Inuvo, Inc. (INUV): history, ownership, mission, how it works & makes money

A Brief History of Inuvo, Inc.

Company Overview

Inuvo, Inc. is an advertising technology and services company that focuses on providing digital advertising solutions. As of 2024, the company has established a strong foothold in the advertising sector, utilizing proprietary artificial intelligence technology to enhance its service offerings.

Financial Performance

For the three-month period ended September 30, 2024, Inuvo generated revenue of $22,371,153, a decrease of 9% compared to $24,570,588 for the same period in 2023. For the nine-month period ended September 30, 2024, revenue increased to $57,603,935, compared to $53,069,433 in 2023, marking an 8.5% increase.

Cost of Revenue

Inuvo's cost of revenue for the three months ended September 30, 2024, was $2,594,642, reflecting a 14.1% increase from $2,274,626 in the same quarter in 2023. For the nine-month period, the cost was $7,599,872, down 3% from $7,833,729 in 2023.

Operating Expenses

The company reported a net loss of $5,903,142 for the nine months ended September 30, 2024, which included non-cash expenses such as depreciation and amortization of $1,951,196 and stock-based compensation of $1,087,533. This was an improvement from a net loss of $7,988,323 for the same period in 2023.

Cash Flows

Net cash used in operating activities for the nine months ended September 30, 2024, was $100,345, compared to $457,716 in 2023. The cash flows from investing activities showed a cash outflow of $1,409,762 for 2024, primarily due to capitalized internal development costs.

Customer Concentration

As of September 30, 2024, one customer accounted for 79.9% of Inuvo's overall revenue, highlighting significant reliance on a single client for income generation. This figure was 76.5% for the nine-month period ending September 30, 2024.

Stockholder Equity and Capital Structure

As of September 30, 2024, Inuvo had 140,467,661 shares of common stock outstanding, with an accumulated deficit of $173,350,353. The total stockholder equity was reported at $12,402,936.

Future Outlook

Inuvo continues to focus on leveraging its AI technology to enhance its competitive edge in digital advertising. The company aims to improve its financial performance while managing operational costs effectively. The outlook remains cautiously optimistic as it navigates the challenges of customer concentration and market dynamics.

A Who Owns Inuvo, Inc. (INUV)

Ownership Structure

As of 2024, Inuvo, Inc. (INUV) has a diverse ownership structure consisting of institutional investors, retail investors, and insiders. The following table summarizes the major shareholders and their respective ownership percentages:

Recent Shareholder Changes

In the last fiscal year, Inuvo, Inc. has seen fluctuations in its shareholder composition, with institutional investors increasing their stakes. Notably, BlackRock and The Vanguard Group have both raised their positions by approximately 1% each, reflecting confidence in the company's strategic direction.

Stock Performance and Market Dynamics

As of September 30, 2024, Inuvo's stock price was approximately $0.80 per share, reflecting a year-to-date increase of 15%. The company's market capitalization is around $112 million, with an average trading volume of 1.5 million shares per day. The volatility in stock prices is primarily influenced by market conditions and the company’s quarterly earnings reports.

Insider Transactions

Insider trading activities have been relatively stable, with minor transactions reported. Richard D. Dyer, the CEO, has not sold any shares in the past year, indicating strong confidence in the company's future performance. Other executives have participated in stock option exercises but have not significantly altered their overarching ownership stakes.

Equity Financing Activities

Inuvo, Inc. has engaged in equity financing activities, raising approximately $3 million through at-the-market offerings in 2024. These funds are earmarked for product development and operational expansion, aiming to leverage their AI technology in advertising.

Conclusion

The ownership of Inuvo, Inc. is characterized by a mix of institutional and retail investors, with significant insider holdings which reflect confidence in the company's strategic initiatives. The stock's performance in the market and the recent financing activities indicate a proactive approach to growth and sustainability.

Inuvo, Inc. (INUV) Mission Statement

Inuvo, Inc. focuses on disrupting the advertising industry through its proprietary and patented generative large language artificial intelligence (AI) technology. This technology aims to identify and target audiences without relying on consumer identity or data, which is becoming increasingly restricted due to legislative changes. Instead of targeting individuals, Inuvo's AI targets the underlying reasons for consumer interest in products and services.

Financial Overview

As of September 30, 2024, Inuvo reported the following financial metrics:

Revenue Breakdown

For the nine-month period ended September 30, 2024, the revenue distribution was as follows:

Customer Concentration

For the three-month period ending September 30, 2024, one customer accounted for:

• 79.9% of overall revenue.
• 59.6% of gross accounts receivable balance.

Cash Flow Summary

For the nine months ended September 30, 2024, the cash flow metrics were:

Balance Sheet Highlights

As of September 30, 2024, the balance sheet reflected:

Stock Performance

Inuvo's stock performance metrics as of late 2024 include:

• Shares Outstanding: 140,467,661
• Market Capitalization: Approximately $13.6 million.
• Recent Stock Price: $0.10 per share.

Inuvo continues to leverage its AI technology to enhance its advertising capabilities, aiming for improved operational performance and profitability in the evolving digital advertising landscape.

How Inuvo, Inc. (INUV) Works

Company Overview

Inuvo, Inc. operates in the advertising technology sector, focusing on providing digital advertising solutions. The company derives its revenue from the placement of advertisements across various platforms, including websites, applications, and browsers. As of September 30, 2024, Inuvo reported a total revenue of $22,371,153 for the third quarter, a decrease of 9.0% compared to $24,570,588 in the same quarter of the previous year. For the nine-month period ending September 30, 2024, total revenue reached $57,603,935, reflecting an increase of 8.5% from $53,069,433 in 2023.

Revenue Breakdown

Inuvo's revenue is categorized into two main segments: Platforms and Agencies & Brands. For the three months ended September 30, 2024, revenue from Platforms accounted for 82.8% of total revenue, while Agencies & Brands contributed 17.2%. In contrast, for the same period in 2023, Platforms made up 87.2% of revenue, and Agencies & Brands represented 12.8%.

Customer Concentration

As of September 30, 2024, a single customer represented 79.9% of Inuvo's total revenue for the quarter and 76.5% for the nine-month period. This customer also accounted for 59.6% of the gross accounts receivable balance at that date.

Cost and Expenses

For the three months ended September 30, 2024, Inuvo's cost of revenue was $2,594,642, compared to $2,274,626 in Q3 2023. The gross profit for Q3 2024 was $19,776,511, reflecting a gross margin of 88.3%. For the nine-month period, the cost of revenue totaled $7,599,872, resulting in a gross profit of $50,004,063.

Operating Expenses

Operating expenses for the three months ended September 30, 2024, were $21,719,773, a decrease from $23,487,044 in the same period of 2023. The breakdown of operating expenses includes:

• Marketing Costs: $17,006,131
• Compensation: $3,106,384
• General and Administrative: $1,607,258

Net Loss

Inuvo reported a net loss of $2,044,293 for the three months ended September 30, 2024, compared to a loss of $1,170,980 in the same period in 2023. For the nine-month period, the net loss was $5,903,142, down from $7,988,323 in 2023.

Cash Flow Summary

For the nine months ended September 30, 2024, Inuvo reported:

• Net cash used in operating activities: $(100,345)
• Net cash provided by (used in) investing activities: $(1,409,762)
• Net cash provided by (used in) financing activities: $(343,526)

Liquidity and Financial Position

As of September 30, 2024, Inuvo had cash and cash equivalents amounting to $2,586,821. The company reported a net working capital deficit of $3.4 million and an accumulated deficit of $173.4 million. The management plans to support future operations primarily through cash generated from its credit facility and potential equity offerings.

How Inuvo, Inc. (INUV) Makes Money

Business Model Overview

Inuvo, Inc. operates as an advertising technology and services business, generating revenue primarily through digital advertising placements across various channels, including social, search, and programmatic advertising. The company utilizes its proprietary artificial intelligence technology, known as IntentKey, to enhance its advertising capabilities.

Revenue Breakdown

For the three-month period ended September 30, 2024, Inuvo reported revenues of $22,371,153, with the following breakdown:

In the nine months ended September 30, 2024, total revenue was $57,603,935, with 83.6% from Platforms and 16.4% from Agencies & Brands.

Financial Performance

The financial performance of Inuvo for the three months and nine months ended September 30, 2024, compared to the same periods in 2023, is as follows:

Cost Structure

Inuvo's cost of revenue for the three months ended September 30, 2024, was $2,594,642, while for the nine months, it totaled $7,599,872. The gross profit for the same periods was:

Operating Expenses

The operating expenses for Inuvo, which include marketing, compensation, and general administrative costs, were as follows:

Net Loss

Inuvo reported a net loss for the three months ended September 30, 2024, of $2,044,293, compared to a net loss of $1,170,980 for the same period in 2023. The net loss for the nine months ended September 30, 2024, was $5,903,142, down from $7,988,323 in the prior year.

Cash Flow Summary

For the nine months ended September 30, 2024, Inuvo's cash flows were as follows:

Customer Concentration

As of September 30, 2024, one customer accounted for 79.9% of Inuvo's overall revenue.

Debt and Financing Arrangements

On July 31, 2024, Inuvo entered into a Financing and Security Agreement with SLR Digital Finance LLC, allowing financing up to $10 million based on eligible receivables.

Updated on 16 Nov 2024

Resources:

1. Inuvo, Inc. (INUV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Inuvo, Inc. (INUV)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Inuvo, Inc. (INUV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.