Core Viewpoint - Fluent (FLNT) reported a quarterly loss of $0.31 per share, which was better than the Zacks Consensus Estimate of a loss of $0.38, indicating an earnings surprise of 18.42% [1] - The company’s revenues for the quarter were $55.21 million, missing the Zacks Consensus Estimate by 1.57% and down from $65.98 million a year ago [2] Financial Performance - Over the last four quarters, Fluent has surpassed consensus EPS estimates two times [2] - The company has not been able to beat consensus revenue estimates over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $65.76 million, and for the current fiscal year, it is -$0.43 on revenues of $272.6 million [7] Stock Performance - Fluent shares have declined approximately 6.8% since the beginning of the year, while the S&P 500 has gained 0.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The Advertising and Marketing industry, to which Fluent belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Fluent's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $55.2 million, a decrease of 16% year-over-year, with $5.2 million of that decline attributed to exited businesses in 2024 [16][17] - Commerce Media Solutions revenue increased by 99% to $12.7 million, indicating strong growth momentum [17] - Owned and operated revenue decreased by 30% year-over-year to $31.1 million, primarily due to challenges in acquiring media from social media channels [17][18] - Gross margins decreased compared to the prior year due to media cost pressures and a shift in revenue mix [18] - Adjusted EBITDA for Q1 2025 was a loss of $3.1 million, compared to a positive adjusted EBITDA of $0.7 million in Q1 2024 [19][20] - Net loss for Q1 2025 was $8.3 million, compared to a net loss of $6.3 million in the prior year [22] Business Line Data and Key Metrics Changes - Commerce Media Solutions now represents 23% of consolidated revenue, up from 10% a year ago [12] - Media margin for Q1 2025 was $13.7 million, or 24.9% of revenue, down from $22.1 million or 33.6% of revenue in the previous year [18] - Commerce Media gross margin was $3.1 million, or 24.6% of revenues, compared to $2 million or 31.3% of revenues in Q1 2024 [19] Market Data and Key Metrics Changes - The commerce media market is projected to grow to $100 billion over the next five years, accounting for more than 25% of digital media spend by 2026 [10] - The company is navigating cost pressures from international tariffs and broader retail inflation, creating uncertainty in the industry [12][13] Company Strategy and Development Direction - The company is focusing on growth opportunities in commerce media solutions, leveraging its owned and operated marketplaces as a foundation for expansion [5][6] - A strategic partnership with Rebuy Engine aims to enhance revenue opportunities and access a large Shopify ecosystem [6][10] - The company anticipates a shift in revenue mix towards commerce media solutions, which is expected to improve margins over time [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to year-over-year consolidated revenue growth and positive adjusted EBITDA in the second half of 2025 [9][12] - The company is optimistic about the growth potential in the commerce media industry, viewing it as a significant opportunity for long-term revenue growth [14][24] - Management acknowledged the challenges posed by economic uncertainty but believes that new commerce partners will help offset potential declines in consumer spending [51] Other Important Information - The company ended Q1 2025 with $6.1 million in cash and cash equivalents and reduced total debt to $25.6 million [22][23] - The company is strategically utilizing debt as a source of capital as the business scales [23] Q&A Session Summary Question: Can you share more about the Rebuy Engine partnership and its expected financial contributions? - Management highlighted the strategic importance of the partnership, providing access to a new sales channel in Shopify and enhancing revenue opportunities [26][30] Question: What are the key contributors to accelerating CMS revenue growth back to triple digits? - Management indicated that acquiring new commerce partners and leveraging technology investments will drive growth [32] Question: Can you discuss efforts to expand supply channels for the owned and operated segment? - Management noted ongoing challenges due to regulatory impacts but is exploring new nontraditional platforms to stabilize the business [34][39] Question: What level of stabilization is needed in the O&O segment to achieve positive EBITDA? - Management confirmed that the O&O business remains profitable and expects revenue growth from commerce media to drive overall profitability [46] Question: How does economic uncertainty affect commerce media signings? - Management observed an acceleration in the pipeline during economic uncertainty, indicating a faster conversion of potential clients [55][56] Question: What does the future business model for commerce media look like? - Management expects strong operating leverage and a shift towards contribution margin positivity in 2025 [61][62]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $55.2 million, a decrease of 16% year-over-year, with $5.2 million of that decline attributed to exited businesses in 2024 [16] - Commerce Media Solutions revenue increased by 99% to $12.7 million, indicating strong growth momentum [17] - Owned and operated revenue decreased by 30% year-over-year to $31.1 million, primarily due to challenges in acquiring media from social media channels [17] - Gross margins decreased compared to the prior year due to media cost pressures and a shift in revenue mix [18] - Adjusted EBITDA for Q1 2025 was a loss of $3.1 million, compared to a positive adjusted EBITDA of $0.7 million in Q1 2024 [20] - Net loss for Q1 2025 was $8.3 million, compared to a net loss of $6.3 million in the prior year [21] Business Line Data and Key Metrics Changes - Commerce Media Solutions now represents 23% of consolidated revenue, up from 10% a year ago [12] - Media margin for Q1 was $13.7 million, representing 24.9% of revenue, down from 33.6% in the previous year [18] - Commerce Media gross margin was $3.1 million or 24.6% of revenues, compared to $2 million or 31.3% in Q1 2024, showing strong growth despite lower margins [19] Market Data and Key Metrics Changes - The commerce media market is projected to grow to $100 billion over the next five years, accounting for over 25% of digital media spend by 2026 [10] - The company is navigating cost pressures from international tariffs and broader retail inflation, creating uncertainty in the industry [12] Company Strategy and Development Direction - The company is pivoting towards growth opportunities in commerce media solutions, leveraging its owned and operated marketplaces [5][6] - A strategic partnership with Rebuy Engine aims to enhance revenue opportunities and expand market share within the Shopify ecosystem [6][10] - The company anticipates a stabilization of its owned and operated business while focusing on the growth of commerce media solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to year-over-year consolidated revenue growth and positive adjusted EBITDA in the latter half of 2025 [9] - The company is optimistic about the potential of the commerce media marketplace, viewing it as a significant growth opportunity [14] - Management acknowledged the challenges posed by economic uncertainty but believes new commerce partners will offset potential declines in consumer spending [47] Other Important Information - The company ended Q1 2025 with $6.1 million in cash and cash equivalents and reduced total debt to $25.6 million [21][22] - The partnership with Rebuy is expected to provide significant upside, with initial clients already live on the platform [67] Q&A Session Summary Question: Can you share more about the Rebuy Engine partnership and its expected financial contributions? - The partnership is seen as a major milestone, providing access to a large sales channel in Shopify, with initial integrations already live [25][26] Question: What are the key contributors to accelerating CMS revenue growth back to triple digits? - The focus is on acquiring new commerce partners and leveraging technology investments made over the past two years [30] Question: What efforts are being made to expand supply channels for the owned and operated segment? - The company is exploring new nontraditional platforms and working with demand partners to improve media buying strategies [32][35] Question: How does the economic environment affect commerce media signings? - There is an acceleration in the pipeline during economic uncertainty, with faster movement through sales phases [51][52] Question: What is the outlook for the enterprise pipeline in commerce media? - The pipeline has doubled in size, with larger opportunities compared to the previous year, reflecting strong brand building and results [72]

[Fluent, Inc. First Quarter 2025 Financial Results](index=1&type=section&id=Fluent%2C%20Inc.%20First%20Quarter%202025%20Financial%20Results) [CEO Commentary and Strategic Pivot](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Pivot) Fluent's Q1 2025 saw strong Commerce Media Solutions growth and a new partnership, despite attrition in its Owned and Operated business - The Commerce Media Solutions business has been the primary growth driver, achieving nearly **triple-digit year-over-year growth** since its launch in early 2023[3](index=3&type=chunk) - Announced a strategic partnership with Rebuy Engine to launch "Rebuy Ads powered by Fluent," targeting Shopify merchants with post-purchase advertising[3](index=3&type=chunk)[6](index=6&type=chunk) - The Owned and Operated business experienced attrition due to a reduction in media supply, particularly from social media, with active expansion of supply channels underway to mitigate this[3](index=3&type=chunk) - Due to the shifting revenue mix, consolidated revenue for Q2 2025 is expected to be similar to Q1 2025[3](index=3&type=chunk) [First Quarter Financial Highlights](index=1&type=section&id=First%20Quarter%20Financial%20Highlights) Q1 2025 revenue decreased 16% to $55.2 million, driven by Owned and Operated declines offset by 99% growth in Commerce Media Solutions Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$55.2M** | **$66.0M** | **-16%** | | Commerce Media Solutions Revenue | $12.7M | $6.4M | +99% | | Owned and Operated Revenue | $31.1M | $44.7M | -30% | | Gross Profit (excl. D&A) | $11.4M | $18.6M | -39% | | Net Loss | $8.3M | $6.3M | +32% | | Net Loss Per Share | $0.39 | $0.45 | N/A | | Adjusted EBITDA | ($3.1M) | $0.7M | -$3.7M | - Commerce Media Solutions revenue grew to represent **23% of consolidated revenue** in Q1 2025, up from 10% in Q1 2024[6](index=6&type=chunk) - The annual revenue run rate for Commerce Media Solutions now exceeds **$65 million**, an 8% increase quarter-over-quarter[6](index=6&type=chunk) [Business Outlook & Goals](index=1&type=section&id=Business%20Outlook%20%26%20Goals) Fluent targets full-year 2025 revenue growth and positive adjusted EBITDA, leveraging its data for competitive advantage - Goal to drive revenue growth, improve net loss compared to 2024, and achieve positive adjusted EBITDA for the full-year 2025[7](index=7&type=chunk) - Financial improvements are expected to materialize in the second half of 2025 as Commerce Media Solutions becomes a larger portion of consolidated revenue[8](index=8&type=chunk) - Strategy includes leveraging its 14-year leadership in customer acquisition and its database of first-party user data as a competitive differentiator[8](index=8&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Unaudited Q1 2025 financial statements show decreased assets, a wider net loss, and improved operating cash flow [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet reflects changes in assets, liabilities, and equity as of March 31, 2025 Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,828 | $9,439 | | Total current assets | $51,228 | $65,955 | | **Total assets** | **$77,494** | **$93,617** | | Total current liabilities | $51,659 | $64,682 | | **Total liabilities** | **$55,459** | **$68,662** | | **Total shareholders' equity** | **$22,035** | **$24,955** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The statement of operations details revenue, expenses, and net loss for the first quarter of 2025 Statement of Operations Summary (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $55,210 | $65,983 | | Total costs and expenses | $62,286 | $69,936 | | Loss from operations | ($7,076) | ($3,953) | | **Net loss** | **($8,269)** | **($6,276)** | | **Basic and diluted loss per share** | **($0.39)** | **($0.45)** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement summarizes cash movements from operating, investing, and financing activities Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2,112 | ($132) | | Net cash used in investing activities | ($1,570) | ($1,796) | | Net cash used in financing activities | ($5,153) | ($2,218) | | **Net decrease in cash** | **($4,611)** | **($4,146)** | | Cash at end of period | $6,083 | $11,658 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) Fluent uses non-GAAP measures like Media Margin, Adjusted EBITDA, and Adjusted Net Income to evaluate performance - The company uses Media Margin, Adjusted EBITDA, and Adjusted Net Income as supplemental performance measures[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - Media margin is a primary metric to measure the financial return on media costs, while Adjusted EBITDA is used to evaluate operating performance and for compensation decisions[31](index=31&type=chunk)[32](index=32&type=chunk) Reconciliation of Adjusted EBITDA from Net Loss (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(8,269) | $(6,276) | | Adjustments (Taxes, Interest, D&A, etc.) | $5,185 | $6,941 | | **Adjusted EBITDA** | **$(3,084)** | **$665** | Reconciliation of Adjusted Net Loss from Net Loss (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(8,269) | $(6,276) | | Adjustments (Share-based comp, etc.) | $1,611 | $2,047 | | **Adjusted net loss** | **$(6,658)** | **$(4,229)** | Reconciliation of Media Margin (Consolidated, in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $55,210 | $65,983 | | Gross profit (excl. D&A) | $11,435 | $18,635 | | **Media margin** | **$13,731** | **$22,139** | | Media margin % of revenue | 24.9% | 33.6% | Reconciliation of Media Margin (Commerce Media Solutions, in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $12,660 | $6,376 | | Gross profit (excl. D&A) | $2,813 | $1,823 | | **Media margin** | **$3,111** | **$1,998** | | Media margin % of revenue | 24.6% | 31.3% | [Other Information](index=3&type=section&id=Other%20Information) This section includes conference call details, a corporate overview, and a Safe Harbor statement on forward-looking risks - A conference call to discuss Q1 2025 results was scheduled for May 15, 2025, at 4:30 PM ET[9](index=9&type=chunk) - The Safe Harbor statement lists significant risk factors, including compliance with credit agreement covenants, industry competition, reliance on the gaming industry, and potential changes in online marketing spend by clients[11](index=11&type=chunk)[12](index=12&type=chunk)

Core Insights - Fluent, Inc. reported strong year-over-year growth in its Commerce Media Solutions business, achieving nearly triple-digit growth since its launch in early 2023 [2][4] - The company experienced a decrease in overall revenue, primarily due to attrition in its Owned and Operated business, but anticipates stable revenue in the second quarter of 2025 [2][5] - A strategic partnership with Rebuy Engine was announced to enhance advertising capabilities for Shopify merchants [2][4] Financial Performance - Total revenue for Q1 2025 was $55.2 million, a decrease of 16% from $66.0 million in Q1 2024 [5] - Commerce Media Solutions revenue grew 99% to $12.7 million, representing 23% of consolidated revenue, compared to $6.4 million or 10% in Q1 2024 [4][5] - Owned and Operated revenue decreased 30% to $31.1 million from $44.7 million in Q1 2024 [5] Profitability Metrics - The net loss for Q1 2025 was $8.3 million, or $0.39 per share, compared to a net loss of $6.3 million, or $0.45 per share, in Q1 2024 [5][18] - Gross profit margin for Commerce Media Solutions was 22% in Q1 2025, compared to 21% for the consolidated business [4][5] - Adjusted EBITDA for Q1 2025 was negative $3.1 million, a decrease of $3.7 million compared to Q1 2024 [5][30] Business Outlook - The company aims to establish its Commerce Media Solutions business as a leader in performance marketing and drive revenue growth in the second half of 2025 [10] - Fluent plans to leverage its extensive first-party data to differentiate itself in the commerce media space [10] - The company expects to continue meaningful growth in its Commerce Media Solutions business through 2025 [2][10]

Group 1 - Fluent, Inc. will report its financial results for the First Quarter 2025 after the close of U.S. financial markets on May 15, 2025 [1] - A conference call to discuss the results will be held at 4:30 pm ET on the same day [1] - The conference call can be accessed by phone after registering online or via audio, and will also be webcast on Fluent's Investor Relations Page [2] Group 2 - Fluent, Inc. is a commerce media solutions provider that connects top-tier brands with highly engaged consumers [3] - The company leverages exclusive ad inventory, robust first-party data, and proprietary machine learning to unlock additional revenue streams for partners [3] - Founded in 2010, Fluent uses its expertise in performance marketing to drive monetization and increase engagement across the customer journey [3]

Core Viewpoint - FLINT Corp. reported a significant improvement in Adjusted EBITDAS, achieving $5.1 million, which is a 61% increase compared to the previous year, despite a 6.1% decline in revenues [1][4][7]. Financial Performance - Revenue for Q1 2025 was $137.9 million, down from $146.9 million in Q1 2024, reflecting a decrease of $9.0 million or 6.1% [6][7]. - Gross profit increased to $14.4 million, up 10.7% from $13.0 million in the same quarter last year, with a gross profit margin of 10.4%, compared to 8.9% in Q1 2024 [6][9]. - Adjusted EBITDAS reached $5.1 million, a 60.5% increase from $3.2 million in Q1 2024, with an Adjusted EBITDAS margin of 3.7%, up from 2.2% [6][11]. - SG&A expenses decreased to $9.4 million, down 6.9% from $10.1 million in Q1 2024, maintaining a consistent SG&A margin of 6.8% [6][10]. Liquidity and Capital Resources - As of March 31, 2025, the company's liquidity, including cash and available credit facilities, was $89.1 million, an increase from $77.0 million a year earlier [7][14]. - The company has an asset-based revolving credit facility allowing for maximum borrowings of up to $50.0 million, maturing on April 14, 2027 [13]. Operational Insights - The CEO highlighted the company's commitment to quality execution and scaling the business, noting improved operating results despite decreased revenues [3]. - New contract awards and renewals totaled approximately $78.0 million for Q1 2025, with 74% of the work expected to be completed within the year [7].

Core Insights - Fluent, Inc. and Rebuy Engine have formed a strategic partnership to launch Rebuy Ads powered by Fluent, aimed at enhancing customer engagement and generating additional revenue for merchants at no cost [1][3]. Group 1: Partnership Overview - The partnership combines Fluent's AI-driven advertiser marketplace with Rebuy Engine's integration within the Shopify ecosystem, targeting over 12,000 active merchants [2][4]. - Rebuy Ads is designed to be revenue-positive for merchants, providing a unique opportunity that compensates them for adoption rather than charging fees [3][5]. Group 2: Market Impact - Rebuy Engine generates over $1 billion in new revenue annually for its merchants, indicating significant market potential for the new product [2]. - The collaboration is expected to drive rapid adoption and engagement within the Rebuy Engine merchant community and the broader Shopify platform [3][5]. Group 3: Company Profiles - Rebuy Engine specializes in personalized shopping experiences for Shopify stores, focusing on increasing conversions and customer retention through intelligent upselling and cross-selling [6]. - Fluent, Inc. connects brands with engaged consumers using first-party data and machine learning to enhance monetization and customer acquisition [7].

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Fluent (FLNT) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.Fluent is one of 271 companies in the Business Services group. T ...

Core Insights - Fluent, Inc. has released an enhanced Fluent Identity Graph aimed at improving personalization and optimizing results for advertisers, partners, and consumers across its commerce media solutions [1] - The identity graph is a significant differentiator for Fluent in a competitive market, leveraging 14 years of customer acquisition experience and a vast first-party database of customer insights [2] Partnership and Data Integration - Fluent has partnered with Experian to enhance its identity graph by integrating Experian's online and offline identity data with Fluent's 200M+ first-party profiles, providing a more comprehensive view of U.S. consumers [3] - This partnership aims to improve targeting accuracy, ad relevance, and revenue per transaction through a privacy-safe approach [3] Technology and Performance Strategy - The integration of Experian's identity data allows Fluent to deliver smarter, personalized post-purchase offers using advanced algorithms and machine learning [4] - Fluent's AI ranks and serves relevant post-transaction offers based on consumer behavior, purchase intent, and conversion signals, enhancing personalization and driving better performance for partners [4] Market Position and Future Growth - The Fluent Identity Graph builds on over 14 years of experience in fostering consumer relationships and advertiser outcomes, positioning the company to better understand and convert high-intent audiences [5] - The release is part of Fluent's broader investment in AI-powered innovation, aimed at unlocking greater value for partners and driving long-term growth in the evolving commerce media category [5]