Inuvo (NYSEAM:INUV) FY Conference September 08, 2025 11:30 AM ET Company ParticipantsBarry Lowenthal - PresidentWallace Ruiz - CFOConference Call ParticipantsKyle Meury - Corporate Access AnalystNone - AnalystKyle MeuryGood morning, everyone, and thank you for joining the HC Wainwright 27th Annual Global Investment Conference. My name is Kyle Murie, and I'm an analyst on the Corporate Access team. We're very excited you all could join us for a productive day of one-on-one meetings, corporate presentations, ...

Core Viewpoint - Inuvo, Inc. will participate in the H.C. Wainwright 27th Annual Global Investment Conference from September 8-10, 2025, showcasing its AI AdTech solutions [1]. Company Participation - Management is scheduled to present on September 8, 2025, at 11:30 AM Eastern Time, with a live webcast available [2]. - Management will engage in one-on-one meetings with qualified investors throughout the conference [3]. Company Overview - Inuvo, Inc. is a leader in Artificial Intelligence for advertising, with its proprietary IntentKey AI solution that identifies consumer interests rather than demographics [4].

Core Insights - Inuvo reported a narrower GAAP loss per share of $0.10, better than the expected loss of $0.13, while revenue reached $22.7 million, below the estimate of $23.73 million but up 25.0% year-over-year [1][3] Financial Performance - GAAP revenue for Q2 2025 was $22.7 million, a 25.0% increase from $18.2 million in Q2 2024, but below the estimate of $23.73 million [3][7] - GAAP loss per share improved to ($0.10) from ($0.12) in Q2 2024 [3] - Gross profit was $17.1 million, an 11.8% increase from $15.3 million in Q2 2024, but gross margin declined to 75.4% from 84.0% year-over-year due to a shift in product mix [3][7] Business Model and Strategy - Inuvo operates in the digital advertising sector, focusing on AI-driven solutions for audience targeting, with its flagship product being the IntentKey platform [4] - Recent priorities include expanding IntentKey adoption and scaling the Platform and Agencies & Brands segments, with a focus on innovation and new client acquisitions [5][6] Customer Dynamics - Revenue concentration remains a risk, with a small number of major partners contributing significantly to revenue, although 20 new agency and brand clients were added year-to-date [9][10] - The largest automotive and retail clients increased spending, reinforcing revenue stability but also increasing risk if any major relationship changes [9] Future Outlook - Management did not provide explicit financial guidance but aims for top-line expansion and margin improvement, targeting a five-year compound annual revenue growth rate of 24% [12] - Key watchpoints include the ability to cross the $26–27 million quarterly GAAP net revenue threshold, ongoing gross margin impacts, customer concentration, and the pace of self-serve IntentKey client acquisitions [13]

Company Performance - Inuvo, Inc (INUV) reported a quarterly loss of $0.1 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.11, representing an earnings surprise of +9.09% [1] - The company posted revenues of $22.67 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 6.4%, compared to year-ago revenues of $18.21 million [2] - Over the last four quarters, Inuvo has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Inuvo shares have declined approximately 18.2% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The current Zacks Rank for Inuvo is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $27.96 million, and for the current fiscal year, it is -$0.05 on revenues of $107.7 million [7] - The trend of estimate revisions for Inuvo was unfavorable prior to the earnings release, which may impact future stock movements [5][6] Industry Context - The Internet - Services industry, to which Inuvo belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Revenue for the quarter was $22.7 million, representing a 25% year-over-year increase, driven by sustained demand from platform clients [21] - Gross profit increased to $17.1 million, a 12% year-over-year rise, but gross margin declined to 75.4% from 84% due to scaling of new platform campaigns [23] - Operating expenses totaled $19.1 million, up 12% year-over-year, primarily due to increased marketing costs [24] - Net loss narrowed to $1.5 million or $0.10 per share compared to a loss of $1.7 million or $0.12 per share in the previous year [27] Business Line Data and Key Metrics Changes - The self-serve adoption accelerated with 18 new deals set up in the quarter, achieving 300% quarter-over-quarter growth [7] - Managed services pipeline remains healthy with four new managed service deals signed in the quarter [8] - Revenue from agencies and brands totaled approximately $3 million for the second quarter, with 22 new clients onboarded, 18 of whom adopted the self-serve solution [22] Market Data and Key Metrics Changes - Connected television (CTV) is gaining interest, with more clients including Inuvo's solutions in their RFPs, making it the highest services margin channel [10] - The marketplace is shifting towards higher quality advertising standards, benefiting Inuvo due to its compliance-oriented infrastructure [14] Company Strategy and Development Direction - Inuvo is focused on breaking through $100 million in sales this year, with a compounded annual growth rate of approximately 24% [6] - The company is investing in compliance, scalable technology, and predictive analytics to meet evolving client needs [30] - New integrations with demand-side campaign platform providers are being pursued to facilitate international expansion and product innovation [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $100 million annual target, citing improved technology and client understanding of marketing challenges [33] - The company anticipates that margins will improve as seasonality effects diminish [44] - There is a notable shift in the market towards privacy-first, high-integrity digital advertising, positioning Inuvo favorably [30] Other Important Information - The company completed a one-for-ten reverse stock split to improve share marketability and attract institutional investors [27] - Operational enhancements were made to intent key reporting dashboards, receiving positive feedback from clients [11] Q&A Session Summary Question: Confidence in hitting the $100 million annual target - Management feels confident about reaching the $100 million target, noting improved technology and client understanding [33] Question: Evolution of new customer campaigns - New customers typically start with smaller spends and increase as they see performance gains; self-serve clients are also showing a 300% increase in revenue [35][38] Question: Transition from self-serve to managed services - While it hasn't happened yet, management expects some larger self-serve customers may eventually transition to managed services [39] Question: Operating loss despite revenue growth - The decline in gross margins and increased marketing costs contributed to the lower operating profit despite revenue growth [40][42] Question: Opportunities to improve selling process and pricing - Management is continuously exploring ways to optimize the selling process and pricing strategies [47] Question: Clarification on new client numbers - All 18 self-serve deals and four managed service deals mentioned were new clients [54] Question: Partnerships for expansion - Management is working on new demand-side platform integrations to expand opportunities [56] Question: Impact of antitrust suits on the ecosystem - It is difficult to predict the impact of evolving AI technologies and antitrust suits on the ecosystem at this time [62]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Inuvo reported strong double-digit revenue growth for the second quarter and first half of 2025, alongside improved profitability with narrowed Adjusted EBITDA and net losses per share Q2 2025 vs Q2 2024 Performance Summary | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $22.7 | $18.2 | +25% | | Gross Profit | $17.1 | $15.3 | +12% | | Adjusted EBITDA | ($0.6) | ($0.7) | +14% Improvement | | Net Loss | ($1.5) | ($1.7) | Narrowed | | Net Loss per Share | ($0.10) | ($0.12) | Narrowed | Six-Month 2025 vs Six-Month 2024 Performance Summary | Metric | Six-Month 2025 ($ millions) | Six-Month 2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $49.4 | $35.2 | +40% | | Gross Profit | $38.2 | $30.2 | +26% | | Adjusted EBITDA | ($0.7) | ($1.7) | +59% Improvement | | Net Loss | ($2.8) | ($3.9) | Narrowed | | Net Loss per Share | ($0.19) | ($0.28) | Narrowed | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Richard Howe highlighted robust first-half revenue growth and a sustained five-year growth rate, acknowledging expected seasonal declines while emphasizing consistent multi-year performance - Revenue growth for the first half of 2025 was **40%**[2](index=2&type=chunk) - The company has maintained a five-year sustained growth rate of **24%** through Q2 2025[2](index=2&type=chunk) - As guided, sequential year-over-year growth declined from **57%** to **24%** due to seasonality[2](index=2&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) In Q2 2025, Inuvo's revenue increased 25% to $22.7 million, with a narrower net loss, while gross margin decreased due to product mix shift and operating expenses rose [Q2 2025 Performance](index=1&type=section&id=Q2%202025%20Performance) Net revenue for Q2 2025 grew 25% to $22.7 million, with gross margin declining to 75.4% due to product mix, resulting in a narrower net loss of $1.5 million Q2 2025 vs Q2 2024 Financial Metrics | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | | Net Revenue | $22.7 | $18.2 | | Gross Profit | $17.1 | $15.3 | | Gross Margin | 75.4% | 84.0% | | Operating Expenses | $19.1 | $17.0 | | Net Loss | ($1.5) | ($1.7) | | Net Loss per Share | ($0.10) | ($0.12) | - The lower gross margin was primarily attributed to a change in product mix[4](index=4&type=chunk) - The company recognized **$525,000** in Other Income from an IRS employee retention credit[7](index=7&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Inuvo maintained strong liquidity with **$2.1 million** in cash, no debt, and an unused **$10.0 million** credit facility - Cash and cash equivalents stood at **$2.1 million** as of June 30, 2025[11](index=11&type=chunk) - The company has access to an unused **$10.0 million** working capital facility and has no debt[11](index=11&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents detailed unaudited financial tables for the three and six months ended June 30, 2025, including statements of operations, balance sheets, and Adjusted EBITDA reconciliation [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2025, net revenue increased to **$49.4 million**, gross profit rose, and the net loss significantly narrowed to **$2.8 million** despite higher operating expenses Six Months Ended June 30 Performance | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net Revenue | $49,379,365 | $35,232,782 | | Gross Profit | $38,181,879 | $30,227,552 | | Total Operating Expenses | $41,995,223 | $34,018,217 | | Operating Loss | ($3,813,344) | ($3,790,665) | | Net Loss | ($2,761,084) | ($3,858,849) | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$28.7 million**, with total liabilities at **$16.6 million** and stockholders' equity at **$12.1 million** Balance Sheet Summary | Metric | June 30, 2025 ($) | Dec 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalent | $2,135,188 | $2,459,245 | | Total current assets | $12,543,863 | $15,644,821 | | Total assets | $28,689,048 | $32,195,931 | | Total current liabilities | $15,915,287 | $17,885,888 | | Total stockholders' equity | $12,079,639 | $13,474,772 | [Reconciliation of Net Loss to Adjusted EBITDA](index=4&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) The Adjusted EBITDA loss improved for both Q2 2025 and the six-month period, narrowing to **$629,219** and **$651,109** respectively, compared to the prior year Adjusted EBITDA Reconciliation Summary | Period | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | **Three Months Ended June 30** | | | | Net Loss | ($1,501,263) | ($1,747,191) | | Adjusted EBITDA | ($629,219) | ($667,790) | | **Six Months Ended June 30** | | | | Net Loss | ($2,761,084) | ($3,858,849) | | Adjusted EBITDA | ($651,109) | ($1,689,553) | [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Inuvo will host a conference call on August 7, 2025, at 4:15 p.m. ET to discuss Q2 2025 financial results, with a replay available until August 21, 2025 - A conference call is scheduled for Thursday, August 7, 2025, at **4:15 p.m. ET**[13](index=13&type=chunk) - A replay of the call will be accessible until Thursday, August 21, 2025[14](index=14&type=chunk) [Company Overview and Forward-Looking Statements](index=2&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) Inuvo, a market leader in AI for advertising with its IntentKey® solution, includes a standard safe harbor statement regarding forward-looking statements and associated risks - Inuvo is a market leader in AI for advertising, with its proprietary IntentKey® technology that identifies consumer interest[15](index=15&type=chunk) - The press release contains forward-looking statements that are subject to risks and uncertainties detailed in the company's SEC filings, such as the Form 10-K[16](index=16&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________________ to ______________________ Commission file number:001-32442 Inuvo, Inc. (Exact name of registrant as specified in its charter) Nevada 87-0450450 (Sta ...

Management to host conference call at 4:15 PM ET, Thursday, August 7, 2025 LITTLE ROCK, Ark., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today announced its financial results for the second quarter and six-month period ended June 30, 2025. Second Quarter 2025 Highlights Compared to Second Quarter 2024: Six-Month 2025 Highlights Compared to Six-Month 2024: Richard Howe, CEO of Inuvo, commented, "We're pleased to report ...

Core Insights - Inuvo, Inc. will host a conference call on August 7, 2025, to discuss its Q2 financial results and provide a business update [1] - The company specializes in artificial intelligence AdTech solutions, particularly through its proprietary IntentKey AI technology [3] Conference Call Details - The conference call is scheduled for August 7, 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 August 21, 2025, with specific access instructions [2] Company Overview - Inuvo, Inc. is recognized as a market leader in AI for advertising [3] - The IntentKey AI solution is noted for its unique capability to understand consumer interests rather than just their identities [3]

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.