Core Insights - Moncler Group demonstrated resilience in the first nine months of the year, with sales supported by strong performance in China and the Americas, despite a 1 percent year-on-year decline to 1.84 billion euros [1][3] - The third quarter saw a better-than-expected sales dip of 1 percent year-on-year at constant exchange, reaching 615.6 million euros, surpassing the company's consensus estimate of 603.8 million euros [1] Sales Performance - Moncler brand sales for the nine-month period fell 1 percent to 1.55 billion euros, while Stone Island sales also declined by 1 percent to 288.1 million euros [3] - In Asia, revenues remained flat at 752.6 million euros, accounting for 48.5 percent of total sales, with China outperforming the region while Japan and South Korea showed weaker performance [7] Fourth Quarter Outlook - The company reported positive trading in the fourth quarter so far, with October starting well and positive results across different regions [5] - Direct-to-consumer sales for Stone Island posted double-digit growth of 11 percent at constant exchange in the third quarter [5] Expansion and Campaigns - Moncler expanded its store network by adding seven new stores and plans to open a flagship store on Fifth Avenue in New York City by June [6] - The "Warmer Together" campaign features prominent figures like Al Pacino and Robert De Niro, enhancing brand visibility [7] Regional Insights - China's performance remains strong, with local consumption and revenues from Chinese clusters performing well, particularly during the Golden Week, which aligned with last year's results despite global macroeconomic challenges [8]

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]