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Inuvo(INUV) - 2023 Q4 - Annual Results
INUVInuvo(INUV)2024-02-29 22:03

Financial Performance - Revenue increased by 21% year-over-year to 20.8millioninQ42023[5]−Grossprofitroseby5520.8 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 73.9million,aslightdecreasefrom73.9 million, a slight decrease from 75.6 million in 2022[5] - Cost of revenue decreased significantly to 2.6millioninQ42023from2.6 million in Q4 2023 from 5.5 million in Q4 2022[6] - Net loss for Q4 2023 improved to 2.4million,or2.4 million, or 0.02 per share, compared to a net loss of 4.0million,or4.0 million, or 0.03 per share, in Q4 2022[11] - Adjusted EBITDA loss improved by 600thousandinQ42023comparedtothesameperiodlastyear[6][12]−EBITDAforQ42023was600 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)millioninQ42022,indicatinga47.1(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)millioninQ42022,reflectinga32.7(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 15.7millioninQ42022[9]−Totaldepreciationfortheyear2023was15.7 million in Q4 2022[9] - Total depreciation for the year 2023 was 1.67 million, up from 1.53millionin2022,markinganincreaseof9.31.53 million in 2022, marking an increase of 9.3%[24] - Stock-based compensation for the year 2023 was 1.99 million, down from 2.35millionin2022,adecreaseof15.52.35 million in 2022, a decrease of 15.5%[24] - Interest expense for the year 2023 was 29.57 million, an increase from 21.11millionin2022,reflectinga40.121.11 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 1.37millionrelatedtofraudulentmediainthepreviousyear[24]−Unrealizedlossonmarketablesecuritiesfortheyear2023was1.37 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 435.55millionin2022[24]−Doubtfulaccountreservefortheyear2023was435.55 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]