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 second
quarter ended June 30, 2024.
Q2 2024 Financial Highlights (year-over-year) and
Subsequent Events:
- Revenue increased 9.4% to $18.2 million in Q2 2024
- Adjusted EBITDA loss improved 62% to a loss of $668 thousand in
Q2 2024
- Net loss reduced by 48% to a loss of $1.7 million in Q2
2024
- Secured $10.0 million credit line
- Preliminary unaudited revenue in July 2024 was $7.7 million as
compared to approximately $5.9 million monthly average through the
first half of 2024
Richard Howe, CEO of Inuvo, stated, “We are pleased to report
that revenue increased by 23.6% year-over-year to $35.2 million in
the first half of 2024. Additionally, in the second quarter, we
achieved 9.4% year-over-year growth, with revenues reaching $18.2
million. Furthermore, adjusted EBITDA, net loss and free-cash-flow
all improved within the first half of 2024.”
The IntentKey remains the first and only large language
generative artificial intelligence capable of identifying and
targeting audiences without tracking or using consumer data or
cookies and continues to outperform competitors by a significant
margin. As the next evolution in digital advertising, IntentKey
puts the power of Inuvo’s proprietary audience discovery and
targeting AI in the hands of marketers where it can be used as a
managed or self-service.
Mr. Howe continued, “This year we are making significant strides
towards the distribution of our self-service and predictive media
mix modeling products with roughly a half dozen self-serve models
built in the quarter and a number of media mix product sales cycles
well underway. The self-serve product boasts high margins, with
gross profit ranging from 85-95%. The media mix modeling provides
the means for Inuvo to act in a more strategic capacity within
clients. We also expect to sign in the 3rd quarter of 2024 a master
services agreement with our largest retail client which provides
Inuvo the opportunity to expand across their enterprise.”
Financial Results for the Three and Six Month Ended June
30, 2024
Net revenue for the second quarter of 2024 totaled $18.2
million, compared to $16.7 million for the same period last year.
Net revenue for the six months ended June 30, 2024, totaled $35.2
million compared to $28.5 million for the same period last
year.
Cost of revenue for the second quarter of 2024 totaled $2.9
million, compared to $2.4 million for the same period last year.
Cost of revenue for the six months ended June 30, 2024, totaled
$5.0 million as compared to $5.6 million for the same period last
year. The decrease in the cost of revenue for the six months ended
June 30, 2024, as compared to the same period last year, was
related to the change in revenue mix due to higher revenue from
Platform clients.
Gross profit for the three and six months ended June 30, 2024,
totaled $15.3 million and $30.2 million, respectively, as compared
to $14.3 million and $22.9 million, respectively, for the same
periods last year. Gross profit margin for the three and six months
ended June 30, 2024, was 84.0% and 85.8%, respectively, as compared
to 85.8% and 80.5%, respectively, for the same periods last
year.
Operating expenses for the three months ended June 30, 2024,
totaled $17.0 million compared to $17.6 million for the same period
last year. Operating expenses for the six months ended June 30,
2024, totaled $34.0 million compared to $29.7 million for the same
period last year.
Finance expense was approximately $42 thousand
and $38 thousand for the three months ended June 30, 2024 and 2023,
respectively. Finance expense was approximately $62 thousand and
$57 thousand for the six months ended June 30, 2024 and 2023,
respectively.
Net loss for the second quarter of 2024 totaled $1.7 million, or
$0.01 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. Net loss for the six months ended June 30, 2024, totaled
$3.9 million, or $0.03 per basic and diluted share, as compared to
net loss of $6.8 million, or $0.05 per basic and diluted share, for
the same period last year.
Adjusted EBITDA [see reconciliation table below] was a loss of
approximately $668 thousand in the second quarter of 2024, compared
to a loss of approximately $1.8 million for the same period last
year. Adjusted EBITDA was a loss of approximately $1.7 million for
the six months ended June 30, 2024, compared to a loss of
approximately $4.1 million for the same period last year.
While the company provided preliminary revenue
for July 2024, it does not anticipate continuing to report
preliminary unaudited monthly revenue and will provide additional
financial information when Q3 2024 financial results are
available.
Liquidity and Capital Resources:As of June 30,
2024, Inuvo had $2.0 million in cash and cash equivalents and an
unused working capital facility of $5.0 million and no debt.
As of August 2, 2024, Inuvo had 140,432,087
common shares issued and outstanding.
Subsequent Events:In July 2024, Inuvo secured a
three-year, $10 million line of credit to finance working capital
needs.
Conference Call Details:
Date: Thursday, August 8, 2024Time: 4:15 p.m. Eastern
Time Toll-free Dial-in Number: 1-800-717-1738International
Dial-in Number: 1-646-307-1865Conference ID: 1174796Webcast
Link: HERE
A telephone replay will be available through Thursday, August
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 1174796 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
(Tables follow)
INUVO, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
June 30 |
|
June 30 |
|
June 30 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenue |
$ |
18,209,005 |
|
|
$ |
16,651,405 |
|
|
$ |
35,232,782 |
|
|
$ |
28,498,845 |
|
Cost of revenue |
|
2,906,188 |
|
|
|
2,368,540 |
|
|
|
5,005,230 |
|
|
|
5,559,103 |
|
Gross profit |
|
15,302,817 |
|
|
|
14,282,865 |
|
|
|
30,227,552 |
|
|
|
22,939,742 |
|
Operating expenses |
|
84.0 |
% |
|
|
85.8 |
% |
|
|
85.8 |
% |
|
|
80.5 |
% |
Marketing costs |
|
12,431,580 |
|
|
|
12,056,616 |
|
|
|
25,534,224 |
|
|
|
19,144,166 |
|
Compensation |
|
3,031,231 |
|
|
|
3,253,416 |
|
|
|
6,256,090 |
|
|
|
6,676,257 |
|
Selling, general and administrative |
|
1,539,393 |
|
|
|
2,311,885 |
|
|
|
2,227,903 |
|
|
|
3,893,774 |
|
Total operating expenses |
|
17,002,204 |
|
|
|
17,621,917 |
|
|
|
34,018,217 |
|
|
|
29,714,197 |
|
Operating loss |
|
(1,699,387 |
) |
|
|
(3,339,052 |
) |
|
|
(3,790,665 |
) |
|
|
(6,774,455 |
) |
Interest expense |
|
42,451 |
|
|
|
38,186 |
|
|
|
62,831 |
|
|
|
57,306 |
|
Other income |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
14,418 |
|
Income tax expense |
|
5,353 |
|
|
|
- |
|
|
|
5,353 |
|
|
|
- |
|
Net loss |
$ |
(1,747,191 |
) |
|
$ |
(3,377,238 |
) |
|
$ |
(3,858,849 |
) |
|
$ |
(6,817,343 |
) |
Other comprehensive income |
|
|
|
|
|
|
Unrealized loss on marketable securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
84,868 |
|
Comprehensive loss |
$ |
(1,747,191 |
) |
|
$ |
(3,377,238 |
) |
|
$ |
(3,858,849 |
) |
|
$ |
(6,732,475 |
) |
|
|
|
|
|
|
|
Earnings per share, basic and diluted |
|
|
|
|
|
|
Net loss income |
$ |
(0.01 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.05 |
) |
Weighted average shares outstanding |
|
|
|
|
|
|
Basic |
|
140,118,532 |
|
|
|
127,249,916 |
|
|
|
139,453,962 |
|
|
|
124,115,098 |
|
Diluted |
|
140,118,532 |
|
|
|
127,249,916 |
|
|
|
139,453,962 |
|
|
|
124,115,098 |
|
|
|
|
|
|
|
|
INUVO, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
June 30 |
|
December 31 |
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalent |
$ |
2,011,904 |
|
|
$ |
4,440,454 |
|
Marketable securities-short term |
|
- |
|
|
|
- |
|
Accounts receivable, net |
|
8,081,326 |
|
|
|
9,226,956 |
|
Prepaid expenses and other current assets |
|
1,038,038 |
|
|
|
1,076,121 |
|
Total current assets |
|
11,131,268 |
|
|
|
14,743,531 |
|
|
|
|
|
Property and equipment, net |
|
1,756,989 |
|
|
|
1,680,788 |
|
|
|
|
|
Goodwill |
|
9,853,342 |
|
|
|
9,853,342 |
|
Intangible assets, net of accumulated amortization |
|
4,172,541 |
|
|
|
4,664,791 |
|
Other assets |
|
1,543,958 |
|
|
|
1,431,692 |
|
|
|
|
|
Total assets |
$ |
28,458,098 |
|
|
$ |
32,374,144 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
6,075,889 |
|
|
$ |
6,432,120 |
|
Accrued expenses and other current liabilities |
|
7,870,368 |
|
|
|
8,100,354 |
|
Total current liabilities |
|
13,946,257 |
|
|
|
14,532,474 |
|
|
|
|
|
Long-term liabilities |
|
972,271 |
|
|
|
859,484 |
|
|
|
|
|
Total stockholders' equity |
|
13,539,570 |
|
|
|
16,982,186 |
|
Total liabilities and stockholders' equity |
$ |
28,458,098 |
|
|
$ |
32,374,144 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
June 30 |
|
June 30 |
|
June 30 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(1,747,191 |
) |
|
$ |
(3,377,238 |
) |
|
$ |
(3,858,849 |
) |
|
$ |
(6,817,343 |
) |
Interest Expense |
|
42,451 |
|
|
|
38,186 |
|
|
|
62,831 |
|
|
|
57,306 |
|
Income tax Expense |
|
5,353 |
|
|
|
- |
|
|
|
5,353 |
|
|
|
- |
|
Depreciation |
|
430,676 |
|
|
|
432,053 |
|
|
|
857,754 |
|
|
|
824,954 |
|
Amortization |
|
282,240 |
|
|
|
273,495 |
|
|
|
528,365 |
|
|
|
550,263 |
|
EBITDA |
|
(986,471 |
) |
|
|
(2,633,504 |
) |
|
|
(2,404,546 |
) |
|
|
(5,384,820 |
) |
Stock-based compensation |
|
318,681 |
|
|
|
503,061 |
|
|
|
714,993 |
|
|
|
935,145 |
|
Non recurring items: |
|
|
|
|
|
|
Doubtful account reserve |
|
- |
|
|
|
378,928 |
|
|
|
- |
|
|
|
361,097 |
|
Adjusted EBITDA |
$ |
(667,790 |
) |
|
$ |
(1,751,515 |
) |
|
$ |
(1,689,553 |
) |
|
$ |
(4,088,578 |
) |
|
|
|
|
|
|
|
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.
Inuvo (AMEX:INUV)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Inuvo (AMEX:INUV)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024