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Fluent Inc. (FLNT-1.40%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a revenue decrease of 3% to $64.5 million for the quarter, compared to $66.2 million in the same quarter the previous year. The decline is attributed to a challenging macro-economic environment and changes in business practices to comply with regulatory requirements.
The company reported a net loss of $7.9 million, or $0.48 per share, compared to a net loss of $33.6 million, or $2.43 per share, in the previous year. The improvement is mainly due to a decrease in goodwill impairment charges.
Cost of revenue (exclusive of depreciation and amortization) decreased by 3% to $48.9 million from $50.1 million in the same quarter the previous year. This decrease is primarily due to lower media costs.
Sales and marketing expenses decreased by 10% to $4.0 million, primarily due to lower salaries and employee-related costs.
Product development expenses decreased by 9% to $4.1 million, primarily due to lower salaries and other employee-related costs.
General and administrative expenses increased by 4% to $9.1 million, mainly due to the absence of credits for certain litigation and related costs.
Interest expense increased to $1.3 million from $0.9 million, driven by higher average interest rates on new debt.
The company recognized a $2.8 million unrealized loss related to the fair value of Convertible Notes entered into during the quarter.
Fluent Inc. disclosed that it was not in compliance with financial covenants under its credit agreement as of September 30, 2024, but entered into an amendment requiring the company to raise additional capital by November 29, 2024.
The company acknowledges substantial doubt about its ability to continue as a going concern for one year after the date of the report, due to ongoing financial challenges and the need to raise additional capital.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fluent Inc. quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.