NEW YORK - Fluent, Inc. (NASDAQ: NASDAQ:FLNT), a prominent player in the performance marketing sector, has solidified its leadership team by naming Ryan Perfit as Chief Financial Officer. Perfit, who has been serving as the interim CFO since early 2023, officially took over the role due to his instrumental contributions to the company's financial and business strategy development.
Perfit's history with Fluent dates back to 2012, where he played a key role in strategic planning and financial management until 2019. His expertise in financial controls, SEC reporting, and audit compliance was critical during Fluent's merger in 2015 and the subsequent spin-off in 2018. Fluent's CEO, Don Patrick, expressed enthusiasm for Perfit's return, citing his extensive financial knowledge and deep understanding of the company's operations.
During his tenure as interim CFO, Perfit was pivotal in navigating a settlement with the Federal Trade Commission and in steering the company's strategic focus towards strengthening its core business. He was also influential in securing a new $50 million debt facility and refining Fluent's financial processes.
Perfit's appointment comes after a career spanning 20 years, including CFO roles at high-growth startups and positions at notable firms like PricewaterhouseCoopers and FTI Consulting (NYSE:FCN). His return to Fluent is marked by a commitment to bolster the company's financial performance and deliver value to stakeholders.
Fluent has built a reputation since 2010 for exceeding client expectations with innovative customer acquisition and partner monetization solutions. The company prides itself on connecting brands with consumers through untapped channels and diverse advertising inventory, driving impactful engagement and performance.
The information in this article is based on a press release statement from Fluent, Inc.
In other recent news, Fluent Inc. experienced a decline in its second-quarter revenue by approximately 28%, which Canaccord Genuity attributes to industry-wide unauthorized activity related to Affordable Care Act policies and the continued impact of a Federal Trade Commission settlement. Despite these challenges, Fluent's newer syndicated performance marketplaces outperformed management's internal forecasts for both revenue and profitability in the second quarter. This success was largely due to new partners in the retail and ticketing sectors and an expanded presence in the grocery industry.
In more recent developments, Fluent's stockholders approved the issuance of pre-funded warrants and the conversion of existing warrants into common stock. This decision was made during a special meeting where three key proposals were discussed, all receiving a majority of votes in favor. Additionally, Fluent's Q1 2024 earnings report revealed a 14.6% decrease in revenue, amounting to $66 million, and a net loss of $6.3 million.
Canaccord Genuity has maintained its Hold rating on Fluent shares due to the current operating challenges, awaiting greater clarity on the potential for sustainable revenue growth. However, Fluent anticipates a return to single-digit year-over-year growth in the third quarter and aims for double-digit growth in the fourth quarter and into the following year. Despite the revenue decrease, Fluent reported an increased media margin of 33.6% of revenue, up from 28.6% the previous year, and an adjusted EBITDA of $0.7 million.
InvestingPro Insights
As Fluent, Inc. (NASDAQ: FLNT) welcomes Ryan Perfit as Chief Financial Officer, the company's financial health and market position are of great interest to investors and stakeholders. According to recent data from InvestingPro, Fluent is currently navigating a challenging financial landscape.
With a market capitalization of $46.4 million, Fluent is considered a small-cap company, which can often lead to higher market volatility. This is reflected in the company's recent stock price movements, which have been quite volatile, as indicated by the 1-year price total return of -26.55%. The company's revenue has also been declining, with a drop of 20.84% over the last twelve months as of Q2 2024.
InvestingPro Tips suggest that Fluent is operating with a significant debt burden and is quickly burning through cash, which could be concerning for investors looking for stable returns. Additionally, analysts do not anticipate the company will be profitable this year, and Fluent does not pay a dividend to shareholders, which may deter income-focused investors.
However, Fluent is trading at a low revenue valuation multiple, which could potentially signal an undervalued stock to some investors. With 9 additional InvestingPro Tips available, including insights on valuation and cash flow yield, those interested in Fluent's financial outlook can find a wealth of information to guide their investment decisions.
For a more comprehensive analysis and additional expert insights on Fluent, Inc., investors can visit https://www.investing.com/pro/FLNT.
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