UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to ______________________ Commission file number: 001-32442 INUVO, INC. (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Rock, AR 72201 (Addr ...

EX-99.1 2 inuvo_ex991.htm PRESS RELEASE EXHIBIT 99.1 Inuvo Reports 44% Year-Over-Year Revenue Growth to $17.0 Million for the First Quarter of 2024 Gross profit increased by 72% to $14.9 million for the first quarter of 2024 Inuvo management to host conference call today at 4:15 PM ET LITTLE ROCK, AR, May 7, 2024 (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 ...

LITTLE ROCK, Ark., May 01, 2024 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE:INUV), provider of the first generative artificial intelligence (AI) advertiser solution made specifically for brands and agencies, will host a conference call on Tuesday, May 7, 2024, at 4:15 P.M. Eastern Time to discuss its financial results and provide a business update for the for the first quarter ended March 31, 2024. Conference Call Details: Date: Tuesday, May 7, 2024Time: 4:15 P.M. Eastern Time Toll-free Dial-in Number: 1-800-717- ...

LITTLE ROCK, Ark., May 01, 2024 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE American: INUV), provider of the first generative artificial intelligence (AI) advertiser solution made specifically for brands and agencies, will host a conference call on Tuesday, May 7, 2024, at 4:15 P.M. Eastern Time to discuss its financial results and provide a business update for the for the first quarter ended March 31, 2024. Conference Call Details: Date: Tuesday, May 7, 2024Time: 4:15 P.M. Eastern Time Toll-free Dial-in Number: ...

LITTLE ROCK, Ark., April 30, 2024 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE:INUV), provider of the first generative artificial intelligence (AI) advertiser solution made specifically for brands and agencies, today announces a significant enhancement to its Audience Discovery Portal, the latest version of a first-of-its-kind intelligence capable of instantly generating marketing audience insights. Powered by IntentKey AI, a proprietary large language model designed specifically to find and target audiences witho ...

Artificial intelligence is a big business and it will likely get bigger, possibly boding well for AI penny stocks. While extremely speculative, these ideas present enormous upside potential. They could be ideal for those who can stomach extreme volatility.Now, let me just be straightforward. AI penny stocks are akin to knife fights. When you take Krav Maga lessons, your instructor will tell you to avoid confrontations involving knives, if possible. That’s because chances are, you’ll get cut, even if you suc ...

Financial Data and Key Metrics - Revenue for Q4 2023 was $20.8 million, a 21% YoY increase compared to $17.3 million in Q4 2022 [16] - Full-year 2023 revenue was $73.9 million, down 2% from $75.6 million in 2022, primarily due to a weaker-than-expected Q1 [16][53] - Gross profit margin improved to 87.3% in Q4 2023 from 68% in Q4 2022, and full-year gross profit margin increased to 85.8% from 60% in 2022 [46] - Adjusted EBITDA loss improved to $1.2 million in Q4 2023 from $1.8 million in Q4 2022, while full-year adjusted EBITDA loss was $5.3 million compared to $5 million in 2022 [36] - Net loss improved to $2.4 million in Q4 2023 from $4 million in Q4 2022, and full-year net loss improved to $10.4 million from $13.1 million in 2022 [61] Business Line Data and Key Metrics - The company placed over 11 billion ads in 2023, with 280 individual campaigns for agencies and brands and thousands of campaigns for platform clients [4][5] - Revenue split in 2023 was 21% from agencies and brands and 79% from platforms, compared to 52% from platforms and 48% from agencies and brands in 2022 [30][54] - The company added 56 new agency and brand relationships and one new platform relationship in 2023 [30][52] - The IntentKey AI self-service version is now available, contributing to higher margins and expected to significantly impact the bottom line in the coming years [5][7] Market Data and Key Metrics - Apple constitutes roughly 50% of all mobile devices in the US, and its blocking of user tracking has reshaped the internet in favor of ad targeting systems that do not rely on consumer identity [12] - Google, representing 50% of the US browser market share, began phasing out user tracking via third-party cookies in 2023, with plans to complete the process by December 2024 [13] - The global digital advertising industry, valued at over $600 billion annually, is undergoing a significant transformation due to changes in consumer privacy regulations and technological advancements [1][18] Company Strategy and Industry Competition - The company's technology, built around proprietary large language generative AI, solves the identity targeting problem and has outperformed competitors in head-to-head testing [19][20] - Inuvo's AI-driven solutions, such as the IntentKey AI, are designed to predict optimal spend levels across campaigns and channels, providing a competitive edge in the evolving advertising landscape [11][23] - The company is focusing on scaling its self-service AI product and expanding its sales team to target self-service-oriented buyers, which is expected to contribute to higher margins [7][35] - Inuvo is well-positioned to benefit from the industry shift away from identity-based targeting, as its technology does not rely on traditional tracking methods [2][21] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing a 7.5% compounded quarterly growth rate since Q2 2020 and strong momentum heading into 2024 [16][17] - The company expects increased demand for its products and services as advertisers adapt to the new consumer privacy paradigm and experience performance declines with traditional methods [21][77] - Management believes the company can achieve $100 million in annual revenue, a threshold at which gross margins are expected to absorb fixed costs and generate positive cash flow [66][74] Other Important Information - The company had 93 full-time and part-time employees as of December 31, 2023, up from 86 in 2022, with additions primarily in sales and support roles [35] - Inuvo maintained a $5 million working capital line of credit with no outstanding balance and had $4.4 million in cash and cash equivalents as of December 31, 2023 [63] - The company received significant media exposure in 2023, with over 35 media citations, contributing to increased brand awareness [22][72] Q&A Session Summary Question: How does the company plan to educate advertisers and agencies about its new measurement capabilities for Netflix ads? - The company is leveraging its sales team and increasing media exposure to educate the market, with a focus on demonstrating the performance of its AI-driven solutions [48][72] Question: What are the growth rate targets for 2024, and how does the election year impact the ad market? - Management believes the company can achieve $100 million in annual revenue in 2024, driven by existing customers and market traction, despite potential seasonal weakness in Q1 [74][73] Question: Why isn't adoption of the company's product faster, and when can investors expect hockey stick growth? - Adoption is slower due to resistance to change and the reluctance of incumbents to acknowledge the limitations of their solutions, but the company expects accelerated growth over the next three years as the industry shifts [75][77][80] Question: How likely are the 56 new agency and brand customers to be repeat customers in 2024, and will they expand their spending? - The company expects the 56 new agency and brand customers to continue as clients in 2024 and expand their spending, following a "land and expand" strategy [85][92] Question: How does the company plan to manage capacity and demand as it grows? - The company plans to add client-facing resources, such as sales and account managers, while maintaining efficiency, with current revenue per employee at approximately $900,000 [97][94] Question: How long did it take to win the large platform client, and who were the competitors? - The process took nine months, and the company competed against larger, more established competitors, ultimately winning due to the superiority of its technology [99][100] Question: How will the revenue split between platforms and agencies/brands evolve in the future? - Management expects the revenue split to eventually reach parity, with both segments showing strong potential for growth [101]

Financial Performance - Revenue increased by 21% year-over-year to $20.8 million in Q4 2023[5] - Gross profit rose by 55% to $18.2 million in Q4 2023, with a gross margin of 87.3% compared to 68.0% in Q4 2022[3][8] - Net revenue for the full year 2023 totaled $73.9 million, a slight decrease from $75.6 million in 2022[5] - Cost of revenue decreased significantly to $2.6 million in Q4 2023 from $5.5 million in Q4 2022[6] - Net loss for Q4 2023 improved to $2.4 million, or $0.02 per share, compared to a net loss of $4.0 million, or $0.03 per share, in Q4 2022[11] - Adjusted EBITDA loss improved by $600 thousand in Q4 2023 compared to the same period last year[6][12] - EBITDA for Q4 2023 was $(1.74) million, compared to $(3.29) million in Q4 2022, indicating a 47.1% reduction in losses[24] - Adjusted EBITDA for Q4 2023 was $(1.22) million, an improvement from $(1.82) million in Q4 2022, reflecting a 32.7% decrease in losses[24] Operating Expenses - Operating expenses for Q4 2023 totaled $20.6 million, up from $15.7 million in Q4 2022[9] - Total depreciation for the year 2023 was $1.67 million, up from $1.53 million in 2022, marking an increase of 9.3%[24] - Stock-based compensation for the year 2023 was $1.99 million, down from $2.35 million in 2022, a decrease of 15.5%[24] - Interest expense for the year 2023 was $29.57 million, an increase from $21.11 million in 2022, reflecting a 40.1% rise[24] Cash and Debt Position - As of December 31, 2023, the company had $4.4 million in cash and cash equivalents and no debt[13] Product Development and Market Outlook - The company introduced two new higher-margin products in 2023[6] - The sales pipeline is robust, with a promising outlook for 2024 due to advancements in AI capabilities[4] Non-Recurring Items and Adjustments - The company recorded a non-recurring expense of $1.37 million related to fraudulent media in the previous year[24] - Unrealized loss on marketable securities for the year 2023 was $14.67 million, a significant decrease from $435.55 million in 2022[24] - Doubtful account reserve for the year 2023 was $361.10 million, down from $1.24 million in 2022, indicating a 70.9% reduction[24] - The company emphasizes that future results may still be affected by unusual or non-recurring items despite the adjustments made in EBITDA and Adjusted EBITDA[26]

Financial Performance - Revenues decreased approximately 2.2% in 2023 compared to 2022, while gross profit margin increased to 85.8% from 60.0%[54] - Operating loss was approximately $10.3 million in 2023, an improvement from an operating loss of approximately $12.6 million in 2022[54] - The accumulated deficit reached $167.4 million by December 31, 2023[54] - The company’s financial results are seasonal, with lower Revenue Per Click (RPC) typically observed in the fourth and first quarters due to decreased demand[74] - Quarterly revenues and operating results have historically varied significantly, influenced by factors such as distribution partner usage and market conditions[75] Customer Concentration and Churn - Three customers accounted for 60.4%, 12.8%, and 5.7% of revenues in 2023, highlighting significant customer concentration risk[55] - The company has experienced churn in its customer base, with some clients from 2021 no longer being served in 2022[55] Cash and Liquidity - As of December 31, 2023, the company had approximately $4.4 million in cash, cash equivalents, and short-term marketable securities[54] - The company has a $5,000,000 line of credit with Hitachi Capital America Corp., which is subject to certain covenants, and as of December 31, 2023, the company was in compliance with these covenants[77] - The company may need to raise additional capital for growth and acquisitions, which could dilute existing shareholders if equity securities are issued[81] Employment and Grants - The company received a grant of $1,750,000 from the State of Arkansas, contingent upon maintaining at least 50 full-time equivalent positions, which was amended to 43 positions as of March 31, 2022[72] - As of December 31, 2023, the company had 43 full-time employees in Arkansas and accrued a contingent liability of $35,000 due to lower than required employment[73] Regulatory and Compliance Risks - The business is subject to regulatory risks, including potential new laws affecting Internet-based commerce and data privacy[69] - The company must maintain compliance with NYSE American listing standards to avoid potential delisting of its common stock[71] Operational Risks - The company relies on direct relationships with advertisers and advertising agencies for revenue generation, which can be terminated at any time[57] - The company has faced a decrease in the number of supply partners and Internet traffic since late April 2020[58] - The company faces various risks that could impact its financial condition, including competition, regulatory changes, and economic conditions[80] Growth Strategy - The company’s ability to attract new distribution partners and maintain existing relationships is critical for revenue stability[80] - Future acquisitions are a key component of the company’s growth strategy, but there are risks associated with identifying, completing, and integrating these acquisitions[79] Shareholder Dilution - The company has 7,010,016 restricted stock units outstanding, which could lead to significant dilution for shareholders upon vesting[78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to ______________________ Commission file number: 001-32442 Inuvo, Inc. (Exact name of registrant as specified in its charter) Nevada 87-045045 ...