Fluent, Inc. (NASDAQ: FLNT), a leading data-driven performance marketing company, today reported financial results for the first quarter ended 2020.
Ryan Schulke, Fluent’s Chief Executive Officer, commented, “Amidst the extraordinary challenges we are all facing during the current global pandemic, we express our most sincere gratitude to those working tirelessly to support people in need. We also take great pride in the expressions of caring and concern by our colleague base, to support each other’s families and respective communities.”
“At the same time, we are extremely fortunate that our team has been so adaptive and resilient, enabling Fluent to maintain focus in driving our business forward, by executing on our core business goals and strategic agenda. We see our revenue growth in the quarter as an important indicator that Fluent continues to forge stronger bonds with leading brands across multiple verticals, and become a more critical component of our partners’ overall marketing strategies.”
First Quarter Financial Summary
- 19%growth in Q1 2020 revenue over Q1 2019, to $78.9million
- Net income of$0.4 or $0.01 per share, compared to net income of $1.0 million, or $0.01 per share, in Q1 2019
- Media margin of $23.9 million, an increase of 4% over Q1 2019 and representing 30.3% of revenue
- Adjusted EBITDA of $9.0 million, representing 11% of revenue
- Adjusted net income of $3.8million, or $ 0.05 per share
Media margin, adjusted EBITDA and adjusted net income are non-GAAP financial measures, as defined and reconciled below.
Business Outlook
- Fluent currently sees Q2 2020 trending in-line with Q2 2019 revenue and media margin.
- Volume of consumer traffic to our websites continues to be elevated year over year, reflecting consumers spending more time on their mobile devices, as the country largely shelters at home.
- Cost of media in Q2 2020 is trending favorably compared to Q2 2019, while monetization reflects the economic uncertainties our advertiser clients are responding to.
Conference Call
Fluent, Inc. will host a conference call on Monday, May 11, 2020 at 4:30 PM ET to discuss its 2020 first quarter financial results. To listen to the conference call on your telephone, please dial (888) 339-0797 for domestic callers, or (412) 317-5248 for international callers. To access the live audio webcast, visit the Fluent website at investors.fluentco.com. Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please dial (877) 344-7529 or (412) 317-0088 with the replay passcode 10143972. The replay will also be available for one week on the Fluent website at investors.fluentco.com.
About Fluent, Inc.
Fluent (NASDAQ: FLNT) is a leading performance marketing company with expertise in creating meaningful connections between consumers and brands. Leveraging our proprietary first-party database of opted-in consumer profiles, Fluent drives intelligent growth strategies that deliver superior outcomes. Founded in 2010, the company is headquartered in New York City. For more information, visit www.fluentco.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The matters contained in this press release may be considered to be “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Those statements include statements regarding the intent, belief or current expectations or anticipations of Fluent and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: compliance with a significant number of governmental laws and regulations, including those laws and regulations regarding privacy and data; failure to safeguard the personal information and other data contained in our database; failure to compete effectively against other online marketing and advertising companies; dependence on third-party publishers, internet search providers and social media platforms for a significant portion of visitors to our websites; dependence on our key personnel; dependence on emails, text messages and telephone calls, among other channels, to reach users for marketing purposes; competition we face for web traffic; ability to compete and manage media costs in an industry characterized by rapidly-changing internet media and advertising technology, evolving industry standards, regulatory uncertainty, and changing user and client demands; liability related to actions of third-party publishers; limitations on our or our third-party publishers’ ability to collect and use data derived from user activities; ability to remain competitive with the shift of online interactions from computers to mobile devices; dependence on third-party service providers; management of the growth of our operations, including the integration of the AdParlor business and other acquired business units or personnel; management of unfavorable publicity and negative public perception about our industry; failure to meet our clients’ performance metrics or changing needs; failure to detect click-through or other fraud on advertisements; achievement of some or all of the benefits that we expect to achieve as a stand-alone company; failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; compliance with the covenants of our credit agreement; and the potential for failures in our internal control over financial reporting. These and additional factors to be considered are set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and in our other filings with the Securities and Exchange Commission. Fluent undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.
