The J. M. Smucker Company (SJM) Q4 2025 Earnings Call June 10, 2025 09:00 AM ET Company Participants Crystal Beiting - VP - Investor Relations & FP&AMark Smucker - CEO & Chair of the BoardTucker Marshall - CFOKenneth Goldman - Managing DirectorRobert Moskow - Managing Director Conference Call Participants Andrew Lazar - AnalystPeter Galbo - AnalystChristopher Carey - Equity Analyst - Head of Consumer Staples ResearchThomas Palmer - Vice President, Senior Equity Research AnalystMegan Clapp - Equity Research ...

Core Insights - trivago N.V. reported a strong financial performance in Q1 2025, with total revenue increasing by 22% to €124.1 million and referral revenue growing by 23% to €123.4 million compared to the same period in 2024 [6][10][21] - The company has revised its full-year revenue growth guidance upward to the mid-teens percentage range, reflecting a strong growth trajectory and improved Adjusted EBITDA profitability [4][15] - The positive momentum continued into April 2025, with strong double-digit growth observed [5][12] Financial Performance - Total revenue for Q1 2025 was €124.1 million, up from €101.4 million in Q1 2024, marking a 22% year-over-year increase [6][10] - Referral revenue reached €123.4 million, a 23% increase from €100.2 million in the prior year [6][21] - The net loss decreased by 7% to €7.8 million, while Adjusted EBITDA loss improved by 29% to €6.5 million compared to Q1 2024 [6][44] Revenue Breakdown - Referral revenue growth was observed across all segments: Americas (18%), Developed Europe (19%), and Rest of World (44%) [7][21] - The company generated 35% of its referral revenue from Expedia Group brands and 40% from Booking Holdings brands in Q1 2025 [25] Advertising and Marketing - Advertising spend increased by 24% to €104.5 million in Q1 2025, driven by brand marketing investments across all segments [28][29] - The global Return on Advertising Spend (ROAS) was stable at 118.1%, slightly down from 119.2% in the previous year [11][30] Cost Structure - Total costs and expenses rose by 18% to €133.7 million in Q1 2025, primarily due to increased selling and marketing expenses [32][34] - Selling and marketing expenses accounted for €110.2 million, with €104.5 million attributed to advertising spend [34][36] Cash Flow and Balance Sheet - Total cash, cash equivalents, and restricted cash decreased to €118.6 million as of March 31, 2025, down from €134.1 million at the end of 2024 [45] - Cash used in operating activities was €14.1 million, contributing to the overall cash decrease [46]

Financial Data and Key Metrics Changes - In Q1 2025, Capital One earned $1.4 billion, or $3.45 per diluted common share, with adjusted earnings per share at $4.06 [9][10] - Revenue declined 2% from the previous quarter, primarily due to two fewer days in the quarter [11] - Provision for credit losses was $2.4 billion, a decrease of $273 million compared to the prior quarter, driven by lower net charge-offs and a larger reserve release [11][12] Business Line Data and Key Metrics Changes - Domestic card business saw a 5% year-over-year purchase volume growth, with ending loan balances increasing by $6.4 billion, or about 4% year over year [22] - Consumer banking ending loan balances increased by $3.8 billion, or about 5% year over year, with auto originations up 22% from the prior year [28][27] - Commercial banking revenue was down 7% from the linked quarter, with ending deposits down about 5% [31] Market Data and Key Metrics Changes - Total liquidity reserves increased to $131 billion, up $7 billion from the previous quarter, with a cash position of approximately $49 billion [16] - The net interest margin for Q1 was 6.93%, a decrease of 10 basis points from the last quarter, but an increase of 24 basis points year-over-year [18] Company Strategy and Development Direction - The acquisition of Discover is expected to create a leading consumer banking and payments platform, enhancing competition and creating significant value for merchants and customers [34][38] - The company is focused on leveraging technology transformation to build a digital-first national bank, with significant investments in marketing to attract high-spending customers [86][100] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. consumer remains strong, with low unemployment and stable debt servicing burdens, although some consumers are feeling pressure from inflation and higher interest rates [46][49] - The company is closely monitoring credit metrics and consumer spending trends, indicating a cautious but optimistic outlook [58][60] Other Important Information - The company released $368 million in allowance this quarter, bringing the allowance balance to $15.9 billion, with a total portfolio coverage ratio of 4.91% [12][19] - The company expects to achieve estimated synergies from the Discover acquisition within 24 months following the closing date [35][36] Q&A Session Questions and Answers Question: Concerns regarding tariffs and the state of the consumer - Management highlighted that the U.S. consumer remains a source of strength, with improving credit metrics and stable job creation [46][48] Question: Timing for achieving synergies from the Discover acquisition - Management indicated that the assumptions for synergies remain intact, with a timeline shifted back slightly due to the later closing date [70][129] Question: Marketing investment and growth opportunities - Management discussed significant marketing investments aimed at customer growth, particularly in the card business, while balancing risk management [78][90] Question: Technology integration between Capital One and Discover - Management expressed confidence in leveraging Capital One's technology transformation to modernize Discover's systems, although it will take time [114][117]