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Inuvo Inc (INUV)
:INUV
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Inuvo
(NYSE MKT:INUV)
Rating:49Neutral
Price Target:
$3.50
▼(-1.41%Downside)
Positive Factors
Financial Performance
Inuvo reported strong 1Q25 results with revenue of $26.7M, up 57% year-over-year, beating expectations.
Growth and Expansion
Inuvo signed 20 new Agency and Brand relationships in 1Q25, including 15 self-serve IntentKey clients, indicating growth and expansion.
Negative Factors
Stock Performance
Despite record quarterly revenue in 4Q24 and outlook for accelerating revenue growth in 1Q25, INUV shares have underperformed the Russell 2000 year to date, down 45.3% versus a 9.5% decline, respectively.
Inuvo (INUV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.44M
Dividend YieldN/A
Average Volume (3M)142.41K
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth18.20%
EPS Growth50.08%
CountryUS
Employees82
SectorCommunication Services
Sector Strength79
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.10
Shares Outstanding14,450,000
10 Day Avg. Volume201,420
30 Day Avg. Volume142,414
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.95
Price to Sales (P/S)0.00
P/FCF Ratio-1.83
Enterprise Value/Market Cap0.55
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit0.39
Enterprise Value/Ebitda-1.79
Forecast
1Y Price Target
$1.50Price Target Upside-57.75% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Inuvo Business Overview & Revenue Model
Company DescriptionInuvo, Inc. (INUV) is a technology company specializing in artificial intelligence-driven marketing solutions. The company operates primarily within the digital advertising sector, offering advanced software platforms that facilitate the delivery of targeted advertisements across various channels. Inuvo's core products include IntentKey, a proprietary AI-driven platform that identifies and reaches audiences through deep learning models, and ValidClick, a search and social media marketing platform.
How the Company Makes MoneyInuvo makes money through its proprietary platforms that deliver targeted digital advertising solutions. The primary revenue stream is generated from advertisers who use Inuvo's platforms to reach specific audiences. IntentKey leverages AI to discern consumer intent and optimize ad delivery, thereby enhancing advertisers' return on investment. Revenue is typically earned on a performance basis, where advertisers pay for successful engagements or conversions generated by the campaigns. Additionally, Inuvo partners with various digital media outlets, leveraging their reach to increase ad impressions and clicks, further contributing to the company's earnings.
Inuvo Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: -10.13%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The call reflected a strong positive sentiment with record revenue growth and expansion in key segments, despite challenges with gross margin declines and increased operating expenses. Inuvo's performance exceeded expectations, with continued client retention and acquisition, significant growth in platform and agency segments, and positive client feedback on AI technology. Financial management improvements were noted, although achieving consistent profitability remains a challenge.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
Inuvo achieved a 57% year-over-year growth rate, generating $26.7 million in revenue, marking its largest quarter ever. Trailing twelve-month revenue is now $93.5 million, with expectations to exceed $100 million this year.
Platform Segment Expansion
Platform product line grew by 61% year over year, with a 100% increase in campaign volume. Ad impressions grew by 200% for two key clients, and onboarding time for new websites reduced by 50%.
Agencies and Brands Growth
The agencies and brands segment experienced a 31% year-over-year growth rate, with a 23% increase in the client base and 15 clients using the self-serve capability.
Strong Client Retention and Acquisition
80% of clients from Q1 2024 continued into Q1 2025, along with the addition of 20 new clients this year.
Positive Feedback on AI Technology
AI technology showed superior performance with reports of tripling conversions for clients and outperforming other campaigns.
Financial Health and Cash Management
Net loss reduced to $1.3 million compared to $2.1 million the previous year, with adjusted EBITDA nearly breakeven. Effective cash management reduced cash burn by $1 million compared to last year.
Negative Updates
Decline in Gross Margin
Gross margin declined to 79% from 87.7% last year, primarily due to a new campaign with a platform client.
Increased Operating Expenses
Operating expenses rose to $22.9 million from $17 million the previous year, with marketing costs and compensation expenses being significant contributors.
Net Loss and Break-even Challenges
Net loss reported at $1.3 million, with the need for slightly higher revenue ($26 to $27 million per quarter) to achieve breakeven.
Company Guidance
Inuvo, Inc. provided guidance on its financial performance and strategic plans during the First Quarter 2025 Earnings Call. The company reported a record-breaking $26.7 million in revenue for Q1 2025, a 57% increase from the previous year, with expectations to surpass the $100 million revenue mark for the year. Key metrics showed improvement, including adjusted EBITDA and gross profit, which rose by 41% year-over-year. The platform segment saw a 61% increase in revenue, driven by enhanced technological capabilities and a 100% rise in campaign volume. The agencies and brands segment experienced a 31% growth, with a 23% increase in the client base and approximately 20 new clients in 2025. The firm aims to maintain double-digit growth in both segments while managing product margins and cash generation. Inuvo plans to hire additional engineers and data professionals, maintaining a lean workforce of no more than 90 employees. The company also revealed plans for a 10-for-1 reverse stock split to improve share price and market perception, pending shareholder approval.Inuvo Financial Statement Overview
Summary
Inuvo's financials show revenue growth but persistent net losses and declining equity position are concerning. The company needs to focus on improving profit margins and strengthening its balance sheet.Income Statement
Inuvo shows a consistent growth in total revenue over the years, with a significant increase from $44.64M in 2020 to $93.48M in TTM 2025. However, the company has been operating at a net loss throughout the periods, reflected by negative net profit margins and EBIT margins. Despite growth in revenue, the profitability remains a concern with gross profit margins decreasing from 81.4% in 2020 to 77.2% in TTM 2025.45
Neutral
Balance Sheet
The balance sheet reflects a decrease in stockholders' equity from $32.81M in 2021 to $13.45M in TTM 2025, signaling a reduction in financial stability. The debt-to-equity ratio remains low, indicating limited leverage, but the overall decline in equity and assets raises concerns about the company's financial health. Equity ratio has dropped substantially, with total liabilities now almost equalling total assets.40
Negative
Cash Flow
Cash flows indicate persistent negative free cash flow, with slight improvements in operating cash flow in TTM 2025 ($1.22M) compared to previous years. The operating cash flow to net income ratio is positive in 2025, suggesting some improvement in cash generation relative to net losses. However, free cash flow remains negative, necessitating attention to cash management.35
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 93.48M | 83.79M | 73.91M | 75.60M | 59.83M | 44.64M | Gross Profit |
| 72.19M | 59.69M | 63.43M | 45.36M | 43.90M | 36.34M | EBIT |
| -5.19M | -5.51M | -10.39M | -12.65M | -7.77M | -8.05M | EBITDA |
| -3.06M | -2.69M | -7.63M | -10.45M | -4.05M | -3.45M | Net Income Common Stockholders |
| -4.91M | -5.76M | -10.39M | -13.56M | -4.48M | -8.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.56M | 2.46M | 4.44M | 4.46M | 12.40M | 7.89M | Total Assets |
| 31.69M | 33.18M | 32.37M | 35.56M | 44.00M | 35.18M | Total Debt |
| 948.10K | 1.02M | 943.90K | 483.00K | 862.97K | 1.10M | Net Debt |
| -1.61M | -1.44M | -3.50M | -2.45M | -9.61M | -6.79M | Total Liabilities |
| 766.89K | 835.27B | 15.39M | 13.81M | 11.19M | 9.89M | Stockholders Equity |
| 13.45M | 13.47T | 16.98M | 21.75M | 32.81M | 25.29M |
| Cash Flow | Free Cash Flow | ||||
| -166.91K | -1.63M | -4.24M | -7.26M | -6.87M | -6.78M | Operating Cash Flow |
| 1.22M | 229.55K | -2.55M | -5.57M | -5.28M | -5.60M | Investing Cash Flow |
| -1.84M | -1.86M | 606.19K | -1.67M | -4.60M | -1.19M | Financing Cash Flow |
| 748.68K | -353.39K | 3.46M | -304.43K | 12.46M | 14.30M |
Inuvo Technical Analysis
Negative
3.55
Price Trends
3.94
Negative
4.13
Negative
3.64
Negative
Market Momentum
-0.16
Positive
42.43
Neutral
33.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INUV, the sentiment is Negative. The current price of 3.55 is below the 20-day moving average (MA) of 4.09, below the 50-day MA of 3.94, and below the 200-day MA of 3.64, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 33.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INUV.
Inuvo Risk Analysis
Inuvo disclosed 20 risk factors in its most recent earnings report. Inuvo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inuvo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $14.64B | 5.81 | -3.99% | 6.03% | 2.71% | -31.56% | |
57 Neutral | $86.05M | ― | -16.55% | ― | -2.67% | 21.65% | |
54 Neutral | $24.21M | 4.88 | 8.21% | ― | -8.74% | ― | |
49 Neutral | $51.44M | ― | -34.39% | ― | 18.20% | 50.08% | |
46 Neutral | $32.26M | ― | -147.49% | ― | -4.46% | -3053.30% | |
42 Neutral | $89.78M | ― | -135.48% | ― | -12.77% | 19.71% | |
41 Neutral | $38.82M | ― | -123.16% | ― | -15.07% | 33.40% |
* Communication Services Sector Average
Performance Comparison
INUV
Inuvo
3.55
1.01
39.76%
HHS
Harte-Hanks
4.12
-3.52
-46.07%
MCHX
Marchex
1.85
0.29
18.59%
FLNT
Fluent
1.80
-1.58
-46.75%
CDLX
Cardlytics
1.51
-6.73
-81.67%
WIMI
WiMi Hologram Cloud
2.32
-5.58
-70.63%
Inuvo Corporate Events
Stock Split
Inuvo Announces Reverse Stock Split Effective June 2025
Neutral
Jun 10, 2025
Inuvo, Inc. announced a 1-for-10 reverse stock split of its common stock, effective June 10, 2025. This adjustment, which changed the CUSIP number and maintained the existing ticker symbol ‘INUV’, was implemented to consolidate shares without altering shareholders’ equity percentages, except for rounding fractional shares.
The most recent analyst rating on (INUV) stock is a Buy with a $1.00 price target. To see the full list of analyst forecasts on Inuvo stock, see the INUV Stock Forecast page.
Business Operations and Strategy
Inuvo Announces 2025 Equity Compensation Plan
Neutral
May 28, 2025
Inuvo, Inc. has announced its 2024 Omnibus Incentive Compensation Plan and 2025 Equity Compensation Plan, which includes forms for Restricted Stock Unit and Non-Qualified Stock Option Agreements. This announcement, dated May 28, 2025, signifies Inuvo’s ongoing efforts to enhance its compensation structures, potentially impacting its operational strategies and stakeholder engagement.
The most recent analyst rating on (INUV) stock is a Buy with a $1.00 price target. To see the full list of analyst forecasts on Inuvo stock, see the INUV Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.