Core Viewpoint - The Trade Desk is a high-quality company in ad tech, but its investment potential is debated as competitive pressures increase going into 2026 [1] Reasons to Buy - The business remains fundamentally strong with revenue growth in the high teens and customer retention exceeding 95% in 2025, indicating continued advertiser reliance on the platform [3][4] - The growth of connected TV (CTV) and retail media provides long-term tailwinds as advertisers shift budgets to data-driven channels, positioning The Trade Desk to benefit from this structural market growth [4] - The AI-powered platform Kokai is gaining traction, leading to lower acquisition costs and improved engagement, which could provide a competitive advantage if it continues to deliver ROI [5][6] Reasons to Stay Cautious - Competition has intensified with Amazon's advertising business gaining traction, particularly through its partnership with Netflix, which poses risks to The Trade Desk's premium supply access [10][11] - The company's history of flawless execution has been disrupted, with a streak of beating revenue expectations ending in late 2024, leading to increased volatility and investor skepticism [12][13] - The stock carries a premium valuation with a P/E ratio of 46, requiring strong growth and stable margins to justify the price, which is uncertain given the current competitive landscape [16][18]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the US-based Internet and interactive entertainment industry, outlining 10 key themes for 2026 and identifying focus stocks for investment going forward [2][6]. Core Themes for 2026 1. **AI as a Transformative Technology**: AI is expected to significantly impact consumer computing habits, advertising landscapes, and cloud computing revenues. The rise of generative AI and its applications will be crucial [5][7]. 2. **Blurring Lines Between Advertising and Commerce**: The integration of social commerce and retail media is anticipated to create new growth opportunities [5][6]. 3. **Impact of AI on Advertising**: AI's influence on advertising strategies and monetization models will be a key focus area [5][6]. 4. **AI Investment Cycle**: The evolution of capital expenditures (capex) and free cash flow in relation to AI development will be critical for companies [5][6]. 5. **Competitive Dynamics in Local Commerce**: The rise of local commerce initiatives is expected to reshape competitive dynamics in the industry [5][6]. 6. **Future of Mobility Networks**: Developments in autonomous vehicles (AVs) and their adoption will be significant [5][6]. 7. **Evolution of Interactive Entertainment**: Changes in the interactive entertainment landscape will be closely monitored [5][6]. 8. **Transition to Spatial Computing**: A long-term shift from desktop and mobile computing to spatial computing and mixed reality is anticipated [5][6]. 9. **Health and Wellness Market Opportunity**: The growth potential in health and wellness sectors will be explored [5][6]. 10. **Balancing Growth and Investments**: Companies will need to manage growth investments while maintaining margins and capital returns [5][6]. Regulatory Environment - The global regulatory framework is highlighted as a potential factor affecting stock performance, although it is not articulated as a primary theme for 2026 due to a relatively stable regulatory environment observed in recent months [2][6]. Consumer Behavior Insights - The digital consumer remains stable and strong, particularly those valuing convenience in digital services. This stability has led to consistent digital advertising trends, especially in performance-based outcomes [8][9]. Investment Opportunities - **Mega Cap Stocks**: Amazon (AMZN) and Meta (META) are identified as having positive risk/reward profiles due to their alignment with AI themes and operational efficiencies [9][11]. - **Large Cap Stocks**: Dash (DASH), Uber (UBER), and Roblox (RBLX) are noted for their exposure to local commerce and interactive entertainment growth [14]. - **SMID Cap Stocks**: Companies like Peloton (PTON), Opra (OPRA), and Genius Brands (GENI) are highlighted for compelling risk/reward opportunities [14]. Market Sentiment and Valuation - Recent stock price resets have created attractive risk/reward opportunities for investors, despite concerns regarding AI investments and consumer health [8][9]. Conclusion - The report emphasizes the importance of AI and evolving consumer behaviors as central themes for investment strategies in 2026, while also identifying specific companies that are well-positioned to capitalize on these trends [2][5][9].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $110.5 million, representing an 8% year-over-year growth [15] - Contribution ex-TAC was $51 million, up 7% year-over-year, maintaining a healthy 46% margin [15][20] - Adjusted EBITDA increased 63% year-over-year to $12.1 million, reflecting improved operational leverage [14][20] - Non-GAAP net income was $12.5 million, resulting in a non-GAAP diluted earnings per share of $0.28, a 22% year-over-year increase [21] Business Line Data and Key Metrics Changes - CTV revenue grew 75% year-over-year, driven by demand for advanced formats [17] - Retail media revenue increased by 40% year-over-year, reflecting strong momentum in this vertical [18] - Digital out-of-home revenue rose 26% year-over-year, now accounting for 22% of total revenue [18][19] - Web revenue declined by 11% year-over-year due to lower advertiser appetite for standard display and video formats [19] Market Data and Key Metrics Changes - The retail media market in the US is projected to be a $60 billion opportunity, growing at double-digit annual rates [8] - CTV and digital out-of-home channels combined represented 37% of total revenue, up from 28% in the same quarter last year [18] Company Strategy and Development Direction - The company is focused on becoming the platform of choice for modern CMOs, unifying media, data, and outcomes through the Perion One strategy [5][6] - New products like Outmax and Soda are designed to enhance performance-driven advertising and optimize monetization for publishers [4][10] - The company is expanding its share repurchase program to $200 million, reflecting confidence in long-term value [3][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth and profitability, supported by operational efficiency and scalable technology [15][24] - The company aims to capture more market share in 2026 and beyond, with expectations for continued strong performance from core growth engines [27][30] Other Important Information - The company has a strong cash position of $315 million, providing financial flexibility for growth and capital allocation [22] - The share buyback program has repurchased a cumulative total of 10.4 million shares for $94.2 million, underscoring confidence in long-term value [22][23] Q&A Session Summary Question: What are the drivers behind the CTV strength in Q3? - Management noted that performance CTV and the new algorithm, Outmax, are performing well, contributing to significant growth [26] Question: Why is the Q4 guidance range wide? - Management indicated that the quarter is trending in line with expectations and expressed confidence in meeting guidance during the holiday season [27] Question: How does the company view the web business decline? - Management clarified that the web business decline was primarily due to strategic decisions made earlier in the year, and they expect a potential return to growth in the future [38] Question: How is the company using AI internally? - Management stated that AI is increasingly integrated into R&D and operations, aiming to reduce manual work and enhance efficiency [40] Question: What is the potential of Soda and the Digital Out-of-Home Player? - Management explained that these products are designed to be integrated into the tech stack of inventory owners, increasing predictability and visibility into revenue streams [42]

Investor Presentation Q3 2025 November 12, 2025 Forward Looking Statements This presentation contains historical information and forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words "will," "believe," "expect," "intend," "plan," "should," "es ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $85.6 million, representing a 7% year-over-year increase and a 10% quarter-over-quarter increase, exceeding the midpoint of guidance [32] - Contribution XTAC totaled $53 million, up 12% year-over-year and 10% sequentially, reaching the high end of guidance [32] - Adjusted EBITDA for Q3 was $16 million, growing 9% year-over-year and 42% sequentially, with an adjusted EBITDA margin of 30% [38] Business Line Data and Key Metrics Changes - Excluding political ad spend from the prior year, Q3 revenue increased 19% year-over-year, and contribution XTAC increased 22% year-over-year on a pro forma basis [33] - CTV accounted for a record high of 46% of total platform spend, with nearly half running through Direct Access premium publishers [36] - Revenue attached to the Iris ID more than doubled sequentially versus the prior quarter, indicating strong demand for contextually targeted campaigns [15] Market Data and Key Metrics Changes - Spend across emerging digital channels, including CTV, streaming audio, and digital out of home, represented approximately 56% of total platform spend in Q3, up from 50% in 2024 and 43% in 2023 [36] - The majority of leading streaming services have joined the Direct Access program, enhancing the platform's capabilities [12] Company Strategy and Development Direction - The company aims to maintain its dominant position in the mid-market while expanding up-market with major U.S. advertisers and down-market to performance advertisers [23] - The launch of AI Decisioning is expected to enhance the self-service capabilities of the platform, making it more accessible for SMBs and direct-to-consumer e-commerce companies [29] - The partnership with Molson Coors highlights the company's ability to attract major U.S. brands seeking data-driven campaigns [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying performance of the business, with expectations for accelerating growth in 2026 driven by new client onboarding [44] - The company anticipates significant EBITDA margin expansion in 2026, supported by improved operational efficiencies and the integration of recent acquisitions [44] Other Important Information - The company ended Q3 with $161 million in cash and cash equivalents, no debt, and full access to a $75 million credit facility [39] - The share repurchase program has returned $59.6 million to shareholders since its launch, signaling confidence in long-term value [40] Q&A Session Summary Question: What is the difference with the third AI product launching in Q4? - Management indicated that AI Decisioning will complete the Viant AI suite, enabling full self-driving capabilities for ad campaigns, reducing the need for human intervention [51][52] Question: Is the 600 basis point headwind from a merger client a one-time issue? - Management clarified that the headwind is primarily from a seasonal client and will not significantly impact other quarters [48] Question: How does the company plan to grow awareness among SMB advertisers? - The strategy includes channel partnerships and a self-service sign-up flow to attract direct-to-consumer e-commerce companies [58][60] Question: What is the expected incremental spend from the Molson Coors partnership? - While specific figures cannot be disclosed, management expects the partnership to scale over time, contributing to the $250 million incremental spend pipeline [62] Question: How does the competitive environment look with companies like Amazon and Google? - Management noted that competition remains consistent, with Viant's objective buy-side approach differentiating it from competitors who have conflicts of interest [64][66]

Financial Data and Key Metrics Changes - The Trade Desk reported Q3 2025 revenue of $739 million, representing an 18% year-over-year growth, and a 22% growth when excluding political spend from the previous year [40][41] - Adjusted EBITDA for Q3 was approximately $317 million, or about 43% of revenue [40] - Adjusted net income for the quarter was $221 million, or $0.45 per diluted share [42] - Free cash flow was $155 million in Q3, with a strong cash and liquidity position of about $1.4 billion at the end of the quarter [43] Business Line Data and Key Metrics Changes - Connected TV (CTV) remains the largest and fastest-growing channel, representing around 50% of the business in Q3 [40] - Mobile accounted for a low 30% share, display for a low double-digit share, and audio for around 5% [40] - The Trade Desk's focus on retail media is seeing rapid scaling and strong adoption across various verticals [5] Market Data and Key Metrics Changes - North America represented 87% of the business, while international markets accounted for about 13% [41] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [41] - Strong growth was noted in verticals such as medical health, automotive, and technology [41] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [33][57] - Investments in AI and automation are aimed at improving campaign performance and operational productivity [19][58] - The Trade Desk is committed to building a more data-driven culture and enhancing client relationships through joint business plans (JBPs) [15][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the open internet and the shift towards programmatic advertising [30] - The company anticipates continued growth in CTV and audio channels, driven by premium content and authenticated audiences [40][41] - The Trade Desk expects Q4 revenue to be at least $840 million, with an estimated growth of approximately 18.5% year-over-year when excluding political ad spend [44] Other Important Information - The company has repurchased nearly $2 billion in stock since the beginning of its repurchase program, effectively offsetting dilution [43] - The introduction of new products and upgrades, such as Audience Unlimited and trading modes, is expected to drive future growth [28][29] Q&A Session Summary Question: Clarification on Amazon as a competitor - Management clarified that while Amazon is a significant player in advertising, their focus is primarily on owned and operated inventory, which differs from The Trade Desk's emphasis on the open internet [46][49] Question: Areas for impact as new CFO - The new CFO highlighted the importance of disciplined resource allocation and a metrics-driven approach to drive growth and efficiency [52][53] Question: Broader advertising trends for 2026 - Management noted that the open internet is gaining importance, and the company is well-positioned to capitalize on this trend through its restructuring efforts [62]

Financial Data and Key Metrics Changes - Revenue in Q3 was approximately $319 million, reflecting an increase of 42% year-over-year on an as-reported basis, driven primarily by the impact of the acquisition [15] - On a pro forma basis, there was a year-over-year decline of 15% in Q3 [15] - Ex-tech gross profit in the quarter was $131 million, an increase of 119% year-over-year on an as-reported basis [19] - Adjusted EBITDA for Q3 was $19 million, with adjusted free cash flow being a use of cash of $24 million in the quarter [20][21] Business Line Data and Key Metrics Changes - Connected TV (CTV) revenue grew around 40% in Q3 and is projected to reach $100 million for the year [18] - The CTV business focuses on three key pillars: on-screen placements, proprietary formats, and cross-screen activations [9] - Cross-sell revenue showed notable inflection, with October revenue and bookings growing by more than 55% month-over-month [11] Market Data and Key Metrics Changes - The U.S., U.K., and France, which represent about 50% of revenue, are driving headwinds for the legacy Teads business [16] - The DACH region is noted as neutral or growing, contrasting with the declines in the key markets [16] - Page views on premium publishers declined by 10% to 15%, attributed to increased adoption of AI summaries and volatility in programmatic supply [39] Company Strategy and Development Direction - The company is focusing on three main dimensions: portfolio optimization, operational efficiency, and cost optimization [6][7] - The growth strategy centers on connected TV, deepening relationships with agencies, expanding performance campaigns, and algorithmic advancements [14] - A detailed three-year outlook and roadmap will be shared at an upcoming Investor Day in March [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in integration and operational changes taking longer than anticipated, but remains confident in the long-term vision [14] - The company is committed to generating positive cash flow and improving its cost structure [21] - Visibility remains challenged due to shorter planning cycles from advertisers, impacting guidance for Q4 [22] Other Important Information - The company welcomed Molly Spielman as the new Chief Commercial Officer, bringing extensive experience from Criteo and Oracle Advertising [8] - The company recognized $4 million of acquisition and integration-related costs and $1 million of restructuring charges in the quarter [19] Q&A Session Summary Question: Can you unpack the headwinds in the quarter? - Management noted a combination of factors including distractions from the merger and execution challenges taking longer than expected, with some weakness in key geographies [23][24] Question: What is your willingness to protect free cash flow? - The company is committed to generating positive free cash flow and has a transformational plan to focus on key areas [28] Question: Can you provide insights on the loss of several big clients? - The loss was attributed to changes in client business models and the company's strategic decisions around quality, impacting the DSP business [34][36] Question: What are the expectations for free cash flow going forward? - The company expects to be around break-even for the year, with a focus on cash flow optimization and improvements in EBITDA [42][43] Question: What are the assumptions for Q4 guidance? - Guidance reflects caution due to visibility challenges and expected impacts from headwinds in the DSP business [45][46]

Financial Data and Key Metrics Changes - Q3 2025 total revenue was $179 million, an increase of 11% from Q3 2024 [19] - Contribution ex TAC was $167 million, up 12%, exceeding guidance [19] - Adjusted EBITDA grew 13% to $57 million, resulting in a margin of 34% [21][19] - Net income for the quarter was $20 million, compared to $5 million in Q3 2024 [21] - GAAP earnings per diluted share were $0.13, up from $0.04 in Q3 2024 [21] Business Line Data and Key Metrics Changes - CTV contribution ex TAC was $76 million, up 18% year-over-year or 25% excluding political [19][21] - DV+ contribution ex TAC was $91 million, an increase of 7% or 10% excluding political [20][21] - The contribution ex TAC mix for Q3 was 45% CTV, 39% mobile, and 16% desktop [20] Market Data and Key Metrics Changes - Health and fitness, shopping, and technology were the strongest-performing categories, while automotive was one of the weakest [20] - Ad spend from top holding companies grew nearly 20% in Q3 year-over-year [9] Company Strategy and Development Direction - The company is focusing on expanding its CTV business and enhancing its technology offerings, including AI integration [8][15] - Plans to integrate AI assistance and workflows into Clear Line, powered by the acquisition of Streamer.ai [8][15] - The company is optimistic about growth opportunities with major partners like Netflix and Roku [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from the Google Ad Tech trial, indicating that any market share shift could significantly benefit the company [17][18] - The company anticipates contribution ex TAC growth for 2026 to be at least 11%, with a focus on maintaining margin expansion [27][39] Other Important Information - The company has a cash balance of $482 million at the end of Q3, up from $426 million at the end of Q2 [22] - Capital expenditures for Q4 are expected to be approximately $23 million, with a full-year estimate of $80 million [23][26] Q&A Session Summary Question: Impact of The Trade Desk's changes on Magnite - Management noted that they have worked with major buyers to reconnect Magnite as a preferred supply path and believe the impact has been limited to DV+ [30] Question: Growth of DV+ with Amazon - Management confirmed strong spend from leading DSPs, particularly Amazon, and highlighted the importance of partnerships in driving growth [33] Question: AI integration and its impact - Management discussed the integration of AI technologies and the potential for increased efficiency and monetization through new products [15][36] Question: Google Ad Tech case updates - Management remains optimistic about the outcomes of the case and believes it presents a generational opportunity for the company [39] Question: CTV market dynamics and CPM trends - Management indicated stability in CTV CPMs and does not foresee significant downward pressure on revenues from lower-cost ad units [42] Question: CapEx and employee growth - Management explained that the increase in CapEx is aimed at securing data center space and enhancing technology capabilities, while also planning to add personnel to support growth initiatives [44]

Summary of Verve (M8G) 2025 Earnings Call Company Overview - **Company**: Verve (formerly known as Gamigo) - **Industry**: Advertising Technology - **Focus**: Digital advertising, particularly in mobile and connected TV channels Key Points and Arguments Market Dynamics - The advertising market is diverse and complex, with a total spend of $1.1 trillion globally per year, and $1,200 spent per person annually in the U.S. [9][12] - Digital advertising accounts for $600 billion of the total, with mobile being the largest segment, contributing 96% of Verve's revenues [10][12]. - Emerging channels such as mobile, connected TV, and digital out-of-home are the focus areas for growth, as traditional channels are declining [7][8]. Business Model and Strategy - Verve operates a tech platform that connects advertisers with publishers, utilizing a supply-side platform (SSP) and demand-side platform (DSP) for ad placements [16][21]. - The company aims to unify its technology platforms to enhance efficiency and scalability, having integrated multiple SSPs and DSPs into a single platform [41][86]. - Privacy regulations, particularly GDPR, are reshaping the advertising landscape, leading to a focus on ID-less targeting solutions [25][78]. Financial Performance - In Q2, Verve reported a 10% revenue growth, with a 1% increase in adjusted EBITDA, reaching a margin of 28% [39][108]. - The company faced challenges due to platform unification issues, which impacted revenue from the SSP side, leading to a 3% decline in that segment [108]. - Demand-side activities grew by 82%, indicating strong performance in that area despite overall challenges [108]. Customer and Market Position - The U.S. market accounts for 79% of Verve's revenues, with a strong position in mobile advertising [12][34]. - The company has a high customer retention rate of 98%, indicating strong satisfaction among clients [39][57]. - Verve aims to expand its sales team from 35 to 150 sellers in the U.S. to better address the market [50][93]. Future Outlook - The company maintains a mid-term guidance of 25% to 30% revenue CAGR and aims for over €1 billion in revenues and €330 million in EBITDA in the future [101][102]. - Verve plans to expand into new markets, including the U.K., Scandinavia, Brazil, and Mexico, while continuing to focus on organic growth [94][96]. Additional Important Insights - The advertising market is experiencing a shift towards programmatic advertising, which is growing faster than traditional methods [56][59]. - Verve is investing in AI-powered programmatic optimization to enhance ad targeting and efficiency [80][82]. - The company is also focusing on verticalization by industry, tailoring its services to specific sectors such as digital brands and fast-moving consumer goods [66][69]. This summary encapsulates the key points from the Verve earnings call, highlighting the company's strategic focus, market dynamics, financial performance, and future growth plans.

Q2 2025 Financial Performance - The company's Q2 2025 revenue reached $103 million[39] - Adjusted EBITDA was $7.1 million with a 7% margin[39] - Contribution ex-TAC margin was 46%[39] - Non-GAAP net income was $12 million, resulting in a diluted non-GAAP EPS of $0.26[39] - Cash flow from operations amounted to $21.3 million[39] Growth & Channel Performance - DOOH revenue increased by 35% year-over-year[36, 54], reaching $17.6 million[54] - Retail Media revenue increased by 27% year-over-year[36, 46] - Web revenue increased by 5% year-over-year[22, 54], reaching $53.1 million[54] - CTV revenue decreased by 5% year-over-year[36, 43], reaching $9.7 million[54] - Search revenue decreased by 35% year-over-year[54], reaching $22.4 million[54] Strategic Initiatives & Outlook - The company reiterates its FY2025 revenue guidance of $430 million to $450 million[37, 81] - The company expects an Adjusted EBITDA margin of 10% and an Adjusted EBITDA/Contribution ex-TAC margin of 22% for FY2025[81]