Inuvo Reports $2.1M Loss, 75% Jump in Sales in Q1

Inuvo Reports $2.1M Loss, 75% Jump in Sales in Q1
Inuvo CEO Richard Howe (Karen E. Segrave)

Marketing technology provider Inuvo Inc. of Little Rock recently reported that its first-quarter loss was $2.1 million, or 2 cents per share, the same loss it had in the first quarter of 2021.

But Inuvo Chairman and CEO Rich Howe told Arkansas Business in July that his business has prioritized revenue growth over profitability. Indeed, first-quarter revenue for the company(Nasdaq: INUV) was up 75.3% year-over-year, to $18.6 million from $10.6 million in the same period a year ago.

First-quarter revenue from the company’s ValidClick business was up 24%, and revenue from its IntentKey platform was up 280%.

Howe said in a news release, “Our rapid growth has continued … We achieved these results, despite the fact the first half of the year tends to be seasonally weaker, due to media budgeting and advertising cycles, which bodes well for the balance of 2022. At the same time, we continue to diversify our revenues across our growing client base.

“We are on the cusp of a major transformation within the industry, due to new regulatory requirements and privacy concerns, resulting in the inability to utilize third-party cookies and consumer data,” he continued.

Howe said Firefox and Safari had eliminated cookies, while Apple and Google plan to do the same and to eliminate IP address tracking as well, all of which will result in current marketing industry tools becoming “ineffective,” he said.

However, Inuvo’s IntentKey business does not rely on these tools, so the company expects to “establish a dominant market position as a result of the unprecedented changes underway within the industry,” Howe said.

He also said Inuvo has started the second quarter strong and remains on track to achieve positive adjusted EBITDA for the full year. The company has more than $9 million in cash and marketable securities and no debt, so it’s well positioned to fund its own growth and drive value for shareholders that way, Howe concluded.

Operating expenses for the second quarter were $12.1 million, up from $11.8 million for the same quarter of 2021.

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