{"id":20859,"date":"2025-05-09T06:50:01","date_gmt":"2025-05-09T11:50:01","guid":{"rendered":"https:\/\/illumin.com\/?post_type=news_and_press&#038;p=20859"},"modified":"2025-05-09T06:50:01","modified_gmt":"2025-05-09T11:50:01","slug":"illumin-reports-first-quarter-2025-financial-results","status":"publish","type":"news_and_press","link":"https:\/\/illumin.com\/news-press\/illumin-reports-first-quarter-2025-financial-results\/","title":{"rendered":"illumin Reports First Quarter 2025 Financial Results"},"content":{"rendered":"<p><em>First Quarter Revenue of $29.1 Million up 17% YoY<br \/>\n<\/em><em>Exchange Service Revenue up 148% YoY<\/em><\/p>\n<p><strong><em>(All monetary figures are expressed in Canadian dollars unless otherwise stated)<\/em><\/strong><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p>TORONTO \u2013 May 9, 2025 \u2013 illumin Holdings Inc. (TSX: ILLM and OTCQB: ILLMF) (\u201cillumin\u201d or the \u201cCompany\u201d), the advertising technology platform that enables you to win your next customer, today announced its financial results for the first quarter ended March 31, 2025.<\/p>\n<p><strong><u>First Quarter 2025 Highlights<\/u><\/strong><\/p>\n<ul>\n<li>First quarter 2025 revenue rose 17% year-over-year to $29.1 million, driven by higher Exchange service revenue, partially offset by lower Managed service revenue.<\/li>\n<li>Self-service revenue was $8.4 million, up slightly compared with the year ago period and represented 29% of total revenue.<\/li>\n<li>The Company on-boarded 18 net new Self-service clients during the quarter, reflecting sales initiatives targeting higher-spend clients and positioning the Company for continued long-term Self service revenue growth.<\/li>\n<li>Managed service revenue was $8.7 million compared to $11.8 million in the prior year, primarily reflecting more cautious marketing spend related to geo-political and macro-economic uncertainty.<\/li>\n<li>Exchange service revenue increased by 148% from the prior year to $12.0 million, resulting from increased demand from new customers, an enhanced supplier network, and platform improvements.<\/li>\n<li>Gross margin was 45% compared to 47% for the same period in 2024, reflecting the change in mix to service lines with lower margins, such as Exchange service.<\/li>\n<li>Net revenue, or gross profit (revenue less media-related costs), was $13.1 million, up 13% compared with $11.6 million in the prior year period.<\/li>\n<li>Adjusted EBITDA loss was $0.4 million, compared to $0.0 million in the prior year period, primarily attributable to higher operating costs due to higher sales, sales support functions, and marketing costs, partly offset by higher revenue.<\/li>\n<li>Net loss was $(1.9) million, compared to $(1.1) million in Q1 2024. The increase in the net loss was primarily a result of higher operating costs due to increased sales and marketing costs and a lower net foreign exchange gain compared to the prior year period, partially offset by higher revenue.<\/li>\n<li>On December 23, 2024, the Company commenced a new normal course issuer bid (\u201c2024 NCIB\u201d) for its common shares that will remain open until December 22, 2025, or such earlier time as the 2024 NCIB is completed or terminated at the option of the Company. Under the 2024 NCIB, the Company may purchase for cancellation up to 3,914,167 common shares, representing approximately 10% of the Company\u2019s public float as of December 10, 2024. Daily purchases are limited to 12,518 common shares. For the three months ended March 31, 2025, the company purchased nil common shares pursuant to the 2024 NCIB.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Simon Cairns, illumin\u2019s Chief Executive Officer, commented, \u201cOur first quarter revenue rose 17% even after a slower start to the period than we anticipated. We responded by adjusting our marketing tests week to week and made several advances in our selling process and sales team, which enabled us to exit the quarter with solid growth, led by a 148% rise in our Exchange service revenue and supported by solid performance in Self-service.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>\u201cIn Exchange service, we continue to create and capture both new and recurring demand at surprising levels, as a result of product and selling investments that have given us some differentiation in a very crowded market.\u00a0 As for Self-service, we successfully added 18 new customers in the quarter, which is in line with our key goal of adding targeted, higher-spend clients in this growth area. Self-service revenue, while up slightly year-over-year, exhibited several solid underlying trends, such as increased customer adoption, spend performance and conversion.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>\u201cWe continue to employ the more customer-centric portfolio platform approach that we launched in the second half of 2024, where customers can pick and choose how they want to be supported. Our efforts to market and sell more effectively continue to yield initial positive results, assisted by our ability to offer our clients a broad range of solutions that fit their needs. We continue to invest in our Self-service platform and Exchange service offering, while balancing this with a focus on maintaining liquidity and cost management across our organization.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>\u201cWe remain focused on our plan \u2013 being aggressive in generating better marketing and sales performance, removing friction from our selling processes and furthering our product stickiness as a Self-first platform supported by complimentary Managed and Exchange services,\u201d concluded Mr. Cairns.<\/p>\n<p>&nbsp;<\/p>\n<p>Elliot Muchnik, illumin\u2019s Chief Financial Officer, commented, \u201cFor what is typically a seasonally slower quarter, our strong year-over-year increase in total revenue reflects exceptional growth in Exchange service due to our initiatives to drive increased demand in this area. Adjusted EBITDA declined slightly despite higher revenues as we continued to make strategic investments in sales and marketing to bolster our long-term growth. As we look ahead, operational discipline continues to be a priority as we aim to grow our Adjusted EBITDA while preserving our substantial net cash position.\u201d<\/p>\n<p><strong><em>\u00a0<\/em><\/strong><\/p>\n<p><strong><em>The following table presents a reconciliation of <\/em><\/strong><strong><em>N<\/em><\/strong><strong><em>et loss to Adjusted EBITDA for the periods ended:<\/em><\/strong><\/p>\n<table width=\"592\">\n<tbody>\n<tr>\n<td width=\"233\"><\/td>\n<td colspan=\"2\" width=\"180\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"180\">Three months ended<\/td>\n<\/tr>\n<tr>\n<td width=\"233\"><\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">March 31,<\/td>\n<td style=\"text-align: center;\" width=\"85\">\u00a0March 31,<\/td>\n<\/tr>\n<tr>\n<td width=\"233\"><\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">2025<\/td>\n<td style=\"text-align: center;\" width=\"85\">2024<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">Net loss for the period<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">$ (1,854)<\/td>\n<td style=\"text-align: center;\" width=\"85\">$(1,138)<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">Adjustments:<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td width=\"95\"><\/td>\n<td width=\"85\"><\/td>\n<\/tr>\n<tr>\n<td width=\"233\">\u00a0\u00a0\u00a0 Finance income, net<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">(337)<\/td>\n<td style=\"text-align: center;\" width=\"85\">(506)<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">\u00a0\u00a0\u00a0 Foreign exchange gain<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">(311)<\/td>\n<td style=\"text-align: center;\" width=\"85\">(1,386)<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">\u00a0\u00a0\u00a0 Depreciation and amortization<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">1,382<\/td>\n<td style=\"text-align: center;\" width=\"85\">1,365<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">\u00a0\u00a0\u00a0 Income tax expense (benefit)<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">(63)<\/td>\n<td style=\"text-align: center;\" width=\"85\">378<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">\u00a0\u00a0\u00a0 Share-based compensation<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">737<\/td>\n<td style=\"text-align: center;\" width=\"85\">699<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">\u00a0\u00a0\u00a0 Severance expenses<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">34<\/td>\n<td style=\"text-align: center;\" width=\"85\">90<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">\u00a0\u00a0\u00a0 Nasdaq-related costs<sup>1<\/sup><\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">&#8211;<\/td>\n<td style=\"text-align: center;\" width=\"85\">423<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">\u00a0\u00a0\u00a0 Other non-recurring expenses<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">1<\/td>\n<td style=\"text-align: center;\" width=\"85\">89<\/td>\n<\/tr>\n<tr>\n<td width=\"233\">Total adjustments<\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">1,443<\/td>\n<td style=\"text-align: center;\" width=\"85\">1,152<\/td>\n<\/tr>\n<tr>\n<td width=\"233\"><strong>Adjusted EBITDA<\/strong><\/td>\n<td width=\"85\"><\/td>\n<td width=\"94\"><\/td>\n<td style=\"text-align: center;\" width=\"95\">$ (411)<\/td>\n<td style=\"text-align: center;\" width=\"85\">$ 14<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Nasdaq-related costs are listing fees and directors\u2019 and officers\u2019 insurance specific to the Company\u2019s Nasdaq listing and have been reclassed below Adjusted EBITDA as they are not recurring.<em>\u00a0<\/em><\/li>\n<\/ul>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>Conference Call Details:<\/strong><\/p>\n<p>Date: Friday, May 9, 2025<\/p>\n<p>Time: 8:30AM Eastern Time<\/p>\n<p>To register for the conference call webcast and presentation, please visit:<\/p>\n<p><a href=\"https:\/\/events.illumin.com\/q1-2025-earnings-call\">https:\/\/events.illumin.com\/q1-2025-earnings-call<\/a><\/p>\n<p>Please connect 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.<\/p>\n<p>A recording of the conference call webcast will be available after the call by visiting the Company\u2019s website at\u00a0<a href=\"https:\/\/illumin.com\/investor-information\/\">https:\/\/illumin.com\/investor-information\/<\/a><\/p>\n","protected":false},"featured_media":0,"parent":0,"menu_order":0,"template":"","class_list":["post-20859","news_and_press","type-news_and_press","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/illumin.com\/wp-json\/wp\/v2\/news_and_press\/20859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/illumin.com\/wp-json\/wp\/v2\/news_and_press"}],"about":[{"href":"https:\/\/illumin.com\/wp-json\/wp\/v2\/types\/news_and_press"}],"wp:attachment":[{"href":"https:\/\/illumin.com\/wp-json\/wp\/v2\/media?parent=20859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}