Fluent (FLNT) FY Conference Summary Company Overview - Fluent is a digital advertising company focused on customer acquisition for major brands [2][4] - The company has pivoted towards a new digital marketing channel called Commerce Media, which has rapidly grown from $0 to $50 billion in less than four years and is expected to double again [5][13] Key Financial Metrics - Fluent achieved a $65 million annual run rate in its Commerce Media business and expects to double this in 2025 and again in 2026 [6][19] - The company has historically grown its legacy business at a compounded average growth rate of over 12% for the first 12 years [4] - The transition to Commerce Media is anticipated to return Fluent to double-digit revenue growth with improving margins and profitability [6][19] Strategic Pivot - The strategic pivot from legacy business to Commerce Media is driven by the need for higher growth and higher margins [34][36] - Fluent's first-party data asset is a key competitive advantage, allowing for better consumer targeting and ad relevance [26][49] - The company has integrated its technology into partner websites, enabling a performance-based revenue model with no upfront costs [15][16] Market Dynamics - The Commerce Media market is projected to grow from $50 billion to $100 billion by 2027 [13] - Fluent's business model allows for a revenue share split, typically $60 to the media partner and $40 to Fluent [10][45] - The company is positioned to benefit from tailwinds in digital advertising, particularly in the context of privacy and data compliance [14][18] Partnerships and Growth Opportunities - Fluent has launched a strategic partnership with Rebuy, a top Shopify app, which opens access to 12,000 merchants and enhances market penetration [22][23][42] - The company is exploring opportunities in additional verticals such as travel, finance, and entertainment beyond its current focus on retail, ticketing, grocery, and restaurants [21][22] Case Studies and Performance Metrics - A case study with a large sports retailer showed a 35% increase in revenue per consumer compared to competitors, highlighting the effectiveness of Fluent's data-driven approach [31] - Another case study with a gaming company demonstrated a 650% quarter-over-quarter growth in new users, indicating the scalability of Fluent's solutions [33] Conclusion - Fluent is undergoing a significant transformation towards a higher growth, higher margin business model through its Commerce Media solutions, leveraging its first-party data and technology integration to drive better results for advertisers and partners [39][40]