First Full Quarter as a Standalone Public Company Produces $56.9 Million in Revenue,

$2.6 Million in Net Income, Resulting in $0.04 in Basic Earnings Per Share

NEW YORK, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Fluent, Inc. (NASDAQ: FLNT) a leading data-driven performance marketing company, today announced financial results for the quarter ended June 30, 2018.

“With our first full quarter as a standalone public company under our belt, we are pleased with our team’s performance,” stated Ryan Schulke, Fluent’s CEO. “Our data-driven, consumer-based approach propelled our margin expansion and continued double-digit year over year growth.”

Second Quarter Financial Results

For the three months ended June 30, 2018, as compared to the three months ended June 30, 2017:

-- Total revenue increased 12% to $56.9 million, from $51.0 million. -- Net income from continuing operations was $2.6 million, compared to net loss from continuing operations of $8.3 million. -- Net loss from discontinued operations was $0, compared to $12.1 million. -- Basic earnings per share from continuing operations was $0.04, compared to a loss of $0.15 per share. -- Adjusted EBITDA grew 53% to $10.9 million, based on net income of $2.6 million, from $7.1 million on $20.4 million of net loss. -- Adjusted gross profit increased 42% to $23.0 million, from $16.3 million. Adjusted gross margin increased 800 basis points to 40%, from 32%.

Adjusted EBITDA, adjusted gross profit and adjusted gross margin are non-GAAP financial measures. Reconciliation of these non-GAAP measures are provided in the attached tables.

Second Quarter and Recent Business Highlights

-- Continued to expand margins through enhanced ad targeting and distribution -- Surpassed 1 million user registrations in UK beta launch -- Launched first content-based mobile app to expand ad distribution -- Initiated partnership with Live Ramp to make Fluent’s first-party health-interest audiences available programmatically

Conference Call

Fluent, Inc. will host a conference call on Tuesday, August 7, 2018 at 4:30 PM ET to discuss its 2018 second quarter financial results. To listen to the conference call on your telephone, please dial (888) 339-0797 for domestic callers or (412) 317-5248 for international callers. To access the live audio webcast, visit the Fluent website at www.fluentco.com. Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following completion of the earnings call, a recorded replay of the webcast will be available for those unable to participate. To listen to the telephone replay, please dial (877) 344-7529 or (412) 317-0088 with the replay passcode 10122670. The replay will also be available for one week on the Fluent website at www.fluentco.com.

About Fluent, Inc.

Fluent (NASDAQ: FLNT) is the trusted acquisition partner for growing brands. Leveraging our proprietary first party data asset, Fluent creates marketing programs that deliver better digital advertising experiences for consumers and measurable results for advertisers. Founded in 2010, the company is headquartered in New York City. For more information, visit www.fluentco.com.

FORWARD-LOOKING STATEMENTS

This press release and the conference call contain "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipate," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and the conference call and speak only as of the date of this press release and the conference call and are advised to consider the factors under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q and other SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

FLUENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) (unaudited) June 30, December 31, 2018 2017 ---------- ------------ ASSETS: Current assets: Cash and cash equivalents $ 10,068 $ 16,564 Accounts receivable, net of allowance for doubtful accounts of $1,475 and $1,624 37,978 36,278 at June 30, 2018 and December 31, 2017, respectively Prepaid expenses and other current assets 1,840 1,865 Current assets of discontinued operations - 2,274 - -------- - -------- - Total current assets 49,886 56,981 Property and equipment, net 531 687 Intangible assets, net 68,728 74,354 Goodwill 159,791 159,791 Other non-current assets 556 1,097 Non-current assets of discontinued operations - 24,089 - -------- - -------- - Total assets $ 279,492 $ 316,999 - -------- - -------- - LIABILITIES AND SHAREHOLDERS’ EQUITY: Current liabilities: Trade accounts payable $ 11,994 $ 10,666 Accrued expenses and other current liabilities 7,807 11,709 Deferred revenue 843 265 Current portion of long-term debt 6,829 2,750 Current liabilities of discontinued operations - 7,389 - -------- - -------- - Total current liabilities 27,473 32,779 Promissory notes payable to certain shareholders, net - 10,837 Long-term debt, net 56,697 49,376 - -------- - -------- - Total liabilities 84,170 92,992 - -------- - -------- - Shareholders' equity: Preferred stock—$0.0001 par value, 10,000,000 shares authorized; - - 0 shares issued and outstanding at June 30, 2018 and December 31, 2017 Common stock—$0.0005 par value, 200,000,000 shares authorized; 76,509,709 and 61,631,573 shares issued at June 30, 2018 and December 31, 2017, 38 31 respectively; and 75,284,624 and 61,279,050 shares outstanding at June 30, 2018 and December 31, 2017, respectively Treasury stock, at cost, 1,225,085 and 352,523 shares at June 30, 2018 and (3,253 ) (1,274 ) December 31, 2017, respectively Additional paid-in capital 390,011 392,687 Accumulated deficit (191,474 ) (167,437 ) - -------- - -------- - Total shareholders’ equity 195,322 224,007 - -------- - -------- - Total liabilities and shareholders’ equity $ 279,492 $ 316,999 - -------- - -------- -

FLUENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, ---------------------------- ---------------------------- 2018 2017 2018 2017 ------------ ------------ ------------ ------------ Revenue $ 56,935 $ 51,031 $ 112,924 $ 100,225 Costs and expenses: Cost of revenue (exclusive of depreciation and 33,893 34,781 69,556 68,578 amortization) Sales and marketing expenses 3,678 4,678 7,684 8,373 General and administrative expenses 11,448 14,169 19,893 26,645 Depreciation and amortization 3,338 3,234 6,669 6,439 Write-off of long-lived assets - - - 3,626 Spin-off transaction costs - - 7,708 - - ---------- - ---------- - ---------- - ---------- Total costs and expenses 52,357 56,862 111,510 113,661 - ---------- - ---------- - ---------- - ---------- Income (loss) from operations 4,578 (5,831 ) 1,414 (13,436 ) Interest expense, net (1,933 ) (2,445 ) (4,327 ) (4,672 ) - ---------- - ---------- - ---------- - ---------- Income (loss) before income taxes from 2,645 (8,276 ) (2,913 ) (18,108 ) continuing operations Income taxes - - - - - ---------- - ---------- - ---------- - ---------- Net income (loss) from continuing operations 2,645 (8,276 ) (2,913 ) (18,108 ) Discontinued operations: Loss from operations of discontinued - (12,133 ) (2,084 ) (15,026 ) operations, net of $0 income taxes Loss on disposal of discontinued operations, - - (19,040 ) - net of $0 income taxes Net loss from discontinued operations - (12,133 ) (21,124 ) (15,026 ) - ---------- - ---------- - ---------- - ---------- Net income (loss) $ 2,645 $ (20,409 ) $ (24,037 ) $ (33,134 ) - ---------- - ---------- - ---------- - ---------- Basic earnings (loss) per share: Continuing operations $ 0.04 $ (0.15 ) $ (0.04 ) $ (0.33 ) - ---------- - ---------- - ---------- - ---------- Discontinued operations $ - $ (0.22 ) $ (0.30 ) $ (0.28 ) - ---------- - ---------- - ---------- - ---------- Net income (loss) $ 0.04 $ (0.37 ) $ (0.34 ) $ (0.61 ) - ---------- - ---------- - ---------- - ---------- Diluted earnings (loss) per share: Continuing operations $ 0.03 $ (0.15 ) $ (0.04 ) $ (0.33 ) - ---------- - ---------- - ---------- - ---------- Discontinued operations $ - $ (0.22 ) $ (0.30 ) $ (0.28 ) - ---------- - ---------- - ---------- - ---------- Net income (loss) $ 0.03 $ (0.37 ) $ (0.34 ) $ (0.61 ) - ---------- - ---------- - ---------- - ---------- Weighted average number of shares outstanding: Basic 75,282,042 54,778,046 71,318,930 54,297,536 - ---------- - ---------- - ---------- - ---------- Diluted 78,196,959 54,778,046 71,318,930 54,297,536 - ---------- - ---------- - ---------- - ----------

FLUENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (unaudited) Six Months Ended June 30, ---------------------- 2018 2017 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (24,037 ) $ (33,134 ) Net loss from discontinued operations 21,124 15,026 Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities: Depreciation and amortization 6,669 6,439 Non-cash interest expense and related amortization 1,079 1,497 Share-based compensation expense 9,262 14,948 Write-off of long-lived assets - 3,626 Provision for bad debts 93 945 Allocation of expenses to red violet (325 ) (1,888 ) Changes in assets and liabilities: Accounts receivable (1,793 ) (2,187 ) Prepaid expenses and other current assets (173 ) (860 ) Other non-current assets 541 - Trade accounts payable 1,328 398 Accrued expenses and other current liabilities (3,902 ) 953 Deferred revenue 578 820 Net cash provided by operating activities from continuing operations 10,444 6,583 Net cash used in operating activities from discontinued operations (5,835 ) (3,836 ) - ------- - ------- Net cash provided by operating activities 4,609 2,747 - ------- - ------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (92 ) (148 ) Capitalized costs included in intangible assets (512 ) (550 ) Capital contributed to red violet (19,728 ) - - ------- - ------- Net cash used in investing activities from continuing operations (20,332 ) (698 ) Net cash used in investing activities from discontinued operations (1,386 ) (3,570 ) - ------- - ------- Net cash used in investing activities (21,718 ) (4,268 ) - ------- - ------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of shares, net of issuance costs 13,392 - Proceeds from debt obligations, net of debt costs 67,182 14,039 Repayments of long-term debt (67,982 ) (2,636 ) Taxes paid related to net share settlement of vesting of restricted stock units (1,979 ) (723 ) - ------- - ------- Net cash provided by financing activities from continuing operations 10,613 10,680 Net (decrease) increase in cash and cash equivalents $ (6,496 ) $ 9,159 Cash and cash equivalents at beginning of period 16,564 10,089 - ------- - ------- Cash and cash equivalents at end of period $ 10,068 $ 19,248 - ------- - ------- SUPPLEMENTAL DISCLOSURE INFORMATION Cash paid for interest $ 3,342 $ 3,195 Cash paid for income taxes $ - $ - Share-based compensation capitalized in intangible assets $ 283 $ 188

Use and Reconciliation of Non-GAAP Financial Measures

Management evaluates the financial performance of our business on a variety of key indicators, including adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, adjusted gross profit and adjusted gross margin. Adjusted EBITDA is a non-GAAP financial measure equal to net income (loss), the most directly comparable financial measure based on US GAAP, adding back net loss from discontinued operations, interest expense, depreciation and amortization, share-based compensation expense, acquisition and restructuring costs, write-off of long-lived assets, and certain litigation and other costs, as noted in the tables below. Adjusted net income (loss) and the related basic and diluted per share amounts are non-GAAP measures equal to net income (loss) from continuing operations, the most directly comparable financial measure based on US GAAP, adding back the effect of spin-off transaction costs. We define adjusted gross profit as revenue less cost of revenue (exclusive of depreciation and amortization), and adjusted gross margin as adjusted gross profit as a percentage of revenue.

Three Months Ended Six Months Ended June June 30, 30, -------------------- ---------------------- (In thousands) 2018 2017 2018 2017 -------- --------- --------- --------- Net income (loss) $ 2,645 $ (20,409 ) $ (24,037 ) $ (33,134 ) Net loss from discontinued operations - 12,133 21,124 15,026 Interest expense, net 1,933 2,445 4,327 4,672 Depreciation and amortization 3,338 3,234 6,669 6,439 Share-based compensation expense 2,614 8,094 9,262 14,948 Acquisition and restructuring costs 317 1,650 3,030 2,318 Write-off of long-lived assets - - - 3,626 Litigation and other costs 92 - 164 - - ------ - ------- - ------- - ------- Adjusted EBITDA $ 10,939 $ 7,147 $ 20,539 $ 13,895 - ------ - ------- - ------- - -------

Three Months Ended June 30, Six Months Ended June 30, --------------------------- ---------------------------- (In thousands, except share data) 2018 2017 2018 2017 ------------ ------------ ------------ ------------ Net income (loss) from continuing operations $ 2,645 $ (8,276 ) $ (2,913 ) $ (18,108 ) Add back: Spin-off transaction costs - - 7,708 - - ---------- - ---------- - ---------- - ---------- Adjusted net income (loss) $ 2,645 $ (8,276 ) $ 4,795 $ (18,108 ) - ---------- - ---------- - ---------- - ---------- Adjusted earnings (loss) per share: Basic $ 0.04 $ (0.15 ) $ 0.07 $ (0.33 ) - ---------- - ---------- - ---------- - ---------- Diluted $ 0.03 $ (0.15 ) $ 0.06 $ (0.33 ) - ---------- - ---------- - ---------- - ---------- Weighted average number of shares outstanding: Basic 75,282,042 54,778,046 71,318,930 54,297,536 - ---------- - ---------- - ---------- - ---------- Diluted(1) 78,196,959 54,778,046 74,233,847 54,297,536 - ---------- - ---------- - ---------- - ----------

1. The diluted weighted average number of shares outstanding for the three and six months ended June 30, 2018 is computed based on the basic weighted average number of shares outstanding plus the dilutive impact of outstanding restricted stock units as of June 30, 2018.

Three Months Ended Six Months Ended June June 30, 30, -------------------- ---------------------- (In thousands) 2018 2017 2018 2017 -------- -------- --------- --------- Revenue $ 56,935 $ 51,031 $ 112,924 $ 100,225 Cost of revenue (exclusive of depreciation and amortization) 33,893 34,781 69,556 68,578 - ------ - ------ - ------- - ------- Adjusted gross profit $ 23,042 $ 16,250 $ 43,368 $ 31,647 - ------ - ------ - ------- - ------- Adjusted gross margin 40 % 32 % 38 % 32 % - ------ - ------ - ------- - -------

We present adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, adjusted gross profit and adjusted gross margin as supplemental measures of our operating performance because we believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure our performance, evaluate the performance of our senior management and measure the operating strength of our business.

Adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, adjusted gross profit and adjusted gross margin are measures frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and is an indicator of the operational strength of our business. Adjusted EBITDA eliminates the uneven effect of considerable amounts of discontinued operations, interest expense, non-cash depreciation and amortization, share-based compensation expense, acquisition and restructuring costs, write-off of long-lived assets, and certain litigation and other costs. Adjusted net income (loss) and adjusted earnings (loss) per share eliminate the effect of the spin-off transaction costs. Adjusted gross profit and adjusted gross margin are calculated by using cost of revenue (exclusive of depreciation and amortization).

Adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, adjusted gross profit and adjusted gross margin are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, either operating income (loss) or net income (loss) as indicators of operating performance or to cash flows from operating activities as a measure of liquidity. The way we measure adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, adjusted gross profit and adjusted gross margin may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements.

Contact Information:

Investors:Jordyn TaraziFluent, Inc.(646)356-8469 JTarazi@fluentco.com

Media:North 6th Agency, Inc.(212)334-9753 ext. 143 fluent@n6a.com