RE:RE:RE:TTD revenue up only 7.5% sequentially vs. illumin up 42%prophetoffacts wrote: skelterhelter wrote: prophetoffacts wrote: "The Trade Desk revenue up only 7.5% sequentially vs. illumin up 42% sequentially with illumin's new Tier-1 clients up 53%. illumin dramatically outperforming by 460% on a sequential revenue basis and likely much more on a new Tier-1 client basis!"
That's a good one!
The market is now seeing that illumin is a massive head fake. You parsing out Illumin revenue from all of Acuity revenue is mighty optimistic.
It's not optimistic. 42% sequential growth and 53% increase sequentially for tier-1 clients is a fact. Importantly with the launch complete AT is now going to invest in HYPER-GROWTH! It has $100 million on its balance sheet as rocket fuel! The CEO affirmed his highest ambitions for the platform!
skelterhelter wrote: TTD guided higher for Q4 while Acuity came up with excuses. Acuity CEO lives in fantasy land where he has developed a revolutionary product that no one wants to pay for.
AT guided for growth vs. the same quarter last year too and said AT could surprise!
skelterhelter wrote: "If Illumin is so great why are deal sizes not significantly higher? Pointing to tier 1s doing trials means very little if they can't convert them. Those tier 1s are probably all uses with TTD via agencies.. good luck with that!
Look at the growth rate over just TWO quarters! Annualize that! Think next year!
Q1 Q3
$22,000 ---> $152,000 $5,000 ---> $175,000 $98,000 ---> $216,000 $194,000---> $648,000 $49,000 ---> $169,000 And now AT is talking with 8 auto markers! And AT is targeting >$10 million/+ spends in 2022!
"I'd like to share some examples of those mid-market companies. So there was an e-commerce company that started using illumin in Q1 of this year; they spent $22,000. They liked it so much that in Q3 they spent $152,000; a clothing retailer, that spent been only $5,000 in Q1, spend $175,000 in Q3; a large auto manufacturer started with $98,000 and in last quarter spent $216,000 on this; and a healthcare company spent $194,000 in Q1, spend $648,000 in Q3. Purina, which we’re vocal about before spent $49,000 in Q1 and $169,000 in Q3. So as you can see, it's working, they try it, they really like it, they see the ability to control the consumer to have it as a conversation with their consumer and then they see the insights and those learnings they get from it, all of that with a 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.”
I know what are looing at but it's not enough that spend across tier 1s increased. A "real" deal with tier 1s is well into the $millions and overall we are not seeing higher deals being made, only higher spend amond very small base with tier 1s.
The optimistic investor (such as yourself?) looks at this and says the trend is positive and the CEO says they are talking to all these tiers1, automakers etc etc. I have been around the block and when CEOs are talking about talking to companies it means they are buying time, nothing more. It is not much to go on.
The story right now is not just the underperformance of Illumin relative to the market but also questions about leadership and capital markets management.
Leadership has been sleeping at the wheel and with no CFO around and no support for shareholders this stock is not attractive to smart money, period.
CEO made it very clear on the call he has no respect for shareholders (especially retail, which is practically his base!) so now he gets to stew in it.
The thing is he probably doesn't care all that much because he and the others already cashed out big, so why should you?
Class action lawsuits are surely pending.