Financial Data and Key Metrics Changes - The company reported Q2 2025 consolidated revenue of $44.7 million, reflecting a 19% decline compared to Q1 2025 [6] - Media margin for Q2 was $11.9 million, a decrease of 13% from Q1 2025 [6] - Adjusted EBITDA was negative $2.8 million, showing a 300k improvement from Q1 2025 [6][19] Business Line Data and Key Metrics Changes - Commerce Media Solutions revenue grew 121% year-over-year to $16.1 million, now representing 36% of total consolidated revenue, up from 12% in Q2 2024 [15][11] - Owned and operated revenue decreased approximately 49% in the quarter, primarily due to strategic shifts [17] - Commerce Media margin was $3.2 million or 20% of Commerce Media Solutions revenue, down from 30.4% in Q2 2024 [17] Market Data and Key Metrics Changes - The company anticipates that Commerce Media Solutions will become the majority of revenue by 2026 [7] - The commerce media market is projected to grow over $100 billion in the next five years, expected to account for 25% of all digital media spend by 2026 [11] Company Strategy and Development Direction - The company is shifting its focus towards Commerce Media Solutions, which is seen as a transformational pivot and a competitive advantage in a growing market [9][10] - The strategic pivot is supported by a recent equity financing of over $10 million to bolster the balance sheet and fuel growth [10][20] - The company aims to achieve positive adjusted EBITDA by Q4 2025 and for the full year 2026 [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of Commerce Media Solutions, expecting continued triple-digit growth [14] - The company is optimistic about the partnerships being established, which are expected to drive long-term dividends [12] - Management acknowledged the challenges faced in the owned and operated segment due to regulatory headwinds and pricing volatility [7][25] Other Important Information - The company ended Q2 2025 with $4.9 million in cash and cash equivalents, alongside $2.4 million in restricted cash [19] - Total net long-term debt was $19.9 million as of June 30, 2025, down from $31.9 million at the end of 2024 [20] Q&A Session Summary Question: What drove the declines in the owned and operated segment? - Management attributed the decline to the FTC settlement, which restricted media buying capabilities and increased pricing volatility on biddable platforms [23][25] Question: How is the partnership with Revise progressing? - The partnership is still in early stages but is showing good momentum with onboarding merchant partners [26][28] Question: What are the dynamics affecting margin pressures in Commerce Media? - Management indicated that margin pressures are due to early-stage solutions, competitive pricing strategies, and lower margins in new partnerships [32][34] Question: Can you discuss new placements beyond post transactions? - The company is exploring loyalty plays and post-event monetization opportunities, which are still in early development [41][42] Question: How does first-party data differentiate the company from competitors? - First-party data allows for better consumer targeting and monetization, driving better results for partners and enhancing revenue sharing [47][51]

Fluent (FLNT) FY Conference Summary Company Overview - Fluent is a digital advertising company focused on customer acquisition for major brands [2][4] - The company has pivoted towards a new digital marketing channel called Commerce Media, which has rapidly grown from $0 to $50 billion in less than four years and is expected to double again [5][13] Key Financial Metrics - Fluent achieved a $65 million annual run rate in its Commerce Media business and expects to double this in 2025 and again in 2026 [6][19] - The company has historically grown its legacy business at a compounded average growth rate of over 12% for the first 12 years [4] - The transition to Commerce Media is anticipated to return Fluent to double-digit revenue growth with improving margins and profitability [6][19] Strategic Pivot - The strategic pivot from legacy business to Commerce Media is driven by the need for higher growth and higher margins [34][36] - Fluent's first-party data asset is a key competitive advantage, allowing for better consumer targeting and ad relevance [26][49] - The company has integrated its technology into partner websites, enabling a performance-based revenue model with no upfront costs [15][16] Market Dynamics - The Commerce Media market is projected to grow from $50 billion to $100 billion by 2027 [13] - Fluent's business model allows for a revenue share split, typically $60 to the media partner and $40 to Fluent [10][45] - The company is positioned to benefit from tailwinds in digital advertising, particularly in the context of privacy and data compliance [14][18] Partnerships and Growth Opportunities - Fluent has launched a strategic partnership with Rebuy, a top Shopify app, which opens access to 12,000 merchants and enhances market penetration [22][23][42] - The company is exploring opportunities in additional verticals such as travel, finance, and entertainment beyond its current focus on retail, ticketing, grocery, and restaurants [21][22] Case Studies and Performance Metrics - A case study with a large sports retailer showed a 35% increase in revenue per consumer compared to competitors, highlighting the effectiveness of Fluent's data-driven approach [31] - Another case study with a gaming company demonstrated a 650% quarter-over-quarter growth in new users, indicating the scalability of Fluent's solutions [33] Conclusion - Fluent is undergoing a significant transformation towards a higher growth, higher margin business model through its Commerce Media solutions, leveraging its first-party data and technology integration to drive better results for advertisers and partners [39][40]

At this point, I'd argue Criteo S.A. (NASDAQ: CRTO ) looks meaningfully undervalued, driven by a mix of internal improvements and exposure to longer-term, secular growth trends. Over the past few years, the company has repositioned itself into a broad-based commerce media modelI have over 13 years of diverse financial analysis experience across various sectors, including Auto, Industrials, and IT. Worked in a Ford and Caterpillar treasury, and managed Investor relations and Strategic finance of a listed IT ...

Company Overview - Fluent, Inc. is a leader in commerce media, connecting top-tier brands with highly engaged consumers through exclusive ad inventory and robust first-party data [3] - The company utilizes proprietary machine learning to unlock additional revenue streams for partners and empower advertisers to acquire valuable customers at scale [3] - Founded in 2010, Fluent specializes in performance marketing to drive monetization and increase engagement throughout the customer journey [3] Upcoming Event - Don Patrick, the CEO of Fluent, will attend the 45th Annual Canaccord Genuity Growth Conference on August 13, 2025, at the InterContinental Boston [1] - Mr. Patrick will participate in a fireside chat at 12:00pm ET and will be available for one-on-one meetings throughout the day [1] Webcast Information - A live webcast of the fireside chat will be available at a specified link, with a replay accessible after the event [2]

Core Insights - Criteo and dentsu have announced an expanded global partnership aimed at enhancing commerce and performance media campaigns for dentsu's clients, marking the first time a top holding company will utilize Criteo's complete Commerce Media Platform stack [1][2][3] Partnership Details - The partnership will provide dentsu's brands and retailers with AI-enhanced audiences, buying tools, consultancy services, and measurement capabilities to improve commerce outcomes [2] - Dentsu will integrate Criteo's commerce SKU signals and product intelligence into its media solutions, aiming to help clients grow in the Algorithmic Era [3] Technology and Tools Utilization - Dentsu will leverage Criteo's SKU-Based Planning Tool to streamline campaign activation, management, and optimization across over 200 global retailers [5] - The Commerce Growth Performance Buying Platform will be used by dentsu to execute performance deals across video and display ad formats, enhancing customer attraction and retention [5] - Access to custom supply packages of premium publishers' inventory will allow dentsu to improve targeting and performance across campaigns run on third-party demand-side platforms [5] Consultancy and Support - Dentsu clients will benefit from Criteo's consultancy services, which will provide insights to help retailers build and scale their media networks effectively [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $55.2 million, a decrease of 16% year-over-year, with $5.2 million of that decline attributed to exited businesses in 2024 [16][17] - Commerce Media Solutions revenue increased by 99% to $12.7 million, indicating strong growth momentum [17] - Owned and operated revenue decreased by 30% year-over-year to $31.1 million, primarily due to challenges in acquiring media from social media channels [17][18] - Gross margins decreased compared to the prior year due to media cost pressures and a shift in revenue mix [18] - Adjusted EBITDA for Q1 2025 was a loss of $3.1 million, compared to a positive adjusted EBITDA of $0.7 million in Q1 2024 [19][20] - Net loss for Q1 2025 was $8.3 million, compared to a net loss of $6.3 million in the prior year [22] Business Line Data and Key Metrics Changes - Commerce Media Solutions now represents 23% of consolidated revenue, up from 10% a year ago [12] - Media margin for Q1 2025 was $13.7 million, or 24.9% of revenue, down from $22.1 million or 33.6% of revenue in the previous year [18] - Commerce Media gross margin was $3.1 million, or 24.6% of revenues, compared to $2 million or 31.3% of revenues in Q1 2024 [19] Market Data and Key Metrics Changes - The commerce media market is projected to grow to $100 billion over the next five years, accounting for more than 25% of digital media spend by 2026 [10] - The company is navigating cost pressures from international tariffs and broader retail inflation, creating uncertainty in the industry [12][13] Company Strategy and Development Direction - The company is focusing on growth opportunities in commerce media solutions, leveraging its owned and operated marketplaces as a foundation for expansion [5][6] - A strategic partnership with Rebuy Engine aims to enhance revenue opportunities and access a large Shopify ecosystem [6][10] - The company anticipates a shift in revenue mix towards commerce media solutions, which is expected to improve margins over time [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to year-over-year consolidated revenue growth and positive adjusted EBITDA in the second half of 2025 [9][12] - The company is optimistic about the growth potential in the commerce media industry, viewing it as a significant opportunity for long-term revenue growth [14][24] - Management acknowledged the challenges posed by economic uncertainty but believes that new commerce partners will help offset potential declines in consumer spending [51] Other Important Information - The company ended Q1 2025 with $6.1 million in cash and cash equivalents and reduced total debt to $25.6 million [22][23] - The company is strategically utilizing debt as a source of capital as the business scales [23] Q&A Session Summary Question: Can you share more about the Rebuy Engine partnership and its expected financial contributions? - Management highlighted the strategic importance of the partnership, providing access to a new sales channel in Shopify and enhancing revenue opportunities [26][30] Question: What are the key contributors to accelerating CMS revenue growth back to triple digits? - Management indicated that acquiring new commerce partners and leveraging technology investments will drive growth [32] Question: Can you discuss efforts to expand supply channels for the owned and operated segment? - Management noted ongoing challenges due to regulatory impacts but is exploring new nontraditional platforms to stabilize the business [34][39] Question: What level of stabilization is needed in the O&O segment to achieve positive EBITDA? - Management confirmed that the O&O business remains profitable and expects revenue growth from commerce media to drive overall profitability [46] Question: How does economic uncertainty affect commerce media signings? - Management observed an acceleration in the pipeline during economic uncertainty, indicating a faster conversion of potential clients [55][56] Question: What does the future business model for commerce media look like? - Management expects strong operating leverage and a shift towards contribution margin positivity in 2025 [61][62]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $55.2 million, a decrease of 16% year-over-year, with $5.2 million of that decline attributed to exited businesses in 2024 [16] - Commerce Media Solutions revenue increased by 99% to $12.7 million, indicating strong growth momentum [17] - Owned and operated revenue decreased by 30% year-over-year to $31.1 million, primarily due to challenges in acquiring media from social media channels [17] - Gross margins decreased compared to the prior year due to media cost pressures and a shift in revenue mix [18] - Adjusted EBITDA for Q1 2025 was a loss of $3.1 million, compared to a positive adjusted EBITDA of $0.7 million in Q1 2024 [20] - Net loss for Q1 2025 was $8.3 million, compared to a net loss of $6.3 million in the prior year [21] Business Line Data and Key Metrics Changes - Commerce Media Solutions now represents 23% of consolidated revenue, up from 10% a year ago [12] - Media margin for Q1 was $13.7 million, representing 24.9% of revenue, down from 33.6% in the previous year [18] - Commerce Media gross margin was $3.1 million or 24.6% of revenues, compared to $2 million or 31.3% in Q1 2024, showing strong growth despite lower margins [19] Market Data and Key Metrics Changes - The commerce media market is projected to grow to $100 billion over the next five years, accounting for over 25% of digital media spend by 2026 [10] - The company is navigating cost pressures from international tariffs and broader retail inflation, creating uncertainty in the industry [12] Company Strategy and Development Direction - The company is pivoting towards growth opportunities in commerce media solutions, leveraging its owned and operated marketplaces [5][6] - A strategic partnership with Rebuy Engine aims to enhance revenue opportunities and expand market share within the Shopify ecosystem [6][10] - The company anticipates a stabilization of its owned and operated business while focusing on the growth of commerce media solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to year-over-year consolidated revenue growth and positive adjusted EBITDA in the latter half of 2025 [9] - The company is optimistic about the potential of the commerce media marketplace, viewing it as a significant growth opportunity [14] - Management acknowledged the challenges posed by economic uncertainty but believes new commerce partners will offset potential declines in consumer spending [47] Other Important Information - The company ended Q1 2025 with $6.1 million in cash and cash equivalents and reduced total debt to $25.6 million [21][22] - The partnership with Rebuy is expected to provide significant upside, with initial clients already live on the platform [67] Q&A Session Summary Question: Can you share more about the Rebuy Engine partnership and its expected financial contributions? - The partnership is seen as a major milestone, providing access to a large sales channel in Shopify, with initial integrations already live [25][26] Question: What are the key contributors to accelerating CMS revenue growth back to triple digits? - The focus is on acquiring new commerce partners and leveraging technology investments made over the past two years [30] Question: What efforts are being made to expand supply channels for the owned and operated segment? - The company is exploring new nontraditional platforms and working with demand partners to improve media buying strategies [32][35] Question: How does the economic environment affect commerce media signings? - There is an acceleration in the pipeline during economic uncertainty, with faster movement through sales phases [51][52] Question: What is the outlook for the enterprise pipeline in commerce media? - The pipeline has doubled in size, with larger opportunities compared to the previous year, reflecting strong brand building and results [72]

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 - In full year 2024, total billings decreased by 0.7% year over year, while annual adjusted EBITDA was $2.5 million positive for the second time on a full year basis [20] - In Q4, total billings were $116.3 million, an 11.2% decrease year over year, but exceeded guidance due to improvements in delivery and pipeline wins [21][22] - Revenue decreased by 16% to $74 million in Q4, with U.S. revenue down 19.9% due to lower billings and higher redemptions [24][25] Business Line Data and Key Metrics Changes - The UK business saw a 27.2% revenue growth in Q4, marking the fourth consecutive quarter of double-digit growth [24] - Bridge revenue declined by 12.7% compared to the prior year due to the loss of key accounts [24] - Adjusted contribution was $40.7 million, down 12%, but the adjusted contribution margin improved by 2.5 points due to a more favorable partner mix [25] Market Data and Key Metrics Changes - MAUs were 167.3 million for Q4, a decrease of 0.4%, primarily driven by winding down DASH and a smaller FI partner [26] - ARPU was $0.44, down 16.7% as a result of increased consumer incentives [26] - The company expects Q1 to represent the trough in performance, with billings guidance indicating a negative growth of 10% to 13% [27][29] Company Strategy and Development Direction - The company is focused on a turnaround plan to return to growth, divesting non-core businesses and investing in partnerships and data engineering capabilities [7][8] - A new office in Taiwan is being established to leverage local talent aligned with growth priorities [8] - The company aims to strengthen its competitive position by enhancing its commerce media platform and expanding its network [6][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged executional challenges in 2024 but expressed confidence in the company's unique value proposition and the potential for growth in 2025 [20][19] - The company anticipates a transformative year in 2025, focusing on product and tech stack innovation, expanding its network, and improving execution [19][32] - Management noted a consumer pullback in discretionary spending but highlighted strength in everyday spend categories [60] Other Important Information - The company ended Q4 with $65.6 million in cash and cash equivalents, providing over $100 million in liquidity [26] - Operating cash flow was positive at $3 million, while free cash flow was negative $1.5 million, showing sequential improvement [25] - The company is committed to maintaining cost discipline while making strategic investments in key areas [31] Q&A Session Summary Question: Delivery performance improvements - Management confirmed sequential improvements in delivery, with campaigns now hitting ROAS goals and under delivery continuing to improve [36][37] Question: Significance of new NeoBank partnership - Management emphasized the importance of every partner, noting that the new neobank will add diverse demographic segments and is expected to be fully ramped up shortly [40][42] Question: Future operating expenses outlook - Management expects operating expenses to remain below $40 million for the rest of the year, normalizing from Q4 levels due to reduced incentive compensation [44][45] Question: Stability of consumer incentives - Management indicated that consumer incentives should remain stable in the low 60% range as engagement improves [50][52] Question: Impact of Dosh on profitability - Management clarified that Dosh's closure would not have a significant impact on profitability, allowing the team to refocus on more critical initiatives [53][55] Question: Advertiser mentality amidst economic uncertainties - Management noted a consumer pullback in discretionary spending but highlighted the strength of everyday spend categories and the diversified advertiser base [60][62] Question: Potential of micro-targeting solutions - Management expressed optimism about the unique capability of combining datasets to unlock new CPG budgets and provide more value to consumers [63][64] Question: Contribution of new large U.S. FI partner - Management stated that the new partner would not significantly contribute to Q1 numbers but is expected to ramp throughout the year [67][68] Question: Drivers of pipeline strength - Management highlighted improvements in delivery and supply as key drivers of pipeline strength, with a focus on expanding partnerships beyond financial institutions [69][70]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $65.4 million, a decrease of 10% from the prior year [25] - Adjusted EBITDA for Q4 2024 was negative $1.7 million compared to positive $2.5 million in Q4 2023 [31] - Net loss for Q4 2024 was $3.4 million, compared to a net loss of $1.9 million in the prior year [33] - Full-year 2024 net loss was $29.3 million, an improvement from a net loss of $63.2 million in 2023 [33] Business Line Data and Key Metrics Changes - Commerce Media Solutions revenue increased 139% to $17.2 million in Q4 2024 compared to Q4 2023, and for the full year, it totaled $41.3 million, an increase of 284% [26] - Owned and operated revenue decreased by 23% in Q4 2024 compared to the prior year, and a decrease of 29% for the full year [26] - Media margin in Q4 2024 was $16.5 million, representing 25.3% of revenue, down from 33.1% in the previous year [27] Market Data and Key Metrics Changes - Commerce Media Solutions accounted for 26% of consolidated revenue in Q4 2024, up from 16% in 2023 [19] - The commerce media industry is estimated to be valued at over $50 billion and expected to reach over $100 billion in the next five years [16] Company Strategy and Development Direction - The company is strategically shifting its business mix towards commerce media solutions, which is seen as a significant growth opportunity [9] - The focus is on building partnerships with major brands and enhancing market credibility [37] - The company plans to continue investing in technology and analytics to support the growth of commerce media solutions [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong year-over-year triple-digit revenue growth in commerce media solutions throughout 2025 [8] - The company anticipates a return to year-over-year double-digit consolidated revenue growth and profit growth in 2025 [15] - Management acknowledged challenges in Q4 due to increased media costs and a write-down related to ACA revenue [12][14] Other Important Information - The company ended Q4 2024 with $10.7 million in cash and cash equivalents [34] - Total debt as of December 31, 2024, was $31.9 million, an increase from $30.5 million at the end of 2023 [35] - The company has appointed Adrian Stack as the new Chief Product Officer to further its goals in commerce media [37] Q&A Session Summary Question: What is the pace of growth for Commerce Media Solutions going forward? - Management indicated that they expect to continue growing at a triple-digit rate in 2025 and beyond, supported by a strong pipeline and competitive advantages [42][44] Question: Is there a portion of the owned and operated revenue that is more durable? - Management views the owned and operated segment as a competitive advantage but does not expect it to be a growth engine, focusing instead on stabilizing it while prioritizing commerce media solutions [51] Question: Can you elaborate on the pipeline in the commerce media business? - Management confirmed that the pipeline is significant and growing, with potential transformative partnerships that could accelerate growth [74][76] Question: What is the conversion rate for post-sale ads compared to the competition? - Management stated that their consumers are over 25% more valuable than those connected through competitors, indicating a strong competitive advantage [85]