Inuvo, Inc.

Ladies and gentlemen, and welcome to the Innovo Inc. First Quarter 2025 Earnings Call. At this time, note that all participant lines are in listen-only mode. But following the presentation, we will conduct a question and answer session. And if during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on Friday, May 9, 2029. And I would like to turn the conference over to Katie Cooper, Director of Marketing. Please go ahead.

Thank you, Operator, and good morning. I'd like to thank everyone for joining us today for the ANUVO first quarter 2025 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 10Q with the Security 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 not descriptions of historical facts are forward-looking statements relating to the 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 used in the call, the words anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project, and similar expressions as they relate to a NUVO, Inc. are as such a forward-looking statement. Investors are cautioned that all forward-looking statements involve risk and uncertainties, which may cause actual results to differ from those anticipated by ANUVO at this time. In addition, other risks are more fully described in ANUVO'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 discussions 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 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, I'll now turn the call over to CEO Richard Howe.

Thank you, Katie, and welcome, everyone. We're thrilled this morning to be able to announce yet another record-breaking quarter ended March 31, 2025, where we achieved a 57% year-over-year growth rate, generating $26.7 million in revenue, our largest quarter ever. Equally compelling about this result is that it occurred in what is typically our weakest seasonal quarter. Trailing 12-month revenue for ANUVO is now $93.5 million, putting us on track to beat and break through the $100 million barrier in this year. Once again in this quarter, virtually all the important financial metrics improved year over year, including our adjusted EBITDA, our operating cash, and gross profit, which was up 41% year over year. Both the platform and the agencies and brands' product lines were up materially in the first quarter. It may also be appropriate to note for our shareholders that over roughly the last five years, Nouveau has had a 6.8% compounded quarterly growth rate. For reference, the average for public companies between 50 and 200 million in annual sales by our analysis is about 3.4%. Wally will share more details about our financials in his discussion. Inuvo's financial strategy for 2025 is to grow both platform and agencies and brands revenues at double digits, keeping product margins steady while generating cash from operations. The product strategy is to accelerate platform growth through automation and within agencies and brands to support growth through AI performance enhancements and self-serve functionalities. The people strategy is to end the year at no more than 90 people, adding engineers and data science professionals within platform and in agencies and brands to continue building out our sales and account management teams. At roughly $1 million of annual revenue per employee for a technology company, Anuvo is operating at the high end of the comparable efficiency curve. The valuation strategy for the company includes items on the proxy that I will touch on in my closing statements. Within platform, we grew 61% year over year. As we had mentioned on previous calls, we began reengineering technologies and services within this product line in 2023, anticipating market changes which have now come to fruition. We see continued strong demand here and a healthy pipeline of new business opportunities. Campaign volume within platform was up 100% year over year and is reflective of the adoption of our capabilities by media buyers and an indication of the scalability of the platform product line. The more ads we show and the higher the quality of leads we deliver, the more revenue we generate in platform. Within two of our key platform clients, we actually saw a 200% year-over-year increase in ad impressions. One of the technological bottlenecks within this product line is our ability to onboard new websites and to monitor existing websites within the overall network. In this regard, we have reduced by 50% the time it takes to onboard these new sites, and we have significantly enhanced our reporting, monitoring, and quality control capabilities. As we had mentioned on our year-end call, the market we serve with our platform technologies and services is roughly a $10 billion annual market. This market is in the midst of undergoing significant changes that we are in a unique position to capitalize on at this point in time. We have three large paying clients for these services, two of which have grown materially year over year, and the third is roughly flat. But that's only because the growth opportunities in the others have had our focus and will continue to have our focus in 2025. For our agencies and brand clients, we experienced a 31% year over year growth rate within the first quarter of 2025. We entered the year with a strong pipeline of new business opportunities. Our client base has grown 23% year over year, and we've added roughly 20 new clients thus far in 2025. We have roughly 15 clients using our self-serve capability now that have the potential to scale. among which include a large technology and automotive company. Our two largest clients are both up year over year. Roughly 80% of the clients who were running in Q1 of 2024 are currently running in Q1 of 2025. Within the first quarter of 2025, we beat our KPIs on average by a significant 61%. These are the KPIs that we tracked for our clients. We provide this measure so our shareholders can understand generally how much better the performance of the intent key is to our competitors, because ultimately the KPIs that we get from our clients are in fact the best competitor that they are using. Since launching the enhanced self-serve version of the intent key earlier this year, we have seen a considerable increase in the number of visitors to our corporate and self-serve website, up roughly 430% sequentially. Self-serve revenues, while still a small component of our overall revenue, have grown steadily month over month so far this year. As a reminder, this self-serve product has the highest gross margin of any product Denuvo sells. We continue to add salespeople, most recently to handle the Texas region. We have a number of major holding companies testing the new platform, and anecdotally, the Nuvo brand awareness appears to be rising. We've had three recent client feedback notes that emphasize the superior performance, transparency, and insights associated with our artificial intelligence. One of those clients reported seeing three times the number of conversions after activation. Another reported our AI was outperforming their other campaigns. And the third commended our technology's ability to signal purchase intent ahead of the implementation of the tariffs. Technologically, in addition to the launch of the enhanced self-serve platform, we also began testing our newest zip code level targeting features using a number of channels, including the difficult-to-measure digital out-of-home channel. which is the modern digital version of the billboard, only dynamically targetable. As a reminder, when we empower our clients with our AI for discovering and targeting audiences, we also provide them with the reporting that measures the effectiveness of those audiences predictively using our proprietary machine learning technology, which works even for hard to find channels like digital billboards. On a sequential basis, we've seen a 21% increase in our renewable newsletter subscriptions and a 4% increase in our followers on LinkedIn. 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. Wally?