The following is a summary of the Fluent, Inc. (FLNT) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Fluent, Inc. reported a Q2 2024 revenue of $58.7 million, marking an 11% decline sequentially from Q1 2024.

• The media margin for Q2 was $15.7 million, a decrease of 29.3% from Q1 2024.

• Adjusted EBITDA for Q2 was negative $4.5 million, representing a negative 7.7% of revenue.

• The company faced a $3.1 million write-down impacting revenue, media margin, and adjusted EBITDA due to unauthorized third-party activity.

Business Progress:

• Fluent, Inc. is enhancing its strategic growth by focusing on syndicated performance marketplaces, expecting single-digit to double-digit consolidated year-over-year growth through Q3 and Q4 of 2024.

• The company continues to expand its market share and anticipates growing its Adflow platform in the commerce media market, forecasted to reach $150 billion by 2030.

• They recently launched a loyalty solution with select partners, leveraging owned and operated marketplaces for enhanced consumer engagement.

• Anticipated regulatory adjustments have been responded to proactively to match compliance demands in the call solutions sector.

Opportunities:

• Fluent is pivoting towards high growth syndicated performance marketplaces, aiming to capitalize on the large and dynamic commerce media market.

• New growth avenues like the loyalty-based opportunity with Adflow are projected to align with consumer engagement and retention strategies.

Risks:

• Q2 results were negatively influenced by unauthorized third-party activity that required adjustments. The lack of adequate protections led to financial setbacks, though this issue has reportedly been resolved.

• The business experienced a downturn influenced by regulatory changes in healthcare policies, which directly impacted profitability and necessitated reevaluation of operations.

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