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Sep 30, 2020
Inuvo Q3 2020 Earnings Report
Inuvo's revenue decreased due to COVID-19, but IntentKey revenue increased year-over-year, and sequential growth was observed in both IntentKey and ValidClick platforms.
Key Takeaways
Inuvo reported a revenue of $9.2 million for Q3 2020, a decrease of 33.2% year-over-year, primarily due to the impact of COVID-19. However, IntentKey revenue saw a 16% increase year-over-year. The company experienced sequential growth of 21.4%, with both IntentKey and ValidClick platforms contributing.
Inuvo's Q3 2020 revenue was $9.2 million, down 33.2% year-over-year due to COVID-19.
IntentKey revenue increased by 16% year-over-year.
Sequential growth of 21.4% was driven by both IntentKey and ValidClick platforms.
Inuvo had approximately $9.5 million in cash as of September 30, 2020.
Forward Guidance
Based on the revenue run rate coming out of October, the company expects sequential growth in the fourth quarter between 25% and 40%, which in turn should improve Adjusted EBITDA heading into 2021.
Positive Outlook
- Sequential growth in the fourth quarter between 25% and 40% is expected.
- Adjusted EBITDA is expected to improve heading into 2021.
- Revenue run rate coming out of October is positive.
- ValidClick revenues in October are expected to be up 120% off their May lows.
- Actively recruiting beta clients for a SaaS version of the IntentKey platform.
Challenges Ahead
- COVID-19 continues to impact the business.
- Forecasting remains difficult and unpredictable due to COVID-19.
- Net revenue decreased 33.2% year-over-year.
- Adjusted EBITDA for the 2020 third quarter was approximately a loss of $1.3 million as compared to a loss of $769 thousand for the same period in 2019.
Historical Earnings Impact
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