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Inuvo Reports Record Fourth Quarter 2024 Revenue of .2 Million, 26% Year-Over-Year Growth and Net Income

Inuvo Reports Record Fourth Quarter 2024 Revenue of $26.2 Million, 26% Year-Over-Year Growth and Net Income

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Inuvo (NYSE: INUV) reported record Q4 2024 financial results with revenue reaching $26.2 million, marking a 26% year-over-year increase. The company achieved Q4 net income of $141,000 and Adjusted EBITDA of $1.2 million, compared to losses in Q4 2023.

For full-year 2024, revenue grew 13% to $83.8 million, with gross profit increasing to $71.8 million. The net loss decreased 45% to $5.8 million, while Adjusted EBITDA loss improved to $816,000. Key operational highlights included securing a Master Services Agreement with a major retailer, signing 33 new agencies/brands, obtaining a $10.0 million credit line, and launching enhancements to the IntentKey Self-Serve Platform.

Inuvo (NYSE: INUV) ha riportato risultati finanziari record per il quarto trimestre del 2024, con ricavi che hanno raggiunto 26,2 milioni di dollari, segnando un aumento del 26% rispetto all’anno precedente. L’azienda ha registrato un utile netto di $141.000 nel quarto trimestre e un EBITDA rettificato di $1,2 milioni, rispetto alle perdite del quarto trimestre del 2023.

Per l’intero anno 2024, i ricavi sono aumentati del 13% arrivando a 83,8 milioni di dollari, con un utile lordo che è salito a 71,8 milioni di dollari. La perdita netta è diminuita del 45% a 5,8 milioni di dollari, mentre la perdita di EBITDA rettificato è migliorata a 816.000 dollari. Tra i principali risultati operativi ci sono stati la stipula di un Master Services Agreement con un grande rivenditore, la firma di 33 nuove agenzie/brand, l’ottenimento di una linea di credito di 10,0 milioni di dollari e il lancio di miglioramenti alla piattaforma IntentKey Self-Serve.

Inuvo (NYSE: INUV) reportó resultados financieros récord para el cuarto trimestre de 2024, con ingresos que alcanzaron 26,2 millones de dólares, marcando un aumento del 26% en comparación con el año anterior. La compañía logró un ingreso neto de $141,000 en el cuarto trimestre y un EBITDA ajustado de $1,2 millones, en comparación con pérdidas en el cuarto trimestre de 2023.

Para el año completo 2024, los ingresos crecieron un 13% alcanzando 83,8 millones de dólares, con una ganancia bruta que aumentó a 71,8 millones de dólares. La pérdida neta disminuyó un 45% a 5,8 millones de dólares, mientras que la pérdida de EBITDA ajustado mejoró a 816,000 dólares. Los puntos destacados operativos incluyeron asegurar un Master Services Agreement con un importante minorista, firmar 33 nuevas agencias/marcas, obtener una línea de crédito de 10,0 millones de dólares y lanzar mejoras en la plataforma IntentKey Self-Serve.

Inuvo (NYSE: INUV)는 2024년 4분기 재무 결과가 기록적이라고 보고하며, 수익이 2,620만 달러에 도달하여 전년 대비 26% 증가했다고 발표했습니다. 회사는 4분기 순이익으로 141,000달러와 조정된 EBITDA로 120만 달러를 달성했으며, 이는 2023년 4분기의 손실과 비교됩니다.

2024년 전체 연도 동안 수익은 13% 증가하여 8,380만 달러에 이르렀으며, 총 이익은 7180만 달러로 증가했습니다. 순손실은 45% 감소하여 580만 달러에 이르렀고, 조정된 EBITDA 손실은 816,000달러로 개선되었습니다. 주요 운영 하이라이트에는 주요 소매업체와의 마스터 서비스 계약 체결, 33개의 새로운 에이전시/브랜드 계약, 1천만 달러의 신용 한도 확보, IntentKey Self-Serve 플랫폼의 개선 사항 출시가 포함되었습니다.

Inuvo (NYSE: INUV) a annoncé des résultats financiers records pour le quatrième trimestre 2024, avec un chiffre d’affaires atteignant 26,2 millions de dollars, marquant une augmentation de 26 % par rapport à l’année précédente. L’entreprise a réalisé un bénéfice net de 141 000 dollars pour le quatrième trimestre et un EBITDA ajusté de 1,2 million de dollars, par rapport à des pertes au quatrième trimestre 2023.

Pour l’année complète 2024, le chiffre d’affaires a augmenté de 13 % pour atteindre 83,8 millions de dollars, avec un bénéfice brut passant à 71,8 millions de dollars. La perte nette a diminué de 45 % pour atteindre 5,8 millions de dollars, tandis que la perte d’EBITDA ajusté s’est améliorée à 816 000 dollars. Les points forts opérationnels incluent la conclusion d’un Master Services Agreement avec un grand détaillant, la signature de 33 nouvelles agences/marques, l’obtention d’une ligne de crédit de 10,0 millions de dollars et le lancement d’améliorations de la plateforme IntentKey Self-Serve.

Inuvo (NYSE: INUV) hat Rekordergebnisse für das vierte Quartal 2024 veröffentlicht, mit Einnahmen von 26,2 Millionen Dollar, was einem Anstieg von 26 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte im vierten Quartal einen Nettogewinn von 141.000 Dollar und ein bereinigtes EBITDA von 1,2 Millionen Dollar, verglichen mit Verlusten im vierten Quartal 2023.

Für das gesamte Jahr 2024 wuchsen die Einnahmen um 13 % auf 83,8 Millionen Dollar, während der Bruttogewinn auf 71,8 Millionen Dollar anstieg. Der Nettoverlust verringerte sich um 45 % auf 5,8 Millionen Dollar, während der Verlust beim bereinigten EBITDA auf 816.000 Dollar verbessert wurde. Zu den wichtigsten operativen Höhepunkten gehörten der Abschluss eines Master Services Agreement mit einem großen Einzelhändler, die Unterzeichnung von 33 neuen Agenturen/Marken, die Sicherstellung einer Kreditlinie über 10,0 Millionen Dollar und die Einführung von Verbesserungen der IntentKey Self-Serve-Plattform.

Positive


  • Record Q4 revenue of $26.2M, up 26% YoY


  • First quarterly net income of $141K in Q4 2024


  • Q4 Adjusted EBITDA positive at $1.2M


  • 45% reduction in annual net loss


  • Secured $10M credit line


  • Signed 33 new agencies/brands


  • No debt and $12.5M available liquidity


Negative


  • Full-year net loss of $5.8M despite improvements


  • Gross profit margin declined to 83.1% in Q4 from 87.3% YoY


  • 14.8% increase in Marketing costs


  • Higher interest expenses due to credit line usage


Insights


Inuvo’s Q4 2024 results mark a pivotal inflection point in the company’s financial trajectory, delivering its first quarterly profit in recent history with net income of $141,000 alongside record revenue of $26.2 million (26% YoY growth). This performance caps a year of accelerating momentum, with the company maintaining an impressive 7% compounded quarterly growth rate over 18 consecutive quarters.

The sixfold improvement in full-year Adjusted EBITDA (loss narrowed from $5.3 million to just $816,000) signals that Inuvo’s path to sustainable profitability is materializing. Particularly encouraging is the $230,000 in positive operating cash flow generated in 2024, demonstrating that the business model is beginning to achieve operational scale.

The company’s AI-driven IntentKey Self-Serve Platform appears to be gaining market traction, with technological enhancements democratizing advanced audience targeting capabilities. This development is significant as self-serve platforms typically deliver higher margins and more scalable revenue growth compared to managed service models in the AdTech industry.

While marketing costs increased 14.8% year-over-year, this investment appears justified by the accelerating revenue growth. However, the slight compression in Q4 gross margin (from 87.3% to 83.1%) warrants monitoring, as it reflects higher costs associated with platform clients.

The Master Services Agreement with “one of the largest retailers in the world” represents a potentially transformative opportunity, as such enterprise clients typically drive significant recurring revenue while validating Inuvo’s AI technology in a highly competitive market. Combined with 33 new agency/brand relationships, Inuvo appears to be diversifying its client base effectively.

With $2.5 million in cash, no debt, and an untapped $10 million credit facility, Inuvo has sufficient liquidity to fund continued growth initiatives while maintaining financial flexibility in a rapidly evolving digital advertising landscape.

Inuvo’s IntentKey Self-Serve Platform represents a significant technological breakthrough in the AI AdTech landscape by effectively removing the technical barriers that have historically advanced audience targeting to specialists. The platform’s ability to transform simple natural language audience descriptions into executable targeting parameters addresses a fundamental pain point in digital advertising: the expertise gap between marketers’ conceptual understanding of their audience and the technical implementation of targeting parameters.

Unlike conventional contextual or behavioral targeting systems that rely on pre-defined audience segments or keyword matching, Inuvo’s technology appears to employ advanced natural language processing capabilities to interpret marketer intent and translate it into sophisticated targeting algorithms. This approach fundamentally differs from competitors that typically require either technical expertise or predefined audience segments.

The technological significance extends beyond mere usability improvements. By democratizing access to AI-powered targeting, Inuvo is potentially expanding the addressable market for advanced advertising technology beyond large agencies and brands to include mid-market advertisers who previously lacked the resources for sophisticated campaigns. This expanded market accessibility likely contributed to their ability to sign 33 new agencies/brands in 2024.

The 26% year-over-year revenue growth in Q4 suggests the technology is delivering measurable performance advantages that justify adoption. Particularly notable is that this growth occurred during a period when many AdTech companies faced headwinds from privacy changes and cookie deprecation, indicating Inuvo’s AI approach may be more resilient to these industry challenges.

From a technical architecture perspective, the self-serve model enables greater scalability with lower marginal costs compared to managed service approaches. This structural advantage likely contributed to the significant improvement in Adjusted EBITDA, as incremental revenue can be generated without proportional increases in operational overhead.

The master agreement with a major retailer represents a particularly valuable validation of the technology’s enterprise readiness, as retail advertising environments demand both precision and scale across vast product catalogs and customer segments – technical requirements that stress-test the capabilities of any AI system.












Q4 2024 Net Income of $141 thousand and Adjusted EBITDA of $1.2 million

Inuvo management to host conference call today at 4:15 PM ET

LITTLE ROCK, Ark., Feb. 27, 2025 (GLOBE NEWSWIRE) — Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today provided a business update and announced its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights:

  • Revenue was a record $26.2 million, a 26% increase compared to $20.8 million in Q4 2023
  • Gross profit increased 20% to $21.8 million, compared to $18.2 million in Q4 2023
  • Net income was $141 thousand, compared to net loss of $2.4 million for Q4 2023
  • Adjusted EBITDA was $1.2 million, compared to a loss of $1.2 million for Q4 2023

Full Year 2024 Financial Highlights:

  • Revenue increased 13% to $83.8 million, compared to $73.9 million in 2023
  • Gross profit increased 13% to $71.8 million, compared to $63.4 million in 2023
  • Net loss decreased by 45% to a loss of $5.8 million, compared to a net loss of $10.4 million in 2023
  • Adjusted EBITDA loss improved sixfold to $816,000 compared to $5.3 million in 2023
  • $230,000 in Net Cash from Operating activities was generated in 2024

2024 Operational Highlights:

  • Secured a Master Services Agreement with one of the largest retailers in the world
  • Signed 33 new agencies/brands and one new platform during the year
  • Secured a $10.0 million credit line in July
  • Launched enhancements to the IntentKey Self-Serve Platform, an advanced AI agent specifically designed for audience modeling

Richard Howe, CEO of Inuvo, stated, “Q4 2024 was a record-breaking quarter, delivering 26% year-over-year growth and generating $26.2 million in revenue—our largest quarter ever. This strong performance contributed to a 13% revenue increase for the full fiscal year. Over the past 18 quarters, we have sustained an approximately 7% compounded quarterly growth rate. This year, all our key financial metrics had strong year-over-year improvements. Notably, in Q4, we achieved positive net income and adjusted EBITDA.”

Mr. Howe continued, “We made a number of significant technological advancements in 2024, most notably the enhancements to the IntentKey Self-Serve Platform. This groundbreaking innovation democratizes advertising by allowing anyone of any caliber to describe and then immediately execute targeting, giving the AI nothing other than some simple audience descriptions.”

Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024

Net revenue for the fourth quarter of 2024 totaled $26.2 million, compared to $20.8 million for the same period last year, a 26% year-over-year increase. The higher revenue was due to increasing demand within both Platforms and Agencies & Brands. Net revenue for the year ended December 31, 2024 totaled $83.8 million, compared to $73.9 million during the same period in 2023, a 13% year-over-year increase.

Cost of revenue for the fourth quarter of 2024, totaled $4.4 million compared to $2.6 million for the same period last year. Cost of revenue for the full year ended December 31, 2024, totaled $12.0 million, as compared to $10.5 million for the same period last year. The increase in the cost of revenue for the three months and full year ended December 31, 2024, as compared to the same period last year, was due to higher revenue within a Platform client this year.

Gross profit for the fourth quarter of 2024 and full year ended December 31, 2024 totaled $21.8 million and $71.8 million, respectively, as compared $18.2 million and $63.4 million, respectively, for the same periods last year. Gross profit margin for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately 83.1% and 85.6%, respectively, as compared to 87.3% and 85.8%, respectively, for the same periods last year.

Operating expenses for the fourth quarter of 2024 totaled $21.5 million, compared to $20.6 million for the same period last year. Operating expenses for the full year ended December 31, 2024 totaled $77.3 million, compared to $73.8 million for the same period last year. The higher operating expenses for the year ended December 31, 2024 was primarily driven by a 14.8% increase in Marketing costs compared to the same period in 2023. This increase was largely attributable to higher revenue from Platform advertisers.

Net interest expense/income for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately an expense of $103 thousand and an income of $267 thousand, respectively, compared to an income of approximately $8 thousand and an expense of $30 thousand for the same periods last year, respectively. The higher interest expense this year was due to increased borrowing from our line of credit.

Other expense/income for both the fourth quarter of 2024 and the full year ended December 31, 2024 was income of approximately $27 thousand, respectively, compared to income of approximately $0 and $15 thousand for the same periods last year, respectively. The income for this year was due to setup charges for new Platform partners. Last year’s income was due to unrealized and realized gains on trading securities.

Net income for the fourth quarter of 2024 was $141 thousand, or $0.00 per basic and diluted share, as compared to net loss of $2.4 million, or $0.02 per basic and diluted share, for the same period last year. Net loss for the full year ended December 31, 2024 totaled $5.8 million, or $0.04 per basic and diluted share, as compared to net loss of $10.4 million, or $0.08 per basic and diluted share, for the same period last year.

Adjusted EBITDA [see reconciliation table below] was approximately $1.2 million in the fourth quarter of 2024, compared to an Adjusted EBITDA loss of approximately $1.2 million for the same period last year. Adjusted EBITDA was a loss of approximately $816 thousand for the full year ended December 31, 2024, compared to a loss of approximately $5.3 million for the same period last year.

Liquidity and Capital Resources:

On December 31, 2024, Inuvo had $2.5 million in cash and cash equivalents, an unused working capital facility of $10.0 million and no debt.

As of February 21, 2025, Inuvo had 142,795,483 common shares issued and outstanding.

Conference Call Details: 
Date: Thursday, February 27, 2025
Time: 4:15 p.m. Eastern Standard Time 
Toll-free Dial-in Number: 1-800-717-1738
International Dial-in Number: 1-646-307-1865
Conference ID: 11158080
Webcast Link: HERE

A telephone replay will be available through Thursday, March 13, 2025. 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 11158080 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. 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, 2024 as filed on February 27, 2025, and our other filings with the SEC. 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   Twelve Months Ended
  December 31   December 31   December 31
   December 31
    2024       2023       2024       2023  
Net revenue $ 26,189,924     $ 20,842,095     $ 83,793,859     $ 73,911,528  
Cost of revenue   4,433,905       2,643,543       12,033,777       10,477,272  
Gross profit   21,756,019       18,198,552       71,760,082       63,434,256  
Operating expenses:   83.1 %     87.3 %     85.6 %     85.8 %
Marketing costs   17,122,706       15,212,600       59,663,061       51,982,572  
Compensation   2,703,309       3,591,109       12,065,783       13,793,309  
General and administrative   1,709,887       1,821,821       5,545,049       8,050,590  
Total operating expenses   21,535,902       20,625,530       77,273,893       73,826,771  
Operating income (loss)   220,117       (2,426,978 )     (5,513,811 )     (10,392,515 )
Interest expense (income), net   102,910       (7,884 )     266,772       29,570  
Other income   26,812       –       26,812       14,668  
Income tax expense (benefit)   2,678       (17,764 )     8,030       (17,764 )
Net income (loss)   141,341       (2,401,330 )     (5,761,801 )     (10,389,653 )
Other comprehensive income:                              
Unrealized loss on marketable securities   –       –       –       84,868  
Comprehensive income (loss) $ 141,341     $ (2,401,330 )   $ (5,761,801 )   $ (10,304,785 )
                               
Net loss per share, basic and diluted $0.00     ($0.02 )   ($0.04 )   ($0.08 )
Weighted average shares outstanding:                              
Basic   140,494,192       127,381,051       139,968,374       131,116,370  
Diluted   140,494,192       127,381,051       139,968,374       131,116,370  
             
INUVO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
       
  December 31   December 31
  2024     2023
Assets      
       
Cash and cash equivalent $ 2,459,245     $ 4,440,454  
Accounts receivable, net   12,545,771       9,226,956  
Prepaid expenses and other current assets   639,805       1,076,121  
Total current assets   15,644,821       14,743,531  
       
Property and equipment, net   1,792,903       1,680,788  
       
Goodwill   9,853,342       9,853,342  
Intangible assets, net of accumulated amortization   3,897,875       4,664,791  
Other assets   1,006,990       1,431,692  
       
Total assets $ 32,195,931     $ 32,374,144  
       
Liabilities and Stockholders’ Equity      
       
Current liabilities      
Accounts payable $ 8,422,351     $ 6,432,120  
Accrued expenses and other current liabilities   9,463,537       8,100,354  
Total current liabilities   17,885,888       14,532,474  
       
Long-term liabilities   835,271       859,484  
       
Total stockholders’ equity   13,474,772       16,982,186  
Total liabilities and stockholders’ equity $ 32,195,931     $ 32,374,144  
RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED EBITDA
(unaudited)
                 
  Three Months Ended   Twelve Months Ended
    December 31     December 31   December 31   December 31
    2024       2023       2024       2023  
Net income (loss)   141,341       (2,401,330 )   $ (5,761,801 )   $ (10,389,653 )
Interest expense (income), net   102,910       (7,884 )     266,772       29,570  
Income tax expense (benefit)   2,678       (17,764 )     8,030       (17,764 )
Depreciation and amortization on PP&E   446,608       425,106       1,745,261       1,670,868  
Amortization   123,412       264,523       824,272       1,080,690  
EBITDA   816,949       (1,737,349 )     (2,917,466 )     (7,626,289 )
Stock-based compensation   413,911       514,613       1,501,444       1,986,296  
Non recurring items:                  
Unrealized loss on marketable securities                   14,668  
Doubtful account reserve                   361,097  
Impairment & amortization of services agreement               600,000      
Adjusted EBITDA   1,230,860       (1,222,736 )     (816,022 )     (5,264,228 )
                   

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.









FAQ



What was Inuvo’s (INUV) Q4 2024 revenue growth compared to Q4 2023?


Inuvo’s Q4 2024 revenue grew 26% year-over-year to $26.2 million, compared to $20.8 million in Q4 2023.


How much did Inuvo (INUV) reduce its net loss in fiscal year 2024?


Inuvo reduced its net loss by 45% in 2024, from $10.4 million in 2023 to $5.8 million in 2024.


What was Inuvo’s (INUV) gross profit margin in Q4 2024?


Inuvo’s gross profit margin in Q4 2024 was 83.1%, compared to 87.3% in Q4 2023.


How many new agencies and brands did Inuvo (INUV) sign in 2024?


Inuvo signed 33 new agencies/brands and one new platform during 2024.


What was Inuvo’s (INUV) cash position at the end of 2024?


As of December 31, 2024, Inuvo had $2.5 million in cash and cash equivalents, with an unused $10.0 million working capital facility and no debt.





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