Mediaboss Marketing

NEW YORK--(BUSINESS WIRE)--

Inuvo, Inc. (NYSE MKT: INUV) (the "Company" or "Inuvo"), an Internet marketing and technology company specialized in marketing browser-based consumer applications, managing networks of website publishers and operating specialty websites, today announced second quarter 2012 financial results including revenues of $12.9 million and gross profit of $6.8 million, increases of 40% and 65%, respectively, over the second quarter 2011.

Company Highlights

The Company's consolidated financial statements as of June 30, 2012 include the financial results of its Vertro subsidiary from March 2012 forward, prior year periods do not contain financial results of the Vertro subsidiary.

"The second quarter 2012 is the first full quarter of combined results since our merger with Vertro, stated Peter Corrao, Chief Executive Officer of Inuvo. We recorded positive adjusted EBITDA and we expect adjusted EBITDA to increase throughout the year. Our alOt live user base grew and search queries increased 15% in Tier 1 markets as we added new users in Tier 1 markets while expanding marketing efforts in 7 new countries. Our Partner Programs segment experienced rapid development, growing both in revenue and gross profit. Going forward, we plan to continue these operational improvements and generate increased revenue through initiatives, such as dual-display advertising, that have already contributed to our preliminary unaudited revenue of approximately $4.6 million for the month of July.

Three Month Financial Results for the period ended June 30, 2012

Net revenues for the three months ended June 30, 2012, were $12.9 million, up 39.7% compared to the three months ended June 30, 2011. Gross profit increased 64.7% to $6.8 million in the three months ended June 30, 2012 compared to the same period of 2011. These increases were due primarily to revenue from the Companys Software Search segment as a result of the merger with Vertro.

Net revenue from the Software Search segment was $5.5 million, or 42.7% of total revenues. As this segment derives from the merger with Vertro and this is the first full quarter of combined operations and financial results.

Net revenue from the Partner Programs segment increased 131.2% for the three months ended June 30, 2012 compared to the same period of 2011 primarily due to revenue derived from partner programs associated with the alOt operations acquired in the merger with Vertro on March 1, 2012.

Revenue from the Publisher Network segment decreased 40.4% to $4.9 million for the three months ended June 30, 2012 compared to the same period of 2011. This decrease was primarily due to a decline in the number of transactions driven through our owned and operated websites and through third party affiliates using the ValidClick platform. Revenue from the Publisher Network has been volatile and while revenue for the three months ended June 30, 2012 decreased 40.4% compared to the three months ended June 30, 2011, and decreased 14% compared to the three months ended March 31, 2012, we did see signs of stability and moderate recovery in revenue in the latter part of the quarter.

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Inuvo, Inc. Reports Second Quarter Financial Results; Hosts Conference Call Today