Good morning, everyone. Before we begin the official remarks, I will read the cautionary note regarding forward-looking information. Certain information to be discussed during this call contain forward-looking statements within the meaning of applicable security laws, including, among others, statements concerning the company's 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 is 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 factors identified in our filings with SEDAR and EDGAR 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 Q&A session. I would now like to turn the conference call over to Tal Hayek, the Co-founder and Chief Executive Officer.
Good morning, everyone, and welcome to our Q4/Year-End 2023 investor presentation. My name is Tal Hayek, and I'm the CEO and co-founder of illumin. I'd like to start by thanking the illumin community, thanking the illumin community for delivering a year of transformation. It's not an easy transformation to change the DNA of a company from a managed side of business to self-serve, so I truly, truly thank the, the community for delivering such a successful year of transformation. In 2022, we had virtually no illumin self-serve revenue. We had no long-term contracts and no self-serve pipeline, and look where we are today. In 2023, over $ 20 million in illumin self-serve revenue, most is in long-term contracts and a massive self-serve pipeline. This is where the future of our business is, okay?
The growth numbers are masked by the decline in our managed business, and we always communicated that we feel that the managed business is going to decline. But the value of illumin is illumin self-serve, and we're seeing great, great, great indication for the future. My prediction is that by the end of this year, 2024, our self-serve run rate is going to be higher than managed, and that's, you know, one of the main reasons why I personally bought over $ 1 million worth of shares recently because I believe in this company so much. Let's talk about the search for the new CEO. We are well into the search. We're seeing some amazing candidates and having great conversations. We haven't made any specific decisions yet, but I do think that we're making great progress.
It's a very, very important decision to make, so we don't take that lightly, and we will communicate once we have some news on that. I believe that illumin is making huge steps on the way to a success, again, by seeing the success that we're seeing on the self-serve numbers, the self-serve clients that we're bringing in. We're gonna share more into that. Let's look at revenue. Our total revenue for Q4 of 2023 was $ 37 million. That's down 7.5% from the year before that. Our full year 2023, $ 126 million. That's up 4.4%. When you zoom in and look at where we're growing and where we're losing, we're growing in the right places.
We've seen over 271% growth on our self-serve revenue, which is the most important part of our business. We're seeing decline on managed, but we're seeing more and more revenue coming in out of our self-serve, and we're seeing all the great signs that we're going to be heading that way very, very soon this year. illumin self-serve revenue, particularly, let's start in Q4 of 2022, when we saw $ 2.4 million in revenue, over to Q1 of 2023, $ 2.2 million, Q2, $ 5.4 million, Q3, $ 5.1 million, and Q4, $ 8.9 million. So that's a growth of 75%, quarter-over-quarter from Q4 to Q3, and 271% on an annual basis, year-over-year.
Let's talk about illumin late stage demo. We are tracking that because that's a great indication to see our future revenue. In Q4 of 2022, we've seen 103 demos. Q1 of 2023, 140 demos. Then in Q2, we saw 178 demos, in Q3, 162 demos, and in Q4, 229 demos. Again, a great indication for the future. And new logos, so illumin self-serve logos. Before I share the exact numbers here, I'd just like to let you know that in 2023, we were really focused on bringing in a lot of logos.
It was just the beginning of the way, and we wanted to bring in a lot of logos in, in order to get feedback from clients, make improvements to the system, but also to see which... what type of clients it resonates the most with. And then we're now focusing more and more on the ones that it resonates the most with and seeing the best success. So in Q4 of 2022, we've seen 27 new logos, in Q1 of 2023, 40 new logos, Q2, 51, and then we started going down, in Q3, 33, and in Q4, we saw 33 again. Again, because we're focusing on the right clients for us. Pipeline growth, again, this is specifically for illumin self-serve.... in Q4 of 2022, 114. In Q1 of 2023, 208. In Q2, 245.
Q3, 316, and in Q4, 327. Again, a great indication for future revenue. And my personal favorite, the illumin self-serve run rate, and this is where you take the last month of the quarter, and you multiply it by 12. So that indicates the run rate that we're seeing out of a quarter. I like to speak about the stacking effect that we see even within a quarter, which is you retain your existing clients, and you add revenue from your new clients. In Q1 of 2023, we had $ 12 million. In Q2, $22 million. In Q3, $ 25 million, and in Q4, $ 44 million exit run rate from the quarter. Now, let's go to Elliot to share our financial results.
Thank you, Tal. Welcome, everyone, and thanks for joining today's fourth quarter and year-end 2023 earnings call. As Tal mentioned earlier, for the full year 2023, our total revenue increased to $ 126.3 million, largely attributable to our higher illumin self-service business, which, during the fourth quarter, surged upward by 75% sequentially and 271% compared to prior year. These results are important, but they only tell a part of the story. During 2023, as we continued to roll out our illumin platform, a significant part of our efforts also involved getting a deeper understanding of our customer base. Specifically, we analyzed our sales data to identify which customer segments tend to spend more significantly on our platform, and with this insight, we began redirecting our sales focus towards these valuable customer profiles.
And this allows us to utilize our resources more effectively and efficiently and to focus on larger and more productive client relationships. We are now starting to see the benefits of these actions and anticipate this will start to generate increased sales traction in 2024 and beyond as macroeconomic conditions steadily improve. Alongside this more targeted sales approach, we remain focused on cost management to ensure we are being efficient while prioritizing our ongoing transformation around self-service. Given this larger macroeconomic backdrop, we think this is only prudent and expect this will remain a priority for us throughout 2024. By doing this, we expect we will remain on a path of stronger financial performance and continued innovation. With that, I will now move to a more detailed review of our financial results. In Q4, we had total revenue of $ 37 million compared to four-
Good morning, everyone, and thank you for joining the presentation of illumin's fourth quarter and full year financial and operating results. I would like to begin by reminding our analysts that in order to present your question, you must first click on the "I would like to join the stage" button at the top of your screen. If you would please limit your time to two questions, would be appreciated. Please be patient while we assemble the questions.
Well, good morning, everyone.
Good morning, everyone. Our first question comes from Rob Goff of Echelon Wealth Partners. Rob, please proceed when you are ready.
... Thank you for taking my question.
Hi, Rob. Morning.
Morning.
Tal, you need a mug like Elliot's.
What's that?
You need a mug like Elliot's.
He happens to have one, right there.
If you like, we like-
All you have to do is ask.
All is complete. Could you perhaps talk a bit more about the contract structures that you're putting in place on the self-serve?
Generally speaking, you're talking about 12 to 24 months contracts, and there's different minimums in those contracts. Sometimes, sorry, sometimes we have a 90-day out clause, but it's an out clause, so the customer has to exercise the out clause. You know, so they use it as a proof of concept.
Okay. And with respect to the managed services, could you talk to where you see a baseline or where you see a baseline being reached in terms of timing?
Um, yeah. You have an answer for that?
Sure. So we've obviously always known that managed service is a highly transactional source of revenue for us, so its predictability is substantially lower than our self-serve. It's critical to understand that. That's why we're emphasizing our self-serve illumin, because we believe it's a, it's a much, much more robust and sustainable source of revenue for us, and one that we could see growing. From a managed service perspective, I think we have a fairly stable structure right now in terms of we had some changes that occurred throughout the year, which have, as you can see reflected in our results, have held back and maybe, as Tal said, masked some of the growth that we've seen. We are, by no means deprecating managed service.
We are focusing on maintaining where we have, but our critical focus is to make sure we have the transformation, in place, ongoing, and moving towards the self-serve illumin. The growth we're gonna see in 2024 will come out of this self-serve illumin part of our business.
Very-
Our agenda is to grow, aggressively grow self-serve and maintain, manage.
Thank you. I'll jump back in queue.
Thank you.
Thank you very much, Rob. Our next question, gentlemen, comes from Aravinda Galappatthige of Canaccord Genuity. Aravinda, please go ahead with your question.
Good morning, Tal.
Good morning.
Good morning.
Good to see you. I'll start with, I think where you left off in the prepared remarks. Tal, you talked about sort of an improving outlook, you know, optimism around the backdrop, and I think, Elliot, you referred to that as well. Some of your peers, and I know it's mixed, it's all over the place, but some of the peers that have reported are starting to hint towards, or in some cases even guide towards, pretty strong ad growth on the digital side, in some cases double digits. Can I kind of maybe press you to be a little bit more specific on at least what you're seeing in Q1, given that, we're in March?
Yeah. So as we discussed in the past, we're focusing on our self-serve growth, and we're seeing really, really good growth in Q1 over Q1 of last year, of course. This is where we're seeing the great results. On the other hand, on managed, we're not seeing such great results, so the overall sometimes masks the results that we see on the self-serve.
Okay. Okay, thank you. And then, my second and last, you know, I'd be remiss if I don't sort of revisit the leadership questions. Tal, do you have any kind of timeline as to when you would hope... I know it's not, it's definitely not something you want but when you'd have a CEO in place, and then connected to that, you know, you know, you press released last month that Nadeem had left as well. Is that role gonna be replaced? What are your plans there?
That's, that's the flow we would like to, to do. And the search is ongoing. It's a very important decision, and we don't take it lightly, and we don't have anything to, to share at the moment yet, but hopefully there's gonna be something soon.
... Okay, thank you. I'll pass it to you.
Thank you, Aravinda.
Much. Thank you very much, Aravinda. I appreciate the question. Gentlemen, your next question comes from Daniel Rosenberg of Paradigm Capital. Daniel, please proceed with your question when you are ready.
Good morning, Tal and Elliot. My first question-
Good morning.
Morning. How aggressive you are in terms of selling the managed service clients into illumin. Is there any processes that you put in place to push these clients towards illumin, or are these kind of organic inbound demands?
Yeah, most of our illumin revenue comes from new clients, the vast majority of it. So we're not really pushing, but there's customers who clearly come to us and say, "We're taking it in-house, and you can, you can move us to self-serve or we'll go somewhere else," right? So those are the customers that obviously we take and we put them on the self-serve.
Okay. Where's the prepared remarks, Tal? You hinted at some enterprise larger deals. Can you give a little bit of detail of what that pipeline looks like, the successes you had or challenges in getting larger-
Yeah
-sized deals on to you?
I can say that, I don't think there's enterprise. Depends on the definition of enterprise, I guess, but it's not, I don't think we have any, like Fortune 500 companies, in there at the moment. We did change the comp plan for the field team to start going after bigger accounts. And so we should see that reflected in, in the sales this year.
Okay, appreciate it. I'll pass the line then.
Thank you. Thanks, Daniel.
Thank you very much for the question, Daniel. Much appreciated. As there are no further questions at this time, this will conclude our presentation for this quarter. Thank you to our analysts and shareholders for attending this morning. Please join us the next time as we present our Q1 2024 financial and operating results. Bye for now.
Thank you, everyone.
Thank you.