Inuvo, Inc. (NYSE American: INUV), a leading provider of marketing
technology, powered by artificial intelligence (AI) that serves
brands and agencies, today announced its financial results for the
fourth quarter and full year ending December 31, 2021.
Rich Howe, Chief Executive Officer of Inuvo, commented, “We
reported another strong fourth quarter, delivering $19.7 million in
revenue, an increase of 53% year-over-year and 17% sequentially.
Year-over-year revenue growth from the second quarter through the
fourth quarter of 2021 was 66%, 83% and now 53%, a testament to the
demand for both the ValidClick and IntentKey platforms.
Additionally, as we had been messaging throughout the year, we
delivered a positive Adjusted EBITDA in the fourth quarter. “
Financial Results for the Fourth Quarter and Full Year
Ended December 31, 2021: Net revenue
for the 2021 fourth quarter totaled $19.7 million as compared to
$12.9 million during the same period in the year prior, an increase
of 53%. Net revenue increased 17.2% sequentially for the 2021
fourth quarter as compared to revenue of $16.8 million for the
third quarter of 2021.
Net revenue for the full year ended December 31, 2021 totaled
$59.8 million as compared to $44.6 million during the same period
the year prior, an increase of 34% year-over-year driven by an
increase in ValidClick revenue of 22% and IntentKey revenue of 75%
year-over-year respectively. As a percentage of revenue, IntentKey
increased from 23.3% to 30.4% for the full year 2021.
Cost of revenue for the full year ended December 31, 2021
totaled $15.9 million as compared to $8.3 million during the same
period the year prior, an increase of 92%. The components of the
cost of revenue have shifted, as the IntentKey platform revenue has
become a greater percentage of net revenue. The increase in cost of
revenue was largely due to the acquisition of new customers. Cost
of revenue for the 2021 fourth quarter increased to $8.5 million as
compared to $2.1 million for the 2020 fourth quarter.
Gross profit totaled $43.9 million for the full year ended
December 31, 2021 as compared to $36.3 million for the same period
the year prior, an increase of 20.9%. Gross profit margin for the
2021 full year was 73.4% as compared to 81.4% for the 2020 full
year. Gross profit totaled $11.3 million for the 2021 fourth
quarter as compared to $10.8 million for the 2020 fourth quarter.
Gross profit margin for the 2021 fourth quarter was 57.1% as
compared to 83.4% for the 2020 fourth quarter. The IntentKey
platform has a lower gross margin than the ValidClick platform but
has a greater overall net margin than the ValidClick platform. As
IntentKey revenue becomes a greater percentage of net revenue,
gross margins decrease.
Operating expenses for the full year ended December 31, 2021
totaled $51.7 million, an increase of 16.4% as compared to $44.4
million for the same period the year prior. Operating expenses for
the 2021 fourth quarter totaled $12.3 million as compared to $12.6
million for the 2020 fourth quarter.
Net loss for the year ended December 31, 2021 totaled $7.6
million. Noncash expenses of amortization, depreciation and
stock-based compensation totaled $5.6 million for the year.
Adjusted EBITDA was $466 thousand in the fourth quarter and a
loss of $2.1 million for the full year.
Liquidity and Capital
Resources: At December 31, 2021,
Inuvo had $13.3 million in cash, cash equivalents and marketable
securities. Net working capital was $12.4 million. As of March 11,
2022 there were 119,547,810 shares of common stock outstanding.
Conference Call Details: Date: Thursday,
March 17, 2022 Time: 4:30 p.m. Eastern Time Toll-free
Dial-in Number: 1-800-289-0438International Dial-in Number:
1-323-794-2423Conference ID: 7249642Webcast Link: HERE
A telephone replay will be available through Thursday, March 31,
2022. 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 7249642 followed by the # sign. You will then be
prompted for your name, company, and phone number. Playback will
then automatically begin.
About InuvoInuvo®, 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 StatementsThis
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,
2021 as filed on March 17, 2022, our Quarterly Reports on Form
10-Q, and our other filings with the SEC. Additionally,
forward looking statements are subject to certain risks, trends,
and uncertainties including the continued impact of Covid-19 on
Inuvo’s business and operations. 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 : KCSA Strategic
CommunicationsValter Pinto, Managing DirectorTel (212)
896-1254Valter@KCSA.com
|
INUVO, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
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Three Months Ended |
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Twelve Months Ended |
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December 31 |
|
December 31 |
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December 31 |
|
December 31 |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net revenue |
|
$19,736,261 |
|
|
$12,902,487 |
|
|
$59,830,688 |
|
|
$44,640,007 |
|
Cost of revenue |
|
8,459,820 |
|
|
2,141,562 |
|
|
15,925,837 |
|
|
8,296,483 |
|
Gross profit |
|
11,276,441 |
|
|
10,760,925 |
|
|
43,904,851 |
|
|
36,343,524 |
|
Operating expenses |
|
|
|
|
|
|
|
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Marketing costs |
|
7,414,070 |
|
|
8,261,359 |
|
|
33,096,000 |
|
|
27,410,284 |
|
Compensation |
|
2,923,046 |
|
|
2,425,592 |
|
|
11,381,279 |
|
|
9,350,831 |
|
Selling, general and administrative |
|
1,971,476 |
|
|
1,920,769 |
|
|
7,198,213 |
|
|
7,630,990 |
|
Total operating expenses |
|
12,308,592 |
|
|
12,607,720 |
|
|
51,675,492 |
|
|
44,392,105 |
|
Operating loss |
|
(1,032,151 |
) |
|
(1,846,795 |
) |
|
(7,770,641 |
) |
|
(8,048,581 |
) |
Interest expense, net |
|
(50,342 |
) |
|
(2,170 |
) |
|
(86,983 |
) |
|
(253,505 |
) |
Other (expense)income ,
net |
|
(158,493 |
) |
|
1,134,000 |
|
|
256,975 |
|
|
997,517 |
|
Net loss |
|
(1,240,986 |
) |
|
(714,965 |
) |
|
(7,600,649 |
) |
|
(7,304,569 |
) |
Other comprehensive
income |
|
|
|
|
|
|
|
|
Unrealized gain on marketable
securities |
|
53,737 |
|
|
0 |
|
|
53,737 |
|
|
0 |
|
Comprehensive loss |
|
(1,187,249 |
) |
|
(714,965 |
) |
|
(7,546,912 |
) |
|
(7,304,569 |
) |
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Per common share data |
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Basic and diluted |
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Net loss |
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($0.01 |
) |
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($0.01 |
) |
|
($0.06 |
) |
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($0.09 |
) |
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Weighted average shares
outstanding |
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Basic |
|
117,613,845 |
|
|
97,629,735 |
|
|
117,613,845 |
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|
77,473,749 |
|
Diluted |
|
117,613,845 |
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|
97,629,735 |
|
|
117,613,845 |
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|
77,473,749 |
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INUVO, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
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December 31 |
|
December 31, |
|
|
2021 |
|
2020 |
Assets |
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|
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|
|
|
|
Cash and cash equivalent |
|
$10,475,964 |
|
|
$7,890,665 |
|
Marketable securities-short
term |
|
1,927,979 |
|
|
- |
|
Accounts receivable, net |
|
9,265,813 |
|
|
6,227,610 |
|
Prepaid expenses and other
current assets |
|
1,408,186 |
|
|
413,435 |
|
Total current assets |
|
23,077,942 |
|
|
14,531,710 |
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|
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|
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Property and equipment,
net |
|
1,506,766 |
|
|
1,187,061 |
|
Other assets |
|
|
|
|
Marketable securities-long term |
|
859,512 |
|
|
- |
|
Referral and support services agreement advance |
1,100,000 |
|
|
- |
|
Intangible assets, net of accumulated amortization |
6,720,585 |
|
|
8,586,089 |
|
Goodwill |
|
9,853,342 |
|
|
9,853,342 |
|
Right of use assets and other assets |
|
878,927 |
|
|
1,023,369 |
|
Total other assets |
|
19,412,366 |
|
|
19,462,800 |
|
Total assets |
|
$43,997,074 |
|
|
$35,181,571 |
|
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Liabilities and
Stockholders’ Equity |
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Current liabilities |
|
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Accounts payable |
|
$4,844,716 |
|
|
$4,048,260 |
|
Accrued expenses and other current liabilities |
5,374,391 |
|
|
4,216,448 |
|
Lease liability |
|
443,432 |
|
|
464,464 |
|
Total current liabilities |
|
10,662,539 |
|
|
8,729,172 |
|
|
|
|
|
|
Deferred tax liability |
|
107,000 |
|
|
107,000 |
|
Lease liability and other
long-term liabilities |
|
419,540 |
|
|
1,056,285 |
|
Total long-term
liabilities |
|
526,540 |
|
|
1,163,285 |
|
|
|
|
|
|
Total stockholders'
equity |
|
32,807,995 |
|
|
25,289,114 |
|
Total liabilities and
stockholders' equity |
|
$43,997,074 |
|
|
$35,181,571 |
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RECONCILIATION OF OPERATING LOSS TO ADJUSTED
EBITDA |
(unaudited) |
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Three Months Ended |
|
Twelve Months Ended |
|
|
December 31 |
|
December 31 |
|
December 31 |
|
December 31 |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Operating loss |
|
($1,032,151 |
) |
|
($1,846,795 |
) |
|
($7,770,641 |
) |
|
($8,048,581 |
) |
Depreciation |
|
332,918 |
|
|
318,623 |
|
|
1,277,664 |
|
|
1,372,426 |
|
Amortization |
|
551,700 |
|
|
542,827 |
|
|
2,188,251 |
|
|
2,233,485 |
|
EBITDA |
|
(147,533 |
) |
|
(985,345 |
) |
|
(4,304,726 |
) |
|
(4,442,670 |
) |
Stock-based compensation |
|
613,238 |
|
|
198,068 |
|
|
2,179,254 |
|
|
858,683 |
|
Non-recurring items: |
|
|
|
|
|
|
PPP Loan Forgiven |
|
- |
|
|
1,109,000 |
|
|
- |
|
|
1,109,000 |
|
Third party rights
agreement |
|
- |
|
|
24,999 |
|
|
- |
|
|
78,762 |
|
Adjusted EBITDA |
|
$465,705 |
|
|
$346,722 |
|
|
($2,125,472 |
) |
|
($2,396,225 |
) |
|
|
|
|
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|
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
operating loss plus (i) depreciation, and (ii) amortization. We
further define Adjusted EBITDA as EBITDA plus (iii) stock-based
compensation and (iv) 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.
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