Inuvo, Inc. (NYSE MKT: INUV) (the "Company" or "Inuvo"), an Internet marketing and technology company that develops consumer applications and delivers targeted advertisements onto websites reaching desktop and mobile, today announced its financial results for the fourth quarter and full year ended December 31, 2012.
"The Company had a strong fourth quarter and fiscal year in 2012,” stated Richard Howe, Chairman and Chief Executive Officer of Inuvo. “Not only did revenue and Adjusted EBITDA increased sequentially and year over year, but the business itself grew 26% organically between Q2 and Q4 following the Vertro acquisition in Q1. We expect these positive trends to continue into 2013, and we anticipate Q1 2013 revenue to range between $16.2 and $16.5 million.”
In its efforts to become profitable, the Company recently announced the relocation of its headquarters to Conway, Arkansas funded by a $1.75 million dollar grant from the Arkansas Economic Development Commission that, depending on the final terms of exiting the Company’s New York City office lease, is expected to yield monthly operating expense savings of approximately $80 to $120 thousand starting in Q2 2013. Additionally, the Company continues to expand its Network into mobile and is taking its
site, a complement to its ALOT AppBar, Global through an expansion into Europe starting in Q2 2013.
Fourth Quarter 2012 Highlights
Full Year 2012 Highlights
- Net revenue of $16.2 million, increased $9.6 million or 145% compared to the fourth quarter of 2011, and an increase of 5% compared to the third quarter 2012.
- Gross profit of $8.8 million, increased 366% compared to $1.9 million in the fourth quarter of 2011.
- Adjusted EBITDA, a non-GAAP measure, increased to $1.0 million compared to negative $226 thousand in the fourth quarter of 2011.
- Net revenue for the Network segment was $9.5 million and gross profit was $2.8 million, an increase of 44% and 50% from the fourth quarter of 2011, respectively.
- Net revenue for the Applications segment was $6.8 million and gross profit was $6.0 million compared to $17 thousand net revenue and $16 thousand gross profit in fourth quarter 2011.
- Net revenue of $53.4 million, an increase of $17.5 million or 49% compared to 2011.
- Gross profit of $27.7 million, an increase of $12.7 million or 85% compared to 2011.
- Adjusted EBITDA, a non-GAAP measure, increased to $2.5 million compared to negative $270 thousand in 2011.
The Company's consolidated financial statements as of December 31, 2012 include the financial results of its Vertro subsidiary from March 2012 forward; prior year periods do not contain financial results of the Vertro subsidiary. In addition, after combining operations, management has modified the reported operating segments into two segments; Network and Applications, rather than the former three segments; Software Search, Publisher, and Partner Programs. The Partner Programs segment is absorbed into the other two segments for all period
Three-month financial results for the period ended December 31, 2012
Net revenues for the three months ended December 31, 2012, were $16.2 million, up 145% compared to the three months ended December 31, 2011. Gross profit increased 366% to $8.8 million in the three months ended December 31, 2012 compared to the same period of 2011. Growth in the quarter was driven primarily from the Network segment, where revenue increased to $9.5 million, a 44% improvement over the same period in 2011. Net revenue from the Applications segment was $6.8 million, or 42% of total net revenues.