illumin (ILLM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was CAD 29.2 million, down from CAD 33.2 million in Q2 2023, mainly due to declines in managed service and programmatic revenue in Latin America.

• Illumin Self-Serve revenue rose 61% year-over-year to CAD 8.8 million, now 30% of total revenue, driven by 33 new clients and sales initiatives.

• Net loss improved to CAD 1 million from CAD 5.6 million in Q2 2023, reflecting lower costs, a net foreign exchange gain, and reduced income taxes.

• Gross margin held steady at 48% year-over-year and improved sequentially from Q1 2024.

• Total operating expenses decreased 14% year-over-year, supporting improved profitability.

Financial highlights

• Gross profit for Q2 2024 was CAD 14.0 million, with a gross margin of 48%, consistent year-over-year.

• Adjusted EBITDA was CAD 515,000, up 11% year-over-year despite lower revenue, due to reduced operating expenses.

• Cash and cash equivalents stood at CAD 51.6 million as of June 30, 2024, down from CAD 55.5 million at year-end 2023.

• Basic and diluted net loss per share was $(0.02) for Q2 2024, compared to $(0.10) in Q2 2023.

• Operating loss for Q2 2024 was $2.5M, improved from $3.3M in Q2 2023.

Outlook and guidance

• Expectation to return to year-over-year revenue growth in Q3 2024, driven by Illumin Self-Serve momentum and sales initiatives.

• Continued focus on operational discipline, cost management, and investment in growth areas like AI and platform improvements.

• Focus remains on expanding both self-serve and managed service offerings to drive long-term revenue growth and profitability.