Fluent(FLNT) - 2023 Q4 - Annual Results

Revenue and Profit Performance - Q4 2023 revenue was $72.8 million, a decrease of 14.1$84.7 million in Q4 2022[2] - Full-year 2023 revenue was $298.4 million, a decrease of 17.4$361.1 million in 2022[9] - Q4 2023 gross profit (exclusive of depreciation and amortization) was $20.8 million, an increase of 4.0$78.5 million, a decrease of 16.2% over 2022 and representing 26% of revenue[2] - Q4 2023 media margin was $24.1 million, an increase of 1.7$91.3 million, a decrease of 17.0% over prior year and representing 30.6% of revenue[2] EBITDA and Net Loss - Q4 2023 adjusted EBITDA was $2.5 million, a decrease of$0.2 million over Q4 2022 and representing 3.4% of revenue[9] - Full-year 2023 adjusted EBITDA was $6.8 million, a decrease of$15.9 million over prior year and representing 2.3% of revenue[2] - Q4 2023 net loss was $1.9 million, or$0.02 per share, compared to net loss of $67.5 million, or$0.83 per share, for Q4 2022[9] - Full-year 2023 net loss was $63.2 million, or$0.77 per share, compared to net loss of $123.3 million, or$1.51 per share, for the prior year[2] - Net loss for the year ended December 31, 2023, was $63.2 million, compared to$123.3 million in 2022, showing a significant improvement[18] - Adjusted EBITDA for the year ended December 31, 2023, was $6.8 million, compared to$22.7 million in 2022[19] - Adjusted net loss for the year ended December 31, 2023, was $7.2 million, compared to an adjusted net income of$5.8 million in 2022[32] Goodwill and Impairment - Goodwill impairment for the year ended December 31, 2023, was $55.4 million, compared to$111.1 million in 2022[18] - Goodwill significantly decreased from $55.111 million in 2022 to$1.261 million in 2023, a decline of 97.7%[36] Cash Flow and Financial Position - Net cash provided by operating activities for the year ended December 31, 2023, was $8.1 million, compared to$2.0 million in 2022[18] - Cash and cash equivalents decreased from $25.547 million in 2022 to$15.804 million in 2023, a decline of 38.1%[36] - Accounts receivable decreased from $63.164 million in 2022 to$56.531 million in 2023, a decline of 10.5%[36] - Total current assets decreased from $92.217 million in 2022 to$78.406 million in 2023, a decline of 15.0%[36] - Current portion of long-term debt increased from $5.000 million in 2022 to$30.488 million in 2023, a rise of 509.8%[36] - Total liabilities decreased from $90.014 million in 2022 to$77.463 million in 2023, a decline of 13.9%[36] Strategic Initiatives and Growth Plans - The company plans to expand its media footprint through influencer and syndicated performance marketplaces[22] - The company will focus on sourcing customer traffic that meets internal quality mandates and leveraging its platform to drive consumer insights[22] - The company will continue to invest in growth initiatives with long-term potential and competitive advantage while expanding margins over time[22] - The company is managing growth through international expansion and integration of acquired business units[35] Credit Agreement and Financial Risks - On January 26, 2024, the company entered into a Third Temporary Waiver and Amendment to Credit Agreement, waiving certain covenant breaches until April 30, 2024[23] - The company faces substantial doubt about its ability to continue as a going concern due to potential non-compliance with credit agreement covenants[35] - The company is dependent on third-party publishers, internet search providers, and social media platforms for a significant portion of website traffic[35] - The company is exposed to credit risk from certain clients and pricing pressure, which may impact revenue allocation[35] Non-GAAP Financial Measures - Media margin is defined as a non-GAAP financial measure reflecting variable costs paid for media and related expenses, excluding non-media cost of revenue[28]