Artificial Intelligence

Inuvo Revenue Increases 79.3% Year-Over-Year to $22.7 Million for the Second Quarter of 2022

Published

2 years ago

August 15, 2022

LITTLE ROCK, Ark., Aug. 15, 2022 (GLOBE NEWSWIRE) — Inuvo, Inc. (NYSE American: INUV), a leading provider of marketing technology, powered by artificial intelligence (AI) that serves brands and agencies, today provided a business update, and announced its financial results for the second quarter ended June 30, 2022.

Richard Howe, CEO of Inuvo, stated, “We had another exceptionally strong quarter as demonstrated by a 79.3% year-over-year increase in revenue to $22.7 million for the three months ended June 30, 2022. We also achieved a 77.4% year-over-year increase in revenue to $41.3 million for the six months ended June 30, 2022. Importantly, we have realized approximately 15% compounded quarterly growth rate over the two-year period between Q2 of 2020 and Q2 of 2022. Both the Search and Social ValidClick and Programmatic IntentKey platforms experienced significant growth in the three and six months ended June 30, 2022.”

Mr. Howe added, “We believe the industry we serve is not prepared for the implications of a consumer privacy led future where consumer data is no longer available to facilitate behavioral targeting of advertising. Most of an advertisers’ return on advertising spend is related to the use of 3^rd party cookies and consumer data. The industry we serve is rapidly changing, and within the next two years, we anticipate cookies will be eliminated on all major platforms including Apple and Google. This poses an immediate threat to existing incumbent advertising technology and data companies. Currently, we estimate that 75% of the media purchase opportunities within the open web either do not have a consumer cookie ID, or that cookie ID does not persist the next day. This disruptive change, already well underway within the industry provides Inuvo a unique opportunity to rapidly capture market share, while incumbents continue to develop and deploy variations on outdated technologies poorly aligned with the future.”

Financial Results for the Three and Six Month Ended June 30, 2022
Net revenue for the second quarter ended June 30, 2022 totaled $22.7 million, an increase of 79.3% as compared to $12.6 million for the same period last year. Net revenue for the six months ended June 30, 2022 totaled $41.3 million, an increase of 77.4% compared to $23.3 million for the same period last year.

IntentKey programmatic platform revenue for the three months and six months ended June 30, 2022 exceeded the same period last year by 197% and 232%, respectively. ValidClick search and social platform revenue for the three and six months ended June 30, 2022 exceeded the same period last year by 44% and 35%, respectively. Revenue split between IntentKey and ValidClick was roughly 38% versus 62% for the three months ended June 30, 2022, which compares to 23% and 77%, respectively, for the same period last year.

Cost of revenue for the second quarter ended June 30, 2022, totaled $9.3 million as compared to $2.3 million for the same period last year. Cost of revenue for the six months ended June 30, 2022, totaled $18.0 million as compared to $3.7 million for the same period last year. The increase in the cost of revenue for the three months and six months ended June 30, 2022 as compared to the same period last year was related to the acquisition of new customers and growth of IntentKey as a percentage of revenue.

Gross profit for the three and six months ended June 30, 2022 totaled $13.4 million and $23.3 million, respectively as compared to $10.4 million and $19.5 million, respectively, for the same period last year. Gross profit margin for the three and six months ended June 30, 2022 was 59.1% and 56.5%, respectively as compared to 82.1% and 84.1%, respectively, for the same period last year. The IntentKey platform has a lower gross margin than the ValidClick platform but has a greater overall net margin than the ValidClick platform. The gross margin decreased as IntentKey revenue became a greater percentage of net revenue.

Operating expenses for the three months ended June 30, 2022 totaled $16.2 million, an increase of 27.0% as compared to $12.8 million for the same period last year. Operating expenses for the six months ended June 30, 2022 totaled $28.3 million, an increase of 15.2% as compared to $24.5 million for the same period last year. Operating expenses for the three and six months ended June 30, 2022 included a one-time marketing expense of $1.4 million related to fraudulent media purchased from a prominent advertising platform, from whom the Company expects reimbursement. The company has withheld payment of an equivalent amount of payables due to this advertising platform.

Other expense/income for the three and six months ended June 30, 2022 included an expense of approximately $395 thousand and $377 thousand, respectively, from unrealized losses on trading securities. Other expense/income for the three months ended June 30, 2021 included approximately $25 thousand from unrealized gains on trading securities, and for the six month period ended June 30, 2021, other expense/income included income of approximately $495 thousand due to the reversal of deferred revenue from a one-time contract cancellation.

Net loss for the second quarter of 2022 totaled $3.2 million, or $0.03 per basic and diluted share, as compared to net loss of $2.4 million, or $0.02 per basic and diluted share, for the same period last year. Net loss for the six months ended June 30, 2022 totaled $5.3 million, or $0.04 per basic and diluted share, as compared to net loss of $4.5 million, or $0.04 per basic and diluted share, for the same period last year.

Net loss in the second quarter included $1.3 million non-cash depreciation, amortization, and stock compensation and for the six-month period those same items were $2.7 million. The net loss also includes $1.4 million dollars of expense related to the fraudulent media described above and $395 thousand of marked to market losses of which, by August 12^th, had regained approximately $300 thousand.

Adjusted EBITDA was a loss of approximately $142 thousand in the second quarter of 2022, compared to a loss of approximately $965 thousand for the same period last year. Adjusted EBITDA was a loss of approximately $859 thousand for the six months ended June 30, 2022, compared to a loss of approximately $1.8 million for the same period last year.

Liquidity and Capital Resources:
On June 30, 2022, Inuvo had $8.4 million in cash, cash equivalents and marketable securities, $8.9 million of working capital, an unused working capital facility of $5 million and no debt.

As of June 30, 2022, Inuvo had 119,873,869 common shares issued and outstanding.

Conference Call Details:
Date: Monday, August 15, 2022
Time: 10:00 a.m. Eastern Time
Toll-free Dial-in Number: 1-888-394-8218
International Dial-in Number: 1-323-701-0225
Conference ID: 3117716
Webcast Link: HERE

A telephone replay will be available through Monday, August 29, 2022. To access the replay, please dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). At the system prompt, please enter the code 3117716 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

About Inuvo
Inuvo®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visit www.inuvo.com.

Safe Harbor / Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Inuvo, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as filed on March 17, 2022, our Quarterly Reports on Form 10-Q, and our other filings with the SEC. Additionally, forward looking statements are subject to certain risks, trends, and uncertainties including the continued impact of Covid-19 on Inuvo’s business and operations. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. The information, which appears on our websites and our social media platforms is not part of this press release.

Inuvo Company Contact:
Wally Ruiz
Chief Financial Officer
Tel (501) 205-8397
[email protected]

Investor Relations:
David Waldman / Natalya Rudman
Crescendo Communications, LLC
Tel: (212) 671-1020
[email protected]

(Tables follow)


INUVO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30			June 30			June 30			June 30
		2022			2021			2022			2021
Net revenue	$	22,651,305		$	12,635,583		$	41,260,672		$	23,253,392
Cost of revenue		9,273,589			2,264,020			17,935,095			3,708,079
Gross profit		13,377,716			10,371,563			23,325,577			19,545,313
Operating expenses
Marketing costs		10,988,409			8,213,140			18,157,858			15,518,924
Compensation		3,215,890			2,880,217			6,373,596			5,618,084
General and administrative		2,011,237			1,676,890			3,737,909			3,401,868
Total operating expenses		16,215,536			12,770,247			28,269,363			24,538,876
Operating loss		(2,837,820	)		(2,398,684	)		(4,943,786	)		(4,993,563	)
Interest expense (income), net		3,070			(7,991	)		2,071			(30,380	)
Other income (loss), net		(395,177	)		24,548			(377,475	)		494,548
Net loss		(3,229,927	)		(2,382,127	)		(5,319,190	)		(4,529,395	)
Other comprehensive income
Unrealized loss on marketable securities		(124,253	)		–			(222,409	)		–
Comprehensive loss		(3,354,180	)		(2,382,127	)		(5,541,599	)		(4,529,395	)

Earnings per share, basic and diluted
Net loss income		(0.03	)		(0.02	)		(0.04	)		(0.04	)
Weighted average shares outstanding
Basic		119,827,944			116,497,035			118,788,819			116,497,035
Diluted		119,827,944			116,497,035			118,788,819			116,497,035

INUVO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
		June 30		December 31
		2022		2021
Assets

Cash and cash equivalent	$	6,373,070	$	10,475,964
Marketable securities-short term		2,044,601		1,927,979
Accounts receivable, net		13,094,811		9,265,813
Prepaid expenses and other current assets		1,074,366		1,408,186
Total current assets		22,586,848		23,077,942

Property and equipment, net		1,688,478		1,506,766

Intangible assets, net of accumulated amortization		6,141,541		6,720,585
Goodwill		9,853,342		9,853,342
Other assets		2,209,980		2,838,439

Total assets	$	42,480,189	$	43,997,074

Liabilities and Stockholders’ Equity

Current liabilities
Accounts payable	$	6,246,536	$	4,844,716
Accrued expenses and other current liabilities		7,422,403		5,817,823
Total current liabilities		13,668,939		10,662,539

Long-term liabilities		304,895		526,540

Total stockholders’ equity		28,506,355		32,807,995
Total liabilities and stockholders’ equity	$	42,480,189	$	43,997,074

RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(unaudited)

	Three Months Ended						Six Months Ended
	June 30			June 30			June 30			June 30
	2022			2021			2022			2021
Net loss	$	(3,229,927	)	$	(2,382,127	)	$	(5,319,190	)	$	(4,529,395	)
Interest (Income) Expense	$	(3,070	)		7,991			2,071			30,380
Depreciation		372,939			314,106			729,732			619,634
Amortization		270,563			537,530			627,741			1,086,730
EBITDA		(2,589,495	)		(1,522,500	)		(3,959,646	)		(2,792,651	)
Stock-based compensation		684,376			557,602			1,355,534			952,472

Non-recurring transactions: Expense of fraudulent media		1,367,800			–			1,367,800			–
Unrealized loss on investments		395,177			–			377,475			–
Adjusted EBITDA		(142,142	)		(964,898	)		(858,837	)		(1,840,179	)

Reconciliation of Operating Loss to EBITDA and Adjusted EBITDA
We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as Net loss plus (i) interest expense, (ii) depreciation, and (iii) amortization. We further define Adjusted EBITDA as EBITDA plus (iv) stock-based compensation and (v) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Related Topics:AI Artificial Intelligence Machine learning

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Artificial Intelligence

Northern Data Group is first in Europe to acquire NVIDIA H200 GPUs

Published

1 hour ago

July 1, 2024

CISION (PR Newswire)

First in Europe to acquire NVIDIA H200 GPUs – currently the most powerful GPUs on the market The deployment further expands the Group’s Generative AI CSP offering, already the largest in Europe Further demonstration of the Group’s continued commitment to providing best-in-class technologies FRANKFURT, Germany, July 1, 2024 /PRNewswire/ — Northern Data Group (Ticker symbol German stock market: NB2, ISIN: DE000A0SMU87), a leading provider of High-Performance Computing (HPC) solutions, today announces it has purchased NVIDIA H200 GPUs through a newly established partnership with Supermicro, a global leader in Application-Optimized Total IT Solutions.

Northern Data Group’s cloud platform, Taiga Cloud will be the first Cloud Service Provider (CSP) in Europe to offer access to the H200 GPU hardware, with delivery and deployment scheduled for Q4 2024. The partnership with Supermicro for the NVIDIA H200 GPUs will further build its HPC solutions and complement its existing offering of best-in-class GenAI technologies.
This purchase of the H200 GPUs demonstrates Northern Data Group’s commitment to offering the best-in-class technology to its customers, as it continues to expand its cloud solutions offering, while also maintaining its position as Europe’s first and largest dedicated Generative AI Cloud Service Provider.
The first full island of over 2,000 NVIDIA H200 GPUs utilizing BlueField-3 data processing units (DPUs) and NVIDIA Mellanox CX7 NICs, to deliver 32 petaFLOPS of performance. The configuration of NVIDIA-referenced architecture allows customers to access more bandwidth, faster, and more efficient data storage access. The H200 GPUs will be housed in one of Northern Data Group’s European data centers, powered by carbon-free, renewable energy and boast a Power Usage Effectiveness ratio of less than 1.2.
Aroosh Thillainathan, Founder and CEO, Northern Data Group, commented:
“Our GenAI platform is constantly evolving and we are proud to collaborate with Supermicro to be the first in Europe to offer access to NVIDIA H200 GPUs. This is testament to our commitment to continually offer industry-leading, next-generation solutions.
“As an Elite Partner of NVIDIA, we are proud to continue to offer cutting-edge technology, deployed in line with recommended architecture references to maximize the technology.”
Vik Malyala, President & Managing Director, EMEA; SVP, Technology & AI, Supermicro commented:
“We are excited to collaborate with Northern Data Group to expand its GenAI Cloud offering to include Supermicro GPU servers based on latest Nvidia H200 HGX GPUs. Supermicro is fully committed to delivering most performant and energy efficient AI infrastructure and solutions, and this collaboration will accelerate availability and bring the best value for customers in Europe.”
About Northern Data Group:
Northern Data Group (ETR: NB2) is a leading provider of High-Performance Computing (HPC) solutions to businesses and research institutions, utilizing GPU- and ASIC-based solutions. Our flexible compute power fuels innovation in our three core business platforms: Taiga Cloud, Ardent Data Centers, and Peak Mining. Through our HPC solutions, we pioneer ambitious computing innovation that drives progress in the AI, ML and Generative AI industries. Our close collaboration with industry-leading manufacturers including Gigabyte, AMD, and NVIDIA is fundamental to the acceleration of innovation across sectors including life sciences, financial services, and energy.
About Taiga Cloud:
Taiga Cloud, a Northern Data Group platform, is Europe’s first and largest Generative AI Cloud Service Provider. We provide a flexible, secure and compliant cloud-based ultra-fast GPU Network, engineered to meet organizations’ most ambitious compute needs. Taiga Cloud recognizes that high-intensity, large-scale processing power is crucial for accelerating Generative AI models and research which will deliver a new era of technological breakthroughs. Taiga’s energy-efficient Cloud is powered by Europe’s largest cluster of NVIDIA A100 Tensor Core and H100 Tensor Core GPUs, helping enable organizations to accelerate AI and ML innovation on demand, with technology that is fully scalable.

View original content:https://www.prnewswire.co.uk/news-releases/northern-data-group-is-first-in-europe-to-acquire-nvidia-h200-gpus-302185926.html

Artificial Intelligence

Dawn Health and Merck are collaborating to support Growth Disorders care

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1 hour ago

July 1, 2024

CISION (PR Newswire)

COPENHAGEN, Denmark, July 1, 2024 /PRNewswire/ — Dawn Health, the digital health company pioneering patient-first innovation, has announced they are working with leading global pharmaceutical company, Merck, on a digital solution for Growth Hormone Disorders (GHD).

Over the next two years, they will join forces to deliver a cutting-edge, user-centric digital platform, designed to help improve the lives of tens of thousands of patients across more than 40 countries.
By harnessing the latest AI technologies, the collaboration will also involve exploring the integration of features such as growth predictions and advanced personalization into the digital product, with excitement about AI and its potential for impact on user experience, adoption, adherence, and treatment outcomes. The digital solution will provide support to children and young adults living with GHD, as well as providing tools and support to their caregivers, both at home and in a clinical setting.
With a shared commitment to improving patient lives, the collaboration will focus on patient-centricity to deliver an intuitive, engaging product that supports users and caregivers throughout their treatment journey. This means speaking with patients to truly understand their unmet needs and how the solution can best address these, as well as hearing from caregivers and healthcare professionals about how to best empower and support those living with GHD.
The collaboration is already off to a strong start, with workshops and inspiring discussions happening between the teams at Dawn Health and Merck, as they work together to deliver a cutting-edge platform on a global scale to improve the lives of people living with Growth Hormone Disorders.
About Merck
Merck, a leading science and technology company, operates across life science, healthcare and electronics. Around 63,000 employees work to make a positive difference to millions of people’s lives every day by creating more joyful and sustainable ways to live. From providing products and services that accelerate drug development and manufacturing as well as discovering unique ways to treat the most challenging diseases to enabling the intelligence of devices – the company is everywhere. In 2023, Merck generated sales of € 21 billion in 65 countries. Scientific exploration and responsible entrepreneurship have been key to Merck’s technological and scientific advances. This is how Merck has thrived since its founding in 1668. The founding family remains the majority owner of the publicly listed company. Merck holds the global rights to the Merck name and brand. The only exceptions are the United States and Canada, where the business sectors of Merck operate as MilliporeSigma in life science, EMD Serono in healthcare, and EMD Electronics in electronics.
All Merck press releases are distributed by e-mail at the same time they become available on the Merck website. Please go to www.merckgroup.com/subscribe to register online, change your selection or discontinue this service.
About Dawn Health
Dawn Health is a global leader in digital health, specializing in the development of software as a medical device (SaMD) and digital therapeutics (DTx). Partnering with pharmaceutical companies, Dawn Health accelerates the launch of digital solutions to change the lives of people with chronic conditions.
Media Contacts
For questions about [email protected]
For questions about Dawn HealthChristopher Kold, [email protected]

View original content:https://www.prnewswire.co.uk/news-releases/dawn-health-and-merck-are-collaborating-to-support-growth-disorders-care-302184356.html

Artificial Intelligence

Transforming Healthcare with AI: Yidu Tech’s Gong Rujing at Summer Davos

Published

5 hours ago

July 1, 2024

CISION (PR Newswire)

DALIAN, China, July 1, 2024 /PRNewswire/ — “AI in healthcare is extremely challenging. For companies, it requires not only solving scientific problems but also understanding AI technology and respecting the complexity of the healthcare industry.” At the 15th Annual Meeting of the New Champions, also known as Summer Davos, Ms. Gong Rujing (Yingying), Chairwoman and Founder of Yidu Tech, was invited as a distinguished representative of the healthcare technology sector. She shared her unique insights into the future of AI in healthcare during the thematic dialogue on “Healthcare Analytics, Not Moving Fast Enough.”

This year marks the 10th anniversary of Yidu Tech and Ms. Gong Rujing’s decade-long dedication to the healthcare industry. From the inception of her entrepreneurial journey 10 years ago, she has been driven by the mission to leverage the power of technology to deliver precise healthcare to every individual.
Ms. Gong described the past decade as a journey filled with miracles and achievements. During this period, Yidu Tech has progressively established close collaborations with key stakeholders in the healthcare industry, including government agencies, hospitals, pharmaceutical companies, insurance firms, experts, and clinicians. As of March 31, 2024, Yidu Tech’s “AI Medical Brain” YiduCore has been authorized to process and analyze over 5 billion medical records, covering more than 2,500 hospitals.
In AI-powered clinical research, Yidu Tech has supported researchers and clinicians in producing over 240 high-level papers, accelerating the application of research outcomes. Additionally, Yidu Tech provides clinical trial services to globally renowned pharmaceutical companies, helping them optimize trial processes, reduce costs, and bring new drugs to market more swiftly, ultimately benefiting patients. In healthcare management, Yidu Tech’s AI technology plays a crucial role by analyzing vast amounts of medical data to provide comprehensive decision support to healthcare administrators, helping them optimize resource allocation and improve service efficiency.
“We are now entering a new era of AI technology.” The development of large language model technologies has opened up new possibilities across various industries. Yidu Tech has independently developed a large language model specific to the medical field and is advancing its application across the entire healthcare industry chain. The goal is to promote further progress and innovation through new AI technologies. However, Ms. Gong also emphasized that the healthcare industry is professional, complex, and sensitive, and the application of new technologies must address challenges such as data security, privacy protection, and ethics.
“Data security and privacy protection are fundamental to the development of AI technology and medical big data technology. We must ensure that all stakeholders are satisfied with compliance, security, accessibility, and privacy protection.”
“AI technology still has a long way to go.” She called on policymakers, healthcare institutions, and technology companies to work together to realize the immense potential of healthcare data. Ms. Gong highlighted that building trust is key, and enhancing data operability is essential to fully unleash the power of data. “It’s not just about better data quality; it’s about a better future for health.”

View original content:https://www.prnewswire.co.uk/news-releases/transforming-healthcare-with-ai-yidu-techs-gong-rujing-at-summer-davos-302186561.html