Summary of Inuvo Inc. Conference Call Company Overview - **Company Name**: Inuvo Inc. - **Ticker Symbol**: INUV - **Industry**: Digital Advertising and AI Technology Core Points and Arguments - **Unique Technology**: Inuvo claims to be the only company globally that has developed, commercialized, and patented large language generative AI specifically for audience discovery and targeting online [4][6][26] - **Market Evolution**: The company identifies a significant shift in ad targeting methods due to consumer data privacy legislation, making traditional targeting methods obsolete [5][26] - **Market Size**: The total addressable market includes a $100 billion search marketing segment and a $200 billion programmatic marketing segment, indicating substantial growth potential [7][27] - **Performance Metrics**: Inuvo reported trailing twelve-month revenues of approximately $93.5 million, with a compounded growth rate of 6.5% over the last five years and a 57% growth rate in Q1 2025 [20][23] - **Client Success Story**: A case study with James and James, a furniture manufacturer, showed a near 100% return on ad spend after implementing Inuvo's technology, highlighting the effectiveness of their solutions [21][22] Additional Important Insights - **AI Development Timeline**: Inuvo has been developing its AI technology for about seven years, predating the rise of popular AI models like ChatGPT [12][19] - **Competitive Edge**: The company emphasizes its ability to target consumers without violating privacy, which is a significant advantage over competitors reliant on traditional data methods [9][26] - **Challenges in Market Penetration**: The company faces challenges due to buyer aversion to change and competition from established players in the industry [26][29] - **Future Growth Expectations**: Inuvo anticipates continued growth, with guidance for a 25% year-over-year increase in Q2 2025 [23][24] - **Acquisition Interest**: Inuvo has received acquisition inquiries but believes its current valuation does not reflect its inherent value [28][29] Conclusion Inuvo Inc. is positioned uniquely within the digital advertising space, leveraging proprietary AI technology to address evolving market needs. The company is experiencing significant growth and has demonstrated its value proposition through successful client implementations, despite facing challenges in market adoption and competition.

Company Participation - Inuvo, Inc. will participate in the iAccess Alpha Virtual Best Ideas Summer Investment Conference on June 24-25, 2025 [1] - Richard Howe, the CEO of Inuvo, is scheduled to present on June 24 at 9:00 a.m. Eastern Time, followed by one-on-one meetings with investors on June 25 [1] Conference Details - The iAccess Alpha conference features webcast presentations on Day 1 and one-on-one meetings between company management and pre-qualified investors on Day 2 [2] - For more information about the conference or to schedule a meeting with Inuvo, interested parties can visit the iAccess Alpha website [2] Company Overview - Inuvo, Inc. is a market leader in Artificial Intelligence for advertising, with its proprietary IntentKey AI solution that identifies consumer interests rather than demographics [3] - The IntentKey AI technology is patented and unique in its capability to understand the reasons behind consumer interest in products, services, or brands [3]

Group 1 - Inuvo, Inc. reaffirms its guidance for second quarter revenue growth of not less than 25% year-over-year [1] - The company completed a 1-for-10 reverse stock split to enhance marketability and liquidity of its stock [2] - CEO Richard Howe stated that the reverse stock split aims to make the stock more accessible to institutional investors [3] Group 2 - Inuvo is a leader in Artificial Intelligence for advertising, with its proprietary IntentKey® AI solution designed to understand consumer interests [3]

Financial Data and Key Metrics Changes - Inuvo achieved a record-breaking revenue of $26.7 million for Q1 2025, representing a 57% year-over-year growth compared to $17 million in Q1 2024 [6][16] - Trailing twelve-month revenue reached $93.5 million, positioning the company to potentially exceed $100 million in annual revenue this year [6][25] - Adjusted EBITDA was nearly breakeven at a loss of $22,000, an improvement from a loss of $1 million in the same quarter last year [22] - Gross profit increased by 41% year-over-year to $21.1 million, although gross margin declined to 79% from 87.7% due to a new campaign with a platform client [18][19] Business Line Data and Key Metrics Changes - Platform revenue was approximately $23.7 million, reflecting a 61% year-over-year growth, while agencies and brands revenue was about $3 million, driven by new client signings [17][8] - Campaign volume within the platform increased by 100% year-over-year, indicating strong adoption by media buyers [9] - The client base for agencies and brands grew by 23% year-over-year, with 20 new clients added in 2025 [11] Market Data and Key Metrics Changes - The market served by Inuvo's platform technologies is estimated at $10 billion annually, undergoing significant changes that the company is positioned to capitalize on [10] - Self-serve revenues have been steadily increasing month over month, with a notable 430% sequential increase in visitors to the corporate and self-serve website [12][13] Company Strategy and Development Direction - The financial strategy for 2025 focuses on double-digit revenue growth in both platform and agencies and brands while maintaining product margins [7] - The product strategy aims to accelerate platform growth through automation and enhance agencies and brands growth via AI performance improvements [8] - The company plans to maintain a workforce of no more than 90 employees, focusing on hiring engineers and data science professionals [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strength in Q2 2025, projecting at least 25% year-over-year revenue growth [25] - There is a strong demand for services from platform clients, with no significant decline noted in demand from the automotive sector despite tariff concerns [29][30] - The company is currently experiencing a backlog of demand for campaigns, indicating robust market interest [56] Other Important Information - Inuvo plans to propose a 10-for-1 reverse stock split to optimize its share structure, which is unrelated to any capital raise activities [26] - The company raised $1.2 million through stock sales at an average price of $0.73 per share [24] Q&A Session Summary Question: Has there been any meaningful changes from your new anchor customer since April? - Management noted no decline in demand from the largest automotive client, with an increase observed instead [29] Question: Has there been any changes in your customer base's demand for advertising since April? - Management confirmed that there have been no significant changes in demand from the customer base [31] Question: What is the break-even point for Inuvo? - Management indicated that the break-even point is slightly above $25 million per quarter, estimating around $26 to $27 million [37] Question: Should we expect typical seasonality to be maintained in 2025? - Management suggested that Q1 results indicate a departure from typical seasonality, with strong performance expected throughout the year [42] Question: Can you provide feedback on the enhanced IntentKey self-service platform? - Management reported positive feedback and sees the opportunity for significant revenue growth from this platform in the coming years [44]

Financial Data and Key Metrics Changes - Inuvo achieved a record revenue of $26.7 million in Q1 2025, representing a 57% year-over-year growth from $17 million in Q1 2024 [6][16] - Trailing twelve-month revenue reached $93.5 million, positioning the company to surpass the $100 million mark within the year [6][25] - Adjusted EBITDA was nearly breakeven at a loss of $22,000, an improvement from a loss of $1 million in the same quarter last year [22] - Net loss decreased to $1.3 million from $2.1 million year-over-year [22] Business Line Data and Key Metrics Changes - Platform revenue was approximately $23.7 million, reflecting a 61% year-over-year growth [8][17] - Agencies and brands revenue was around $3 million, driven by new client signings and a 31% year-over-year growth [11][17] - Campaign volume within the platform increased by 100% year-over-year, indicating strong adoption by media buyers [9] Market Data and Key Metrics Changes - The market served by Inuvo's platform technologies is estimated at $10 billion annually, undergoing significant changes that the company is positioned to capitalize on [10] - Client base for agencies and brands grew by 23% year-over-year, with approximately 20 new clients added in 2025 [11] Company Strategy and Development Direction - Inuvo's financial strategy for 2025 focuses on double-digit revenue growth in both platform and agencies and brands while maintaining product margins [7] - The product strategy emphasizes accelerating platform growth through automation and enhancing agencies and brands with AI performance improvements [8] - The company plans to maintain a workforce of no more than 90 employees, focusing on hiring engineers and data science professionals [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strength in Q2 2025, projecting at least 25% year-over-year revenue growth [25] - The company has not observed a decline in demand from its largest automotive client, contrary to broader market trends [28] - There is a strong pipeline of new business opportunities, and management remains confident about the overall demand for advertising services [32][70] Other Important Information - The company plans to propose a 10-for-1 reverse stock split to optimize its share structure and reduce volatility [26] - Cash and cash equivalents stood at $2.6 million with no outstanding debt as of March 31, 2025 [23] Q&A Session Summary Question: Has there been any meaningful changes from your new anchor customer since April? - Management reported no decline in demand from the largest automotive client, with an increase observed instead [28] Question: Has there been any changes in your customer base's demand for advertising since April? - Management indicated that there have been no significant changes in demand from the customer base [32] Question: What is the expected breakeven point for Inuvo? - Management suggested that breakeven would be slightly above $25 million per quarter, estimating around $26 to $27 million [38] Question: Will the new platform campaign improve gross margins throughout the year? - Management expects the campaign to scale and improve margins over time, despite initial lower margins [42] Question: What is the initial feedback on the enhanced IntentKey self-service platform? - Feedback has been positive, with expectations for significant revenue potential in the coming years [45]

Financial Data and Key Metrics Changes - The company achieved a record revenue of $26.7 million in Q1 2025, representing a 57% year-over-year growth from $17 million in Q1 2024 [5][14][15] - Trailing twelve-month revenue reached $93.5 million, positioning the company to surpass the $100 million mark within the year [5][23] - Adjusted EBITDA was nearly breakeven at a loss of $22,000, an improvement from a loss of $1 million in the same quarter last year [20] - Net loss decreased to $1.3 million from $2.1 million year-over-year [20] Business Line Data and Key Metrics Changes - Platform revenue was approximately $23.7 million, showing significant growth, while agencies and brands revenue was around $3 million, driven by new client signings [15][16] - The platform segment grew by 61% year-over-year, with campaign volume doubling [7][10] - Agencies and brands experienced a 31% year-over-year growth, with a 23% increase in client base [10][11] Market Data and Key Metrics Changes - The market served by the platform technologies is estimated at $10 billion annually, with strong demand and a healthy pipeline of new business opportunities [9] - The company reported a 430% sequential increase in visitors to its corporate and self-serve website following the launch of the enhanced self-serve platform [11][12] Company Strategy and Development Direction - The financial strategy for 2025 focuses on double-digit revenue growth in both platform and agencies and brands while maintaining product margins [6][7] - The product strategy emphasizes automation for platform growth and AI performance enhancements for agencies and brands [7] - The company plans to maintain a workforce of no more than 90 employees, focusing on hiring engineers and data science professionals [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength, projecting Q2 2025 revenue growth of no less than 25% year-over-year [23] - There is a positive sentiment regarding the demand from the automotive sector, with no observed decline despite tariff concerns [26][29] - The company is optimistic about the self-serve platform's potential, estimating it could generate tens of millions in revenue in the coming years [45] Other Important Information - The company plans to propose a 10-for-1 reverse stock split to optimize its share structure and reduce volatility [24] - Cash and cash equivalents stood at $2.6 million with no outstanding debt as of March 31, 2025 [20][21] Q&A Session Summary Question: Has there been any meaningful changes from your new anchor customer since April? - Management noted no decline in demand from the largest automotive client, with an increase observed instead [26][27] Question: Has there been any changes in your customer base's demand for advertising since April? - Management confirmed that there have been no significant changes in demand from the customer base [28][29] Question: What is the expected breakeven point for the company? - Management indicated that the breakeven point is slightly above $25 million per quarter, estimating around $26 to $27 million [36][37] Question: Will the gross margin improve as the new campaign scales? - Management expects the gross margin to improve as the campaign scales, despite initial lower margins [41] Question: What is the sentiment from agencies and CMOs regarding the broader market? - Management reported that there is some apprehension regarding tariffs, but no significant changes in advertising demand have been observed yet [70][71]

Revenue Performance - Inuvo's net revenue for the three months ended March 31, 2025, was $26,708,032, representing a 56.9% increase compared to $17,023,777 in the same period of 2024[93] - Revenue from Platform customers increased by 61%, while revenue from Agencies & Brands customers grew by 31%[94] Cost and Expenses - The cost of revenue rose to $5,620,941, a 167.8% increase from $2,099,042 in the same quarter of 2024, resulting in a gross margin decrease to 79.0% from 87.7%[95] - Operating expenses totaled $22,856,878, reflecting a 34.3% increase from $17,016,013 in the same period last year, driven by a 33.7% rise in marketing costs[96] - General and administrative costs surged by 153.4% to $1,744,563, influenced by a prior adjustment related to credit losses[98] Net Loss and Financial Position - The company reported a net loss of $1,259,821 for the three months ended March 31, 2025, compared to a net loss of $2,111,658 in the same period of 2024[109] - Cash and cash equivalents stood at approximately $2.6 million as of March 31, 2025, with a net working capital deficit of about $2.2 million[106] - Net cash used in operating activities was $366,912 for the three months ended March 31, 2025, an improvement from $1,355,592 in the same period of 2024[108] - The company generated $921,389 in net cash from financing activities during the three months ended March 31, 2025, primarily from the ATM Agreement[113] - Inuvo's accumulated deficit reached $174.5 million as of March 31, 2025, indicating ongoing financial challenges despite revenue growth[106]

Financial Performance - Record Q1 2025 revenue of $26.7 million, representing a 57% increase from $17.0 million in Q1 2024[3] - Gross profit for Q1 2025 was $21.1 million, a 41% increase compared to $14.9 million in Q1 2024, with a gross profit margin of 79%[5] - Net loss for Q1 2025 was $1.3 million, or $0.01 per share, compared to a net loss of $2.1 million, or $0.02 per share, in Q1 2024[11] - Adjusted EBITDA loss was approximately $22 thousand in Q1 2025, significantly improved from a loss of $1.0 million in Q1 2024[11] - The company reported a gross profit margin decrease from 87.7% in Q1 2024 to 79% in Q1 2025 due to changes in product mix[5] Operating Expenses - Operating expenses totaled $22.9 million in Q1 2025, up from $17 million in the same period last year, driven by increased marketing costs and compensation[6] Revenue Drivers - Revenue growth was driven by a 61% increase in Platforms and a 31% increase in Agencies & Brands[3] New Initiatives - The company launched the enhanced IntentKey Self-Serve Platform, adding 20 new clients and introducing zip code-level audience insights[9] Cash Position - Cash and cash equivalents as of March 31, 2025, were $2.6 million, with an unused working capital facility of $10.0 million and no debt[12] Other Income - Other income for Q1 2025 was approximately $541 thousand, including a $610 thousand payment from the IRS related to an employee retention credit[10]

Core Insights - Inuvo, Inc. reported a record net revenue of $26.7 million for Q1 2025, representing a 57% increase year-over-year from $17.0 million in Q1 2024, marking the highest revenue in the company's history [3][9] - The company achieved a gross profit of $21.1 million, a 41% increase from $14.9 million in the same quarter last year, although the gross profit margin decreased to 79% from 87.7% due to changes in product mix [5][9] - Inuvo's net loss for Q1 2025 was $1.3 million, or $0.01 per share, an improvement from a net loss of $2.1 million, or $0.02 per share, in Q1 2024 [10][9] Financial Highlights - Net revenue for Q1 2025 was $26.7 million, up from $17.0 million in Q1 2024, driven by a 61% increase in Platforms and a 31% increase in Agencies & Brands [3][9] - Cost of revenue increased to $5.6 million from $2.1 million in the same period last year, attributed to higher Platform revenue and the introduction of a new product [4] - Operating expenses rose to $22.9 million from $17 million year-over-year, with increases in marketing costs, compensation, and general & administrative expenses [6][7] Operational Highlights - The company launched the enhanced IntentKey Self-Serve Platform, which is an advanced AI agent for audience discovery and targeting [9] - Inuvo added 20 new IntentKey clients and now has 15 self-service clients, indicating growth in its client base [9] - The company introduced IntentKey zip code-level audience insights and targeting, enhancing its service offerings [9] Liquidity and Capital Resources - As of March 31, 2025, Inuvo had $2.6 million in cash and cash equivalents, an unused working capital facility of $10 million, and no debt [12] - The total stockholders' equity was $13.4 million as of March 31, 2025, compared to $13.5 million at the end of 2024 [21]

Company Overview - Inuvo, Inc. is a leading provider of artificial intelligence AdTech solutions, specializing in AI built for advertising [3] - The company's proprietary technology, IntentKey AI, identifies consumer interests in products, services, or brands rather than focusing on consumer identities [3] Financial Results Announcement - Inuvo will host a conference call on May 9, 2025, at 8:30 AM Eastern Time to discuss its financial results for the first quarter ended March 31, 2025 [1] - The conference call will provide a business update alongside the financial results [1] Conference Call Details - The toll-free dial-in number for the conference call is 1-800-717-1738, with an international dial-in number of 1-646-307-1865 [2] - A telephone replay will be available until May 23, 2025, with specific access numbers provided for domestic and international callers [2]