FY 2025 Revenue
▲ +49.8%
$11.74M
Grew from $7.83M baseline despite spending $4.21M less in total media.
From Overextended Ad Spend to $11.74M in Revenue at 4.07x ROAS
Executive Summary
When Modiva took over the client's ad accounts, the business was burning cash—deploying over $7M annually at a breakeven 1.10x ROAS with negative net margins. By restructuring the paid media mix, aggressively cutting non-converting spend, and concentrating the budget into proven, high-margin tutoring products, Modiva flipped the business from negative margin burn into an eight-figure growth engine: expanding revenue to $11.74M while cutting ad spend by -59.3% and lifting blended ROAS to 4.07x.
Blended ROAS
▲ +270%
4.07x
Scaled from 1.10x pre-onboarding, with peak efficiency reaching 8.53x.
Media Spend Reduction
▼ -59.3%
-$4.21M
Annual ad expenditure slashed from $7.09M down to $2.88M, eradicating waste.
Net Financial
▲ +$8.82M
+$4.61M
Net revenue expansion alongside $4.21M in preserved capital directly to bottom line.
— STRATEGIC TURNAROUND
The Discipline of Profitable Concentration
Most failing ad programs suffer from the same fundamental flaw: mistaking top-line vanity clicks for profitable business growth. Here is how we dismantled the cash burn and built an enduring acquisition system.
The Challenge: Pre-Onboarding Cash Burn
Prior to Modiva's takeover in Q2 2024, the client had spent over $5.5M in H1 2024 alone at a disastrous 0.79x to 1.07x ROAS. Ad spend was splintered across dozens of low-ticket, low-retention offers that cost more to acquire than their customer lifetime value (LTV). Agency account managers had bid on broad, unqualified keywords and unsegmented Meta audiences, consuming enormous budgets without contributing to net margin.
0.79x
Q1 2024 Pre-Onboard ROAS
$2.98M
Q1 2024 Spend on Unprofitable Offers
-$616K
Estimated Ad-to-Revenue Deficit in Q1 2024
PILLAR 01
Concentrate on Proven Offers
Rather than promoting the entire course catalog, we rigorously audited student retention and lifetime value. We concentrated 85%+ of capital behind high-LTV tutoring packages with demonstrated market demand and strong margins.
- Identified top 20% tutoring products driving 80% of retained revenue
- Restructured landing pages with outcome-oriented proof and pricing
- Aligned sales intake directly to high-intent parent inquiries
PILLAR 02
Eliminate Inefficient Spend
We executed an aggressive pruning of non-converting Google Search queries, display placements, and loose Meta broad-match tests. In Q3 2024, spend dropped from $2.64M down to $466K—and profit surged immediately.
- Purged over 1,400 negative keyword leaks in Google Ad accounts
- Halted zero-ROAS experimental campaigns consuming $400K+/quarter
- Stabilized quarterly ROAS from 1.07x in Q2 to 3.92x in Q3 2024
PILLAR 03
Controlled Profitable Scaling
Once waste was removed and unit economics normalized, we fed verified enrollment and margin signals back into Google and Meta algorithms. This produced explosive scale up to an 8.53x peak efficiency.
- Integrated offline deal values into Smart Bidding conversion tracking
- Scaled Q2 & Q3 2025 revenue beyond $3.7M–$3.9M/quarter profitably
- Achieved full-year 2025 blended ROAS of 4.07x across $11.74M revenue
— PERFORMANCE LEDGER
Quarter-by-Quarter Financial Breakdown
Transparent, audited quarterly financials documenting the progression from baseline overspend to disciplined scale.
Scroll horizontally for full metrics
Table 1
Baseline Year • Breakeven 1.10x ROAS with $7.09M Ad Spend
Pre-Onboarding (FY 2023)
| Quarter | Revenue | Deals Closed | Google Spend | Meta Spend | Other Spend | Total Spend | Blended ROAS |
|---|---|---|---|---|---|---|---|
| Q1 2023 | $1,721,950.01 | 204 | $1,333,533.56 | $0.00 | $4,455.00 | $1,337,988.56 | 1.29x |
| Q2 2023 | $2,231,676.00 | 246 | $1,873,386.14 | $3,613.01 | $0.00 | $1,876,999.15 | 1.19x |
| Q3 2023 | $2,432,810.50 | 278 | $1,842,237.74 | $34,894.66 | $5.26 | $1,877,137.66 | 1.30x |
| Q4 2023 | $1,448,563.20 | 196 | $1,921,632.13 | $80,120.07 | $11.23 | $2,001,763.43 | ▼ 0.72x |
| FY 2023 Total | $7,834,999.71 | 924 | $6,970,789.57 | $118,627.74 | $4,471.49 | $7,093,888.80 | 1.10x |
Table 2
Modiva Onboarding • Spend Cut by -$850K while Increasing ROAS to
1.26x
Year 1 • Turnaround (FY 2024)
| Quarter | Revenue | Deals Closed | Google Spend | Meta Spend | Other Spend | Total Spend | Blended ROAS |
|---|---|---|---|---|---|---|---|
| Q1 2024 Pre-Modiva | $2,368,612.35 | 388 | $2,629,975.06 | $352,768.98 | $2,009.31 | $2,984,753.35 | ▼ 0.79x |
| Q2 2024 Onboarding | $2,834,172.49 | 483 | $2,217,731.90 | $396,471.09 | $27,975.39 | $2,642,178.38 | ▼ 1.07x |
| Q3 2024 Optimization | $1,828,674.47 | 332 | $224,810.95 | $233,398.47 | $8,763.46 | $466,972.88 | ▲ 3.92x |
| Q4 2024 Discipline | $855,634.68 | 159 | $141,196.98 | $7,801.88 | $0.00 | $148,998.86 | ▲ 5.74x |
| FY 2024 Total | $7,887,093.99 | 1,362 | $5,213,714.89 | $990,440.42 | $38,748.16 | $6,242,903.47 | ▲ 1.26x |
Table 3
Scaling Engine • $11.74M Revenue at 4.07x Blended
ROAS
Year 2 • Scaled Efficiency (FY 2025)
| Quarter | Revenue | Deals Closed | Google Spend | Meta Spend | Other Spend | Total Spend | Blended ROAS |
|---|---|---|---|---|---|---|---|
| Q1 2025 Peak ROAS | $1,299,266.65 | 232 | $149,304.50 | $3,086.66 | $0.00 | $152,391.16 | ▲ 8.53x |
| Q2 2025 | $3,716,075.76 | 516 | $649,975.22 | $69,540.27 | $0.00 | $719,515.49 | ▲ 5.16x |
| Q3 2025 | $3,972,350.63 | 196 | $867,365.78 | $127,925.66 | $0.00 | $995,291.44 | ▲ 3.99x |
| Q4 2025 | $2,751,345.46 | 405 | $874,554.23 | $142,179.91 | $0.00 | $1,016,734.14 | ▲ 2.71x |
| FY 2025 Total | $11,739,038.50 | 1,349 | $2,541,199.73 | $342,732.50 | $0.00 | $2,883,932.23 | ▲ 4.07x |
Table 4
Annual Transformation Summary • +49.8% Revenue with
-59.3% Ad Spend
Multi-Year Comparison (FY 2023 – FY 2025)
| Fiscal Year | Annual Revenue | Deals Closed | Google Spend | Meta Spend | Total Ad Spend | Blended ROAS | Annual Net Profit Delta |
|---|---|---|---|---|---|---|---|
| FY 2023 (Pre-Onboard) | $7,834,999.71 | 924 | $6,970,789.57 | $118,627.74 | $7,093,888.80 | 1.10x | Baseline ($741K gross ad margin) |
| FY 2024 (Turnaround) | $7,887,093.99 | 1,362 | $5,213,714.89 | $990,440.42 | $6,242,903.47 | 1.26x | +$903K gross ad margin (+121%) |
| FY 2025 (Scaled Efficiency) | $11,739,038.50 | 1,349 | $2,541,199.73 | $342,732.50 | $2,883,932.23 | ▲ 4.07x | +$8.11M gross ad margin (+994%) |
| 2-Year Transformation | ▲ +$3,904,038.79 (+49.8%) | ▲ +425 Deals | Paid Media Restructure | ▼ -$4,209,956.57 (-59.3%) | ▲ +270% | 10x Ad Margin Expansion | |
— TAKE CONTROL OF YOUR UNIT ECONOMICS
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