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Inuvo Reports 23% Sequential Revenue Growth to $22.4 million for the Third Quarter of 2024

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Inuvo (NYSE: INUV) reported Q3 2024 financial results with revenue of $22.4 million, marking a 23% sequential increase from Q2 2024, though down 9% year-over-year. The company posted a net loss of $2 million, including a one-time $600,000 non-cash impairment charge. Adjusted EBITDA loss was $357,000, showing a $310,000 improvement over Q2 2024.

For the nine months ended September 30, 2024, revenue increased 8.5% to $57.6 million. The company secured a $10 million credit line in July and closed a significant retail client agreement. Inuvo forecasts double-digit year-over-year growth for Q4 2024 and plans to launch an updated self-service IntentKey product in Q1 2025.

Inuvo (NYSE: INUV) ha riportato i risultati finanziari del terzo trimestre del 2024, con un fatturato di 22,4 milioni di dollari, che segna un aumento sequenziale del 23% rispetto al secondo trimestre del 2024, anche se in calo del 9% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 2 milioni di dollari, che comprende un'ammortizzazione non monetaria di 600.000 dollari una tantum. La perdita di EBITDA rettificato è stata di 357.000 dollari, mostrando un miglioramento di 310.000 dollari rispetto al secondo trimestre del 2024.

Per i nove mesi terminati il 30 settembre 2024, il fatturato è aumentato dell'8,5% a 57,6 milioni di dollari. L'azienda ha ottenuto una linea di credito di 10 milioni di dollari a luglio e ha concluso un'importante accordo con un cliente del settore retail. Inuvo prevede una crescita a doppia cifra anno su anno per il quarto trimestre del 2024 e intende lanciare un prodotto IntentKey self-service aggiornato nel primo trimestre del 2025.

Inuvo (NYSE: INUV) reportó resultados financieros para el tercer trimestre de 2024 con ingresos de $22.4 millones, marcando un aumento secuencial del 23% en comparación con el segundo trimestre de 2024, aunque una disminución del 9% en comparación con el año anterior. La compañía registró una pérdida neta de $2 millones, incluyendo un cargo por deterioro no monetario de $600,000 por única vez. La pérdida de EBITDA ajustado fue de $357,000, mostrando una mejora de $310,000 en comparación con el segundo trimestre de 2024.

Para los nueve meses terminados el 30 de septiembre de 2024, los ingresos aumentaron un 8.5% a $57.6 millones. La empresa aseguró una línea de crédito de $10 millones en julio y cerró un acuerdo significativo con un cliente minorista. Inuvo pronostica un crecimiento de doble dígito año tras año para el cuarto trimestre de 2024 y planea lanzar un producto IntentKey de autoservicio actualizado en el primer trimestre de 2025.

Inuvo (NYSE: INUV)는 2024년 3분기 재무 결과를 발표했으며, 매출은 2240만 달러로 2024년 2분기 대비 23% 증가했지만, 작년 대비 9% 감소했습니다. 회사는 200만 달러의 순손실을 기록했으며, 여기에는 일회성 비현금 손상차익이 60만 달러 포함됩니다. 조정된 EBITDA 손실은 35만 7000달러로 2024년 2분기보다 31만 달러 개선되었습니다.

2024년 9월 30일 기준으로 종료된 9개월 동안 매출은 5760만 달러로 8.5% 증가했습니다. 기업은 7월에 1000만 달러의 신용 한도를 확보하고 주요 소매 고객 계약을 체결했습니다. Inuvo는 2024년 4분기에 연간 두 자릿수 성장률을 예측하고 2025년 1분기에 업데이트된 자기 서비스 IntentKey 제품을 출시할 계획입니다.

Inuvo (NYSE: INUV) a annoncé ses résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires de 22,4 millions de dollars, marquant une augmentation séquentielle de 23 % par rapport au deuxième trimestre 2024, bien qu'en baisse de 9 % par rapport à l'année précédente. L'entreprise a affiché une perte nette de 2 millions de dollars, incluant une charge de dépréciation non monétaire unique de 600 000 dollars. La perte d'EBITDA ajustée était de 357 000 dollars, montrant une amélioration de 310 000 dollars par rapport au deuxième trimestre 2024.

Pour les neuf mois se terminant le 30 septembre 2024, le chiffre d'affaires a augmenté de 8,5 % pour atteindre 57,6 millions de dollars. L'entreprise a sécurisé une ligne de crédit de 10 millions de dollars en juillet et a conclu un accord important avec un client du secteur de la distribution. Inuvo prévoit une croissance à deux chiffres d'une année sur l'autre pour le quatrième trimestre 2024 et prévoit de lancer un produit IntentKey en libre-service mis à jour au premier trimestre 2025.

Inuvo (NYSE: INUV) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von 22,4 Millionen Dollar, was einen sequenziellen Anstieg von 23 % im Vergleich zum 2. Quartal 2024 darstellt, jedoch einem Rückgang um 9 % im Jahresvergleich. Das Unternehmen verzeichnete einen Nettoverlust von 2 Millionen Dollar, der eine einmalige, nicht zahlungswirksame Wertminderung von 600.000 Dollar umfasst. Der Verlust des bereinigten EBITDA betrug 357.000 Dollar, was eine Verbesserung um 310.000 Dollar im Vergleich zum 2. Quartal 2024 zeigt.

Für die neun Monate bis zum 30. September 2024 stieg der Umsatz um 8,5 % auf 57,6 Millionen Dollar. Das Unternehmen sicherte sich im Juli eine Kreditlinie von 10 Millionen Dollar und schloss einen wichtigen Einzelhandelskundenvertrag ab. Inuvo prognostiziert für das 4. Quartal 2024 ein zweistelliges Wachstum im Jahresvergleich und plant, im 1. Quartal 2025 ein aktualisiertes Selbstdienst-IntentKey-Produkt einzuführen.

Positive
  • 23% sequential revenue growth to $22.4M in Q3 2024
  • 8.5% revenue increase to $57.6M for nine months ended September 30, 2024
  • Secured $10M credit line
  • Adjusted EBITDA loss improved by $2.4M over nine months
  • Closed significant new retail client agreement
Negative
  • Net loss of $2M in Q3 2024
  • 9% year-over-year revenue decline in Q3 2024
  • Adjusted EBITDA loss of $357,000 in Q3 2024
  • Gross profit margin decreased to 88.4% from 90.7% year-over-year
  • $600,000 non-cash impairment charge

Insights

The Q3 2024 results present a mixed picture for Inuvo. While the 23% sequential revenue growth to $22.4 million is impressive, the 9% year-over-year decline raises concerns. The company's focus on AI-driven advertising solutions shows promise, but financial metrics remain challenging with a $2 million net loss and $357,000 Adjusted EBITDA loss.

Key positives include the $10 million credit line secured in July, providing financial flexibility and the 8.5% revenue growth for the nine-month period. However, the declining gross margin (from 90.7% to 88.4%) and increasing interest expenses warrant attention. The projected double-digit growth for Q4 and planned IntentKey product update could be catalysts for improvement, but achieving positive cash flow remains important for long-term sustainability.

Announces strong start to Q4 2024 and projecting double-digit revenue growth

Inuvo management to host conference call today at 8:30 AM EST

LITTLE ROCK, Ark., Nov. 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 third quarter ended September 30, 2024.

Third Quarter 2024 Financial and Business Highlights:

  • Revenue for the three months ended September 30, 2024 was $22.4 million, a 23% sequential increase in revenue for Q3 2024 compared to Q2 2024
  • Revenue from Agencies & Brands for the three months ended September 30, 2024 was up 15%, Platforms was down 12%, compared to the same quarter last year. Sequentially, revenue from Agencies & Brands was up 16% and Platforms was up 24%, respectively over the second quarter of 2024
  • Adjusted EBITDA loss was $357 thousand for the three months ended September 30, 2024, a $310 thousand improvement over the second quarter 2024
  • Net loss was $2 million for the three months ended September 30, 2024, which included a one-time $600 thousand non-cash impairment charge
  • The Company secured a $10.0 million credit line in July
  • The Company closed a significant new retail client agreement

Nine-Month 2024 Financial and Business Highlights:

  • Revenue increased 8.5% to $57.6 million for the nine months ended September 30, 2024 over the same period last year
  • Adjusted EBITDA loss improved $2.4 million for the nine months ended September 30, 2024 over the same period last year
  • Net loss reduced by $2.1 million for the nine months ended September 30, 2024 over the same period last year

Richard Howe, CEO of Inuvo, stated, “We’re pleased to report 23% sequential growth for Q3 2024. Although revenue was down about 9% year-over-year in Q3 2024 due to an exceptionally strong quarter recorded in Q3 2023, revenue increased approximately 9% year-over-year for the nine months ended September 30, 2024. Our continued growth is a key element of our strategy to achieve positive cash flow in the near term. Towards that end, our adjusted EBITDA improved by approximately $2.4 million for the nine months ended September 30, 2024. Moreover, with a strong start to Q4 2024, we are forecasting double-digit year-over-year growth for the quarter.”

IntentKey is the first large-language generative AI that identifies and targets audiences without consumer data, tracking, or cookies, outperforming competitors. This advanced AI empowers marketers with Inuvo's audience discovery and targeting in managed and self-service formats.

Mr. Howe continued, “We are preparing for the launch of an exciting update to our self-service IntentKey product, which we expect to announce early in Q1 2025. This update will take AI driven audience curation and targeting to an entirely new level never before achieved within marketing.”  

Financial Results for the Three Months Ended September 30, 2024

Net revenue for the third quarter of 2024 totaled $22.4 million, compared to $24.6 million for the same period last year.

Cost of revenue for the third quarter of 2024 totaled $2.6 million, compared to $2.3 million for the same period last year. The increase in the cost of revenue for the three months ended September 30, 2024, as compared to the same period last year, was related to the change in revenue mix.

Gross profit for the three months ended September 30, 2024, totaled $19.8 million as compared to $22.3 million, for the same period last year. Gross profit margin for the three months ended September 30, 2024, was 88.4% as compared to 90.7% for the same period last year.

Total operating expenses for the three months ended September 30, 2024, totaled $21.7 million compared to $23.5 million for the same period last year. Marketing costs this year include a non-cash impairment charge of $600 thousand related to a referral and support services agreement that is no longer active.

Net Interest expense was approximately $101 thousand in the third quarter of 2024 compared to a net interest income of approximately $20 thousand in the same quarter last year.

Net loss for the third quarter of 2024 totaled $2.0 million, or $0.01 per basic and diluted share, as compared to net loss of $1.2 million, or $0.01 per basic and diluted share, for the same period last year. Net loss includes $1.6 million of non-cash expenses; depreciation, amortization, stock-based compensation and a one-time impairment charge.

Adjusted EBITDA [see reconciliation table below] was a loss of approximately $357 thousand in the third quarter of 2024, compared to an income of approximately $32 thousand for the same period last year.

Liquidity and Capital Resources:

As of September 30, 2024, Inuvo had $2.6 million in cash and cash equivalents and an unused working capital facility of $10.0 million and no debt.

As of November 1, 2024, Inuvo had 140,499,799 common shares issued and outstanding.

Conference Call Details: 

Date: Friday, November 8, 2024
Time: 8:30 a.m. Eastern Standard Time 
Toll-free Dial-in Number: 1- 800-717-1738
International Dial-in Number: 1- 646-307-1865
Conference ID: 1131160
Webcast Link: HERE

A telephone replay will be available through Friday, November 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 1131160 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

     

INUVO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
        
        
        
  Three Months Ended Nine Months Ended
  September 30 September 30September 30September 30
   2024   2023   2024  2023 
Net revenue $22,371,153  $24,570,588  $57,603,935 $53,069,433 
Cost of revenue  2,594,642   2,274,626   7,599,872  7,833,729 
Gross profit  19,776,511   22,295,962   50,004,063  45,235,704 
Operating expenses               
Marketing costs  17,006,131   17,625,806   42,540,355  36,769,972 
Compensation  3,106,384   3,525,943   9,362,474  10,202,200 
Selling, general and administrative  1,607,258   2,335,295   3,835,162  6,229,069 
Total operating expenses  21,719,773   23,487,044   55,737,991  53,201,241 
Operating loss  (1,943,262)  (1,191,082)  (5,733,928) (7,965,537)
Interest expense (income), net  101,031   (19,852)  163,862  37,454 
Other income  -   250   -  14,668 
Income tax expense (income)  -   -   5,352  - 
Net loss  (2,044,293)  (1,170,980)  (5,903,142) (7,988,323)
Other comprehensive income       
Unrealized loss on marketable securities  -   -   -  84,868 
Comprehensive loss  (2,044,293)  (1,170,980)  (5,903,142) (7,903,455)
        
Earnings per share, basic and diluted       
Net loss income  ($0.01)  ($0.01)  ($0.04) ($0.06)
Weighted average shares outstanding       
Basic  140,454,840   127,381,051   139,791,180  128,793,522 
Diluted  140,454,840   127,381,051   139,791,180  128,793,522 
        


INUVO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
     
  September 30 December 31
  2024 2023
Assets    
     
Cash and cash equivalent $2,586,821 $4,440,454
Accounts receivable, net  8,782,460  9,226,956
Prepaid expenses and other current assets  882,550  1,076,121
Total current assets  12,251,831  14,743,531
     
Property and equipment, net  1,791,896  1,680,788
     
Goodwill  9,853,342  9,853,342
Intangible assets, net of accumulated amortization  4,012,249  4,664,791
Other assets  1,074,407  1,431,692
     
Total assets $28,983,725 $32,374,144
     
Liabilities and Stockholders’ Equity    
     
Current liabilities    
Accounts payable $7,088,597 $6,432,120
Accrued expenses and other current liabilities  8,590,948  8,100,354
Total current liabilities  15,679,545  14,532,474
     
Long-term liabilities  901,244  859,484
     
Total stockholders' equity  12,402,936  16,982,186
Total liabilities and stockholders' equity $28,983,725 $32,374,144
 


RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(unaudited)
       
  Three Months Ended Nine Months Ended
  September 30 September 30 September 30September 30
  2024  2023   2024  2023 
Net loss (2,044,293) (1,170,980) $(5,903,142)$(7,988,323)
Interest expense (income), net 101,031  (19,852)  163,862  37,454 
Income tax expense -  -   5,352  - 
Depreciation 440,899  420,808   1,298,653  1,245,762 
Amortization 172,495  265,904   700,860  816,167 
EBITDA (1,329,868) (504,120)  (3,734,415) (5,888,940)
Stock-based compensation 372,540  536,538   1,087,533  1,471,683 
Non recurring items:       
Impairment and amortization of referral and support services agreement advance 600,000     600,000  
Adjusted EBITDA (357,328) 32,418   (2,046,882) (4,417,257)
        

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) revenue in Q3 2024?

Inuvo reported revenue of $22.4 million in Q3 2024, representing a 23% sequential increase from Q2 2024.

How much was Inuvo's (INUV) net loss in Q3 2024?

Inuvo reported a net loss of $2 million in Q3 2024, which included a one-time $600,000 non-cash impairment charge.

What credit facility did Inuvo (INUV) secure in July 2024?

Inuvo secured a $10.0 million credit line in July 2024.

What is Inuvo's (INUV) revenue forecast for Q4 2024?

Inuvo is forecasting double-digit year-over-year growth for Q4 2024.

Inuvo, Inc.

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