Inuvo Reports Financial Results for the Fourth Quarter and Full Year Ending December 31, 2017

LITTLE ROCK, Ark., Feb. 07, 2018 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE:INUV), an advertising technology company, today reported its financial results for the fourth quarter and full year period ending December 31, 2017. Revenue for the 2017 fourth quarter and full year increased 21% year-over-year to $23.8 million and 11% year-over-year to $79.6 million, respectively.

“At 17% CAGR (compound annual growth rate) since 2014, the strong 2017 fourth quarter and full year financial results demonstrate Inuvo’s ability to thrive in a competitive market. Within the year, we added new sales resources, technology, associates, partners, clients and an office in California,” commented Rich Howe, Chairman and CEO of Inuvo. “We also just completed our best January in history and as a result are poised for a strong 2018. Machine learning in advertising is not aspirational for Inuvo, we are doing it billions of times every day.”

2017 Fourth Quarter and Full Year Financial Highlights:

  • Fourth quarter revenue increased 21% to $23.8 million year-over-year.
  • 2017 full year revenue increased 11% to $79.6 million year-over-year.
  • Fourth quarter adjusted EBITDA totaled approximately $758,000.
  • 2017 full year adjusted EBITDA totaled approximately $1.1 million.
  • Fourth quarter net income totaled approximately $1 million.
  • 2017 full year net loss totaled approximately $3.1 million.
  • In 2017, non-cash depreciation, amortization and stock-based compensation totaled approximately $4.3 million,
  • In 2017, one-time expenses from the February 2017 acquisition totaled approximately $1 million.
  • Fourth quarter included a favorable $1.5 million tax adjustment.
  • Cash balance as of December 31, 2017 was approximately $4.1 million.
  • In 2017, 45,900 shares of common stock were repurchased at an average price of $0.98 per share.

2017 Operational Highlights:

  • Full-time headcount at Inuvo totals 80, which yielded $1 million in revenue per employee in 2017.
  • Monthly revenue from the February 2017 acquisition grew 125% to $1.9 million in December 2017.
  • Revenue concentration improved, with over 23% of 2017 revenues from new sources.
  • Invested in new sales and account management organization led by a seasoned Chief Revenue Officer.
  • Mobile revenue increased from 52% in 2016 to over 62% in 2017.
  • Developed relationships in China that could yield demand for services in 2018.

January Highlights:
Preliminary unaudited revenue in January 2018 was approximately $7.7 million, an increase of 37% year-over-year.  The Company does not anticipate continuing to report preliminary unaudited monthly revenue and will provide additional financial information when Q1 2018 financial results are available.

Revenue Guidance:
The Company expects to deliver double digit revenue growth in 2018. The Company's revenue expectation represents management's view as of February 7, 2018 and such expectation should not be assumed to be current as of any future date.

Conference Call Information:
Date: Wednesday, February 7, 2018
Time: 4:15 p.m. ET
Domestic Dial-in number: 1-800-289-0438
International Dial-in number: 1-323-794-2423
Live webcast:

A telephone replay will be available through February 21, 2018. To access the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). At the system prompt, enter the code 1207045 followed by the # sign. You will then be prompted for your name, company and phone number. Playback will then automatically begin.

About Inuvo, Inc. 
Inuvo®, Inc. (NYSE:INUV) is an advertising technology business. The Inuvo MarketPlace is a set of technologies designed to connect advertisers (demand) with consumer audiences through publishers (supply) across device types. Inuvo can serve ads within content, video and images. To learn more about Inuvo, please visit or download our app for Apple iPhone or for Android.

Forward-looking Statements 
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to our lack of profitable operating history, successful integration of the NetSeer business, changes in our business, potential need for additional capital, fluctuations in demand; changes to economic growth in the U.S. economy; and government policies and regulations, including, but not limited to those affecting the Internet, all as set forth in our Annual Report on Form 10-K for the year ended December 31, 2017. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Inuvo and are difficult to predict. Inuvo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

    December 31,   December 31,
    2017   2016
Current assets        
Cash   $4,084,686   $3,946,804
Accounts receivable, net   10,759,250   7,586,129
Prepaid expenses and other current assets   400,191   293,113
Total current assets   15,244,127   11,826,046
Property and equipment, net   2,306,279   1,615,223
Other assets        
Goodwill   9,853,342   5,760,808
Intangible assets, net   10,808,018   8,343,876
Other assets   36,070   15,186
Total other assets   20,697,430   14,119,870
Total assets   $38,247,836   $27,561,139
Liabilities and Stockholders’ Equity        
Current liabilities        
Accounts payable   $13,614,053   $9,280,779
Revolving credit line-current portion   4,900,000   -
Accrued expenses and other current liabilities   2,887,816   2,689,640
Total current liabilities   21,401,869   11,970,419

Long-term liabilities
Deferred tax liability   2,331,900   3,738,500
Other long-term liabilities   426,725   326,428
Total long-term liabilities   2,758,625   4,064,928
Total stockholders' equity   14,087,342   11,525,792
Total liabilities and stockholders' equity   $38,247,836   $27,561,139


    Three Months Ended   Twelve Months Ended
    December 31,   December 31,   December 31,   December 31,
Net revenue   $23,755,948   $19,665,654   $79,554,493   $71,530,102
Cost of revenue   11,507,782   7,972,197   36,669,543   21,364,795
Gross profit   12,248,166   11,693,457   42,884,950   50,165,307
Operating expenses            
Marketing costs   7,455,912   8,800,181   28,578,401   39,195,653
Compensation   3,146,809   1,857,146   10,200,117   6,830,338
Selling, general and administrative   2,034,354   1,237,257   8,342,906   4,996,482
Total operating expenses   12,637,075   11,894,584   47,121,424   51,022,473
Operating loss   (388,909)   (201,127)   (4,236,474)   (857,166)
Interest expense, net   (105,271)   (28,181)   (318,193)   (99,965)
Loss from continuing operations
before taxes
  (494,180)   (229,308)   (4,554,667)   (957,131)
Income tax benefit (loss)   1,498,076   (62,739)   1,498,076   29,260
Net income (loss) from continuing
  1,003,896   (292,047)   (3,056,591)   (927,871)
Net income (loss) from discontinued
  -   (16,910)   (1,109)   155,287
Net income (loss)   1,003,896   (308,957)   (3,057,700)   (772,584)
Earnings per share, basic and diluted                
From continuing operations   $0.04   ($0.01)   ($0.11)   ($0.04)
From discontinued operations   -   -   -   0.01
Net income (loss)   $0.04   ($0.01)   ($0.11)   ($0.03)
Weighted average shares outstanding                
Basic   28,622,994   24,928,247   28,155,320   24,660,995
Diluted   28,701,884   24,928,247   28,155,320   24,660,995


    Three Months Ended
Year Ended
    December 31,   December 31,   December 31,   December 31,
    2017   2016   2017   2016
Loss from continuing operations before taxes   ($494,180)   ($229,308)   ($4,554,667)   (957,131)
Interest expense, net   105,271   28,181   318,193   99,965
Depreciation   426,306   320,326   1,503,449   1,279,030
Amortization   363,998   231,060   1,526,352   930,708
Stock-based compensation   356,735   262,222   1,279,807   1,264,266
Non-recurring expense associated with acquiring NetSeer   -   -   996,467   -
Adjusted EBITDA   $758,130   $612,481   $1,069,601   $2,616,838

Reconciliation of Loss from Continuing Operations before Taxes to Adjusted EBITDA
We present Adjusted EBITDA as a supplemental measure of our performance. We defined Adjusted EBITDA as net loss from continuing operations before taxes plus (i) interest expense, net, (ii) depreciation, (iii) amortization, (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 further adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating 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 Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Company Contact:
Inuvo, Inc.
Wally Ruiz, Chief Financial Officer

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director

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Source: Inuvo Inc.