Core Insights - Inuvo, Inc. has launched Ranger, an advanced quality assurance and compliance feature within its Campsight system, aimed at enhancing the accuracy and relevance of ad creatives [1][6]. Product Features - Ranger verifies that every ad creative is accurate, relevant, and consistent with the landing page, ensuring higher-quality engagement and trust in the advertising ecosystem [2]. - The tool addresses the complexity of dynamic and fragmented ads across various networks by utilizing direct network integrations and AI-based analysis [5]. - Ranger reviews video and multimedia ads, automatically transcribing and analyzing visual and audio content to ensure consistency in claims and messages [5]. Strategic Importance - The launch follows a recent webinar emphasizing the importance of regulatory compliance in search-based advertising, showcasing Inuvo's leadership in promoting transparency and responsible advertising practices [3]. - By integrating Ranger within Campsight, Inuvo aims to connect content, campaigns, and compliance efforts, allowing advertisers to reach the right users with accurate messages [6]. - Ranger is currently deployed internally and will be made available to other advertisers, agencies, and ad-buying platforms, enhancing automated creative verification in marketing workflows [6]. Commitment to Advertising Standards - Ranger strengthens Inuvo's commitment to responsible monetization, transparent advertising, and improving user experience [7]. - The company’s IntentKey® AI solution is designed to identify consumer interests rather than demographics, positioning Inuvo as a market leader in AI for advertising [8].

Core Insights - Inuvo, Inc. has announced significant enhancements to its IntentKey® Platform, which will transform how marketers create and activate audiences based on consumer intent [1][2]. Group 1: Platform Enhancements - The updated platform introduces IntentPath, a new visualization feature that predicts audience movement from awareness to engagement to conversion, utilizing a proprietary large language model to map consumer buying motivations [2][3]. - The platform now provides next-day predictive audience and sentiment trends, allowing marketers to anticipate shifts in consumer behavior before they occur [3][4]. - A redesigned interface includes improved model editing and one-click activation, enabling marketers to send audiences directly to their Demand-Side Platforms (DSPs) [4]. Group 2: Competitive Advantage - IntentKey's concept-based approach allows marketers to identify high-intent users up to a day earlier than traditional systems, revealing the motivations behind consumer behavior and unlocking access to audiences that competitors may not reach [4]. - Enhanced demographic insights, powered by U.S. Census data and Inuvo's proprietary modeling, provide a privacy-safe view of likely age, income, and household composition patterns [3][4]. Group 3: Company Overview - Inuvo, Inc. is a leader in Artificial Intelligence for advertising, with its IntentKey® AI solution being a patented technology that focuses on understanding consumer interest rather than demographic profiles [5].

Core Insights - Inuvo, Inc (INUV) reported a quarterly loss of $0.12 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, marking an earnings surprise of -33.33% [1] - The company's revenues for the quarter ended September 2025 were $22.57 million, missing the Zacks Consensus Estimate by 14.5%, and showing a slight increase from $22.37 million a year ago [2] - Inuvo shares have declined approximately 53.9% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Financial Performance - Over the last four quarters, Inuvo has only surpassed consensus EPS estimates once [2] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $28.81 million, while for the current fiscal year, it is -$0.16 on revenues of $104.59 million [7] Market Outlook - The company's earnings outlook will be crucial for its stock performance, with management's commentary on the earnings call expected to influence investor sentiment [3][4] - The Zacks Industry Rank places the Internet - Services sector in the top 39% of over 250 Zacks industries, indicating a favorable environment for stocks in this category [8]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenue of $22.6 million, roughly flat year-over-year, while revenue for the first nine months of the year reached $71.9 million, reflecting a strong 25% year-over-year growth [5][23][27] - The gross profit for Q3 was $16.6 million, down from $19.8 million in the same quarter last year, leading to a gross margin decline to 73.4% from 88.4% [24][26] - The net loss narrowed to $1.7 million, or $0.12 per share, compared to a loss of $2 million, or $0.15 per share a year ago [26] Business Line Data and Key Metrics Changes - Platform revenue was $18.7 million, down from $18.8 million last year, primarily due to a deliberate slowdown in scaling for the largest platform client [23] - Revenue from agencies and brands totaled approximately $3.9 million for Q3, a 7% increase over last year [23] - The company onboarded 23 new clients in Q3, increasing the total number of self-service clients to 44, which are expected to drive future growth [24][28] Market Data and Key Metrics Changes - The company experienced a 5% sequential decline in platforms but a 29% sequential growth within agencies and brands [6] - The top five clients are projected to grow over 65% year-over-year by the end of calendar 2025 [8][27] Company Strategy and Development Direction - The company is shifting its focus upstream, targeting larger brand-direct deals while continuing to scale its high-margin self-serve Intent Key product [27] - A new AI-driven compliance and quality system called Ranger has been launched to enhance advertising integrity and quality [18][19] - The company is actively pursuing multi-million dollar contracts with government organizations and has settled a class action lawsuit, expecting a significant payout in Q1 2026 [6][7][28] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about achieving revenue goals for 2025, emphasizing that Q3's performance was not due to reduced demand but rather preparation for future growth [7][27] - The advertising environment is undergoing significant changes, with a focus on quality and compliance becoming a strategic advantage [17][19] Other Important Information - The company has made significant technological advancements, including a redesigned audience discovery portal and enhanced predictive media mix modeling [20][21] - The self-service business continues to gain momentum, with enhancements making it easier for clients to utilize the company's AI [22] Q&A Session Summary Question: Do the 23 new clients onboarded in Q3 immediately start generating revenue? - New clients typically start generating revenue quickly but at small amounts as they test the system [30] Question: What feedback is being received from self-service clients? - Feedback has led to a complete overhaul of the self-serve portal to improve usability and efficiency [34] Question: Will sales and marketing expenses return to previous levels in Q4? - Sales and marketing expenses are expected to increase in relation to the ramping platform revenue [35][37] Question: Can you elaborate on the revenue goals for 2025? - The company aims for a 25% growth rate through the year, targeting a revenue goal of $100 million [70]

Revenue Performance - Net revenue for Q3 2025 was $22.6 million, a 1% increase from $22.4 million in Q3 2024[4] - Year-to-date revenue for the first nine months of 2025 increased by 25% to $71.9 million from $57.6 million in the same period of 2024[7] Profitability - Gross profit for Q3 2025 decreased by 15% to $16.6 million, resulting in a gross margin of 73.4%, down from 88.4% in Q3 2024[5] - The net loss for Q3 2025 narrowed to $1.7 million, or $0.12 per share, compared to a net loss of $2 million, or $0.15 per share, in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was a loss of $0.7 million, compared to a loss of $0.4 million in the same period last year[9] Operating Expenses - Operating expenses in Q3 2025 were $18.2 million, a decline of 16% from $21.7 million in the prior-year period[7] - Marketing costs decreased to $13.4 million in Q3 2025 from $17.0 million in Q3 2024, reflecting lower revenue from the largest Platform client[8] Client Acquisition - The company onboarded 23 new clients in Q3 2025, contributing to a total of 65 new clients in the first nine months of 2025[7] Financial Position - As of September 30, 2025, the company had $3.4 million in cash and cash equivalents and access to a $10.0 million working capital facility[9] Future Outlook - The company expects to drive sustainable long-term scalable growth despite Q3 performance being less than anticipated due to compliance adjustments[3]

Revenue Performance - Inuvo's net revenue for the three months ended September 30, 2025, increased by approximately $199,000 (0.9%) year-over-year, while revenue for the nine-month period increased by approximately $14.3 million (24.9%) compared to the same period in 2024[105]. - Platform clients accounted for 82.8% of overall revenue in Q3 2025, down from 83.8% in Q3 2024, while their contribution for the nine-month period was 86.2%, up from 83.6% in 2024[105]. - The company expects revenue to increase as it complies with new requirements from a Platform client that affected revenue in Q3 2025[115]. Cost and Expenses - The cost of revenue for the three months ended September 30, 2025, increased by 131.3% to $6,002,423, and for the nine months, it increased by 126.3% to $17,199,909 compared to the same periods in 2024[103][106]. - Operating expenses for the three months ended September 30, 2025, decreased by 16.0% to $18,237,852, while for the nine months, they increased by 8.1% to $60,233,075 compared to 2024[107]. - Marketing costs for the three months ended September 30, 2025, decreased by 21.4% to $13,375,136, while for the nine months, they increased by 5.8% to $45,026,458 compared to the same period in 2024[107]. Financial Position - Inuvo reported a net loss of $4,501,648 for the nine months ended September 30, 2025, compared to a net loss of $5,903,142 for the same period in 2024[118][119]. - As of September 30, 2025, Inuvo had approximately $3.4 million in cash and cash equivalents, with a net working capital deficit of $4.9 million[115]. - Inuvo's accumulated deficit reached $177.7 million as of September 30, 2025[115]. Cash Flow Activities - Net cash used in investing activities was $1,240,992 for the nine months ended September 30, 2025, primarily due to capitalized internal development costs[120]. - Net cash provided by financing activities was $3,968,636 during the nine months ended September 30, 2025, mainly from the utilization of the Financing Agreement[121]. - Net cash used in financing activities during the nine months ended September 30, 2024, was $343,526, primarily due to taxes paid on restricted stock unit grants exercised[121]. Other Financial Information - As of September 30, 2025, there are no off-balance sheet arrangements that materially affect the company's financial condition[122]. - The company does not have any market risk disclosures applicable as it is classified as a smaller reporting company[123]. Stock Activity - The company utilized its ATM Agreement to sell 165,641 shares of common stock for gross proceeds of $1,184,740 during 2025[112].

Core Insights - Inuvo, Inc. reported financial results for Q3 and the first nine months of 2025, highlighting a 25% year-over-year revenue increase for the nine-month period, but a less than expected growth in Q3 due to scaled-back advertising efforts to comply with client requirements [4][8]. Q3 2025 Highlights Compared to Q3 2024 - Net revenue for Q3 2025 was $22.6 million, a 1% increase from $22.4 million in Q3 2024, driven by a 7% growth in Agencies & Brands clients [5][8]. - Gross profit decreased by 15% to $16.6 million, with a gross margin of 73.4%, down from 88.4% in the same quarter last year [6][8]. - Operating expenses declined by 16% to $18.2 million from $21.7 million in the prior-year period, reflecting lower marketing spend [6][8]. - The net loss for Q3 narrowed to $1.7 million, or $0.12 per share, compared to a net loss of $2.0 million, or $0.15 per share, in Q3 2024 [10][8]. Nine-Month 2025 Highlights Compared to Nine-Month 2024 - Net revenue for the first nine months of 2025 increased by 25% to $71.9 million from $57.6 million in the same period last year [8]. - Gross profit for the nine-month period rose by 10% to $54.8 million from $50 million [8]. - Adjusted EBITDA improved by 15% to a loss of $1.7 million from a loss of $2 million [8]. - The net loss for the nine-month period narrowed to $4.5 million, or $0.31 per share, from $5.9 million, or $0.42 per share, in the prior year [8]. Client Acquisition and Marketing - In Q3 2025, Inuvo onboarded 23 new clients, contributing to a total of 65 new clients in the first nine months of the year [8]. - Marketing costs were reduced to $13.4 million in Q3 2025 from $17.0 million in Q3 2024, attributed to lower revenue from the largest Platform client [9][8]. Financial Position - As of September 30, 2025, Inuvo had $3.4 million in cash and cash equivalents and access to a $10 million working capital facility, of which $3.4 million was drawn [10][8]. - Total assets decreased to $29.9 million from $32.2 million at the end of 2024, with total liabilities also reflecting a decrease [19][18].

Core Viewpoint - Inuvo, Inc. will host a conference call on November 6, 2025, to discuss its Q3 financial results and provide a business update [1]. Group 1: Conference Call Details - The conference call is scheduled for November 6, 2025, at 4:15 PM Eastern Time [2]. - Toll-free and international dial-in numbers are provided for participants [2]. - A telephone replay will be available until November 20, 2025, with specific access instructions [2]. Group 2: Company Overview - Inuvo, Inc. is a leader in Artificial Intelligence for advertising, with its proprietary IntentKey AI solution [3]. - The IntentKey AI technology identifies consumer interests based on their motivations rather than demographics [3]. - For more information, Inuvo's website is available at www.inuvo.com [3].

Inuvo Inc. Conference Call Summary Company Overview - Inuvo Inc. operates in the ad tech industry, leveraging a proprietary large language model for audience discovery and media activation [1][2] - The company has been in operation for 10 years and is publicly traded on NYSE under the ticker symbol INUV [17] Core Business Model - Inuvo generates revenue through a platform business that services major digital supply chains and agencies, as well as direct marketing to clients [2][3] - The technology is protected by 19 patents and 6 pending patents, emphasizing its proprietary nature [3] Industry Landscape - The U.S. ad market is heavily reliant on programmatic media buying, with 64% of ad dollars funneled through these platforms [4] - The ad tech industry is valued at $220 billion and is experiencing growth, particularly in segments like connected TV and retail media networks [4] - Legacy ad systems are struggling due to privacy concerns and the decline of consumer tracking methods like cookies [4][5] Technological Advantages - Inuvo's technology is designed to operate without personal data, focusing instead on collective interests and intent pathways [9][15] - The IntentKey AI platform analyzes billions of real-time signals to create predictive audience models that refresh every five minutes [9][10] - The technology allows for precise targeting and audience discovery, enabling marketers to reach potential customers before competitors [10][15] Performance Metrics - Inuvo claims a 60% performance advantage over competitive platforms, with a high client retention rate [17] - The company has reported a five-year quarterly compound annual growth rate (CAGR) of 24% through Q2 of the current year [17] - The company is approaching the $100 million revenue mark and has access to $10 million in capital [17][18] Future Growth Strategies - Inuvo plans to expand its client base by adding self-serve clients who can execute their own media buys [18] - The company aims to work more directly with brands, moving upstream in the advertising ecosystem [19] - Targeting high-spending sectors like sports gambling is identified as a significant opportunity for revenue growth [20][21] Key Challenges - The ad tech industry is facing a challenging environment, particularly for agencies, which are being washed out [19] - The company is navigating a complex market landscape but believes its privacy-first approach positions it favorably [19] Conclusion - Inuvo Inc. is positioned as a disruptive force in the ad tech industry, leveraging advanced AI technology to address current market challenges and capitalize on growth opportunities [1][10]

Core Insights - Inuvo, a leading provider of artificial intelligence AdTech solutions, will present at the LD Micro Main Event XIX on October 21st at 11am PT [1][4] - The LD Micro Main Event XIX will take place from October 19th to 21st at the Hotel del Coronado in San Diego, California, featuring around 120 companies [4][5] Company Overview - Inuvo, Inc. (NYSE American: INUV) specializes in AI technology for advertising, with its proprietary IntentKey® AI solution designed to understand consumer interests rather than demographics [6] Event Details - The LD Micro Main Event XIX will include registration, keynote speakers, company presentations, and one-on-one investor meetings, culminating in a closing reception [4][5] - The event aims to connect small companies with investors, emphasizing the importance of small-cap investing [2][4]