Fluent, Inc. (NASDAQ:FLNT) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 04:30 pm ET

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Fluent, Inc. (NASDAQ:FLNT) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Fluent, Inc. Q3 2018 Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions). Please also note that today's event is being recorded.

At this time I'd like to turn the conference call over to Ms. Jordyn Tarazi. Ma'am, please go ahead.

Executive
Jordyn Tarazi

Good afternoon and welcome. Thank you for joining us to discuss our third quarter 2018 earnings results. With me today are Ryan Schulke, CEO; and Ryan Perfit, Interim CFO.

Our call today will begin with comments from Ryan Schulke and Ryan Perfit, followed by a question-and-answer session. I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available following the call on our website. To access the webcast, please visit our IR page on our website, www.fluentco.com.

(Forward-Looking Cautionary Statements)

With that, I am pleased to introduce Fluent's CEO, Ryan Schulke.

Executive
Ryan Schulke

Thanks, Jordyn, and good afternoon, everyone. As we continue to establish our standalone footprint in the marketplace we're pleased with our third quarter results with $66.5 million, $27.4 million and $12.4 million in revenue, adjusted gross profit and adjusted EBITDA respectably, which marked 21% growth on revenue, 43% adjusted gross profit growth and 56% adjusted EBITDA growth as compared to the third quarter of last year.

We're continuing to see positive trends on our core business. Our advertising partners remain confident in Fluent's strategic capabilities and they have been increasing demand for our performance-based marketing services. Simultaneously, we've continued to drive operating efficiencies that are increasing our gross profit margins, including advancing our lifecycle marketing initiatives and implementing machine learning technology. These two factors coming together really increase demand from our advertising partners, lifecycle marketing along with machine learning are really helping to drive network effects across our performance marketplace.

Our UK data launch has continued to show positive trends after two full quarters of testing. We've increased scale and profitability and are receiving positive feedback from our partners. We'll continue to assess more expansive global rollout during our 2019 planning process.

Understanding consumer trends and expectations in the digital era has been vital to Fluent success are always on serving capability provide critical insight regarding the attitudes, the lifestyles and the purchase behaviors of millions of consumers every month. The depth and breadth of our first party opt in self data data asset allows us to deliver an unparalleled point of view to advertisers, which differentiates Fluent as a primary growth partner to many of the world's leading and fastest growing brands.

As we reach the midpoint of our third quarter as a standalone public company, Fluent's leadership and colleague base are very focused on delivering our growth agenda, while creating value for our partners, our brand and our shareholders.

Our performance commitment has facilitated our investment in personnel and resources so that we can continue to execute our key initiatives with excellence. In turn, we're feeling positive about the traction we're gaining in the broader