Fluent(US:FLNT)2025-02-28 20:19Financial 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 [34] 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% over fiscal 2023 [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 focused on shifting its business mix to commerce media solutions, which is seen as a significant growth opportunity [9] - The strategic plan includes investing in partnerships with major brands and enhancing the company's market position [10] - The company has discontinued the ACA portion of its call solutions business to focus on more strategically compelling areas [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to return to year-over-year double-digit consolidated revenue growth and profit growth in 2025 [15] - The company anticipates strong year-over-year triple-digit revenue growth continuing throughout 2025 [8] - 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 support its strategic goals [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, 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 stated that while the owned and operated segment is not a growth engine, they aim to stabilize it while focusing on commerce media solutions [51][52] 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 customers? - Management noted that their consumers are over 25% more valuable compared to competitors, indicating a strong competitive advantage [85] Question: How do you see gross profit dollars from commerce media evolving? - Management expects the commerce media business to increase as a percentage of total revenue, although seasonality may impact Q1 and Q2 [96][98]