Financial Performance - Inuvo, Inc. announced preliminary revenue for Q4 2024, details to be provided in the press release[5] - The report is filed under Item 2.02 of the Securities Exchange Act of 1934, indicating the financial condition and results of operations[6] - The press release regarding Q4 2024 preliminary revenue is included as Exhibit 99.1[9]

(Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K For the fiscal year ended December 31, 2024 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 Registrant's telephone number, including area code (501) 205-8508 Securities register ...

Core Insights - Inuvo, Inc. reported a record-breaking fourth quarter in 2024 with a revenue of $26.2 million, representing a 26% year-over-year growth, contributing to a full-year revenue increase of 13% to $83.8 million [2][3][6] Financial Performance - Q4 2024 net income was $141 thousand, a significant improvement from a net loss of $2.4 million in Q4 2023 [6][10] - Adjusted EBITDA for Q4 2024 was $1.2 million, compared to a loss of $1.2 million in the same quarter last year [6][11] - Full-year net loss decreased by 45% to $5.8 million from a loss of $10.4 million in 2023 [6][10] Revenue and Cost Analysis - Cost of revenue for Q4 2024 was $4.4 million, up from $2.6 million in Q4 2023, driven by higher revenue from Platform clients [4] - Gross profit for Q4 2024 was $21.8 million, a 20% increase from $18.2 million in Q4 2023, with gross profit margins of approximately 83.1% [5][6] Operational Highlights - Inuvo made significant technological advancements in 2024, particularly with the IntentKey Self-Serve Platform, enhancing advertising capabilities [2] - The company secured a Master Services Agreement with a major global retailer and signed 33 new agencies/brands during the year [6] Liquidity and Capital Resources - As of December 31, 2024, Inuvo had $2.5 million in cash and cash equivalents, an unused working capital facility of $10 million, and no debt [12]

Core Viewpoint - Inuvo, Inc. will host a conference call on February 27, 2025, to discuss its financial results and provide a business update for the fourth quarter and year-end 2024 [1]. Group 1: Conference Call Details - The conference call is scheduled for Thursday, February 27, 2025, at 4:15 PM Eastern Standard Time [2]. - The toll-free dial-in number for the call is 1-800-717-1738, and the international dial-in number is 1-646-307-1865 [2]. - A telephone replay will be available until March 13, 2025, with specific numbers provided for domestic and international access [2]. Group 2: Company Overview - Inuvo, Inc. is a market leader in Artificial Intelligence for advertising, with its proprietary IntentKey AI solution designed to understand consumer interests rather than demographics [3].

Core Insights - Inuvo, Inc. has launched the IntentKey Platform, an AI-driven solution for audience modeling that addresses modern advertising challenges such as privacy regulations and signal loss [1][2][4] - The advertising technology market is valued at over $200 billion and is expected to grow, providing Inuvo with opportunities to capture market share with its unique AI technology [2][4] Company Overview - Inuvo, Inc. is a leader in AI for advertising, with its proprietary IntentKey AI technology designed to understand consumer interests without relying on personal data [8] - The company emphasizes ethical design and privacy compliance in its advertising solutions [4][8] Product Features - The IntentKey Platform offers real-time audience insights, dynamic modeling, and flexible activation options for marketers [3][5] - Key features include instant audience model creation, real-time updates every five minutes, and enhanced audience insights such as demographics and sentiment analysis [5][6] Market Positioning - The platform is positioned to outperform traditional behavioral targeting solutions, providing better advertising performance in a cookie-less environment [2][4] - Inuvo's approach allows marketers to adapt to the changing landscape of advertising while maintaining compliance with privacy regulations [3][4] Use Cases and Success Stories - James & James, a premium furniture brand, improved media efficiency and audience precision using the IntentKey Platform [6] - Emerald Ebikes demonstrated the effectiveness of the platform by driving sales without additional targeting data [6]

Core Viewpoint - Inuvo, Inc. is projecting a record revenue of approximately $26 million for Q4 2024, representing a 26% year-over-year increase from $20.8 million in Q4 2023, driven by its generative AI advertising solutions [2][3]. Financial Performance - The projected revenue for Q4 2024 is expected to be $26 million, marking a 26% increase compared to the previous year's $20.8 million [2]. - This growth would establish a new record as the highest quarterly revenue in the company's history [2]. Management Commentary - CEO Richard Howe expressed confidence in achieving a double-digit revenue increase and near breakeven adjusted EBITDA for Q4 2024, reflecting optimism shared during the third quarter conference call [3]. - The company plans to provide further details about its strong fourth quarter and 2025 plans during an earnings conference call scheduled for February 27, 2025 [3]. Technology and Innovation - Inuvo's IntentKey® is highlighted as the first large-language generative AI capable of identifying and targeting audiences without relying on consumer data, tracking, or cookies, thus outperforming competitors [3]. - This technology empowers marketers through audience discovery and targeting, available as both managed and self-service options [3]. Company Overview - Inuvo, Inc. is recognized as a market leader in artificial intelligence tailored for advertising, with its proprietary IntentKey AI solution designed to understand consumer interests rather than their identities [5].

Core Viewpoint - Inuvo, Inc. is projecting a record revenue of approximately $26 million for Q4 2024, representing a 26% year-over-year increase from $20.8 million in Q4 2023, marking the highest quarterly revenue in the company's history [2]. Financial Performance - The anticipated revenue growth for Q4 2024 is expected to set a new record for the company [2]. - The CEO of Inuvo, Richard Howe, indicated that the company had anticipated a double-digit increase in revenue for the fourth quarter and a near breakeven adjusted EBITDA [3]. Product and Technology - Inuvo's IntentKey® is highlighted as the first large-language generative AI that can identify and target audiences without relying on consumer data, tracking, or cookies, outperforming competitors [3]. - The technology is designed to empower marketers through audience discovery and targeting, available as both a managed service and self-service [3]. Upcoming Events - Inuvo plans to provide more details about its strong fourth quarter and its plans for 2025 during an earnings conference call scheduled for February 27, 2025 [3].

Core Viewpoint - Inuvo, Inc. has introduced zip code-level audience insights and targeting capabilities within its IntentKey technology, enabling advertisers to execute highly targeted campaigns without relying on personal consumer data [1][3][8] Group 1: Technology and Innovation - IntentKey technology utilizes Inuvo's proprietary AI to analyze consumer behavior across over 40,000 U.S. zip codes, providing insights into consumer interests at a granular level [2][5] - The technology focuses on understanding the reasons behind consumer interest rather than identifying who the consumers are, offering a future-proof approach to precision marketing [5][6] - The enhanced targeting capability is immediately available to all IntentKey clients, reinforcing Inuvo's position as a leader in AI-driven, privacy-compliant advertising solutions [8] Group 2: Benefits for Advertisers - The new capabilities allow advertisers to connect with their ideal audiences more precisely, optimizing local market strategies and executing tailored campaigns for various business types [3][7] - Key applications include dynamic audience models that capture consumer intent signals, media matching at the zip code level, and real-time adaptation to changing consumer needs and market trends [7] - This innovation addresses challenges posed by the deprecation of cookies and other identity-based targeting mechanisms, providing a privacy-compliant solution for advertisers [3][5]

Core Insights - Inuvo, Inc. will participate in the iAccess Alpha Virtual Best Ideas Winter Conference 2024 on December 10th and 11th, 2024 [1] - CEO Richard Howe is scheduled to present on December 10th at 12:30 p.m. EST and will be available for one-on-one meetings with qualified investors on December 11th [2] - The iAccess Alpha conference format includes company presentations on the first day and one-on-one meetings with management on the second day [3] Company Overview - Inuvo, Inc. is a leader in advertising technology powered by artificial intelligence, specifically through its proprietary IntentKey AI solution, which identifies consumer interests rather than demographics [4]

Financial Data and Key Metrics Changes - For Q3 2024, the company reported revenue of $22.4 million, a 9% decrease year-over-year from $24.6 million in Q3 2023, but a 23% increase sequentially from the previous quarter [27] - Adjusted EBITDA improved by $310,000 sequentially, resulting in a loss of $357,000 for Q3 2024, with expectations of near breakeven in Q4 [8][38] - The company had no outstanding debt at the end of September 2024 and reported cash and cash equivalents of $2.6 million [8][38] Business Line Data and Key Metrics Changes - Revenue from platform clients constituted 83% of total revenue in Q3 2024, down from 87% in the same quarter last year, indicating a slight shift towards agencies and brands [29] - Revenue from agency and brand clients grew by 15% year-over-year, with expectations for continued growth in this segment [17][29] Market Data and Key Metrics Changes - The advertising ecosystem market is approximately $6 billion annually, with a focus on improving return on advertising spend for platform clients [10] - The company is actively working with over 100 small and medium-sized agencies, having signed 4 new agencies and 2 new direct clients in Q3 2024 [16] Company Strategy and Development Direction - The company is executing a multifaceted strategy that includes expanding markets through both self-service and full-service offerings [41] - Plans to launch enhanced capabilities within the self-serve AI product in early Q1 2025, aimed at improving efficiency and scalability [21][25] Management's Comments on Operating Environment and Future Outlook - Management expects double-digit year-over-year growth in Q4 2024, supported by strong early November revenue averaging $290,000 per day [7][40] - The company is focused on building relationships with clients to accelerate growth and overcome resistance to change associated with new technology [51][52] Other Important Information - The company has reduced cash burn by $227,000 in the first nine months of 2024 compared to the same period last year, with expectations for further improvements [38] - A one-time noncash impairment charge of $600,000 was recorded in Q3 2024 related to a referral and support services agreement [33] Q&A Session Summary Question: Update on large technology company as a new mega brand customer - Management confirmed progress with the large technology company, which is one of their largest platform clients, and mentioned ongoing work with other large technology companies [46][48] Question: Performance communication from retailer and car manufacturer - Management indicated that discussions about future market share typically occur in late Q4 or early Q1, focusing currently on maximizing returns for the holiday season [49] Question: What will it take for clients to increase usage of technology? - Management highlighted the importance of building relationships and addressing the fear of change as key factors for increasing client usage of their technology [51][52] Question: M&A landscape in the ad tech world - Management noted ongoing discussions about potential acquisitions and the possibility of being an acquisition target due to their unique technology and patents [60][61] Question: Discussion on reverse stock split - Management confirmed that the board routinely discusses the possibility of a reverse stock split, emphasizing the need for comprehensive analysis before making a decision [63] Question: Effectiveness of marketing and advertising over the last 12 months - Management discussed improvements in sales professionalism and the effectiveness of attending industry conferences for networking and relationship building [67][70]