Fluent, Inc. reported a revenue increase of 10% for the fiscal year ended December 31, 2022, reaching $361.1 million compared to $329.3 million in 2021. However, the company experienced a significant net loss of $123.3 million, a sharp decline from the previous year's loss of $10.1 million. This loss was primarily attributed to a goodwill impairment charge of $111.1 million and a write-off of intangible assets totaling $186.4 million. Adjusted EBITDA for the year was $22.7 million, slightly down from $23.2 million in 2021, indicating a challenging year despite revenue growth.
The company noted several strategic developments during the year, including the acquisition of True North Loyalty, LLC, which was completed on January 1, 2022. This acquisition is expected to enhance Fluent's capabilities in e-commerce and customer engagement. Additionally, Fluent has focused on improving the quality of traffic to its digital media properties through its Traffic Quality Initiative (TQI), which aims to attract higher-quality users and improve monetization. The company also expanded its customer relationship management capabilities, particularly through email and SMS marketing, to re-engage existing users.
Operationally, Fluent's user engagement metrics showed that approximately 90% of its users accessed its media properties via mobile devices. The company reported a total employee count of 275 as of December 31, 2022, reflecting a 3.8% increase from the previous year. However, the company faced challenges in its employment opportunities marketplace, which was impacted by a technology platform migration and broader economic conditions. The gaming sector emerged as a significant revenue contributor, accounting for 35% of total revenue, with one gaming client alone representing 22.1% of consolidated revenue, up from 11.7% in 2021.
Looking ahead, Fluent anticipates continued economic uncertainty and challenges in the digital marketing landscape. The company plans to diversify its client base and enhance its return on advertising spend (ROAS) programs to secure additional budget allocations from advertisers. Fluent's management remains focused on improving operational efficiencies and adapting to evolving market conditions, with an emphasis on maintaining a sustainable growth trajectory despite the current economic headwinds.
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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