Inuvo Q2 revenue misses on Legacy Search decline
INUV•Revenue and loss miss estimates
Inuvo said second-quarter revenue fell sharply, missing analyst expectations, while both net loss and loss per share also missed estimates.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Miss | $7.50 mln | $9.20 mln (5 Analysts) |
| Q2 Loss Per Share | Miss | $0.27 | $0.11 (5 Analysts) |
| Q2 Net Loss | Miss | $4 mln | $1.59 mln (5 Analysts) |
| Q2 Operating Expenses | $6.40 mln |
Analyst coverage and price target
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the software peer group is "buy". Wall Street's median 12-month price target for Inuvo Inc is $4.00, about 292.2% above its August 10 closing price of $1.02.
Audience Modeling growth offsets Legacy Search decline
Audience Modeling revenue grew 19% year over year as the company pivots to its IntentKey platform.
The company said the 80% year-over-year drop in Legacy Search revenue was due to a strategic reset of the Bonfire platform and ongoing industry changes. Audience Modeling growth was driven by recent client wins and increased investment from existing IntentKey customers. Operating expenses fell 67% year over year due to lower marketing and compensation costs linked to reduced Legacy Search revenue.
