FLNT - Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome. Thank you for joining us to discuss our first quarter 2024 earnings results. With me today are Fluent's CEO, Don Patrick; Interim CFO, Ryan Perfit, and Chief Strategy Officer, Ryan Schulke. On our call today, we'll begin with comments from Don and Ryan Perfit, followed by a question-and-answer session. I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available following the call on our website.

please fluentco.com. Investor webcast, our page the at website access visit Relations our on To

begin, would conference we harbor Act discussed forward-looking Before of I covered provision by certain listeners statements Securities management information of that XXXX. the during Litigation the this under call Private contain like will safe to Reform advise

may business. These and identified company's by meaning. obligation due Any on as such made during expects, from of call. the of risks words projects, Actual statements The estimates hereof. date be will, update differ associated by forward-looking this undertakes no provided to materially words as could, with company statements similar plans, statements results stated information those our and other this uncertainties implied or the to call speak forward-looking could the only

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certain the media financial will management also non-GAAP call, income. adjusted present net EBITDA information margin, related and During adjusted to

issued variety financial today. release The to the the evaluates comparable the on earlier including of and a of metrics. press our these directly non-GAAP Management measures definition indicators, metrics are business financial these GAAP of performance reconciliations in earnings most provided

With Fluent's am Don I that, pleased introduce to Patrick. CEO,

begin. may You

Donald Patrick

effective that in Financial are strategic syndicated the marketplaces our call and Officer. I'll accretive Chief a for the In comments competitive our will on Chief believe focused with all to we the today. to that high-volume, an you high-growth represent strategies, Ryan and Officer, Schulke, long-term Thank evolving into as be pivot quarter a be in making technology our joining that and first brief some platform operated performance Perfit, company strategic our XXXX and core. Strategy Board here concert, is margin afternoon. from operated advantage. growth marketplaces springboard our new of results about runway I'm our proprietary reflect Good make leadership position marketplaces owned owned proving Ryan Founder; Chairman leveraging our we together ultimately

today, In meaningful continue our also we reflecting that and our owned to Marketplaces performance release post-FTC with impact business quarterly demonstrate marketplaces financials. earnings new progress the on reported results our in settlement operated transition and the corresponding while

laid Overall, our financial the out remain releases. results road we previous consistent earnings with map in

results decline as our strategically in financial felt quarter XXXX. QX compelling our revenue standards forgo operated and that of These by decisions and to evolving the or follows: no were impact our related of versus represents $XX first driven financial results strategic revenue we a and streams marketplaces. not Our were quality primarily settlement XX.X% million, owned did meet which longer FTC

Revenue results by albeit offset growth performance off continuing a the with were double-digit base. marketplaces positively new strong to smaller accelerate

with saw XXX Our was QX our marketplaces. $XX.X almost from media mix strategic consistent last XX.X% At versus year-over-year of to of X% margin shifting XX.X% increase and performance margin increase reflection margin points an we our of revenue basis of a direct year, plan a higher business million media XXXX.

sustainable in of continued well represents see our Adjusted X.X% compelling EBITDA what strategically agenda. as revenue, growth market-proven and million seasonality a of reflecting $X.X investment as as we

seasonality we new which half; two, second declines presently of verticals the on and one, we aggressively nonstrategic given: be based businesses, of while expect to in still first decline XXXX, quarterly the year-over-year our exiting outlined the serve. cycled performance will As our have until release, high in which fully residual our year-over-year growing marketplaces, impact sequential the the of half see won't revenue last earnings

performance clear, marketplaces. expectations of To ahead new our on we're be

access marketplace we with brand to revenue marketplaces differentiated acquisition model partners. ongoing valuable Our foundational being significant our that build being are pressure meets attractive provides their our relationships partners that meaningful owned X customer The strength pricing in consumers provides margin and owned performance their a very world-class growth marketplaces where X Fluent's operated us are and to and our driven on by with needs headwinds, strategically while aligned X new. goals. operating

prioritization In their post that on spend continue ad previous on and volatility of given the consumer one, a macroeconomic the consumer our acquisition clients in settlement; continued the headwinds earnings strategies releases, shifting advertiser impact we've detailed our FTC to two, clear market. return

quality our owned Our satisfaction commitment and outcome to strategic to marketplaces advertisers. quality of driving have for relative the experiences our adjustments to engagement while these been operated grounded consumer enhance and our in headwinds the higher with

violate spite in industry has that and the we is the headwind certain practices are third leading-edge led the we of Fluent marketing that believe for fact which guidance. executing in Act activity via are model protocols, that establishing noncompliant accelerate Our FTC seeing and the industry, best-in-class entire competitors the

these market practices nonclient us term, disadvantage at immediate the in a competitive channels. media certain scaling In put

not business take We But of to regulatory to the situation, competitors and are advantage naive. the some apparel. the noncompliant markers albeit across also industry. felt and we we address more expected FTC try at financially would aggressively the certainly And expeditiously their own

competitors troublesome practices plaintiff the a playing FTC very the and regulators and not some It our enforcement by eliminate indefinitely, class these competitors will our state practices the [indiscernible] bar at will level and of continue federal field. remains of eventually our along view active with that and our action

brand market resolve seen in strategic advantage. a distinguishing creating the as we've competitive our distinct remains financial an as near-term the and impact our in Regardless investment in

of of owned our to the and until several appropriately deemphasize expenses our will operated accepts continue marketplaces set manage requirements. quarters the growth we an the over FTC to next market, current and competitive new realities the responds Given

and established the Those quarter. in businesses capabilities we're retail more markets. which engine The line Fluent the expertise our our dynamic growing brand and and in our growth date, business very opportunities marketplaces, seasonal ticketing. in impacted marketplaces, our in we've are grounded marketplace than performance unleash strategic health, owner-operated large of have that into our To is accelerating trend core vertical

stronger season, While coming the market we will returning have in half growth are which to Fluent we to enterprise of continue share, grow second XXXX. to will year-over-year the

Our strong both double-digit marketplaces revenue AdFlow are and call driving growth. solutions performance

to growing Currently, reach commerce XXXX. U.S. market, commerce these businesses brands we're the rapidly billion to continue expect and a by the our budgets We bottom and expected in XXXX. is media early that AdFlow become scale, meaningful launched to by to XX% to media XX% excited large contributors a solution more is media by expected success. is $XXX and increase that of we line have market

enabled We're in going strategies leveraging our marketplaces. technology, year-over-year driven to is dramatic where these puck wins, and foundational the revenue partner growth headed learning machine AdFlow data proprietary which excellent show capabilities dynamic are and continue new results that platform yielded our by by have to

they Year-to-date, these growing expanding ticketing optimal We're AdFlow as represent new results vertical. added we've higher partners for reach excited engagement a to at grocery in opportunity purchase early world-class the brands into also while by both seeking and new the moment. and quality consumers retail

growing broader as provide this scale. business us access expect brand partners We will we

we before across include our enhancing are We transaction and expand our quarter solution see expand detail engagement, commerce that loyalty next us to AdFlow also significant we'll consumer retention the to breakthrough to where partners' partners our now marketplace, commerce beyond platforms. see working with further post

our business, call Act extension we've operating the metrics our in focused vertical solutions established and our the Care on and of In model the new market. financial proven our heart business health Affordable

already our a to given growing market business opportunity sequential who scale are market. and Fluent find vertical digits, double attractive is adding continue margin high-growth growing core. within by ACA is believe We the we'll fragmented Our a potential Fluent this our where and recognizing exceeds we highly ourselves competencies. differentiate existing partners new strategy the partners can high expansion

the highly competitive market to marketplace the established go-to-market positioned analytical We're over operated with the our and decade set. in remains our leverage Importantly, industry owned model we've platform. uniquely performance capabilities from inherent a differentiated

our operating market-leading continue into while marketplaces it higher-quality and enables fuels and our to owned consumer pivot stabilize, So engagement. essentially

roles the are regarding are We that agenda. our marketplaces our financial in longer-term and performance strategic enthusiastic growth quite playing

follow. Importantly, as margin we market accretion will grow share,

higher consumers and customer our our sustainable make will investments, continue building experiences We digital to for clients. strategic creating effective for more quality solutions acquisition while and bets

solution performance bringing is our are credibility. marketplace of thoroughly signature strengthened the partners, dramatically marketplaces Our and brand endorsed set by our

We are elevating the equity we're within that brand confident industry. Fluent's position

Moving half. forward, in XX% we're consolidated targeting than by XXXX, growing Fluent revenue growth second year-over-year returning from our have greater emerging businesses the should which to in

are enhance our we marketplaces. than To rapidly position, total the ahead year. our begin performance of our half the our growing as revenue we date, of confident that in are new back in gross market we more profit Importantly, expectations we'll

more detail provide Ryan with results. that, I'll our turn And Perfit to to on financial

Ryan Perfit

$XX I'll additional and QX In for prior down XX% in Thank joining X% on color year everyone, we from you, us some Don, QX. thanks today. generated revenue, and provide million our down from to sequentially earnings. now QX,

key expected, and and with consent operated connection the staffing in of As reductions These sectors. by environment requirements and the retail to clients the order. experience regulatory challenging media changes in continued to spend and sequential business business practices Marketplace consumer challenges and a owned effects macroeconomic in our in and recruitment entertainment, reflect influenced FTC

our a for compliance stabilize continue and back However, industry the standard clients. we we of half on as the owned of are optimistic operated in will year business set behalf that the to high

performance growth in year. confident seasonality. half look year, the due new expected we syndicated this performance QX last slightly prospects exponentially are to of in marketplaces fundamentals grew business from are but The our for syndicated were the as Our QX of we and marketplaces, over to the XXXX back in down strong

and believe marketplaces moderate environment our in sequential year-over-year. For strong continue for the year, to operated to grow growth expect allow macroeconomic marketplaces, we better at performance our and will a double-digit owned full rates we

year. QX, $XX represents In of XX.X% $XX.X revenue XX.X% compared revenue margin or of which last million million, was media to

improved We marketplaces. new see margin as revenue business, that are a our to media of growth percentage despite which of revenue decreased in the performance the highlights pleased

our our and note, in year-over-year. $XXX,XXX, during reduction our QX XXXX to first severance restructuring QX This $XX of expenses align other On QX million a a aggregate $XXX,XXX operating quarter force GAAP structure. includes $X.X for operating related the a and costs better were respectively. include severance XXXX cost basis, to in and decrease expenses million, Of

accrued and the North X related for True compensation XX, the an XXXX. March X XX, the acquisitions expense includes in to months quarter March months [indiscernible] for ended Winopoly ended the of also $XXX,XXX $XXX,XXX G&A XXXX,

million $X.X costs. includes litigation also related XXXX and QX other of

excluded costs the these are our normal EBITDA from of business of All adjusted thus, and fall course outside calculation. of

$XXX,XXX. Our or sales, of $XXX,XXX QX adjusted a X% of year-over-year EBITDA was increase

income net the cannot company or or in due as to push significance into margin of digits. benefit in marketplaces performance our expected growth provide high XXXX, to second expense for reconciliation single income EBITDA expect from In a revenue effect, costs we taxes. certain the adjusted XXXX driven percentage new The expenses. the by media timing half a and potential Share-based and unknown of to and net loss operating compensation provision the

higher the to Interest Citizens on $X.X effect million first expense as average to related increased quarter loan the due debt interest from and costs an rates in financing of facility. amortization $XXX,XXX increased term to of Citizens our

per income year. $X.X a quarter, loss For of loss measure We to first equivalent our $XXX,XXX, up net of adjusted X.X% last $X.XX effective expense tax an the a of $XXX,XXX non-GAAP rate $X.X effective XX.X% to and an net in of million, tax loss, of tax the an rate reported share. from million increased quarter

million Moving equivalents. to XX, to slight Total XX, million, the sheet at and the representing in debt December the a We XXXX. increase with cash balance the quarter balance was reflected million as cash as March on as XXXX, $XX $XX.X sheet. $XX.X balance compared from of ended

principal our the on credit opening Bank. repay a credit facility prior X, with revolving April balance we of reminder, proceeds credit and $XX Citizens for a As loan up used $XX.X an facility million entered matures Solution with into facility X, on that a credit $XX to we of SLR Credit million The million of and had XXXX. that SLR April to term $XX outstanding provides agreement a million,

on a agreement. confidence from XX, of the In credit our as financing $XX was strategic negative presentation $XX.X minus and the and This the equity potential quarter at at a our SLR as the reflects largest additional represents $XX liabilities, Working balance to as December decline our just strategy. financial assets current due credit end. entire $X.X million to current, from capital, noncompliance our current including CEO. pivot dependence closed our during defined founders, shareholder addition, we our and related in facility million our The liquidity covenant investors, million reduces million XXXX, under debt required

XXXX. development invested million capitalized $X.X in into $X.X million compared as to product we QX QX, and technology In

As team that confident appreciate we the XXXX stabilization clients support. We grow management we new look opportunities. We're that owned operated with benefit provide long-term on our beyond. ongoing produce and customer marketplaces will focus marketplaces, while performance strategy into of continues growth high-quality and XXXX, the to syndicated financial to acquisition substantial our in the our continue your

be questions take happy this at will to time. We

Operator

Instructions] [Operator from the Ripps Canaccord. question comes Our line Maria first of with

Maria Ripps

First, forward? of been couple sort seems sort the your do of wanted in of the current going pretty part margin emerging media But of think I how anticipate revenue levels? like you from quarters expansion your you businesses. a improvement further to levers margins, kind of of big ask sort have from just despite should strong And that maybe investors about last some about of the coming softness, of media growth which is it

Donald Patrick

Great. the question, Thanks for Maria.

looking you're pieces X here. there's when margin, sort are media So in that at of play

by little just margins profit more First in new and is the we've new the third specifically, play and gross all performance operated piece, performance the the talked new marketplaces. marketplaces. these have about will up higher that made being profit up our the bit -- seasonality gross then into the own marketplaces decline that are a for making margin, it's which and have QX, and of QX of into the is partially decline And revenue, business. And

on in ticketing bit [indiscernible] and second to the low and on based the And low be care. to they're -- tends QX. retail tends back health QX to more tend they They're a So half. little [indiscernible] be bounces QX

in QX seasonality based QX, So just in those continue in equal QX on year, the compared those X down the trends, of GP this we back those in see new to -- half X our probably slightly of to marketplaces. increase

Maria Ripps

about vertical, there how for any are within maybe to And or have is talk or the of performance able of gaming be on this important then of serve maybe And the products you that some maybe vertical? advertisers base? broadly, revenue can you sort working just sort ad given of your better to functionality new that more their

Donald Patrick

Great Maria. question,

So our gaming vertical largest by continues to be far.

and it our demand and remember, you part in clients able pulled guys we replace If go. year, were of beginning largest of we to last as QX that back keep steady one also

X the the vertical revenue been couple over solid the growth us vertical be ad for has it been change at very to return for they're basically on bit but tend So little has spend, based on continues last top quarters. The whether on strong and list a the margin to same revenue a over more players rate of or on leaning that into us.

specifically on [indiscernible] specifically We products, working been have ad both syndicated.

around gaming. of syndicated Some the marketplaces performance

marketplaces we that the expect continue other to We that also been have into in-app in really out. And we've been pushing solution doing that serve the market. to demand some things roll to

Operator

Research. question line comes the of Barrington from with next Goss Jim Our

James Goss

-- media had given I'm a and somewhat. would which like nature been intense. it are wars that of be, And vertical seems deemphasized important streaming pretty has I'm the wondering the been pretty why curious entertainment, if that

Donald Patrick

to gaming, Thanks for things had the -- as media And scales, et out entertainment. streaming number we the when as started Jim. In we break verticals, that past, in a between question, out of and those broke things we services, those cetera.

is, with the in the business growth there's not in health on very and our it we're retention the in acquisition. on vertical-specific. that out subscription a focusing I Year-over-year, broader mentioned retail. ROAs Jim is been still loyalty of really just of growth, And over but be in couple and based flat. question and we part now Gaming in in as category basically breaking on context, lump strong streaming importance brand much hadn't before, Maria's and around they're just was services years focused be now So ago, that. Overall, of on so weakness and that might some things a

James Goss

marketplace, reducing And talk of just when you would place? frame and process the the and more time sort you a little sites execution describe take about favor syndicated talk about operated how of the owned could in and on the emphasis that

Donald Patrick

on years. of is you Well, been business, Jim marketplaces, and it with for foundational still operating an as our competitive to us has XX know, them. a very distinct us piece It for has build off advantages

talked So those new the about. fact we performance that critical is we marketplaces have into in that of launching terms us that syndicated

have Basically, the and doing into we've owned those what around operated across capabilities marketplaces. launching or that the our the demand been and technology is and syndicated -- analytics developed leveraging we data stack them either or

capabilities to could scale and quite these over built if the go leveraging than honestly, were into we rate we a move at much, ourselves. we've us we're allow faster that years So launching that much faster

in doing where you more the new guys that have of Over back last We've started based performance it plays. couple the business marketplaces. of headcount. across some it We've geared we solutions. towards those on count been all have been brought done of performance years, head in advertising our business And count what consolidating that very and our the -- measured of and a way then we head have reduced we seen changing

great beyond owned much which And call into AdFlow AdFlow -- solution into offer health. and solutions we to go to we broader purpose operated and now have brands our our work a and and and with these so set modules that out things

that advantages as of and foundational gradual scale that transition competencies a everything we have. of owned But those it's and been over a sort starts So businesses. piece with couple of operated competitive we last the years

James Goss

transition? shift based Are metrics that there on will certain this adjust and financial

Donald Patrick

Good question.

pointed marketplace in is, the and the this of owned as operated year. out, we second which, as X is see half Jim. stabilizes, You'll One things,

growth to growth performance based start see the You'll in the the new revenue on marketplaces. return

down So performance down and our at that a operating marketplaces to close say are when are and XX.X%, deeper lower the owned marketplaces we aggressively just pace. we're obviously, growing

So be then you'll continue that you'll overall in second start to the And the to in shift margin to growth half for Fluent. revenue see see improvement.

margins All start time. core, our margins of expansion these you'll the to at than margin marketplaces -- at see same and higher syndicated

James Goss

tell equity Did The affected? last was the you how the million the is [indiscernible] was What Could investment? of nature investment. that question $XX me you

Ryan Perfit

Perfit. Ryan of them with $X.XXX Yes. approval This in $X.XX prefunded Jim, a price a purchase at million shareholder private sold placement expected is a individuals. warrants, will is each. this We of X July. There be

Operator

[Operator Instructions] line of from Tieton with the Our next Dezellem question comes Management. Bill Capital

William Dezellem

surprisingly I came so, if you in we off-line. was the up with of margin X% first some down. late, and would are know I so of just discuss questions And that the like these all, how a let if repeats. talk can favorable seems mean, revenues I outcome. media me apologize But being please

Donald Patrick

question. being numbers Thanks that things Bill. about Hi, up all touch purpose revenue owner-operated core. for XX% than right now, marketplaces by call are talk and growth -- new We AdFlow, as made our those the basically the XX.X% the the on profit marketplaces But greater the partially gross that health. the sort new and playing declining margins we that on are have in into than did marketplaces X the higher -- of like solutions performance the performance

a operated owned fast a margin, margins as in it's though and we able over business mix in ago. the of keep much margins up the growing because as decline year even flat higher were at not to the -- QX, So

William Dezellem

most a specifically? in it's mix essence, So phenomenon

Donald Patrick

in our advantage a second us the now right are That's marketplaces we business core. big seasonal right. the which more especially than half performance because believe be to will new mix, The

you'll the that So in second half. accelerate see

William Dezellem

would, if about us, new to that are are seeing talk the initiatives that you signs you the working. And please,

You've rapidly. mentioned they're base. off growing But that's presumably, smaller that a

here. but there's -- are points that the some So data probably longer-term implications relevant to

Donald Patrick

Sure.

to So everything and I'll down what And as focus you to brands with. mostly, they interact Bill, choose on comes external. the know,

board what asking great narrow a had more the coming in on important, up have equally do with and They're us We is. brought this performance to I solution way. marketplace success very brands and currently just than those in

until transaction. on about was AdFlow quarter a example, focused XXX% For ago post

most you consumer So after ad ad module, you get to on purchase before then serve something confirmation the page, a site. that commerce relevant the our

engagement same are technology help bring site. retention across being help We commerce and that in the asked into now the demand to use same loyalty, and

important their release page So are -- us opportunity that with getting commerce some speaking, it's and And them. the terms how the the intent gave stats in in and and just this obviously, drive -- in their the them brands their big how growing. media more help pretty is business in of market aggressively wallet we into earnings for a

sitting So at with in that right right of the time I place the tailwinds lot we're think from a market.

to have revenue that cost metrics. those and fortunate look to enough brand leaning we metrics terms probably how the So or get are pretty in metrics we or -- clear much internal the we make moving model to exceeding what engagement it a of that sure to ultimately, to of need operating winning after, Internally, running side and we number minute-by-minute to those at what's and metrics. brand. metrics basis there's new how towards comes from then in lots get right on based a Bill, on we're either very We're us scale, a do the go or

William Dezellem

the doing please? me into dive expense severance let . ask about what in scenes you us and there, the behind the that? Would quarter, the so Help $XXX,XXX. you're And restructuring understand

Ryan Perfit

is where a around and essentially making Bill, we this it Ryan in happened are in investments. force our January, reduction Perfit. That was aligned

taking owned building So as from marketplaces. resources by Don, previously kind and away syndicated focus the we of operated as performance out on mentioned

William Dezellem

reduction a with in not these no, new force marketplaces? performance so And there was

Donald Patrick

new Bill. a no, was one, [indiscernible]

William Dezellem

tax that even were actually a What pretax $XXX,XXX led dynamics of had or that? the income loss. then to paid had tax, income you you And though

Ryan Perfit

and had tax the our Last There's -- an income our research tax credits goodwill development go that. Obviously, tax on a to of lot into of income credits. than our we is and year, from Q. impairment pieces than different

of things as X level number income XX% XX.X%, it a that this were to year still pushed the down nearly rate. to we're compared last year. But there at below So our for

William Dezellem

have me then time a to more? for do we do couple And

Donald Patrick

Sure.

William Dezellem

So the of settlement. have following in were and FTC or more operated market in been you less compliance first fourth referenced to guidelines competitors earlier here guess, them there I have not rules your Has been quarter any first they the after all, change, compliance your the that owned following after quarter? either relative the or

Donald Patrick

I couple just Yes. not of One things. know, is, and everything -- to has marketplaces. qualify It of first operated marketplace, a performance would to as all, our our the has. own compliance with do new you

everything So that how this out at into issue. in, about we leaning saw FTC compliance what in find practices the could and new agreed levels. that we to saw in we we people new guidelines figure settled best saw And work never we our We talked and and the to, was them putting leaning when not what leaning our really secondly, was it's settlement that our to competitors out marketplace, rules in to we the them our performance competitors the -- in way. May they saw adopt around

wasn't adopted a took and they it -- back. they much So took so step

And And term part to creates towards is them compliance. their very a We more last they think back clear the economically is. to headwinds action. competitors we finance run to beginning we've lack the make revert the to for opportunity guesses that have, have. it FTC through the it, can business industry on the year, why that believe, short rather I we of Part of in X X seen incentive second there's months towards noncompliant [indiscernible] than of behavior. is over But financial the of -- actually further the

don't by We FTC term, So moving industry in up a federal been us, commitment we've will take to the back by but that did the state when X levels -- that back in months. did unwavering and to keep or to not quality. or move thought X will But the we drive our be industry people and underestimate regulators that the either towards the we in position over we great our market know expect we accelerate last we share. long to

William Dezellem

of because any less hand increased heard more they be that to some ignorance comments you have they then and then backwards. were they actually towards compliance out and ultimately Commission that become compliance cannot move behavior their referencing trying because Don, that demonstrate the bad capable Federal the essentially that firms guidelines Trade with claim went showed

And so lack even that Have favorably. ultimately, anything the of that heard FTC you views that? less like compliance

Donald Patrick

them wrong for time anymore So the years, we with obviously are talked from way, inquiry in we're the because all don't happy a really a don't we're that take mode. this FTC hear we day. them X we every but much And We're mode we now. -- to in not pretty reporting

context. more So to [indiscernible] commitment our contact that reporting on it's we the is in deal with directly, news obviously, the our good

So to why the business you do this spotlights inquiry, you, but size, perspective, when them. economic if right there makes around were did through no see not say I trying harder it going they Bill, can was was I for lack imagine if settlement then was thing. would be harder there okay, that a much -- It we and with us, there And an will this on, you you did discussion of was it and of sense. and in from everything theory, much tell do way? And lot

William Dezellem

to fascinating be unfold. that will It watch

quarter XX.X%, that even up though seasonally media it fourth $XX.X So the from the lower quarter, QX at in relative first versus was to and was your slightly are the million revenues margin fourth quarter.

those that question, mix as would referenced referenced the Now you've also performance you to there's my before this. the maybe in grown. work I response against marketplaces that marketplaces But know performance first -- seasonality have with

percentage address basis in you media bit margin detail? a that can sequential -- a So on more margin

Donald Patrick

good business investing These technology AdFlow been has scaling, still and -- in scaling businesses It the we've very been especially is question. always are the and analytics.

what So a big increase not even -- volume. though in only in QX is is a there -- seeing big you're

in QX, increase they revenue has even gone Our ability session down. call to what continued though gain to the volume per has

the have monetization as you're from with partners. you is seeing we know, this is the So our which share business good news, the -- revenue model increase, a

successful more also. more the make more we -- our are So they partners make, the

So it's around really improving the margin of and the that monetization business.

William Dezellem

when picks have the the that seasonal up? favorable in should for the half implications of So revenue strength very the year second

James Goss

Yes, absolutely.

William Dezellem

That also then. are how it is you viewing

Operator

I'm would no closing in further over questions to you. I like the call to showing queue. Thank remarks. turn Don back the for now

Donald Patrick

leveraging steadfast Thank performance to competitive joining that adjacent earnings. to support, shareholder remain and Fluent's also pivot, will your our equity look update you for you do an high-growth, launch our QX. you after and marketplaces, Thank we and We in forward marketplaces advantage our continued strategic for QX create and enhance XXXX own value. giving brand operated high-margin

Operator

and that you participation. today's your concludes Thank conference for gentlemen, Ladies call.

disconnect. may You now

Fluent (FLNT) 15 May 242024 Q1 Earnings call transcript