Inuvo Reports Record Fourth Quarter 2024 Revenue of $26.2 Million, 26% Year-Over-Year Growth and Net Income
Rhea-AI Summary
Inuvo (NYSE: INUV) reported record Q4 2024 financial results with revenue reaching $26.2 million, marking a 26% year-over-year increase. The company achieved Q4 net income of $141,000 and Adjusted EBITDA of $1.2 million, compared to losses in Q4 2023.
For full-year 2024, revenue grew 13% to $83.8 million, with gross profit increasing to $71.8 million. The net loss decreased 45% to $5.8 million, while Adjusted EBITDA loss improved to $816,000. Key operational highlights included securing a Master Services Agreement with a major retailer, signing 33 new agencies/brands, obtaining a $10.0 million credit line, and launching enhancements to the IntentKey Self-Serve Platform.
Positive
- Record Q4 revenue of $26.2M, up 26% YoY
- First quarterly net income of $141K in Q4 2024
- Q4 Adjusted EBITDA positive at $1.2M
- 45% reduction in annual net loss
- Secured $10M credit line
- Signed 33 new agencies/brands
- No debt and $12.5M available liquidity
Negative
- Full-year net loss of $5.8M despite improvements
- Gross profit margin declined to 83.1% in Q4 from 87.3% YoY
- 14.8% increase in Marketing costs
- Higher interest expenses due to credit line usage
News Market Reaction – INUV
On the day this news was published, INUV declined 3.91%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Q4 2024 Net Income of
Inuvo management to host conference call today at 4:15 PM ET
LITTLE ROCK, Ark., Feb. 27, 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 fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights:
- Revenue was a record
$26.2 million , a26% increase compared to$20.8 million in Q4 2023 - Gross profit increased
20% to$21.8 million , compared to$18.2 million in Q4 2023 - Net income was
$141 thousand , compared to net loss of$2.4 million for Q4 2023 - Adjusted EBITDA was
$1.2 million , compared to a loss of$1.2 million for Q4 2023
Full Year 2024 Financial Highlights:
- Revenue increased
13% to$83.8 million , compared to$73.9 million in 2023 - Gross profit increased
13% to$71.8 million , compared to$63.4 million in 2023 - Net loss decreased by
45% to a loss of$5.8 million , compared to a net loss of$10.4 million in 2023 - Adjusted EBITDA loss improved sixfold to
$816,000 compared to$5.3 million in 2023 $230,000 in Net Cash from Operating activities was generated in 2024
2024 Operational Highlights:
- Secured a Master Services Agreement with one of the largest retailers in the world
- Signed 33 new agencies/brands and one new platform during the year
- Secured a
$10.0 million credit line in July - Launched enhancements to the IntentKey Self-Serve Platform, an advanced AI agent specifically designed for audience modeling
Richard Howe, CEO of Inuvo, stated, “Q4 2024 was a record-breaking quarter, delivering
Mr. Howe continued, “We made a number of significant technological advancements in 2024, most notably the enhancements to the IntentKey Self-Serve Platform. This groundbreaking innovation democratizes advertising by allowing anyone of any caliber to describe and then immediately execute targeting, giving the AI nothing other than some simple audience descriptions.”
Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024
Net revenue for the fourth quarter of 2024 totaled
Cost of revenue for the fourth quarter of 2024, totaled
Gross profit for the fourth quarter of 2024 and full year ended December 31, 2024 totaled
Operating expenses for the fourth quarter of 2024 totaled
Net interest expense/income for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately an expense of
Other expense/income for both the fourth quarter of 2024 and the full year ended December 31, 2024 was income of approximately
Net income for the fourth quarter of 2024 was
Adjusted EBITDA [see reconciliation table below] was approximately
Liquidity and Capital Resources:
On December 31, 2024, Inuvo had
As of February 21, 2025, Inuvo had 142,795,483 common shares issued and outstanding.
Conference Call Details:
Date: Thursday, February 27, 2025
Time: 4:15 p.m. Eastern Standard Time
Toll-free Dial-in Number: 1-800-717-1738
International Dial-in Number: 1-646-307-1865
Conference ID: 11158080
Webcast Link: HERE
A telephone replay will be available through Thursday, March 13, 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 11158080 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, 2024 as filed on February 27, 2025, and our other filings with the SEC. 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 | Twelve Months Ended | ||||||||||||||
| December 31 | December 31 | December 31 | December 31 | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net revenue | $ | 26,189,924 | $ | 20,842,095 | $ | 83,793,859 | $ | 73,911,528 | |||||||
| Cost of revenue | 4,433,905 | 2,643,543 | 12,033,777 | 10,477,272 | |||||||||||
| Gross profit | 21,756,019 | 18,198,552 | 71,760,082 | 63,434,256 | |||||||||||
| Operating expenses: | 83.1 | % | 87.3 | % | 85.6 | % | 85.8 | % | |||||||
| Marketing costs | 17,122,706 | 15,212,600 | 59,663,061 | 51,982,572 | |||||||||||
| Compensation | 2,703,309 | 3,591,109 | 12,065,783 | 13,793,309 | |||||||||||
| General and administrative | 1,709,887 | 1,821,821 | 5,545,049 | 8,050,590 | |||||||||||
| Total operating expenses | 21,535,902 | 20,625,530 | 77,273,893 | 73,826,771 | |||||||||||
| Operating income (loss) | 220,117 | (2,426,978 | ) | (5,513,811 | ) | (10,392,515 | ) | ||||||||
| Interest expense (income), net | 102,910 | (7,884 | ) | 266,772 | 29,570 | ||||||||||
| Other income | 26,812 | - | 26,812 | 14,668 | |||||||||||
| Income tax expense (benefit) | 2,678 | (17,764 | ) | 8,030 | (17,764 | ) | |||||||||
| Net income (loss) | 141,341 | (2,401,330 | ) | (5,761,801 | ) | (10,389,653 | ) | ||||||||
| Other comprehensive income: | |||||||||||||||
| Unrealized loss on marketable securities | - | - | - | 84,868 | |||||||||||
| Comprehensive income (loss) | $ | 141,341 | $ | (2,401,330 | ) | $ | (5,761,801 | ) | $ | (10,304,785 | ) | ||||
| Net loss per share, basic and diluted | ( | ) | ( | ) | ( | ) | |||||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 140,494,192 | 127,381,051 | 139,968,374 | 131,116,370 | |||||||||||
| Diluted | 140,494,192 | 127,381,051 | 139,968,374 | 131,116,370 | |||||||||||
| INUVO, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| December 31 | December 31 | ||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Cash and cash equivalent | $ | 2,459,245 | $ | 4,440,454 | |||
| Accounts receivable, net | 12,545,771 | 9,226,956 | |||||
| Prepaid expenses and other current assets | 639,805 | 1,076,121 | |||||
| Total current assets | 15,644,821 | 14,743,531 | |||||
| Property and equipment, net | 1,792,903 | 1,680,788 | |||||
| Goodwill | 9,853,342 | 9,853,342 | |||||
| Intangible assets, net of accumulated amortization | 3,897,875 | 4,664,791 | |||||
| Other assets | 1,006,990 | 1,431,692 | |||||
| Total assets | $ | 32,195,931 | $ | 32,374,144 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 8,422,351 | $ | 6,432,120 | |||
| Accrued expenses and other current liabilities | 9,463,537 | 8,100,354 | |||||
| Total current liabilities | 17,885,888 | 14,532,474 | |||||
| Long-term liabilities | 835,271 | 859,484 | |||||
| Total stockholders' equity | 13,474,772 | 16,982,186 | |||||
| Total liabilities and stockholders' equity | $ | 32,195,931 | $ | 32,374,144 | |||
| 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 | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) | 141,341 | (2,401,330 | ) | $ | (5,761,801 | ) | $ | (10,389,653 | ) | ||||||
| Interest expense (income), net | 102,910 | (7,884 | ) | 266,772 | 29,570 | ||||||||||
| Income tax expense (benefit) | 2,678 | (17,764 | ) | 8,030 | (17,764 | ) | |||||||||
| Depreciation and amortization on PP&E | 446,608 | 425,106 | 1,745,261 | 1,670,868 | |||||||||||
| Amortization | 123,412 | 264,523 | 824,272 | 1,080,690 | |||||||||||
| EBITDA | 816,949 | (1,737,349 | ) | (2,917,466 | ) | (7,626,289 | ) | ||||||||
| Stock-based compensation | 413,911 | 514,613 | 1,501,444 | 1,986,296 | |||||||||||
| Non recurring items: | |||||||||||||||
| Unrealized loss on marketable securities | 14,668 | ||||||||||||||
| Doubtful account reserve | 361,097 | ||||||||||||||
| Impairment & amortization of services agreement | 600,000 | ||||||||||||||
| Adjusted EBITDA | 1,230,860 | (1,222,736 | ) | (816,022 | ) | (5,264,228 | ) | ||||||||
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 (INUV) Q4 2024 revenue growth compared to Q4 2023?
How much did Inuvo (INUV) reduce its net loss in fiscal year 2024?
What was Inuvo's (INUV) gross profit margin in Q4 2024?
How many new agencies and brands did Inuvo (INUV) sign in 2024?
What was Inuvo's (INUV) cash position at the end of 2024?
