AI adtech firm Inuvo Q3 revenue misses estimates
Inuvo's Q3 revenue rose 1% but missed analyst expectations, totaling $22.60 million against a consensus of $25.38 million. The net loss narrowed to $1.7 million, beating estimates. Adjusted EPS also exceeded expectations. The company onboarded 23 new clients, contributing to revenue growth, but faced revenue constraints due to reduced advertising. Operating expenses declined due to lower marketing spend. Analysts maintain a "buy" rating, with a median 12-month price target of $11.75, significantly above its recent closing price of $2.98.
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Overview
- Inuvo Q3 revenue rose 1% but missed analyst expectations
- Net loss for Q3 narrowed to $1.7 mln, beating analyst estimates
- Adjusted EPS for Q3 beat consensus, despite lower gross margin
Outlook
- Company did not provide specific financial guidance for future quarters in its press release
Result Drivers
- NEW CLIENTS - 23 new clients onboarded in Q3 contributed to revenue growth
- ADVERTISING REDUCTION - Revenue growth restrained by reduced advertising to comply with major client’s new requirements
- OPERATING EXPENSES - Operating expenses declined due to reduced marketing spend related to revenue mix changes
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Miss $22.60 $25.38
Revenue mln mln (3
Analysts
)
Q3 EPS Beat -$0.12 -$0.14
(3
Analysts
)
Q3 Net Beat -$1.70 -$1.79
Income mln mln (3
Analysts
)
Q3 Gross 73.40%
Margin
Q3 Gross $16.60
Profit mln
Q3 $18.20
Operatin mln
g
Expenses
Analyst Coverage
- The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 4 “strong buy” or “buy”, no “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the software peer group is “buy”
- Wall Street’s median 12-month price target for Inuvo Inc is $11.75, about 74.6% above its November 5 closing price of $2.98
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
