Revenue of $66.0 million for Q1 2024 Net loss of $6.3 million for Q1 2024 Gross profit (exclusive of depreciation and amortization) of $18.6 million for Q1 2024 Media margin of $22.1 million for Q1 2024 Adjusted EBITDA of $0.7 million for Q1 2024 Adjusted net loss of $4.2 million for Q1 2024     NEW YORK, May 15, 2024 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ:FLNT), a leading data-driven performance marketing company, today reported financial results for the first quarter ended March 31, 2024. Don Patrick, Fluent's Chief Executive Officer, commented, "For the quarter, we reported improved gross margins over last year with positive adjusted EBITDA as we continued to deliver both leading and emerging brands a broader suite of customer acquisition and partner monetization solutions. Our new syndicated performance marketplaces - a key strategic focus of ours - continue to be well received in the market and contributed positively to our gross margin performance in the quarter. As expected, our owned and operated markets are seeing softness in the first half of this year due to a challenging macroeconomic environment and media supply challenges partly stemming from changes in compliance practices in connection with our FTC consent order, which influenced reductions in spend by key clients in various sectors. We remain optimistic that this part of the business will stabilize in the back half of the year as we continue to set the standard for industry compliance on behalf of our clients." Mr. Patrick continued, "We continue to invest in our new performance marketplaces while strengthening our owned and operated business in line with the evolving industry landscape. The $10 million equity investment in Fluent from investors, including our founders, our largest shareholder, and me, announced today, provides additional capital, reduces dependence on our credit facility, and reflects confidence in our strategy to build a more valuable performance-based model for stakeholders." First Quarter Financial Highlights Revenue of $66.0 million, a decrease of 15%, compared to $77.3 million in Q1 2023 Net loss of $6.3 million, or $0.45 per share, compared to net loss of $31.9 million, or $2.34 per share, for Q1 2023 Gross profit (exclusive of depreciation and amortization) of $18.6 million, a decrease of 2% over Q1 2023 and representing 28% of revenue Media margin of $22.1 million, an increase of 1% over Q1 2023 and representing 33.6% of revenue Adjusted EBITDA of $0.7 million, an increase of $0.2 million over Q1 2023 and representing 1.0% of revenue Adjusted net loss of $4.2 million, or $0.30 per share, compared to adjusted net loss of $2.7 million, or $0.20 per share, for Q1 2023  Media margin, adjusted EBITDA, and adjusted net income (loss) are non-GAAP financial measures, as defined and reconciled below.  Business Outlook & Goals Industry challenges affecting the owned and operated business expected to drive further revenue retraction in Q2; Focused on fortifying and strengthening long-term performance of owned and operated marketplaces.  Maintain increased gross margins throughout 2024 consistent with Q1 and drive sequential and year-over-year revenue growth in the second half of the year by expanding our syndicated performance marketplaces, which leverage our advertiser and technology assets to drive enhanced results for our advertising partners in growing market segments. Leverage our leadership position with the new compliance standards we have set to level the industry playing field, create additional competitive differentiation, and increase market share.  Ensure we source customer traffic that meets our internal quality and regulatory requirements, leading to higher quality consumer engagement for our advertisers. Continue to be prudent in managing growth, margin, and investment initiatives to drive near breakeven adjusted EBITDA in Q2, high single-digit adjusted EBITDA margin in the second half of the year, and ultimately long-term shareholder value. The Company cannot provide a reconciliation of adjusted EBITDA to expected net income or net loss for the remaining periods of 2024 due to the unknown effect, timing, and potential significance of certain operating costs and expenses, share-based compensation expense, and the provision for (or benefit from) income taxes. Conference Call Fluent, Inc. will host a conference call on Wednesday, May 15, 2024, at 4:30 PM ET to discuss its 2024 first quarter financial results. The conference call can be accessed by phone after registering online at https://register.vevent.com/register/BI2eb363dbc16e4baab7d474635cfda70e. The call will also be webcast simultaneously on the Fluent website at https://investors.fluentco.com/. Following the completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please connect via https://edge.media-server.com/mmc/p/3mwjahv4. The replay will be available for one year, via the Fluent website https://investors.fluentco.com/. About Fluent, Inc. Fluent, Inc. (NASDAQ:FLNT) has been a leader in performance marketing since 2010, offering customer acquisition and partner monetization solutions that exceed client expectations. Leveraging untapped channels and diverse ad inventory across partner ecosystems and owned sites, Fluent connects brands with consumers at the most optimal moment, ensuring impactful engagement when it matters most. Constantly innovating and optimizing for performance, Fluent unlocks additional revenue streams for partners and empowers advertisers to acquire their most valuable customers at scale. For more insights visit https://www.fluentco.com/. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 The matters contained in this press release may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Those statements include statements regarding the intent, belief or current expectations or anticipations of Fluent and members of our management team. Factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: Compliance with a significant number of governmental laws and regulations, including those regarding telemarketing, text messaging, privacy and data; The financial impact of compliance changes to our business, including changes to our employment opportunities marketplace and programmatic advertising businesses, and whether and when our competitors will implement similar changes; The outcome of litigation, regulatory investigations, or other legal proceedings in which we may become involved in the future; Failure to safeguard the personal information and other data contained in our database; Unfavorable publicity and negative public perception about the digital marketing industry; Failure to adequately protect intellectual property rights or allegations of infringement of intellectual property rights; Unfavorable global economic conditions, including as a result of health concerns, terrorist attacks or civil unrest; Dependence on our key personnel and ability to attract or retain employees; Dependence on and liability related to actions of third-party service providers; A decline in the supply or increase in the price of media available; Ability to compete in an industry characterized by rapidly-evolving standards and internet media and advertising technology; Failure to compete effectively against other online marketing and advertising companies or respond to user demands; Competition for web traffic and dependence on third-party publishers, internet search providers, and social media platforms for a significant portion of visitors to our websites; Dependence on emails, text messages, and telephone calls, among other channels, to reach users for marketing purposes; Credit risk from certain clients; Limitations on our third-party publishers' ability to collect and use data derived from user activities; Ability to remain competitive with the shift to mobile applications; Failure to detect click-through or other fraud on advertisements; Fluctuation in fulfillment costs; Dependence on the gaming industry; Failure to meet our clients' performance metrics or changing needs; Pricing pressure by certain clients and the ability of our marketplace to respond through allocating traffic to higher paying clients; Potential limitations on the use of the revolving credit line under our credit agreement to fund operating expenses based on the amount and character of accounts receivable at any given time and our ability to meet our financial forecast, the potential for which raises substantial doubt about our ability to continue as a going concern; Compliance with the covenants of our credit agreement in light of current business conditions, the uncertainty of which raises substantial doubt about our ability to continue as a going concern; Potential for failures in our internal control over financial reporting; Ability to maintain listing of our securities on Nasdaq or any stock exchange and potential impact on our stock price, liquidity, and ability to obtain financing; and Management of the growth of our operations, including international expansion and the integration of acquired business units or personnel. These and additional factors to be considered are set forth under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in our other filings with the Securities and Exchange Commission. Fluent undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.   FLUENT, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data) (unaudited)     March 31, 2024   December 31, 2023 ASSETS:               Cash and cash equivalents $ 11,658     $ 15,804   Accounts receivable, net of allowance for doubtful accounts of $247 and $231, respectively   53,421       56,531   Prepaid expenses and other current assets   6,337       6,071   Total current assets   71,416       78,406   Property and equipment, net   502       591   Operating lease right-of-use assets   2,952       3,395   Intangible assets, net   26,141       26,809   Goodwill   1,261       1,261   Other non-current assets   1,305       1,405   Total assets $ 103,577     $ 111,867   LIABILITIES AND SHAREHOLDERS' EQUITY:               Accounts payable $ 8,829     $ 10,954   Accrued expenses and other current liabilities   30,878       30,534   Deferred revenue   561       430   Current portion of long-term debt   30,981       5,000   Current portion of operating lease liability   2,279       2,296   Total current liabilities   73,528       49,214   Long-term debt, net   —       25,488   Operating lease liability, net   1,188       1,699   Other non-current liabilities   115       1,062   Total liabilities   74,831       77,463   Contingencies               Shareholders' equity:               Preferred stock — $0.0001 par value, 10,000,000 Shares authorized; Shares outstanding — 0 shares for both periods   —       —   Common stock — $0.0005 par value, 200,000,000 Shares authorized; Shares issued — 14,429,193 and 14,384,936, respectively; and Shares outstanding — 13,660,598 and 13,616,341, respectively (Note 7)   43       43   Treasury stock, at cost — 768,595 and 768,595 Shares, respectively (Note 7)   (11,407 )     (11,407 ) Additional paid-in capital   427,904       427,286   Accumulated deficit   (387,794 )     (381,518 ) Total shareholders' equity   28,746       34,404   Total liabilities and shareholders' equity $ 103,577