Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $483 million, with contribution ex TAC increasing to $292 million, reflecting a year-over-year tailwind from foreign currencies of $6 million [28] - At constant currency, Q2 contribution ex TAC grew by 7% year-over-year, representing growth of 21% on a two-year stack basis [28] - Adjusted EBITDA for Q2 2025 was $89 million, reflecting strong operational leverage from top-line growth and cost discipline [33] - Net income for Q2 2025 was $23 million, resulting in diluted earnings per share of $0.39 and adjusted diluted EPS of $0.92 [34] Business Line Data and Key Metrics Changes - In Performance Media, revenue was $422 million, with contribution ex TAC up 6% at constant currency or 17% on a two-year stack basis [29] - Retail Media revenue was $61 million, with contribution ex TAC growing 11% at constant currency, representing a 35% increase on a two-year stack [31] - Campaign volume for Commerce Go grew 200% quarter-over-quarter, driven by increasing adoption from SMB advertisers and lower churn [18] Market Data and Key Metrics Changes - Travel vertical grew by 28% in Q2 2025, with notable strength in APAC driven by full funnel activation [20] - Retail spending, particularly in fashion, was down 6%, indicating challenges in certain sectors [30] - Media spend in Q2 grew 20% year-over-year, demonstrating share gains across a diversified client base [32] Company Strategy and Development Direction - The company is focused on delivering full funnel, cross-channel, self-service advertising, leveraging unique commerce data and AI [6] - A renewed focus on performance media and accelerated AI innovation is expected to drive the next phase of growth [15] - The company is expanding its partnerships with agencies, including a significant partnership with Dentsu, to enhance its commerce media platform [10] Management's Comments on Operating Environment and Future Outlook - Management noted a slow start to the quarter but observed better macro trends in May, with a relatively stable environment since then [28] - The company anticipates positive free cash flow generation in the second half of the year, with a free cash flow conversion rate above 45% of adjusted EBITDA [35] - For 2025, the company expects contribution ex TAC to grow 3% to 4% year-over-year at constant currency, with growth in each segment [37] Other Important Information - The company has a strong financial position with $746 million in total liquidity and no long-term debt [36] - The company is committed to disciplined capital allocation, including investments in high ROI organic investments and share buyback programs [36] Q&A Session Summary Question: What is the monetization strategy for the AgenTic AI product? - The monetization strategies for AgenTic AI are still being determined, with options ranging from affiliate programs to sponsored citations [43][46] Question: Are clients actively spending on AgenTic AI? - It is early days in discussions, with retailers focusing on controlling data flows and ensuring relevance in the shopper journey [53][55] Question: Can you elaborate on the agency relationships and their impact on financials? - The agency relationships are structured around shared economics, data integration, and co-development strategies, with strong traction in agency spending [58][63] Question: What is the outlook for CTV and its value to advertisers? - CTV is seen as a promising channel for performance-based advertising, with the ability to tie advertising to sales lift [81][84] Question: How is the Miracle partnership expected to impact market penetration? - The Miracle partnership is aimed at unlocking demand from third-party sellers in the mid to long tail, enhancing Criteo's value proposition [74][75] Question: What is the current retailer count and outlook for retention? - The company now partners with over 230 retailers, with a strong base in the US and Europe, feeling confident about retaining its retailer base [77]