Fluent(FLNT) - 2019 Q1 - Quarterly Report

Financial Performance - Revenue increased by 19% to $66.6 million for Q1 2019, up from $56.0 million in Q1 2018[120] - Net income from continuing operations was $1.0 million, or $0.01 per share, compared to a net loss of $5.6 million, or $0.08 per share, in the previous year[120] - Adjusted net income was $4.1 million, or $0.05 per share, compared to $3.9 million, or $0.05 per share, in the previous year[122] - Income before income taxes from continuing operations was $1.0 million for the three months ended March 31, 2019, compared to a loss of $5.6 million for the same period in 2018[146] - Net income for the three months ended March 31, 2019, was $1.0 million, compared to a net loss of $26.7 million for the same period in 2018[150] Revenue Drivers - The increase in revenue was primarily driven by demand for performance-based marketing services from existing clients and new client additions[136] - The company attracted over 900,000 first-party user registrations daily, reaching 12% of the U.S. digital population monthly[117] - The company has begun leveraging its database into new revenue streams, including programmatic advertising and marketing research[119] Expenses - Cost of revenue increased by 19% to $44.8 million, remaining flat at 67% of revenue[137][138] - Sales and marketing expenses increased by $0.3 million, or 11%, to $3.4 million for the three months ended March 31, 2019, from $3.1 million for the same period in 2018[139] - Product development costs rose by $1.4 million to $2.2 million for the three months ended March 31, 2019, compared to $0.7 million for the same period in 2018[140] - General and administrative expenses increased by $3.4 million, or 51%, to $10.0 million for the three months ended March 31, 2019, from $6.7 million for the same period in 2018[141] EBITDA and Margins - Media margin increased by 20% to $23.1 million, representing 35% of revenue[122] - Adjusted EBITDA decreased by 5% to $9.1 million, down from $9.6 million in Q1 2018[122] Cash Flow and Liquidity - Net cash provided by operating activities from continuing operations was $5.2 million for the three months ended March 31, 2019, compared to $2.9 million for the same period in 2018[152] - Cash, cash equivalents, and restricted cash increased to approximately $20.2 million as of March 31, 2019, up by $0.9 million from $19.2 million as of December 31, 2018[158] Debt and Financing - Interest expense, net, decreased by $0.6 million, or 26%, to $1.8 million for the three months ended March 31, 2019, from $2.4 million for the same period in 2018[145] - The Refinanced Term Loan has an outstanding principal balance of $59.4 million as of March 31, 2019, maturing on March 26, 2023[160] Strategic Initiatives - The total number of shares outstanding increased to 80,063,989 for diluted earnings per share calculations[130] - The company may explore potential acquisitions of businesses, products, and technologies that complement its existing operations[159]