Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $470 million, with contribution ex-TAC increasing to $288 million, reflecting a year-over-year tailwind from foreign currencies of $6 million [18][22] - Adjusted EBITDA was $105 million, up 28% year over year, resulting in an adjusted EBITDA margin of 36%, up 500 basis points year over year [21][22] - Net income improved to $40 million, with diluted earnings per share of $0.70 and adjusted diluted EPS of $1.31, up 36% year over year [23][24] Business Line Data and Key Metrics Changes - In performance media, revenue was $403 million, with contribution ex-TAC at $222 million, up 5% at constant currency [18][19] - Retail media revenue was $67 million, with contribution ex-TAC growing 11% at constant currency, driven by strong on-site retail media performance [21][22] - Media spend in retail media grew 26% year over year, with over 4,100 brands participating [12][21] Market Data and Key Metrics Changes - Travel was the fastest-growing vertical, up 24%, while fashion saw an 11% decline [20] - Media spend growth was noted in Asia-Pac and EMEA, with softer but improving trends in the U.S. [19] Company Strategy and Development Direction - The company is evolving into a diversified, multi-channel platform, with about 85% of media spend now outside of desktop display [5][6] - Focus on agentic AI and partnerships with AI platforms to enhance product recommendations and shopping experiences [6][8] - Plans to re-domicile to Luxembourg and list ordinary shares directly on Nasdaq to enhance capital management flexibility [16][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business strategy and the ability to capture shifts in commerce and advertising [17][29] - Anticipated lower revenue in Q4 due to specific client scope changes, but underlying growth in retail media is expected to be strong [26][28] - The company expects contribution ex-TAC to grow 3% to 4% year over year at constant currency for 2025 [25][26] Other Important Information - The company closed the quarter with $811 million in total liquidity and no long-term debt, allowing for strategic flexibility [24] - The introduction of the Commerce GO solution is expected to drive higher spend and lower churn among small and mid-sized clients [9][10] Q&A Session Summary Question: Client response to agentic products and CTV growth opportunities - Management highlighted three opportunities in agentic products, including audience agents and campaign agents, aimed at simplifying audience generation and campaign management [31][32] - For CTV, investments are being made in supply-side integrations and demand-side tactics to enhance performance and audience acquisition [35][36] Question: Partnership with AI platforms and its impact on e-commerce - Management sees monetization strategies for AI platforms leaning towards native advertising solutions, with a focus on improving product-oriented responses through API data feeds [39][40] Question: Google partnership and its implications - The partnership with Google allows retailers to capture brand search budgets traditionally outside retail media, with an expected significant addressable spend of $172 billion [44][46] Question: Retail media trends and new client ramp-up - Management noted that most Q3 activity was related to existing clients, with new wins like DoorDash starting to ramp up [53][54] Question: Adjusted EBITDA beat and re-domicile implications - The adjusted EBITDA beat was attributed to operational leverage and reduced bad debt reserves, with no material costs expected from the re-domicile [57][59] Question: Investments for AI products and retail media headwinds - Management indicated that investments for AI products are within normal ranges, with a focus on scaling existing tools and partnerships [60][63]

Core Insights - Criteo S.A. reported a strong financial performance for Q3 2025, with revenue of $470 million, a 2% increase year-over-year, and a significant net income rise to $40 million from $6 million in Q3 2024, marking a 552% increase [2][9][10] - The company announced plans to redomicile to Luxembourg and list ordinary shares on Nasdaq, aiming to simplify legal complexities and enhance capital allocation flexibility [14][15] - Criteo appointed Edouard Dinichert, a veteran from Amazon, as Chief Customer Officer to strengthen its leadership team [8] Financial Performance - Revenue for Q3 2025 was $470 million, up 2% from $459 million in Q3 2024, while gross profit increased by 11% to $256 million [2][6] - Net income surged to $40 million, translating to a diluted EPS of $0.70, compared to $0.11 in the previous year [9][41] - Adjusted EBITDA reached $105 million, a 28% increase year-over-year, with an adjusted EBITDA margin of 36% [10][12] Cash Flow and Liquidity - Cash flow from operating activities was $90 million, up from $58 million in Q3 2024, while free cash flow increased to $67 million from $39 million [12][42] - As of September 30, 2025, Criteo had $296 million in cash and marketable securities, with total financial liquidity of approximately $811 million [13][12] Strategic Developments - Criteo's media spend was $4.3 billion over the last 12 months, with a 4% year-over-year increase in Q3 2025 [8] - The company expanded its retail media network, integrating over 4,100 brands and forming new partnerships with companies like DoorDash and Sephora [8] - Criteo was named Google's first onsite Retail Media partner, enhancing its advertising capabilities [8] Future Outlook - The company raised its full-year 2025 margin outlook and expects Contribution ex-TAC to grow by 3% to 4% at constant currency [21] - Criteo anticipates an Adjusted EBITDA margin of approximately 34% of Contribution ex-TAC, up from previous guidance [21]

Core Viewpoint - Criteo S.A. has raised its full-year 2025 outlook, reflecting confidence in its business strategy and performance, as evidenced by disciplined execution and a solid foundation for future growth [1][9]. Financial Highlights - Revenue for Q2 2025 was $483 million, a 2% increase year-over-year, while gross profit rose 11% to $259 million [8][9]. - Contribution ex-TAC for Q2 2025 increased 9% year-over-year to $292 million [9][10]. - Net income for Q2 2025 was $23 million, down 18% from $28 million in Q2 2024, resulting in diluted EPS of $0.39 [10][11]. - Adjusted EBITDA for Q2 2025 was $89 million, a decrease of 4% year-over-year [11][41]. Operating Highlights - Criteo's media spend was $4.3 billion over the last 12 months, with $1.0 billion in Q2 2025, remaining flat year-over-year at constant currency [7]. - Retail Media Contribution ex-TAC grew 11% year-over-year at constant currency, with same-retailer retention at 112% [7]. - The company expanded its platform to 4,000 brands and launched new technologies, including Auction-Based Display and a global integration with Mirakl Ads [7]. Cash Flow and Financial Position - Cash flow from operating activities was $(1) million in Q2 2025, while Free Cash Flow was $(36) million [13][14]. - As of June 30, 2025, Criteo had $241 million in cash and marketable securities, down from $290 million at the end of 2024 [14][35]. Business Outlook - Criteo expects Contribution ex-TAC to grow by 3% to 4% at constant currency for the full year 2025, an increase from previous low-single-digit growth guidance [15][17].

Summary of Criteo Conference Call Company Overview - **Company**: Criteo - **Industry**: E-commerce, Digital Marketing, Media Monetization - **CEO**: Michael Komosinski, who joined earlier this year, previously held leadership roles at Dentsu and Merkel [2][3] Key Points and Arguments Competitive Advantages - Criteo is an independent ad tech player, providing value on both supply and demand sides of retail media [9] - The company has an unmatched supply footprint due to its early market entry with the Commerce Yield monetization platform [10] - Criteo's strategy focuses on reaccelerating growth, improving durability, and enhancing performance media execution [12] Growth Strategy - The company aims to identify white space in product segments and develop products rapidly to achieve consistent results [13] - Near-term opportunities include expanding product offerings in performance media and retail media, such as on-site video and native advertising [14][15] - Long-term goals involve advancements in technology for more efficient retail supply purchasing [15] Market Trends - The advertising industry is moving towards AI-driven automated marketing platforms, with Criteo's Commerce Go tool driving significant campaign volume growth [23][24] - The company reported a 45% quarter-on-quarter growth in its Commerce Audience segment [19] - Social media integrations, particularly with Meta, have shown a 40% sequential growth in 1Q [21] Financial Performance - Criteo maintains a 25% adjusted EBITDA margin guide, with a commitment to growth investments despite a lower revenue base [43] - The company is focused on organic growth and opportunistic M&A to accelerate its roadmap [46] Challenges and Risks - There are signs of softer macro trends affecting client spending, particularly in discretionary categories [41] - The company has reduced scope with its largest client, but believes this situation is unique and not likely to spread [38][40] Future Outlook - Criteo sees a $50 billion serviceable available market (SAM) by 2027 in retail media [29] - The company is optimistic about the integration with Microsoft advertising and expects to make announcements regarding this in the near future [33][34] Additional Important Content - The CEO emphasized the importance of execution and reliability in delivering consistent results to investors [12] - Criteo's focus on AI and data assets positions it well for future developments in the agentic shopping experience [27][28] - The company continues to repurchase shares as part of its capital allocation strategy, balancing growth investments with shareholder returns [46][47]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $451 million, with contribution ex TAC increasing to $264 million, reflecting a year-over-year headwind from foreign currencies of $6 million [28] - Adjusted EBITDA was $92 million, up 30% year-over-year, driven by operational leverage from top-line growth and cost discipline [31] - Net income for Q1 2025 was $40 million, a significant increase compared to $9 million last year, with diluted earnings per share of $0.66 compared to $0.12 last year [32][33] Business Line Data and Key Metrics Changes - Retail media revenue was $59 million, with contribution ex TAC growing 18% at constant currency, driven by strength in on-site and off-site campaigns [29] - Performance media revenue was $392 million, with contribution ex TAC increasing by 4% at constant currency, led by the Commerce Growth Solution [30] - Retail media activated $335 million in media spend, up 21% year-over-year, with significant growth in U.S. agency spend [17][18] Market Data and Key Metrics Changes - Double-digit growth in media spend was observed in Asia Pacific, while low single-digit growth occurred in Europe and the Middle East, with lower budgets in the U.S. [31] - Travel was the fastest-growing vertical, up 44%, while retail and fashion saw declines of 6% [31] Company Strategy and Development Direction - The company aims to reaccelerate growth and improve durability, fortifying its leadership position in retail media and reenergizing its performance media business [9][10] - A shift from a managed service model to a more scalable self-service platform is underway, with investments in new formats like outcome-based native display and CTV [15][26] - The company plans to maintain a disciplined approach to growth through a build, partner, and buy framework, focusing on maximizing shareholder value [14][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the performance media segment, especially following Google's decision regarding third-party cookies [6][35] - The company anticipates a challenging macro environment impacting retail media growth, projecting low to mid-single-digit growth at constant currency for 2025 [36] - Despite near-term challenges, management remains optimistic about the underlying strength of the commerce media platform and expects continued growth and profitability [41][42] Other Important Information - The company has a strong financial position with $810 million in total liquidity and no long-term debt, allowing for disciplined capital allocation [33] - A share buyback program was initiated, with $56 million deployed for share repurchases in Q1 2025 [34] Q&A Session Summary Question: Impact of largest retail partner's changes - Management noted that the largest retail media client will continue to use their technology but will curtail managed services, impacting growth rates for retail media [46][48] Question: Macro trends in April - Management observed a soft macro environment in April, with mixed performance across categories, but emphasized resilience in their performance business [52][53] Question: Spending patterns across income demographics - Management indicated that discretionary categories are seeing less spend across income bands, with a focus on monitoring trends as retailers announce results [57][59] Question: Retail media client revenue impact - The impact from the largest retail media client is significant but is expected to lap within a year, with ongoing growth from other clients [61][62] Question: Self-service tools sophistication - Management acknowledged that Criteo is on a journey to enhance self-service capabilities, with excitement around the rollout of Commerce Go [98]