Inuvo(INUV) - 2023 Q4 - Annual Results

Financial Performance - Revenue increased by 21% year-over-year to $20.8 million in Q4 2023[5] - Gross profit rose by 55% to $18.2 million in Q4 2023, with a gross margin of 87.3% compared to 68.0% in Q4 2022[3][8] - Net revenue for the full year 2023 totaled $73.9 million, a slight decrease from $75.6 million in 2022[5] - Cost of revenue decreased significantly to $2.6 million in Q4 2023 from $5.5 million in Q4 2022[6] - Net loss for Q4 2023 improved to $2.4 million, or $0.02 per share, compared to a net loss of $4.0 million, or $0.03 per share, in Q4 2022[11] - Adjusted EBITDA loss improved by $600 thousand in Q4 2023 compared to the same period last year[6][12] - EBITDA for Q4 2023 was $(1.74) million, compared to $(3.29) million in Q4 2022, indicating a 47.1% reduction in losses[24] - Adjusted EBITDA for Q4 2023 was $(1.22) million, an improvement from $(1.82) million in Q4 2022, reflecting a 32.7% decrease in losses[24] Operating Expenses - Operating expenses for Q4 2023 totaled $20.6 million, up from $15.7 million in Q4 2022[9] - Total depreciation for the year 2023 was $1.67 million, up from $1.53 million in 2022, marking an increase of 9.3%[24] - Stock-based compensation for the year 2023 was $1.99 million, down from $2.35 million in 2022, a decrease of 15.5%[24] - Interest expense for the year 2023 was $29.57 million, an increase from $21.11 million in 2022, reflecting a 40.1% rise[24] Cash and Debt Position - As of December 31, 2023, the company had $4.4 million in cash and cash equivalents and no debt[13] Product Development and Market Outlook - The company introduced two new higher-margin products in 2023[6] - The sales pipeline is robust, with a promising outlook for 2024 due to advancements in AI capabilities[4] Non-Recurring Items and Adjustments - The company recorded a non-recurring expense of $1.37 million related to fraudulent media in the previous year[24] - Unrealized loss on marketable securities for the year 2023 was $14.67 million, a significant decrease from $435.55 million in 2022[24] - Doubtful account reserve for the year 2023 was $361.10 million, down from $1.24 million in 2022, indicating a 70.9% reduction[24] - The company emphasizes that future results may still be affected by unusual or non-recurring items despite the adjustments made in EBITDA and Adjusted EBITDA[26]