• Revenue: $65.4 million in Q4 2024, a decrease of 10% from the prior year.
• Commerce Media Solutions Revenue: Increased 139% to $17.2 million in Q4 2024; full year revenue totaled $41.3 million, up 284% from 2023.
• Owned and Operated Revenue: Decreased 23% in Q4 2024 compared to the prior year; full year decrease of 29% from 2023.
• Media Margin: $16.5 million in Q4 2024, representing 25.3% of revenue, down from 33.1% in the prior year.
• Commerce Media Solutions Media Margin: $6.8 million or 39.3% of revenues in Q4 2024, up from 18.5% in Q4 2023.
• Operating Expenses: $16.9 million in Q4 2024, a decrease of $2.9 million from Q4 2023.
• Adjusted EBITDA: Negative $1.7 million in Q4 2024, compared to positive $2.5 million in Q4 2023.
• Net Loss: $3.4 million in Q4 2024, compared to a net loss of $1.9 million in the prior year period.
• Cash and Cash Equivalents: $10.7 million as of December 31, 2024.
• Total Debt: $31.9 million as of December 31, 2024.

• Warning! GuruFocus has detected 5 Warning Signs with FLNT.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fluent Inc (NASDAQ:FLNT) achieved 139% growth in Commerce Media Solutions revenue in Q4 2024 compared to Q4 2023, and 284% growth for the full year.
• The Commerce Media Solutions business surpassed an annual revenue run rate of over $60 million as of December 31, 2024.
• Fluent Inc (NASDAQ:FLNT) expects strong, year-over-year, triple-digit revenue growth in Commerce Media Solutions throughout 2025.
• The company has established several key partnerships with leading brands, enhancing its market position.
• Fluent Inc (NASDAQ:FLNT) is leveraging its proprietary first-party data and AI-powered technology to drive growth in the Commerce Media segment.

Negative Points

• Fluent Inc (NASDAQ:FLNT) reported a 10% decrease in total revenue for Q4 2024 compared to the prior year.
• The company's media margin decreased to 25.3% of revenue in Q4 2024 from 33.1% in the previous year.
• Adjusted EBITDA was negative $1.7 million in Q4 2024, compared to a positive $2.5 million in Q4 2023.
• Fluent Inc (NASDAQ:FLNT) faced significant increases in media costs due to the US presidential election, impacting profitability.
• The discontinuation of the ACA portion of the Call Solutions business led to a $2.5 million non-recurring write-down of revenue.

Q & A Highlights

Q: With Fluent's Commerce Media Solutions (CMS) reaching a $60 million run rate, what is the expected pace of growth, and do you have the necessary infrastructure to scale further? A: Donald Patrick, CEO: We started CMS in Q1 2023, leveraging our strong assets from the owned and operated business. We expect triple-digit growth in 2025 and 2026, driven by the transformative nature of commerce media and our competitive advantages. Our infrastructure, built over 14 years, supports this growth, and our investments in technology and analytics have positioned us well for continued expansion.

Q: Regarding the owned and operated (O&O) segment, is there a portion of the $168 million revenue that is more durable, and can it return to growth? A: Donald Patrick, CEO: The O&O segment is a competitive advantage but not a growth engine. We aim to stabilize it and leverage its assets. Regulatory changes and strategic priorities have shifted our focus to commerce media, where we see greater opportunities.

Q: How does the call center business fit into Fluent's strategy, especially after stepping away from the ACA marketplace? A: Donald Patrick, CEO: The call center is part of our agency services, not the O&O business. It expands our marketplace by directing consumers to high-value categories. Despite challenges from regulatory changes and media costs, we have a plan to diversify and continue growing this business.

Q: How does the softness in O&O affect the data used to support CMS, and is there an inflection point where CMS can grow independently? A: Donald Patrick, CEO: While O&O traffic has decreased, our 14-year database remains valuable for CMS. We expect CMS to drive double-digit growth in the second half of the year, marking an inflection point for Fluent's overall growth.

Q: Can you expand on the pipeline for CMS, including the size and potential impact of prospects? A: Donald Patrick, CEO: Our pipeline is growing significantly, providing visibility for triple-digit growth in 2025. We have a mix of large and small prospects, with some transformative partnerships that could accelerate growth. However, we do not rely on these large deals for our forecasts.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.