FLNT - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome. Thank you for joining us to discuss Fluent's Fourth Quarter and Year-end 2024 Earnings Results. With me today are Fluent's Chief Executive Officer, Don Patrick; Chief Financial Officer, Ryan Perfit; and Chief Strategy Officer, Ryan Schulke.

Our call today will begin with comments from Don and Ryan Perfit, followed by a question-and-answer session.

I would like to remind you that the call is being webcast live and recorded.

slide via accompanies also the Fluent's a can remarks, available is website. accessed be webcast there presentation today's that which on Additionally, and is the also of made event replay Fluent's will A available the following call on website. be please and at To Investor the station, the Relations visit access webcast page www.fluentco.com.

statements during the associated uncertainties or due could from Litigation forward-looking to made speak the I the statements this as Act and stated date contain certain differ forward-looking with Reform call covered of listeners under information Private the those conference implied only discussed we begin, forward-looking risks advise this will information results Before by expects, by may company's harbor with call projects, to similar The of such company plans, undertakes words uncertainties quarterly such you report provisions the for Form hereof. risks could, business. the and safe and Securities would Actual to like Any will, statements the on XXXX. that management during filings of with statements materially be recent words Form on obligation Commission, to of identified and and other a company's on encourage Fluent's Exchange business, company's discussion meaning. Securities annual provided by no including XX-K review the of associated this call as estimates, XX-Q. reports we update most These

a the GAAP earnings measure of The these are Management non-GAAP the including on will provided indicators, certain EBITDA the also financial management the issued adjusted margin, metrics call, most present today. of press and company's financial earlier release and metrics. evaluates of relating the the variety income. to financial reconciliations information in non-GAAP adjusted comparable During media performance net business directly definition to these

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

Donald Patrick

our Chief Co-Founder; I'm call Perfit, Financial with Chief our you and Good Officer company our morning. joining for and here Strategy Thank today. together all Ryan Schulke, Ryan Officer.

rapidly is media commitment Our We confident in 'XX, Media XXX% we the quarter QX our achieved focus growing revenue to compared commerce reinforce to why Commerce are in XXX% year. for the full industry. growth Solutions in fourth the strategic key in win to and growth

of XX, an surpassed our annual Solutions And As press run our $XX explained from earnings Media model grow calculated $XX Commerce XXXX. in as million September our XXXX, of December excess in business as million, market we rate revenue release up share. XX, to continue and expand at

this will that confident are momentum continue. We

strong expect continuing We year-over-year XXXX. revenue triple-digit throughout growth

been In brands leading major several as our pipeline driver this partners we our into our has during of year, of the and The significantly fiscal continue the see more growing XXXX, brands and in key with list growth move partnerships fiscal key announced join of that proposition XXXX. advertisers. we value roster to with

strategic strategic plan focus Of in to to human strong where grounded triple-digit consolidated year-over-year Solutions, in shifting we've and our business That business. tremendous competitive invested our building is margins growth substantiated every XXXX. and with big. and the the our Media financial brand to Our win in Commerce business resources marketplace, equity mix our post-transaction has to of we significance accretive value are providing are by advertisers our that revenue partners, affluent quarter differentiator, consumers,

which we're year throughout comes we've strategy on while performance an fiscal in every are with And that winning financial confident path, sustainable XXXX. our a we recognized cost, investment

focus operated properties in also of to owned invested we growing longer on a larger we've path businesses on Solutions, As in that our we the targeted strategically and fewer Commerce find contracting parallel compelling nucleus Media term.

media we advertising buy market-based by negatively media social platforms. can The biddable which the against margins revenue affected the ability presidential election, impacted significant U.S. in our owned on margins. businesses costs spend driver strengthen ultimately acceptable position operated and were significantly to increases stabilize by and media to continue we QX as the driven grow, And enormous and at key was our here media

So XXXX on Still, came to we post-election. level no than position levels operated and until still traditional see pricing a we maintain competitive our back as not access market, that chase effective, our to required investment But this those marketplace, profitability provides make higher based to us media in a has our future. more is and quality capabilities cost at owned this set. consciously client of volume leadership we and unique bring and any market that us efficient in in credibility and mistake, chose we

repositioning, government this adjusted EBITDA to caused marketplace, Furthermore, in in broader made companies million necessitated to the response in nonrecurring as ACA business. portion accounts activity fraudulent for to write-down of Call In Solutions a our our of part adjustments ACA insurance widespread receivable. by quarter. the strategic change revenue $X.X of we of the discontinued QX, estimate our This write-down reflect negative be

the said, QX performance being Solutions. this affecting industry-wide particularly a All the was disappointment continued Call issues consolidated

drive strategy However, strategic we see value our effect additional this as pivot having to our to through Commerce on no longer-term Media Solutions.

our in growth, to consolidated return ability year-over-year to profit double-digit growth, in enterprise and our revenue confident are XXXX. margins enhance We

media near clarity billion continues as understand total Group, Consulting to transformative at that the back over a alongside XX% our commerce important X is billion, over As grow of evolve. and estimated billion $XXX enter as media years expected reach significantly all accounting $XX for XXXX, the are a to the next addressable and value market According expands It is over so we pivot industry digital spending of continues we momentum our doing $XX to marketplace. Boston our stand market. strategic how to with to

this high-growth are grounded an leader with upside. explosive as now well we emerging in Importantly, market significant

and whom large to proven growing we we years, this media empower with brands Over in the X and enable a last rapidly our we are have reflection commerce proud of partner. successfully the partners we can participate and adeptly market, that

roster validate are retail, driving of quick-serve and our media companies sample an a the network. like in these our partners of restaurants. and products We're across honored and growth business. working with Partnerships Media verticals, Solutions grocery, diverse including impressive some Here's great ticketing, Commerce Fluent's be such media to commerce

goals line build to for revenue more maximize partners, consistent Our conversion our we consumers. high-quality our are for rate meaningful, for experiences advertisers opportunities increase and aim as

and And certainly To delivered line revenue, XXXX, Solutions put trend our segment acquisition healthy is growth expect ongoing we as accounted our as leader shift business year-over-year and Commerce to by triple-digit in Media represented continued contracts establish mutually marketplace, and first-party Commerce via consolidated Commerce and X% operated Solutions in Fluent's growth its XXXX. XX% years embedded in with this beneficial XX% we've agreements since perspective, revenue that Media of in compared power the mix we its quarter. seasonal continue Media of long-term customer to share allows proprietary in That to us for strongest QX consolidated collected where shift growth partners. XX our This commerce inception. well as in owned services a percentage over technology as supported that data AI media revenue

lean revenue percentage operated while as our consumer continue a human as role revenue strategy, play we higher-margin resources to sales of against growth as grows, and decrease platform. our our into our financial engagement a continue vital will Solution will to higher-quality Commerce business, and in place owned as and to advertisers Media continue Accordingly,

Ryan I comparison quarter the our to Media brief a turn Financial of over call I dating to our the Chief Perfit, wanted Commerce provide XXXX. in Officer, Solutions to its of first performance Before launch quarter-by-quarter of back the

margins X, our represent share first consolidated on our graph As launched Slide see growth mix. this exponential since has the demonstrated the continues growing to Commerce obviously improving in of revenue business you gross of the steadily quarter can was Solutions revenue XXXX. in a And segment Media with

flat we we ahead, revenue half see we the seasonality of to in to XXXX, or XXXX, discontinued presently well away the investment from in declines e-commerce year-over-year serve. due that verticals Looking shifted first expect as businesses in the to as revenue related many media primarily consolidated

through by consolidated the in we Fluent strong The Media be the we deliver of on As revenue year, Commerce total in double-digit performance gross in half growth our revenue year-over-year expect corresponding to and expect XXXX, will we year fiscal the second profit. significant driven will progress growth the accelerate impact company segment. as

our operated and marketplaces, and about bullish we've as pivot significant momentum exciting the and advantages owned growing remain We in we large high-growth generated strategic accelerate and media in leverage the industry. our into the of competitive opportunity commerce

higher-quality our proposition we world-class consumer engagement strategic customer Importantly, are funnel. entire delivering acquisition, the across marketing expanding partners beyond to value

As trend line our follow. will believe shareholder value XXXX, in continues we strategic

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

Ryan Perfit

generated of We some provide joining our decrease from you, year quarter a the of today. on Don, results. thanks full year. everyone, in of now Thank for QX fourth us and additional color prior $XX.X million and to I'll XX% XXXX, revenue

we shift advertising opportunity customer Fluent ad on turning to and are focused As a our to this advertisers believe mix as Don significant mentioned spend. intently his in medium and media strategic represents are partners in on more Media. of monetization for Commerce this We our more to revenue dynamic remarks, and maximize return

year over of XXXX, XXXX. year-over-year revenue triple-digit increased Media growth fourth an off Commerce to of $XX.X cap Solutions fourth Media quarter for business. Commerce million In exceptional to XXX% achieved quarter the Solutions this

anticipate over key in increase fiscal totaled the we growth year-over-year year. a expect as the XXXX. For rates Media Media continue XXXX. triple-digit Solutions growth company-wide double-digit of mentioned, $XX.X of for the revenue And through revenue full With driver Don back as year, serving we Solutions Commerce Commerce the year-over-year an that XXX% to million,

mix. the while O&O in O&O the the and portion year this fourth year of mentioned, full Solutions to when owned in continues XXXX. with decrease prior business XX%, and Don we revenue decrease and of a revenue quarter become full year decrease of a XXXX, As Media compared compared saw larger to of overall a revenue to expect revenue operated to from Commerce We in revenue period stabilize, XX%

revenue or year. represents XX.X% $XX.X the in quarter compared was million last margin of of revenue million, $XX.X to Media which fourth XX.X%

million, For the Call low due of of and Solutions margin XXXX, second vertical increased in of in revenues or being revenues XXXX. the the full mentioned million XX.X% with totaled write-off was first compared being insurance ACA year media unrelated health the in of X our quarter particularly function $XX.X Media a XX.X% previously media XXXX, in $XX.X business. margin costs representing revenue the to the fourth of factors,

the million media XXXX, XX.X%, XX.X% or compared compared XX.X% business. revenues Our $X.X fourth with Commerce of XXXX an the quarter Media or revenues Commerce media quarter this margin XXXX. strong million in totaled demonstrating of in $XXX,XXX growth in or with of revenues $X.X or of million annual basis, On fourth Media was Solutions margin in $XX.X of X.X%

recognized of quarter totaled fourth a $XX.X decrease to fourth expenses a GAAP quarter fourth XXXX. the $XX.X the impairment XXXX basis, $XX.X asset operating intangible and million XXXX. in On compared million XXXX total total compared Full quarter of operating totaled expenses quarter or for of of XXXX. $X.X with the no million, of in We XXXX fourth charges goodwill the year million

we million in $XX.X For the charges full year, recognized impairment compared XXXX. with $X.X million goodwill of

we in full assets intangible Additionally, compared year $XXX,XXX recognized of XXXX in of to of intangible impairment XXXX. assets no impairment

Adjusted quarter EBITDA of fourth of XXXX million EBITDA XXXX. of compared the $X.X with negative million was positive in a fourth $X.X the adjusted in quarter

quarter. the his receivable million, $X.X which of the of of into EBITDA remarks, compared million of draw adjusted write-off adjusted XXXX. accounts an $X.X in $X.X an territory EBITDA for equal was we revenue Adjusted negative negative in with million stated year Don ACA-related for full recorded offset EBITDA As and

to continue time. we expect drive Solutions, over we Media EBITDA As mix in on focus revenue to adjusted our margin shift to improve Commerce

year to cannot a and expenses, compared from primarily our from compensation benefit to with net with in expense expense taxes. term net The interest timing potential million on Interest period. fourth and and provision term reconciliation of XXXX, income operating the or SLR certain our as due revenue effect, Citizens expected to of income Bank due for company prior average $X percentage a quarter the loan rate to increased loan provide the in loss unknown significance costs for to $XXX,XXX, the share-based higher or a

year, interest compared $X.X full expense million the For with was million XXXX. $X.X in

benefit X.X% In tax full income of fourth an in $X.X tax tax and $X.X tax We an XXXX. to adjusted compared $X.X of recognized to net tax of XXXX. quarter loss $X.XX benefit quarter million and $XXX,XXX a with the we income recognized $XXX,XXX loss in reported per benefit net $X.X million loss year of million and rate income net an of in of million quarter of effective of adjusted of fourth the income the $XXX,XXX measure effective compared the a share rate of period, $X.XX the $X.X X.X%. benefit prior quarter We the year, tax loss an of net with per of loss, fourth an or million non-GAAP of compared a share equivalent in loss in to a of compared

net For net reported year or with $XX.X $XX.X the net full compared loss of adjusted share loss compared we a share, per of in the net or per of full million a of and $X.XX adjusted million of an in XXXX million of year, loss $XX.X loss loss a $X.XX with million $X.X XXXX. loss of

net charges in XXXX full included this impairment goodwill income which $XX of Importantly, the approximately significantly year of period. impacted million,

balance million Total $XX.X $XX.X million, XX, the Shifting and in ended cash. as than our of debt was the balance including quarter as $X.X higher cash cash XX, million with We equivalents, $XX.X at on restricted XXXX. December now sheet December million reflected XXXX, to sheet. the

term As XXXX, and had of an to $XX provides with This million of facility that matures credit outstanding on facility principal December million XXXX. revolving a a loan April us we $XX balance $XX.X Solutions. on up of SLR credit with XX, facility X, Credit our million

shift very our for We're pleased our ongoing results and the been Commerce the business quarters that Media the now. XXXX, strategic with several growth past driving reflect of we've in

leading To commerce market brands XXXX, Looking and call strategic a earlier to this, media into pivot grow space. entering execution partners, advertising on provider in our this our Media of the Commerce partnerships services ahead we're and with as which enhance detailed is Solutions. to media products we to our continued and the credibility Fluent's in focus leading do recognition of

Adrian development to extensive We're experience the to the to talent the and space, our Subsequent the further as him quarter also commerce media Product bringing close Officer. announced on team. Chief we leading of in and thrilled and our to year, the of product industry has Fluent new Stack the goals. are help fiscal us we addition Adrian welcome leadership

we revenue Solutions. margin As success to by drive and the we our expansion metrics that and enhanced execute positioning underscored Media this we're growth, strategy, profitability on growth Fluent believe of Commerce

be take this that, we'll time. at With happy to questions

Operator

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

Maria Ripps

year. First, so you scale nicely pretty your CMS last revenue

of run think to that has what's over reached growth guess right the going rate, the of pace it million forward. now I So way $XX about sort

And in you about broadly, but when necessary more you the partnerships, or talk to business have building what infrastructure are so drivers And maybe scale key blocks do place further? this from the here?

Donald Patrick

for Maria, thanks your question.

So I'll revenue. the around of your CMS questions couple in different hit things a

So within say, we in quarter really that it as competitive And you business strong operated XXXX. and this I'll owned built have started know, we first the off the the, assets we business.

data a built were we a from et perspective, We had So perspective, that foundation cetera. over technology years. building XX off

So our pipeline growing aggressively. is

continue at that we we see that see we continuing XXXX. can actually the a on visibility in XXXX, do and and in triple-digit can see numbers, You rate

as one commerce XX those the one, is of know, to last drivers: transformational in changes digital you primary advertising media years. Two

out get and accelerate where competition there's starting brand superior lot here participate in So in our and second the we advantages. to drive results now building commerce on is where competitive our are in a in to media; And that of they're our and we are brands to and market based partners been have building to the ability are. greenfield coming the coming

do business to more we visibility, part our start have things media numbers So see came It are does commerce on do of why X we talk in really about model. QX to we confident. and that's that out because the to

within retail more is look on business first based we The media and we model the our obviously, verticals changing that seasonal serve that one commerce is it's at the side obviously quarter-to-quarter. how and

We're media rev transaction important it's in more a embedding their favorable they're is and valuable, the getting our more and technology share. very the predictable all post-transaction is environment, partners' We're But commerce revenue piece websites. that it's more onto right? our that getting

Fluent more legacy to operated much So and relative of predictable. compared owned business is and the

visibility have in we of So great how grow to that. terms

how asked a question infrastructure building and partners. and You blocks around the

So I'll infrastructure. hit the

off the at a leveraging to of equally from perspective. We've built as and from has the a marketing been media both marketing cultural we on important data are our bear We new to partners consumers We Fluent it own perspective, technology them, what have to great interacting but bringing we're and our sort core tons a and that of come of with data and side. leverage, commerce first-party for company.

business, X financial analytics in to that questions, years Commerce operated those we those the able for grows, easier. see infrastructure, and in our heavy more technology core Did a last specifically be 'XX we revenue So Maria? as on investment a out the side I seen Or... the -- And numbers expenses, grow owned business. comes build business the it you've answer and much it's as and this Media And our investments 'XX was in. we'll versus your the the all to much manage to

Maria Ripps

That's and as $XXX that portion it Yes. you helpful. maybe to your very I some more of durable. growth? a generated segment in that little And relates O&O segment stabilizing there that thoughts on guess, And a I last the then is are or revenue perhaps of returning guess, that's year what parts segment, million it to your

Donald Patrick

Yes.

how assets. don't at growing a competitive And just we do engine, really but So not for -- do those look growth and Maria. advantage again, it us, and we we we as how huge we as it look stabilize we've it again, talked, it's is a that leverage do at

we the couple years in the headwinds primarily towards we the do where do of important, continued equally has allocate through talked move people it's And So and opportunity because the capital it there. of at some media the regulatory we've commerce about priorities. move with to But length of invest changes there. our that to and around past side

advantage. side. flat context So has competitive we lower the percentage, the commerce will that media on we win or been big a in huge if keep really it It's keep business. around a that our And it we decline

Operator

Our with Research. Sholl next Barrington Patrick question comes from

Patrick Sholl

away side, on call O&O the Kind within of centers or on I the following you're you like if O&O stepping call include ACA segment just marketplace. center the business. that? And up guess, Do the from

about scale within you you where business? can that of just have So maybe kind else talk

Donald Patrick

thanks Pat, Sure. for the question.

do we business. call no, center So the not O&O include in

in outlined look we've and As the where as our O&O then Commerce agency Call Media the earnings that at agency we now services last Solutions that's under call, line. Solutions, services business business marketplace,

our to Pat, the size and life health while, been marketplace Call the Just us through strategically, because Solutions consumers to O&O back, expands allows you've with agent higher to live like home know I and direct take categories consideration higher but a capabilities of step value, for a it Fluent services.

to continue the the that the for proposition leads and that's performer going that a to providers, do that consistent, bringing steady in value been same where on really business. has O&O we're ACA we us. also company. grow health Medicare primarily care marketplaces, of terms connect insurance very in And it aggregators So consumers are to historically, in And to quality

FCC And demand we from So obviously, in changes out that XXXX, taking shift boules. our through. and a CMS are market way with came it's warm new clients in changing, our from we to the first steady transfers been one taking have that -- the was happened that our the There's sweeping the to X in performer. caused regulations been working huge

drive we're media in continued inbound QX, QX and in were in did It's those We the So margin business, media shift the able QX the us challenges business. we elevated QX, costs. have that to we in media in that in cause significant costs, buying level drive did. fact of make cost to to but successfully on that that

partners plan We to in work we that demand going the to of around drive work high-quality continue and high-quality forward. for place It's a very that but us quarters diversifying in consumer that. have the us good be to with a to through. couple take business the

Patrick Sholl

on Commerce necessarily to softness to Okay. Commerce that. the scale mentioned data O&O had continuing And that ability I I'm sort bolster side an then continued where in that kind curious that data enough Solutions, of wouldn't And the the in think inflection risk be like kind Media like where business? of in you to O&O. Media you side? support have with on the O&O to of of you're the any the leverage grow weakness Commerce Is just have that kind Media limits side able

Donald Patrick

Yes. Yes.

daily the So as was is The comes -- you're absolutely have and repositioned things than the basis in data on of XXX obviously rather incredibly right. in is XX growth coming and the of side campaigns in million consumers we breadth large less and focused Obviously, around quality O&O past. first-party on really the database we've side. and that than that terms over it addresses data But unique and years like to that. e-mail deep incredibly a

and So Commerce traffic O&O coming to very and for the continues our the smaller be that fresh on even relevant with data us Media. for consumers

question, that get in Commerce significant Media of things And this there's we year, half seasonality seeing: second we're one I think is in Solutions. the X big second that business your model

on So to we that growth think in drive and is across media are the And we're that where that wins we double-digit that consolidated growth return Fluent. will growth, in I we commerce we half see the see of will growth that inflection based second platform. the double-digit side point where the the getting

Operator

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

William Dezellem

size both business, in also but the relative that pipeline relative expand have currently the terms please pipeline prospects of you that comment to your board? customers size the the further on opening of terms you of of Commerce on in in those the Would number of in a remarks Media to prospects,

Donald Patrick

Thanks, Bill. Thanks the for question.

the headwinds that very results brand driving the bit industry and a transformative building fact our our fact also better little tailwinds. that of successfully -- lot are just a with continues to based was fantastic Maria, we by of I grow around lot sitting of a very, the into a talking industry, obviously So the we're in middle on pipeline with

the that provide triple-digit a continues pace for great to growth visibility XXXX. pipeline So business to grow that rate for in of at us

to in wins case So we're land the brands, to able perspective, vertical and -- these marketing new continue the verticals, with to these from great sales -- accelerate materials studies and side. as obviously that a we great marketing penetrate

So the commitment it pipeline significant is in we've fantastic that and for size is momentum us made to of our deliver growth. on terms in

Bill. we consumers on there's -- from based rate a don't millions But and large smaller that of large partners have the positioned. size, that we're that breadth that pipeline come could Regarding we've our factor with. -- or hundreds growth that there some there's don't that that that ones ones different how some accelerate midst pipeline We -- obviously in that those are forecast. that in. manage segment do a We that brands -- the our of of size we're that. can we have business, factor that transformative very work We There's and the into will discussing have into

plan -- not around accelerate and not our results us that business big that strategic those partners, revenue pleased But transformational we grow deals. we're and our brand by we build partnerships would been for that do business our out with that, could that we we've we our to business drive But run we've be some and for able as build do and laid our you. for that we very

William Dezellem

you is us, would the be to time longer that cycle. quantify what can any way transformative would speaking, a and -- what's line? of Don, sales that Generally please you for larger kind scale leads

something is this next that And happen might nearer term? or so year

Donald Patrick

Yes.

question, Great I hope so. Bill. Okay.

year, An you retail If we could vertical. depends -- look average, mean I'll at a valuable on that with that's verticals a we the partners as in, $X verticals million. take But have size post-transaction sessions average but because $XX work just are that an our million have a partner might we're it very doing right? that lot largest

you the doing range We a have mix multiple of mix our in which So of very clients of also. talking in that The the of valued see $XX the that that's end our the we're are about partners current right? deals transformative and or million, that of $XX range. million kind will portfolio be high

things could we that literally trajectory talking we're if the significantly growth change have. that about So

Regarding but do timing, I'm closed on at be bit take when these guys little we they to the to tell hear times, longer you a going deals. first will of

-- there's obviously, in happen, we think XXXX. that So we pipeline can the in that things

William Dezellem

conversion talk you please And would about Great. your what is.

industry? you've their purchased post-sale won the So the once your the a versus What's conversion and the and rest customer you're ad. of presenting customer has a competition, product rate

Donald Patrick

deck. Obviously, quality competitors. of are competitive We et Disney brands the compared we've Yes. in case of Investor an And the do brands But around our the over some One Apple, connecting to world-class is a cetera. consumers size well, brands pieces the more made public conversions consumers -- this is with that head-to-head don't right? competition we to -- of that consumers to and XX% there's we've or the revenue don't seen we were consumer some to have our valuable this, want than our that the -- were the important connecting up ones is -- that are studies, disclose. Bill, that we're we or that -- like that the the X we of how

ad. is for proposition significant the our and consumers a on higher serve based and and value technology data our that's our So quality identify us right ability to

up provide also we revenue that the we in partner similar On very a uptick have the side, XX%. in the increase in e-commerce over an our partners

uplift competitive head-to-head significant the against we a in our that competition. advantage have So

William Dezellem

maybe your when the would on like necessarily increases is winning that's or large value? at able of them the prospects that anything the chance they're you for basing rest generate about of there decision of Is pipeline deals. part my And seems their mind more but It pipeline. is that of where all it probability not I think different that so about you of not aspect be these the so financial to -- frankly, pipeline your transformative, guess transaction. going really the XX% winning if is those would

Donald Patrick

Right. Yes.

that our there So terms we're things And we've the different verticals, believe obviously, work talked maybe sort we of marketing properties for is We're engagement, to to it retail take about, know to how same Bill. all in results. getting we return. and company for you how go are verticals, doing drive in drive the value and and owned a got how heavily, not But different proposition and audience again, and to XX years, even consumer we've within we of segments operated through to example, the that we of that know where we've fits market. we that answer that sort as and are been

and that, that expertise will DNA owned and enter different operated into. the So we confident that translate in verticals into that we're

our and within confident travel. and example, those will going for vertical -- of are time into but now, partners every we the and types we to are get some results a that not work drive into to believe grow. there So that get DNA little first-party of going that through not presentation, if different we're data we travel we take right in across we've We're to verticals. into, in laid of are out across verticals It's bit those the marketing

William Dezellem

question. helpful. One is additional That

that your the holding half dollars QX QX be next due gross profit been look you about very within a those growing you approximately over business. from clear pressure the seasonality X or dollars is, seasonality would The you Commerce Media in And profit gross question of do as of to total gross came the the course have business. quarters, under coming the all Media profit. percentage see Commerce particularly as the and/or and from Your

Donald Patrick

that that's -- mix Bill, I I ways: understand going business there's different answer -- media. to right, happening business your X the very first, the been question. it we're think I'll around on commerce transparent is mix,

total we of the the continuing increase as percentage value So to business of see Fluent mix that business. a

consistent relatively Media on predictable revenue and margin itself Commerce share business that we continue have. drive will So to based is at the mix the business that

mix the be significant Fluent we'll consistent, the percent more we'll business drive to So continue -- of margin that be see but and overall. of part see margin

William Dezellem

wrapped Commerce in I'm from trying of to QX, or my anticipate And head Media to you the do the get business perspective. around percentage really And that seasonality decrease? specifically, increase

Donald Patrick

Yes. Yes.

So grow increase decline from the QX, The QX. it as we've to talked QX. rates in that sequentially seasonality continue based do revenue about. to to QX will go on of just a that at business will the seasonality. business It's percentage the Commerce the down will overall Media from Fluent QX We

William Dezellem

closing luck large these of prospects. Good some

Operator

call I Don back like over to to any would now the remarks. turn Patrick closing for

Donald Patrick

after growth and through confident QX. Thank commerce performance half continued for for and poised you giving execution we forward your you this breakout in Thank industry, our reinforcing you support, media to growing today. so it the update commitment second call look an to deliver year. strategic of The rapidly to is for we're why joining about key in our headline us leaves win the

Operator

you. Thank for concludes participation. conference. you Thank This your the

You disconnect. may now

Fluent (FLNT) 28 Feb 252024 Q4 Earnings call transcript