NYSE MKT: INUV
Richard Howe, CEO
Wally Ruiz, CFO
Connecting Advertisers to
Consumers Through Publishers
Safe Harbor Statement
This presentation includes or incorporates by reference statements that constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These statements relate to future events or to our future financial performance, and involve known and
unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity,
performance, or achievements to be materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward‐looking statements. These statements include, but are not limited to,
information or assumptions about expenses, capital and other expenditures, financing plans, capital structure, cash flow,
liquidity, management’s plans, goals and objectives for future operations and growth. In some cases, you can identify
forward‐looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. You
should not place undue reliance on forward‐looking statements since they involve known and unknown risks, uncertainties
and other factors which are, in some cases, beyond our control and which could cause actual performance or results to
differ materially from those expressed in or suggested by forward-looking statements. These statements are based on the
current expectations or beliefs of the Company’s management and are subject to various known and unknown risks that
could cause actual results to differ materially from those described in the forward-looking statements, including, but not
limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology
development, the effect of the Company's accounting policies, increasing competition, the Company’s ability to integrate
companies and businesses acquired by it and certain other risk factors, including those that are set forth from time to time
in the Company's filings with the United States Securities and Exchange Commission, which may cause the actual results,
performance and achievements of the Company to be materially different from any future results, performance and
achievements implied by such forward-looking statements.
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
• A technology company serving online advertisers & publishers.
• We deliver advertisements across the desktop, web and mobile.
• With proprietary data, we can target audiences for advertisers.
• With technology, we serve advertisements into websites & apps.
• We get paid by advertisers, when their ads get clicked on.
Inuvo in a Snap Shot!
Advertisers want audiences (customers); Publishers want money making advertisements
An Experienced Team and Technologist
Executives and board members skilled in advertising technology and big data
Owning ≈ 20% of the Company
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Wally Ruiz
Chief Financial
Officer
Experienced technology
executive with previous
CFO roles both public
and private.
Kent Burnett
Director
Former Vice President
of Technology and
Ecommerce at Dillard’s
Inc. Accomplished
Engineer and Board
member.
Richard Howe
Chairman/CEO
Proven technology
executive with a
successful track
record building,
merging and/or
selling companies.
Charles Morgan
Lead Director
Built Acxiom Corp
(Nasdaq: ACXM) from
startup to a multi- billion
dollar marketing
services industry leader.
Founder of First Orion
Co.
Trey Barrett
Chief Operating
Officer
An accomplished and
proven technology
operator / innovator for
companies both
big and small.
Pat Terrell
Director
Managing partner of
Terrell group and
PatRick investments.
Serial entrepreneur
founding Byte Shops
Northwest and Leading
Technology.
Charlie Pope
Director
Former partner at
PricewaterhouseCoopers
LLP as well as CFO of a
number of public
companies. Over 30 years
of experience in executive
management, finance and
accounting.
Andrea Haldeman
Chief Revenue
Officer
Technology sales
executive with over 20
years' experience in data
and analytics solutions
at multi-billion dollar
companies.
Gordon Cameron
Director
Executive Vice
President at PNC
Financial Services with
responsibility over 80
billion dollar portfolio.
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
• Trading @ .40 X revenue; Microcaps < $100M trade at 1.9 avg
• 2016 Revenue $72m with Adj. EBITDA of $2.6m
• Projected 2017 Revenue of $84-89m & positive Adj. EBITDA
• Managed for growth while maintaining a positive cash flow
• Contracts with Yahoo! & Google, Facebook & Microsoft
• Based in Little Rock, AR & San Jose, CA. 93 employees
• Significant barriers to entry with 11 Patents and 8 pending
• Analyzing 16 billion advertising transactions per day
A Value gap exists between the public value and the asset value
Investment community yet to discover Inuvo
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Historical & Projected Revenue Growth
Expecting a 2017 growth rate between 16 & 23% year-over-year to $84- $89 million
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Connecting Advertising to Publishing
A highly differentiated and unique set of technologies and market approach
INUV Partners
INUV Websites
INUV Publishers
Advertisers
Ad Networks
Ad Exchanges
Demand Side
Technologies
Ad Networks
Ad Exchanges
v
$83 Billion U.S. Digital Advertising Market(*)
MarketPlace Supply Side
Technologies
Targeting & Optimization
Technologies
Demand/Advertisers Supply/Publishers
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
*eMarketer
Connecting advertisers to consumers through publishers
Demand Side Relationships Set Us Apart
ADVERTISING BUDGETS
Access to over 50% USA online budgets
BUSINESS RELATIONSHIPS
Contracts with 3 of the largest tech
companies in the world
ADVERTISERS
Access to tens of thousands of
advertisers
CONSUMER CONNECTIONS
Delivering over 1 billion consumer
interactions to advertisers monthly
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Best in Class Audience Targeting
The IntentKey, a patented, proprietary, and powerful machine learning technology Xbox Console
Billions of Web Pages (sites) Crawled/Categorized
800 Million Device Profiles Developed
IT Women Workplace
Computers
FEMALE GAMER
Online games
Xbox System
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
INUVO OWNED WEBSITES
Access to thousands of domains
directly with ads on > 30 million images
PUBLISHERS / PARTNERS
Connecting advertisers to consumers through publishers
Supply Side Relationships Fuel Demand
CONSUMER INTERACTIONS
Interacting with 90% of US households
multiple times per week
NETWORKS
Access to tens of thousands of
publishers across all verticals
Access to millions of unique visitors
every single month
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
A Suite of Supply Side Technologies
Products sold to publishers with a strong combined-value proposition
IN-SLIDE ADS
Astounding Monetization
for Photo Galleries
IN-VIDEO ADS
Video Monetization
IN-PAGE ADS
Dynamic
In-Content Units
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Market Examples of In-Slide Ad-Units
The popularity of slides show and the proliferation of images continues to grow
• 100% Fill
• Search & Display
• Incremental
page views
• Responsive
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Market Examples of In-Video Ad-Units
Images and video quickly becoming the preferred content choice for users
• Relevant
• High RPMs
• Configurable
• Untapped
Exposure
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Market Examples of In-Page Ad-Units
Monetization of content remains a publishers #1 priority
• Relevant
• Native
• Premium
Placement
• New Inventory
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Inuvo Digital Publishing is Strategic
Written by Inuvo, marketed by Inuvo, and served with ads from Inuvo
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
INUV Partners
INUV Websites
INUV Publishers
Ad Networks
Ad Exchanges
v
Supply/Publisher
Fulfilling Demand On Inuvo Websites
We design ad units that work for INUV and serve ads sourced by INUV
Inuvo Ad Tech Compare Against Competitors
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Software and infrastructure capable of handling billions of decisions daily
Significant Technological Barriers
COMPUTATIONAL BARRIERS
2 Data Centers in AR and CA with
over 2000 CPU cores
DECISION BARRIERS
Making decisions about whether to
serve ads over 10 billion times per day
BIG DATA BARRIERS
Over 6 petabytes of data & analyzing
200,000 transaction per second
WEBSITES ANALYSED
Constantly crawling websites with
over a trillion pages encoded
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Sending Visitors to Leading Brands
Every day, INUV sends visitors to thousands of recognizable merchants
Increasing diversification of revenue
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
• U.S. companies in the ad tech sector are undervalued.
• A sector rollup is underway now at attractive valuations.
• Companies like INUV, with >5 year history positive cash flow
can be the platform for a rollup.
• With capital constraints within sector, stronger companies
(like INUV) should benefit from reduction in competition.
• Valuation acceleration is correlated to size, and INUV at
between $84-89m in 2017 is approaching critical mass.
Buy low / Sell high market exists in ad-tech
Why Inuvo? Why Ad-Tech?
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
In addition to disclosing financial results in accordance with United States generally accepted accounting principles ("GAAP"),
this presentation contains the non-GAAP financial measure "Adjusted EBITDA."
We present Adjusted EBITDA as a supplemental measure of our performance. We defined Adjusted EBITDA as net income
(loss) from continuing operations before taxes plus (i) interest expense, net, (ii) depreciation, (iii) amortization, and (iv) stock-
based compensation. These further adjustments are itemized above. You are encouraged to evaluate these adjustments and
the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that
in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our
presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual
or non-recurring items.
Management believes that the disclosure of Adjusted EBITDA offers an additional view of the Company's operations that, when
coupled with the GAAP results and the reconciliation to GAAP net (loss) income, provides a more complete understanding of
the Company's results of operations and the factors and trends affecting the Company's business.
Non-GAAP Financial Measures
Information in this presentation is considered confidential and proprietary to Inuvo and should not be disclosed or shared with others without Inuvo’s permission.
Year Ended
December 31,
2016
(Loss) Income from continuing operations before taxes $ (957,131)
Interest expense, net 99,965
Depreciation 1,279,030
Amortization 930,708
Stock-based compensation 1,264,266
Adjusted EBITDA $ 2,616,838
RECONCILIATION OF (LOSS) INCOME FROM
CONTINUING OPERATIONS BEFORE TAXES TO
ADJUSTED EBITDA
Contact Us
LinkedIn: Inuvo, Inc
Facebook: Inuvo
Twitter: @Inuvo
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