Archive for March, 2013

Inuvo Reports Q4 2012

Inuvo reported a mixed quarter with revenue essentially in line with estimates, the bottom line slightly below estimates but good guidance for Q1.  The ALOT business was lagging as the new requirements for all Google Network partners caused Inuvo to take a conservative approach to marketing the Appbar in anticipation of the changes and to allow time to properly assess the impact on acquisition cost and the lifetime value of acquired appbar users.  The good news in this is two fold 1) CEO Howe indicated that the Google Contract extension was in most material respects the same as we previously operated under and 2) the company was able to achieve a very strong overall revenue figure in spite of the pullback that was necessary with the ALOT Appbar marketing.  This suggests the potential for strong revenue growth in Q2 as the ALOT marketing machine moves back into full gear after another month or so to assess the Google changes.  

In addition to providing color beyond the specifics mentioned in the PR, several exciting developments were discussed on the conference call:

1) the company expects to be back on a growth trajectory with ALOT in Q2.  

2) the company is currently ahead of the projections given to NYSE in December

3) the company expects to achieve profitability in CY 2013

4) Inuvo is developing a new version of the Appbar for the Chrome browser

5) Mobile traffic for the Network segment increased from 5% of total in January 2012 to 25% of total in January 2013

6) Bargain Match currently has over 150k active users and the Bargain Match App is being offered with every Alot Appbar download

7) Big expansion planned for into European markets.

While the released numbers would best be described as a mixed bag, it appears that Inuvo is making strides towards profitability and that several of the new developments offer the potential for significant upside over the course of 2013. We would not be surprised to see near term volatility in Invuo’s stock price,but would see any weakness in the shares over the period between now and the reporting of Q2 to be an opportunity to buy shares that will be worth substantially more by year end.  

March 14, 2013 at 7:33 am Leave a comment

Enter your email address to follow this blog and receive notifications of new posts by email.