Fluent, Inc. Announces Preliminary Financial Metrics for 2020
January 14 2021 - 5:53PM
Fluent, Inc. (NASDAQ: FLNT), a leading data-driven performance
marketing company, today announced preliminary financial metrics
for its full year and fourth quarter 2020. These preliminary
metrics, which are subject to final reporting and audit procedures,
are reflected below:
Full-Year and Fourth Quarter 2020
- Full-year 2020 revenue is anticipated to be $309.7 - $310.7
million, representing growth of 10.1% compared to full-year 2019.
This reflects anticipated fourth quarter revenue of $81.0 - $82.0
million.
- Media Margin is anticipated to be in the range of $109.4 -
$110.4 million, representing growth of 17.4% compared to full-year
2019. This reflects anticipated fourth quarter Media Margin of
$31.0 - $32.0 million.
- Adjusted EBITDA is anticipated to be in the range of $39.0 -
$41.0 million, representing growth of 15.4% compared to full-year
2019. This reflects anticipated fourth quarter Adjusted EBITDA of
$9.0 - $11.0 million.
Fluent is not able to provide a reconciliation of projected
media margin or adjusted EBITDA to the most directly comparable
expected GAAP results, due to the unknown effect, timing and
potential significance of certain operating costs and expenses,
share-based compensation expense, depreciation and amortization
expense, interest expense (net), and the provision for (benefit
from) income taxes.
Ryan Schulke, Fluent’s Chief Executive Officer, commented, "We
are pleased to share our preliminary full-year 2020 results. This
was a year that tested us all in many ways, and the diversification
of our marketplace, the resilience of our platform and the resolve
of our team, collectively enabled these results. We look forward to
discussing our final full-year results in March.”
As previously announced, the Company is scheduled to present at
the 23rd Annual Needham Growth Conference on Friday, January 15 at
9:15am Eastern time, and will participate in one-on-one meetings
throughout the course of the day. The presentation will be webcast
live and archived at
https://wsw.com/webcast/needham103/flnt/2254200. Additionally, the
Company has made an investor presentation available on the Investor
Relations section of its website at
http://investors.fluentco.com/.
Definitions and Uses of Non-GAAP Financial
Measures
Media margin is defined as revenue minus cost of revenue
(exclusive of depreciation and amortization) attributable to
variable costs paid for media and related expenses. Media margin is
also presented as percentage of revenue.
Adjusted EBITDA is defined as net income (loss) excluding
(1) income taxes, (2) interest expense, net, (3) depreciation
and amortization, (4) goodwill impairment, (5) write-off of
long-lived assets, (6) accrued compensation expense for Put/Call
Consideration, (7) share-based compensation expense, (8)
acquisition-related costs, (9) restructuring and certain severance
costs, (10) certain litigation and other related costs, and (11)
one-time items.
We present media margin and adjusted EBITDA as supplemental
measures of our financial and operating performance because we
believe they provide useful information to investors. More
specifically:
Media margin, as defined above, is a measure of the efficiency
of the Company’s operating model. We use media margin and the
related measure of media margin as a percentage of revenue as
primary metrics to measure the financial return on our media and
related costs, specifically to measure the degree by which the
revenue generated from our digital marketing services exceeds the
cost to attract the consumers to whom offers are made through our
services. Media margin is used extensively by our management to
manage our operating performance, including evaluating operational
performance against budgeted media margin and understanding the
efficiency of our media and related expenditures. We also use media
margin for performance evaluations and compensation decisions
regarding certain personnel.
Adjusted EBITDA, as defined above, is another primary metric by
which we evaluate the operating performance of our business, on
which certain operating expenditures and internal budgets are based
and by which, in addition to media margin and other factors, our
senior management is compensated. The first three adjustments
represent the conventional definition of EBITDA, and the remaining
adjustments are items recognized and recorded under GAAP in
particular periods but might be viewed as not necessarily
coinciding with the underlying business operations for the periods
in which they are so recognized and recorded. These adjustments
include certain severance costs associated with department-specific
reorganizations and certain litigation and other related costs
associated with legal matters outside the ordinary course of
business. Items are considered one-time in nature if they are
non-recurring, infrequent or unusual and have not occurred in the
past two years or are not expected to recur in the next two years,
in accordance with SEC rules.
Media margin and adjusted EBITDA are not intended to be
performance measures that should be regarded as an alternative to,
or more meaningful than, net income (loss) as indicators of
operating performance. None of these metrics are presented as
measures of liquidity. The way we measure media margin and adjusted
EBITDA may not be comparable to similarly titled measures presented
by other companies and may not be identical to corresponding
measures used in our various agreements.
About Fluent, Inc. Fluent, Inc. (NASDAQ: FLNT)
is a leading performance marketing company with an expertise in
creating meaningful connections between consumers and brands.
Leveraging our proprietary first-party data asset of opted-in
consumer profiles, Fluent, Inc. drives intelligent growth
strategies that deliver superior outcomes. Founded in 2010, the
company is headquartered in New York City.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995The matters
contained in this press release may be considered to be
“forward-looking statements” within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934. Those
statements include statements regarding the intent, belief or
current expectations or anticipations of Fluent and members of our
management team. Factors currently known to management that could
cause actual results to differ materially from those in
forward-looking statements include the following: compliance with a
significant number of governmental laws and regulations, including
those laws and regulations regarding privacy and data; failure to
safeguard the personal information and other data contained in our
database; unfavorable global economic conditions, including as
a result of health and safety concerns around the ongoing COVID-19
pandemic; failure to compete effectively against other online
marketing and advertising companies; dependence on third-party
publishers, internet search providers and social media platforms
for a significant portion of visitors to our websites; dependence
on our key personnel; dependence on emails, text messages and
telephone calls, among other channels, to reach users for marketing
purposes; competition we face for web traffic; ability to compete
and manage media costs in an industry characterized by
rapidly-changing internet media and advertising technology,
evolving industry standards, regulatory uncertainty, and changing
user and client demands; liability related to actions of
third-party publishers; limitations on our or our third-party
publishers’ ability to collect and use data derived from user
activities; ability to remain competitive with the shift of online
interactions from computers to mobile devices; dependence on
third-party service providers; management of the growth of our
operations, including the integration of the AdParlor and Winopoly
businesses and other acquired business units or personnel;
management of unfavorable publicity and negative public perception
about our industry; failure to meet our clients’ performance
metrics or changing needs; risks associated with the expansion of
our international operations; failure to detect click-through
or other fraud on advertisements; achievement of some or all of the
benefits that we expect to achieve as a stand-alone company;
failure to adequately protect intellectual property rights, or
allegations of infringement of intellectual property rights;
compliance with the covenants of our credit agreement; and the
potential for failures in our internal control over financial
reporting. These and additional factors to be considered are set
forth under “Risk Factors” in our Annual Report on Form 10-K for
the fiscal year ended December 31, 2019 and in our other filings
with the Securities and Exchange Commission. Fluent undertakes no
obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results or expectations.
Contact Information: Investor
RelationsFluent, Inc.(917)
310-2070InvestorRelations@fluentco.com
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