Q1 2024 Fluent Inc Earnings Call Transcript
Key Points
- Fluent Inc (FLNT) is leveraging its leadership in owned and operated marketplaces to enter high-growth, high-margin performance marketplaces, which are expected to be margin accretive.
- The company reported a media margin increase to 33.6% of revenue, up nearly 500 basis points from the previous year, reflecting a strategic shift towards higher margin performance marketplaces.
- Fluent Inc (FLNT) is experiencing strong double-digit growth in new performance marketplaces like Adflow and call solutions, indicating successful expansion and market adoption.
- Despite overall revenue decline, the company is ahead of expectations in its new performance marketplaces, showing effective strategic execution.
- Fluent Inc (FLNT) has successfully attracted new Adflow partners in retail and ticketing, and expanded into the grocery vertical, demonstrating the ability to scale and diversify.
- Fluent Inc (FLNT) reported a 14.6% decline in revenue compared to Q1 2023, primarily due to the impact of the FTC settlement and strategic decisions to exit non-strategic businesses.
- The company faces significant headwinds including ongoing macroeconomic challenges and aggressive competition from rivals engaging in noncompliant marketing practices.
- Fluent Inc (FLNT) is experiencing seasonal impacts on its new performance marketplaces, leading to sequential quarterly declines which could affect short-term financial performance.
- There are ongoing challenges in the owned and operated marketplaces, with a need to manage expenses and navigate through competitive disadvantages due to compliance with FTC requirements.
- The company's strategic pivot to de-emphasize growth in owned and operated marketplaces in favor of performance marketplaces may involve risks and uncertainties in execution and market acceptance.
Good afternoon, and welcome. Thank you for joining us to discuss our first quarter 2024 earnings results. With me today are Fluent's CEO, Don Patrick; Interim CFO, Ryan Perfit; and Chief Strategy Officer, Ryan Schulke.
On our call today, we will begin with comments from Don and Ryan Perfit followed by a question-and-answer session. I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available following the call on our website. To access the webcast, please visit our Investor Relations page on our website at www.fluentco.com.
Before we begin, I would like to advise listeners that certain information discussed by management during this conference call will contain forward-looking statements covered under the Safe Harbor provision of the Private Security Litigation Reform Act of 1995. Any forward-looking statements made during this call speak only as of the date hereof. Actual results could differ materially from those stated or implied by our forward-looking statements
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