Posted 10/30/2013 09:01 am
Updated 6 months ago
Inuvo Inc. of Conway on Wednesday swung to a profit from a loss in its most recent third quarter, reporting net income of $639,799, up 68 percent from the same quarter last year.
The Internet marketing and technology company, which moved its offices to Conway from New York City earlier this year, reported a net loss of $1.3 million in the third quarter of 2012.
Revenue was $14.5 million, down 6 percent from $15.4 million in 2012.
Earnings per share rose to 3 cents, up from a 6 cents loss in the same quarter last year.
"We had another solid and profitable quarter where sequentially, revenue increased 11 percent, operating expenses decreased 6 percent, net income grew by 68 percent and adjusted EBITDA improved by 72 percent," Inuvo CEO Richard Howe said in a news release.
"These business results build on the momentum started at the beginning of the year and allow us the flexibility to continue to innovate within the markets we serve."
The company also began reporting results for its two operating segments, its "partner network" and its "owned and operated network." The partner network facilitates transactions between advertisers and Inuvo's partners' websites and applications.
The owned and operated network designs, builds and sells consumer websites and applications, and includes Inuvo's Alot websites, its Alot Appbar and its BargainMatch CashBack application.
Inuvo said third-quarter revenue for its partner network reached $10.8 million, up 68 percent from the same quarter last year. Gross profit was $2.7 million, up 237 percent from the same quarter last year.
Third-quarter revenue for Inuvo's owned and operated network was $3.7 million, down 59 percent from the same quarter last year. Gross profit was $3.5 million, down 55 percent from the same quarter last year.
Inuvo attributed to the revenue decline to "a concerted effort to improve the profitability" of its Alot Appbar.
Shifting its primary emphasis from browser toolbars to owned and operated websites is key to the company's strategy for growth and meeting listing standards of the New York Stock Exchange, where it trades under the symbol "INUV." Shares of Inuvo were trading at about $1.72 on Wednesday, up about 2.4 percent.
As Arkansas Business reported in September, Inuvo has been in a pinch with the exchange for much of the last year. In December, Inuvo submitted a plan to meet exchange requirements, which include maintaining certain stockholder equity levels and revenue growth. The exchange approved the plan in February.