Inuvo Inc. (INUV, Financial) filed Quarterly Report for the period ended 2010-09-30.
Inuvo Inc. has a market cap of $28.2 million; its shares were traded at around $0.33 with and P/S ratio of 0.5. INUV is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The increase of operating expenses in our Exchange segment was primarily attributed to an increase in search spend expenses of $1.6 million that was partially offset by reductions in depreciation and amortization expense of approximately $172,000 . This increase in search spend is a result of our strategic initiative to promote our owned and operated web sites.
The decline in operating expenses in our Direct segment was primarily attributed to a reduction in depreciation of approximately $318,000 and to a decrease in payroll and telemarketing expenses of approximately $345,000 .
The increase in corporate expenses is due to an increase in bad debt expense of approximately $129,000, an increase in depreciation and amortization of approximately $690,000 million, an increase in payroll and related expenses of approximately $149,000 partially offset by decreases in other operating expenses of approximately 353,000 as management reduced expenditures.
The loss from discontinued operations in the three months ended September 30, 2010 was approximately $1.9 million compared to approximately $520,000 during the same period in 2009 and is primarily attributed to the loss on the sale of MSA of approximately $1.5 million in the 2010 period with no comparable loss in 2009 and the reduction of income from the iLead business which was discontinued on March 1, 2010.
The decline in net revenue from our Direct segment of approximately $3.3 million in the nine months ended September 30, 2010 as compared to the same period of 2009 was primarily due to a decrease in Primary Ads platform revenue of approximately $2.2 million as a result of our decision to retire the Primary Ads service and migrate certain customers to the Inuvo platform in our Exchange segment. Net revenue from our BabytoBee business was approximately $5.3 million in the nine months ended September 30, 2010 as compared to approximately $6.4 million for the comparable period in 2009, a decrease of 16.5% was due to a decline in lead volumes and lower revenue generated from telesales. The conversion, in August 2010, to a new Florida-based outsourced facility caused a “ramp up” period that temporarily had a negative effect on lead revenues. As we diversify and expand our lead sources, we believe we can increase our lead volume and revenue in this business.
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Inuvo Inc. has a market cap of $28.2 million; its shares were traded at around $0.33 with and P/S ratio of 0.5. INUV is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The decline in net revenue from our Direct segment of approximately $903,000 in the three months ended September 30, 2010 as compared to the same period of 2009 was primarily due to a decrease in Primary Ads platform revenue of approximately $499,000 as a result of our decision to retire the Primary Ads service and migrate customers to our Exchange segment platform. Net revenue from our BabytoBee business was approximately $1.6 million in three months ended September 30, 2010 as compared to approximately $2.0 million for the comparable period in 2009. The decrease of 18.9% was due to a decline in lead volumes and lower revenue generated from telesales. The conversion, in August 2010, to a new Florida-based outsourced facility caused a “ramp up” period that temporarily had a negative effect on lead revenues. As we diversify and expand our lead sources, we believe we can increase our lead volume and revenue.The increase of operating expenses in our Exchange segment was primarily attributed to an increase in search spend expenses of $1.6 million that was partially offset by reductions in depreciation and amortization expense of approximately $172,000 . This increase in search spend is a result of our strategic initiative to promote our owned and operated web sites.
The decline in operating expenses in our Direct segment was primarily attributed to a reduction in depreciation of approximately $318,000 and to a decrease in payroll and telemarketing expenses of approximately $345,000 .
The increase in corporate expenses is due to an increase in bad debt expense of approximately $129,000, an increase in depreciation and amortization of approximately $690,000 million, an increase in payroll and related expenses of approximately $149,000 partially offset by decreases in other operating expenses of approximately 353,000 as management reduced expenditures.
The loss from discontinued operations in the three months ended September 30, 2010 was approximately $1.9 million compared to approximately $520,000 during the same period in 2009 and is primarily attributed to the loss on the sale of MSA of approximately $1.5 million in the 2010 period with no comparable loss in 2009 and the reduction of income from the iLead business which was discontinued on March 1, 2010.
The decline in net revenue from our Direct segment of approximately $3.3 million in the nine months ended September 30, 2010 as compared to the same period of 2009 was primarily due to a decrease in Primary Ads platform revenue of approximately $2.2 million as a result of our decision to retire the Primary Ads service and migrate certain customers to the Inuvo platform in our Exchange segment. Net revenue from our BabytoBee business was approximately $5.3 million in the nine months ended September 30, 2010 as compared to approximately $6.4 million for the comparable period in 2009, a decrease of 16.5% was due to a decline in lead volumes and lower revenue generated from telesales. The conversion, in August 2010, to a new Florida-based outsourced facility caused a “ramp up” period that temporarily had a negative effect on lead revenues. As we diversify and expand our lead sources, we believe we can increase our lead volume and revenue in this business.
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