Inuvo Announces Larger Losses and Modest Revenue Growth in Third Quarter | Arkansas Business News
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Marketing Technology Provider Inuvo Inc. of Little Rock (US NYSE: INUV) on Monday reported mounting losses and modest revenue growth in the third quarter.
The company posted a loss of $3.8 million, or 3 cents per share, higher than the loss of $1.8 million, or 2 cents per share, in the same quarter a year ago.
Net sales for the period totaled $17.7 million, up 1% from $16.8 million a year ago. Inuvo said it believes revenue in the period was negatively impacted by slowing consumer spending. Still, it was the company’s sixth straight quarter of revenue growth.
Revenue from IntentKey, the platform used to deliver connected TV, online video and native advertising campaigns, increased 12% in the quarter. The gains were offset by the loss of customers to a competitor. CEO Richard Howe said IntentKey is “gaining traction in a market where we believe current identity-based targeting technologies can no longer scale.”
“IntentKey provides these results in part because it is able to successfully purchase media associated with browsers that block or obscure cookies and/or IP addresses, including Apple,” it said in a statement. .
Revenue from ValidClick, the platform used to deliver search and social campaigns, fell 3%, in part due to the closure of the company’s accounts in a dispute with a “platform”. well-known form of advertising” regarding invalid clicks purchased in the second quarter. He described the fraud as “atypical, sophisticated and uncommon within the network in question”.
These invalid clicks resulted in more than $1.4 million in customer refunds, which helped increase operating expenses for the nine months ending September 30 to $42.3 million, or about 8%. more than the same nine-month period in 2021. Inuvo said it expects the unnamed advertising platform to reimburse it for expenses, and it has withheld payment of an equivalent amount of debt. The two companies are in arbitration proceedings.
Inuvo’s net loss for the nine months ending September 30 totaled $9.1 million, or 8 cents per share, compared to a net loss of $6.4 million, or 5 cents per share, for the same period last year.
Inuvo ended the third quarter with $7.7 million in cash, cash equivalents and marketable securities, $5.9 million in working capital, an unused working capital facility of $5 million and no debt.