Group 1: Life in Taiwan - Taiwan is characterized as a highly convenient place to live, with a mix of commercial and residential areas that enhance accessibility [7][8] - The food culture in Taiwan is highlighted, particularly the popularity of night markets and the convenience of food delivery services like Uber Eats [10][11] - Despite its rich culture and proximity to natural beauty, Taiwan is described as having an unattractive urban landscape, with many dilapidated buildings [9] Group 2: Ads and AI - The discussion emphasizes the importance of advertising as an efficient monetization strategy, contrasting it with skepticism prevalent in the tech industry [22][23] - The effectiveness of ads is noted, particularly in how they can enhance consumer experiences by introducing products that users may not have been aware of [30][31] - The conversation critiques the current ad models in AI applications, suggesting that they should focus on user profiling rather than context-based targeting to avoid user suspicion [35][36] Group 3: Meta's Platform Dynamics - Meta's struggle with its identity as a platform versus an advertising company is discussed, indicating that its focus on being a platform has hindered its advertising potential [51][58] - The conversation points out that Meta's success is largely due to its feed and targeted advertising, which has proven to be effective in engaging users [53][56] - The need for Meta to embrace its role as an entertainment company rather than solely a social media platform is emphasized, suggesting that this shift could improve its long-term viability [58][60] Group 4: TikTok and ByteDance - The complexities surrounding TikTok's ownership and the control of its algorithm by ByteDance are highlighted, indicating that the U.S. political process has failed to address this critical issue [66][68] - The discussion reflects on the implications of having a major information source controlled by a geopolitical adversary, raising concerns about national security and information integrity [67][68] - The conversation concludes that the outcome of the TikTok situation has resulted in a failure to secure control over the algorithm, which is seen as a significant oversight [68][70] Group 5: Agentic Commerce - The potential for AI to transform e-commerce through agentic commerce is explored, suggesting that AI could streamline the purchasing process and enhance user experience [90][91] - The conversation outlines a multi-level approach to improving e-commerce, starting with better user interfaces and progressing to personalized recommendations based on user preferences [92][93] - The discussion acknowledges the existing power of advertising in driving consumer behavior, suggesting that AI could further enhance this by anticipating user needs [96][97]

Core Viewpoint - Criteo is pivoting towards "Agentic Commerce" and AI decisioning, focusing on enhancing consumer engagement through advanced recommendation services and conversational shopping experiences, despite facing growth challenges in 2026 due to retail media client scope reductions [1][2][5][19]. Financial Performance - Criteo reported record revenue of $1.9 billion for 2025, with a 35% adjusted EBITDA margin and $211 million in free cash flow [4][17]. - For Q4 2025, revenue was $541 million, with a contribution ex-TAC of $330 million, reflecting a $25 million headwind from retail media client changes [10][19]. - Performance media revenue for 2025 was $1.7 billion, with a contribution ex-TAC of $915 million, up 4% at constant currency [9][17]. Strategic Initiatives - The company is developing an "Agentic Commerce recommendation service" aimed at enhancing product discovery and purchasing through AI-driven solutions [1][5]. - Criteo's "Go" self-service suite is gaining traction, with campaigns showing over 20% higher return on ad spend compared to traditional methods [3][13]. - The company is testing conversational shopping experiences and embedding agentic capabilities into its marketing solutions, indicating strong client interest [6][7]. Market Outlook - For 2026, Criteo expects contribution ex-TAC to be flat to up 2% at constant currency, with underlying growth anticipated in the high single digits, excluding the impact of retail media client scope reductions [19][20]. - The company guided for Q1 2026 contribution ex-TAC of $245 million to $250 million, down 9% to 11% at constant currency, due to ongoing challenges in specific retail sectors [21]. Partnerships and Collaborations - Criteo has established partnerships with major retailers and platforms, including Google SA360 and Mirakl, enhancing its retail media capabilities [15][16]. - The company is actively pursuing additional testing with large language model partners to further develop its recommendation service [5][6]. Capital Management - Criteo ended December 2025 with $891 million in total liquidity and no long-term debt, indicating a strong financial position [22]. - The company repurchased 5.4 million shares for $152 million in 2025, with an increased share buyback authorization of up to $200 million [22]. Corporate Developments - Criteo is progressing with plans for redomiciliation to Luxembourg and a direct NASDAQ listing, expected to complete in Q3 2026, with a potential further move to the U.S. in early 2027 [23].

Financial Data and Key Metrics Changes - In 2025, Gross Merchandise Volume (GMV) increased by 29%, reaching $378 billion, while revenue grew by 30% to over $11.5 billion, accelerating from 2024's growth of 26% [9][38] - Q4 marked the first quarter with revenue exceeding $3 billion, surpassing total revenue for the entire year of 2020 [10] - Free cash flow for 2025 exceeded $2 billion, achieving a free cash flow margin of 17% [45][46] Business Line Data and Key Metrics Changes - Revenue from Merchant Solutions grew by 35%, driven by strong GMV and increased penetration of Shopify Payments, with $84 billion of GMV processed on Shopify Payments in Q4, a 38% increase year-over-year [39] - Subscription Solutions revenue increased by 17%, with Monthly Recurring Revenue (MRR) growing by 15% year-over-year [40] - Offline channel revenue grew by 27% to $748 million, while B2B GMV surged by 84% in Q4 and 96% for the year [11][12] Market Data and Key Metrics Changes - North America saw a revenue increase of 28%, now powering over 14% of the U.S. e-commerce market [10] - International revenue grew by 36% year-over-year, with nearly half of the merchant base located outside North America [11] - European merchants experienced a Q4 GMV increase of 45% or 35% in constant currency [37] Company Strategy and Development Direction - The company aims to leverage AI to enhance commerce, with a focus on creating a new normal in shopping experiences [5][16] - The Universal Commerce Protocol (UCP) was co-developed with Google to standardize AI shopping experiences [7][18] - The strategy includes expanding into offline retail and enhancing the Shop App for better consumer discovery [20][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges faced by merchants in 2025, including tariffs and geopolitical issues, and emphasized the company's role in helping them adapt [32] - The outlook for Q1 2026 anticipates revenue growth in the low 30s year-over-year, driven by robust growth in payments and international expansion [47] - Management expressed confidence in the long-term value of the business, supported by a strong balance sheet and a share repurchase program of up to $2 billion [46] Other Important Information - The company reported a gross profit growth of 25% in Q4, with operating expenses improving to 29% of revenue [41][42] - The company has been focusing on building products that are global from day one, with Shopify Payments now available in 60 new countries [25] Q&A Session Summary Question: Changes in Shopify's ability to monetize transactions through AI surfaces - Management clarified that transactions through AI surfaces will still utilize Shopify's checkout, ensuring consistent monetization for merchants [51][52] Question: Key milestones for agentic commerce adoption - Management noted that orders from AI searches have increased by 15x since January 2025, indicating strong early adoption [58][59] Question: Economics and competitive dynamics of agentic commerce - Management reiterated that the economics for merchants remain the same regardless of the sales channel, emphasizing the importance of maintaining a reliable backend for transactions [64][66]

Financial Data and Key Metrics Changes - In 2025, Gross Merchandise Volume (GMV) increased by 29%, reaching $378 billion, while revenue grew by 30% to $11.5 billion, accelerating from 2024's growth of 26% [9][38] - Q4 marked the first quarter with revenue exceeding $3 billion, surpassing total revenue for the entire year of 2020 [10] - Free cash flow for 2025 exceeded $2 billion, achieving a free cash flow margin of 17% [45][46] Business Line Data and Key Metrics Changes - Revenue from Merchant Solutions grew by 35%, driven by strong GMV and increased penetration of Shopify Payments, with $84 billion of GMV processed on Shopify Payments in Q4 [39] - Subscription Solutions revenue increased by 17%, with Monthly Recurring Revenue (MRR) growing by 15% year-over-year [40] - Offline channel revenue grew by 27% to $748 million, while B2B GMV surged by 84% in Q4 and 96% for the year [11][12] Market Data and Key Metrics Changes - North America saw a revenue increase of 28%, now powering over 14% of the U.S. e-commerce market [10] - International revenue grew by 36% year-over-year, with nearly half of the merchant base located outside North America [11] - European merchants experienced a 45% increase in Q4 GMV, indicating strong growth in that region [37] Company Strategy and Development Direction - The company aims to leverage AI to enhance commerce experiences, focusing on creating a new normal in the AI shopping era [5][6] - The Universal Commerce Protocol (UCP) was co-developed with Google to standardize AI shopping experiences, allowing merchants to sell on major AI platforms [7][19] - The strategy includes expanding global reach, with Shopify Payments now available in 60 new countries and the introduction of cryptocurrency options [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges faced by merchants in 2025, including tariffs and geopolitical changes, and emphasized the company's role in helping them adapt [32] - The outlook for Q1 2026 anticipates revenue growth in the low 30s year-over-year, driven by robust growth in payments and continued international expansion [47] - Management expressed confidence in the long-term value of the business, supported by a strong balance sheet and a share repurchase program of up to $2 billion [46] Other Important Information - The company reported a gross profit growth of 25% in Q4, with operating expenses improving to 29% of revenue [41][42] - The company has achieved 10 consecutive quarters of double-digit free cash flow margin, reflecting strong operational efficiency [46] Q&A Session Summary Question: Changes in Shopify's ability to monetize transactions through AI surfaces - Management clarified that transactions through AI surfaces will still utilize Shopify's checkout, ensuring consistent monetization for merchants [51][52] Question: Key milestones for agentic commerce adoption - Management noted that orders from AI searches have increased by 15x since January 2025, indicating early adoption and the potential for significant growth [59][60] Question: Economics and competitive dynamics of agentic commerce - Management reiterated that the economics for merchants remain the same regardless of the sales surface, emphasizing the importance of maintaining a reliable backend for transactions [64][66]

Financial Data and Key Metrics Changes - In 2025, GMV increased by 29%, reaching $378 billion, while revenue grew by 30% to $11.5 billion, accelerating from 2024's growth of 26% [9] - Q4 marked the first-ever quarter with revenue exceeding $3 billion, surpassing total revenue for the entire year of 2020 [10] - Free cash flow for 2025 exceeded $2 billion, achieving a free cash flow margin of 17% [46] Business Line Data and Key Metrics Changes - Revenue from Merchant Solutions grew by 35%, driven by strong GMV and increased penetration of Shopify Payments, with $84 billion of GMV processed on Shopify Payments in Q4 [39] - Subscription Solutions revenue increased by 17%, supported by a larger percentage of subscriptions from higher-priced plans [39] - Offline channel revenue grew by 27% to $748 million, while B2B GMV surged by 84% in Q4 and 96% for the year [11][37] Market Data and Key Metrics Changes - North America saw a revenue increase of 28%, now powering over 14% of the U.S. e-commerce market [10] - International revenue grew by 36% year-over-year, with nearly half of the merchant base located outside North America [11] - European merchants achieved a Q4 GMV growth of 45%, or 35% in constant currency [36] Company Strategy and Development Direction - The company aims to leverage AI to enhance commerce experiences, focusing on selling everywhere and operating smarter [13][27] - The Universal Commerce Protocol (UCP) was co-developed with Google to standardize AI shopping experiences [18] - The strategy includes expanding into offline retail and enhancing the Shop App for better consumer discovery [20][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges faced by merchants in 2025, including tariffs and geopolitical changes, and emphasized the company's role in helping them adapt [32] - The outlook for Q1 2026 anticipates revenue growth in the low 30s year-over-year, driven by robust growth in payments and international expansion [48] - Management expressed confidence in the long-term value of the business, supported by a strong balance sheet and a share repurchase program of up to $2 billion [47] Other Important Information - The company reported a gross profit growth of 25% in Q4, with a gross margin of 36.8% for Merchant Solutions [41] - Operating expenses for Q4 were $1 billion, or 29% of revenue, reflecting a 3-point improvement over 2024 levels [42] - The company has been investing in AI tools to enhance merchant operations, with the Sidekick AI assistant generating significant automations and task lists [28][29] Q&A Session Summary Question: Changes in Shopify's ability to monetize transactions through AI surfaces - Management clarified that transactions through AI surfaces will still utilize Shopify's checkout, ensuring consistent monetization for merchants [54][56] Question: Key milestones for accelerating adoption of agentic commerce - Management highlighted the importance of building products that become the standard across agentic applications, emphasizing the need for continuous improvement and merchant engagement [63] Question: Economics and competitive dynamics of agentic commerce - Management reiterated that the economics for Shopify merchants remain the same regardless of the sales channel, with a focus on ensuring a seamless experience across all platforms [66][68]

Financial Data and Key Metrics Changes - Revenue for 2025 was $1.9 billion, with contribution ex-TAC growing 3.5% at constant currency to $1.2 billion, benefiting from a $14 million tailwind from foreign currencies [22][23] - Adjusted EBITDA margin was 35%, supported by operational leverage and strong cash flow generation, with free cash flow of $211 million, up 16% year-over-year [23][28] - Adjusted diluted EPS increased to $4.62 in 2025, reflecting strong financial performance [23] Business Line Data and Key Metrics Changes - In performance media, revenue was $1.7 billion, with contribution ex-TAC at $915 million, up 4% at constant currency; Commerce Growth solution grew 5% while ad tech services declined 3% [22] - Retail media revenue reached $264 million, with contribution ex-TAC at $260 million, up 2% year-over-year at constant currency; excluding two clients with scope changes, retail media contribution ex-TAC grew 16% [22][24] Market Data and Key Metrics Changes - Travel was the fastest-growing vertical in performance media, with growth accelerating to 37%, while department stores and fashion saw declines of 13% and 12% respectively [24] - Media spend growth accelerated in EMEA, while trends were softer in the U.S. and Asia Pacific [24] Company Strategy and Development Direction - The company is focusing on commerce intelligence and AI decisioning to simplify operations and scale as a commerce AI platform [5][8] - Priorities include leading in Agentic Commerce, scaling the AI-powered performance engine, and reinforcing retail media leadership [8][9] - The company aims to optimize performance at scale through proprietary commerce intelligence and AI decisioning [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's potential beyond current low growth expectations for 2026, emphasizing the importance of Agentic Commerce [8][21] - The company anticipates a flat to 2% growth in contribution ex-TAC for 2026, with underlying growth expected to be in the high single digits excluding client scope reductions [29][30] Other Important Information - The board increased the share buyback authorization to up to $200 million, reflecting confidence in the business's value [21][29] - The company is progressing with a redomiciliation to Luxembourg and plans for a further redomiciliation to the U.S. to enhance access to capital markets [34][35] Q&A Session Questions and Answers Question: Can you discuss the prospects for the AI recommendation service? - Management highlighted the importance of high-quality product recommendations for platforms to compete for daily active users, emphasizing the need for access to commerce data [39][40] Question: Is the weakness in department stores related to the Saks Global bankruptcy? - Management noted that department stores and fashion are experiencing headwinds, with specific declines in those sectors, but did not comment on specific clients [43] Question: How do you expect retail media growth to progress throughout the year? - Management indicated that growth will be front-loaded, with Q1 and Q2 more impacted by client scope changes, but confidence remains in the overall performance of retail media [46][49] Question: What is the pricing model for the new AI initiatives? - The monetization opportunities vary, with a take rate model for retail and potential fee structures for LLM integrations as they develop [72]

Financial Data and Key Metrics Changes - Revenue for 2025 was $1.9 billion, with contribution ex-TAC growing 3.5% at constant currency to $1.2 billion, benefiting from a $14 million tailwind from foreign currencies [20][21] - Adjusted EBITDA margin was 35%, supported by operational leverage and productivity improvements, with free cash flow of $211 million, up 16% year-over-year [21][24] - Adjusted net income reached $253 million, with adjusted diluted EPS increasing to $4.62 in 2025 [21] Business Line Data and Key Metrics Changes - Performance media revenue was $1.7 billion, with contribution ex-TAC at $915 million, up 4% at constant currency; Commerce Growth solution grew 5% while ad tech services declined 3% [20] - Retail media revenue was $264 million, with contribution ex-TAC at $260 million, up 2% year-over-year at constant currency; excluding two clients with scope changes, retail media contribution ex-TAC grew 16% [20][21] Market Data and Key Metrics Changes - Travel was the fastest-growing vertical in performance media, with growth accelerating to 37%, while department stores and fashion saw declines of 13% and 12% respectively [22] - Media spend growth accelerated in EMEA, while trends were softer in the U.S. and Asia Pacific [22] Company Strategy and Development Direction - The company is focusing on commerce intelligence and AI decisioning to simplify operations and scale as a commerce AI platform [4][6] - Priorities include leading in Agentic Commerce, scaling the AI-powered performance engine, and reinforcing retail media leadership [6][11] - The company aims to optimize performance at scale through proprietary commerce intelligence and AI decisioning [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's potential beyond current low growth expectations for 2026, emphasizing the importance of Agentic Commerce [6][19] - The company anticipates a flat to 2% growth in contribution ex-TAC for 2026, with underlying growth expected to be in the high single digits excluding client scope reductions [26][28] Other Important Information - The board increased the share buyback authorization to up to $200 million, reflecting confidence in the business's value [19][25] - The company is progressing with a redomiciliation to Luxembourg, with plans for a further redomiciliation to the U.S. in early 2027 [30][31] Q&A Session Questions and Answers Question: Can you elaborate on the AI recommendation service and its prospects? - Management highlighted the importance of high-quality product recommendations for platforms to compete for users, emphasizing the need for access to commerce data for effective recommendations [34][36] Question: What is the impact of department store weakness? - Management noted that department stores and fashion are experiencing headwinds, with specific declines observed, but did not comment on individual clients [35][39] Question: How will retail media growth progress throughout the year? - Management indicated that growth will be front-loaded, with Q1 and Q2 more impacted by client scope changes, but expects a ramp-up in the second half of the year [42][46] Question: What is the incremental opportunity in CommerceGo with the self-serve offering? - Management explained that the self-service rollout will expand the addressable market among small and medium-sized businesses, enhancing cross-channel full-funnel strategies [44][48] Question: How are retailers adopting internal LLM agentic tools? - Management noted that retailers are aggressively investing in AI-enabled tools to maintain customer journey control, with several pilots underway [53][56]

Defining the next era of commerce Q4 2025 Advisories This presentation contains forward-looking statements and forward looking information (collectively, "forward-looking statements") that are based on our management's current estimates, beliefs and assumptions and management's perception of historic trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements may be identified by words such as "expect," "ena ...

Q4 & Full Year 2025 Earnings Investor Presentation February 11, 2026 Michael Komasinski Chief Executive Officer Safe Harbor Statement This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management's beliefs and assumptions and on information currently available to them. All statements other than present and historical facts and conditions ...

Core Insights - Criteo reported a decrease in revenue for Q4 2025 by 2% year-over-year, with a total revenue of $541 million, while the fiscal year 2025 revenue increased by 1% to $1.9 billion [1][2] - The company experienced a significant drop in net income for Q4 2025, down 36% to $46 million, but a 30% increase in net income for the full year to $149 million [1][2] - Criteo's cash flow from operating activities increased by 21% to $311 million in 2025, and free cash flow rose by 16% to $211 million, indicating strong operational performance [1][2] Financial Highlights - Q4 2025 revenue was $541 million, gross profit was $297 million, and contribution ex-TAC was $330 million, reflecting a decrease of 2%, 1%, and 1% respectively year-over-year [1][2] - For the fiscal year 2025, revenue was $1.9 billion, gross profit was $1.0 billion, and contribution ex-TAC was $1.2 billion, with increases of 1%, 7%, and 5% respectively [1][2] - Adjusted EBITDA for Q4 2025 was $120 million, down 17% year-over-year, while for the full year it was $407 million, up 4% [2][3] Operating Performance - Criteo's media spend reached $4.3 billion in 2025, growing 3% year-over-year, with Q4 media spend at $1.4 billion, up 6% [1][2] - The company launched new tools such as the Audience Agent and Insights Agent to enhance audience planning and data-driven decision-making [1] - Retail Media contribution ex-TAC grew by 2% year-over-year in 2025 but decreased by 18% in Q4 2025 due to scope changes with specific clients [1][2] Share Repurchase and Financial Position - Criteo deployed $152 million for share repurchases in 2025 and increased its remaining share buyback authorization to $200 million [1][3] - As of December 31, 2025, the company had $389 million in cash and marketable securities, reflecting an increase of $56 million compared to the previous year [2][3] - The total financial liquidity position was approximately $891 million, including cash, marketable securities, and credit facilities [2] Future Outlook - For fiscal year 2026, Criteo expects an adjusted EBITDA margin of approximately 32% to 34% of contribution ex-TAC, with contribution ex-TAC growth projected to be flat to +2% at constant currency [2][3] - The first quarter of 2026 is anticipated to represent the low point of the year, with adjusted EBITDA guidance between $50 million and $55 million [2][3]