Fluent Inc ((FLNT)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Fluent Inc’s recent earnings call revealed a mixed sentiment, with significant advancements in Commerce Media Solutions and strategic partnerships offering a glimpse of potential growth. However, these positive developments were overshadowed by negative trends in revenue, particularly in the owned and operated segment, and an increased net loss.
Commerce Media Solutions Growth
Fluent Inc’s Commerce Media Solutions segment experienced remarkable growth, with revenue increasing by 99% to $12.7 million in Q1 2025. This segment now accounts for 23% of the company’s consolidated revenue, up from 10% a year ago, highlighting its expanding role in Fluent’s business model.
Strategic Partnership with Rebuy Engine
The company announced a strategic partnership with Rebuy Engine to launch Rebuy Ads powered by Fluent. This initiative aims to offer post-purchase ads to Shopify merchants, potentially tapping into the extensive Shopify ecosystem and driving further growth for Fluent.
Debt Reduction
Fluent made significant strides in reducing its total debt, which now stands at $25.6 million at the end of Q1 2025, down from $35.6 million at the end of 2024. This reduction aligns with the company’s strategic efforts to strengthen its financial position.
Commerce Media Market Potential
According to BCG, the commerce media market is projected to grow to $100 billion over the next five years, accounting for over 25% of digital media spend by 2026. This presents a substantial opportunity for Fluent to capitalize on this expanding market.
Total Revenue Decline
Fluent reported a total revenue of $55.2 million for Q1 2025, marking a 16% decrease from the prior year. This decline was significantly influenced by the company’s decision to exit certain businesses in 2024.
Owned and Operated Revenue Decrease
The owned and operated segment saw a 30% year-over-year decrease in revenue, dropping to $31.1 million. This decline was primarily due to challenges in acquiring media from social media channels, impacting overall performance.
Adjusted EBITDA Loss
Fluent reported an adjusted EBITDA loss of $3.1 million for Q1 2025, a stark contrast to the positive $700,000 recorded in Q1 2024. This loss was attributed to declines in the owned and operated business segment.
Net Loss Increase
The company experienced an increase in net loss, reporting $8.3 million for Q1 2025 compared to a net loss of $6.3 million in Q1 2024. This increase reflects the ongoing challenges faced by Fluent in its financial performance.
Forward-Looking Guidance
Despite the challenges, Fluent remains optimistic about the future. The company anticipates stabilization and a return to positive adjusted EBITDA in the latter half of the year. While gross margins decreased due to media cost pressures, operating expenses were reduced to $16.1 million from $20 million, aligning with their strategic transition. Fluent ended the quarter with $6.1 million in cash and cash equivalents, showcasing a commitment to financial resilience.
In conclusion, Fluent Inc’s earnings call highlighted a blend of promising growth in Commerce Media Solutions and strategic partnerships, juxtaposed with revenue declines and increased losses. The company’s forward-looking guidance suggests optimism for recovery and growth, underscoring its strategic efforts to navigate current challenges.