Industry Overview - The digital advertising market is expected to grow at a compound annual growth rate (CAGR) of 15.4% from 2025 to 2030, driven by mobile penetration, social media proliferation, and programmatic advertising expansion [2] - Video advertising is projected to remain the dominant format as brands increasingly leverage visual storytelling [2] The Trade Desk (TTD) - TTD reported revenues of $616 million in Q1 2025, a 25% year-over-year increase, exceeding management's guidance of at least $575 million [4] - Adjusted EBITDA for TTD was $208 million, reflecting a 34% margin compared to $162 million and a 33% margin in the previous year [4] - Customer retention rate was over 95% for the reported quarter [4] - TTD's net cash from operating activities was $291.4 million, with free cash flow at $230 million [5] - Adjusted earnings per share increased by 27% year-over-year to 33 cents [5] - The Kokai platform is utilized by two-thirds of clients, achieving lower cost per conversion by 24% and lower cost per acquisition by 20% [5] - TTD's revenue is heavily reliant on North America, with 88% of revenues coming from this region, limiting international market expansion [7] - Total operating costs surged by 21.4% year-over-year to $561.6 million, which may impact profitability if revenue growth does not keep pace [8] Criteo (CRTO) - Criteo's AI-driven Performance Media business and capabilities in Retail Media are strong growth drivers [9] - The Commerce Media Platform includes both demand-side and supply-side solutions, allowing Criteo to capture value across the ad tech value chain [9] - Criteo's media spend was $4.3 billion over the last 12 months, with $919 million in Q1 2025 [10] - Retail Media on-platform revenues grew by 17% year-over-year, supported by partnerships with 70% of the top 30 U.S. retailers [10] - Criteo onboarded 300 new brands in Q1, bringing the total to over 3,800 for Retail Media [11] - The company launched a new AI-powered automation toolset, Commerce GO!, designed to streamline campaign launches [12] - Criteo differentiates itself by offering direct retailer access and a transparent platform built around first-party data [13] Share Performance and Valuation - Year-to-date, CRTO has declined by 33.6%, while TTD has seen a decline of 37.1% amid macroeconomic uncertainties [14] - Valuation metrics indicate TTD is overvalued with a Value Score of F, while CRTO has a Value Score of A [16] - TTD's forward 12-month price/earnings ratio is 38.32X, significantly higher than CRTO's 5.97X [17] Analyst Estimates - Analysts have revised CRTO's earnings estimates downward for the current quarter, indicating a trend of negative revisions [18] - TTD has experienced relatively lower downward revisions in earnings estimates compared to CRTO [20] Investment Recommendation - Criteo is positioned as the stronger investment option due to its better valuation, focus on partnerships, and expanding retail media presence [22]

Financial Performance - The company reported strong financial performance in Q4, beating expectations on both revenue and operating income, with revenue of $189 million, up 10% year-over-year [28][29] - Operating income was $23 million, reflecting a 43% increase, and operating margin expanded by three points to 12% [28][11] - For FY 2025, the company achieved 13% revenue growth, marking the third consecutive year of hitting the 10% to 15% growth target [6][7] - Free cash flow reached a record $153 million, a 51% year-over-year increase, demonstrating improved working capital management [11][37] Business Line Performance - Subscription revenue grew by 9% to $145 million, while marketplace and other revenue increased by 14% to $44 million [29][33] - The company added 13,100 subscription customers during the year, with significant growth in the $1 million plus customer cohort [7][9] - The reduction in contraction rate contributed to revenue growth, achieving the lowest level of dollar churn and downsell ever [10] Market Performance - The data marketplace, which accounted for 77% of marketplace revenue, grew by 13%, reflecting continued strength in U.S. digital ad spending [33] - The company did not detect any change in customer behavior due to macroeconomic conditions in Q4 or April [33] Strategic Direction and Industry Competition - The company aims to achieve the "Rule of 40" by FY 2028, targeting 10% to 15% revenue growth and 25% to 30% operating margin [12][25] - Key initiatives include enhancing the data collaboration network and launching cross media intelligence solutions to improve advertising measurement [14][18] - The company is focused on expanding its clean room solutions, which have shown to significantly increase annual recurring revenue (ARR) for customers [23][89] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about FY 2026, highlighting strong demand signals and a robust sales pipeline despite macroeconomic uncertainties [32][39] - The company anticipates revenue for FY 2026 to be between $787 million and $817 million, reflecting growth of 6% to 10% [39] - Management noted that the macro environment is a key swing factor in revenue guidance, with a stable economy assumed for the high end of the range [39][41] Other Important Information - The company successfully renewed 20 multimillion-dollar annual contract value (ACV) contracts, with over half being multi-year contracts [9][100] - The balance sheet remains strong with zero debt and cash and short-term investments totaling $421 million [37] Q&A Session Summary Question: Customer reaction to cross media intelligence - Management expressed optimism about the cross media intelligence solution, noting strong early feedback and increased customer conversations [52][54] Question: Key factors impacting revenue guidance - Management indicated that the macro environment is the primary swing factor between the low and high ends of the revenue guidance range [57][59] Question: New customer acquisition strategies - Management highlighted that the decline in customer count was primarily due to smaller customers, while the million-dollar plus customer count continued to grow [66][68] Question: Impact of Google’s cookie announcement - Management stated that the announcement was largely a non-event for customers, as the industry has been moving away from cookies for years [71][72] Question: Sales pipeline and customer hesitation - Management noted some customer hesitation in Q4 but reported that many deals that slipped have already closed in early Q1 [76][78] Question: Clean room adoption and customer segmentation - Management indicated that clean room adoption is primarily a function of time and execution, with larger companies leading the way [86][88] Question: Net retention rate outlook - Management expects net retention to stabilize between 100% and 105% in the near term, with potential for improvement as new strategies are executed [93][94]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $89.3 million, exceeding initial expectations due to strong performance in CTV and digital out of home channels [17][18] - Adjusted EBITDA for Q1 2025 was $1.8 million, also higher than expectations, reflecting operational control and margin discipline [18][20] - Net loss on a GAAP basis was $8.3 million, compared to a net income of $11.8 million in Q1 2024 [21] - Non-GAAP net income was $5.4 million, down from $22.6 million in Q1 2024 [21] Business Line Data and Key Metrics Changes - Digital out of home revenue increased by 80% year over year, now representing 19% of total revenue, up from 6% last year [19] - CTV revenue grew by 31% year over year, accounting for 12% of total revenue compared to 5% last year [19] - Retail media vertical grew by 33% year over year, outperforming the broader market [16] - Web revenue declined by 28% year over year, now representing 46% of total revenue, down from 37% in the same quarter last year [19] Market Data and Key Metrics Changes - The company reported a strong performance in its core growth channels, with digital out of home and CTV continuing to outperform the market [16][19] - The acquisition of GreenBids is expected to significantly enhance the company's total addressable market and performance capabilities [24][25] Company Strategy and Development Direction - The company is focused on building Perion One as an outcome-driven platform for modern digital advertising, integrating AI-powered optimization and creative insights [6][9] - The acquisition of GreenBids is seen as a strategic move to enhance technology and expand into lower funnel performance opportunities [24][25] - The company is committed to investing in customers, technology, and people to drive long-term value [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy pipeline for the rest of 2025, contributing to the raised guidance [31][35] - The company anticipates stabilization in web revenue starting next quarter, with expectations for continued growth in core channels [19][22] - The guidance for full year 2025 has been raised, reflecting improved outlook and stronger market position [26] Other Important Information - The company has a strong cash position of nearly $360 million, providing flexibility for growth and capital allocation [18][23] - The board approved an expansion of the share repurchase program to $125 million, reinforcing long-term confidence in the company's value [23] Q&A Session Summary Question: Guidance and Display Revenue Stabilization - Management raised guidance based on strong Q1 performance and healthy pipeline, expecting web revenue to stabilize [31][32] Question: Impact of GreenBids on Revenue - GreenBids is expected to contribute positively, with synergies already being realized, but full impact will be seen in 2026 [39][40] Question: Timeline for GreenBids Technology Integration - Integration of GreenBids technology into Perion One is immediate, with expected acceleration in customer acquisition over the next few quarters [44][45] Question: Familiarity and Excitement of CMOs with PerionOne - Positive responses from CMOs regarding the unified offering and custom algorithms, indicating strong market demand [51][52] Question: Strategy for Expanding Total Addressable Market (TAM) - The acquisition of GreenBids opens new capabilities in walled gardens, aligning with market shifts towards performance-based campaigns [58][61]

Financial Data and Key Metrics Changes - Revenue in Q1 was approximately $286 million, reflecting a 32% year-over-year increase, primarily driven by the acquisition of Teads [19][20] - X TAC gross profit for the quarter was $103.1 million, an increase of 98% year-over-year, indicating that profit growth is outpacing revenue growth [21][22] - Adjusted EBITDA for Q1 was $10.7 million, representing a greater than 7x increase year-over-year [23] Business Line Data and Key Metrics Changes - The company closed Q1 with over 50 Joint Business Partnerships (JBPs), including new commitments with major brands like Ferrero and Philip Morris International [11] - CTV revenue grew over 100% year-over-year, now representing approximately 5% of total ad spend [14] Market Data and Key Metrics Changes - The U.S. business, which represents around 30% of total revenue, showed improvement in trends during Q1 [20] - The company has access to over 300 million TV screens globally, with significant partnerships enhancing its CTV offerings [14] Company Strategy and Development Direction - The vision for the new Teads is to create an open Internet advertising platform that connects fragmented channels to drive measurable business outcomes [6][9] - The company is focused on integration, efficiency, and execution post-merger, aiming for $60 million in annualized cost savings by 2026 [15][23] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in demand levels and positive trends in the legacy Teads business since the merger [29][44] - The company expects to see continued growth in the second half of the year, driven by cross-selling opportunities and improved performance metrics [70][73] Other Important Information - The company recognized $16 million in acquisition-related costs and $7 million in restructuring charges during the quarter [22] - Free cash flow was a use of cash of approximately $7 million, impacted by acquisition-related costs [24] Q&A Session Summary Question: Can you expand on the macro environment and advertiser focus between brand and performance? - Management observed improvements in demand levels and noted that advertisers are scrutinizing their budgets more closely, which is seen as a positive for the company [29][31] Question: How much of the JVP wins are a result of the new combination versus existing pipeline? - Management indicated that the growth in JVPs is a combination of the merger's value proposition and existing relationships, with significant excitement around the combined capabilities [36][38] Question: Can you discuss the trends in the legacy Teads business? - Management highlighted that the legacy Teads business has shown month-over-month improvement since the merger, with a focus on execution and restructuring contributing to this growth [44] Question: What is the strategy for expanding the Moments vertical video product? - The company views vertical video as a significant growth opportunity and plans to invest in expanding this product across new publishers [64] Question: How does the Google lawsuit ruling impact the company? - Management believes the ruling could provide a headwind to SSPs, potentially benefiting the company due to its exclusive supply relationships [62] Question: What are the near-term opportunities for the CTV business? - The company sees significant potential in performance CTV, leveraging its unique capabilities and partnerships to capture market share [76]

Financial Performance - Criteo's Q1 2025 Contribution ex-TAC reached $264 million, a 7% year-over-year increase[18] - The adjusted EBITDA margin was 35%, exceeding the company's guidance[18] - Revenue was $451 million[33] - Net income was $40 million[33] - Non-GAAP Diluted EPS was $1.10, a 38% increase[33] - Free cash flow was $45 million, a 367% increase[33] Segment Performance - Retail Media media spend increased by 21% year-over-year, reaching $335 million[21, 36] - Retail Media Contribution ex-TAC increased by 18% year-over-year, reaching $59 million[36] - Performance Media Contribution ex-TAC increased by 4% year-over-year, reaching $206 million[19, 36] Retail Media Leadership - Criteo partners with over 200 retailers, including 70% of the top 30 U S retailers and 50% of the top 30 EMEA retailers[21]

Financial Data and Key Metrics Changes - Revenue in Q4 2024 increased 14% to $153 million, with a 40% adjusted EBITDA margin [6][37] - Full year 2024 revenue grew 12% to $530.1 million, achieving a 36% adjusted EBITDA margin [6][38] - Adjusted EBITDA for Q4 increased 29% to $61.4 million, with a margin increase from 35% to 40% year-over-year [44][49] - Net income for Q4 was $15.3 million or $0.09 per share, compared to $10.2 million or $0.06 per share in Q4 2023 [45][49] Business Line Data and Key Metrics Changes - Optimization revenue grew 11% to $70.6 million in Q4 [39] - Measurement revenue increased 12% to $59.1 million, with social media revenue growth at 25% [40] - Publisher revenue rose 30% to $23.4 million, driven by new product adoption and increased political spend [41] - International revenue grew 13% to $49 million, representing 32% of total revenue [42] Market Data and Key Metrics Changes - 32% of Q4 revenue came from markets outside of the Americas, with 45% of measurement revenue from international sources [17][42] - The US CTV market is projected to exceed $47 billion by 2028, indicating significant growth potential [15] Company Strategy and Development Direction - The company aims for continued double-digit growth in 2025, focusing on performance, reach expansion, and innovation [7][27] - Plans to expand into China and enhance operations in key APAC markets, unlocking significant digital ad spend opportunities [18][69] - The introduction of new capabilities in measurement and optimization products is expected to drive future growth [7][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive impact from political spending on the publisher side, while advertiser spending improved in retail and CPG sectors [104] - The shift towards real-time bidding in CTV is viewed as a tailwind for the business, with strong growth in publisher performance [105][106] - The company expects to deliver double-digit profitable growth in 2025, supported by ongoing investments in differentiated products [33][50] Other Important Information - The appointment of Jill Puttman as interim CFO was announced, bringing extensive finance experience to the role [34][83] - The company reduced long-term debt by $30 million to $35 million during the quarter [46] Q&A Session Summary Question: Impact of political spending and CTV shift - Political spending had limited impact on advertiser business but benefited the publisher side, with strong growth in retail and CPG [104] - The shift to real-time bidding in CTV is seen as beneficial, with a 30% year-over-year growth in the segment [105][106] Question: Pricing dynamics and measurement growth - The company experienced competitive pricing dynamics during RFPs, with strong adoption of total media quality (TMQ) across social platforms [110][111] - The pre-bid product on Meta has shown a 71% reduction in wasted ad spend, indicating strong early adoption [115] Question: Long-term visibility with pre-bid and post-bid products - The focus on performance and linking media quality signals with cost data enhances revenue forecasting and visibility [124][125] - The company is seeing strong adoption of pre-bid products, which is expected to improve overall business visibility [124] Question: Growth outlook by segment - Total advertiser revenue is expected to have double-digit growth, with measurement anticipated to see single-digit growth initially [128]