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]

Core Insights - Inuvo, Inc. will participate in the Ladenburg Thalmann Innovation EXPO25 on May 21, 2025, in New York, showcasing its AI AdTech solutions [1][3] - CEO Richard Howe is scheduled to present at the conference and management will hold one-on-one meetings with investors [2] - The EXPO25 will feature around 50 technology companies utilizing AI, providing a platform for presentations and networking [3] Company Overview - Inuvo, Inc. is a leader in Artificial Intelligence for advertising, with its proprietary IntentKey AI technology that identifies consumer interests rather than demographics [4]

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]