Core Viewpoint - The article emphasizes the importance of value investing and highlights Fluent (FLNT) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][3][6] Company Analysis - Fluent (FLNT) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating it is among the best value stocks available [3] - The company's price-to-book (P/B) ratio is 1.94, which is significantly lower than the industry average of 5.41, suggesting it may be undervalued [4] - Over the past 52 weeks, FLNT's P/B ratio has fluctuated between a high of 2.01 and a low of 0.53, with a median of 1.14 [4] - The price-to-sales (P/S) ratio for FLNT is 0.19, compared to the industry average of 0.48, further indicating potential undervaluation [5] - These valuation metrics suggest that Fluent is likely being undervalued, making it an attractive option for value investors [6]

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth p ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Fluent, Inc.'s unaudited consolidated financial statements for Q1 2024, including a critical going concern disclosure [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Q1 2024 consolidated financial statements show declining assets, increased liabilities, a 15% revenue decrease, and a $6.3 million net loss Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $71,416 | $78,406 | | **Total Assets** | $103,577 | $111,867 | | **Total Current Liabilities** | $73,528 | $49,214 | | **Total Liabilities** | $74,831 | $77,463 | | **Total Shareholders' Equity** | $28,746 | $34,404 | Consolidated Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $65,983 | $77,254 | | **Loss from Operations** | $(3,953) | $(31,153) | | **Net Loss** | $(6,276) | $(31,943) | | **Basic and Diluted Loss Per Share** | $(0.45) | $(2.34) | Consolidated Statement of Cash Flows Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(132) | $4,890 | | **Net cash used in investing activities** | $(1,796) | $(2,384) | | **Net cash used in financing activities** | $(2,218) | $(1,486) | | **Net (decrease) increase in cash and cash equivalents** | $(4,146) | $1,020 | | **Cash and cash equivalents at end of period** | $11,658 | $26,567 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes disclose substantial doubt about the company's going concern ability, detail a reverse stock split, credit facility refinancing, and subsequent events - Management has concluded there is **substantial doubt about the Company's ability to continue as a going concern** due to declining operating results, projected non-compliance with financial covenants, and potential inability to draw on its revolver to fund operations[26](index=26&type=chunk)[27](index=27&type=chunk)[30](index=30&type=chunk) - On April 11, 2024, the Company effected a **1-for-6 reverse stock split**, retroactively restating all historical share and per-share amounts[33](index=33&type=chunk)[93](index=93&type=chunk) - Subsequent to quarter end, on April 2, 2024, the Company replaced its Citizens Credit Agreement with a new **SLR Credit Agreement**, comprising a **$20 million term loan** and a **$30 million revolving credit facility**[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - On May 1, 2024, the Company **divested its subsidiary True North Loyalty, LLC**[121](index=121&type=chunk) - On May 13, 2024, the Company raised **$10 million in gross proceeds** through a private placement of pre-funded warrants to certain accredited investors[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses Q1 2024 financial performance, highlighting a 15% revenue decline, narrowed net loss, and elaborates on liquidity challenges and going concern [First Quarter Financial Summary and Trends](index=30&type=section&id=First%20Quarter%20Financial%20Summary%20and%20Trends) Q1 2024 revenue decreased by 15% to $66.0 million, net loss improved, and Adjusted EBITDA increased, facing media supply and economic challenges Q1 2024 vs Q1 2023 Financial Highlights | Metric | Q1 2024 (million) | Q1 2023 (million) | | :--- | :--- | :--- | | **Revenue** | $66.0 | $77.3 | | **Net Loss** | $(6.3) | $(31.9) | | **Gross Profit** | $18.6 | $19.0 | | **Media Margin (Non-GAAP)** | $22.1 | $22.0 | | **Adjusted EBITDA (Non-GAAP)** | $0.7 | $0.4 | - Revenue decline in Q1 2024 was driven by media supply challenges in the company's owned and operated marketplaces, with these challenges continuing into Q2 causing further revenue retraction[147](index=147&type=chunk)[168](index=168&type=chunk) - The business continues to be negatively impacted by slowed economic conditions and compliance measures from the FTC Consent Order, creating a competitive disadvantage[151](index=151&type=chunk)[152](index=152&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Revenue decreased 15% due to marketplace contraction, while operating expenses declined significantly due to the absence of a prior-year goodwill impairment - The significant decrease in Loss Before Income Taxes (from **$31.8 million to $5.4 million**) was primarily due to the non-recurrence of a **$25.7 million goodwill impairment charge** recorded in Q1 2023[178](index=178&type=chunk)[180](index=180&type=chunk) - General and administrative expenses decreased by **16% to $10.4 million**, mainly due to a **$1.4 million decline in litigation and related costs** associated with the settled FTC Consent Order[175](index=175&type=chunk) - The company implemented workforce reductions in both Q1 2024 and Q1 2023, terminating **20 employees** in each period and incurring restructuring costs of **$0.7 million** and **$0.5 million**, respectively[176](index=176&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is under pressure, with cash decreasing by $4.1 million to $11.7 million, leading to substantial doubt about its going concern ability due to projected debt covenant non-compliance - Management has **substantial doubt about the company's ability to continue as a going concern** due to projected inability to comply with debt covenants over the next twelve months[189](index=189&type=chunk)[195](index=195&type=chunk) - Mitigating plans include a **$10 million private placement** completed in May 2024, divesting a business unit, and implementing additional cost reductions to meet budget and cash flow requirements[191](index=191&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - On April 2, 2024, the company entered into a new credit agreement with SLR Credit Solutions for a **$20 million term loan** and a **$30 million revolving facility**, repaying its previous debt[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%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 a **smaller reporting company** and is therefore not required to provide quantitative and qualitative disclosures about market risk[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and Interim CFO, concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - Based on an evaluation as of March 31, 2024, the Chief Executive Officer and Interim Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective**[215](index=215&type=chunk) - No changes occurred in the company's **internal control over financial reporting** during Q1 2024 that materially affected, or are reasonably likely to materially affect, these controls[216](index=216&type=chunk) [PART II - OTHER INFORMATION](index=44&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section updates on the *Daniel Berman v. Freedom Financial Network* class action lawsuit settlement, where the company satisfied its $3.1 million obligation through cash and an interest-bearing note - The Berman class action settlement was finalized on February 23, 2024, with the company satisfying its **$3.1 million obligation** via a **$1.1 million cash payment** and a **$2.0 million interest-bearing note**[220](index=220&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section highlights critical risks, including substantial doubt about the company's going concern ability due to declining performance and potential debt covenant breaches, and the risk of Nasdaq delisting - A significant risk factor is the **substantial doubt about the company's ability to continue as a going concern**, potentially impacting financing, business relationships, and stock price[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) - The company faces the risk of **Nasdaq delisting** if its common stock fails to meet minimum listing requirements, such as the **$1.00 minimum bid price**, harming stock liquidity and access to capital[224](index=224&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period covered by this report - There were **no unregistered sales of equity securities** during the quarter[229](index=229&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section details significant corporate actions after Q1 2024, including a **$10 million private placement** and the new SLR Credit Agreement, which was subsequently amended - On May 13, 2024, the Company raised **$10 million in gross proceeds** via a private placement of pre-funded warrants to purchase up to **2,955,084 shares of common stock**, including from officers and directors[231](index=231&type=chunk) - The new SLR Credit Agreement was amended on May 15, 2024, waiving required prepayments from private placement proceeds, requiring a financial advisor, and modifying covenants and definitions[236](index=236&type=chunk)

Exhibit 99.1 Fluent Announces First Quarter 2024 Financial Results New York, NY – May 15, 2024 – Fluent, Inc. (NASDAQ: FLNT), a leading data-driven performance marketing company, today reported financial results for the first quarter ended March 31, 2024. Mr. Patrick continued, "We continue to invest in our new performance marketplaces while strengthening our owned and operated business in line with the evolving industry landscape. The $10 million equity investment in Fluent from investors including our fou ...

NEW YORK, May 09, 2024 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ:FLNT) announced today that it will report its financial results for the First Quarter 2024 after the close of the U.S. financial markets on May 15, 2024. Fluent will host a conference call at 4:30 pm ET on the same day to discuss the results. The conference call can be accessed by phone after registering online at Fluent Conference Call or via audio at Audio Registration. The call will also be webcast simultaneously on the Fluent website on the ...

NEW YORK, May 09, 2024 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT) announced today that it will report its financial results for the First Quarter 2024 after the close of the U.S. financial markets on May 15, 2024. Fluent will host a conference call at 4:30 pm ET on the same day to discuss the results. The conference call can be accessed by phone after registering online at Fluent Conference Call or via audio at Audio Registration. The call will also be webcast simultaneously on the Fluent website on th ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

NEW YORK, April 10, 2024 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ:FLNT), a leading data-driven performance marketing company, today announced that it will effect a 1-for-6 reverse split of the issued shares of its common stock, effective at 6:00 p.m. Eastern Time on April 11, 2024. The Company's common stock will begin trading on a reverse stock split-adjusted basis at the opening of the market on Friday, April 12, 2024. Following the reverse stock split, the Company's common stock will continue to trade on ...

NEW YORK, April 03, 2024 (GLOBE NEWSWIRE) -- Following an extraordinary year of growth for Fluent's influencer network Infuse, the brand is proudly announcing a strategic partnership with influencer agency THIS Group Inc. This partnership underscores Infuse's commitment to fostering influencer talent and maximizing their potential in the dynamic landscape of influencer marketing. As a Fluent brand, Infuse opens up numerous integrated marketing opportunities for influencers through Fluent's fifteen-year trac ...

Revenue of $72.8 million for Q4 2023 and $298.4 million for FY 2023Net loss of $1.9 million for Q4 2023 and $63.2 million for FY 2023Gross profit (exclusive of depreciation and amortization) of $20.8 million for Q4 2023 and $78.5 million for FY 2023Media margin of $24.1 million for Q4 2023 and $91.3 million for FY 2023Adjusted EBITDA of $2.5 million for Q4 2023 and $6.8 million for FY 2023Adjusted net loss of $0.4 million for Q4 2023 and $7.2 million for FY 2023   NEW YORK, April 02, 2024 (GLOBE NEWSWIRE) - ...