million for the same period last year. Adjusted EBITDA was a loss of approximately $1.7 million for the six months ended June 30, 2024, compared to a loss of approximately $4.1 million for the same period last year.

While the company provided preliminary revenue for July 2024, it does not anticipate continuing to report preliminary unaudited monthly revenue and will provide additional financial information when Q3 2024 financial results are available.

Liquidity and Capital Resources:
As of June 30, 2024, Inuvo had $2.0 million in cash and cash equivalents and an unused working capital facility of $5.0 million and no debt.

As of August 2, 2024, Inuvo had 140,432,087 common shares issued and outstanding.

Subsequent Events:
In July 2024, Inuvo secured a three-year, $10 million line of credit to finance working capital needs.

Conference Call Details: 

Date: Thursday, August 8, 2024
Time: 4:15 p.m. Eastern Time 
Toll-free Dial-in Number: 1-800-717-1738
International Dial-in Number: 1-646-307-1865
Conference ID: 1174796
Webcast Link: HERE

A telephone replay will be available through Thursday, August 22, 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 1174796 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, 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 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

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 Six Months Ended
 June 30 June 30 June 30
 June 30
  2024   2023   2024   2023 
Net revenue$18,209,005  $16,651,405  $35,232,782  $28,498,845 
Cost of revenue 2,906,188   2,368,540   5,005,230   5,559,103 
Gross profit 15,302,817   14,282,865   30,227,552   22,939,742 
Operating expenses 84.0%  85.8%  85.8%  80.5%
Marketing costs 12,431,580   12,056,616   25,534,224   19,144,166 
Compensation 3,031,231   3,253,416   6,256,090   6,676,257 
Selling, general and administrative 1,539,393   2,311,885   2,227,903   3,893,774 
Total operating expenses 17,002,204   17,621,917   34,018,217   29,714,197 
Operating loss (1,699,387)  (3,339,052)  (3,790,665)  (6,774,455)
Interest expense 42,451   38,186   62,831   57,306 
Other income -   -   -   14,418 
Income tax expense 5,353   -   5,353   - 
Net loss$(1,747,191) $(3,377,238) $(3,858,849) $(6,817,343)
Other comprehensive income      
Unrealized loss on marketable securities -   -   -   84,868 
Comprehensive loss$(1,747,191) $(3,377,238) $(3,858,849) $(6,732,475)
       
Earnings per share, basic and diluted      
Net loss income$(0.01) $(0.03) $(0.03) $(0.05)
Weighted average shares outstanding      
Basic 140,118,532   127,249,916   139,453,962   124,115,098 
Diluted 140,118,532   127,249,916   139,453,962   124,115,098 
       


INUVO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
    
    
 June 30 December 31 
  2024   2023 
Assets   
    
Cash and cash equivalent$2,011,904  $4,440,454 
Marketable securities-short term -   - 
Accounts receivable, net 8,081,326   9,226,956 
Prepaid expenses and other current assets 1,038,038   1,076,121 
Total current assets 11,131,268   14,743,531 
    
Property and equipment, net 1,756,989   1,680,788 
    
Goodwill 9,853,342   9,853,342 
Intangible assets, net of accumulated amortization 4,172,541   4,664,791 
Other assets 1,543,958   1,431,692 
    
Total assets$28,458,098  $32,374,144 
    
Liabilities and Stockholders’ Equity   
    
Current liabilities   
Accounts payable$6,075,889  $6,432,120 
Accrued expenses and other current liabilities 7,870,368   8,100,354 
Total current liabilities 13,946,257   14,532,474 
    
Long-term liabilities 972,271   859,484 
    
Total stockholders' equity 13,539,570   16,982,186 
Total liabilities and stockholders' equity$28,458,098  $32,374,144 
        


RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(unaudited)
      
 Three Months Ended Six Months Ended
 June 30 June 30 June 30
 June 30
  2024   2023   2024   2023 
Net loss$(1,747,191) $(3,377,238) $(3,858,849) $(6,817,343)
Interest Expense 42,451   38,186   62,831   57,306 
Income tax Expense 5,353   -   5,353   - 
Depreciation 430,676   432,053   857,754   824,954 
Amortization 282,240   273,495   528,365   550,263 
EBITDA (986,471)  (2,633,504)  (2,404,546)  (5,384,820)
Stock-based compensation 318,681   503,061   714,993   935,145 
Non recurring items:      
Doubtful account reserve -   378,928   -   361,097 
Adjusted EBITDA$(667,790) $(1,751,515) $(1,689,553) $(4,088,578)
       

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) income tax expense, (iii) depreciation, and (iv) amortization. We further define Adjusted EBITDA as EBITDA plus (v) stock-based compensation and (vi) 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 revenue growth in Q2 2024?

Inuvo's revenue increased by 9.4% to $18.2 million in Q2 2024 compared to the same period last year.

How much did Inuvo's revenue grow in the first half of 2024?

Inuvo's revenue grew by 23.6% year-over-year to $35.2 million in the first half of 2024.

What is the gross profit margin for Inuvo's self-serve product?

Inuvo's self-serve product boasts high margins, with gross profit ranging from 85-95%.

How much credit line did Inuvo secure in July 2024?

Inuvo secured a three-year, $10 million line of credit in July 2024 to finance working capital needs.

What was Inuvo's preliminary unaudited revenue for July 2024?

Inuvo's preliminary unaudited revenue for July 2024 was $7.7 million, higher than the first half of 2024 monthly average of $5.9 million.

Inuvo, Inc.

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