AI-powered marketing solutions provider Inuvo soars on record fourth-quarter revenue
Quotes on Inuvo, a small-cap provider of AI-powered marketing technology, soared more than 19% yesterday, Tuesday, January 21, after the company reported 26% year-over-year growth in preliminary revenue for the fourth quarter of 2024 to a record $26 million.
Details
Yesterday, Inuvo stock jumped more than 19% on the New York Stock Exchange to $0.53 per share. While it is up by a third over the last 12 months, it is still trading well below its peak of $0.72 per share, reached at the close on January 3, a day when no company news was released.
Earlier in the day yesterday, Inuvo disclosed its preliminary revenue estimate for the fourth quarter of 2024, at $26 million, for a 26% year-over-year increase. The company said both figures are records.
“As discussed during our third-quarter conference call, we anticipated a double-digit increase in fourth-quarter revenue, as well as a near breakeven adjusted EBITDA for the quarter. While the audit of our results has not yet been completed, we believe the optimism we expressed in November was well-founded,” said CEO Richard Howe, as quoted in the company’s press release.
Inuvo has not issued guidance for 2024 full-year revenue. However, based on previously disclosed numbers, the top line looks set to be $83.6 million. For context, the company posted $73.9 million in revenue in 2023.
The company plans to release detailed financials in late February.
About Inuvo
Founded nearly 40 years ago, Inuvo initially provided services to the oil and gas industry. When the prospects for that business dimmed, Inuvo ceased operations for four years (1993-1997) before eventually shifting its focus to the advertising market, where it aggressively acquired industry players.
Inuvo claims that its flagship product, IntentKey, can target audiences without using cookies, thus avoiding the collection of confidential user data, which is increasingly regulated by governments. At the same time, advertising technology is changing, too.
The company claims to be the only company in the world to commercialize large-language generative AI for audience identification, targeting, and measurement in advertising.
Advertising beyond Google and Facebook is a $200 billion market, where hundreds of companies depend on consumer identification, notes Inuvo. With IntentKey, the company believes it can capture a significant market share and set the standard in advertising technology.
Analyst recommendations
According to MarketWatch, the three analysts who cover Inuvo unanimously rate it a “buy.” Their average target price of $0.95 per share implies upside of almost 80%.
