Core Insights - Sensormatic Solutions has introduced a new customizable electronic article surveillance (EAS) system called the FLEX platform, aimed at enhancing retail environments and customer experiences [1][2] - The FLEX platform integrates visual merchandising, digital content management, and loss prevention technology, allowing retailers to create engaging storefronts while deterring theft [1][2] - The system will be showcased at the 2026 NRF Big Show in New York City from January 11-13, where attendees can explore its features [3] Company Overview - Johnson Controls, the parent company of Sensormatic Solutions, focuses on transforming environments for various sectors, emphasizing smart and sustainable building solutions [4][5] - With a history of 140 years, Johnson Controls offers a comprehensive digital offering called OpenBlue, which includes a wide range of building technology and software solutions [5] Product Features - The FLEX platform is designed to increase foot traffic and sales by enhancing retail operations and customer engagement while minimizing shrinkage [7] - Its modular design allows for customization, enabling retailers to maintain brand experiences and adapt to changing trends [7] - The platform supports retail media network (RMN) performance by utilizing high-quality displays to capture shopper attention and create new revenue streams [7] Brand Positioning - Sensormatic Solutions has been a leader in retail technology for over 60 years, focusing on loss prevention, inventory intelligence, and traffic insights to help retailers innovate [8]

Group 1 - 4Court Media has launched a retail media network aimed at enhancing advertising opportunities for fuel dispensers, primarily operating on Wayne Ovation screens [6] - The network will provide multimedia content to customers at over 13,000 screens across more than 1,500 locations, connecting advertisers with a diverse range of retailers, including smaller independent operators [6] - The initiative allows retailers to generate incremental revenue and integrate their loyalty programs and seasonal campaigns into the retail media network alongside national advertisements [3][4] Group 2 - The retail media space has seen increased integration among convenience stores, with notable partnerships such as BP and Jacksons Food Stores joining Axonet, and Casey's General Stores collaborating with GSTV [4] - Kendra Keller from Dover Fueling Solutions emphasized that the combination of their solutions with a growing retail media network offers advertisers a powerful means to engage consumers and drive foot traffic to stores [4]

Core Insights - Dover Fueling Solutions (DFS) has launched 4Court Media, a retail media network aimed at connecting brands with consumers at fuel dispensers [1][2] Group 1: 4Court Media Overview - 4Court Media provides access to a wide range of fueling retailers, including thousands of independent operators, making it easier for advertisers to reach consumers [2] - The network operates primarily on Wayne Ovation® fuel dispenser screens, utilizing high-definition displays to deliver engaging multimedia content [2][4] - With over 1,500 locations and 13,000 screens already operational, 4Court Media is rapidly growing and offers a new alternative for advertisers in a historically limited market [4] Group 2: Benefits for Retailers - 4Court Media offers a fully managed media service that enhances the forecourt experience while generating additional revenue through advertising sales [3] - Retailers can integrate their promotional content with national ads, allowing for a flexible platform to promote store offerings and loyalty programs [3] - The service aims to drive foot traffic and increase in-store sales by delivering timely and relevant messages to consumers [5] Group 3: Market Trends and Future Outlook - The Retail Rewired: 2026 Fuel & Convenience Trends Report indicates that retailers are focusing on improving the fuel-to-store journey, with plans to increase investment in promotion and advertising technology by 36% and digital signage by 34% over the next two years [5] - 4Court Media is positioned to support these trends by influencing shopper behavior at critical decision-making moments [5][6] - DFS aims to expand the network's capabilities and scale, particularly in the U.S. and Canada markets [6]

Financial Data and Key Metrics Changes - The company reported revenue of $9.7 billion for Q3, with an adjusted operating income rate of 4% and adjusted earnings per share increasing by 11% year-over-year to $1.40 [5][25] - Comparable sales growth was 2.7%, exceeding expectations [5][24] - Domestic revenue increased by 2.1% to $8.9 billion, while international revenue rose by 6.1% to $794 million [25][26] - The adjusted operating income rate increased by 30 basis points compared to last year [25][27] Business Line Data and Key Metrics Changes - Strong sales performance was noted in computing, gaming, and mobile phones, with computing achieving its seventh consecutive quarter of positive comps [5][6] - Desktop computers saw nearly 30% year-over-year growth, while gaming demand remained strong for the Nintendo Switch 2 [6][7] - Online revenue increased by 3.5% on a comparable basis, representing 31.8% of domestic revenue [25][26] - Declines were observed in home theater, appliance, and drone categories [5] Market Data and Key Metrics Changes - The company experienced a 17% decline in customer contacts due to improved customer support capabilities [17] - Online sales were up for the fourth consecutive quarter, driven by higher traffic and customer adoption of the app [7] - The international gross profit rate increased by 30 basis points to 22.8%, primarily due to favorable supply chain costs [27] Company Strategy and Development Direction - The company aims to strengthen its position as a leading omnichannel destination for technology while building new profit streams [9] - Strategic priorities include enhancing omnichannel experiences, driving incremental profitability streams through the marketplace, and improving operational efficiencies [13][17] - The marketplace has onboarded over 1,000 sellers and significantly increased the number of SKUs available [14][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the holiday season, highlighting compelling deals and strong marketing efforts [18][22] - The company expects Q4 comparable sales to range from down 1% to up 1%, with an adjusted operating income rate of 4.8%-4.9% [28][29] - There is an expectation for continued growth in computing and mobile phones, driven by product upgrades and innovation [36][38] Other Important Information - The company recorded pre-tax non-cash asset impairments of $192 million related to Best Buy Health, impacting adjusted results [27] - The loyalty program has over 100 million members, with nearly 8 million paid members, indicating strong customer engagement [53] Q&A Session Summary Question: Insights on Q4 guidance and expectations - Management indicated that the Q4 sales guidance was slightly lower than previous expectations but still reflects a strong outlook [34][35] Question: Demand trends for gaming and mobile products - Continued growth is expected in computing and mobile phones, with the Nintendo Switch 2 contributing positively [36][37] Question: Performance of the marketplace and its impact on EBIT - The marketplace has shown positive early indicators, with high unit sales and lower return rates compared to first-party sales [44][46] Question: Updates on the loyalty program's performance - The loyalty program remains crucial, with a focus on personalized promotions to drive engagement [52][54] Question: Store investment and future strategies - The company plans to continue investing in store experiences and exploring smaller format stores to enhance customer engagement [56][59]

Core Insights - Casey's General Stores has launched its retail media network, Casey's Access, in early 2023, capitalizing on the emerging advertising channel in the convenience store industry [2] - The partnership with GSTV aims to enhance Casey's Access by providing branded video content at fuel dispensers across 2,900 locations, significantly expanding its advertising capabilities [6] Group 1: Retail Media Network Development - Casey's Access has collected over six billion data points from shopper interactions since its inception [2] - The network features various advertising formats, including display ads, sponsored products, app takeovers, and AI-enabled audio [2] - The partnership with GSTV will add branded video content to Casey's Access, enhancing customer experience and influencing purchase decisions [3][4] Group 2: Partnership with GSTV - GSTV's network includes major convenience and fuel retailers, reaching over 115 million adults monthly across approximately 29,000 locations in the U.S. [4] - The collaboration will increase Casey's digital screen count to over 30,000 across its stores once fully rolled out [6] - The addition of Casey's to GSTV's national network is expected to benefit brand advertisers looking to expand their reach in the convenience channel [5]

Financial Data and Key Metrics Changes - The company reported a Gross Transaction Value (GTV) growth of 11% year over year, driven by a 17% increase in orders, although the average order value decreased by 5% year over year [20][22] - GAAP net income reached $116 million, up 92% year over year, while adjusted EBITDA was $262 million, reflecting a 26% year over year increase [22][24] - Stock-based compensation increased to $105 million, up $39 million quarter over quarter, with expectations for a decrease in Q3 [23][24] Business Line Data and Key Metrics Changes - Advertising and other revenue grew by 12% year over year, remaining flat at 2.8% of GTV, indicating resilience despite a pullback from one of the largest brand partners [21][22] - The company has scaled advertising revenue to over $1 billion in annual run rate, increasing the number of active brand partners from 4,000 to over 7,500 [13][22] Market Data and Key Metrics Changes - The company continues to lead in share of sales among digital-first players, with its share being more than three times larger than the next competitor [11][12] - The company is seeing strong user growth and higher order frequency, particularly among new customers acquired in 2025 [8][31] Company Strategy and Development Direction - The company is focused on enhancing its interconnected ecosystem, which allows for scalable tools that help retailers innovate and compete [10][11] - The strategy includes deepening retail partnerships and expanding into new categories, such as alcohol and restaurant orders through partnerships like Uber Eats [30][31] - The company aims to maintain its leadership position by meeting customers' full grocery needs, particularly in the big basket segment [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the strength of its operating model and the ability to deliver value for retailers and customers [13][25] - The leadership transition to Chris Rogers as the new CEO is seen as a positive step for the company's future growth [17][18] Other Important Information - The company has made strategic acquisitions to enhance its enterprise offerings and has repurchased over $1.6 billion worth of shares [15][24] - AI technology is integrated into the company's operations, with over 80% of code deployed in Q2 being AI-assisted [16] Q&A Session Summary Question: Competitive landscape and supply improvements - Management discussed the importance of onboarding more retailers and deepening existing partnerships to enhance supply and improve conversion rates [28][30] Question: Growth composition between grocery and restaurants - Management clarified that the addition of restaurant orders has contributed to overall order growth, with expectations for moderation in Q3 [34][36] Question: Interest in the Instacart platform and enterprise pipeline - Management highlighted the focus on Storefront Pro and the ability to upsell additional services to existing retailers [44][46] Question: CPG environment and advertising outlook - Management noted ongoing uncertainty in the CPG environment but emphasized the resilience of their advertising revenue and the potential for emerging brands to gain market share [52][56] Question: Affordability initiatives and customer retention - Management explained that their affordability strategy is broad-based and includes various initiatives to enhance customer retention and engagement [103][106]

Core Insights - Quad/Graphics Inc. is expanding its In-Store Connect retail media network into Vallarta Supermarkets, enhancing shopper engagement and providing new opportunities for consumer packaged goods (CPG) brands [1][2] Company Overview - Quad is a marketing experience company that integrates creative, production, and media solutions across online and offline channels, serving approximately 2,100 clients and employing around 11,000 people in 11 countries [5][6] Partnership Details - The partnership will introduce digital signage in 15 Vallarta stores, focusing on high-traffic areas to promote CPG brands, local products, and special promotions, with messaging available in both English and Spanish [2][3] - Vallarta Supermarkets aims to enhance customer experience and loyalty through innovative tools like In-Store Connect, which allows for effective communication of unique products and savings [3][4] Market Impact - The collaboration is expected to deepen shopper loyalty and create immersive shopping experiences, as 88% of consumers find it easy to remember engaging physical store experiences [4]

Financial Data and Key Metrics Changes - The company reported revenue of $9.7 million for Q1 2025, down from $12.3 million in Q1 2024, attributed to installation timing on several large projects [5][6] - Gross profit decreased to $4.5 million from $5.8 million year-over-year, with a gross margin of 46%, consistent with the prior year [6] - Annual recurring revenue (ARR) increased to a run rate of $17.3 million at the end of the quarter, up from $16.8 million at the start of 2025 [6] - Adjusted EBITDA remained stable at $500,000, with SG&A expenses down 11% to $5.2 million compared to $5.8 million in Q1 2024 [7] - Total debt rose to approximately $23.2 million, primarily due to the settlement of a contingent liability, while cash on hand increased to $1.1 million from $1 million at the end of 2024 [9][16] Business Line Data and Key Metrics Changes - The company is focusing on a significant project with a well-known upscale quick service restaurant chain, which is expected to enhance its digital transformation strategy [10][11] - The BCTV project is progressing, with over 300 site installations completed and plans for an additional 200 sites in Q3, potentially generating $3 million in revenue [19][20] - The DigiPoint Media Network is set to deploy approximately 2,000 sites, expected to generate over $4 million in hardware and installation revenue [20] Market Data and Key Metrics Changes - The sports and entertainment vertical shows a high appetite for spending, with multiple proof of concepts (POCs) underway, including three MLB projects [18][19] - The company is engaged in discussions for potential projects in Mexico, indicating a positive outlook for revenue growth in 2026 [61] Company Strategy and Development Direction - The company aims to optimize its capital structure and manage debt while pursuing commercial growth opportunities [10][12] - The introduction of the AdLogic CPM platform is expected to enhance revenue potential, with significant interest from large retail customers [13][33] - The company is focused on enhancing its technology and operational capabilities to support anticipated growth in the second half of the year [22][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue acceleration beginning in Q2 and throughout the second half of the year, with expectations for adjusted EBITDA as a percentage of revenue to rise to 15% by year-end [12][14] - The company remains optimistic about its pipeline of opportunities, despite global trade uncertainties not significantly impacting current projects [28][29] Other Important Information - The company achieved SOC 2 Type 1 compliance and expects to achieve Type 2 compliance by year-end, enhancing its credibility with enterprise customers [21] - The company has revamped its operations and warehouse facilities to increase capacity for processing orders and projects [22] Q&A Session Summary Question: Expectations for screen installs related to the large QSR win - Management expects to begin installations at 20 locations or more per month by the end of Q3, with 600 out of 1,000 locations expressing interest in converting to digital [25][26] Question: Details on delays in the first quarter - Delays were due to three separate projects, not a broad-based issue, and management has seen a reversal in the second quarter [27] Question: Pipeline of large procurements and impact of global trade uncertainty - Management remains optimistic about the quality and size of top opportunities, with no current projects on hold due to tariffs [28][29] Question: Demand for the ad tech solution and its impact - The ad tech market is in early stages, with significant interest from large retail customers, indicating potential revenue growth in 2026 and 2027 [31][33] Question: Insights on the sports and entertainment vertical - The vertical has a high appetite for spending, with many customers looking to upgrade facilities to enhance fan experiences [53][54] Question: Update on the DigiPoint Media Network - The network will utilize the company's entire tech stack, expected to generate incremental revenue and enhance day two services [58] Question: Opportunities in Mexico - Management is optimistic about potential projects in Mexico, including a POC with a top convenience store chain [61]

Financial Data and Key Metrics Changes - The company reported revenue of $11 million for Q4 2024, down from $14.5 million in Q4 2023, with a gross profit of $4.9 million compared to $7.5 million last year [7] - Adjusted EBITDA for Q4 2024 was approximately $500,000, a decrease from $2.8 million in the previous year, with annual recurring revenue (ARR) at a run rate of $16.8 million [7][10] - The company achieved a record annual revenue exceeding $50 million with an adjusted EBITDA margin of 10% for the full year [6] Business Line Data and Key Metrics Changes - The company completed 56 site installations in Q4 at an average sale price of $30,000, with expectations for a moderate increase in installations in the second half of 2025 [18] - The introduction of the AdLogic CPM plus platform is expected to enhance targeting precision and reduce costs for customers, positioning the company as a comprehensive ad tech solution provider [9] Market Data and Key Metrics Changes - The company is experiencing strong demand for its solutions, particularly in the quick-service restaurant and retail sectors, with significant projects in the pipeline [12][16] - The sports and entertainment sector has seen growth, with three MLB projects awarded in Q1 2025 and additional POCs ongoing at various venues [17] Company Strategy and Development Direction - The company aims to accelerate revenue growth in the second half of 2025, driven by better economies of scale and higher margins [10] - The focus is on enhancing customer experience through innovative solutions and expanding the retail media network offerings [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming the current operational challenges and anticipates a strong performance in 2025, despite a weaker Q1 [52] - The company is optimistic about the resolution of contingent liabilities, which will provide financial flexibility and allow a focus on growth [10][11] Other Important Information - The company has settled its contingent liability related to the acquisition of Reflex Systems, involving a $3 million cash payment and a $4 million promissory note [10][11] - The company achieved SOC2 Type one compliance, with expectations to reach Type two certification by year-end, enhancing its credibility with enterprise customers [19] Q&A Session Summary Question: Commentary on customer conversations regarding the frozen pipeline - Management noted that customers are beginning to move projects forward after a period of stagnation, with expectations for several projects to finalize soon [21][22] Question: Impact of tariffs on business - Management indicated that while there are concerns about tariffs, most components are domestically sourced, and only slight increases in costs are expected [24] Question: Adoption of the new AdLogic platform by existing customers - Customers are embracing the AdLogic platform as it enhances their digital operations, leading to potential margin improvements [34] Question: Visibility and flexibility from the new ERP system - The new ERP system is expected to provide significant cost management benefits and improve operational metrics [37][38] Question: Progress with channel partners - The company is actively recruiting and signing new channel partners, with demand for licenses increasing [42] Question: Details on the contingent consideration settlement - The settlement includes a six-year warrant with a strike price of $3.25, totaling approximately $800,000 [48] Question: Expectations for revenue growth in 2025 - Management expects year-over-year revenue growth in 2025 to exceed 2024 levels, with adjusted EBITDA profitability anticipated in Q1 [52][53] Question: Dynamics of customer adjustments impacting ARR - Two large customers made adjustments that led to a temporary decline in ARR, but management expects to recover this revenue in 2025 [101][102] Question: Future cash flow dynamics on major projects - Cash flow can vary significantly based on whether projects are privately or publicly funded, with deposits typically required for private projects [78] Question: Clarification on adjusted EBITDA margin expectations - Management aims to achieve a 15% adjusted EBITDA margin by the end of the year, with expectations for revenue growth to support this target [81][84]