illumin Reports Second Quarter 2024 Financial Results
Illumin announced its Q2 2024 results with a total revenue of $29.2 million, down from $33.2 million in Q2 2023.
However, illumin self-serve revenue surged by 61% YoY to $8.8 million, representing 30% of total revenue.
Gross margin was consistent at 48%, and adjusted EBITDA improved by 11% YoY to $0.5 million. Net revenue for Q2 2024 was $14.0 million, compared to $15.9 million in Q2 2023.
Notably, the net loss for Q2 2024 narrowed to $1.0 million from a loss of $5.6 million in Q2 2023, attributed to lower operating costs and a net foreign exchange gain. The company also onboarded 33 new self-serve clients, canceled 2.49 million shares under an NCIB, and upgraded its trading to the OTCQB Venture Market.
Illumin ha annunciato i risultati del secondo trimestre 2024, registrando un fatturato totale di 29,2 milioni di dollari, in diminuzione rispetto ai 33,2 milioni di dollari del secondo trimestre 2023.
Tuttavia, il fatturato self-serve di illumin è aumentato del 61% rispetto all'anno precedente, raggiungendo 8,8 milioni di dollari, rappresentando il 30% del fatturato totale.
Il margine lordo è rimasto costante al 48%, e l'EBITDA rettificato è migliorato dell'11% anno su anno, portandosi a 0,5 milioni di dollari. Il fatturato netto per il secondo trimestre 2024 è stato di 14,0 milioni di dollari, rispetto ai 15,9 milioni di dollari del secondo trimestre 2023.
È importante notare che la perdita netta per il secondo trimestre 2024 si è ridotta a 1,0 milione di dollari, rispetto a una perdita di 5,6 milioni di dollari nel secondo trimestre 2023, grazie a costi operativi più bassi e a un guadagno netto da cambi. L'azienda ha anche acquisito 33 nuovi clienti self-serve, annullato 2,49 milioni di azioni nell'ambito di un NCIB, e ha aggiornato il suo trading al mercato OTCQB Venture.
Illumin anunció sus resultados del segundo trimestre de 2024, con unos ingresos totales de 29,2 millones de dólares, una disminución de los 33,2 millones de dólares del segundo trimestre de 2023.
Sin embargo, los ingresos de autoatención de illumin aumentaron un 61% interanual, alcanzando los 8,8 millones de dólares, lo que representa el 30% de los ingresos totales.
El margen bruto se mantuvo constante en el 48%, y el EBITDA ajustado mejoró un 11% interanual, alcanzando los 0,5 millones de dólares. Los ingresos netos para el segundo trimestre de 2024 fueron de 14,0 millones de dólares, en comparación con los 15,9 millones de dólares del segundo trimestre de 2023.
Notablemente, la pérdida neta para el segundo trimestre de 2024 se redujo a 1,0 millón de dólares desde una pérdida de 5,6 millones de dólares en el segundo trimestre de 2023, gracias a menores costos operativos y una ganancia neta por diferencias de cambio. La empresa también incorporó a 33 nuevos clientes de autoatención, canceló 2,49 millones de acciones bajo un NCIB, y mejoró su operación al mercado OTCQB Venture.
일루민은 2024년 2분기 실적을 발표하며 총 수익이 2920만 달러로, 2023년 2분기 3320만 달러에서 감소했다고 밝혔습니다.
그러나 일루민 셀프 서비스 수익은 전년 대비 61% 급증하여 880만 달러에 이르렀으며, 이는 총 수익의 30%를 차지합니다.
총 마진은 48%로 일관되었고, 조정된 EBITDA는 전년 대비 11% 개선되어 50만 달러에 달했습니다. 2024년 2분기 순수익은 1400만 달러였으며, 2023년 2분기 1590만 달러와 비교됩니다.
특히, 2024년 2분기 순 손실은 100만 달러로 줄어들었으며, 2023년 2분기에는 560만 달러의 손실을 기록했습니다. 이는 운영 비용 절감과 순환 거래 이익 덕분입니다. 또한 이 회사는 33명의 새로운 셀프 서비스 고객을 유치하고, NCIB에 따라 249만 주를 취소하며, OTCQB 벤처 시장으로 거래를 업그레이드했습니다.
Illumin a annoncé ses résultats pour le deuxième trimestre 2024, avec un chiffre d'affaires total de 29,2 millions de dollars, en baisse par rapport à 33,2 millions de dollars au deuxième trimestre 2023.
Cependant, le chiffre d'affaires en libre-service d'illumin a augmenté de 61 % d'une année sur l'autre pour atteindre 8,8 millions de dollars, représentant 30 % du chiffre d'affaires total.
La marge brute est restée stable à 48 %, et l'EBITDA ajusté a progressé de 11 % d'une année sur l'autre pour atteindre 0,5 million de dollars. Le chiffre d'affaires net pour le deuxième trimestre 2024 s'élevait à 14,0 millions de dollars, contre 15,9 millions de dollars au deuxième trimestre 2023.
Il est à noter que la perte nette pour le deuxième trimestre 2024 a été réduite à 1,0 million de dollars, contre une perte de 5,6 millions de dollars au deuxième trimestre 2023, grâce à la réduction des coûts d'exploitation et à un gain net de change. L'entreprise a également intégré 33 nouveaux clients en libre-service, annulé 2,49 millions d'actions dans le cadre d'un NCIB, et a mis à jour son marché de négociation vers le marché OTCQB Venture.
Illumin hat die Ergebnisse für das zweite Quartal 2024 bekannt gegeben, mit einem Gesamtumsatz von 29,2 Millionen Dollar, was einem Rückgang von 33,2 Millionen Dollar im zweiten Quartal 2023 entspricht.
Dennoch stieg der Umsatz im Selbstbedienungsbereich von illumin im Vergleich zum Vorjahr um 61% auf 8,8 Millionen Dollar, was 30% des Gesamtumsatzes ausmacht.
Die Bruttomarge blieb stabil bei 48%, und das bereinigte EBITDA verbesserte sich im Jahresvergleich um 11% auf 0,5 Millionen Dollar. Der Nettoumsatz für das zweite Quartal 2024 betrug 14,0 Millionen Dollar im Vergleich zu 15,9 Millionen Dollar im zweiten Quartal 2023.
Bemerkenswert ist, dass der Nettverlust für das zweite Quartal 2024 auf 1,0 Millionen Dollar gesenkt wurde, nach einem Verlust von 5,6 Millionen Dollar im zweiten Quartal 2023, was auf niedrigere Betriebskosten und einen Nettogewinn aus Währungsverschiebungen zurückzuführen ist. Das Unternehmen hat außerdem 33 neue Selbstbedienungskunden gewonnen, 2,49 Millionen Aktien im Rahmen eines NCIB eingestellt und seinen Handel auf den OTCQB Venture Market aktualisiert.
- Illumin self-serve revenue grew 61% YoY to $8.8 million.
- Net loss reduced to $1.0 million from $5.6 million in Q2 2023.
- Adjusted EBITDA improved by 11% YoY to $0.5 million.
- Onboarded 33 new self-serve clients.
- Total revenue declined to $29.2 million from $33.2 million in Q2 2023.
- Net revenue fell to $14.0 million from $15.9 million in Q2 2023.
Total Second Quarter Revenue of
illumin Self-Service Revenue up
Adjusted EBITDA Improvement of
(All monetary figures are expressed in Canadian dollars unless otherwise stated)
TORONTO, Aug. 08, 2024 (GLOBE NEWSWIRE) -- illumin Holdings Inc. (TSX: ILLM) (OTCQB: ILLMF) (“illumin” or “Company”), a journey advertising technology company that empowers marketers to make smarter decisions about communicating with online consumers, today announced its financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Second quarter 2024 revenue was
$29.2 million compared to$33.2 million in Q2 2023, reflecting a decline in managed service revenue and programmatic revenue, primarily in Latin America. - illumin self-serve revenue was
$8.8 million in the quarter, up61% year-over-year and represented30% of total revenue compared to16% in Q2 2023. This growth was driven largely by new customer relationships. - The Company onboarded 33 net new illumin self-serve clients during the quarter, resulting from sales initiatives targeting higher-spend customers.
- Second quarter 2024 gross margin was
48% , which was consistent with Q2 2023 and a mild improvement from Q1 FY 2024. - Net revenue, or gross profit (revenue less media-related costs), for the second quarter ended June 30, 2024 was
$14.0 million , compared to$15.9 million in Q2 2023, reflecting lower sales. - Adjusted EBITDA was
$0.5 million , an increase of11% compared to the same period in 2023 despite the decline in revenue, which was primarily attributable to lower operating costs. - Q2 2024 net loss was
$1.0 million , compared to a net loss of$5.6 million in Q2 2023. This improvement was mainly due to lower operating costs, a net foreign exchange gain versus a loss in Q2 2023, and lower income taxes. - On November 13, 2023, the Company commenced a new normal course issuer bid (“NCIB”) to purchase for cancellation up to 4,330,226 of its outstanding common shares. During the three and six months ended June 30, 2024, the Company purchased and cancelled 1,342,344 and 2,490,686 of its common shares under the NCIB at an average price of
$1.64 and$1.65 per share, totaling$2.2 million and$4.1 million , respectively. - In June 2024, the Company upgraded the trading of its common shares from the OTC Pink Market to the OTCQB Venture Market (the "OTCQB") in the United States, which is intended to provide shareholders and investors with improved accessibility, liquidity, and transparency on the Company.
Simon Cairns, illumin’s Chief Executive Officer, commented, “In the second quarter, we saw good growth both year-over-year and sequentially in illumin self-service, along with a good sequential increase in managed services. As we listen closely to customers who value our services, we believe there may be untapped potential in creating a complimentary portfolio of products and services including both self-service and managed services. Our rebuilding of the leadership team reflects our intent to be market responsive and focused on delivering results for our customers and performance for our investors.”
Mr. Cairns added, “Complementing this, we have been refining our sales activities, including honing our illumin self-serve go to market strategy. So, even while our sales and marketing spending fell year-over-year, our illumin self-serve revenue still grew rapidly as our sales efforts became more productive. We also continued to prioritize increasing our managed service sales efficiency, as we consider this to be an area with untapped potential. Together, we believe these actions will drive our long-term revenue growth and improve our profitability.”
Elliot Muchnik, illumin’s Chief Financial Officer, commented, “As we have been carefully managing our expenses and reallocating our internal resources to areas where we see the most growth potential, we maintained our overall focus on operational discipline. This effort has contributed to a total operating expense decline of over
The following table presents a reconciliation of net loss to Adjusted EBITDA for the periods ended:
| (unaudited, in thousands of Canadian dollars) | |||||||||||||
| Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net loss for the period | $ | (1,014 | ) | $ | (5,608 | ) | $ | (2,152 | ) | $ | (9,170 | ) | |
| Adjustments: | |||||||||||||
| Finance income, net | (469 | ) | (265 | ) | (975 | ) | (982 | ) | |||||
| Foreign exchange loss (gain) | (556 | ) | 2,403 | (1,942 | ) | 2,459 | |||||||
| Depreciation and amortization | 1,387 | 1,449 | 2,752 | 2,939 | |||||||||
| Income tax expense (benefit) | (491 | ) | 166 | (113 | ) | 236 | |||||||
| Share-based compensation | 1,108 | 1,671 | 1,807 | 3,013 | |||||||||
| Severance expenses | 10 | 205 | 100 | 248 | |||||||||
| Nasdaq-related costs1 | 313 | 444 | 736 | 957 | |||||||||
| Other expenses | 227 | - | 316 | - | |||||||||
| Total adjustments | 1,529 | 6,073 | 2,681 | 8,870 | |||||||||
| Adjusted EBITDA | $ | 515 | $ | 465 | $ | 529 | $ | (300 | ) | ||||
(1) Nasdaq-related costs are listing fees and directors’ and officers’ insurance specific to the Company’s Nasdaq listing and have been reclassed below Adjusted EBITDA as they are not recurring.
Conference Call Details:
Date: Thursday, August 8, 2024
Time: 8:30AM Eastern Time
To register for the conference call webcast and presentation, please visit https://illumin.com/investor-information/earnings-call/.
Please connect 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.
A recording of the conference call webcast will be available after the call by visiting the Company’s website at https://illumin.com/investor-information/
Non-IFRS Measures
This press release makes reference to certain non-IFRS Accounting Standard measures (“non-IFRS measures”). These measures are not recognized measures under IFRS Accounting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including “revenue less media costs”, “revenue less media costs margin”, “Adjusted EBITDA” and “Adjusted Net Income (Loss)” (as well as other measures discussed elsewhere in this press release).
The term “revenue less media costs margin” refers to the amount that “revenue less media costs” represents as a percentage of total revenue for a given period, while the term “revenue less media costs” refers to the net amount of revenue after deducting direct media costs. Revenue less media costs is used for internal management purposes as an indicator of the performance of the Company’s solution in balancing the goals of delivering excellent results to advertisers while meeting the Company’s margin objectives and, accordingly, the Company believes it is useful supplemental information.
“Adjusted EBITDA” refers to net income (loss) after adjusting for finance costs (income), impairment loss, fair value gain, income taxes, foreign exchange loss (gain), depreciation and amortization, share-based compensation, acquisition and related integration costs, severance expenses and adjustments to the carrying value of investment tax credits receivable. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities before taking into consideration how those activities are financed and taxed and prior to taking into consideration depreciation of property and equipment and certain other items listed above. It is a key measure used by the Company’s management and board of directors to understand and evaluate the Company’s operating performance, to prepare annual budgets and to help develop operating plans.
“Adjusted Net Income (Loss)” refers to net income (loss) after adjusting for non-cash items such as impairment loss, fair value gain, depreciation and amortization, share-based compensation, and foreign exchange loss (gain). The Company believes that Adjusted Net Income (Loss) is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities on a cash basis. It is another key measure used by the Company’s management and board of directors to understand and evaluate the Company’s operating performance, to prepare annual budgets and to help develop operating plans.
These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers, and that these non-IFRS measures are relevant to their analysis of the Company.
About illumin:
illumin is a journey advertising platform that enables marketers to reach consumers at every stage of their journey by leveraging advanced machine learning algorithms and real-time data analytics. The Company’s mission is to illuminate the path for brands to connect with their customers through the power of data-driven advertising. Headquartered in Toronto, Canada, illumin serves clients across North America, Latin America, and Europe.
Disclaimer with regard to forward-looking statements
Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, illumin does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
For further information, please contact:
| Steve Hosein Investor Relations Coordinator illumin Holdings Inc. 416-918-5647 investors@illumin.com | David Hanover Investor Relations – U.S. KCSA Strategic Communications 212-896-1220 dhanover@kcsa.com | ||
Please note that the following financial information is an extract from the Company’s Condensed Interim
Consolidated Financial Statements (unaudited) for the three and six months ended June 30, 2024 and 2023 (the “Financial Statements”) provided for readers’ convenience and should be viewed in conjunction with the Notes to the Financial Statements, which are an integral part of the statements. The full Financial Statements and MD&A for the period may be found by accessing SEDAR+ at www.sedarplus.com.
illumin Holdings Inc.
Condensed Interim Consolidated Statements of Financial Position
(Unaudited; Expressed in thousands of Canadian dollars)
| June 30, 2024 | December 31, 2023 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 51,584 | $ | 55,455 | |
| Accounts receivable | 26,707 | 32,136 | |||
| Income tax receivable | 3,186 | 3,301 | |||
| Prepaid expenses and other | 3,670 | 4,123 | |||
| 85,147 | 95,015 | ||||
| Non-current assets | |||||
| Other assets | 65 | 63 | |||
| Property and equipment | 8,230 | 9,329 | |||
| Intangible assets | 8,376 | 7,618 | |||
| Goodwill | 4,870 | 4,870 | |||
| 106,688 | 116,895 | ||||
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | 22,563 | 26,488 | |||
| Income tax payable | 571 | 717 | |||
| Borrowings | 113 | 131 | |||
| Lease obligations | 1,636 | 1,726 | |||
| 24,883 | 29,062 | ||||
| Non-current liabilities | |||||
| Borrowings | - | 47 | |||
| Deferred tax liability | 665 | 1,001 | |||
| Lease obligations | 5,205 | 6,087 | |||
| 30,753 | 36,197 | ||||
| Shareholders’ equity | 75,935 | 80,698 | |||
| 106,688 | 116,895 | ||||
illumin Holdings Inc.
Condensed Interim Consolidated Statements of Comprehensive Loss
(Unaudited; Expressed in thousands of Canadian dollars)
For the three and six months ended June 30, 2024 and 2023
| Three months ended | Six months ended | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue | ||||||||||||
| Managed service | $ | 14,351 | $ | 20,127 | $ | 26,111 | $ | 37,076 | ||||
| Self-service illumin | 8,750 | 5,429 | 17,129 | 7,602 | ||||||||
| Programmatic | 6,103 | 7,634 | 10,916 | 15,007 | ||||||||
| 29,204 | 33,190 | 54,156 | 59,685 | |||||||||
| Media-related costs | 15,244 | 17,309 | 28,571 | 31,327 | ||||||||
| Gross profit | 13,960 | 15,881 | 25,585 | 28,358 | ||||||||
| Operating expenses | ||||||||||||
| Sales and marketing | 5,845 | 6,566 | 11,158 | 12,244 | ||||||||
| Technology | 4,512 | 5,539 | 9,038 | 10,908 | ||||||||
| General and administrative | 3,638 | 3,960 | 6,012 | 6,711 | ||||||||
| Share-based compensation | 1,108 | 1,671 | 1,807 | 3,013 | ||||||||
| Depreciation and amortization | 1,387 | 1,449 | 2,752 | 2,939 | ||||||||
| 16,490 | 19,185 | 30,767 | 35,815 | |||||||||
| Loss from operations | (2,530 | ) | (3,304 | ) | (5,182 | ) | (7,457 | ) | ||||
| Finance income, net | (469 | ) | (265 | ) | (975 | ) | (982 | ) | ||||
| Foreign exchange loss (gain) | (556 | ) | 2,403 | (1,942 | ) | 2,459 | ||||||
| (1,025 | ) | 2,138 | (2,917 | ) | 1,477 | |||||||
| Net loss before income taxes | (1,505 | ) | (5,442 | ) | (2,265 | ) | (8,934 | ) | ||||
| Income tax expense (benefit) | (491 | ) | 166 | (113 | ) | 236 | ||||||
| Net loss for the period | (1,014 | ) | (5,608 | ) | (2,152 | ) | (9,170 | ) | ||||
| Basic and diluted net loss per share | (0.02 | ) | (0.10 | ) | (0.04 | ) | (0.16 | ) | ||||
| Other Comprehensive Loss | ||||||||||||
| Items that may be subsequently reclassified to net loss: | ||||||||||||
| Exchange (loss) gain on translating foreign operations | (144 | ) | 248 | (308 | ) | (53 | ) | |||||
| Comprehensive loss for the period | (1,158 | ) | (5,360 | ) | (2,460 | ) | (9,223 | ) | ||||
illumin Holdings Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited; Expressed in thousands of Canadian dollars)
For the six months ended June 30, 2024 and 2023
| 2024 | 2023 | ||||||
| Cash provided by (used in) | |||||||
| Operating activities | |||||||
| Net loss for the period | $ | (2,152 | ) | $ | (9,170 | ) | |
| Adjustments to reconcile net loss to net cash flows | |||||||
| Depreciation and amortization | 2,752 | 2,939 | |||||
| Finance income, net | (975 | ) | (982 | ) | |||
| Share-based compensation | 1,807 | 3,013 | |||||
| Foreign exchange loss (gain) | (1,942 | ) | 2,459 | ||||
| Income tax expense (benefit) | (113 | ) | 236 | ||||
| Change in non-cash operating working capital | |||||||
| Accounts receivable | 5,740 | (1,190 | ) | ||||
| Prepaid expenses and other | 1,032 | (1,164 | ) | ||||
| Other assets | (2 | ) | (24 | ) | |||
| Accounts payable and accrued liabilities | (893 | ) | (5,437 | ) | |||
| Income taxes paid, net | (166 | ) | (121 | ) | |||
| Interest received, net | 1,068 | 1,318 | |||||
| 6,156 | (8,123 | ) | |||||
| Investing activities | |||||||
| Additions to property and equipment | (1,042 | ) | (421 | ) | |||
| Additions to intangible assets | (2,465 | ) | (2,824 | ) | |||
| (3,507 | ) | (3,245 | ) | ||||
| Financing activities | |||||||
| Repayment of term loans | - | (4,411 | ) | ||||
| Proceeds from international loans | - | 304 | |||||
| Repayment of international loans | (65 | ) | (411 | ) | |||
| Payment of leases | (1,129 | ) | (1,691 | ) | |||
| Repurchase of common shares for cancellation | (4,033 | ) | (1,500 | ) | |||
| Proceeds from the exercise of stock options | 4 | - | |||||
| (5,223 | ) | (7,709 | ) | ||||
| Decrease in cash and cash equivalents | (2,574 | ) | (19,077 | ) | |||
| Impact of foreign exchange on cash and cash equivalents | (1,297 | ) | (1,197 | ) | |||
| Cash and cash equivalents – beginning of period | 55,455 | 85,941 | |||||
| Cash and cash equivalents – end of period | 51,584 | 65,667 | |||||
| Supplemental disclosure of non-cash transactions | |||||||
| Adjustments to property and equipment under leases | (23 | ) | 56 | ||||
| Unpaid additions (reversals) to property and equipment, net | (561 | ) | - | ||||
| Unpaid taxes on share repurchases | (81 | ) | - | ||||
FAQ
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