illumin (ILLM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 17% year-over-year to CAD 29.1 million, led by a 148% surge in Exchange service revenue, while Managed service revenue declined due to cautious marketing spend amid macroeconomic uncertainty.

• Self-service revenue reached CAD 8.4 million, representing 29% of total revenue, with 18 net new self-service clients onboarded, supporting long-term growth.

• Adjusted marketing and sales tactics mid-quarter, resulting in improved customer onboarding and adoption.

• Launched new features and platform enhancements, including integration with Meta and support for CTV, and preparing to launch an AI-powered forecasting tool in Q2.

• Net loss widened to CAD 1.9 million from CAD 1.1 million in Q1 2024, mainly due to higher operating and marketing costs and a lower net foreign exchange gain.

Financial highlights

• Q1 2025 revenue was CAD 29.1 million, up 17% from CAD 25 million in Q1 2024.

• Exchange service revenue grew 148% year-over-year to CAD 12 million.

• Self-service revenue was CAD 8.4 million, up slightly year-over-year, with 18 new clients added.

• Managed service revenue declined to CAD 8.7 million from CAD 11.8 million year-over-year.

• Gross profit was CAD 13.1 million, up 13% from CAD 11.6 million in Q1 2024.

• Gross margin was 45%, down from 47% due to higher mix of lower-margin Exchange services.

• Adjusted EBITDA loss was CAD 400,000 versus breakeven last year.

• Net loss was CAD 1.9 million, compared to CAD 1.1 million in Q1 2024.

• Basic and diluted net loss per share was $(0.04), compared to $(0.02) in Q1 2024.

• Net cash position: CAD 54 million at quarter end.

Outlook and guidance

• Expect higher expenses in the first half of 2025 due to ongoing investments, with more profitable Q3 and Q4 anticipated as investments complete.

• Continued focus on cost management, operational efficiency, and sustainable revenue growth.

• Plans to prioritize further marketing, product, and brand investments, including a brand relaunch in 2025.

• Management remains focused on driving marketing and sales performance, reducing friction in selling processes, and enhancing product stickiness, with continued investment in Self-service and Exchange platforms.