Inuvo Q2 Earnings Report Update

August 12, 2013 at 7:38 am Leave a comment

Inuvo reported Q2 earnings last week, surprising investors with a 2 cent GAAP profit when many (including us) were expecting a loss.  Comments on the previous quarterly conference call had caused most to assume correctly that the top line would decline sequentially, which it did, but the company still showed a 1.9% increase in total revenue over Q2 of 2012.  While Inuvo shares initially rallied on the report, the rally was met with fairly size-able selling volume by the back half of Friday’s session and the stock closed down 4.5% at 90 cents.  Given the trading that has occurred in Inuvo shares since the report was released before the market opened last Thursday morning, it would appear that investors have chosen to focus on the large decline in revenue for the Applications segment instead of the growth of the Network segment.  Inuvo appears to be continuing its Q1 trend of increased mobile activity and management mentioned several new initiatives in their quest to better leverage the company’s Google ties by expanding the ALOT platform to include new verticals like ALOT Health and others.  These initiatives have the potential to push the company farther into the black should the growth we saw in the Network division in Q2 accelerate, the Applications segment can stabilize and the company can maintain the lower expense structure they achieved in Q2.

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