RE:RE:RE:RE:ILLUMIN: Feature vs ProductI listened and you're right about him not being clear and likely did not correct her because he wanted to avoid the issue altogether as much as possible. He never split illumin revenue specifically across self serve and managed services but definitely implied that most of the self serve revenue is illumin and didn't bother correcting her assumption. This is not the way! Any other straight forward CEO would have clarified. It's even worse because it just shows you that they are assigning illumin revenue "where needed" to not show massive gaps not where it actually is. What does self serve even mean in this context? Not much, it seems.
The reality is, the fact that illumin is indeed a "white glove service" tells you that it's not ready for prime time as a self serve platform and simply does not scale. For AT to get higher multiples again, they will need to show not only that illumin can grow AT LEAST at the industry CAGR of around 30% but can also scale. Problem is, few on the street believes anything Tal and the team says anymore. Ask around for yourself.
In addition, they are relying on the hustle of their sales team and likely beefing up with more people and more spending on clients etc. This can win you revenue at a higher cost but is not an efficient way to grow at scale.
They're only real play is to hope to win the jackpot on M&A and buy up some revenue on the cheap and gut the costs out. Maye they'll get lucky. This whole board seems to live on hopium so par for the course.
Have a great day.
Torontojay wrote:
truthis0utther3 wrote: This is FALSE
Illumin revenue IN TOTAL is reported under self serve DESPITE the fact that it is ANYTHING BUT self serve.
My statement is accurate.
I guess you didn't listen to the Q3 conference call?
Key points.
Start watching at 39:55 and pay attention at 40:22. Also, at 37:30 Tal Hayek mentions that Q4 will exceed last years Q4 in total revenue and that they might surprise but does not promise it.
https://m.youtube.com/watch?v=gNUTCovIZqw