FLNT - Earnings call transcript Q1 2022

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Operator

Good afternoon. Thank you for attending the Fluent, Inc. Q1 2022 Earnings Call. My name is Matt and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. now Dan pass Barsky would to conference I host our with Instructions] like the to over [Operator Fluent. Dan, please go ahead.

Dan Barsky

welcome. quarter Good discuss and Thank joining for afternoon us our first XXXX results. earnings you to

on today Sugandha Strategy CFO, Officer. Ryan Patrick; and me Fluent’s CEO, today's Joining Khandelwal; and Co-Founder Don our Schulke, our are Chief call

is and to Our our begin from comments followed A with call on that remind the be Khandelwal I our you question-and-answer event live website, website. page please a available call session. Don access by being today's replay of following visit call will the webcast, Relations recorded. on would Patrick like webcast To and will www.fluentco.com. Investor Sugandha our the

certain contain call. implied by plans, or may, believe, business. call hereof. Act forward-looking be Harbor to Litigation Before could during by of this conference of statements words during These forward-looking provisions date information Securities company should, no by Any the results estimate, The may discussed undertakes as of forward-looking by we would as of to listeners risks begin, statements stated obligation will, update I and the the uncertainties statements those materially from will provided identified such management Reform differ the and other XXXX. words company's projects, due this Actual could, are associated like expects, with our the only which covered intend, to on anticipate, similar Private Safe meaning. information call speak made the that statements advise

the and company's we encourage uncertainties and company's Exchange risks Commission, annual with reports XX-Q. you filings on most Form the XX-K, report recent business, the the of Form and on Fluent's discussion a For including to review Securities quarterly with associated

adjusted adjusted GAAP reconciliations to of including these definitions income. earlier the business metrics certain directly performance adjusted most will media Don introduce comparable a measures present variety EBITDA, net evaluates income. pleased financial adjusted media provided that, to issued CEO, margin, financial we indicators, The EBITDA, Fluent's on call, in and financial and of the During our Patrick. related I'm net information With and release Management of are non-GAAP today. to also the the margin, earnings

Don Patrick

you, new to joining Thank the afternoon. and call good Schulke, Chief together and you Strategy I'm Thanks Chief Officer, for with Officer. Dan here board our Founder, Financial all Khandelwal, and our our of Sugandha Chairman Company today. Ryan

we're and with customer quarter effective, results continued the acquisition we consumers quality creating articulated progress our experiences on for long solution what and efficient term growth building strategic represent year-end in Our making digital are high who more earnings are marketers. first consistent towards focused release, our for XXXX sustainable plan

$XX.X positive XXXX, operational In capabilities. prioritizing is our growth term establish that we reflection Fluent’s financial of year time way We remain QX continue long and over strategic of and be we'll were growth as represents revenue we expand million market of XX% follows: a strategies. platforms, to results confident year as share, in presence margin also over by our to gain able invest our our

to lean continue Fluent’s We marketplace. the establish and we brand credentials where leverage in into opportunities can

footprint. reflects million up revenue. at million revenue. represents strategic of media EBITDA is expanding Our our on adjusted XX.X% $X.X X% And our media X.X% $XX over focused of of year margin This investments year ongoing of

strength strategic strategy a this more validated hypotheses. consumer a growth rapidly positioning focused our and plan, market our customer Fluent inherent of environment. principle plan road with as centric solutions major while advantage. strategic successfully XXXX, on throughout quality clients, model is a winning provides performance and foundational marketplace. the squarely is and We growth in stated forward consistently Fluent a ferocious competitive the has A learn believe experience we've appetite represents and in acquisition business to and As their sustainable test creating along our consumers leader two of brand effective a evolving our for industry us

consumers grounded as to more and delivering enabled media more experiences has on their initial their all and Fluent. them lifetime reengage after owned to as Fluent value consumer our meaningful, we're turn, First, based properties, for quality visits In wants. operated needs frequently clients, enhancing well

against it performance connect Second, goals, enhancing improving customer acquisition brand clients while across clients equity monetization us platform is In and consumer driving effectively consumers we alignment more more our turn, enable to ROI. brand while clients. with Fluent our marketplace, our and their improved deliver a efficiently our to total with engaged clients our

growth We continue strategic to into a of sustainable. believe we initiatives variety leaning are focus will on that growth revenue

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So in the strategic quarterly in reflect will growth. investments profile our our term, near margin

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more devices term offers and highest and consumer investments and for can Google's take performance technology an data the we At power that end of within first kind higher of ability and control Data of us that party a this privacy outside our level their plan. is clients. proactively experience, us marketing, provide gather experience. to consumer core prior performance advantage and is to utilize the the growth and and and world significant insight first third give first to strategic technology shifting data short and and responses term party our analytics is integrated real consumers critical long our privacy relevancy real is strength sources Our this enable our on in time party to with improve delivering but measurable the portfolio, determine through party present party our asset, of their outlined data higher explain enhanced insights the platform from tied of its consumer designed XXXX away cookies, of unlike engagements data rewarding data. year based being position. relationship action we a us capabilities. from breadth and and to questions roster to forcing analytics announcement Apple’s which consumer as first market of essence. class improve relevant consumer they and and Fluent’s marketplace its advantage quality well move ask strategy our at gives lifetime does meaningful, enable simple purchase. offers from competitive When solutions important clients, driving ultimately value. it In value and data, We the survey meaningful consumer new the individual then consumers with property The return, interest, clients can't engagement. party marketplace. and wins a changes When to needs us in a marketing which ongoing to increasing past depth third and and performance to interactions digital given the and expand strengthen data preferences performance creating made of insights key visits outcomes. allows our manner previously proprietary these Fluent’s marketing media our within documented The In to quality, a

platform our and industry. we believe foundational, advantage that see, can it's you clear competitive in the differentiates a As us is

marketplace our units. turn, and is clients, right long solves Our and key the platform offer to performance marketplace. consumers with automation. every our capability consumer media revenue established right of with time, business time at performance our permit time advertiser connects marketing Fluent right chase, expand, in footprint our Over platform to efficiently and real and convenience and we've positioned value the term the represents delivering and effectively drive In our the the the operating as which to strengthened strategically our media margin footprint to path that

remain performance of footprint financially Truthset, our ecosystem, we motivated measures and that who top are explore sales our fixated their further strategic reach is Fluent have can the building longer continue We'll making, provide and while data to facts via to enhances QX, more Critically we strategic operation where other Data capabilities of our mix strategic strategic our Given data insights growing into first capabilities, at leaning recently our in industry advantage. any framework as manage experiences while where providers. creating growth via as can strategically solutions experiences. one each and concurrently with clients. and and we data driven reach significant scoring that revenue of of across accuracy we're we above quality runway. offers higher content provide Fluent be our relevant party profiles establish In in In expanding and believe one. Relative opportunities in goal a Fluent enabling value. we consumers, current [BXX] growth launch growth compelling new parallel, where is our expanding initiatives with the were our term results separately our footprint leverage Earnings several establish on Fluent than competitively a consumer's performance further the one. market actively providers with we'll rates defined we two our discuss key attributes channels, meaningful believe growth believe verticals. and marketplace. data closing, relationship and our we returning for pillars clear extend our media our position These leverage Axium, marketplace attributes growth Axle, more quarters. a media our with revenue we will data marketplace, downstream our agenda. experiences plays initiatives that, CRM also and new Epsilon, financial QX The while and number a as a execute except the and driver strategic which strategic data encouraged in longer media a pillars, clients. and centric and reflection of require we show strategic and higher with margins as provide strategic accuracy business business we by marketplace. we and within key Fluent footprint larger XXXX to them, tier constantly ranked we enhancing consumer that’s accuracy progress we both by our follow continue Across our our XX including investment initiatives us and More marketplace are competitive quality priority core strategically investing continued to XXXX into growth scale popular We're the are our share with path and extends longer will value media to evaluation consumers media are will to for prudent In will consumer consumer our class our other demographic channels. a consumer completed well expanding differentiated data provider our industry create, our key against (ph) Overall, we growth term or relevant number be here our more. We and this primarily learn clients These lifetime cohort we significant out world opportunities term and into and subsequent to grounded inherent relationship

results. with on to improvement And that, details turn we our more sequential are margin as shifting We this scale. our then Sugandha on I'll provide financial sights

Sugandha Khandelwal

afternoon good and Don, to everyone. you, Thank

strong they year operational builds call. XXXX on and close of first of against and driven fundamentals have priorities. Fluent competitive execute the above in quarter third million [indiscernible] we saw in the XX% earnings continued party first was we that by guidance the quarter, $XX.X up provided a progress strategic In results This advertiser as in terms assets that and relationships momentum are in strategy, primary generated us both data growth The business year, put pleased QX progress three the great revenue, areas. over results and We position. on previous with momentum the and with the strong our

offers properties. our reengage in rewards our the our and And mobile own encouraged saw of overall websites on core at discover value. top and media US we by [indiscernible] capability rewarded international footprint business, Rewards UK, of properties both largest markets. registered the Canada, line media the first internal our CRM US, driven the we expanding enhance our their the lifetime the quarter Firstly, area by consumers us emails and portfolio Australia and of SMS, modern piece in and is from [DJ] in Fluent products includes and rewards growth growth learning app. visit enables have our are their Millions with properties the second primarily strength business to to which consumers who strong significant our (ph) in

remains a solutions sales driver. Fluent growth us for to priority and key continues be strategic Lastly,

capability new categories, contracted demand to different verticals now this conservation with while use live So industry drive personnel. agent high season call able the center we across and are

quality of As targeted strategic by of the media part traffic traffic high lower volume traffic. reducing quality a involving initiative deliberate the quality approach, we and require

are quality conscious double same will volume that supported compared as increase traffic XX% in revenue almost our are [indiscernible] monetization growth. strong the we But QX our the year, pleased. While to reduce last digit quarter we

QX over in media was revenue. X% up Our year of representing margin XX.X% year million, $XX and

promotional found course media $XX the which For with the we expanded promoting new paid new means largest program deploying context, our audience in In component. cost quarter, our own and media we our campaigns, addressable spent success spend, across of cost nearly on Fluent’s million media the of properties.

last the platform, opportunity the we from call, to quality albeit margin variable levels mix. earnings side media On the noted drive below high of at affiliate traffic our

optimize near mix confident this spend the ultimately to level platform expect future, our shift in continue time. media we our drive digital higher remain in we to While over and to ability profitability

year QX expenses marketing, sales by in business comprising largely marketing grew GAAP Our over and million aggregate in for $XX.X Within X.X% product million. and to basis a or by travel, in-person and mix, on driven G&A an operating $XXX,XXX, increase sales by meetings. that events $X.X development increased year and

beyond reflecting based Our product new technology we our well development focus media properties that expense investments million, increased properties. by traditional our made as as $X.X analytics on and ad continued platform, in of development expanding media

partially we The XX, acquisition the related New sales The of a in expense of of tax XXXX. Taxation X, with million. during a for G&A expense certain offset Lastly, accrued This result XXXX that consideration related the expenses decrease call $X.XX first of year. mainly our to use came On exist department the tags not an down Winopoly and $XXX,XXX. put costs. cost was paid quarter of department by XXXX the Finance settlement and acquisition state litigation released this the amount to quarter April March was on the did increased regarding York G&A first

$X.XX $XXX,XXX increase resulting incremental in quarter expense the in an QX. accrual to in $XXX,XXX of fourth XXXX of million, from Our

EBITDA over quarter largely was on on up X.X% our and adjusted provided benefit our year. saw outlook driven than media the by we earnings first is profitability, representing $X.X and higher for million, X.X% of Finally, we This margins. the at revenue last call the it's year

and growth operating market we line. driving to expenses, will maintaining share on continue a bottom to revenue down approach Moving the to disciplined overall while forward, revenue focus gains, turning

of million facility. non-GAAP availability continue net $XXX,XXX adjusted federal from $X of non-cash We net of Our new GAAP In under quarter taxpayer, be expense NOLs. to million. due QX, lower to of the interest measure our over and in year, reported loss income, the by the declined year a $X.X we cost debt benefiting credit a

As reconciled our the a and reminder, in our release non-GAAP metrics earnings are filings. XX-Q

assets the defined sheet, and first year $XX.X balance million the million, $XX with business. as represents debt decrease we Working XX% and Turning over ended equivalents. $XX year. about balance year. Again, our year underlying quarter as are results to on pleased strength quarter the cash the million. at capital This up the of over current we X.X% with liabilities the the quarter a sheet quarter ended of reflected current good Total of feel at ended minus cash

us ourselves a underway exciting and Our generate of differentiate for has initiatives Thank leadership and team enhance number that currently value strategic revenue to proposition time. and will strong allow Fluent’s profile. earnings your a you

to are questions We now. glad take

Operator

Canaccord. is question with first Graham The Instructions] [Operator from Michael

now Your open. line is

Michael Graham

And ask hey, of for questions, Thanks the all the to if call wanted lot. good Thanks couple I a I there. information a everyone. could. on

traffic it is benefits of context seems you're like your the that. of one. footprint? maybe good initiative, where like I just some there quality that one first little from other just, terms one getting Can then in provide seems we on you you are like still on, The think it evolution a And have

Don Patrick

Michael. clients monetization question. the Actually, from point traffic dividends, is thought from to business be we've is about project originally Thanks, that. the our quality into TQI benefits And in such perspective the something in this for seen around of playing and our we is Thanks that then that is started our operating we're over important embedded of traffic that the around from something core at principles. year equally it we that. going side. quality and an both strong it with is into It and year move a for a ROI was our the on originally a and The

us. improve partners with results to continue results to and our their better drive aggressively continue quality can we for so for the to we So better work clients

still can from we that opportunity are we think around of the a play foundational a where about but good side lot we feel there's I monetization into. So perspective,

Michael Graham

wanted CTV such get it’s how of, about like -- ask want terms then impacting also I some kind going? broadly makes from going just of you Don. Thanks, area, and kind more of sense. forward? And I model it's our just to a business dynamic Great. your that to and in updates How

Don Patrick

to who's leading turn Michael, effort us. been I'll for Ryan over that

question. the for thanks So

Ryan Schulke

interesting that terms is of learning comes utilize format channel party expansion, everything us very, out for and from very performance testing Yes, seeing start us. in places best to mediums can will driven as data TV TV the to is Michael, go learn TV other our really with into things. new of digital world the first we that side influence and go connected approaches a and like we attractive start we connected that here, where but trends how we're as apply practices the where on some more to some and strength creative

still for these seeing but it's trends of types into. coming of different So very at our exciting type with off testing different that's we're that this for profile, new quality somebody new, coming exciting a is of mediums partners, we're of types in us, just traffic behavioral

on is it as something optimistic growing we're about So certainly we here. roll

Michael Graham

right. the guys. All Ryan. queue in Thanks, you. back Thank And go Awesome. I'll

Don Patrick

Operator Thanks, The you. Research. from question Jim is Goss Barrington Michael. Thank with next

is open. Your now line

James Goss

couple. Thanks. got I've Okay. a

did there scale seems headed? would that assumption, involves If initiative correct is over the that's where of me how that quantity. now points many of First, quality to that? it many And the have how and overall right please a contact sort way favor tell to have you you to of just clients be relative reducing number the

Don Patrick

Jim. Thanks,

questions is you're about your clients, that it's the not about? number consumers, So reducing clients asked of

James Goss

Well, the the ones are individuals the targeting. the but -- business consumer you not you are client, Yeah. targeting,

Don Patrick

to walk There's good great Jim. it’s couple. It's I'll of here a -- pieces sort a a Thanks. answer through Yes. multiple so question,

and in when them. value First lifetime onto consumer with comes long there's it's and of is, our that the before properties, as how have then terms relationship first we we've our the talked about

year than So is over extend build consumer one time we've things for it about talking longer period been traditionally of now a and that much is our efforts the all journey that CRM to a our for ability in Fluent. little and been the

has overall be might every properties consumers of in, increase. less are our So coming number single that although continued day on to consumers the there

terms we thing digital just our those and on of The are do per data? second drive on websites for day, of what campaigns how to day when more So, use we having -- can of obviously about is, big our the first consumer interactions and clients. them, how it we've and interactions interactions many relevant data thousands millions in that with with our they're our with properties we interactions they're we make party and better have ROI have talked site we hundreds for per and

about value more the it's extended. the So that's quality lifetime and

piece properties, of have expanding apps, only mobile is, expanding us extending with footprint them. and also allows is, what and that drive we I’d internationally, call, to our based Jim the on been other answer our, been been that that we've not the we've I'll properties second and web been And we've expanding have the our to that sort continue like traditional amount with media and The also in the with jobs we consumers it's pillar. expanding we've interactions but

James Goss

Okay. continuous And a continuing with to more you do how make And are happen? maintain sort that do these looking relationship effectively how -- of of you clients? -- you

Don Patrick

Absolutely.

continue that consumers longer they're and we getting by are have defined the that with to it. the to and We maintain That leverage value the out time period. that engagement over looking a of is

our key at that come that So the relevant of to time wants our onto to properties, the that, they're property. business when that is how is piece needs and and fundamental consumers our digital how on a when proposition is engaging

whether the measure is back, they're that So often thirty work and we they looking in sixty in that's Jim. interested it's sort of are time way what days, now are years, five at years, three measurements which what the with that verticals the we able them, days, monetization, their coming length of to we're how around

James Goss

measured And about -- Last first party comment you in how thing was just the is me, of that data. made back the Okay. for accuracy I wondering home?

Don Patrick

cohorts Truthset. is company providers They they data look the it they data called volunteer and pull a in -- on do they we to gave data together, rank they in release in ask the quarterly sources. the that is based example they comes value, on party based external third accurate independently come how and evaluation people, independently The earnings providers

more the going said, names a -- long ranked are first So are providers it's this long I ranked except categories been we everyone independent. business against we than we as time. else standing real very And And that one. have in for in data

provide So to declared being like use our to be I think power continue onto it allows they data to them to more give they of and the and insight interact to you as what properties that like first what tells and party engaged its see come to with us the experiences relevancy them able meaningful of into us with. they to to that

James Goss

Okay. you very much. Thank Appreciate it.

Don Patrick

Jim. Thanks

Operator

currently is There Instructions] a Graham. registered. your follow no you The further question. Thank questions next for from question Michael [Operator are

is line now Your open.

Michael Graham

Yeah. Thanks. one I just wanted to more. slip in

it the any wonder You you over framework that like of could mentioned the put and year so? kind those, and of just or what around your expanding of kind I sales capabilities, if looks magnitude effort and next

Don Patrick

Sure. differences audiences And We've sales into The how we at lean our digital that not can really vertical, our We taking about continue life third look the around how then last to QX health then we look about approach our the the the and we insurance. the -- get consumer properties. right take really our -- think spinning very say, They build class seen brand? to strong Thanks, way one but is we is best. we quarter that, world Group auto. would in Michael. Fluent on do QX consumers was audience supply the talked then up and we're vertical. big biggest, certainly will be and So a the in And the Solutions another our quality connect would we which competitors growth for The to business. now, demand got time they heavily be approach us. And a look the very is and Sale the consumer I it. to centric strong see they we've the at we talked certainly very we We're here. say at and our for experience them right the

So continuing top XXXX verticals, we to digits, those to within did and to it's we building drive digit the verticals. that end to and double side double look core marketplace new mostly throughout value around on the be continue growth have getting out grow going right the

another QX. And we So another test QX. and you'll you'll as continue see vertical in one learn, to see in

So very those on how we methodical grow we're being out.

Michael Graham

All lot right. Thanks Don. a

Don Patrick

Thanks, Michael.

Operator

for your There time. questions waiting at Thank you no this are additional question.

the remarks. will pass I the management over to team conference closing So for

Don Patrick

everyone I want you to thank your today. for for release and much your thank us out shortly. very joining And The earnings will questions. be support

Operator

Thank concludes earnings Inc. call. you participation. Fluent, for XXXX the That your QX

You your may now disconnect lines.

Fluent (FLNT) 9 May 222022 Q1 Earnings call transcript