Inuvo Reports 23% Sequential Revenue Growth to $22.4 million for the Third Quarter of 2024
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: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, 2024Time: 8:30 a.m. Eastern Standard Time Toll-free Dial-in Number: 1- 800-717-1738International Dial-in Number: 1- 646-307-1865Conference ID: 1131160Webcast 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: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
Investor Relations: David Waldman / Natalya Rudman Crescendo Communications, LLC Tel: (212) 671-1020
INUVO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Nine Months Ended
September 30
September 30
September 30
September 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
