Fluent, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a continued decline in revenue and profitability compared to the same periods in 2023. For Q3 2024, the company generated revenue of $64.5 million, a decrease of 3% from $66.2 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $189.2 million, down 16% from $225.6 million in the prior year. The decline in revenue is attributed to challenges in media supply and regulatory pressures impacting the company's digital media properties.
Despite the revenue drop, Fluent reported a significant reduction in net loss. The net loss for Q3 2024 was $7.9 million, or $0.48 per share, compared to a net loss of $33.6 million, or $2.43 per share, in Q3 2023. For the nine-month period, the net loss was $25.8 million, down from $61.3 million in the same period last year. This improvement in net loss is largely due to a decrease in goodwill impairment charges, which fell from $29.7 million in Q3 2023 to zero in Q3 2024, and from $55.4 million to $1.3 million for the nine-month periods.
Total costs and expenses for Q3 2024 were $68.4 million, significantly lower than $100.2 million in Q3 2023. The reduction in costs was driven by lower cost of revenue and operational expenses, reflecting the company's efforts to streamline operations. Adjusted EBITDA for Q3 2024 was negative $0.1 million, an improvement from negative $1.7 million in Q3 2023.
Fluent's balance sheet showed a decline in total assets, which decreased to $95.9 million as of September 30, 2024, from $111.9 million at the end of 2023. Current liabilities increased to $70.4 million, up from $49.2 million, while total shareholders' equity fell to $20.0 million from $34.4 million. The company also reported a significant reduction in long-term debt, which decreased to $0.5 million from $25.5 million, following the repayment of the Citizens Term Loan.
Strategically, Fluent has faced funding challenges due to its declining financial performance and has entered into a credit agreement requiring compliance with financial covenants. The company has made workforce reductions and is considering further cost-cutting measures, including potential divestments of non-core business units. Additionally, Fluent is exploring opportunities for acquisitions to enhance its offerings, although management has expressed substantial doubt about the company's ability to continue as a going concern over the next year.
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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