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Mar 31, 2020
Inuvo Q1 2020 Earnings Report
Inuvo's revenue decreased slightly, but IntentKey revenue saw significant growth, offset by a decline in ValidClick revenue, resulting in a net loss.
Key Takeaways
Inuvo reported a slight decrease in overall revenue for Q1 2020, with total revenue at $14.9 million compared to $15.5 million in the prior year. IntentKey revenue increased by 45%, while ValidClick revenue decreased by 8%. The company experienced a net loss of $2.8 million, compared to a net loss of $2.5 million in the same period of 2019.
Total revenue decreased by 3.4% year-over-year to $14.9 million.
IntentKey revenue increased by 45% year-over-year to $1.9 million.
ValidClick revenue decreased by 8% year-over-year to $13 million.
Net loss increased to $2.8 million, compared to $2.5 million in the prior year.
Forward Guidance
In late April 2020, Inuvo experienced a significant reduction in demand within the ValidClick business and a modest decline in demand within the IntentKey business, which has resulted in a significant reduction in revenue run rate. The Company is monitoring the continued effect of COVID-19 on its business and is focusing its resources on areas expected to have immediate revenue potential and is attempting to reduce expenses where necessary with as little disruption on daily operations as possible.
Challenges Ahead
- Significant reduction in demand within the ValidClick business.
- Modest decline in demand within the IntentKey business.
- Significant reduction in revenue run rate.
- COVID-19 impact on the business.
- Focusing resources on areas with immediate revenue potential.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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