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Inuvo Q3 revenue falls 70%, misses analyst estimates

By Reuters News


Overview

  • AI audience modeling firm's Q3 revenue fell 70% yr/yr, missing analyst expectations

  • Q3 loss per share widened

  • Revenue decline driven by 80% drop in Legacy Search and lower Audience Modeling spend


Outlook

  • Company expects Q4 Audience Modeling revenue to increase compared to Q3 2026

  • Legacy Search revenue and margins expected to remain in line with Q3 2026

  • Operating expenses for Q4 expected to remain lower year over year


Result Drivers

  • LEGACY SEARCH DECLINE - Co said 80% yr/yr drop in Legacy Search revenue was due to industry changes and Bonfire platform reset

  • AUDIENCE MODELING SPEND - 24% yr/yr decrease in Audience Modeling revenue attributed to lower spend from a key client

  • SALES TEAM OVERHAUL - Fewer revenue conversions in Q3 as sales team overhaul and new go-to-market strategy led to longer sales cycles


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$6.80 mln

$7.70 mln (3 Analysts)

Q3 Loss Per Share

$0.28

Q3 Net Loss

Miss

$5 mln

$529,000 (3 Analysts)

Q3 Gross Margin

44.00%

Q3 Operating Expenses

$7.80 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "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 913.4% above its November 11 closing price of $0.39


Reuters Recommended Reads

  • Nov 9 - Paradium.AI Q3 revenue falls on referral traffic headwinds

  • Nov 9 - PubMatic's Q3 revenue beats estimates on AI demand

  • Nov 9 - Viant Technology Q3 revenue rises 29% on CTV advertiser strength


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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