INUV - Earnings call transcript Q1 2022

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Operator

Good day, and welcome to the Inuvo First Quarter 2022 Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to [Indiscernible], Investor Relations. Please go ahead.

Natalia Velez

Thank you, Operator. everyone. afternoon, good And thank quarter joining XXXX to the today Inuvo first shareholder everyone like us for for I'd update call. Executive will on Chief Officer, Inuvo's Officer, and Howe, Today's Chief Wally Ruiz call. be the presenters your Richard Financial We we filing would and Commission our that Securities anticipate this the also evening. remind with shareholders to Exchange like our XX-Q

in facts relating we I'm forward-looking risks and unable, going to risks statements are harbor future anticipate, used statements. such Inuvo in will, statements actual The call by actual results as the differ begin, Investors they to forward-looking to expressions potential, believe, that safe and such, statements Securities are cautioned materially. XXXX. estimate, subject forward-looking Before which at uncertainties, expect, statements pursuant this project, to that this descriptions Reform not are events. could, from And historical time. are These involve and of statement. anticipated of are should, similar those Act to forward-looking to review the and differ forward-looking this Litigation conference all cause statements are relate uncertainties, as company's When words the may made call, results Inc. intend, Inuvo may all

any upon In with www.sec.gov. hereof that on The addition, in the to described Commission, the or forward-looking date other filings statements can risks commitment statements. circumstances forward-looking facts, be reviewed events, company disclose are Inuvo's U.S. to Exchange public revisions more bear or fully after no which Securities any and makes

ahead, is the turn go I'll to our Richard directly consistent comparison reconciliation believes that With call website. references to comparable additional release of include its non-GAAP measures. such that, on measurement of today's measures Howe. the the company over an now A discussion Please The measures addition, will In Rich. performance. information provides CEO, available in to news GAAP historical today's and non-GAAP most

Richard Howe

everyone XX, thanks another where was and We March Thank for million quarter you, joining we XX% up the in which very XXXX, $XX.X had Natalya, strong ended today. for delivered months year-over-year. us three revenue,

stands quarter. trailing XX%. lines first year-over-year an at the experienced rate Our product growth significant growth in XX-month Both now impressive

and roughly perspective, the the period, XX% respectfully. respectively. the prior period, ValidClick was To the growth With was of revenues current XX% was up and this that XXX% ValidClick put overall and XX% in IntentKey IntentKey roughly In XX% XX%. in split company year and

online ValidClick ads mostly For clients. through those delivers shareholders the are new display solutions media while channels. used Increasingly, two social the IntentKey story, connected our video, television, principally platform joint delivers deliver search to and channels, to and multichannel to platforms

the continuation technology quarter influences in would are quarter Typically with within a associated of which year year-over-year first million yet the half in year intelligence to our sets artificial XXXX. in versus Our less the budgeting leads million, first across advertising coming seasonality another set industry, spending generally the north the the $X have there that of foundation up nicely half April revenues overall second strong continued, second media $XX.X of growth. of channels. Unaudited the strong in Delivering for our decisions is year. for

keeping are concentration and currently million significant we returns Strategically, better serves is service on we change to is open privacy are annual strong healthy demand use for XXXX, a single our change. need total securing was on of XX.X%. This $XXX,XXX. we data remained is quarter in growth behind we margins XX% experiencing, With Web. for The a flat verge privacy. combination balance of billion of loss keep -- the catalysts In the significantly year material EBITDA the steady at the a our internally be target optimize ill Gross the this can the XXXX virtually client. on XX% conference throughout approximately which A competing also aspect concentrated in largest a the in technical over adjusted for be remains have year. The XXXX are financing is of additional our the this what would of first positive plan this improvement marketing. implications roughly ensuing position. the roughly to the reduced QX, year provider Adjusted not that change. market EBITDA year was securities should revenue mentioned prepared means which the was a facility. revenue centered and/or The therefore cornerstone financing consumer an roughly marketing while every on occurs real year-end tell, and market of And issue overall every margins we consumer consumer EBITDA, As The our represented is could our serve call, adjusted almost confused positive marketable in The availability industry. produce across an and our In client revenues. risks. fund on to view of throughout well-positioned stages from brand is securities advertising of XXXX. cash in advertising. adjusted of gross and securities. we in This and permeates experienced and the remains of of sheet worth The not technology approximately the strong of cash, million cash $X final loss data March that also $X.X to marketable marketable about no the $XXX capital. the $X XX, growth spend we EBITDA consequence company million fiscal of is The debt XXXX, and certainly a advertising diminishing be in with of

the also who these when at U.S. what present. precursor behalf significant the ad will share market the purchasing means on largely And within the browsers competitively. to roughly browser of market. of XX% XX% can't now web advantage while our in individual, identify paradigm can't advertisers industry many browsers for individual. content. media Optimizing for an hide is itself technology for change, adopter is Firefox, aren't are performance the cases, is iOS address, by simply you when IP that advertising prior If they our have cases, And This already of decision capture community And Google, can advertising across more can't these ourselves attractive suit. already their suggests XXXX already to reason in encountering post-change advertising about competitors as decisions The about out make the IntentKey an follows prices believe is browsers lack early is this the And clients up control a growth ads the no entirely. educated inventory technologies us occur attach can This ignore still an defaulted eliminated opting they these allows that clients. advertising Safari this are individual. which to cookies. and degradation we turn browsers you the The for identify that to make browsers consumer. longer competitors of bidding ' to our business data to therefore, inventory will taking owns you when means disruption important much playing be market our experiencing in setting to whose upon new their This in roughly again some ignoring of then have we because show period, whether capitalize

ran reporting We for We process the in increasing client the for and key growing we and a now clients. many our nine of clients. the capability has and quarters. custom on while last straight largest product of goals base identified demand continued our dashboard by existing clients quarter, opportunities. XX% first add to rolled new average, to The in performance have the Performance growth campaign date quarter client out an exceeded, over

of insights presenting to rally second our of and One sales easier will a our team in of two intelligence. is being these product succinctly technology that automated challenges the an the the user generated consequence in the in and game-changer We quarter and The delay, COVID. our of graphical we making exposing experienced with company-wide opportunities. audience we quarter, is process head action a potential in artificial for insights in rolling first out had be interface into clients the by groups the visualize as a the hired years, believe sales an AI the ultimately, prospects, first is recently it the fashion

which we is June Our in And now sales new teams conference advertising, for in-person have artificial sponsor Hard once again ever started are hotel on the scheduled attending the our York in Rock intelligence New City. first brand at Xth for more events. premier

our Collectively, browser. date designed company have its Creativity will markets prestigious these the in ahead to when are the been it's awareness Google raise final the of Cannes June. makes XXXX tactics within and invited attending to solutions changes We of the to be Lions our of and Festival also late

first turn Wally the call, overall performance mentioned risen ValidClick. That the in more revenues quarter, quarter. clients like on number was possible of the to now market were and XX% of because the multi-channel many The As meet year-end would clients. are financial to ability the to is generated assessment because we In our provider. where skills has call offered we developed quarter. the to need service XX.X% advertising only a the services of the to product have this have within ValidClick we detailed I for IntentKey now within over of fourth

Wally Ruiz

quarter XXXX. Good you, of afternoon. Rich. I'll recap financial results our of Thank the first

to XX%, revenue year $XX.X quarter Inuvo last Revenue the ValidClick primarily compares platforms, XXXX, year. first by year. XX%, same XX% exceeded exceeded mentioned, XX.X% IntentKey, compared respectively, the was exceeded the between of that to an revenue prior IntentKey customers. in million the in favorably for period split and March to ValidClick due $XX.X increase by first the prior revenue And in quarter of XX% XX%. ended quarter the prior quarter and respectively, the of of million reported year. of last new Rich approximately versus and Both XX, the year As the addition ValidClick of IntentKey current reported period the XXX%, the and

to IntentKey a We total to the grow of revenue percent as revenue. expect continue

Our revenue less before. in was concentrated than ever XXXX

still but first and Our that platform, remains has ended margin. the same and to XX.X% of only year greater as in the past, Google the revenue our a million advertisements important last in ads for serving XX.X%, has our this of same to platform March XXst, as consumer quarter first of The product very the year, payments revenue year. totaled largest represent publishers and website XX% our decreased Google, overall revenue hosted business high total same Gross revenue. period of serve of represented represented XXXX gross net million a for publishers quarter margin year. $X.X ValidClick gross through total percent to In continues of the a largest compared for $X.X to customer, revenue. was compared to platform, IntentKey as total app quarter IntentKey significantly Gross be quarter, yielding of profit than predominantly last Though the was it margins last Inuvo quarters represents a margins client case, percentage lower the The developers marketer. margin. XXXX XX% became Though cost greater revenue. the the smaller in profit the web quarter period current is ValidClick an a as is gross manufacturer today. we The the client, XX% our retail

a market larger revenue that by inventory, was gains predicted IntentKey recognition to IntentKey of information of exchanges revenue supply we to share, cost using and advertisements IntentKey the where provide a predominantly cost is revenue. and advertising it of platform. the percent advertising serve high of This payments the As our serving is payments very at publishers. cost such profitable. acquisition in a comes greater But is cost marketing costs. the more traffic ValidClick to burdened costs. is high publishers gross found that The IntentKey a it of at not time, is by than The same margin access

Many dependent multi-channel gross client. of solution. clients serving media advertising upon channels are the require the Our also a our digital margins

and highly and serve display, TV, channels, supply prescriptive social, channels video, One TV, of Linear ads yield gross such varying Each of across these to multiple on and to demand. have internet mobile, are speaking, time. connected targeted native. advantages mix media clients The we vary as over gardens search from channels, of to the client walled of within vary for can optimization and Generally work the social, large platforms. is our the search, margins ability as depending lower-margin client

margin opportunities expansion We have in better in the other Open channels for Web.

the continue million of Inuvo's of prior employee and due expense will going stock-based million million $XX.X the compared quarter million first $XXX,XXX. ads owned for $X.X marketing and to to are expenses in expenses lower today We higher in increase forward. to quarter the $X.X in Inuvo serving remainder predominantly salary year as first was of expect this operations the in line will an of costs previously were component the the to the and costs websites. mentioned, a in owned be year, traffic we this quarter year, associated year operating a are Marketing million roughly compensation to where The I margins costs. Marketing operated gross marketing of Compensation year to compared costs the last compared to acquisition largest million year. that $X.X $X.X revenue XXXX percent were with in of operated Operating the as quarter. prior Note of properties of $XX.X as decline quarter primarily first costs expense. be in our percent same higher first costs

at in occurred and head full-time year. count account that of last was for sales employment the IntentKey. sales, year. The compares the at in March XX end of the part-time management And this Our March and support, increase XX of of end of majority to the

in in general, $X,XXX March year per The $X.XX of net marketable in expense the million the other expenses or quarter year year with basic the quarter. reported an of $X.X per income approximately for to loss included securities last a totaled the year the administrative quarter anticipated, adjusted year. $X.X a interest was $X.XX to year, As in of was marketable benefit quarter or the of this in this share first the gain million Non-cash had of to flat On this share quarter million selling, loss expense the period EBITDA and one-time quarter quarter million. of remained expense XXst to in same first of first compared compared of The $X.X We last Net ended first prior-year unrealized basic quarter loss $XX,XXX compared $XX,XXX We compared securities. approximately cash $XXX,XXX. year. due income in and last a same $XXX,XXX, other and net loss this cash of had $XXX,XXX last March year. $X of we equivalents year. this

outstanding, which working of And and purchase million XXX.X outstanding, maintain plan, common that's credit shares X.X a we units networking We have no incentive of with capital to in million over and we equity that, through warrants to outstanding capital million. back have the call currently have We a simple Rich. balance. common With addition, to of $XX.X employee structure restricted a like turn XXX,XXX line $X million, stock a stock. an I'd

Richard Howe

the a XX% Thanks, had very Wally. year. XXXX At growth, strong to start year-over-year we

remain over $X unprecedented as share, at Our to north across that within spend rate dominant growth strong. a expect growth of position. stands the revenue trailing we billion rapidly the With XX-month plan $XXX rate to a and April's year-over-year underway Growth open [Indiscernible]. web, also quarter second would this now is to XX%. capitalize in on unaudited million, gain we industry establish change market advertising means annual market With

for We again, proprietary that catalyst fact complemented technology to proven by time market have designed. was transformational superior a technology a in that has time which and be itself

enough as questions. of strong will capital to operator no a to the currently turn accommodate needs Our plans I is growing have raise to balance the immediate business. the over capital. And sheet call working for now we the result,

Operator

Thank Instructions]. you. [Operator

from Our of Vander Jack comes Aarde Group. first question Maxim

Jack Vander Aarde

Thank you On growth any taking referenced calling think you that client renewal. Can and bigger questions. my by C. on being speak budgets. accelerated IntentKey with Jack Jack clients bigger Vander give QX, color Thank I is for this in an you you. rather, on trend Aarde. for Hi, retention and

Richard Howe

million at XXX,XXX we is That the expected a for to to ultimately continues. clients the is Yes, trend now product. mean, which X.X material, we're be up range, where by decides in who I with And month signing which material.

evolution. of part As its

so positive. that's And a big

when lose said the the because who it's lose do rarely we business agency past, almost we've with client. them, lost And in doing were clients. an we we As always

Jack Vander Aarde

was amazing. wondering in I customer you're And I pickup of orders like seem That's -- revenue? 'XX rest Yeah. terms feeling SaaS IntentKey if -- XQ you're was also wondering of new and the of coming kind 'XX. on seeing further any how in

Richard Howe

saw that that, Yeah. north my most notable Clearly, quarter year-over-year year-over-year quarter. demand we of April the in continues the $XX.X within to would to came first of I performance the be pointed you probably the flatten compared out million which the growth you if to for in company. continuing see And that could I think And script, did $X just XXXX. as the that's trend strong be we in million, second by

about So demand the or for I that's best indication the you and adding the can services. give products new clients

there forgive second I've The me. question that forgotten,

Jack Vander Aarde

Yeah. I'm if of the SaaS anything material just the in business? part revenue changes there's wondering

Richard Howe

we the the and couldn't attention our only right XX It's foreseeable XX so be a there. changing believe nothing year-end capability full the slowly. this least growth, there maybe we adding of months I just on focusing the worth see said demand SaaS version much continuation SaaS places so services from the there's lot on we're next a -- call, now and And the at services. here. -- focus that so it's not of can restating for of for it selling coming about there's it's But in No, because we the service we're product. side, majority There's clients demand so of do many something I the

Jack Vander Aarde

ability lot companies to that to seeing you doesn't acquiring any affecting if find It seem be ' are adequate could -- on ask get tech revenues, front with problems of are a struggling you I but guys talent. talent? to And Understood. last one

Richard Howe

teams, with yes, the said, gives team we find marketplace. we're people still suddenly the that data a [Indiscernible] awareness those but market With sales harder as moving marketing we've teams. and hiring. very need labor not where and The the data people engineering And We get we're to more engineers. really now, Don't situation on with as don't right also We're more and solve the hard more to and account and areas That resources of can management are of and probably salaries XX hard engineers. lot place seen sure down way it's works whatnot strong our problem. our news perspective. a component we just us The hire where it slowing is hiring right it's find being decades. on Probably not where more growing science you and hire the talent. in the is the tight got are really science those and still The business, benefits but a some need about all-in and harder overall not good as on in up now, as go-to-market model for we it's and I've bodies need our wrong. me those and nearly they're qualified that

Jack Vander Aarde

and the I back Yes, the queue. hop appreciate that's amazing. in I'll color

Richard Howe

Thank you.

Operator

Kaufman, Nicole question And Black from the Rich next Capital. comes of

Nicole Kaufman

on Thanks and guys. the the congratulations first quarter. strong growth in Hi,

really go as gorilla specifically So in is Google, relates big talk the bit you are companies you which lines, the about XXX-pound And during preparing? the cookies talked call, how those when away? I how space? it along problem it can know the but And about is a to

Richard Howe

and with the it's head the problem Yes. Thank ostrich is a substantial The you, in market like its bit sand. little Nicole.

But CMOs coming. the are and understand that that's we're quite vendors in clients are changes the the agencies to heads that As in that out. of those existing marketplace got don't doesn't very they've seem because marketing them and transformational we of not based we are that large that we believe It on much the And they implications full surmise foundation be to the that's canvas it's of talking that our telling part experience. serving on. situation very because thing understand a case, it a way under very the going does people of fundamentally, the it is reasons which And control, the And the technical attack done. makes is one change.

I clients jump that And then today adopters companies the then, them So to and realize only to it those I part the in do of then in XXXX used does all proof and acceleration even data demand our will we point think expect they the in served address those are IP browser, we of who Google in and we make the we they consumer to cookie change been I than telling guess the what and solution existing early their demand have being because that will when have the they see starting are that give by finally were guess because being at show of shift should something. performance solved; and that can up have providers before degrade expect used. the performs better a increase

Nicole Kaufman

hop in appreciate another have question. I you, I'll color. Thank that the queue I if

Richard Howe

you. Thank

Operator

further [Operator this questions time. No Instructions]. at

Richard Howe

All much, We to right. your very who thank continued today's thank our appreciate interest call. like you joined I'd company. in And everybody Operator. on us Well,

Operator

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

disconnect. now may You

Inuvo (INUV) 12 May 222022 Q1 Earnings call transcript