Fluent, Inc. reported a revenue decline of 15% for the first quarter of 2024, generating $65.98 million compared to $77.25 million in the same period last year. The company also recorded a net loss of $6.28 million, or $0.45 per share, significantly improving from a net loss of $31.94 million, or $2.34 per share, in the prior year. The gross profit, excluding depreciation and amortization, decreased slightly to $18.64 million, representing 28% of revenue, while media margin increased by 1% to $22.14 million, accounting for 33.6% of revenue.
The financial performance reflects a strategic shift as Fluent navigates a challenging macroeconomic environment and regulatory landscape. The decrease in revenue was primarily attributed to a contraction in the company's owned and operated marketplaces, influenced by reduced spending from key clients in sectors such as Media & Entertainment and Retail & Consumer. However, the company noted growth in its new syndicated performance marketplaces, which partially offset the revenue decline.
Operationally, Fluent has made significant changes, including a 1-for-6 reverse stock split effective April 11, 2024, aimed at improving its stock price and market perception. The company also reported a reduction in employee headcount, with 20 employees terminated in both the first quarter of 2023 and 2024, as part of efforts to align resources with strategic initiatives. As of March 31, 2024, Fluent had cash and cash equivalents of $11.66 million, down from $15.80 million at the end of 2023, raising concerns about its ability to meet future obligations.
Looking ahead, Fluent has initiated a private placement to raise $10 million in gross proceeds, which is expected to provide additional liquidity. The company is also in discussions with its lenders regarding potential remedies for future covenant compliance under its new SLR Credit Agreement. Despite these efforts, management has expressed substantial doubt about the company's ability to continue as a going concern over the next year, given the ongoing challenges in achieving financial targets and the potential for further declines in revenue.
In summary, Fluent, Inc. is navigating a complex landscape marked by revenue declines and strategic adjustments. The company is focusing on enhancing its operational efficiency and exploring new revenue streams while addressing the challenges posed by regulatory changes and market conditions.
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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