Q1 2025 Inuvo Inc Earnings Call
Good day, ladies and gentlemen, and welcome to the.
Operator: Good day, ladies and gentlemen, and welcome to the Inuvo Inc. First Quarter 2025 Earnings Call. At this time, note that all participant lines are in a listen-only mode.
He knows all Inc. First quarter 2025 earnings call at this time no doubt all participant lines are in a listen only mode. Following the presentation. We will conduct a question and answer session and if during this call you'll require immediate assistance. Please press star zero for the operator also note that this call is being recorded on Friday may <unk>.
Operator: 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.
Operator: Also note that this call is being recorded on Friday, May 9th, 2029.
2029.
Katie Cooper: And I would like to turn the conference over to Katie Cooper, Director of Marketing. Please go ahead. Thank you, Operator, and good morning.
Speaker Change: 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 new though first quarter 2025 shareholder update call today, and do that as Chief Executive Officer, Richard Howe, and Chief Financial Officer, Wally Ruiz will be your presenters on the call we would.
Katie Cooper: I'd like to thank everyone for joining us today for the Inuvo first quarter 2025 shareholder update call.
Katie Cooper: Today, Inuvo'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-Q with the Security and Exchange Commission this morning.
Speaker Change: I would like to remind our shareholders that we plan to file our 10-Q with the security and Exchange Commission. This morning.
Katie Cooper: 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 Inuvo, 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 Inuvo at this time.
Speaker Change: 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 feature events and as such all forward looking statements are made pursuant to the Securities Litigation Reform Act of 1995.
Speaker Change: 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 new though inc are as such a forward.
Speaker Change: Looking statement.
Speaker Change: Investors are cautioned that all forward looking statements involve risks and uncertainty which may cause the actual results to differ from those anticipated by new though at this time. In addition, other risks are more fully described in the news is public filings with the U S Securities and Exchange Commission, which can be reviewed at www dot at D. C Dot Gov.
Katie Cooper: In addition, other risks are more fully described in Inuvo's public filings, with the U.S. Securities and Exchange Commission, which can be reviewed at www.sec.gov.
Katie Cooper: 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.
Speaker Change: 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.
Katie Cooper: 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.
Speaker Change: 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 reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is available in today's news release on our website.
Richard Howe: 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.
Speaker Change: With that I'll now turn the call over to CEO CEO Richard Howe.
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.
Richard Howe: 31st, 2025, where we achieved a 57% year-over-year growth rate, generating 26.7 million in revenue, our largest quarter ever.
Richard Howe: The equally compelling about this result is that it occurred in what is typically our weakest seasonal quarter. trailing 12 month revenue for Inuvo 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 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, Inuvo has had a 6.8% compounded quarterly growth rate.
Richard Howe: Equally compelling about this result is that it occurred in what is typically our weakest
Richard Howe: Sailing 12-month revenue for Inuvo is now 93.5 million, putting us on track to beat and break through the $100 million barrier in this year.
Richard Howe: Once again, in this quarter, virtually all the important financial metrics improved year over year, including our adjusted Ibiza, our operating cash, and gross profit, which was up 41% year over year.
Richard Howe: Both the platform and the agencies and brands product lines were up materially in the first quarter.
Richard Howe: 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.
Richard Howe: 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.
Richard Howe: For reference, the average for public companies between 50 and 200 million in annual sales by our analysis is about 3.4%.
Richard Howe: Wally will share more details about our financials in his discussion.
Speaker Change: 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.
Richard Howe: 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 functionality. The PEOPLE strategy is to end the year at no more than 90 PEOPLE, adding engineers and data science professionals within platforms. and in agencies and brands to continue building out our sales and account management. At roughly $1 million of annual revenue per employee for a technology company, Inuvo is operating at the high end of the comparable efficiency curve.
Speaker Change: 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.
Speaker Change: 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.
Speaker Change: At roughly 1 million dollars of annual revenue per employee, for a technology company, Enuvo is operating at the high end of the comparable efficiency curve.
Richard Howe: The valuation strategy for the company includes items on the proxy that I will touch on in my closing. 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.
Speaker Change: The valuation strategy for the company includes items on the proxy that I will touch on in my closing statements.
Speaker Change: Within platform, we grew 61% year over year. As we had mentioned on previous calls, we began re-engineering technologies and services within this product line in 2023, anticipating market changes, which have now come to fruition.
Speaker Change: We see continued strong demand here and a healthy pipeline of new business opportunities.
campaign volume within platform was up 100% year over year.
Speaker Change: And is reflective of the adoption of our capabilities by media buyers and an indication of the scalability of the platform product line.
Richard Howe: The more ads we show, and the higher the quality of leads we deliver, the more revenue we generate in platform.
Speaker Change: The more ads we show and the higher the quality of leads we deliver, the more revenue we generate in platform.
Richard Howe: within within two of our key platform clients, we actually saw a 200% year over year increase in ad and 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 capability.
Speaker Change: Within two of our key platform clients, we actually saw a 200% year-over-year increase in ad
Speaker Change: 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.
Speaker Change: In this regard, we have reduced by 50% the time it takes to onboard these new sites, and we have significantly enhanced a reporting, monitoring, and quality control capabilities.
Richard Howe: As we had mentioned on our year-end call, the market we serve with our platform technologies and services is roughly the $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.
Speaker Change: As we had mentioned on our year end call, the market we serve with our platform technologies and services is roughly the $10 billion annual market.
Speaker Change: 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.
Speaker Change: 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 we'll continue to have our focus in 2025.
Richard Howe: But that's only because the growth opportunities and the others have had our focus and will continue to have our focus in 2020. For our agencies and brand clients, we experienced a 31% year-over-year growth rate within the first quarter of 2025. We enter 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.
Speaker Change: For our agency's and brand clients, we experienced a 31% year-over-year growth rate within the first quarter of 2025.
Speaker Change: We enter the year with a strong pipeline of new business opportunities.
Speaker Change: Our client base has grown 23% year over year and we've added roughly 20 new clients thus far in 2025.
Speaker Change: 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.
Speaker Change: 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.
Richard Howe: Within the first quarter of 2025, we beat our KPIs on average by a significant 61%. These are the KPIs that we track 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 IntentKey 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.
Speaker Change: Within the first quarter of 2025, we beat our KPIs on average by a significant 61% and these are the KPIs that we track for our clients.
Speaker Change: Since launching the enhanced self serve version of the turnkey earlier. This year, we have seen a considerable increase in the number of visitors who are corporate and self serve website up roughly 430% sequentially.
Richard Howe: 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 Inuvo 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.
Speaker Change: Self serve revenues, while still a small component of our overall revenue have grown steadily month over month, so far this year.
Speaker Change: As a reminder, this self serve product has the highest gross margin of any product to move ourselves.
Speaker Change: We continue to add salespeople, most recently to handle the Texas region.
Speaker Change: We have a number of major holding companies testing, the new platform and anecdotally the Nouveau brand awareness appears to be rising.
Richard Howe: And anecdotally, Inuvo 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 points 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 tariff.
Speaker Change: We've had three recent client feedback notes that emphasize the superior performance.
Speaker Change: Currency and insights associated with our artificial intelligence.
Speaker Change: One of those points 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.
Speaker Change: 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.
Richard Howe: 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 audience. 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 Inuvo newsletter subscriptions and a 4% increase in our followers on LinkedIn.
Speaker Change: Which is the modern digital version of the Billboard only dynamically targeted bull.
Speaker Change: As a reminder, when.
Speaker Change: When we empower our clients with our AI for discovering and targeting audiences.
Speaker Change: We also provide them with the reporting that measures the effectiveness of those audiences predictably.
Speaker Change: Using our proprietary machine learning technology, which works even for hard to find channels like digital billboards.
Speaker Change: On a sequential basis, we've seen a 21% increase in our renewable newsletter subscriptions and a 4% increase in our followers on Linkedin.
Speaker Change: 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.
Wally Ruiz: 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?
Wally: Thank you rich and good morning.
Wally Ruiz: Thank you, Rich, and good morning. We delivered another outstanding quarter marked by significant revenue growth, new clients, and improved cash efficiency. Our continued focus on innovation, client partnerships, and financial management drove strong performance across all key metrics. Inuvo reported revenue of $26.7 million in the first quarter of 2025, a 57% increase over the $17 million in the first quarter of last year. We saw growth in both client categories, agencies and brands, and platforms. We had strong demand for our services from platform clients. Platform revenue was approximately $23.7 million. New products that launched last year, emphasizing improved technology, quality content.
Wally: We delivered another outstanding quarter.
Wally: Marked by significant revenue growth new.
Wally: New clients and improved cash efficiency.
Wally: Our continued focus on innovation client partnerships and financial management drove strong performance across all key metrics.
Wally: <unk> reported revenue of $26 $7 million in the first quarter of 2025.
Wally: The 7% increase over the $17 billion in the first quarter of last year.
Wally: We saw growth in both client categories agencies and brands and platforms.
Wally: We had strong demand for our services from platform clients.
Wally: Platform revenue was approximately $23 7 billion.
Wally: New products that launched last year emphasizing approved technology.
Wally: Quality content.
Wally Ruiz: and Compliance fueled the revenue growth in Platform. Agencies and Brands revenue was approximately $3 million in the first quarter of 2025. The growth in revenue was driven primarily by the signing of new clients. The reorganization of our go-to-market and support teams last year contributed to the higher revenue and agencies and brands in the current quarter. We expect the revenue mix from agencies and brands and platforms to remain relatively stable throughout 2025. Cost of revenue increased to $5.6 million, that's up from $2.1 million in first quarter of 2024. primarily due to higher agencies and brands revenue and to a new campaign with one of our platform clients.
Wally: And compliance fuel the revenue growth and platforms.
Wally: Agencies and brands revenue was approximately $3 million in the first quarter of 2025.
Wally: The growth in revenue was driven primarily by the signing of new clients.
Wally: The reorganization of our go to market and support teams last year.
Wally: Tribute to the higher revenue in Britain and agencies and brands in the current quarter.
Wally: We expect the revenue mix from agencies and brands and platforms to remain relatively stable throughout 2025.
Wally: Cost of revenue increased to $5 6 million, that's up from $2 $1 billion in first quarter of 2024.
Wally: Primarily primarily due to higher agencies and brands revenue and to a new campaign with one of our platform clients.
Wally: Cost of revenue is primarily composed of payments made to website publishers and app developers that host our advertisements as well as through media payments made on behalf of our agency of bread brand clients.
Wally Ruiz: Cost of revenue is primarily composed of payments made to website publishers and app developers that host our advertising. as well as to media payments made on behalf of our agency of brand flying. We reported a gross profit of $21.1 million, 41% higher compared to the $14.9 million for the same quarter last year. However, gross margin declined to 79% in the first quarter of this year, compared to 87.7% last year. The decrease in gross margin was due primarily to a new campaign with a platform client. We anticipate a small decline in gross margin in 2025 as revenues from this client scale.
Wally: We reported a gross profit of $21 1 billion, 41% higher compared to the $14 $9 billion for the same quarter last year.
Wally: However, gross margin declined to 79% in the first quarter of this year compared to 87, 7% last year.
Wally: The decrease in gross margin was due primarily to a new campaign with a with a platform client.
Wally: Anticipate a small decline in gross margin in 2025 as revenues from this client scales.
Wally: Operating expenses for the first quarter of 2025 totaled $22 9 billion compared.
Wally Ruiz: Operating expenses for the first quarter of 2025 total $22.9 million compared to $17 million for the same period last year. Operating expenses include marketing costs, compensation expense, and general and administrative expense. Marketing costs, primarily media costs incurred on behalf of clients were $17.5 million in the first quarter of 2025 compared to $13.1 million in the same quarter last year. The marketing costs were higher because of higher platform revenue. Compensation expense increased in the first quarter of 2025 to $3.6 million, compared to $3.2 million in the same quarter last year. The higher compensation expense was due to a benefit obligation arising from the death of an employee and to higher incentive accrual.
Wally: Compared to $17 billion for the same period last year.
Wally: Operating expenses include marketing cost compensation expense and general and administrative expense.
Wally: Marketing costs, primarily media costs incurred on behalf of clients were $17 $5 million in the first quarter of 2025 compared to $13 $1 billion in the same quarter last year.
Wally: Marketing costs were higher because of higher platform revenue.
Wally: Compensation expense increased in the first quarter of 2025 to $3 6 million compared to $3 2 million in the same quarter last year.
Wally: The higher compensation expense was due to a benefit obligation arising from the desktop and employee and two higher incentive accrual.
Wally: Our total employment, both full and part time was 81 at the end of the first quarter of 2025 compared to 93 for the same time last year, where at the same time last year.
Wally Ruiz: Our total employment, both full and part-time, was 81 at the end of the first quarter of 2025, compared to 93 for the same time last year, or at the same time last year. Our 2025 budget includes hiring of seven additional people, including engineers, data scientists, sales personnel, and account managers, of which three have already joined the company. General and administrative expense for the first quarter of 2025 increased to $1.7 million from $700,000 last year. And that's due to a $1.1 million adjustment made last year to reduce the allowance for expected credit losses for an amount due from a former client that has been paid in full now.
Wally: Our 2025 budget includes hiring up seven additional people, including engineers data scientists sales personnel and account managers of which three have already joined the company.
Wally: General and administrative expense for the first quarter of 2025 increased to $1 7 billion.
Wally: From $700000 last year.
Wally: And that's due to a $1 1 billion dollar adjustment made last year to reduce the allowance for expected credit losses for an amount due from a former client that has been paid in full now.
Wally: Other income was $541000 for the three months ended March 31 2025.
Wally Ruiz: Other income was $541,000 for the three months ended March 31st, 2025, and it was zero for the same period last year. In March 2025, the company received a refund from the Internal Revenue Service totaling $610,000 in connection with an amended form that we filed in May 2023 for the Employee Retention Credit. Of the total refund, $533,000 was recognized as other income, while $77,000 was recognized as interest and included in net financing expense. Net financing or interest expense was approximately $28,000 in the first quarter of 2025 compared to $20,000 last year. The net interest expense this year is higher due to higher borrowing within the quarter and is net of the $77,000 of interest income that I just mentioned.
Wally: And it was zero for the same period last year.
Wally: In March <unk>.
Wally: 25, the company received a refund from the internal revenue service totaling $610000 in connection with an amended form that we filed in May 2023 for the employee.
Wally: <unk> retention credits.
Wally: Okay.
Wally: Of the total refund.
Wally: 533000 was recognized as other income.
Wally: While 77000 was recognized as interest in included in net financing expense.
Wally: Net financing our interest expense was approximately $28000 in the first quarter of 2025 compared to $20000 last year.
Wally: Net interest expense this year is higher due to higher borrowing within the quarter.
Wally: Net of the $77000 of interest income that I just mentioned.
Wally: Net loss in the first quarter of 2025 was $1 $3 million compared to a net loss of $2 $1 billion for the first quarter last year.
Wally Ruiz: Net loss in the first quarter of 2025 was $1.3 million compared to a net loss of $2.1 million for the first quarter last year. Adjusted EBITDA in the first quarter of 2025 was nearly a breakeven at a $22,000 loss compared to a loss of $1 million in the first quarter of last year.
Wally: No.
Wally: Adjusted EBITDA in the first quarter of 2025 was nearly breakeven at a $22000 loss compared to a loss of $1 million in the first quarter of last year.
Wally: As of March 31, we had cash and cash equivalents of $2 $6 million and no outstanding debt.
Wally Ruiz: As of March 31st, we had cash and cash equivalents of $2.6 million and no outstanding debt. During the quarter, we raised $1.2 million at an average price of $0.73 per share through the sale of stock with an ad at the market agreement. Our capital structure is composed of 144 million common shares outstanding, and 11 million employees, employee restricted stock units. Effective cash management has allowed us to reduce cash burn by $1 million in the first quarter of this year over the same quarter in 2024, and we expect to generate cash in the second half of this year.
Wally: During the quarter, we raised $1 2 million at an average price of 73 per share.
Wally: L a stock with an AD.
Wally: At the market agreement.
Wally: Our capital structure is composed of 144 million common shares outstanding and 11 billion voice employee restricted stock units outstanding.
Wally: The effective cash management has allowed us to reduce cash burn by $1 million in the first quarter of this.
Wally: This year over the same quarter.
Wally: And in 2024.
Wally: And we expect to generate cash in the second half of this year.
Speaker Change: Enriches closing remarks, we will touch upon proposals in the proxy.
Wally Ruiz: In Rich's closing remarks, we will touch upon proposals and approximations. This is merely a reiteration and explanation of what is included in the proxy statement and is not meant to be a solicitation.
Speaker Change: This is merely a reiteration and explanation of what is included in the proxy statement and is not meant to be a solicitation rich.
Richard Howe: Rich?
Speaker Change: Rich.
Wally: Thank you Wally.
Richard Howe: Thank you, Wally. We achieved 57% year over year growth in the first quarter of 2025 hitting yet another all time revenue high of $26.7 million. and a trailing 12-month revenues now standing at $93.5 million. All our important financial metrics improved year over year. Building on strong momentum, unaudited April results point to continued strength. Consequently, we project second quarter 2025 revenue growth to be no less than roughly 25% year over year.
Speaker Change: We achieved 57% year over year growth in the first quarter of 2025, hitting a yet another all time revenue high of $26 7 million.
Wally: And a trailing 12 month revenues now.
Wally: Now standing at $93 5 million.
Wally: All our important financial metrics improved year over year.
Wally: Building on strong momentum unaudited April results point to continued strength. Consequently, we project second quarter 2025 revenue growth to be no less than roughly 25% year over year.
Wally: I'd like to close by saying something about our annual shareholder meeting scheduled for May 20 <unk>.
Richard Howe: I'd like to close by saying something about our annual shareholder meeting scheduled for May 22nd. This year, we are asking shareholders to vote for what we expect will be a 10-for-1 reverse split of our stock. We've long known that at roughly 150 million shares outstanding, we are outside the normal and optimal range for public companies of our size. We recognize that having so many shares outstanding results at times in a share price that prevents some buyers from moaning our company, that it can lead to greater volatility and potentially manipulation. And that impacts that it does also impact earnings for share and while also potentially undermining investor confidence.
Wally: This year, we are asking shareholders to vote for what we expect will be a 10 for one reverse split of our stock.
Wally: We've long known that at roughly 150 million shares outstanding we are outside the normal an optimal range for public companies of our size.
Wally: We recognize that having so many shares outstanding results.
Wally: At times in a share price that prevent some buyers from ammonia or company.
Wally: That it can lead to greater volatility and potentially manipulation.
Wally: And that impacts that that it does it can also impact our earnings per share and while also potentially undermining investor confidence.
Richard Howe: As part of this decision that's on the proxy, we did analyze public companies with revenues up to $250 million, and we settled on shares outstanding of approximately $15 million, or the 10-for-1 that's on the proxy statement. This reverse split is unrelated in any way to our New York Stock Exchange listing requirements, nor is the company currently working on any capital raise activity.
Wally: As part of this decision that's on the proxy we did analyze.
Wally: Public companies with revenues up to $250 million and we settled on shares outstanding of approximately $50 million or for the 10 for one that with us on the proxy statement.
Wally: This reverse split is unrelated in any way to our New York stock exchange listing requirements nor has the company currently working on any capital raise activities.
Operator: I will now turn the call over to the operator for questions. Sylvie? Thank you, sir.
Speaker Change: I will now turn the call over to the operator for questions Sylvia. Thank you Sir.
Operator: Ladies and gentlemen, if you do have any questions, please press star followed by 1 on your touchtone phone. You will then hear a prompt that your hand has been raised. And should you wish to decline from the polling process, please press star followed by the 2. And if you're using a speakerphone, we ask that you please lift the handset first before pressing any key. Please go ahead and press star 1 now if you do have any questions.
Speaker Change: Ladies and gentlemen, if you do have any questions. Please press star followed by one on you touched on from you will then hear a prompt that your hand has been raised and should you wish to decline from the polling process. Please press star followed by the <unk>.
Speaker Change: And if you're using a speaker phone we ask that you. Please lift the handset first before.
Speaker Change: Before pressing any keys. So please go ahead and press Star one now if you do have any questions.
Brian Kinstlinger: And your first question will be from Brett Kinstlinger at Alliance Global Partners. Please go ahead, Brian. Hey guys, thanks so much. Outstanding results. We've heard demand from the automotive sector has dropped significantly since tariffs were implemented.
Brett: And your first question will be from Brett guess Linda.
Brian: Global Partners. Please go ahead Brian.
Brian: Hey, guys. Thanks, so much.
Speaker Change: Outstanding results.
Brian: <unk>.
Brian: Heard demand from the automotive sector has dropped significantly since tariffs were implemented.
Richard Howe: Has there been any meaningful changes from your new anchor customer that you discussed over the last few quarters since the beginning of April? And then what's the percentage of revenue from automotive as a percentage of the first quarter revenue? I don't know what the answer to the last one is, and I don't think we provide that as a rule. But I will speak to the to the primary question about tariffs. You know, we've been thinking about this a lot as well, Brian, probably in the same way every company in America is right now. We have not seen the decline in our largest automotive client.
Brian: Has there been any meaningful changes from your new anchor customer.
Brian: First over the last few quarters since the beginning of April and then what's the percentage of revenue from automotive as a percentage of the first quarter revenues.
Speaker Change: I don't know what the answer to the last one is and I don't think we provide that as a rule, but I will speak to the to the primary question about tariffs we've been thinking about this a lot as well Brian.
Speaker Change: Probably in the same way every company in America is right now we have not seen.
Speaker Change: The decline in our largest automotive client in fact, we're seeing the opposite.
Richard Howe: In fact, we've seen the opposite. We've seen an increase. Now, I mean, that could partly be related to the fact that, you know, they're trying to remove inventory that's already here. you know, ahead of the tariff. But it's also, interestingly for us, a consequence of this customer consolidating the various vendors they use to help them with finding and targeting audiences. So we've benefited from consolidation a little bit. But yes, it's for us, as it turns out, it's up. Great. That's good to hear.
Speaker Change: We've seen an increase now I mean that could partly be related to the fact that the.
Speaker Change: We're trying to remove moving inventory that's already here.
Speaker Change: Ahead of the tariffs, but it's also interestingly for US a consequence of this customer consolidating.
Speaker Change: The various vendor.
Speaker Change: Vendors, they use to help them with finding and targeting audiences. So we've benefited from consolidation a little bit, but yes, it's for us as it turns out it's up.
Speaker Change: Great.
Richard Howe: I guess I'd ask the same question, not only on that other large new anchor customer retail, but in general, has there been any changes in your customer basis demand for advertising? since April, of course. I have to say generally no, and particularly not in the large customer. So the other large customer you're talking about, everything is going very, very well. And so there's no – there's no – in that particular client, we've already got a budget that we've discussed with the client, obviously, coming into the year. And right now, there's no changes being made to that budget.
Speaker Change: Good to hear I guess I'd ask the same question not only on that other large new anchor customer in retail but in general.
Speaker Change: Has there been any changes in your customer base at demand.
Speaker Change: For for advertising.
Speaker Change: April of course.
Speaker Change: I have to say generally now and particularly not in the large customers. So the other large customer you were talking about that everything is doing.
Speaker Change: Very very well and.
Speaker Change: And so theres no theres no there in that particular client we've already got a budget that we've discussed with the client obviously coming into the year and right now there's no changes being made to that budget and in fact, we're already talking with them about how the budgets might change for next year.
Richard Howe: And in fact, we're already talking with them about how the budgets might change for next year and anticipate growth there. Great.
Speaker Change: And and anticipate growth there.
Great one more care question, sorry, but it seems to be the hot topic, obviously this earnings season.
Brian Kinstlinger: One more pair of questions. Sorry, but it seems to be the hot topic, obviously, of this earning season. As it relates, you talked about new logo wins year to date. it was solid. I'm wondering again, oftentimes since I've been covering Inuvo in times of uncertainty, business development, namely new logo wins, has slowed. Customers tend to not look for new technology at uncertain times. Is that something you're experiencing now or as you discussed, the brand is improving for Inuvo, has that been unchanged as well? I think we said we signed up 20 new ones since the beginning of the year, so that's great, and the pipeline looks strong.
Speaker Change: As it relates to you.
Speaker Change: You talked about new logo wins.
Speaker Change: Great.
Speaker Change: It was solid and I'm wondering again.
Speaker Change: Since I've been covering a new low in times of uncertainty.
Speaker Change: This development.
Speaker Change: Namely new logo wins has slowed.
Speaker Change: Customers Colombian outlook for new technology in uncertain times.
Speaker Change: Something you're experiencing now or.
Speaker Change: Could you discuss the brand is improving for a new well has that been unchanged as well.
Speaker Change: Well I think we said we signed up 20 new ones. This.
Speaker Change: Since the beginning of the year. So that's that's that's great and the pipeline looks strong.
Richard Howe: I think my answer to this question is, I just don't know. I mean, I think we're all kind of, you know, Brian, wondering how tariffs are going to impact whether they're going to continue, you know, what the outcome from it is. So at this point, we're not seeing at least, you know, an impactful impact on our business. We're not. Great.
Speaker Change: My answer to this question, but I just I don't know I mean, I think we're all kind of.
Speaker Change: Bryan wondering how tariffs are going to impact whether theyre going to continue.
Speaker Change: The outcome from it is so at this point, we're not seeing at least you know.
Speaker Change: And impactful impact on our business, we are not okay.
Speaker Change: Great. My last question a numbers question.
Brian Kinstlinger: My last question is a numbers question. Revenue was less in the fourth quarter compared to the first quarter, yet you generated over a million dollars of EBITDA in the fourth quarter. And if we backed out a other income of a half million in the first quarter, you lost almost a half million dollars in the first quarter and adjusted EBITDA. So I'm wondering, has the break... Break-even point changed. I've already added back the non-recurring 300,000 plus. So was there something else non-recurring, I'm wondering, or has the break-even changed for anyone? Yeah, Brian, we had a couple of non-recurring items. I think I referenced them in the in my discussion.
Speaker Change: Revenue weighs less in the fourth quarter compared to the first quarter.
Speaker Change: Yet you generated over a million dollars to EBITDA in the fourth quarter.
Speaker Change: If we backed out a other income other half million in the first quarter.
Speaker Change: You lost almost $5 million in the first quarter and adjusted EBITDA. So I'm wondering has the break.
Speaker Change: Breakeven point changed.
Speaker Change: I've already I went back and nonrecurring 300000, plus so was there something else nonrecurring monitoring or how is it breakeven change for renewable.
Speaker Change: Yeah, Brian we had a couple of nonrecurring items that I think.
Speaker Change: Referenced them in.
Speaker Change: In my discussion, but also.
Wally Ruiz: But also, we have a we have a new campaign with a with a platform client that's driving dollars, right, revenue and driving dollars in gross profit, but a little bit slower, a little bit lower. Margin. And so is the so it did affect it did affect the number that you're referring to, to some extent. So, so just to be clear, you know, 25 million, is that ongoing? Or do you think a 25 million a quarter should generally keep you a break even in higher than that profit? You know, we Yeah, we've, I would say, slightly higher than 25 million, you know, 2627.
Speaker Change: We have a we have a new campaign with a with a platform client.
Speaker Change: Driving dollars right revenue and driving.
Speaker Change: Dollars and gross profit, but it's a little bit slower a little bit lower.
Speaker Change: Margin.
Speaker Change: So is it.
Speaker Change: It did effect.
Speaker Change: It did affect the number that you're referring to.
Speaker Change: To some extent.
So just to be clear.
Speaker Change: $25 million is that ongoing or do you think a 25 million a quarter should generally keep you a breakeven in higher than that profitable.
Speaker Change: Yes.
Speaker Change: I would say slightly higher than $25 million two.
Speaker Change: <unk> 'twenty six 'twenty seven.
Speaker Change: Okay.
Speaker Change: Thank you for $7 million in the quarters.
Unknown Attendee: Ingraham, Steve Sousa, Larry Sears, Jordan E. Harris, Joe Corley Leave Now Great, thank you. Thank you.
Speaker Change: Yes.
Speaker Change: Great. Thank you.
Speaker Change: Okay.
Scott Buck: Thank you next question will be from Scott Buck at H C. Wainwright. Please go ahead Scott.
Scott Buck: Next question will be from Scott Buck at H.C. Wainwright. Please go ahead, Scott. Hi, good morning, guys. Thanks for taking my questions.
Scott Buck: Hi, Good morning, guys. Thanks for taking my questions.
Wally Ruiz: Wally, to piggyback on that last question, that new platform client that's driving, you know, a bit of a headwind on gross margin, you expect that to improve throughout the year though, correct? Is that business scale? Yeah, it's actually not a new client. It's a new it's a new campaign within a new campaign client that we have. And yeah, we expect it to scale. Yes, we do expect it to scale. And like I said, interestingly enough, it has an effect on the gross margin itself, making it lower, but it's driving a lot of gross profit dollars.
Scott Buck: To piggyback on that last question.
Scott Buck: New platform client, that's driving a bit of a headwind on gross margin you expect that to improve throughout the year, though correct as that business scales.
Speaker Change: Yes, it's actually not a new client, it's a new it's a new campaign within a new campaign client that we have.
Scott Buck: And yes, we expect it to scale.
Scott Buck: So we do expect it to scale.
Scott Buck: And like I said interestingly enough.
Scott Buck: It has an effect on the gross margin itself.
Scott Buck: Making it lower but it's driving.
Scott Buck: A lot of gross margin or gross profit dollars.
Wally Ruiz: And yeah, on the other side is that it has little to no marketing expense, which is different than the rest of the platform clients.
Scott Buck: And on.
Scott Buck: On the other side is that it has little to no marketing expense, which is different than the rest of the platform clients.
Scott Buck: So, yeah, we're very happy with that business. Great, I appreciate that.
Scott Buck: So.
Scott Buck: So yeah, we're very happy with that business.
Scott Buck: Great I appreciate that and I'm curious on seasonality.
Unknown Attendee: And I'm curious on seasonality. Should we expect typical seasonality to be maintained in 25 or has Has that changed a bit? I think that Unknown Speaker Hey, Scott, the you know, the reality of Q1 suggests that we're already out of what would be normal seasonality. You know, typically, you know, it's a, you know, a Q1, you know, is lower than Q4. Simply because, as we've said in the past, you know, marketing generally and marketing budgets get reassessed. you know, in the first quarter, and then they start spending them, you know, in the subsequent Q2 quarter, slowly, and then accelerating Q3 and Q4, although sometimes Q4 is a little bit lower than Q3, I don't know, it's kind of a crapshoot, depends on the year and the what's going on, you know, economically.
Scott Buck: Should we expect typical seasonality to be maintained in 'twenty five or has.
Scott Buck: Has that changed a bit.
Scott Buck: I think.
Scott Buck: Yes.
Scott Buck: Hey, Scott.
The reality of Q1 suggests that we're already out of what would be normal seasonality cubic.
Scott Buck: Right.
Scott Buck: Our Q1.
Scott Buck: This is lower than Q4.
Scott Buck: Simply because as we've said in the past.
Scott Buck: Marketing generally and marketing budgets get reassessed.
Scott Buck: In the first quarter and then they start spending them.
Scott Buck: In the subsequent in Q2 quarter slowly and then accelerating in Q3 and Q4, although sometimes Q4 is a little bit lower than Q3, I don't know its kind of a crap shoot depends on the year and the <unk>.
Scott Buck: What's going on economically.
Scott Buck: Right now, we, you know, we appeared to be heading into this year, strongly. And, of course, I just gave at least some indication of where Q2 might be over last year. So things look, I don't know, right now they look pretty good for the year. Yeah, okay, perfect.
Right now we know we appeared to be heading into this year strongly and of course I just gave at least some indication of where Q2 might be over last year.
Scott Buck: So things look I don't know right now they look pretty good for the year.
Scott Buck: Yeah, Okay, perfect and then last one Richard can we get a little bit of color on the initial feedback you're getting from the enhanced in turnkey self service platform that you launched earlier this year and how do you size that opportunity.
Richard Howe: And then last one, Richard, can we get a little bit of color on the initial feedback you're getting from the enhanced IntentKey self-service platform that you launched earlier this year? And how do you size that opportunity? Well, we'd like to have that opportunity being, you know, many, many, you know, tens of millions of dollars, you know, in the, you know, in the next few years. Unknown Attendee, Jack Aarde, Natalya Rudman, Inuvo, Unknown Attendee, Jack Aarde, Natalya The positive feedback comes from the reality that, like other large language based technologies, you know, the ability to simply prompt Our AI and have it generate An audience and then execute on that audience.
Scott Buck: Well, we'd like to have that opportunity be many many.
Scott Buck: Tens of millions of dollars you know in the in the next few years.
Scott Buck: And Theres no reason why it can't be the market is sufficiently large.
Scott Buck: The feedback is very positive.
Scott Buck: And generally the feedback.
Scott Buck: The positive feedback comes from the reality that like other large language based technologies, you know the ability to simply prompt.
Scott Buck: Our AI.
Scott Buck: And have it generate.
Scott Buck: And audience and then execute on that audience. It just has never existed before ever in advertising.
Scott Buck: It just has never existed before ever in advertising. So yes, the feedback's positive on it. And at this point, we just, you know, we need more salespeople and we need more visibility and we need more people knowing that this capability exists. Great. Well, I appreciate the added color, guys. That's it for me. Thank you.
Scott Buck: Yes, the feedbacks positive on it and at this point, we just we need more salespeople and we need more visibility and we need more people knowing that this capability exists.
Scott Buck: Great well I appreciate the added color guys. That's it for me.
Scott Buck: Thank you.
Speaker Change: Next question will be from Jon Hickman Atlantan Berg. Please go ahead John.
Jon Hickman: Next question will be from Jon Hickman at Lindenburg. Please go ahead, Jon. Um, Wally, can you give us some guidance about the G&A cost going forward without that million dollar I guess. Unknown Attendee. I don't know, Bad Debt Reversal? should that expense line go back to what it was kind of last year or? should we go forward with the new number? So we've been running. If you back out that $1.1 million reversal that occurred in the first quarter of last year, we've been running about $1.5 million to $1.7 million in G&A a quarter, and we expect it to be in that $1.7 million range going forward, yes.
Scott Buck: Wally.
Scott Buck: Guidance about carbon.
Scott Buck: G&A costs going forward.
Without that million dollar.
Scott Buck: Hi, guys.
Scott Buck:
Scott Buck: No bad debt reversal.
Scott Buck: Hum.
Scott Buck:
Scott Buck: Should that expense line go back to what it was kind of last year.
Scott Buck: Should we go forward with the new number.
Scott Buck: So we've been running.
Scott Buck: If you back out.
Scott Buck: That $1 $1 billion reversal that occurred.
Scott Buck: In the first quarter of last year.
Scott Buck: We've been running about 115 million to $1 7 million.
Scott Buck: And G&A a quarter.
Scott Buck: And we expect it to be in that one 7 million range.
Scott Buck: Going forward, yes.
Speaker Change: Okay. So that's kind of a.
Wally Ruiz: Okay, so that's kind of a, that was a more of a one time item. Oh, it was definitely a one-time item. Well why didn't you back that out in your EBITDA? Unknown Attendee I'm not sure. Did we back in? We did not, I guess, back then. Yeah. No, you did not. Unknown Speaker Okay.
Scott Buck: More of a one time item.
Scott Buck: Oh, it was definitely a one time item.
Scott Buck: Well when you back that out in your EBITDA.
Scott Buck: Okay.
Scott Buck:
Scott Buck: I'm not sure did we back we.
Scott Buck: We did not I guess back then.
Speaker Change: You did not.
Speaker Change: Yeah, Okay, well anyway, thanks for the color.
Jon Hickman: Well, anyway, thanks for the color.
Jon Hickman: So this new campaign that you've got with the platform COSMA, is that... something that's like. to that type of campaign, like Grow in the Future, other Can you still hear me? Yes, we got you Jon. Okay, so that's the new campaign. Yeah, that new campaign, is that a portent of what's gonna, you know, of the future? Or is that just The grants and agencies are not in that category. So margins should be I guess. more historical.
Speaker Change: This new campaign that you've got with her.
Speaker Change: If one customer is that.
Speaker Change: Something that like.
Speaker Change: I mean should that.
Speaker Change: Cause that type of.
Speaker Change:
Speaker Change: Campaign like grow.
Speaker Change: Sure.
Speaker Change: There.
Speaker Change: Alright.
Speaker Change: Yes, we got you John.
Speaker Change: Okay. So that's a new campaign.
Speaker Change: That new campaigns that unfortunately.
Speaker Change: What's kind of you know of.
Speaker Change: Of the future.
Speaker Change: Or is that just.
Speaker Change: Uh huh.
Speaker Change: The brands and agencies are.
Speaker Change: Not in that category, so margins should be.
Speaker Change: I guess.
Speaker Change: More historical.
Richard Howe: I think maybe I'll answer this just because there's a couple of questions in there, Jon. Hopefully, I get the answer you're looking for here, right? But one is the demand right now for, let's call it campaigns within platform is strong. In fact, we've got a backlog we can't even fill right now because we want to make sure we have all the right processes and procedures in place for onboarding. So that's slowing us down a little bit, but demand's there. So the answer to maybe the first question you got is, yes, there'll be more of these campaigns that we're anticipating as the year progresses and as we start to onboard these campaigns.
Speaker Change: I think maybe ill answer this is getting a couple of questions in there John hopefully I get I get the answer you're looking for here right.
Speaker Change: One is the demand right now for let's call. It campaigns within platform is strong in fact, we've got a backlog.
Speaker Change: And even still right now because we want to make sure we have all the right processes and procedures in place for Onboarding.
Speaker Change: So that is slowing us down a little bit but demand is there. So the answer to the maybe the first question you got it.
Speaker Change: Yes, so there'll be more of these campaigns that we're anticipating as the year progresses and as we start to onboard these campaigns.
Richard Howe: The second thing is, you know, as is typically the case with any marketing activity, regardless of whether it comes from our agencies and brands or within the platform, it's always kind of the same, you know, campaigns usually start off, you know, less profitable, maybe then, then they do once they've been running for a while, because, you know, that's when the optimizations kick in. It takes time, some history. So, Yeah, when campaigns come on, they'll probably impact, you know, margins a little bit, but then as you know, three, six months out, they start to, to improve.
Speaker Change: The second thing is.
Speaker Change: As is typically the case with any marketing activity, regardless of whether it comes from our agencies and brands or within the platform is always kind of the same campaigns usually start off you know.
Speaker Change: Less.
Speaker Change: Profitable maybe than than they do once they have been running for a while because that's when the optimizations kick in.
Speaker Change: It takes time some history.
Speaker Change: Yeah.
Speaker Change: Campaigns come on they will probably impact margins a little bit, but then as you know three six months out they start to improve.
Speaker Change: So but.
Richard Howe: So, but to extend on Wally's comment that if you X out the, or if you add in the lower marketing expense related to that, are they, um, Profitability-wise, about the same as the brands and agencies. Oh, you mean a platform campaign versus an agencies and brands campaign? Yeah. Yeah, no, agencies and brand campaign. If you net out the cost, the marketing costs for the platform business, then the margins on agencies and brands is higher on campaigns within agencies and brands. and certainly hire for anything self-serve within agencies and brands. That's near 100% margin.
Speaker Change: To expand on Wally's comment that if.
Speaker Change: If you ex out the are.
Speaker Change: Or if you add in the lower marketing.
Speaker Change: And then related to that.
Speaker Change:
Speaker Change: Are they.
Speaker Change: Sure.
Speaker Change: Profitability wise about the same as the brands and agencies.
Speaker Change: Oh, you mean platform by platform.
Campaign versus in agencies and brands campaign.
Speaker Change: Yes, I know agencies and brand campaign.
Speaker Change: If you net out the cost the.
Speaker Change: Marketing costs for the platform.
Speaker Change: <unk> then the margins on agencies and brands is higher.
Speaker Change: On campaigns within agencies and brands is higher and certainly higher for anything self serve within agencies and brands.
Speaker Change: That's near 100% margin.
Speaker Change: Okay, well thank you.
Operator: Okay, well, thank you. Give it. Thanks, Jon. A reminder to please press star 1 should you have any questions.
Got it thanks John.
Speaker Change: A reminder to please press star one should you have any questions.
Jack Codera: Next is Jack Codera at Maxine Group.
Speaker Change: Next is Jack Cordero Maxim Group. Please go ahead Jack.
Jack Codera: Please go ahead, Jack. Hi, thank you. This is Jack Codera calling in for Jack Van Aarde. To touch on the dynamic of the self-serve front again, you mentioned double-digit growth goal for agency and brand, and then obviously the new 15 new self-serve clients. would you expect to scale? How do you explain kind of the scope of initial self-serve deployments compared to other campaigns? And how does that growth develop relative to other parts of the business? Thanks. It's much easier. It's easier to onboard them, Jack was asking this question, right? Yeah, it's much easier, Jack, to onboard self serve, there's less friction across the entire process.
Jack: Hi. Thank you this is Jack would Erik calling in projected right.
Speaker Change: To touch on the dynamics of the self serve front again, you mentioned double digit growth goal for agency and brands and then obviously, the new 15, new Seltzer clients.
Speaker Change: Would you expect to scale, how do you explain kind of the scope of initial self serve deployments compared to other campaigns and how does that growth developed relative to other parts of the business. Thank you.
Speaker Change: It's much easier.
Speaker Change: It's easier to onboard them.
Speaker Change: Jack was asking this question right.
Speaker Change:
Speaker Change: Yes, it's much easier Jack to onboard self serve theres less friction across the entire process.
Richard Howe: One of the benefits of this, this self serve capability is we've basically embedded our AI into existing campaign systems, demand side platform. And all a client who wants to use this capability has to do is go into those platforms once they've built a model with our capability, which can take five minutes. That's the incredible part of this technology. They just execute against it. And the campaign system collects the money and just remunerates us. So it's as easy an onboarding and execution for a client product as exists. We don't even need to have a contract with the client.
Speaker Change: One of the benefits of this this self serve capability as we basically embedded our AI into existing campaign systems demand side platforms.
Speaker Change: And all our client who wants to use this capability has to do is go into those platforms. Once they built a model with our capability, which can take five minutes and.
Speaker Change: Incredible part of this technology.
Speaker Change: They just execute against it and the the campaign system collects the money and just remunerate us. So it is easy and Onboarding and execution for our client product as exists we don't even need to have a contract with the clients we already contracted with the with the campaign system. So I hope that answers your but thats one of them.
Richard Howe: Well, we already contracted with the with the campaign. So I hope that answers you, but that's one of the reasons why we're excited about this, just the ease with which people can get up and running, test. You know, test lots of things. That is the value in this, other than, of course, the capability to target audiences they could never target before.
Speaker Change: This is why we're excited about this just the ease with which people can get up and running test.
Speaker Change: Test lots of things that that is the the value in this other than of course, the capability to target audiences they could never target before.
Speaker Change: Okay. That's helpful and then.
Jack Codera: Okay, that's helpful.
Richard Howe: And then, you know, given the strong quarter, and you mentioned kind of seasonalities out of whack now, can you talk a little bit more about the broader market? What sort of sentiment are you hearing from agencies, CMOs? You know, what important factors do you think are going to change as we progress into 2025? Thank you. I think that one, Jack, is, is the discussion we had a second ago, I think everybody's sort of waiting to see how the you know, the current US strategy vis-a-vis, you know, World Trade and tariffs is going to pan out.
Speaker Change: Given the strong quarter and you mentioned kind of seasonality is out of whack now.
Speaker Change: Talk a little bit more about the broader market what sort of sentiment are you hearing from agencies CMO is what.
Speaker Change: Important factors do you think youre going to change as we progress into 2025.
I think that one Jack is.
Is the discussion we had a second ago I think everybody's sort of waiting to see how the you know the.
Speaker Change: The current.
Speaker Change: U S strategy vis vis.
Speaker Change: World trade and tariffs is going to pan.
Speaker Change: Pan out.
Jack Codera: So there's some apprehension, you know, that we hear only because we're all talking about it, but we're not yet seeing the implementation of any major changes, at least in our business. Now that could change, you know, as we progress in the year, but at this point, that's the best I can tell you is everybody's talking about it, but we're not seeing anybody sort of act on it from an advertising perspective. Okay, thank you. Thank you.
Speaker Change: So theres some apprehension.
Speaker Change: We hear only because we're all talking about it but we're not yet seeing the implementation of any major changes at least in our business now that could change.
Speaker Change: As we progress in the year, but at this point that's the best I can tell you is everybody's talking about it but we're not seeing anybody sort of act on it from an advertising perspective yet.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you and at this time Mr Hill, we have no other questions registered please proceed sir.
Operator: And at this time, Mr. Howe, we have no other questions registered. Please proceed, sir. Thank you, Sylvie.
Speaker Change: Thank you Sylvie and I'd like to thank everyone, who joined US today on the call. We appreciate your continued interest in our company and we'll talk again at the end of our second quarter.
Richard Howe: And I'd like to thank everyone who joined us today on the call. We appreciate your continued interest in our company and we'll talk again at the end of our second quarter.
Speaker Change: Thank you, Sir ladies and gentlemen, this does indeed conclude your conference call for today. Once again. Thank you for attending at this time, we ask that you. Please disconnect your lines have a good weekend.
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