Inuvo Announces Revenue Increase of 83% Year-Over-Year for the Third Quarter Ending September 30, 2021
Inuvo, Inc. (NYSE American: INUV) reported robust financial results for Q3 2021, showcasing an 83% year-over-year revenue growth to $16.8 million. The first nine months saw revenue increase by 26.3% to $40.1 million. Key drivers included a 71% increase in IntentKey revenue and 88% growth in ValidClick revenue. Despite a net loss of $1.8 million for Q3, Adjusted EBITDA turned positive in September. The company holds $14.6 million in cash and has no debt, indicating strong liquidity as it anticipates continued growth into Q4.
- Q3 revenue grew 83% year-over-year to $16.8 million.
- First nine months revenue rose 26.3% to $40.1 million.
- IntentKey revenue increased 71% year-over-year.
- ValidClick revenue surged 88% compared to last year.
- Net loss decreased to $1.8 million from $2.4 million year-over-year.
- Adjusted EBITDA positive in September.
- Liquidity strong with $14.6 million in cash and no debt.
- Net loss for Q3 2021 was $1.8 million.
- Adjusted EBITDA still negative at $338 thousand for Q3.
LITTLE ROCK, Ark., Nov. 11, 2021 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE American: INUV), a leading provider of marketing technology, powered by artificial intelligence (AI) that serves brands and agencies, today announced its financial results for the third quarter and nine-month periods ending September 30, 2021.
Richard Howe, CEO of Inuvo, stated, “Revenue for the third quarter grew
Financial Results for the Third Quarter and Nine Month Periods Ended September 30, 2021:
Inuvo experienced higher year-over-year revenue for the three and nine months ended September 30, 2021 as compared to the same periods in 2020. Net revenue for the third quarter and first nine months ended September 30, 2021 totaled
Revenue from both platforms, ValidClick and IntentKey exceeded the prior year. IntentKey revenue for the three months ended September 30, 2021 exceeded the prior year quarter by
Revenue increased sequentially
Cost of revenue for the third quarter and first nine months ended September 30, 2021, totaled
Gross profit for the third quarter and first nine months ended September 30, 2021, totaled
The net loss for the third quarter of 2021 totaled
Non-cash based expenses totaled roughly
Adjusted EBITDA was a loss of
Liquidity and Capital Resources:
On September 30, 2021, Inuvo had
As of November 11, 2021, Inuvo had 118,747,447 common shares issued and outstanding.
Conference Call Details:
Date: Thursday, November 11, 2021
Time: 4:15 p.m. Eastern Time
Toll-free Dial-in Number: 1-866-548-4713
International Dial-in Number: 1-323-794-2093
Conference ID: 2532390
Participant Link: https://viavid.webcasts.com/starthere.jsp?ei=1506822&tp_key=604c48f45d
A telephone replay will be available through Thursday, November 25, 2021. 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 2532390 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, 2020 as filed on February 11, 2021, our Quarterly Reports on Form 10-Q, 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 that 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:
KCSA Strategic Communications
Valter Pinto, Managing Director
Tel (212) 896-1254
Valter@KCSA.com
| INUVO, INC. | |||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30 | September 30 | September 30 | September 30 | ||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Net revenue | $ | 16,841,035 | $ | 9,214,350 | $ | 40,094,427 | $ | 31,737,520 | |||||
| Cost of revenue | 3,757,938 | 1,645,392 | 7,466,017 | 6,154,921 | |||||||||
| Gross profit | 13,083,097 | 7,568,958 | 32,628,410 | 25,582,599 | |||||||||
| Operating expenses | |||||||||||||
| Marketing costs | 10,163,006 | 5,668,707 | 25,681,930 | 19,148,925 | |||||||||
| Compensation | 2,840,149 | 2,462,693 | 8,458,233 | 6,925,239 | |||||||||
| Selling, general and administrative | 1,824,869 | 1,870,258 | 5,226,737 | 5,710,221 | |||||||||
| Total operating expenses | 14,828,024 | 10,001,658 | 39,366,900 | 31,784,385 | |||||||||
| Operating loss | (1,744,927 | ) | (2,432,700 | ) | (6,738,490 | ) | (6,201,786 | ) | |||||
| Interest expense, net | (6,261 | ) | (26,143 | ) | (36,641 | ) | (251,335 | ) | |||||
| Other income (expense) , net | (79,080 | ) | 53,763 | 415,468 | (136,483 | ) | |||||||
| Net loss before taxes | (1,830,268 | ) | (2,405,080 | ) | (6,359,663 | ) | (6,589,604 | ) | |||||
| Net loss | $ | (1,830,268 | ) | $ | (2,405,080 | ) | $ | (6,359,663 | ) | $ | (6,589,604 | ) | |
| Earnings per share, basic and diluted | |||||||||||||
| Net loss income | (0.02 | ) | (0.03 | ) | (0.05 | ) | (0.09 | ) | |||||
| Weighted average shares outstanding | |||||||||||||
| Basic | 116,645,509 | 92,110,881 | 117,230,419 | 70,652,630 | |||||||||
| Diluted | 116,645,509 | 92,110,881 | 117,230,419 | 70,652,630 | |||||||||
| INUVO, INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| September 30 | December 31, | ||||
| 2021 | 2020 | ||||
| Assets | |||||
| Cash and cash equivalent | $ | 11,702,464 | $ | 7,890,665 | |
| Marketable securities | 2,925,785 | - | |||
| Accounts receivable, net | 8,920,881 | 6,227,610 | |||
| Prepaid expenses and other current assets | 496,250 | 413,435 | |||
| Total current assets | 24,045,380 | 14,531,710 | |||
| Property and equipment, net | 1,422,422 | 1,187,061 | |||
Intangible assets, net | 7,186,961 | 8,586,089 | |||
| Goodwill | 9,853,342 | 9,853,342 | |||
| Other assets | 2,529,530 | 1,023,369 | |||
| Total other assets | 19,569,833 | 19,462,800 | |||
| Total assets | $ | 45,037,635 | $ | 35,181,571 | |
| Liabilities and Stockholders’ Equity | |||||
| Accounts payable | $ | 4,680,629 | $ | 4,048,260 | |
| Accrued expenses and other current liabilities | 6,344,304 | 4,680,912 | |||
| Total current liabilities | 11,024,933 | 8,729,172 | |||
| Deferred tax liability | 107,000 | 107,000 | |||
| Other long-term liabilities | 536,640 | 1,056,285 | |||
| Total long-term liabilities | 643,640 | 1,163,285 | |||
| Total stockholders' equity | 33,369,062 | 25,289,114 | |||
| Total liabilities and stockholders' equity | $ | 45,037,635 | $ | 35,181,571 | |
| RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | |||||||||||||
| (unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30 | September 30 | September 30 | September 30 | ||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Net loss | $ | (1,830,268 | ) | $ | (2,405,080 | ) | $ | (6,359,663 | ) | $ | (6,589,604 | ) | |
| Interest expense, net | 6,261 | 26,143 | 36,641 | 251,335 | |||||||||
| Depreciation | 325,112 | 335,769 | 944,746 | 1,053,802 | |||||||||
| Amortization | 547,117 | 541,630 | 1,636,551 | 1,690,228 | |||||||||
| EBITDA | (951,778 | ) | (1,501,538 | ) | (3,741,725 | ) | (3,593,239 | ) | |||||
| Stock-based compensation | 613,544 | 258,430 | 1,566,016 | 660,615 | |||||||||
| Non-recurring items: | |||||||||||||
| Adjustment to derivative liability accounts | - | - | - | 168,364 | |||||||||
| Adjusted EBITDA | $ | (338,234 | ) | $ | (1,243,108 | ) | $ | (2,175,709 | ) | $ | (2,764,260 | ) | |
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, net, (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 were Inuvo's Q3 2021 financial results?
How did Inuvo perform in the first nine months of 2021?
What was the net loss for Inuvo in Q3 2021?
How much cash did Inuvo have on hand as of September 30, 2021?
What is the future outlook for Inuvo following the Q3 results?
