Inuvo, Inc.

Good day, ladies and gentlemen, and welcome to the ANUVO Inc. 4th Quarter 2024 Conference Call. At this time, all lines are in 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. This call is being recorded on Thursday, February 27, 2025. I would now like to turn the conference over to Natalia Rudman of Crescendo Communications. Please go ahead.

Thank you, Andrew, and good afternoon, everyone. I'd like to thank everyone for joining us today for the ANUVO fourth quarter and year-end 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-K with the Securities and Exchange Commission this evening. Before we begin, I'm going to review the company's safe harbor statement. The statements in this conference call that are not descriptions 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 Inugo Inc. are 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 Inugo at this time. In addition, other risks are more fully described in Inugo's public filings with the U.S. Securities and Exchange Commission, which can be reviewed at www.scc.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 an additional measurement and consistent historical comparison of its performance. A recognized affiliation 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 Richard Howe. Please go ahead, Rich.

Thank you, Natalia, and welcome, everyone. We're thrilled to announce our record-breaking fourth quarter ending December 31st, 2024. We achieved 26% year-over-year growth, generating $26.2 million in revenue, our largest quarter ever. Importantly, we also delivered positive net income and adjusted EBITDA within the quarter. This strong Q4 performance validates our continued investment in proprietary technologies, especially our large language generative AI, the intent key. In 2024, Anubo achieved 13.4% revenue increase for the year, reaching approximately 84 million. As Wally will elaborate, the net loss adjusted EBITDA, gross profit, and operating cash flows all improved year over year. The solid performance capped by a strong finish positions Anubo for an even stronger 2025, which I'll discuss further in my later comments. Enuvo's success in achieving key objectives during 2024 has laid the foundation for continued growth into 2025. For platform clients, the focus in 2024 was on enhancing the support and technologies we provide in a manner that aligns to their evolving marketplace. By late 2023, this roughly $10 billion market that we serve was undergoing major shifts, changes we had anticipated and prepared for as early as 2022. Many of our competitors had built their businesses around advertising policies that were being phased out. As a smaller, more agile company, we had the advantage of innovating for the future as opposed to overhauling technology and infrastructure designed for the past. This forward-thinking approach fueled our growth throughout 2024. As we entered 2024, our platform clients began prioritizing richer, more engaging experiences for both users and advertisers. Our background in publishing gave us a unique edge in helping them achieve these goals. We integrated AI tools into our internal systems to streamline and enhance how these experiences were created and delivered. With a long history of shaping high-quality digital environments, we moved quickly to provide relevant, immersive, and in-market experiences that connect our clients' advertisers with engaged audiences. Beyond delivering better experiences, our deep expertise in behavior analytics and artificial intelligence further strengthened our position. By analyzing how users interact with websites designed to meet our clients' requirements, we were able to refine our approach and optimize engagement, navigation, and interaction. These insights translated into stronger outcomes for our platform clients and ultimately better quality leads for advertisers and higher revenues for Inuvo. This fusion of experience design and behavior analytics positions us as a key player in a rapidly transforming market, and the results, they speak for themselves. In 2024, for our platform clients, we successfully delivered roughly 89 million ad clicks, an increase of 60% year over year. The largest industry served for our platform clients included travel, e-commerce, automotive, and business and software tools. As the market continues to realign, our 2024 investments in services and technology will drive even greater opportunities into 2025 and beyond. With the strong momentum behind us, we are well positioned to capitalize on these shifts and further expand our market share. For our agency and brand clients, the focus was on enhancing our go-to-market strategy, growing our client base while strengthening our AI's competitive advantage. In 2024, we deepened engagements with existing brands while onboarding 33 new brands and achieving exceptional results across the board. Our retention rate for existing agency and brand clients year over year was 85%. And performance across those clients exceeded KPIs on average by 42%. We successfully contracted with, served, and are scaling one of the largest retailers in the world. We also realized a 40% increase in our average order size. In 2024, we streamlined operations and empowered clients and prospecting teams. We reorganized client-facing personnel into dedicated pods, each comprised of a campaign manager, an account manager, and a solutions engineer, who collectively now provide clients with a better experience. We made significant investments in education, empowering our teams at every level. Sellers became smarter and better equipped to provide consultative selling support, while account managers evolved beyond performance recaps, delivering true campaign insights that help clients make better decisions. Additionally, we doubled down on the marketing of Anuvo, ensuring that our brand was at the center of discussions around AI, advertising, and programmatic media. By actively engaging in industry conversations, we strengthened our position as a thought leader and reinforced our competitive edge. We had over 3,000 media mentions in 2024, including a recent exclusive article written by AdExchanger related to the enhancements of our intent key self-serve platform. Our subscriber base also grew to nearly 10,000 for our twice monthly newsletter. We made a number of significant technological advancements in 2024, most notably with the enhancements to the intent key self-serve platform. This groundbreaking innovation democratizes advertising by allowing anyone to describe their target audience in simple terms. Our AI then instantly builds and executes a custom audience model. Forget about complex analytics and data segmentation and cookies and onboarding. Simply tell our AI what you want and it intelligently spans and adapts your audience in real time. This is truly the most empowering innovation in advertising to date. Addressing the second most important challenge facing marketers in 2024, we worked on automating and deploying our proprietary AI for media measurement. With growing privacy concerns, identifying and targeting the right audience across channels while accurately measuring campaign effectiveness is now paramount. Our client proven algorithms provide a solution to these challenges. and are now integrated directly into our product suite. Another key achievement in 2024 was expanding the revenue potential of our AI through an internal project we called Concept Bricks. This initiative structured our AI's knowledge into modular bricks that could be associated with each concept the AI understands, enabling flexibility through the development of an API. We are currently exploring some potential beta clients for this promising new revenue stream, but in the interim, it has facilitated product launches like our recent self-serve platform enhancements, and will further enable a number of technological enhancements within our core market in 2025. And finally, For the past two years, we've discussed the growing trend towards consumer privacy in our industry. This trend driven by both legislation and technology. While these changes are likely to accelerate the demand for privacy focused solutions like the intent key, our success has never been dependent on them given our performance relative to conventional ad tech. The remaining holdout on privacy has been the Chrome browser, where tracking remains prevalent. While Google hasn't officially announced its plans, industry consensus suggests they may offer users a one-time opportunity to opt into cookie tracking sometime in 2025, in a similar manner Apple did with app tracking. This shift is enacted is likely to strengthen the opportunity for the intent key. At this time, I would like to turn the call over to Wally for a more detailed assessment of our financial performance within the quarter.