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illumin Holdings Q1 Loss Widened, But Not By As Much As Expected On Higher Than Forecast Revs

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-- illumin Holdings (ILLM.TO) first quarter net loss widened, but not by as much as expected on higher than forecast revenues, while the company said it needs to do better with cash flows.

The advertising platform said net loss widened to $3.2 million, or $0.06 per share, from $1.9 million, over $0.04 per share. Analysts polled by FactSet had forecast a loss of $0.07 per share.

Revenue advanced to $35 million, from $29 million, year over year, beating the $30.35 million expected. The increase was driven by higher exchange service revenue (+45%) and managed service revenue (+7%), the company said.

Tal Hayek, illumin's Chief Executive Officer, said: "Our first quarter reflected a shift in our revenue mix, with revenue up 20% year-over-year to $35.0 million, driven by strong growth in Exchange, which increased 45%. At the same time, parts of our DSP business were softer, and the shift in product mix lowered our overall gross margin. This put pressure on cash flow and made it clear where we need to do better, particularly in how we balance growth with profitability. The DSP business continued to grow, though at a pace below our targets. This is an area where we see clear opportunity to improve execution.

Hayek added that since returning as CEO, he has oriented the organization around three non-negotiable outcomes: grow DSP revenues with a much greater emphasis on CTV; expand gross margins by exiting low-margin transactions and improving the quality of its revenue mix; and reduce SG&A to accelerate profitability."

Illumin shares closed unchanged at $0.87 on Thursday on the Toronto Stock Exchange.

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