Inuvo, Inc. (AMEX:INUV) Q3 2023 Earnings Call Transcript

Brian Kinstlinger: And then a few quarters back, your largest IntentKey user left Inuvo over what I believe was a disagreement on strategy. You mentioned some customers of return. Was that one of them?

Richard Howe: No, it was not.

Brian Kinstlinger: Okay. Last question I’ve got. Again, it’s great to see the modest profit. I don’t mean to underestimate the job you’ve done. But I’m curious, as the business scales here, how much of the revenue — incremental revenue falls to the bottom line? Is it 10% reasonable, given your cost structure on marketing costs? Just trying to think about, as you scale past $100 million, how much of that is EBITDA.

Richard Howe: Yes. We’ve long said — and you’ve been covering us for a while, Brian, so you know this. But we’ve long said that once we can break through the $100 million run rate, we should start generating cash. And I guess this quarter is proof that, that was correct. I would not — like I don’t think it’s fair to take like, for example, our adjusted EBITDA and just multiply it by 4 and say that’s the adjusted EBITDA that you’re going to get for a year if we were at $100 million, it will be higher than that. Maybe at least if we can get to that $100 million plus run rate next year, maybe somewhere between — somewhere around 5%, maybe I’m not sure, right, at this point. I mean, it’s the first time we’re headed here, but it doesn’t scale — it scales better, maybe I think is the question you’re asking, right? We don’t have a lot of incremental cost associated with increasing the revenue at this stage.

Brian Kinstlinger: Great. Thanks so much for your answers, Rich.

Richard Howe: Yes. Thanks, Brian.

Operator: [Operator Instructions] We have reached the end of the question-and-answer session, and I will now turn the call over to Richard for closing remarks.

Richard Howe: Thank you, Holly. And I’d like to thank everyone who joined us on today’s call. We appreciate your continued interest in our company, and we look forward to speaking with you again following our year-end.

Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.