Fluent, Inc. Reports 34% Revenue Growth in Q2 2022 Despite Increased Net Loss

Fluent, Inc. reported significant financial results for the second quarter of 2022, with revenue reaching $98.4 million, a 34% increase from $73.4 million in the same period last year. For the first half of 2022, revenue totaled $187.4 million, up 31% from $143.5 million in the first half of 2021. Despite the revenue growth, the company experienced a net loss of $56.9 million, or $0.70 per share, compared to a net loss of $5.2 million, or $0.06 per share, in the prior year quarter. The increase in net loss was primarily attributed to a non-cash goodwill impairment charge of $55.4 million.

The company's operational metrics showed a notable increase in gross profit, which rose 69% to $28.3 million for the second quarter, representing 29% of revenue. Media margin also improved, increasing 60% to $32.3 million, or 32.8% of revenue. Adjusted EBITDA for the quarter was $9.4 million, reflecting a significant improvement from $1.9 million in the same quarter of 2021. The company’s adjusted net income was $0.6 million, or $0.01 per share, compared to an adjusted net loss of $1.9 million, or $0.02 per share, in the prior year.

Fluent's strategic initiatives included the acquisition of True North Loyalty, LLC, which was completed on January 1, 2022, for a total consideration of $2.3 million. This acquisition is expected to enhance Fluent's customer engagement capabilities. The company also continued to focus on improving the quality of its traffic through its Traffic Quality Initiative, which aims to reduce reliance on lower-quality affiliate traffic. This initiative has contributed to a more effective monetization strategy, allowing Fluent to engage users more effectively and expand its media footprint in both U.S. and international markets.

In terms of operational developments, Fluent reported a decrease in cash and cash equivalents to $26.4 million as of June 30, 2022, down from $34.5 million at the end of 2021. The company’s total liabilities decreased slightly to $103.0 million from $104.8 million at the end of 2021. Employee headcount remained stable, with no significant changes reported. The company continues to assess its strategic initiatives and partnerships to optimize its media channels and improve profitability.

Looking ahead, Fluent anticipates that its focus on high-quality traffic and enhanced customer relationship management will continue to drive revenue growth. The company plans to explore further acquisitions and investments in technology to support its growth strategy. However, it acknowledges the potential challenges posed by market dynamics and the evolving regulatory landscape in the digital marketing industry.