Inuvo Revenue Increases 40% Sequentially to $16.7 Million for the Second Quarter of 2023
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Management to host conference call at 4:15 PM ET today, Thursday, August 10, 2023
LITTLE ROCK, Ark., Aug. 10, 2023 (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 second quarter ended June 30, 2023.
Recent Highlights:
- Signed up 10 new clients and had 2 returning clients
- Launched a new product with a large indirect client that is scaling
- Added the former CEO of MediaKitchen to the Executive team as President
- Enhanced the IntentKey’s suite of AI solutions by adding predictive Media Mix Modeling
- Launched the Audience Discovery Portal at inuvo.com/portal
- Enhanced the Company’s AI generated audience personas using the ChatGPT API integration
- Interviewed in notable publications, including national exposure on Yahoo Finance
Richard Howe, CEO of Inuvo, stated, “I am pleased to report that our revenue increased sequentially by
Mr. Howe added, “We strongly believe that the industry we serve is on the verge of a material change. We see increasing pressure legislatively and technologically with respect to using consumer identity and data. There are now 11 states with privacy laws and 5 states with active privacy bills. Apple continues to implement browser features that thwart or limit conventional AdTech from using 3rd and 1st party cookies, IP addresses, email addresses and in their most recent IOS release, URL tracking. The writing is on the wall.”
Financial Results for the Three and Six Month Ended June 30, 2023
Net revenue for the second quarter of 2023 totaled
Cost of revenue for the second quarter of 2023 totaled
Gross profit for the three and six months ended June 30, 2023, totaled
Operating expenses for the three months ended June 30, 2023, totaled
Net loss for the second quarter of 2023 totaled
Adjusted EBITDA [see reconciliation table below] was a loss of approximately
Liquidity and Capital Resources:
As of June 30, 2023, Inuvo had
As of June 30, 2023, Inuvo had 137,817,253 common shares issued and outstanding.
Conference Call Details:
Date: Thursday, August 10, 2023
Time: 4:15 p.m. Eastern Time
Toll-free Dial-in Number: 1-888-886-7786
International Dial-in Number: +1-416-764-8658
Conference ID: 26719286
Webcast Link: HERE
An audio replay of the call will be available through August 24, 2023, and can be accessed by dialing 844-512-2921 for U.S. callers or +1 412-317-6671 for international callers and by entering the access code: 26719286.
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, 2022 as filed on March 10, 2023, 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 | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net revenue | |||||||||||||||
Cost of revenue | 2,368,540 | 9,273,589 | 5,559,103 | 17,935,095 | |||||||||||
Gross profit | 14,282,865 | 13,377,716 | 22,939,742 | 23,325,577 | |||||||||||
Operating expenses | |||||||||||||||
Marketing costs | 12,056,616 | 10,988,409 | 19,144,166 | 18,157,858 | |||||||||||
Compensation | 3,253,416 | 3,215,890 | 6,676,257 | 6,373,596 | |||||||||||
Selling, general and administrative | 2,311,885 | 2,011,237 | 3,893,774 | 3,737,909 | |||||||||||
Total operating expenses | 17,621,917 | 16,215,536 | 29,714,197 | 28,269,363 | |||||||||||
Operating loss | (3,339,052) | (2,837,820) | (6,774,455) | (4,943,786) | |||||||||||
Interest (expense) income, net | (38,186) | 3,070 | (57,306) | 2,071 | |||||||||||
Other income (loss) , net | - | (395,177) | 14,418 | (377,475) | |||||||||||
Net loss | (3,377,238) | (3,229,927) | (6,817,343) | (5,319,190) | |||||||||||
Other comprehensive income | |||||||||||||||
Unrealized loss on marketable securities | - | (124,253) | 84,868 | (222,409) | |||||||||||
Comprehensive loss | (3,377,238) | (3,354,180) | (6,732,475) | (5,541,599) | |||||||||||
Earnings per share, basic and diluted | |||||||||||||||
Net loss income | ( | ( | ( | ( | |||||||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 127,249,916 | 119,827,944 | 124,115,098 | 118,788,819 | |||||||||||
Diluted | 127,249,916 | 119,827,944 | 124,115,098 | 118,788,819 | |||||||||||
INUVO, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
June 30 | December 31 | ||||||
2023 | 2022 | ||||||
Assets | |||||||
Cash and cash equivalent | |||||||
Marketable securities-short term | - | 1,529,464 | |||||
Accounts receivable, net | 10,795,658 | 11,119,892 | |||||
Prepaid expenses and other current assets | 828,601 | 798,977 | |||||
Total current assets | 16,669,371 | 16,379,748 | |||||
Property and equipment, net | 1,680,448 | 1,668,972 | |||||
Intangible assets, net of accumulated amortization | 9,853,342 | 9,853,342 | |||||
Goodwill | 5,157,041 | 5,649,291 | |||||
Other assets | 924,597 | 2,005,957 | |||||
Total assets | |||||||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable | |||||||
Accrued expenses and other current liabilities | 8,435,093 | 5,550,984 | |||||
Total current liabilities | 14,627,917 | 13,595,786 | |||||
Long-term liabilities | 154,230 | 212,208 | |||||
Total stockholders' equity | 19,502,652 | 21,749,316 | |||||
Total liabilities and stockholders' equity |
RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED EBITDA | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | June 30 | June 30 | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net loss | (3,377,238 | ) | $ | (3,229,927 | ) | $ | (6,817,343 | ) | $ | (5,319,190 | ) | ||||
Interest (Income) Expense | 38,186 | (3,070 | ) | 57,306 | (2,071 | ) | |||||||||
Depreciation | 432,053 | 372,939 | 824,954 | 729,732 | |||||||||||
Amortization | 273,495 | 270,563 | 550,263 | 627,741 | |||||||||||
EBITDA | (2,633,504 | ) | (2,589,495 | ) | (5,384,820 | ) | (3,963,788 | ) | |||||||
Stock-based compensation | 503,061 | 684,376 | 935,145 | 1,355,534 | |||||||||||
Non recurring items: | |||||||||||||||
Expense of fraudulent media | 1,367,800 | 1,367,800 | |||||||||||||
Unrealized loss on marketable securities | 395,177 | 377,475 | |||||||||||||
Doubtful account reserve | 378,928 | 361,097 | |||||||||||||
Adjusted EBITDA | (1,751,515 | ) | (142,142 | ) | (4,088,578 | ) | (862,979 | ) | |||||||
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.