MILAN — Moncler Group posted a resilient performance in the first nine months of the year, buoyed by sales in China and the Americas. For the period ended Sept. 30, the group’s sales fell 1 percent year-on-year to 1.84 billion euros. And for the third quarter, sales dipped a better-than-expected 1 percent year-on-year at constant exchange to 615.6 million, which was higher than consensus estimates provided by the company of 603.8 million euros. The slower tourism traffic in Europe and Japan and declining c ...

Financial Data and Key Metrics Changes - In Q4 2024, revenue was approximately $235 million, reflecting a decrease of 5% year-over-year [29] - Ex TAC gross profit was $68.3 million, an increase of 7% year-over-year, continuing a trend of acceleration [31] - Adjusted EBITDA grew 21% year-over-year to $17 million, indicating consecutive margin improvement [33] Business Line Data and Key Metrics Changes - The Outbrain DSP saw a 45% growth in advertiser spend in 2024, driven by superior performance [11] - Revenue from supply beyond the traditional feed represented approximately 30% of revenue in Q4 2024, up from 26% in Q4 2023 [12] - The AI-based Creative Automation suite was utilized by over 70% of the customer base, enhancing targeted creatives [16] Market Data and Key Metrics Changes - Total ad spend was materially flat year-over-year during Q4, but increased on a full-year basis [29] - Net revenue retention of publishers was 86%, reflecting downward pressure on ad impressions from a key supply partner [30] - CTV presence is becoming a core part of the performance marketing mix, with significant growth opportunities identified [21] Company Strategy and Development Direction - The merger with Teads aims to combine branding and performance capabilities, enhancing omnichannel outcomes [7] - The company plans to leverage AI to create a seamless consumer journey across various platforms [17] - Focus on expanding partnerships with premium media owners and enhancing inventory diversity is a key strategic pillar [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of Teads and the potential for significant synergies, estimating an annual impact of $65 million to $75 million on adjusted EBITDA [36] - The company anticipates a return to overall pro forma growth by the second half of 2025, driven by improved performance and synergy realization [76] - Management noted that the early momentum post-merger is encouraging, with strong enthusiasm from the combined team [26] Other Important Information - The company will operate under the Teads brand moving forward, with plans for a name and ticker change [100] - Free cash flow for Q4 was approximately $38 million, contributing to a total of $51 million for the year [34] - The company ended the quarter with $166 million in cash and no debt, positioning it well for future investments [34] Q&A Session Summary Question: Transition of publishers and advertisers onto the combined platform - Management is focused on unifying teams and cross-selling, with a clear roadmap for integration [46] Question: Demand for native advertising - Management sees continued growth in performance advertising and is optimistic about the future of native advertising [48] Question: Drivers of growth in Outbrain DSP - The Outbrain DSP has broadened its bidding capabilities, leading to significant growth in performance advertising [55] Question: Progress of revenue outside traditional feed - Management believes that revenue from outside the traditional feed will continue to grow, supporting overall growth [62] Question: Factors affecting full-year EBITDA guidance - Management expects synergy realization to ramp up over the course of 2025, with a focus on integration [76]