Inuvo®, Inc. (NYSE Amex: INUV), an Internet marketing and technology company specializing in marketing browser-based consumer applications, managing networks of website publishers and operating specialty websites, released today an update on the company’s integration progress with Vertro®, Inc. and reported its pre-merger 2011 financial results.
UPDATE ON POST-MERGER PROGRESS
Together, the two companies offer quite an impressive portfolio. Inuvo will now own a search marketplace that experiences approximately 220 million search queries per month and sees an estimated 225 million page views per month. The company now consists of three distinct revenue-generating components: Software Search, Publisher Network and Partner Programs—all of which monetize large volumes of traffic across diverse revenue streams. The company anticipates quarter-on-quarter revenue growth throughout 2012 across all three of these revenue segments. Further, March, the first month of combined operations, has revenue tracking at approximately $4.3 million.
“With the integration process well underway, it is exciting to watch two companies combine to create the foundation to increase our service offerings, revenue and set the stage for profitability,” stated Peter Corrao, President and CEO of Inuvo. “We have now created a strong digital media company whose combined distribution, expertise, partnerships, technology and synergies should position us to effectively compete across multiple platforms in the digital marketplace. The new Inuvo has many interrelated moving parts that we expect to provide the company with top-line growth, as well as bottom-line savings.”Operational Highlights
- Completed the merger with Vertro.
- Gained ownership of the ALOT™ Appbar containing seven million users and continuing to grow.
- Expects annual operational cost savings of $2.9 million, an increase in margins and an immediate impact on the company’s bottom line, based on the elimination of redundant public company costs, redundant employee costs, technical costs and other operational efficiencies.
- Expects to be cash flow positive by the close of fiscal year 2012, after the one-time costs associated with the merger and the integration of the two organizations.
- Transitioned its headquarters to New York City, with the vast majority of its approximately 49 employees now located at the New York City office. The company is looking to sublease its existing Clearwater, Florida office.
- Entered into a new credit facility agreement with Bridge Bank N.A., a subsidiary of Bridge Capital Holdings (NASDAQ: BBNK), upon the closing of the merger. The new credit agreement is for up to a total of $15 million which the company expects to use to fund its growth initiatives and operations.
- Recently launched Local.Alot.com, in beta, which is a new local search service site that utilizes ALOT’s current monetization partner and is powered by Inuvo’s own LocalXML® technology. Local.ALot.com is designed to further enhance the ALOT user experience, providing consumers with the ability to obtain relevant, personalized local information.
- Initiated the conversion of various applications to the mobile market. The growing ALOT app store features apps that can be re-purposed for distribution on the most popular mobile platforms and potentially monetize search or capture display advertising revenues. The company has already test-marketed apps on both iOS and Android platforms.
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