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Q: My question is around the sales and branding investment that you spoke to in your prepared remarks. Could you unpack what you're thinking about in terms of branding strategy? Is it product specific, company-wide, or new segment targeted? A: In Q3 and Q4, we evolved our tactical marketing to generate customer interest in illumin self-service, moving towards more success-oriented messaging. We aim to set our customers up to appear as heroes with their bosses and customers. Our brand strategy is essential this year, driven by data and customer response. We want to be better known and more accurately known for the value we bring to customers. We will continue to evolve our marketing tactics and layer in brand positioning in Q2 and Q3.

Q: Could you talk about your success with selling direct to customers and through agencies? Are you seeing more momentum with one versus the other? A: We are actively changing our tactics and see patterns within customers responding to our revised marketing and product. Both agencies and brands are looking for transformative results, converting some of their spend from competitive DSPs to illumin. We attract both agencies and brands equally, with some looking for a second option beyond the big titans. illumin self-service allows them to take more control, supported by our managed services.

Q: Can I ask about your social platform, your social media access, how that is working as either part of a bundled strategy or as a stand-alone access service? A: It's still in the early stages, but we see good performance on social media channels integrated into self-service. We are starting to see more customers using illumin self-service across multiple channels. In 2025, we will focus on growing tactical marketing and awareness, providing upsell opportunities to existing customers, and adding more value.

Q: You mentioned foreign exchange as a benefit to profit. What was the impact on revenue? Also, you seem to be warning about weaker seasonality and trade war disruption in Q1. Could you clarify? A: The fluctuation in exchange rates was a benefit, particularly in Q4, contributing about $2.5 million to our bottom line. Regarding Q1, it started slower due to market adjustments and macroeconomic uncertainty, causing delays in marketing budget approvals. However, deal velocity picked up in the second half of Q1, and we are currently tracking ahead of Q1 fiscal year '24.

Q: You have an enviable cash balance sheet. What are your plans to deploy your cash? A: We are focused on demonstrating core growth through key investments in product, marketing, and sales in 2025. We remain opportunistic and may consider acquisitions that align with our self-service product, but our primary focus is on adding value through our existing services.

Q: Are you looking at M&A as a means of growth? A: Our primary growth focus is improving sales, marketing, and product stickiness. We may consider M&A opportunities that allow us to acquire customer segments or territories that complement our self-service product, but our core focus remains on organic growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.