Q3 2021 AcuityAds Holdings Inc Earnings Call
Certainly at the company's 2021 objectives, the company's strategy to achieve those objectives as well as statements with respect to management's beliefs plans estimates and intentions and similar statements concerning anticipated future events results circumstances performance or expectations that are not.
Historical facts such forward looking statements reflect management's current beliefs and are based on information currently available to management and are subject to a number of significant risks and uncertainties that could cause actual results to differ materially from those anticipated. Please refer to the cautionary statements and the risk factor.
As identified in our filings with SEDAR for a more detailed explanation of the inherent risks and uncertainties that could affect such forward looking statements. Following the presentation. We will conduct a question and answer session I would now like to turn the conference call over to tell hajek, the cofounder and Chi.
Executive officer of acuity ads to update you on the operations of the business.
[music].
Happy birthday alumina.
Illuminate is so young but already started changing the world of advertising. It gives the ability for advertisers to plan and execute on our consumer journey.
I know his dream they can but now they can actually do it so I'd like to thank the acuity family for designing and creating such an amazing concept.
And to all our partners customers investors for being along the journey with US. Thank you everyone.
Good morning, everyone and welcome to acuity Q3 Investor presentation.
Well I can't believe it's been a year since we launched alumina.
ILUVIEN is changing the world of advertising and it's certainly change the way of acuity.
I'm, so proud of the acuity family for delivering such an amazing quarter of growth.
Which is up 42% sequentially from Q2 to seven $4 million.
Again this is the COO.
Fourth quarter of Illumina and look at the run rate that we're already seeing it. So thank you from the bottom of my heart to the acuity family and for delivering this amazing growth.
Q3, we have seen a modest growth.
It was <unk>.
Less than we expected.
And I can tell you. There's a few reasons why one is partially due to the legacy clients experiencing some supply chain issues. So needless to say when clients are experiencing shortage of product.
Pushing advertising less on a temporary basis.
They get their supply sources back in place and we've seen a number of customers.
Existing customers doing that in a number of potential customers that are excited about future integration are just slowing down there.
We all know this is a temporary issue and it will come back.
Big time and that problem is going to be sold.
The other thing is we've been focusing since the launch of ILUVIEN on tier one brands.
Well tier one brand has a longer sales cycle.
And we're happy about the long sales cycle, because it means deep integrations and much much better relationship with those brands in the long run and we're going to go into that.
That's more in the future.
We are continuing to be Super Super focused on alumina and we're very happy with the progress that we're seeing so far.
And I have to say.
Everybody that acuity.
In the last year in the past 12 months.
Done amazing things things that we've never done before.
We IPO the NASDAQ, we strengthened our balance sheet and the most important part is we launched illumina.
Alumina not only the change in the world. It is giving us a differentiator that we've never seen before it gives us the ability to have that kind of conversation with the type of brands that are in our pipeline that we have.
Never seen before.
So I do believe that this company.
Its best position, it's ever been and we now have the ability to think long term.
I wanted to share that.
We think about the market.
Really the three segments that we're looking at the market the enterprise segment the mid market.
The small to medium size business market.
So let's start with the enterprise so enterprises, what we've been focusing on since we launched ILUVIEN, we're having tons of conversation with the enterprise brands and their loving. It in fact, we have many of them are using assistance today, mostly testing it for much bigger integrations in the future.
We expect that the sales cycle to be long, but proving to be even longer than we expected and I do believe it's going to start hitting next year sometime in our pipeline. We have eight auto manufacturers are talking to us for for deeper integration.
It's not a big surprise because auto is one of those things.
You think consumer journey and you start.
Thinking that way before the purchase happens so that that's a brilliant.
Have a very large insurance there.
We have.
Home improvement retailer in there all of those are great great customers that are in our pipeline and I guess do believe some of those.
Integration will happen next year.
Mid market.
So mid market is interesting maybe market, it's what's driving the revenue of acuity to date.
Alumina I would say today.
So mid market.
Our brand but.
Not as large as the fortune 1000 brands and they are more flexible and their move faster and try this woman and they've seen the success of ILUVIEN.
And they are increasing their final lumen.
And so we are turning a little bit more attention to them as well so we can see even.
Bigger growth from that market I'd like to share some examples of.
All of those mid market companies.
So there was an e-commerce company that started using a movement in Q1 of this year they spent $22000.
They liked it so much that in Q3, they spend 152000.
Our clothing retailer that spend only $5000 in Q1 spend of 175000 in Q3.
A large auto manufacturer started with 98000.
And in last quarter spent $216000.
On this and a health care company that spent 194000 in Q1 spend 648000.
In Q3.
Humana, which were vocal about before spent 49000 in Q1 and 169000 in Q3.
So as you can see it's working.
They try it they really liked it they see the ability to control the consumer journey to have the conversation with their consumers.
And then they see the insights and the learning they get permits all of that with the fact that it's very easy to use very intuitive brings them back for more and spending more and more and more and we expect that trend to continue.
And then there's a small medium sized businesses and let me be a little bit more precise about it for me it's more of the small businesses like the pizza stores, a one log in and spend $500 a month to target a five mile radius around their store.
Let me tell you something this is a complete wide open space when it comes to programmatic.
Nobody is doing it well why because it's extremely complex to run programmatic stood at <unk>.
And Illumina has the best chance of infotainment one so the alumina is easy to use.
Intuitive.
And.
It takes only a few minutes to set up the company, adding a few extra fuel source like a creation tool.
Payment system and a few other small integration and simplification will make it very ready for that market.
So I'm very excited about this market, we don't have the right infrastructure and organization to date to execute on it but on our strategic roadmap. We are we're very much including in bringing innovation to the segments to the market. We're also focusing on the business operation as we are enhancing our <unk>.
<unk> to make sure we have the right focus and alignment.
Two new additions to the family we brought in a new CFO.
One that will help us tie the whole organization together all the big projects that we're doing and bringing together and help all the departments exceed as well.
That's something that's very important as we're preparing for mega growth into the future and it's something that I believe we were lacking.
And the second innovation, we brought in.
As the Chief Empowerment officer.
Which I believe it's so important in this time.
Generally speaking not acuity, but all industry, we've seen many people working from home.
We've seen many people disconnect from one another we've seen.
The global crisis, when it comes to too.
Labor.
We've seen more and more problems with emotional strength of people.
And this is something that also happens that acuity, it's harder and harder to do connected the team at the family I think we're doing it better than most but there is still a lot of work to be done there and we brought on a chief.
Farmer Mac officer.
Strictly for that reason and it's already proving itself to have very positive impact. So I'm very proud that acuity is investing in the emotional power of people and that will pay back tremendously for the business in the future.
So I can tell you that we are now turning our attention to hyper growth starting next year.
That's our attention. So we're working on many different elements related to us, but obviously it all has to do with Illumina and I can tell you the founders of acuity the executive of acuity and the rest of the family members of acuity did not create a movement to do $50 million in revenue or $100 million or 200.
Million.
We've created a movement to take over the world of advertising and to do a lot more than that and this is what we're focusing on and we believe that this is coming in the next few years.
Well lets drill down a little bit more on Q3 results. So we delivered $27 $5 million in revenue.
It's up five 4% year over year.
When you look at it on a constant currency basis, which is important to look at it that way because most of our revenue revenues.
Dollars.
Most of our cost is in U S dollars, but we are reporting in Canadian dollars. So sometimes there is a disconnect but when you look at it as that's where we're at 11 three.
<unk> percent year over year growth still not where we want to be.
But.
Needless to say, we've talked about what some of the reasons why we're seeing lower growth and we do believe it's a temporary situation.
We have done phenomenal on a EBITDA basis, so we now deliver $2.2 million and LTM EBITDA, obviously keep improving the financial situations of the company.
Into the future and more money in the bank can we have over $100 million in the biggest jump.
The.
Increases are possibilities for investments in different areas CTV another great place to.
We concentrate on because we do believe it's a it's a major.
Growth factor into the future, we've seen 220% growth.
Q3 over Q3 of last year.
Victor CTV is going to continue being a major growth.
And the other more revenue.
42% up sequentially again, another mega global quarter on a sequential basis to $7 4 million.
Just to show you our COO.
Customers really really loving the product and the clients that we have in ILUVIEN. We now have 49 clients on ILUVIEN at the end of Q3, we had about 40 at the end of Q2.
We had 26 tier one clients versus 17 tier one five that we added at the end of Q2. So we added more clients the fiber spending more.
Very good recipe for the future we have a completely different segments across the board. We have media, we have politics with healthcare consumer products retail stats electronics manufacturer <unk> gamma and again illumina the platform that could work on any type of industry.
Naturally the industries are spending more in line with where we're going to see the most strength.
But it could really work on anything and the majority of the lumen revenue is still coming from new businesses, new logos to acuity again open up a lot of doors for us with company that would never speak to us before.
That's what we're seeing.
Next year, sometimes we'll start turning our focus on.
Bringing our legacy classic goes online.
At the end of the next year I don't want to have the legacy product in play anymore.
And we're continuing to see very strong growth in the pipeline in fact, we're seeing more and more demos.
We're seeing more and more requests incoming bounds requests coming into the system on a regular basis and our team is very busy on filling those.
And in tier one clients talk to us all the time about it we are the experts in the consumer journey today. So we're very happy to be in that state.
And looking really really excited about what we see in the future on the aluminum side.
And just to really reiterate we launched with them in Q4 of last year $1 $5 million in revenue in Q1 was $3 2 million Q2 of $5 2 million and then Q3 seven 4 million.
That's amazing achievement, even without the major brands, signing like multi year deals with that.
Which we do believe that's coming next year.
To go download the lumen product to sell side analysts they ask for it we thought it was a great idea why because.
Our sales team is not using so much powerpoints anymore, when theyre going to make yourself demo the product as soon as the demo the product people get really excited so we showed this at the analyst and they got really excited and then they start to understand the difference between the legacy system and Illumina system.
And we wanted to show at least a snippet of that two guys. Today I mean, we're not going to take a lot of time, it's going to be a very short and precise demo, but we have the longer version if you'd like to see it on our website on our Youtube channel and you're welcome to go and see it more on Walker.
To request you own them or we'll be happy to do it for you.
Max is going to do the demo for our thank you Max for joining US please take it away.
Hey, guys, let's take a look here at our the alumina journey canvas, which is designed to mimic the whiteboard that lives in your branch conference rooms, where we have a problem in the ecosystem, where it takes a vast amount of machines slash vendors in human talent to really get a clear picture into what's happening along the consumer journey.
Brands need a D. M. P. D. S. P multi touch attribution platform consumer data platform and in alumina is designed to be the control center to really help you understand the consumer journey through a singular screen of understanding. So we're gonna look at an example for F 150, and what you'll notice here.
As we our audience ignostic. So if I were to click here, we have a library of audiences that you can buy just like the trade desk media math Amobi. We all have the same third party audiences and exchanges and S. S piece in terms of inventory for the most part that's table Stakes. So the idea is you spent.
Thousands of dollars as a brand or agency to figure out who is the right target for your audience and you wanted to be able to reach those users are machine allows you to take back control of how you message. These users in a unified way across the entire consumer journey versus building your campaign on a whiteboard.
Sending it to all of these different partners for execution than actually trying to judge performance in silos and using machines to tie it all back together and what I always ask prospects is wouldnt it make more sense that it was connected from the start.
And the answer of course is of course the blood.
Right, we've got a true cross funnel journey, we've got awareness.
Then we go over here to engagement and then we've got conversion what you'll also notice is we have the ability to customize the marketing goal at each stage of the funnel. So once again I'll zoom in so here for F 150.
The actual goal is awareness. So the machine is going to go after users who we think could be good life stage targets for F 150, but don't have a tremendous amount of brand equity yet. So we're trying to build brand equity by serving media here now is the same user continues to have increased brand equity from the media, we're serving they would then transition.
And over here to engagement, where we changed the goal to a cost per click bull.
Here now we're looking at how likely is this consumer to engage with the competitive Differentiators exclusive features are the driving comfort of the F 150 versus the Silverado as we continue to build engagement and equity with this user the user then transitioned into the conversion stage and as a marketer I can again change the Gulf.
Here, we have a CPA or ROE as bowl. So now how likely is this consumer after bringing them through the rest of the funnel how likely are they now to sign up for a test drive or build out of F. 150 on the website or research financing or some sort of low funnel action.
So the point is as we.
We can hit your lower funnel goal.
Youre mid funnel and then your awareness goal, but now we can go back to F 150, and say hey by the way it costs X to drive this audience of NFL fans from unaware of the need to scheduling a test drive with F 150 versus your DIY target versus your power sports.
Versus your contract your target right. So this is something that would be extremely difficult to figure out. If you didn't have a connected journey. So big picture, we're valuing a user matching them to a path and then dynamically inserting them into the journey with the ultimate goal of fast tracking users, who don't need loaded communication.
And getting better at nurturing users who need equity Bill. This is what we do and this is the alumina journey campus.
As you can see the uniqueness of ILUVIEN is self explanatory.
Thank you Max we're sharing this with us.
And we will now go to <unk>, our interim CFO to share some Q3 financials.
Thank you Paula good morning, and thank you for joining us today.
I want to first mention that they look forward.
Fluids work in this town and that's a big team in the income people at all.
Do you think this third quarter we.
We continue to see rapid adoption.
Platform.
Hoping to drive year over year total company revenue and EBIT.
Is there anything happening in first line for us.
He is our internal expectations again for the quarter.
This growth continues to be driven in large part.
So inbound interest in the platform from tier ones.
The domain okay. Thank you.
Obama.
Good morning.
And we believe here.
In the early stage of their life.
And long term potential.
With this backdrop I will now review, our third quarter financial results on the next slide.
In the third quarter was $27 5 million and five 4% increase compared to $26 1 million in Q D.
And so reminder, these close to 70% of our revenues in the U S.
So I'm guessing mangan Bill right.
Our troops.
On a constant currency basis.
Adding increased 11, 2% year over year.
Revenue in the quarter totaled $7 4 million and 42% sequential increase compared to $5 2 million in Q2, 2021.
I think it's quite telling.
Continued strong rental growth from Illumina.
Despite supply chain related headwinds.
Our legacy customers.
You need the guidance has been related to this issue.
Our net revenue was <unk> three new lands in Q3, 2021.
$18 5 million in Q2.
An increase of five 4% year over year.
Our gross profit margin was 51, 9% in Q CTO anything you want each was in line with these key CTO anything.
<unk> expense in third quarter, 2021, total $12 5 million compared to 12 million in the same periods in Spain.
<unk> expenses as a percentage of revenue was 45, 5%.
<unk> from 46, 2% in the same period last year.
This sales growth and strong.
Yes, it's EBITDA.
<unk> 4 million in Q3 is when you're doing your line.
Up nine 5%, California Lane in Q3 'twenty.
So it does fit well into 2021 we reported net income of $8 4 million compared to 90 million for the same period in 2020.
An increase of 265% turning to our nine months results on the next slide.
So I thought the revenue was $85 2 million for the nine months ended September 32021.
Because I need 2%.
Over here, Keith compared to $69 eight kneeland you didn't really competed for anything.
It's important to note you didn't give us nine months.
If anyone.
Revenue from ILUVIEN totaled $15 8 million.
Which is well ahead of what our initial expectations.
<unk> of the year.
Gross profit on that the revenue for the nine months ended September 32000.
If anyone was $44 four neely.
24% increase compared to $35 8 million gain.
Got it.
Our gross margin for the first nine months due mainly to 91 with 52, 1% compared to 51, 8% for the same period last year <unk> expenses for the nine months ended September 32021, total 57 9 million compared to <unk>.
$5 4 million for the same period in Spain and Sweden.
<unk> expenses as a percentage of revenue for the first nine months of this year with plentiful, 0.5% down from 57% for the same period last year.
EBIT totaled $14 4 million for the first nine months of 'twenty two.
Anyone.
85% increase from 8 million getting the same periods in 2000 swing.
These continue to grow year over year increase.
Primarily due to our higher.
This revenue, including revenues and the stronger Canadian levies as previously mentioned.
Net income in the first nine months of 2021 totaled eight 1 million.
Compared to the net loss of five.
Milan for the same period last year.
Again this year over year increase was due to the factors I discussed earlier.
Until all of them.
You can see our cash balance stood at 100 point seemingly in a sharp increase from 22 6 million at December 31st two anything.
This reflects both our strong cash flow generation in the first nine months.
Thank you Ron.
Thanks Heath from our 57 5 million U S. Dollar caused both at a public offering in the United States and Canada.
You didn't second quarter, including our at least for the notes that capital market.
In line with no growth strategy and still at good rates and leverage <unk> been able to achieve.
<unk> January to solid adjusted EBIT growth.
As you can see here on the trailing 12 months basis as of September 32020.
Your line.
Pleased to report that we generated adjusted EBIT of $32 2 million.
Lisa <unk>, 8% over the same period in 2020, Lastly, I hope Atlantic Dubuque update on our capital structure.
As of September 30 is there anything you've won at GTS had 60.6 million common shares outstanding and.
And $63 7 million fully diluted shares.
And then I will pass it back over to Tyler.
Losing remarks.
Thank you Jana.
Well, Jeff that's worth closing and before we go to Q&A I'd like to reiterate some of the things we started with.
I'm, so proud of the acuity team for delivering such another great quarter of aluminum growth, 42% up in revenue to $7 4 million.
In the past year, we IPO on the NASDAQ and strengthen our balance sheet to the point that we have over $100 million in the bank account.
And most importantly, we launched Illumina, which is the big differentiator, we get in the market today.
And we continue to be Super focused on the aluminum side.
Happy with the progress and I do believe that the company has its best position it's ever been.
There is something.
That will come along that we're gonna light and execute on.
And I'll say it again, we did not create this woman to be 30, or 40, or 50, or 100 or $200 million in revenue aspirations much much higher than that.
I want to say again happy birthday to a woman.
With a first year in business on a run rate of close to $70 million.
We can all just imagine what you're going to do next.
Thank you everyone now let filter Q&A.
Thank you. Thank you cut piano, just a reminder to our analysts to please use the raise hand function. If you do have a question.
Our first question comes from Arab Linda Canaccord.
Arab Linda you'll be on mute and if you could please turn your video on that'd be great.
Good morning sounds good morning.
My question is congrats on the the traction on Illuminism afar.
A few questions from the town I'm wanting to some small slash I B M global supply chain impact obviously, two active large number of companies in the broadest space could you send a frame that impact for us.
Q3 am going into Q4 is it predominantly focused on the auto sector are you seeing that sort of splattered across a few spaces and maybe just touch on your exposure to those sectors.
Yeah, I think it's.
It's across the board we have one client.
Uhm scaled back span of a million dollars just in Q3 alone.
Not because they're not happy at all because they can of the progress that they have a supply chain issue. An auto has been affected by then a number of other than that and I also believe the number of the ones in the pipelines that are just waiting to have product in order to remember.
As we all know it's a temporary solution situation without ice.
I personally don't know how long is the situation.
I've got a lot, but I imagine it's going to get the result.
Sooner rather than later.
Excellent. Thank you for that and then items instead of a headline issue in the space.
Some delicious.
Oh, I'm, sorry, P, Iowa 15 release.
All the components from private related to to mail privacy protection different levels in the back and one different companies I wanted to hear your thoughts on how you think it's.
Affects the programmatic space with large obviously.
Okay.
I think it's mostly affect the programmatic space when it comes to companies who are doing enough advertising.
And and we do some that's why we don't do a lot of it is very very small part of of what we do so it's not really going into effect acuity in a big way I also with a.
But the thing is something that we can develop in the future do so.
It's also an opportunity for us to go into that as well.
Yeah, clearly we've seen companies war, depending on the.
Most of the using the device that the information that comes from there are are affected by it but I want to say that at the end of the day.
If the advertiser.
But those are not going to be paying for the content, we're going to have an issue so one way or another.
Those are going to have to find a way to pay for the content, even when it comes to to enough advertising and I think it's.
And that's going to happen fairly quickly back it though.
Excellent. Thank you talked last question for me until the queue for tracking I know that the you know the supply chain issues are still a factor, but I'm allergic to in the press release that you're starting to see more.
Traction on the on the pandemic affected sectors to travel the nature.
Retail et cetera, helping to you is that traction it how can it kind of.
Potentially can offset somebody in the head.
Talking about.
Yeah. So first of all our focus is to illuminate illuminate believe we're gonna get great traction huh, we're having great dropdown bored and beyond of course so.
So you have to understand that the focus of the company almost everyone is selling illuminant and the tech team and the product and describe the theme in marketing everybody's doing a little bit right. So that's our focus of it are very happy about where that is going the managed old legacy business. We always knew we're going to start reduce.
Thing is it's it's it's going to be like we're going to make it disappear by the end of next year anyways. Our purpose is really good.
The aluminum side, but doing it in a way that.
The revenue of the room, it is strong enough and bigger than the legacy business before we let that go.
Though so therefore does not gonna be any effects of revenue, yes. That's the travel industry got started to come back we're seeing more revenue coming out of there still not close to where we've seen it before the pandemic, great signs and and as we move forward.
More and more I believe it is gonna come back, we're still going to probably going to have some supply chain issue uhm and cute for.
And.
Generally speaking out with David we're gonna see growth from last year few fourth of this year.
Okay, I don't think it's going to be the growth that we want to see.
But we might surprise, but there's going to be growth.
And they're gonna be major growth on the aluminum side.
And we're really really focusing all our attention on Mega <unk>. The next year. So when's the best thing a lot. So often that we were all about EBITDA and doing everything we're doing with the same expenses.
<unk> well, we're starting now into next year to invest a lot in marketing and sales for more salespeople more marketing.
More support people more.
More and more people on the.
Obviously other products that as well so we can move faster than that we have the luxury to think long term and you think it will get how do we bring that to to take over the world of as a as in like like.
Like we want to and.
And we're making that investment into it so we will probably.
Give up some of the EBITDA numbers that we've seen up to now in order to achieve that Mega growth next year and beyond.
Okay.
Thanks, So much style all the best Thank you.
Thank you Arab Linda.
Our next question comes from Laura Martin at Needham.
Laura you can go ahead, when you're ready.
Yeah.
I saw a couple for me so of yourself service line item. This year I think you said that amendment was $7.4 million out of that 8.2 million in the most recent quarter. My question is in the prior year, you're showing $7.3 million a self service.
Since illumined didn't exist last year I was wondering why like can you remind us what is that <unk> that last year basically went to 600000 this year.
Yeah, that's zero.
When we look at ourselves or revenue was the legacy self serve system that that we have.
And that one is being phased up in in order for a moment to to grow. We also had some time on that system that were related to to the affected the industry. So but in general most of the illumined revenue that we're seeing self sir.
Not R. I think over 60, 67% a completely new new local to the company.
Okay, and then one of the things you can talk to that in the past is you're hoping to convert some of your managed service traveling a guy in of itself service line is that happening.
Well, we're not doing it yet we're we're we're gonna do that next year.
Even when it comes to manage service and on the aluminum side Uhm, it's not exactly completely managed service, it's almost like soccer with a lot of support so we have our team our enterprising supporting in the back and and helping customers achieve what their do so they're pushing a lot of the button for them.
But then within six months or so we are expecting them to move into a into self serve not all of them well they wanna stay and manage.
But but that's the idea next year.
And then C. T V is that a good 220% could you just give us the number that's C. T V achieved in the corner and just sitting and managed service Theirself service the C T.
Both so I don't have the breakdown between the two I would say, it's starting to approach.
Just under 10% at this point, so it's becoming more meaningful number sell out of that Uhm gross profit number 14, you think it's.
Out of the out of the the <unk> the gross revenues yeah. It's.
It's not that with a debit or sorry purple.
Okay.
Okay, great. Thank you so much appreciate it.
Thank you Laura.
Our next question will come from Darrin at Ross.
Darren you can go ahead, when you're ready.
Darren are you on the line here.
I am here can you hear me just forget.
See Ya, but go ahead with a <unk>, okay, I I guess I'm, a black box that's fine anyway. So three questions I call first can you the.
Clients you talked about that grew from one key to three key with those mostly mid market or any of those tier one.
Mostly mid market.
There's.
There's two of them that are peer one but most of them are mid market.
So as a generality are you seeing that trend of customers that have come on in Q1, increasing spend an aggregate to Q3.
Yeah definitely that's why I show. The example of quite a few of them.
But yeah. That's what we're seeing people are liking leather thing and are spending more and more every quarter.
And that's the trend that we expect to continue and also that's one of the reason why or.
Refocusing the sales be more on the mid market size, because we're seeing immediate results there.
Obviously or Oregon still spend.
Time on the enterprise side and work on converting the bigger deal.
Will pay off in the long run, but in the Meanwhile, still want to bring in the makeup room.
Guy that's helpful. And then on the supply chain, you talked about legacy customers, but I'd be remiss not to ask like <unk> is supply chain, having any impact in the sales cycle with some of your bigger loom in clients' maybe some there and e-commerce or you know you talked about a kind of a home goods retailer just kind of curious if.
That's pushing out kinda any kind of revenue potential into 2022.
So I mean auto is a big part of the of the pipeline very serious conversation worry that conversation with a with a big automakers and yet obviously to have supply chain issues and we do believe it's going to push the the decision too.
So next year I think it's it's pretty clear that.
They don't have the product so they're gonna advertise less but when they do they they will come back and and empathize.
Uh-huh.
And then on your Twitter account I noticed yesterday, you had a tweet talking about potential immigration was shopify in the fourth quarter I'm just kind of curious if you could spend more on that.
What were what were.
So we're talking about the small medium sized businesses.
Talk about multiple type of you know one too many types of integration that could be one of them I'm not gonna speak specifically about that one but there's there's a multiple type of these kind of relationships. So if we can create in order to achieve that because selling to the small business is the medium business does.
Not a sales for selling it out it's more like either one too many or e-commerce type of.
A offer is that people come to the size of the wrong and it's obviously very small amount of money per month, but many many of them I'm excited about that the side of the market, but I can say, we don't really have a proper uhm.
Strategy, so that guests because we're working so wheelchair at once we have a better idea.
Great. Thanks, Paul.
Thank you thank you Darren.
Our next question comes from Vince Valentini at T D.
Then she can go ahead when you're ready.
No no.
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Yeah Okay.
Can you hear me now.
Okay.
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Is that better.
Yeah, that's as as the herbicide for you, but let's let's driver.
You know what why don't we come back to Vince will ask our next question in the meantime, so when something to remove you here and we will try you again.
Momentarily.
Our next question comes from Kevin at <unk>.
Hi, Kevin.
Kevin you are on mute.
Hi, There you can you hear me now right yeah.
I'm Gonna leave my my camera off I'm, having some issues with that with the lag in the computer.
I just have a couple of questions just <unk> I don't want to go back to the our supply chain impact that you saw in the corner. He alluded to one client at least had a million in Q3 alone. So you're way to think about what you're eager 11% constant currency and a quarter. Your way to think about what you would have grown you know like <unk>.
<unk> some of these impacts and then number two related to that the supply chain issues. I think started creeping up more towards the end of Q3, and so you know how much more dramatic might be impact be in queue for I I I guess, what I'm trying to get at is that you know your thoughts on break guess S too.
You know.
Where you know what the magnitude of the you know shifted cause I think you know this is off shifting in revenue into future orders, but I'm just trying to get a handle on what the impact might be you know add to quantify them.
It's it's really hard to say what the exact feedback from from a from a designer.
Combination of existing business and business.
It was about the sign and did sign yeah, So it's going into the future revenue.
But I would say I'm sure it was.
Probably a few million dollars for the Q3 and in queue for again, it's hard to suggest at this point.
I think it's better just to kind of say, okay. How things are you going to give you two four they're going fantastic prominent woman standpoint, and they are going good from from an overall revenue standpoint, we're still gonna seagrove, but we would have liked to see much higher growth in queue for and and we do.
Leave the megaphone, what's gonna happen next year.
And on that Mega growth, you know enterprise there'll be a focus he he thanks for the description on the three different buckets I know I'm kind of in my notes here enterprise illumined, having a lot of conversations lots of testing going on there he talked about supply chain also being an issue.
See here, but I think on top of that are you see what we talked about there being a little bit longer of a cycle uhm is there something else that's driving that the lengthening in that cycle or is it is that strictly based on supply chain you know impact.
No I would say that we also learn the process the selling to enterprises, a completely different animal than selling to what we're used to selling on the media side.
When when you fell through enterprise you need different type of all the sales department people, who are used to selling SaaS and.
Selling to dozens of people within an organization in order to get the deal done.
It would take a year to take more than a year to do it and you have to have more integration with internal system and a whole bunch of other things that we're learning throughout the time. So so so all of that and yeah double double sign up without any of that but there's definitely.
Needs to be more expertise from our side when it comes to to do and got this will bring those artistic expertise about that part of what we're investing in as I said before into the order and we will have more of that more of a more of the integration injury girl system.
That they're asking for and at the same time, bringing into quick revenues from the mid market. So all that is.
It is a part of a room with them.
And so you talked about some of that sales cycle lengthening has resulted in a pushing out.
Some of that enterprise selinda in the next year is that are you talking you know.
Coming from going through Q4 into Q1, Q2, or how do we think about where you're seeing add those deals that you thought might've been coming sooner sort of you know landing next year.
I would say that again, it's something new for us in Idaho, I really prefer not to speculate that we will share the information when we have it.
I think some will happen.
Hopefully in the first half of the year, but.
Again, it's gone through the cycle understanding it bring them in sometimes building some components for them today, they would like us to build.
Sometimes doing more testing for a longer period of time, So I think it's.
It's bad enough the speculator that until such time that we bring some of those then and once we do we will cherish we will learn from it will bring more and in the meantime, a huge market on the mid size market that were that were helping customer's get into the game and and they're they're very happy and they're spending more and more reporter.
And we are adding more and more of them a report or two so.
Okay, No I can appreciate it.
Can appreciate that maybe just to switch gears and onto it maybe that the the modem med market self service gross reported was 12% maybe on a constant currency basis closer to 17% I wanted to go back to the the thoughts around a loom and it was my understanding that that those are looming.
Numbers that.
They're not self serve you get some <unk> I mean, there's man. It certainly is it is it not that the the the illumined number is still predominantly a managed service uhm, whereas it or am I not correct. There I E $7 million does that all sound service.
So for the room or not at all self service Blessed I don't have the exact number of a split between them, but you're right. The majority of us build what we call call as hybrid call. It a white glove service and we're helping the the customers.
The button solve it yourself serve as well.
So whether the self serve number reporting as an aggregate of all seltzer illuminant legacy.
Got it so that that's some.
<unk> on a constant basis. That's <unk> you know like I said, 17%, maybe maybe a bit higher than that organic growth how what what's driving that then you're you know bigger bigger deal size more customers coming in board broadening out is that all of the above just I think that was a good number of the quarter.
Yeah, I mean it.
It's all illumined seltzer coming and are spending so the illumined setting ourselves or our naturally higher bed for clients.
And and they're seeing great results.
Okay. Okay. Thanks, I'll I'll I'll pass line.
Thank you Kevin.
Our final question will come from raw golf at echelon.
Rob you can go ahead when you are ready.
Okay. Thank you very much can you hear me <unk> yeah efficacy.
Sorry about that part.
You've talked to the growth of aluminum you've talked to the growth of the C. T V could you perhaps talk should be overlapping Grove I E. What is illumined due to drive the C. T V business as well.
Very good question so.
C. V is is an integral part of the.
Ilmen campaigns in general the majority of the campaigns have a component of the CVV ended now.
There is a big advantage of using CVV upon illumined vs on any other DSP when you're ready.
It usually around a stand alone and you evaluate on its own and it's hard to evaluate is the result of.
When you run up on a loom and you'll have the ability multiple loved that part to run.
To pass one with the television one without the CVV and you'll see the effect of running that type of upper panel.
Paint on C. T V on the lower final the conversion size.
By just comparing those two and looking at the size of those so most advertisers are electing to do CVV complaint as a part of their journey I personally think if you're gonna do a journey, if it's going to be a proper journey with awareness engagement and conversion the awareness piece should be very heavy.
Concentrate on video so part of it is going to be CTV very big bold ones that you can actually evaluate housework.
You can talk within the enterprise that you were in discussions with eight automotive companies help for company.
When you look at the enterprise.
Bucket are these typically like 1 million annual budget sure how shall we look at it in terms of the National Auspex, We're looking at the Fortune 1000.
Okay and.
How would you see the prevalence of million dollar accounts looking ahead, when your CVV enterprise market.
So for me every time, we will convert one of those enterprise to be.
What I call like a proper integration.
For me, it's my number minus days at least 10 million a year.
Revenue so that that's what we're trying to achieve while we're going after those as part of the account.
Millions of dollars accounts, we have many already it says it doesn't have to be an enterprise private client for that and we have some enterprise clients that are over a million dollars. I mean, we have many enterprise and none of that over a million dollars a year.
And if I could when you're sitting on $100 million, all cash and growing every day could you talk to the cadence of acquisitions.
Whether or not you might consider share repurchase as a really attractive tons gizmo, where you share prices in particular.
So the sheriff.
Actually signed to think about it.
Okay and the question is what's more valuable to bring in.
You know more at other organizations into us and developed.
Develop the woman sighed faster add more components to other than more revenue too.
Through this financial models.
Is beautiful and accretive.
And at this point I think it makes more sense to save some money for the for the acquisition.
Because I think we can do so much with it.
And so that's what we're thinking about from an acquisition standpoint will go we're talking to multiple companies almost every week.
I would say evaluation expectations are barely still high but they are coming down.
And we're seeing some companies will we think we can do work with or we can combine with us do a good job.
But you know we're very picky about what we're gonna bring in it has to be something that adds value to illuminate accretive from a financial standpoint.
And and we're gonna stay just a pack on it.
But I believe we are going to eventually it's going to happen.
Thank you and good luck.
Thank you.
Thank you Rob, but thank you Chow Cal It is now 930. So that's all the time, we have allocated for today. So if you'd like to provide any last remarks, we can close up shop here.
Corey Thanks to everyone for joining us today, we really appreciate your support.
Four I know for some of the retail investors there's been some frustrations is.
Stock price used to be higher than went down.
And I want to say that first of all we absolutely do not control the stock price, we have no desire to control the stock price. What we're here is to execute on the business plan.
And I believe the investment of security is not somebody who wants to invest in one quarter of 243 quarters.
Acuity the kind of company that lost their government is going to change the world and over the medium to long run I do believe that there's gonna be a big payback. So I appreciate all the support throughout.
Throughout the years entered a new shareholders.
Of course, big Thank you to the activity family for.
For delivering get another big order.
<unk> so thank you everyone.
Have a great day.
Thanks.