Fluent, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2023, with total revenue falling 17% to $298.4 million, down from $361.1 million in 2022. The company also recorded a net loss of $63.2 million, or $0.77 per share, compared to a net loss of $123.3 million, or $1.51 per share, in the previous year. Adjusted EBITDA decreased by 70% to $6.8 million, reflecting the challenges faced in the digital marketing landscape, particularly in the Media & Entertainment and subscription sectors.
The decline in revenue was attributed to a contraction in the company's owned and operated marketplaces, influenced by a challenging macroeconomic environment and reduced spending from key clients. Additionally, regulatory changes stemming from a Federal Trade Commission (FTC) consent order impacted business practices and revenue generation. However, the company noted that enhanced customer relationship management capabilities and the launch of new syndicated performance marketplaces partially offset these declines.
Operationally, Fluent served over 500 consumer brands and agencies across various industries, with approximately 90% of user engagement occurring on mobile devices. The company has focused on improving the quality of traffic to its media properties through a Traffic Quality Initiative and has expanded its ad network to include new syndicated performance marketplaces. As of December 31, 2023, Fluent employed 277 individuals, a slight increase from the previous year, reflecting ongoing efforts to streamline operations and enhance workforce efficiency.
Looking ahead, Fluent anticipates continued economic challenges in the first half of 2024 but projects potential improvement in the latter half of the year. The company plans to diversify its client base and further develop its return on advertising spend (ROAS) program to attract additional budget allocations from advertisers. Despite the current headwinds, Fluent aims to leverage its compliance measures and improved operational practices to regain market share and enhance profitability in the future.
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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