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CLEARWATER — Inuvo Inc. (symbol: INUV) lost $5.0 million in 2010, giving it a combined net loss of $10.4 million over the past two years.
Headquartered in Clearwater, Inuvo is an online marketing services company that connects web content providers with online advertisers. Its revenues grew by $9.2 million, or 23% over the year, to $49.0 million in 2010. But high expenses continue to challenge the company's bid at profitability.
Inuvo's expenses rose in two key categories: its cost of sales grew $4.5 million, or 18%; and the company's spending on Internet search technology — key for online advertising — grew from $906,000 to $5.4 million, for another $4.5 million increase. Those two jumps alone nearly wiped out the firm's annual revenue gains.
The company also spent nearly $1 million on interest payments in each of the last two years, financial records show. Inuvo did reduce its bank debt by $6.3 million in 2010, down to $1.9 million, but only managed to do so by spending most of its cash reserves from the end of 2009. The company ended 2010 with roughly $119,000 in cash, down from $4.8 million over the year.
Inuvo stock was up nearly 5% in trading early Thursday, to a price of roughly $3.18 per share.
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