Inuvo Inc. has reported a net income of $381,572 or 2 cents per diluted share for the second quarter of 2013. Last year, the Internet marketing and technology company had a net loss of $3 million, or 13 cents per share.
Revenue for the second quarter of 2013 was $13.1 million compared to $12.9 million in 2012.
According to the earnings release, $98,557 of the profits came from continuing operations, and $283,015 came from operations the company discontinued.
In January, Inuvo closed its operations in New York and Florida to consolidate operations to a single headquarters in Conway.
“We did a little better than we expected, and in part it is the result of the move,” said Inuvo CEO Richard Howe. “Profit comes from two things, growth and, or a reduction in operating expenses, and in our case we did significantly reduce the latter, and it was a little better than we had originally modeled.”
Howe said having Inuvo’s corporate headquarters in New York was costing the company a fortune with little advantage to being there.
“In business, it’s a good idea to leverage your advantages,” he said. “In New York we were just another $55 million tech company in a sea of them.”
But in Conway, Howe said, we get more attention, we know more people and we can take advantage of the relationships we have.
Howe first came to Arkansas in 2004 when he was recruited by Acxiom CEO Charles Morgan to bring Acxiom into a digital line of business.
In 2008, Morgan retired from Acxiom and Howe took the opportunity to become the CEO of his own public company. That’s when he stumbled upon Inuvo, Inc., an Internet marketing and technology company that serves ads to consumers by means of desktop computers, mobile devices and applications.
“I wasn’t afraid to take on a project that needed a lot of hard work,” he said.
Howe said what Inuvo lacks in size, they make up for with ingenuity and speed.
“When you’re small like we are, or relatively small, one of the advantages you have in the marketplace is the ability to collaborate with your peers and get to market fast — speed is your biggest advantage,” he said.
It’s hard to collaborate as a team when you’re separated by hundreds of miles. Although FaceTime and Skype allow people to connect, Howe said, there’s no substitute for direct contact and engagement with your peers.
“The culture of the company really gets defined when the people interact with each other on a regular basis,” he said.
With what Howe calls “Charles’ Playbook,” he already had the knowledge of how Conway could be a good place to build a company because of the very successful example of Acxiom.
He choose Conway because it’s surrounded by three colleges, it’s a city of growth and he has many contacts in the state, he said.
The state of Arkansas granted Inuvo $1.75 million to fund the move on the condition that the company would create 50 jobs with an average salary of $90,000 by 2017.
“It was really encouraging to see our government take a stance on job creation, particularly job creation in the area that we’re in,” Howe said.
The company was expected to reach its first employment milestone in March of 2014 with 26 new Arkansas resident employees. However, Howe said they have already met that goal and the company has the potential to create more jobs than expected.
“The talent we’ve hired here could not have been better,” Howe said. “They’re loyal, hard working and excited about working for us. And being form a small community most of them know each other. All of that has been a real positive for us.”
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