Fluent, Inc. reported a revenue decline of 15% for the fiscal year ending December 31, 2024, totaling $254.6 million compared to $298.4 million in 2023. The company also recorded a net loss of $29.3 million, a significant improvement from the previous year's loss of $63.2 million. Adjusted EBITDA for the year was negative $5.6 million, contrasting with a positive $6.8 million in 2023. The decrease in revenue was primarily attributed to challenges in the owned and operated (O&O) marketplaces, particularly due to a reduction in media supply and changes in business practices following a Federal Trade Commission (FTC) Consent Order.
In terms of operational changes, Fluent has focused on enhancing its Commerce Media Solutions, which generated $41.3 million in revenue for 2024, up from $10.7 million in 2023. This growth reflects the company's strategic shift to embed ad-serving technology in partner sites and mobile apps, allowing for better consumer engagement and higher return on advertising spend (ROAS) for clients. The company has also implemented a Traffic Quality Initiative to improve the quality of traffic to its O&O sites, although this has led to a decline in user registrations and overall traffic volume.
Fluent's workforce has seen a reduction, with employee headcount decreasing by 24% to 210 as of December 31, 2024. This reduction is part of ongoing efforts to align resources with strategic initiatives and improve profitability. The company has also divested non-core business units and is considering further divestitures to streamline operations. As of the end of 2024, Fluent had cash and cash equivalents of approximately $10.7 million, down from $15.8 million in 2023, raising concerns about its liquidity and ability to meet financial covenants under its SLR Credit Agreement.
Looking ahead, Fluent anticipates that the growth of its Commerce Media Solutions will offset declines in its O&O marketplaces. However, the company has expressed substantial doubt about its ability to continue as a going concern, citing the need for additional capital and the potential for further operational challenges. The management has indicated that it may need to consider strategic alternatives, including restructuring or seeking additional financing, to navigate the current economic landscape and regulatory environment.
About Fluent, Inc.
Fluent, Inc. is a leading digital marketing services provider specializing in customer acquisition through scalable campaigns. The company connects over 500 brands with consumers via its owned media properties and performance marketplaces. With a $300 billion market opportunity in performance marketing, Fluent targets diverse industries, including media, finance, and healthcare. Key innovations include a proprietary technology platform and a focus on first-party data, enhancing client engagement and campaign effectiveness.
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