Inuvo, Inc. (NYSE MKT:INUV) Q1 2020 Earnings Conference Call - Final Transcript

May 14, 2020 • 04:30 pm ET


Inuvo, Inc. (NYSE MKT:INUV) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Inuvo, Inc. Investor Teleconference First Quarter 2020. During the presentation, all participants will be in a listen-only mode. After which we'll conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, May 14, 2020.

I would now like to turn the conference over to Laura Blank. Please go ahead.

Laura Blank

Thank you, operator, and good afternoon. I'd like to thank everyone for joining us today for the Inuvo's First Quarter 2020 Shareholder Update Call. Today, Inuvo's Chief Executive Officer, Richard Howe; and Chief Financial Officer, Wally Ruiz, will be your presenters on the call.

I would like to start by letting listeners know that as a consequence of the COVID-19 pandemic, both our offices in San Jose, California and Little Rock, Arkansas remain closed. We are monitoring the federal and state recommendations for reopening and expect to do so only when we feel comfortable that we have all the safeguards in place to protect our employees and their families from any potential virus transmissions among coworkers.

We would also like to remind our shareholders that we filed our 10-K on Tuesday, May 12, 2020, having taken advantage of the 45-day regulatory relief provided by the Securities and Exchange Commission. We plan to file our first quarter 2020 10-Q tomorrow.

Before we begin, I'm going to review the Company's safe harbor statement. The statements in this conference call are not -- 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 used in this call, the words anticipate, could, enable, estimate, intend, expect, believe, potential, will, should, project and similar expressions, as they relate to Inuvo, Inc. are, as such, a forward-looking statement.

Investors are cautioned that all forward-looking statements involve risks and uncertainties, which may cause actual results to differ from those anticipated by Inuvo at this time. In addition, other risks are more fully described in Inuvo's public filings with the US Securities and Exchange Commission, which can be reviewed at

With that, I'll now turn the call over to CEO, Richard Howe.

Richard K. Howe

Thanks, Laura, and thanks everyone for joining us today. For the three months ended March 31, 2020, we delivered roughly $15 million in revenue, with approximately $13.1 million coming from the ValidClick platform and $1.9 million from the IntentKey platform. ValidClick was down 8% and the IntentKey was up 45% year-over-year, reflecting our continued focus on growing the higher growth and margin potential associated with the IntentKey.

As we had mentioned on our year-end 2019 conference call, Q1 is typically our weakest quarter seasonally. Adjusted EBITDA in the first quarter was a loss of $1.4 million. Now this adjusted EBITDA does not include a $500,000 ValidClick licensing fee that was received in the first quarter and will be recognized over