Fluent Announces First Quarter 2022 Financial Results

• Q1 2022 income of $89.1 million, up 27% over Q1 2021

• Web lack of $2.0 million, or $0.02 per share

• Gross revenue (unique of depreciation and amortization) of $21.5 million, a rise of 12% over Q1 2021 and representing 24.1% of income for the three months ended March 31, 2022

• Media margin of $26.0 million, up 4% over Q1 2021 and representing 29.1% of income for the three months ended March 31, 2022

• Adjusted EBITDA of $4.8 million, representing 5.3% of income for the three months ended March 31, 2022

• Adjusted web revenue of $1.1 million, or $0.01 per share

NEW YORK, Might 09, 2022 (GLOBE NEWSWIRE) — Fluent, Inc. (NASDAQ: FLNT), a number one data-driven efficiency advertising firm, at present reported monetary outcomes for the primary quarter ended March 31, 2022.

Don Patrick, Fluent’s Chief Govt Officer, commented, “Our First Quarter outcomes symbolize the continued progress we’re making in the direction of our long-term strategic progress plan – targeted on constructing prime quality digital experiences for shoppers whereas creating simpler, environment friendly, and scalable buyer acquisition options for entrepreneurs. We proceed to lean into alternatives the place we are able to set up and leverage Fluent model credentials within the market.

We stay assured that this consumer-centric technique represents the profitable highway ahead and enhances our aggressive benefit, and in the end constructing enterprise worth for our stakeholders. It’s foundational that Fluent creates significant downstream experiences for our shoppers and increasing {our relationships} with world-class manufacturers in key business verticals; whereas efficiently positioning us as leaders in an business setting that continues to quickly evolve.”

First Quarter Monetary Abstract

• Q1 2022 income of $89.1 million, up 27% over Q1 2021

• Web lack of $2.0 million or $0.02 per share, in comparison with web lack of $6.3 million, or $0.08 per share, in Q1 2021

• Gross revenue (unique of depreciation and amortization) of $21.5 million, a rise of 12% over Q1 2021 and representing 24.1% of income for the three months ended March 31, 2022

• Media margin of $26.0 million, a rise of 4% over Q1 2021 and representing 29.1% of income for the three months ended March 31, 2022

• Adjusted EBITDA of $4.8 million, representing 5.3% of income for the three months ended March 31, 2022

• Adjusted web revenue of $1.1 million, or $0.01 per share

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Media margin, adjusted EBITDA and adjusted web revenue are non-GAAP monetary measures, as outlined and reconciled under.

Enterprise Outlook

• Strategic shopper relationships driving sturdy demand within the Fluent efficiency market

• Monetization, as measured by media margin per registration, is up 50% in Q1’22 vs. Q1’21 enabled by improved high quality of visitors, enhanced CRM capabilities and investments in know-how and analytics

• Growing media footprint whereas extending our attain into new media channels growth to supply extra related content material and presents for shoppers and our manufacturers

• Newer income streams are producing incremental progress alternatives and enhancing lifetime worth of shoppers on our platform, decreasing reliance on visitors quantity for income progress

• We anticipate continued progress, with enhanced shopper experiences and media optimizations yielding margin growth over time

Convention Name

Fluent, Inc. will host a convention name on Monday, Might 9, 2022, at 4:30 PM ET to debate its 2022 first quarter monetary outcomes. To hearken to the convention name in your phone, please dial (844) 200-6205 (US), (226) 828-7575 (Canada), or +1 (929) 526-1599 for worldwide callers, and use the participant entry code 796097. To entry the reside audio webcast, go to the Fluent web site at buyers.fluentco.com. Please login a minimum of quarter-hour previous to the beginning of the decision to make sure sufficient time for any downloads that could be required. Following completion of the earnings name, a recorded replay of the webcast might be obtainable for these unable to take part. To hearken to the phone replay, please dial (929) 458-6194 (US), (226) 828-7578 (Canada) or +44 204-525-0658 with the replay passcode 911823. The replay will even be obtainable for one week on the Fluent web site at buyers.fluentco.com.

About Fluent, Inc.

Fluent (NASDAQ: FLNT) is a number one data-driven efficiency advertising firm with experience in creating significant connections between shoppers and types. Leveraging our proprietary first-party database of opted-in shopper profiles, Fluent drives clever progress methods that ship superior outcomes. Based in 2010, the corporate is headquartered in New York Metropolis. For extra data, go to www.fluentco.com.

Secure Harbor Assertion Below the Personal Securities Litigation Reform Act of 1995

The issues contained on this press launch could also be thought-about to be “forward-looking statements” inside the which means of the Securities Act of 1933 and the Securities Change Act of 1934. These statements embrace statements relating to the intent, perception or present expectations or anticipations of Fluent and members of our administration crew. Components at the moment identified to administration that would trigger precise outcomes to vary materially from these in forward-looking statements embrace the next:

• Compliance with a major variety of governmental legal guidelines and laws, together with these legal guidelines and laws relating to privateness and knowledge;

• The result of litigation, regulatory investigations or different authorized proceedings during which we’re concerned or could change into concerned; failure to safeguard the non-public data and different knowledge contained in our database;

• Failure to adequately defend mental property rights or allegations of infringement of mental property rights;

• Unfavorable world financial circumstances, together with on account of well being and security considerations across the ongoing COVID-19 pandemic;

• Dependence on our key personnel;

• Dependence on third-party service suppliers;

• Administration of the expansion of our operations, together with worldwide growth and the mixing of acquired enterprise models or personnel;

• The influence of the Visitors High quality Initiative, together with our means to exchange decrease high quality shopper visitors with visitors that meets our high quality necessities;

• Means to compete and handle media prices in an business characterised by rapidly-changing web media and promoting know-how, evolving business requirements;

• Regulatory uncertainty, and altering consumer and shopper calls for; administration of unfavorable publicity and damaging public notion about our business;

• Failure to compete successfully towards different on-line advertising and promoting firms;

• The competitors we face for net visitors;

• Dependence on third-party publishers, web search suppliers and social media platforms for a good portion of tourists to our web sites;

• Dependence on emails, textual content messages and phone calls, amongst different channels, to achieve customers for advertising functions;

• Legal responsibility associated to actions of third-party publishers;

• Limitations on our or our third-party publishers’ means to gather and use knowledge derived from consumer actions;

• Means to stay aggressive with the shift to cellular functions;

• Failure to detect click-through or different fraud on commercials;

• The influence of elevated success prices;

• Failure to fulfill our purchasers’ efficiency metrics or altering wants;

• Compliance with the covenants of our credit score settlement; and

• The potential for failures in our inner management over monetary reporting.

These and extra elements to be thought-about are set forth below “Threat Components” in our Annual Report on Kind 10-Okay for the fiscal yr ended December 31, 2021 and in our different filings with the Securities and Change Fee. Fluent undertakes no obligation to replace or revise forward-looking statements to mirror modified assumptions, the incidence of unanticipated occasions or modifications to future working outcomes or expectations.

Definitions, Reconciliations and Makes use of of Non-GAAP Monetary Measures

The next non-GAAP measures are used on this launch:

Media margin is outlined as that portion of gross revenue (unique of depreciation and amortization) reflecting variable prices paid for media and associated bills and excluding non-media price of income. Gross revenue (unique of depreciation and amortization) represents income minus price of income (unique of depreciation and amortization). Media margin can be introduced as proportion of income.

Adjusted EBITDA is outlined as web (loss) revenue excluding (1) revenue taxes, (2) curiosity expense, web, (3) depreciation and amortization, (4) share-based compensation expense, (5) loss on early extinguishment of debt, (6) accrued compensation expense for Put/Name Consideration, (7) goodwill impairment, (8) write-off of intangible property, (9) acquisition-related prices, (10) restructuring and different severance prices, and (11) sure litigation and different associated prices.

Adjusted web revenue is outlined as web (loss) revenue excluding (1) share-based compensation expense, (2) loss on early extinguishment of debt, (3) accrued compensation expense for Put/Name Consideration, (4) goodwill impairment, (5) write-off of intangible property, (6) acquisition-related prices, (7) restructuring and different severance prices, and (8) sure litigation and different associated prices. Adjusted web revenue can be introduced on a per share (primary and diluted) foundation.

Under is a reconciliation of media margin from web loss, which we imagine is probably the most immediately comparable GAAP measure.

^{(1) Represents the portion of price of income (unique of depreciation and amortization) not attributable to variable prices paid for media and associated bills.}

Under is a reconciliation of adjusted EBITDA from web loss, which we imagine is probably the most immediately comparable GAAP measure.

^{(1) Contains compensation expense associated to the non-competition agreements entered into on account of an acquisition.}

Under is a reconciliation of adjusted web revenue and adjusted web revenue per share from web (loss) revenue, which we imagine is probably the most immediately comparable GAAP measure.

^{(1) Contains compensation expense associated to the non-competition agreements entered into on account of an acquisition.}

We current media margin, as a proportion of income, adjusted EBITDA, adjusted web revenue and adjusted web revenue per share as supplemental measures of our monetary and working efficiency as a result of we imagine they supply helpful data to buyers. Extra particularly:

Media margin, as outlined above, is a measure of the effectivity of the Firm’s working mannequin. We use media margin and the associated measure of media margin as a proportion of income as main metrics to measure the monetary return on our media and associated prices, particularly to measure the diploma by which the income generated from our digital advertising providers exceeds the associated fee to draw the shoppers to whom presents are made by means of our providers. Media margin is used extensively by our administration to handle our working efficiency, together with evaluating operational efficiency towards budgeted media margin and understanding the effectivity of our media and associated expenditures. We additionally use media margin for efficiency evaluations and compensation choices relating to sure personnel.

Adjusted EBITDA, as outlined above, is one other main metric by which we consider the working efficiency of our enterprise, on which sure working expenditures and inner budgets are primarily based and by which, along with media margin and different elements, our senior administration is compensated. The primary three changes symbolize the standard definition of EBITDA, and the remaining changes are objects acknowledged and recorded below GAAP particularly intervals however is likely to be considered as not essentially coinciding with the underlying enterprise operations for the intervals during which they’re so acknowledged and recorded. These changes embrace sure litigation and different associated prices related to authorized issues exterior the unusual course of enterprise, together with prices and accruals associated to the Tax Division, NY AG and FTC issues. Gadgets are thought-about one-time in nature if they’re non-recurring, rare or uncommon and haven’t occurred previously two years or aren’t anticipated to recur within the subsequent two years, in accordance with SEC guidelines. There have been no changes for one-time objects within the intervals introduced.

Adjusted web revenue, as outlined above, and the associated measure of adjusted web revenue per share exclude sure objects which are acknowledged and recorded below GAAP particularly intervals however is likely to be considered as not essentially coinciding with the underlying enterprise operations for the intervals during which they’re so acknowledged and recorded. We imagine adjusted web revenue affords buyers a distinct view of the general monetary efficiency of the Firm than adjusted EBITDA and the GAAP measure of web (loss) revenue.

Media margin, adjusted EBITDA, adjusted web revenue and adjusted web revenue per share are non-GAAP monetary measures with sure limitations relating to their usefulness. They don’t mirror our monetary ends in accordance with GAAP, as they don’t embrace the influence of sure bills which are mirrored in our condensed consolidated statements of operations. Accordingly, these metrics aren’t indicative of our general outcomes or indicators of previous or future monetary efficiency. Additional, they don’t seem to be monetary measures of profitability and are neither supposed for use as a proxy for the profitability of our enterprise nor to indicate profitability. The way in which we measure media margin, adjusted EBITDA and adjusted web revenue is probably not akin to equally titled measures introduced by different firms and is probably not an identical to corresponding measures utilized in our varied agreements.

Contact Info:
Investor Relations
Fluent, Inc.
(212) 785-0431
InvestorRelations@fluentco.com