Part I [Item 1. Business](index=7&type=section&id=Item%201.%20Business.) Fluent, Inc. provides commerce media solutions through its marketplace and O&O properties, focusing on performance-based customer acquisition and network growth - Fluent operates as a commerce media solutions provider through its Commerce Media Solutions marketplace and Owned & Operated (O&O) digital media properties[30](index=30&type=chunk)[31](index=31&type=chunk) - The company's growth strategy focuses on expanding its Commerce Media Solutions, which launched in Q1 2023 and showed year-over-year growth in every quarter of 2024[58](index=58&type=chunk) - Gaming app advertisers accounted for approximately **35% of consolidated revenue in 2024**, down from 38% in 2023, posing industry-specific risks[93](index=93&type=chunk) - Client concentration risk decreased, with no single client exceeding **10% of revenue in 2024**, compared to 18.1% in 2023[64](index=64&type=chunk) - Regulatory actions, including an FTC settlement, have required business practice changes and adversely affected operational results[68](index=68&type=chunk) - As of December 31, 2024, the company had **210 employees**, a **24% decrease** from the prior year, reflecting strategic shifts and cost management[71](index=71&type=chunk) [Item 1A. Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors.) The company faces significant risks including going concern doubt, competitive and regulatory challenges, reliance on gaming, declining O&O traffic, and data privacy concerns - There is substantial doubt about the company's ability to continue as a going concern due to declining revenue, profitability issues, and non-compliance with debt covenants as of December 31, 2024[78](index=78&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk) - The company's SLR Credit Agreement contains restrictive covenants that limit operational and financial flexibility, with non-compliance potentially leading to an event of default and accelerated debt maturities[83](index=83&type=chunk)[85](index=85&type=chunk) - Fluent is a relatively new entrant in the post-transaction commerce media business, which is dominated by a major player (Rokt), presenting significant competitive challenges[102](index=102&type=chunk) - User traffic to the company's O&O Sites has been declining for five years, primarily due to the Traffic Quality Initiative (TQI) and heightened publisher monitoring standards required by the FTC Consent Order[108](index=108&type=chunk) - Evolving and complex data privacy laws, such as GDPR and CCPA, could have a material adverse effect on the business, requiring significant resources to maintain compliance[155](index=155&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - Ownership is highly concentrated, with executive officers, directors, and 10%+ holders controlling approximately **64.9% of outstanding common stock** as of March 17, 2025, which could limit other stockholders' influence[169](index=169&type=chunk) [Item 1B. Unresolved Staff Comments](index=33&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) The company reports no unresolved staff comments - Not applicable[176](index=176&type=chunk) [Item 1C. Cybersecurity](index=33&type=section&id=Item%201C.%20Cybersecurity.) The company outlines its cybersecurity risk management program, based on NIST standards and overseen by the CTO, General Counsel, and Board's Audit Committee, reporting no material incidents in 2024 - The company's cyber risk management program is based on recognized standards, including NIST, and is reviewed annually by internal and external auditors[178](index=178&type=chunk) - Cybersecurity governance involves the IT, Legal, and Compliance teams, with the CTO and General Counsel reporting to the CEO and providing quarterly updates to the Board's Audit Committee[179](index=179&type=chunk) - The company did not experience a material cybersecurity incident during the year ended December 31, 2024[181](index=181&type=chunk) [Item 2. Properties](index=33&type=section&id=Item%202.%20Properties.) Fluent's headquarters are in a leased New York City office space with a sublease terminating in November 2025, while its AdParlor business operates from a co-working space in Toronto, Canada - The company's headquarters are located at 300 Vesey Street, 9th Floor, New York, NY, under a sublease scheduled to terminate on November 7, 2025[182](index=182&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings.) The company has settled all significant recent legal matters as of December 31, 2023, including an FTC Stipulated Order for a $2.5 million civil penalty and a TCPA class action settlement for $3.1 million - The company settled with the Federal Trade Commission (FTC), agreeing to a **$2.5 million civil penalty** and implementing additional compliance measures, with the FTC Consent Order entered by the Court on August 11, 2023[186](index=186&type=chunk) - Fluent was involved in a TCPA class action (Daniel Berman v. Freedom Financial Network), which was settled, with the company's responsibility being **$3.1 million**, paid via a **$1.1 million cash payment** and a **$2.0 million junior secured promissory note**[187](index=187&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) The company's common stock trades on The Nasdaq Capital Market under "FLNT", with no dividends paid in FY2024 and no plans for future payments due to credit agreement restrictions - The company's common stock is listed on The Nasdaq Capital Market under the symbol "FLNT"[190](index=190&type=chunk) - No dividends were paid in fiscal year 2024, and the company does not plan to pay cash dividends in the foreseeable future, a policy reinforced by the current Credit Agreement's prohibition on dividend payments[192](index=192&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) FY2024 revenue decreased 15% to $254.6M, resulting in a $29.3M net loss and negative Adjusted EBITDA, raising substantial doubt about going concern Key Financial Results (2024 vs. 2023) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $254.6M | $298.4M | -15% | | **Net Loss** | ($29.3M) | ($63.2M) | +54% | | **Adjusted EBITDA** | ($5.6M) | $6.8M | -183% | | **Adjusted Net Loss** | ($18.5M) | ($7.2M) | -157% | | **Adjusted Net Loss per Share** | ($1.14) | ($0.52) | -119% | - Management concluded there is substantial doubt about the company's ability to continue as a going concern due to covenant non-compliance, the need for additional capital, and projections trending below plan[255](index=255&type=chunk)[357](index=357&type=chunk)[363](index=363&type=chunk) - The company has undertaken multiple workforce reductions throughout 2024 and into Q1 2025 to align resources with strategic initiatives and manage costs amid profitability challenges[239](index=239&type=chunk)[258](index=258&type=chunk) - Fluent entered into a new credit agreement with SLR Credit Solutions in April 2024, requiring multiple amendments and waivers since then due to non-compliance with financial covenants, each necessitating additional capital raises[262](index=262&type=chunk)[267](index=267&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk) [Results of Operations](index=44&type=section&id=Results%20of%20Operations) FY2024 revenue fell 15% to $254.6M due to O&O declines, offset by Commerce Media growth, with net loss narrowing due to lower impairment Revenue Breakdown (2024 vs. 2023) | Revenue Stream | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Owned and Operated Marketplaces | $168.4M | $235.7M | -28.6% | | Commerce Media Solutions | $41.3M | $10.7M | +286.0% | | Other Streams | $44.9M | $52.0M | -13.7% | | **Total Revenue** | **$254.6M** | **$298.4M** | **-14.7%** | - Cost of revenue as a percentage of revenue increased from **73.7% in 2023 to 76.1% in 2024**, indicating pressure on margins[234](index=234&type=chunk) - The significant decrease in net loss was primarily driven by a goodwill and intangible asset impairment charge of only **$2.2 million in 2024**, compared to **$55.4 million in 2023**[241](index=241&type=chunk) - Interest expense increased by **48% to $4.7 million**, driven by a higher average interest rate on the new SLR credit facility[242](index=242&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is strained with cash at $10.7M and $14.1M net cash used in operations, requiring capital raises and raising going concern doubt - Net cash used in operating activities was **$14.1 million in 2024**, a significant decline from the **$8.1 million in net cash provided by operating activities in 2023**[250](index=250&type=chunk) - The company's independent registered public accounting firm included an explanatory paragraph in its opinion expressing substantial doubt about the company's ability to continue as a going concern[255](index=255&type=chunk)[334](index=334&type=chunk) - To satisfy conditions of its credit agreement, the company raised capital multiple times, including **$10.0 million in May 2024**, **$2.1 million in August 2024**, **$8.5 million in December 2024**, and an additional **$5.1 million in March 2025**[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk) [Critical Accounting Estimates](index=53&type=section&id=Critical%20Accounting%20Estimates) Management identifies critical accounting estimates including revenue recognition, goodwill impairment, convertible note valuation, share-based compensation, and deferred tax asset valuation - Revenue recognition for performance-based marketing involves estimating variances for unbilled revenue based on internally tracked conversions[281](index=281&type=chunk) - Goodwill is tested for impairment at least annually, with a Q2 2024 triggering event leading to an interim test and a non-cash impairment charge of **$1.3 million** for the All Other reporting unit, writing off its remaining goodwill[287](index=287&type=chunk)[433](index=433&type=chunk) - The company elected the fair value option for its convertible notes issued in August 2024, resulting in an initial day-one unrealized loss of **$2.1 million** and subsequent fair value adjustments being recorded in the statement of operations[456](index=456&type=chunk)[458](index=458&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) As a "smaller reporting company," Fluent, Inc. is not required to provide the information for this item - The Company is not required to provide this information as it qualifies as a "smaller reporting company"[298](index=298&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=59&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) This section presents audited consolidated financial statements, with the auditor's report highlighting a critical audit matter on revenue recognition and going concern doubt - The report of the independent registered public accounting firm includes an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern[334](index=334&type=chunk) - The auditor identified the evaluation of revenue recognition for the Fluent reporting segment as a critical audit matter due to the significant audit effort and subjective judgment required[338](index=338&type=chunk)[340](index=340&type=chunk)[342](index=342&type=chunk) Consolidated Balance Sheet Highlights (December 31) | (In thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $65,955 | $78,406 | | **Goodwill** | $0 | $1,261 | | **Total Assets** | $93,617 | $111,867 | | **Total Current Liabilities** | $64,682 | $49,214 | | **Total Liabilities** | $68,662 | $77,463 | | **Total Shareholders' Equity** | $24,955 | $34,404 | Consolidated Statement of Operations Highlights (Year Ended December 31) | (In thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Revenue** | $254,623 | $298,399 | | **Loss from Operations** | ($23,660) | ($60,130) | | **Goodwill and Intangible Assets Impairment** | $2,241 | $55,405 | | **Net Loss** | ($29,277) | ($63,218) | | **Basic and Diluted Loss Per Share** | ($1.80) | ($4.59) | [Item 9A. Controls and Procedures](index=59&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no auditor attestation required - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[302](index=302&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2024, with an attestation report from the registered public accounting firm not included as permitted for non-accelerated filers[303](index=303&type=chunk)[304](index=304&type=chunk) - No changes were made to internal control over financial reporting during the fourth quarter of 2024 that have materially affected, or are reasonably likely to materially affect, these controls[305](index=305&type=chunk) Part III [Items 10-14. Directors, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=61&type=section&id=Items%2010-14) Information for Items 10-14, covering directors, executive compensation, security ownership, and principal accountant fees, is incorporated by reference from the 2025 Proxy Statement - Information regarding Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, Certain Relationships, and Principal Accounting Fees is incorporated by reference from the forthcoming 2025 Proxy Statement[312](index=312&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk)[316](index=316&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=62&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules.) This section lists all exhibits filed with the Form 10-K, including financial statements, schedules, corporate governance documents, and material contracts - This section provides a comprehensive list of all exhibits filed with or incorporated by reference into the Form 10-K, including multiple amendments to the company's credit agreement and various securities purchase agreements from 2024 and 2025[319](index=319&type=chunk)[320](index=320&type=chunk)

NEW YORK, March 24, 2025 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT), a commerce media solutions company, today announced that it will issue unregistered pre-funded warrants to purchase up to 2,332,104 shares of its common stock at a purchase price of $2.174 in a private offering. The exercisability of the pre-funded warrants will be subject to stockholder approval, which the Company shall seek at its next annual meeting of stockholders. If such stockholder approval is obtained, the pre-funded warrants ...

Core Insights - FLINT Corp. reported record full-year revenues of CAD 710.6 million for 2024, marking an 8.4% increase from 2023, driven by an organic growth strategy and a successful turnaround season [3][7] - The company achieved an Adjusted EBITDAS of CAD 35.5 million, a 7.5% increase from the previous year, alongside a net income of CAD 1.3 million [4][7] Annual Highlights - Revenues for 2024 were CAD 710.6 million, up CAD 54.8 million or 8.4% from 2023, attributed to growth strategies and increased environmental services [7] - Gross profit for the year was CAD 74.9 million, an increase of CAD 7.4 million or 11.0% from 2023, with a gross profit margin of 10.5% compared to 10.3% in 2023 [7] - Selling, general and administrative (SG&A) expenses rose to CAD 41.1 million, a 15.1% increase from 2023, primarily due to higher personnel costs and professional fees [7] - Income from continuing operations was CAD 1.6 million, a significant increase of CAD 14.5 million or 112.6% from 2023, driven by improved gross profit margins [7] Fourth Quarter Highlights - For Q4 2024, revenues were CAD 187.2 million, a 25.0% increase from Q4 2023, reflecting high activity levels [11] - Gross profit for Q4 was CAD 20.2 million, up CAD 3.0 million or 17.7% from the same period in 2023, with a gross profit margin of 10.8% [11] - Adjusted EBITDAS for Q4 was CAD 10.6 million, a 19.0% increase from Q4 2023, with an Adjusted EBITDAS margin of 5.6% [11] - New contract awards and renewals in Q4 totaled approximately CAD 36.4 million [11] Liquidity and Capital Resources - As of December 31, 2024, liquidity, including cash and available credit facilities, was CAD 59.7 million, compared to CAD 56.7 million at the end of 2023 [7] - The company extended the maturity dates of its credit facilities, enhancing its liquidity position [10] Share Capital - As of December 31, 2024, FLINT had 110,001,239 Common Shares and 127,732 Series 1 Preferred Shares, with accrued and unpaid dividends totaling CAD 110.2 million [14][15]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $65.4 million, a decrease of 10% from the prior year [25] - Adjusted EBITDA for Q4 2024 was negative $1.7 million, compared to positive $2.5 million in Q4 2023 [31] - Net loss for Q4 2024 was $3.4 million, compared to a net loss of $1.9 million in the prior year [33] - Full-year 2024 net loss was $29.3 million, an improvement from a net loss of $63.2 million in 2023 [34] Business Line Data and Key Metrics Changes - Commerce Media Solutions revenue increased 139% to $17.2 million in Q4 2024 compared to Q4 2023, and for the full year, it totaled $41.3 million, an increase of 284% over fiscal 2023 [26] - Owned and operated revenue decreased by 23% in Q4 2024 compared to the prior year, and a decrease of 29% for the full year [26] - Media margin in Q4 2024 was $16.5 million, representing 25.3% of revenue, down from 33.1% in the previous year [27] Market Data and Key Metrics Changes - Commerce Media Solutions accounted for 26% of consolidated revenue in Q4 2024, up from 16% in 2023 [19] - The commerce media industry is estimated to be valued at over $50 billion and expected to reach over $100 billion in the next five years [16] Company Strategy and Development Direction - The company is focused on shifting its business mix to commerce media solutions, which is seen as a significant growth opportunity [9] - The strategic plan includes investing in partnerships with major brands and enhancing the company's market position [10] - The company has discontinued the ACA portion of its call solutions business to focus on more strategically compelling areas [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to return to year-over-year double-digit consolidated revenue growth and profit growth in 2025 [15] - The company anticipates strong year-over-year triple-digit revenue growth continuing throughout 2025 [8] - Management acknowledged challenges in Q4 due to increased media costs and a write-down related to ACA revenue [12][14] Other Important Information - The company ended Q4 2024 with $10.7 million in cash and cash equivalents [34] - Total debt as of December 31, 2024, was $31.9 million, an increase from $30.5 million at the end of 2023 [35] - The company has appointed Adrian Stack as the new Chief Product Officer to support its strategic goals [37] Q&A Session Summary Question: What is the pace of growth for Commerce Media Solutions going forward? - Management indicated that they expect to continue growing at a triple-digit rate in 2025, supported by a strong pipeline and competitive advantages [42][44] Question: Is there a portion of the owned and operated revenue that is more durable? - Management stated that while the owned and operated segment is not a growth engine, they aim to stabilize it while focusing on commerce media solutions [51][52] Question: Can you elaborate on the pipeline in the commerce media business? - Management confirmed that the pipeline is significant and growing, with potential transformative partnerships that could accelerate growth [74][76] Question: What is the conversion rate for customers? - Management noted that their consumers are over 25% more valuable compared to competitors, indicating a strong competitive advantage [85] Question: How do you see gross profit dollars from commerce media evolving? - Management expects the commerce media business to increase as a percentage of total revenue, although seasonality may impact Q1 and Q2 [96][98]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $65.4 million, a decrease of 10% from the prior year [25] - Adjusted EBITDA for Q4 2024 was negative $1.7 million compared to positive $2.5 million in Q4 2023 [31] - Net loss for Q4 2024 was $3.4 million, compared to a net loss of $1.9 million in the prior year [33] - Full-year 2024 net loss was $29.3 million, an improvement from a net loss of $63.2 million in 2023 [33] Business Line Data and Key Metrics Changes - Commerce Media Solutions revenue increased 139% to $17.2 million in Q4 2024 compared to Q4 2023, and for the full year, it totaled $41.3 million, an increase of 284% [26] - Owned and operated revenue decreased by 23% in Q4 2024 compared to the prior year, and a decrease of 29% for the full year [26] - Media margin in Q4 2024 was $16.5 million, representing 25.3% of revenue, down from 33.1% in the previous year [27] Market Data and Key Metrics Changes - Commerce Media Solutions accounted for 26% of consolidated revenue in Q4 2024, up from 16% in 2023 [19] - The commerce media industry is estimated to be valued at over $50 billion and expected to reach over $100 billion in the next five years [16] Company Strategy and Development Direction - The company is strategically shifting its business mix towards commerce media solutions, which is seen as a significant growth opportunity [9] - The focus is on building partnerships with major brands and enhancing market credibility [37] - The company plans to continue investing in technology and analytics to support the growth of commerce media solutions [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong year-over-year triple-digit revenue growth in commerce media solutions throughout 2025 [8] - The company anticipates a return to year-over-year double-digit consolidated revenue growth and profit growth in 2025 [15] - Management acknowledged challenges in Q4 due to increased media costs and a write-down related to ACA revenue [12][14] Other Important Information - The company ended Q4 2024 with $10.7 million in cash and cash equivalents [34] - Total debt as of December 31, 2024, was $31.9 million, an increase from $30.5 million at the end of 2023 [35] - The company has appointed Adrian Stack as the new Chief Product Officer to further its goals in commerce media [37] Q&A Session Summary Question: What is the pace of growth for Commerce Media Solutions going forward? - Management indicated that they expect to continue growing at a triple-digit rate in 2025 and beyond, supported by a strong pipeline and competitive advantages [42][44] Question: Is there a portion of the owned and operated revenue that is more durable? - Management views the owned and operated segment as a competitive advantage but does not expect it to be a growth engine, focusing instead on stabilizing it while prioritizing commerce media solutions [51] Question: Can you elaborate on the pipeline in the commerce media business? - Management confirmed that the pipeline is significant and growing, with potential transformative partnerships that could accelerate growth [74][76] Question: What is the conversion rate for post-sale ads compared to the competition? - Management stated that their consumers are over 25% more valuable than those connected through competitors, indicating a strong competitive advantage [85]

Fourth Quarter & Year End 2024 Earnings Results Friday, February 28, 2025 4Q24 Earnings Presentation | Nasdaq: FLNT Nasdaq: FLNT Forward-looking statements Forward-Looking Statements Safe Harbor Non-GAAP Financial Measures This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements speak only as of the date hereof and are based on the Company's current plans and expectations. While we believe ...

Group 1: Earnings Performance - Fluent reported a quarterly loss of $0.18 per share, better than the Zacks Consensus Estimate of a loss of $0.30, compared to break-even earnings per share a year ago, representing an earnings surprise of 40% [1] - The company posted revenues of $65.41 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 5.37%, and down from $72.76 million year-over-year [2] - Over the last four quarters, Fluent has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Fluent shares have increased by approximately 5.2% since the beginning of the year, while the S&P 500 has declined by 0.3% [3] - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the coming quarter is -$0.26 on revenues of $67.96 million, and -$0.52 on revenues of $284.82 million for the current fiscal year [7] Group 3: Industry Context - The Advertising and Marketing industry, to which Fluent belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Fluent's stock performance [5][6]

Exhibit 99.1 Fluent Announces Unaudited Fourth Quarter and Full-Year 2024 Financial Results New York, NY – February 28, 2025 – Fluent, Inc. (NASDAQ: FLNT), a commerce media solutions company, today reported unaudited results for the fourth quarter and fiscal year ended December 31, 2024. These results are preliminary and subject to ongoing audit procedures. Donald Patrick, Fluent's Chief Executive Officer, commented, "In the fourth quarter and full year 2024 we continued to execute on our strategic pivot in ...

Core Insights - Fluent, Inc. reported a strategic pivot towards its Commerce Media Solutions business, resulting in significant revenue growth despite a decline in overall revenue [2][5][6] - The company experienced a write-down of accounts receivables amounting to $2.5 million in Q4 2024, impacting consolidated revenue, gross profit, and net loss [2][6] - The Commerce Media Solutions segment saw a remarkable revenue increase of 139% year-over-year in Q4 2024, reaching $17.2 million, and a full-year growth of 284% to $41.3 million [2][5][12] Fourth Quarter Highlights - Total revenue for Q4 2024 was $65.4 million, a decrease of 10.1% from $72.8 million in Q4 2023 [6] - Commerce Media Solutions revenue constituted 26% of consolidated revenue in Q4 2024, up from 10% in Q4 2023 [5][6] - The net loss for Q4 2024 was $3.4 million, or $0.19 per share, compared to a net loss of $1.9 million, or $0.14 per share, in Q4 2023 [6][12] Full-Year 2024 Highlights - Total revenue for FY 2024 was $254.6 million, down 14.7% from $298.4 million in 2023 [6][12] - The net loss for FY 2024 was $29.3 million, or $1.80 per share, compared to a net loss of $63.2 million, or $4.59 per share, in the prior year [12] - Gross profit for FY 2024 was $60.8 million, representing 24% of revenue, a decrease of 22.6% from the previous year [12] Business Outlook - The company anticipates continued triple-digit year-over-year revenue growth in its Commerce Media Solutions business for 2025 [2][12] - Fluent aims to drive double-digit revenue growth and improve net loss compared to 2024, with expectations for positive adjusted EBITDA in the second half of 2025 [12]

Core Insights - Fluent, Inc. reported a strategic pivot towards its Commerce Media Solutions business, resulting in significant revenue growth despite a decline in overall revenue [2][5][6] - The company experienced a 139% year-over-year increase in Commerce Media Solutions revenue for Q4 2024, reaching $17.2 million, and a 284% increase for the full year 2024, totaling $41.3 million [2][5][12] - The company anticipates continued triple-digit revenue growth in its Commerce Media Solutions business for 2025 [2] Financial Performance - Total revenue for Q4 2024 was $65.4 million, a decrease of 10.1% from $72.8 million in Q4 2023 [6][20] - For the full year 2024, total revenue was $254.6 million, down 14.7% from $298.4 million in 2023 [6][20] - The net loss for Q4 2024 was $3.4 million, or $0.19 per share, compared to a net loss of $1.9 million, or $0.14 per share, in Q4 2023 [6][20] - The full year net loss was $29.3 million, or $1.80 per share, compared to a net loss of $63.2 million, or $4.59 per share, in 2023 [12][20] Profitability Metrics - Gross profit for Q4 2024 was $13.9 million, representing 21% of revenue, down from 29% in Q4 2023 [6][20] - The gross profit margin for Commerce Media Solutions was 39% in Q4 2024, up from 18% in Q4 2023 [5][6] - Adjusted EBITDA for Q4 2024 was negative $1.7 million, a decrease of $4.2 million compared to Q4 2023 [6][20] Strategic Initiatives - The company discontinued its ACA business in Q3 2024, leading to a $2.5 million write-down in accounts receivables, which impacted revenue and profit metrics [2][6] - Fluent aims to establish its Commerce Media Solutions as a leader in performance marketing and drive double-digit revenue growth in 2025 [12][14] Business Outlook - The company expects to continue leveraging its first-party user data and customer acquisition expertise to differentiate itself in the commerce media space [12][14] - Fluent anticipates improvements in net loss and positive adjusted EBITDA in the second half of 2025 as Commerce Media Solutions scales [12][14]