Core Insights - Fluent, Inc. has been recognized on Crain's New York Business 2025 Best Places to Work list, reflecting its commitment to a thriving workplace culture [1][2] - The recognition is based on employee engagement, workplace culture, benefits, and professional development, assessed through confidential surveys and questionnaires [2][5] Company Culture - The CEO of Fluent emphasized that the company's growth and success are driven by its people, highlighting efforts to create a supportive and empowering environment [3] - Fluent promotes hybrid work flexibility and invests in employee well-being through mental health resources, mentorship programs, and flexible schedules [3][4] Industry Recognition - The Crain's New York Business Best Places to Work program is conducted in partnership with Best Companies Group, showcasing organizations that prioritize employee welfare as key to long-term success [5] - The recognition serves as a benchmark for workplace excellence across New York [5] Company Overview - Fluent, Inc. is a commerce media solutions provider that connects brands with engaged consumers, utilizing first-party data and proprietary machine learning to enhance revenue streams for partners [6] - Founded in 2010, Fluent specializes in performance marketing to drive monetization and engagement throughout the customer journey [6]

Core Viewpoint - Fluent, Inc. has announced a definitive agreement for the issuance and sale of 5,871,427 shares of common stock at an effective purchase price of $1.75 per share, aiming to raise approximately $10.3 million in gross proceeds to bolster its balance sheet and support growth plans [1][3]. Group 1: Private Placement Details - The private placement includes pre-funded warrants with an exercise price of $0.0005, which will be exercisable upon stockholder approval [1]. - The warrants have an exercise price of $2.21 per share and will be exercisable starting six months after issuance, expiring five years from the initial exercisability date [1]. - The offering is expected to close on or about August 19, 2025, subject to customary closing conditions [1]. Group 2: Financial Implications - The gross proceeds from the private placement are expected to be approximately $10.3 million, before deducting fees and expenses [3]. - If fully exercised, the additional gross proceeds from the warrants and pre-funded warrants could amount to approximately $13.0 million [3]. - The net proceeds from the private placement are intended for working capital and general corporate purposes [3]. Group 3: Company Overview - Fluent, Inc. is a leader in commerce media solutions, connecting brands with engaged consumers through exclusive ad inventory and first-party data [7]. - The company has experienced triple-digit growth in its Commerce Media Solutions business, attracting a growing list of world-class brands [2]. - Founded in 2010, Fluent leverages performance marketing expertise to drive monetization and enhance customer engagement [7].

Core Insights - Fluent, Inc. has expanded its partnership with Authentic Brands Group, enhancing its position as a post-purchase monetization partner for retailers [1][2] - Authentic Brands Group owns a portfolio generating over $32 billion in global annual retail sales, and the partnership aims to add millions of annual transactions to Fluent's network [2][3] Company Overview - Fluent, Inc. is a commerce media solutions provider that connects brands with engaged consumers, leveraging exclusive ad inventory and first-party data [5] - Founded in 2010, Fluent focuses on performance marketing to drive monetization and enhance customer engagement [5] Partnership Details - The expanded partnership will support post-purchase monetization for additional brands including Reebok, Vince Camuto, and Champion, among others [2][3] - Fluent's technology allows retail partners to deliver personalized offers that enhance customer experience without disrupting the purchasing process [3][4] Strategic Importance - The partnership is seen as a significant step in building a high-performance commerce media network, unlocking premium ad inventory for brands [3] - Authentic Brands Group recognizes Fluent's data-driven approach as a means to drive new revenue and improve customer experience [4]

Company Overview - Fluent, Inc. is a leader in commerce media, connecting top-tier brands with highly engaged consumers through exclusive ad inventory and robust first-party data [3] - The company utilizes proprietary machine learning to unlock additional revenue streams for partners and empower advertisers to acquire valuable customers at scale [3] - Founded in 2010, Fluent specializes in performance marketing to drive monetization and increase engagement throughout the customer journey [3] Upcoming Event - Don Patrick, the CEO of Fluent, will attend the 45th Annual Canaccord Genuity Growth Conference on August 13, 2025, at the InterContinental Boston [1] - Mr. Patrick will participate in a fireside chat at 12:00pm ET and will be available for one-on-one meetings throughout the day [1] Webcast Information - A live webcast of the fireside chat will be available at a specified link, with a replay accessible after the event [2]

Core Insights - Fluent, Inc. has announced the formation of its inaugural Board of Advisors to enhance its commerce media solutions and drive growth and innovation [1][10] - The Board will collaborate with Fluent's executive team to inform strategic decisions, improve brand partnerships, and identify new revenue opportunities in the commerce media sector [2][10] Board Composition - The Board of Advisors includes industry veterans with extensive experience in scaling businesses and digital transformation [3] - Notable members include: - Drew Cashmore, former architect of Walmart Connect, who scaled the business beyond $2 billion [4] - Charlie Cole, a two-time turnaround CEO with expertise in digital transformation and ecommerce [5] - Shawna Hausman, who led a 300% increase in revenue at FSA Store, contributing to its acquisition [6] - Jennifer Olsen, who increased market cap by 40% at Caleres and achieved a 100% revenue increase at UNTUCKit [7] - Brian Wong, a founding partner at Ascii Ventures and co-founder of Kiip, known for his innovative marketing strategies [9] Strategic Goals - The formation of the Board is part of Fluent's strategy to leverage industry expertise for market expansion and innovation in commerce media solutions [10] - Fluent has reported triple-digit year-over-year revenue growth in its unaudited Q4 results, indicating strong momentum in the commerce media space [10][12]

Group 1 - Fluent, Inc. will report its financial results for the First Quarter 2025 after the close of U.S. financial markets on May 15, 2025 [1] - A conference call to discuss the results will be held at 4:30 pm ET on the same day [1] - The conference call can be accessed by phone after registering online or via audio, and will also be webcast on Fluent's Investor Relations Page [2] Group 2 - Fluent, Inc. is a commerce media solutions provider that connects top-tier brands with highly engaged consumers [3] - The company leverages exclusive ad inventory, robust first-party data, and proprietary machine learning to unlock additional revenue streams for partners [3] - Founded in 2010, Fluent uses its expertise in performance marketing to drive monetization and increase engagement across the customer journey [3]

Financial Data and Key Metrics Changes - In Q1 2025, total billings were $97.6 million, a 7.3% decrease year-over-year, but above guidance due to pipeline wins in the U.S. and improved delivery [28][27] - Revenue decreased 8.4% to $61.9 million, driven by lower top-line billings and a mix of advertisers [31][27] - Adjusted EBITDA was negative $4.4 million, a decline of $4.6 million year-over-year [31] - Free cash flow improved by $11.6 million from the prior year, reaching negative $10.8 million [31] Business Line Data and Key Metrics Changes - U.S. revenue excluding Bridge decreased 10.9% due to lower billings [30] - In the UK, revenue grew by 8.6%, driven by higher billings and increased supply [30] - Bridge revenue increased 1.6% due to new client wins with two major retailers [31] Market Data and Key Metrics Changes - Consumer incentives decreased by 5.1% to $35.7 million [31] - The travel category saw a decline due to budget cuts from key accounts, while everyday spend and specialty retail categories showed strength, with specialty retail growing by 52% [28][27] Company Strategy and Development Direction - The company is focused on "platformizing" its business to become a differentiated commerce media platform, enhancing its ecosystem and data capabilities [9][10] - The introduction of the Cardlytics Rewards platform (CRP) aims to expand partnerships beyond financial institutions, allowing any merchant with digital properties to become a publisher partner [12][13] - The company is investing in technology to ease integration processes for partners, aiming for quicker onboarding [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is macroeconomic uncertainty, consumer spending remains strong, particularly in everyday categories [5][6] - The company expects continued caution among advertisers, leading to delays in ad spending commitments [37] - For Q2 2025, the company anticipates billings between $100 million and $108 million, reflecting a year-over-year decrease of 9% to 2% [36] Other Important Information - The company introduced a new metric, monthly qualified users (MQUs), which increased by 12% to 214.9 million in Q1 [32][33] - Adjusted contribution per MQU (ACPU) was down 24% year-over-year, reflecting the monetization challenges with the new large FI partner [35] Q&A Session Summary Question: Can you elaborate on the opportunity presented by the non-FI side of the business? - Management highlighted that the Cardlytics Rewards platform allows for redefining partnerships and expanding the publisher ecosystem, with potential for strong growth [49][50] Question: How does consumer spending compare to last year? - Management indicated that consumer spending remains strong, particularly in everyday categories, with some signs of front-running purchases ahead of tariffs [56][58] Question: What are the economics for Cardlytics with new partners? - Management stated that the platform is moving towards engagement-based pricing, with positive economics expected for both Cardlytics and its publisher partners [62][63] Question: How is the company assessing its billing space amid macro uncertainty? - Management noted that certain categories, like restaurants and retail, tend to perform better in downturns, and they are working closely with advertisers to navigate the environment [72] Question: Can you provide details on the mechanics of the Cardlytics Rewards platform? - Management explained that the CRP expands publishing supply from banks to non-bank merchants, enhancing consumer engagement and value [74]

Core Insights - Fluent, Inc. has released an enhanced Fluent Identity Graph aimed at improving personalization and optimizing results for advertisers, partners, and consumers across its commerce media solutions [1] - The identity graph is a significant differentiator for Fluent in a competitive market, leveraging 14 years of customer acquisition experience and a vast first-party database of customer insights [2] Partnership and Data Integration - Fluent has partnered with Experian to enhance its identity graph by integrating Experian's online and offline identity data with Fluent's 200M+ first-party profiles, providing a more comprehensive view of U.S. consumers [3] - This partnership aims to improve targeting accuracy, ad relevance, and revenue per transaction through a privacy-safe approach [3] Technology and Performance Strategy - The integration of Experian's identity data allows Fluent to deliver smarter, personalized post-purchase offers using advanced algorithms and machine learning [4] - Fluent's AI ranks and serves relevant post-transaction offers based on consumer behavior, purchase intent, and conversion signals, enhancing personalization and driving better performance for partners [4] Market Position and Future Growth - The Fluent Identity Graph builds on over 14 years of experience in fostering consumer relationships and advertiser outcomes, positioning the company to better understand and convert high-intent audiences [5] - The release is part of Fluent's broader investment in AI-powered innovation, aimed at unlocking greater value for partners and driving long-term growth in the evolving commerce media category [5]

Financial Data and Key Metrics Changes - In full year 2024, total billings decreased by 0.7% year over year, while annual adjusted EBITDA was $2.5 million positive for the second time on a full year basis [20] - In Q4, total billings were $116.3 million, an 11.2% decrease year over year, but exceeded guidance due to improvements in delivery and pipeline wins [21][22] - Revenue decreased by 16% to $74 million in Q4, with U.S. revenue down 19.9% due to lower billings and higher redemptions [24][25] Business Line Data and Key Metrics Changes - The UK business saw a 27.2% revenue growth in Q4, marking the fourth consecutive quarter of double-digit growth [24] - Bridge revenue declined by 12.7% compared to the prior year due to the loss of key accounts [24] - Adjusted contribution was $40.7 million, down 12%, but the adjusted contribution margin improved by 2.5 points due to a more favorable partner mix [25] Market Data and Key Metrics Changes - MAUs were 167.3 million for Q4, a decrease of 0.4%, primarily driven by winding down DASH and a smaller FI partner [26] - ARPU was $0.44, down 16.7% as a result of increased consumer incentives [26] - The company expects Q1 to represent the trough in performance, with billings guidance indicating a negative growth of 10% to 13% [27][29] Company Strategy and Development Direction - The company is focused on a turnaround plan to return to growth, divesting non-core businesses and investing in partnerships and data engineering capabilities [7][8] - A new office in Taiwan is being established to leverage local talent aligned with growth priorities [8] - The company aims to strengthen its competitive position by enhancing its commerce media platform and expanding its network [6][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged executional challenges in 2024 but expressed confidence in the company's unique value proposition and the potential for growth in 2025 [20][19] - The company anticipates a transformative year in 2025, focusing on product and tech stack innovation, expanding its network, and improving execution [19][32] - Management noted a consumer pullback in discretionary spending but highlighted strength in everyday spend categories [60] Other Important Information - The company ended Q4 with $65.6 million in cash and cash equivalents, providing over $100 million in liquidity [26] - Operating cash flow was positive at $3 million, while free cash flow was negative $1.5 million, showing sequential improvement [25] - The company is committed to maintaining cost discipline while making strategic investments in key areas [31] Q&A Session Summary Question: Delivery performance improvements - Management confirmed sequential improvements in delivery, with campaigns now hitting ROAS goals and under delivery continuing to improve [36][37] Question: Significance of new NeoBank partnership - Management emphasized the importance of every partner, noting that the new neobank will add diverse demographic segments and is expected to be fully ramped up shortly [40][42] Question: Future operating expenses outlook - Management expects operating expenses to remain below $40 million for the rest of the year, normalizing from Q4 levels due to reduced incentive compensation [44][45] Question: Stability of consumer incentives - Management indicated that consumer incentives should remain stable in the low 60% range as engagement improves [50][52] Question: Impact of Dosh on profitability - Management clarified that Dosh's closure would not have a significant impact on profitability, allowing the team to refocus on more critical initiatives [53][55] Question: Advertiser mentality amidst economic uncertainties - Management noted a consumer pullback in discretionary spending but highlighted the strength of everyday spend categories and the diversified advertiser base [60][62] Question: Potential of micro-targeting solutions - Management expressed optimism about the unique capability of combining datasets to unlock new CPG budgets and provide more value to consumers [63][64] Question: Contribution of new large U.S. FI partner - Management stated that the new partner would not significantly contribute to Q1 numbers but is expected to ramp throughout the year [67][68] Question: Drivers of pipeline strength - Management highlighted improvements in delivery and supply as key drivers of pipeline strength, with a focus on expanding partnerships beyond financial institutions [69][70]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $65.4 million, a decrease of 10% from the prior year [25] - Adjusted EBITDA for Q4 2024 was negative $1.7 million compared to positive $2.5 million in Q4 2023 [31] - Net loss for Q4 2024 was $3.4 million, compared to a net loss of $1.9 million in the prior year [33] - Full-year 2024 net loss was $29.3 million, an improvement from a net loss of $63.2 million in 2023 [33] Business Line Data and Key Metrics Changes - Commerce Media Solutions revenue increased 139% to $17.2 million in Q4 2024 compared to Q4 2023, and for the full year, it totaled $41.3 million, an increase of 284% [26] - Owned and operated revenue decreased by 23% in Q4 2024 compared to the prior year, and a decrease of 29% for the full year [26] - Media margin in Q4 2024 was $16.5 million, representing 25.3% of revenue, down from 33.1% in the previous year [27] Market Data and Key Metrics Changes - Commerce Media Solutions accounted for 26% of consolidated revenue in Q4 2024, up from 16% in 2023 [19] - The commerce media industry is estimated to be valued at over $50 billion and expected to reach over $100 billion in the next five years [16] Company Strategy and Development Direction - The company is strategically shifting its business mix towards commerce media solutions, which is seen as a significant growth opportunity [9] - The focus is on building partnerships with major brands and enhancing market credibility [37] - The company plans to continue investing in technology and analytics to support the growth of commerce media solutions [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong year-over-year triple-digit revenue growth in commerce media solutions throughout 2025 [8] - The company anticipates a return to year-over-year double-digit consolidated revenue growth and profit growth in 2025 [15] - Management acknowledged challenges in Q4 due to increased media costs and a write-down related to ACA revenue [12][14] Other Important Information - The company ended Q4 2024 with $10.7 million in cash and cash equivalents [34] - Total debt as of December 31, 2024, was $31.9 million, an increase from $30.5 million at the end of 2023 [35] - The company has appointed Adrian Stack as the new Chief Product Officer to further its goals in commerce media [37] Q&A Session Summary Question: What is the pace of growth for Commerce Media Solutions going forward? - Management indicated that they expect to continue growing at a triple-digit rate in 2025 and beyond, supported by a strong pipeline and competitive advantages [42][44] Question: Is there a portion of the owned and operated revenue that is more durable? - Management views the owned and operated segment as a competitive advantage but does not expect it to be a growth engine, focusing instead on stabilizing it while prioritizing commerce media solutions [51] Question: Can you elaborate on the pipeline in the commerce media business? - Management confirmed that the pipeline is significant and growing, with potential transformative partnerships that could accelerate growth [74][76] Question: What is the conversion rate for post-sale ads compared to the competition? - Management stated that their consumers are over 25% more valuable than those connected through competitors, indicating a strong competitive advantage [85]