Inuvo, Inc.

Good day, ladies and gentlemen, and welcome to the Inuvo Inc. 3rd Quarter 2024 Earnings Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator. And this call is being recorded on Friday, November 8, 2024. I would now like to turn the conference over to Natalia Rudman, Of Crescendo Communications, please go ahead.

Thank you, Liyue, and good morning. I'd like to thank everyone for joining us today for the ANUVO Third Quarter 2024 Shareholder Update Call. Today, ANUVO's Chief Executive Officer, Richard Howe, and Chief Financial Officer, Wally Ruiz, will be your presenters on the call. We would also like to remind our shareholders that we plan to file our 10-Q with the Securities and Exchange Commission this morning. Before we begin, I'm going to review the company's safe harbor statement. The statements in this conference call that are nondescriptions of historical facts are forward-looking statements relating to future events, and as such, all forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. When using this call, the words anticipate, could, enable, estimate, intend, expect, believe potential will, should, project, and similar expressions as they relate to Nouveau Inc. are as such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, which may cause actual results to differ from those anticipated by Nouveau at this time. In addition, other risks are more fully described in Nouveau's public filings with the U.S. Securities and Exchange Commission, which can be reviewed at www.sec.gov. The company makes no commitment to disclose any revisions to forward-looking statements or any facts, events, or circumstances after the date hereof that bear upon forward-looking statements. In addition, today's discussion will include references to non-GAAP measures. The company believes that such information provides additional measurements and consistent historical comparison of its performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is available in today's news release on our website. With that out of the way, I'll now turn the call over to CEO Rich Howe. Please go ahead, Rich.

Thank you, Natalia, and thanks, everyone, for joining us today. We are pleased to report that for the quarter ended September 30th, 2024, we delivered 23% sequential growth. We were down roughly 9% year over year, having come off of the strongest quarter in our history in the third quarter of fiscal year 2023. And that quarter was driven in large part by our largest platform client. For the nine months ended September 30th, we are up approximately 9% year over year. The fourth quarter is shaping up nicely with the first five days of November having averaged roughly $290,000 per day in revenue. We are currently estimating double digit year over year growth in the fourth quarter. Adjusted EBITDA improved $310,000 sequentially at a loss of $357,000 in the third quarter of this year. We expect adjusted EBITDA to be near breakeven in the fourth quarter. We have no outstanding debt at the end of September. and we have cash and availability from our $10 million receivables facility sufficient to meet our working capital needs. In the second quarter, I had mentioned that we were in the process of completing a master services agreement with a large retailer, and I'm pleased to report that we signed that agreement. We have consistently delivered exceptional results for this client, and consequently, we do expect this relationship will continue to thrive well into the future. As we have discussed in prior calls, the process for approval by this client was extensive, having taken approximately one and a half years from the initial interest. Let me now provide some information about our industry, our clients, and our products. Let's begin with the industry. Our platform products and the services we deliver are focused on a very specific component to the advertising ecosystem. This market is roughly $6 billion annually, and typically it's designed to extend the reach of these platforms to niche websites they do not themselves own or control. Over the past year and a half, this large market has experienced changes. And those changes were driven, have been a driver of the growth within our platform clients. These platform companies we work with have had a concerted effort to improve the return on advertising spend resulting from this marketplace on behalf of their advertisers. Now to accomplish this goal, These platform companies have reduced the number of companies they work with, choosing instead to focus with a finite set of partners on improving quality through better technology, better content, and compliance.