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1. Company Snapshot

1.a. Company Description

Inuvo, Inc., a technology company, develops and sells information technology solutions in the United States.The company's platforms identify and message online audiences for various products or services across devices, formats, and channels, including video, mobile, connected TV, linear TV, display, social, search, and native.Its platforms optimizes the purchase and placement of advertising in real time.


The company's products and services include ValidClick that provides marketing and advertising services, as well as collection of data, analytics, software, and publishing gets used to align merchant advertising messages with anonymous consumers across various websites online; and IntentKey, an artificial intelligence-based consumer intent recognition system designed to reach targeted mobile and desktop in-market audiences.It also operates a collection of websites under the Bonfire Publishing brand, which creates content across a range of topics, including health, finance, travel, careers, auto, education, and lifestyle categories.The company's marketing channels consist of websites, social media, blogs, public relations, trade shows, and conferences.


Inuvo, Inc.was incorporated in 1987 and is headquartered in Little Rock, Arkansas.

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1.b. Last Insights on INUV

Inuvo, Inc.'s recent performance was negatively impacted by a wider-than-expected quarterly loss of $0.12 per share, missing revenue estimates. The company's Q3 2025 earnings call highlighted challenges, but also emphasized growth initiatives, such as the appointment of Rob Buchner as COO to accelerate growth of IntentKey. However, the introduction of IntentPath, an enhanced audience visualization tool, showcases the company's innovative capabilities. These mixed developments have influenced the company's short-term outlook. (Source: Q3 2025 earnings release)

1.c. Company Highlights

2. Inuvo's Q3 2025 Earnings: A Mixed Bag

Inuvo, Inc. reported $22.6 million in revenue for the third quarter of 2025, roughly flat year-over-year, but a 25% year-over-year growth through the first 9 months. The company's gross margin declined to 73.4%, resulting in a gross profit of $16.6 million. Operating expenses totaled $18.2 million, down 16% year-over-year. Adjusted EBITDA was a loss of $670,000, and net loss narrowed to $1.7 million or $0.12 per share, missing analyst estimates of -$0.09 per share.

Publication Date: Nov -29

📋 Highlights
  • Q3 Revenue Growth:: $22.6M revenue, flat YoY, but 25% growth through 9 months 2025.
  • Segment Performance:: Platforms revenue dropped to $18.7M YoY, while Agencies/Brands rose 7% to $3.9M.
  • Gross Margin Decline:: Gross margin fell to 73.4% due to $6M cost of revenue increase, with $16.6M gross profit.
  • Future Growth Catalysts:: 44 self-service clients, $3.4M cash, and a pending $M+ class action payout in Q1 2026.

Revenue Mix and Client Base

The company's Platforms segment revenue was $18.7 million, down from $18.8 million last year, while Agencies and Brands revenue was $3.9 million, a 7% increase over last year. Inuvo's CEO, Richard Howe, noted that Q3 results fell short of expectations due to a deliberate reduction in advertising spend starting in mid-August to align with updated requirements from its largest Platform client. The top 5 Agency and Brand clients are projected to grow over 65% this year.

Product Enhancements and Growth Prospects

Inuvo has made significant investments in its IntentKey product, including a new audience discovery portal and predictive indicators for audience size and sentiment trends. The company's self-service business continues to gain momentum, with 44 clients using its self-service product, representing future growth potential with high margins. A major government contract is pending, and the company expects a cash payout in Q1 2026 related to a settled class action lawsuit.

Valuation and Outlook

With a P/S Ratio of 0.43 and an EV/EBITDA of -12.06, the market appears to be pricing in a significant improvement in Inuvo's financial performance. Analysts estimate next year's revenue growth at 14.6%. Given the company's strong pipeline and high-profile brands, Inuvo remains optimistic about achieving its revenue goals for 2025. The expected payout from the settled class action lawsuit in Q1 2026 is an additional positive catalyst.

3. NewsRoom

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Inuvo Launches Ranger: AI Tool for Ad Quality and Compliance

Dec -03

Source: globenewswire.com

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Inuvo Introduces IntentPath for Next-Level Audience Visualization

Nov -18

Source: globenewswire.com

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Inuvo, Inc. (INUV) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Inuvo, Inc (INUV) Reports Q3 Loss, Misses Revenue Estimates

Nov -07

Source: zacks.com

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Inuvo to Host Third Quarter 2025 Financial Results Conference Call on Thursday, November 6th at 4:15 P.M. ET

Oct -30

Source: globenewswire.com

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Inuvo to Present at the LD Micro Main Event XIX

Oct -06

Source: newsfilecorp.com

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Inuvo Appoints Rob Buchner as Chief Operating Officer to Accelerate Growth of IntentKey

Oct -01

Source: globenewswire.com

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Inuvo, Inc. (INUV) Q2 2025 Earnings Call Transcript

Aug -09

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.07%)

6. Segments

Information Technology Solutions

Expected Growth: 12.07%

Inuvo's 12.07% growth in Information Technology Solutions is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. The company's innovative AI-powered solutions, strategic partnerships, and expanding presence in high-growth markets also contribute to its growth momentum.

7. Detailed Products

ValidClick

A patented, AI-powered ad fraud detection and prevention platform that helps advertisers and publishers to identify and block fraudulent traffic in real-time.

IntentKey

A proprietary, AI-powered keyword discovery and optimization platform that helps advertisers and publishers to identify and target high-value keywords and audiences.

Algos

A suite of AI-powered algorithms that help advertisers and publishers to optimize their ad campaigns for better ROI and conversions.

Syndicated Data

A proprietary, AI-powered data platform that provides advertisers and publishers with access to high-quality, actionable data and insights.

8. Inuvo, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Inuvo, Inc. operates in the digital marketing and analytics industry, where there are many substitutes available. However, the company's proprietary technology and expertise in AI-powered marketing solutions provide a competitive edge, reducing the threat of substitutes.

Bargaining Power Of Customers

Inuvo, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's solutions are often customized to meet specific customer needs, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Inuvo, Inc. has a diversified supply chain, which reduces the bargaining power of individual suppliers. The company's technology-driven business model also reduces its dependence on suppliers, further minimizing their bargaining power.

Threat Of New Entrants

The digital marketing and analytics industry is highly competitive, and new entrants can easily enter the market with innovative solutions. Inuvo, Inc. needs to continuously innovate and invest in research and development to stay ahead of new entrants.

Intensity Of Rivalry

The digital marketing and analytics industry is highly competitive, with many established players and new entrants vying for market share. Inuvo, Inc. needs to differentiate its solutions and focus on customer retention to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.27%
Debt Cost 3.95%
Equity Weight 94.73%
Equity Cost 10.44%
WACC 10.10%
Leverage 5.56%

11. Quality Control: Inuvo, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Emerald Holding

A-Score: 4.4/10

Value: 4.2

Growth: 2.9

Quality: 6.5

Yield: 1.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Inuvo

A-Score: 4.1/10

Value: 6.2

Growth: 3.9

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
QuinStreet

A-Score: 3.8/10

Value: 3.9

Growth: 7.6

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Innovid

A-Score: 3.7/10

Value: 3.2

Growth: 4.7

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
National CineMedia

A-Score: 3.6/10

Value: 6.0

Growth: 2.4

Quality: 4.2

Yield: 5.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Cardlytics

A-Score: 2.7/10

Value: 8.8

Growth: 3.0

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.75$

Current Price

2.75$

Potential

-0.00%

Expected Cash-Flows