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Inuvo Inc (INUV)
:INUV
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Inuvo
(NYSE MKT:INUV)
49Neutral
Positive Factors
Earnings
INUV reported strong 4Q24 results driven by revenue of $26.2M, up 26% year-over-year, and above estimate and consensus.
Product Launch
INUV announced the launch of its self-serve IntentKey platform with an advanced AI agent designed to enable marketers and ad agencies to independently build and activate custom audience models.
Negative Factors
Market Valuation
The stock trades at a 2025 EV/revenue multiple of 0.4x vs. peers trading above 2.0x, and the price target was increased to $1.50.
Stock Performance
Despite record quarterly revenue in 4Q24 and outlook for accelerating revenue growth in 1Q25, INUV shares have underperformed the Russell 2000 year to date, down 45.3% versus a 9.5% decline, respectively.
Inuvo (INUV) vs. S&P 500 (SPY)
Market Cap
$58.01M
Dividend YieldN/A
Average Volume (3M)371.33K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth13.37%
EPS Growth50.36%
CountryUS
Employees82
SectorCommunication Services
Sector Strength82
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.01
Shares Outstanding143,613,040
10 Day Avg. Volume310,498
30 Day Avg. Volume371,330
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.54
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit<0.01
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.75Price Target Upside326.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Inuvo Business Overview & Revenue Model
Company DescriptionInuvo, Inc., a technology company, develops and sells information technology solutions in the United States. The company's platforms identify and message online audiences for various products or services across devices, formats, and channels, including video, mobile, connected TV, linear TV, display, social, search, and native. Its platforms optimizes the purchase and placement of advertising in real time. The company's products and services include ValidClick that provides marketing and advertising services, as well as collection of data, analytics, software, and publishing gets used to align merchant advertising messages with anonymous consumers across various websites online; and IntentKey, an artificial intelligence-based consumer intent recognition system designed to reach targeted mobile and desktop in-market audiences. It also operates a collection of websites under the Bonfire Publishing brand, which creates content across a range of topics, including health, finance, travel, careers, auto, education, and lifestyle categories. The company's marketing channels consist of websites, social media, blogs, public relations, trade shows, and conferences. Inuvo, Inc. was incorporated in 1987 and is headquartered in Little Rock, Arkansas.
How the Company Makes MoneyInuvo generates revenue primarily through its digital advertising platforms, IntentKey and ValidClick. The IntentKey platform utilizes artificial intelligence to analyze consumer intent and deliver more relevant advertisements to targeted audiences, increasing the likelihood of engagement and conversion. ValidClick operates as a pay-per-click network, where advertisers pay Inuvo based on the clicks their ads receive. This performance-based model aligns Inuvo's earnings with the success of its clients' advertising campaigns. Additionally, Inuvo may form partnerships with other technology firms and advertising networks to expand its reach and capabilities, further driving revenue growth.
Inuvo Financial Statement Overview
Summary
Inuvo's financials show a mixed performance. While there is a strong gross margin and revenue growth, the company struggles with operational profitability and negative cash flow from operations. Low leverage provides some financial flexibility.Income Statement
Inuvo has shown a volatile revenue trajectory with a recent 13.37% revenue growth from 2022 to 2023 but a net income that remains negative, indicating ongoing profitability challenges. Gross profit margin is strong at approximately 85.8% in 2023, but the company's EBIT and EBITDA margins are deeply negative, reflecting persistent operational inefficiencies.―
Balance Sheet
Inuvo's balance sheet shows a debt-to-equity ratio of 0.06 in 2023, indicating low leverage, which is positive for financial stability. However, the return on equity is negative due to a continuous net loss, and the equity ratio is 52.48%, suggesting reasonable financial structure but limited profitability.45
Cash Flow
The company has managed to improve its free cash flow position, moving from negative in 2022 to a positive $229,554 in 2023, a significant turnaround. However, the operating cash flow remains negative relative to net income, highlighting challenges in cash generation from core operations.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 83.79T | 73.91M | 75.60M | 59.83M | 44.64M | Gross Profit |
| 71.76T | 63.43M | 45.36M | 43.90M | 36.34M | EBIT |
| -5.51M | -10.39M | -12.65M | -7.77M | -8.05M | EBITDA |
| -2.69M | -7.63M | -10.45M | -4.05M | -3.45M | Net Income Common Stockholders |
| -5.76M | -10.39M | -13.56M | -4.48M | -8.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.46T | 4.44M | 4.46M | 12.40M | 7.89M | Total Assets |
| 32.20M | 32.37M | 35.56M | 44.00M | 35.18M | Total Debt |
| 1.02T | 943.90K | 483.00K | 862.97K | 1.10M | Net Debt |
| -1.44T | -3.50M | -2.45M | -9.61M | -6.79M | Total Liabilities |
| 835.27B | 15.39M | 13.81M | 11.19M | 9.89M | Stockholders Equity |
| 13.47T | 16.98M | 21.75M | 32.81M | 25.29M |
| Cash Flow | Free Cash Flow | |||
| 229.55B | -4.24M | -7.26M | -6.87M | -6.78M | Operating Cash Flow |
| 229.55B | -2.55M | -5.57M | -5.28M | -5.60M | Investing Cash Flow |
| -1.86T | 606.19K | -1.67M | -4.60M | -1.19M | Financing Cash Flow |
| -353.39B | 3.46M | -304.43K | 12.46M | 14.30M |
Inuvo Technical Analysis
Positive
0.41
Price Trends
0.38
Positive
0.43
Negative
0.35
Positive
Market Momentum
<0.01
Negative
58.02
Neutral
40.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INUV, the sentiment is Positive. The current price of 0.41 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.38, and above the 200-day MA of 0.35, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.02 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INUV.
Inuvo Risk Analysis
Inuvo disclosed 20 risk factors in its most recent earnings report. Inuvo reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inuvo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $13.50B | 7.33 | -2.74% | 3.80% | 2.09% | -39.49% | |
53 Neutral | $41.54M | 8.19 | 8.21% | ― | -8.74% | ― | |
49 Neutral | $58.01M | ― | -34.39% | ― | 13.37% | 50.36% | |
46 Neutral | $112.18M | ― | -135.48% | ― | -12.77% | 19.71% | |
41 Neutral | $35.44M | ― | -145.85% | ― | -3.26% | -1829.89% | |
39 Underperform | $47.75M | ― | -98.64% | ― | -14.67% | 59.39% | |
38 Underperform | $57.51M | ― | -14.44% | ― | -3.58% | 50.73% |
* Communication Services Sector Average
Performance Comparison
INUV
Inuvo
0.41
0.10
32.26%
HHS
Harte-Hanks
4.52
-2.55
-36.07%
MCHX
Marchex
1.39
0.11
8.59%
FLNT
Fluent
2.34
-1.67
-41.65%
CDLX
Cardlytics
1.94
-7.18
-78.73%
WIMI
WiMi Hologram Cloud
4.16
-5.14
-55.27%
Inuvo Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: 5.13%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The call reflected a strong positive sentiment with record revenue growth and expansion in key segments, despite challenges with gross margin declines and increased operating expenses. Inuvo's performance exceeded expectations, with continued client retention and acquisition, significant growth in platform and agency segments, and positive client feedback on AI technology. Financial management improvements were noted, although achieving consistent profitability remains a challenge.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Inuvo achieved a 57% year-over-year growth rate, generating $26.7 million in revenue, marking its largest quarter ever. Trailing twelve-month revenue is now $93.5 million, with expectations to exceed $100 million this year.
Platform Segment Expansion
Platform product line grew by 61% year over year, with a 100% increase in campaign volume. Ad impressions grew by 200% for two key clients, and onboarding time for new websites reduced by 50%.
Agencies and Brands Growth
The agencies and brands segment experienced a 31% year-over-year growth rate, with a 23% increase in the client base and 15 clients using the self-serve capability.
Strong Client Retention and Acquisition
80% of clients from Q1 2024 continued into Q1 2025, along with the addition of 20 new clients this year.
Positive Feedback on AI Technology
AI technology showed superior performance with reports of tripling conversions for clients and outperforming other campaigns.
Financial Health and Cash Management
Net loss reduced to $1.3 million compared to $2.1 million the previous year, with adjusted EBITDA nearly breakeven. Effective cash management reduced cash burn by $1 million compared to last year.
Negative Updates
Decline in Gross Margin
Gross margin declined to 79% from 87.7% last year, primarily due to a new campaign with a platform client.
Increased Operating Expenses
Operating expenses rose to $22.9 million from $17 million the previous year, with marketing costs and compensation expenses being significant contributors.
Net Loss and Break-even Challenges
Net loss reported at $1.3 million, with the need for slightly higher revenue ($26 to $27 million per quarter) to achieve breakeven.
Company Guidance
Inuvo, Inc. provided guidance on its financial performance and strategic plans during the First Quarter 2025 Earnings Call. The company reported a record-breaking $26.7 million in revenue for Q1 2025, a 57% increase from the previous year, with expectations to surpass the $100 million revenue mark for the year. Key metrics showed improvement, including adjusted EBITDA and gross profit, which rose by 41% year-over-year. The platform segment saw a 61% increase in revenue, driven by enhanced technological capabilities and a 100% rise in campaign volume. The agencies and brands segment experienced a 31% growth, with a 23% increase in the client base and approximately 20 new clients in 2025. The firm aims to maintain double-digit growth in both segments while managing product margins and cash generation. Inuvo plans to hire additional engineers and data professionals, maintaining a lean workforce of no more than 90 employees. The company also revealed plans for a 10-for-1 reverse stock split to improve share price and market perception, pending shareholder approval.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.