STOCK TITAN

Inuvo Reports 44% Year-Over-Year Revenue Growth to $17.0 Million for the First Quarter of 2024

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Inuvo, Inc. reported a 44% year-over-year revenue growth to $17.0 million in the first quarter of 2024. Gross profit also increased by 72% to $14.9 million. The company launched various innovative solutions to enhance its marketing technology services powered by AI. Operating expenses rose due to higher marketing costs, resulting in a net loss of $2.1 million for the quarter. Inuvo had $2.4 million in cash and cash equivalents with no debt as of March 31, 2024.

Positive
  • Revenue increased by 44% to $17.0 million in Q1 2024.

  • Gross profit surged by 72% to $14.9 million in Q1 2024.

  • Gross margin improved to 87.7% in Q1 2024 from 73.1% in Q1 2023.

  • Adjusted EBITDA showed a 56% improvement with a loss of $1.0 million, and net loss decreased by 38% to $2.1 million in Q1 2024.

  • Inuvo launched innovative solutions like an omnichannel measurement tool, AI-as-a-service solution, and enhanced audience targeting capabilities.

  • The company reaffirmed its ability to navigate Google's privacy changes and adapt to a cookieless future.

Negative
  • Operating expenses increased to $17.0 million in Q1 2024, attributed to higher marketing costs.

  • Net loss for the quarter was $2.1 million, indicating a decline compared to the previous year.

  • Adjusted EBITDA reported a loss of $1.0 million in Q1 2024.

  • The company had $2.4 million in cash and cash equivalents as of March 31, 2024.

Insights

Inuvo's report detailing a 44% year-over-year revenue growth and 72% increase in gross profit is indicative of a solid business performance and operational efficiency. These figures, particularly the jump in gross margin to 87.7%, suggest that the company has effectively leveraged its platforms which have inherently higher margins. However, despite this growth, the company still reports a net loss, which has improved by 38%. This might indicate that while Inuvo is expanding its revenue streams, it is also simultaneously increasing its spending to drive growth, which is common in growth-stage tech companies.

Inuvo's strategic emphasis on developing AI-based marketing technologies to navigate a post-cookie advertising landscape is particularly timely. The firm's ability to offer solutions that ensure user privacy could be pivotal as the industry continues to pivot away from traditional tracking methods. Furthermore, the launch of its next-generation IntentKey Insights Dashboard and AI-as-a-service solutions demonstrates Inuvo's commitment to innovation in a rapidly growing sector, potentially presenting attractive opportunities for growth-oriented investors.

Gross profit increased by 72% to $14.9 million for the first quarter of 2024
Inuvo management to host conference call today at 4:15 PM ET

LITTLE ROCK, Ark., May 07, 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 first quarter ended March 31, 2024.

Q1 2024 Financial Highlights (year-over-year):

  • Revenue increased 44% to $17.0 million in Q1 2024
  • Gross profit increased 72% to $14.9 million in Q1 2024
  • Gross margin increased to 87.7% in Q1 2024 from 73.1% in Q1 2023
  • Adjusted EBITDA improved 56% to a loss of $1.0 million dollars and net loss improved by 38% to a loss of $2.1 million

Q1 2024 Operational Highlights and Subsequent Events:

  • Launched an innovative omnichannel measurement solution capable of predicting performance without relying on user identification
  • Announced the ability to deliver access to and measure the performance of Netflix ad campaigns across programmatic channels
  • Launched AI-as-a-service solution with the self-serve availability of IntentKey models within demand-side platforms (DSPs) for advertisers
  • Launched next generation IntentKey Insights Dashboard enhancing audience targeting and performance measurement
  • Enhanced Audience Discovery Portal with just-in-time marketing capability that instantly generates marketing audience insights
  • Reaffirmed technology can work around Google’s privacy changes, continuing its commitment to a cookieless future

Richard Howe, CEO of Inuvo, stated, “We exited the second half of 2023 with 32% year-over-year growth and in Q1 2024, we delivered 44% year-over-year growth with $17.0 million in revenues. We are solving two of the biggest problems advertisers have in a post-cookie world, how to accurately identify and target programmatic audiences and how to predictively measure and optimize media spend across the omnichannel. Our proprietary commercialization of large language generative AI for advertising provides a significant competitive advantage for a consumer privacy first future that is inevitable.”

Mr. Howe added, “Only 33% of programmatic media transactions have a stable cookie ID after 1 day and Apple IOS devices are virtually invisible to most media buying opportunities. You can’t track people around the internet nor measure whether they purchased or not if you can’t identify them.”

Financial Results for the First Quarter Ended March 31, 2024

Net revenue for the first quarter of 2024 totaled $17.0 million, compared to $11.8 million for the same period last year, a 44% year-over-year increase.

Cost of revenue for the first quarter of 2024, totaled $2.1 million compared to $3.2 million for the same period last year. The decrease in the cost of revenue for the three months ended March 31, 2024, as compared to the same period last year, was due to the change in revenue mix. Cost of revenue is primarily composed of payments to advertising exchanges that provide access to digital inventory where we serve advertisements.

Gross profit for the first quarter of 2024 totaled $14.9 million, as compared to $8.7 million for the same period last year. Gross profit margin for the first quarter of 2024 was approximately 87.7%, as compared to 73.1% for the same period last year. As mentioned above, the higher gross margin in the current quarter as compared to the same quarter last year is due to the change in revenue mix where a greater percent of the revenue this year was from Platforms (large consolidators of advertising demand), which typically have higher gross margins.

Operating expenses for the first quarter of 2024 totaled $17.0 million, compared to $12.1 million for the same period last year. Operating expenses increased in the first quarter of 2024 due to higher marketing costs associated with the change in revenue mix. In the first quarter of 2024, operating expenses included noncash expenses of $673 thousand of depreciation and amortization and $396 thousand of stock-based compensation.

Finance expense was approximately $20 thousand and $19 thousand for the three months ended March 31, 2024 and 2023, respectively.

Other income was approximately $0 and $14 thousand for the three months ended March 31, 2024 and 2023, respectively.

Net loss for the first quarter of 2024 was $2.1 million, or $0.02 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.

Adjusted EBITDA [see reconciliation table below] was a loss of approximately $1.0 million in the first quarter of 2024, compared to an Adjusted EBITDA loss of approximately $2.3 million for the same period last year.

Liquidity and Capital Resources:

On March 31, 2024, Inuvo had $2.4 million in cash and cash equivalents and an unused working capital facility of $5.0 million and no debt.

As of April 26, 2024, Inuvo had 139,883,999 common shares issued and outstanding.

Conference Call Details: 
Date: Tuesday, May 7, 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: 1107301
Webcast Link: HERE

A telephone replay will be available through Tuesday, May 21, 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 1107301 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
 March 31 March 31
  2024   2023 
Net revenue $17,023,777   $11,847,440 
Cost of revenue 2,099,042   3,190,563 
Gross profit 14,924,735   8,656,877 
Operating expenses:     
Marketing costs 13,102,644   7,087,550 
Compensation 3,224,859   3,422,841 
General and administrative 688,510   1,581,889 
Total operating expenses 17,016,013   12,092,280 
Operating loss (2,091,278)  (3,435,403)
Financing expense, net (20,380)  (19,120)
Other income -   14,418 
Net loss (2,111,658)  (3,440,105)
Other comprehensive income:   
Unrealized gain (loss) on marketable securities -   84,868 
Comprehensive loss (2,111,658)  (3,355,237)
    
Net loss per share, basic and diluted ($0.02)  ($0.03)
Weighted average shares outstanding:   
Basic 138,789,669   120,970,597 
Diluted 138,789,669   120,970,597 
    


INUVO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
    
    
 March 31 December 31
  2024   2023 
Assets   
    
Cash and cash equivalent $2,431,957   $4,440,454 
Accounts receivable, net 8,710,358   9,226,956 
Prepaid expenses and other current assets 1,018,876   1,076,121 
Total current assets 12,161,191   14,743,531 
    
Property and equipment, net 1,725,938   1,680,788 
    
Goodwill 9,853,342   9,853,342 
Intangible assets, net of accumulated amortization 4,418,666   4,664,791 
Other assets 1,616,370   1,431,692 
    
Total assets $29,775,507   $32,374,144 
    
Liabilities and Stockholders’ Equity   
    
Current liabilities   
Accounts payable $5,330,807   $6,432,120 
Accrued expenses and other current liabilities 8,302,500   8,100,354 
Total current liabilities 13,633,307   14,532,474 
    
Long-term liabilities 1,037,333   859,484 
    
Total stockholders' equity 15,104,867   16,982,186 
Total liabilities and stockholders' equity $29,775,507   $32,374,144 
 


RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(unaudited)
    
 Three Months Ended
 March 31 March 31
  2024   2023 
Net loss$(2,111,658) $(3,440,105)
Financing expense, net 20,380   19,120 
Depreciation 427,078   392,901 
Amortization 246,125   276,768 
   EBITDA (1,418,075)  (2,751,316)
Non-recurring or non-representaive items:  
Stock-based compensation 396,312   432,085 
   Adjusted EBITDA (1,021,763)  (2,319,231)


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.


FAQ

What was Inuvo's revenue growth in Q1 2024?

Inuvo reported a 44% year-over-year revenue growth to $17.0 million in the first quarter of 2024.

How much did gross profit increase in Q1 2024?

Gross profit increased by 72% to $14.9 million in the first quarter of 2024 for Inuvo.

What were the operational highlights in Q1 2024 for Inuvo?

Inuvo launched various solutions like an omnichannel measurement tool, AI-as-a-service solution, and enhanced audience targeting capabilities in Q1 2024.

What was Inuvo's net loss for the first quarter ended March 31, 2024?

Inuvo reported a net loss of $2.1 million for the first quarter ended March 31, 2024.

How much cash and cash equivalents did Inuvo have as of March 31, 2024?

As of March 31, 2024, Inuvo had $2.4 million in cash and cash equivalents.

Inuvo, Inc.

NYSE:INUV

INUV Rankings

INUV Latest News

INUV Stock Data

34.62M
140.43M
14.38%
19.34%
0.32%
Software - Application
Services-advertising
Link
United States of America
LITTLE ROCK