Fluent (FLNT) Canaccord Genuity’s 45th Annual Growth Conference summary

Strategic and financial pivot

• Underwent a major shift from legacy customer acquisition to Commerce Media, leveraging first-party data and AI for targeted advertising.

• Commerce Media business reached a $65M annual run rate in just over two years, with plans to double in 2025 and again in 2026.

• Commerce Media now accounts for a growing share of gross profit, expected to become the majority by 2026.

• The pivot is expected to restore double-digit revenue growth and improve margins and profitability.

• Financial inflection point anticipated in late Q3 and Q4 2024, with Commerce Media driving renewed growth and profitability.

Commerce Media business model and market opportunity

• Connects advertisers with high-value consumers at the point of purchase, offering incremental profit to media partners with no additional costs.

• Operates on a revenue share model, typically 60% to media partners and 40% retained, with three to five-year contracts and no upfront costs.

• Commerce Media market projected to grow from $50B to $100B by 2027, driven by one-to-one advertising, improved consumer experience, and compliance with privacy regulations.

• Focused on retail, ticketing, grocery, and restaurants, with plans to expand into travel, finance, and entertainment after 2026.

• Partnership with Rebuy enables access to 12,000 Shopify merchants, opening new growth channels among smaller retailers.

Competitive advantages and technology

• Proprietary first-party data asset and identity graph enable highly personalized, one-to-one ad targeting.

• AI models optimize ad serving based on clicks, conversions, and lifetime value, driving superior results for partners.

• Case studies show 35% higher revenue per consumer and 27% increase in lifetime value compared to competitors.

• Delivered 650% quarter-over-quarter growth for a gaming advertiser, with 89% new user acquisition.

• High match rate (80-85%) between partner consumers and the identity graph enhances targeting precision.