Core Insights - Bill Ackman aims to create a "modern Berkshire Hathaway" with Howard Hughes Holdings, drawing inspiration from Warren Buffett's successful investment strategy [2][3] - Ackman's hedge fund, Pershing Square, has outperformed the S&P 500 by 24 points over the last decade, indicating a strong investment track record [3] Company Summaries Alphabet - Alphabet constitutes 19% of Ackman's portfolio and is the largest ad tech company globally, with search advertising accounting for half of its revenue [4][8] - The company has adapted to generative AI by enhancing Google Search with AI features, leading to increased commercial queries, particularly among younger users [5][8] - Google Cloud revenue has accelerated due to demand for AI services, with the development of custom AI chips (TPUs) and the Gemini family of large language models [6][7] - Analysts expect Alphabet's earnings to grow at 16% annually over the next three years, making its current valuation of 32 times earnings reasonable [8][9] Uber - Uber represents 20% of Ackman's portfolio and operates the largest ride-sharing and one of the largest delivery platforms, benefiting from its expansion into grocery and retail [10] - The company estimates that autonomous vehicles could push the U.S. ride-sharing market to $1 trillion, with partnerships with 20 companies, including Alphabet's Waymo for robotaxi services [11][12] - Uber's collaboration with Nvidia aims to advance autonomous driving, targeting 100,000 robotaxis by 2027 and collecting extensive data for development [12][13] - Wall Street anticipates Uber's earnings to increase at 31% annually over the next three years, making its current valuation of 11 times earnings appear attractive [14]

Summary of Taboola.com Conference Call Company Overview - **Company**: Taboola.com (NasdaqGS:TBLA) - **Industry**: Performance Advertising - **Core Business**: Taboola operates as a performance advertising platform, focusing on placing ads outside of traditional search and social media environments, leveraging data from a wide range of publishers and users. Key Points and Arguments Business Model and Revenue Generation - Taboola generates over 90% of its revenue from cost-per-click advertising, meaning revenue is only earned when a consumer clicks on an ad [7][8] - The company has long-term exclusive agreements with approximately 11,000 publishers, which allows it to gather first-party data and effectively target ads [2][6] - The average traffic acquisition cost (TAC) is about 65% of revenue, with the remaining 35% representing XTAC (gross profit), which is the primary measure of the company's revenue growth [7][9] New Platform: Realize - In February 2025, Taboola launched a new advertising platform called Realize, transitioning from a native advertising model to a more comprehensive performance advertising model [10][12] - Realize allows for various ad formats, including display and vertical video, and includes new features like Predictive Audiences to enhance advertiser success [11][12] - The transition to Realize was a significant investment, aimed at improving advertiser performance and increasing ad spend [12][14] Growth and Market Position - Taboola is optimistic about returning to double-digit growth, driven by new platform features, a focus on ideal customer profiles, and increased marketing spend [16][18] - The company estimates a $10 billion opportunity in performance budgets currently going to other ad tech players, which it aims to capture [26][27] - Taboola's unique data and technology position it favorably against traditional demand-side platforms (DSPs) [26][28] Market Stability and Competition - The advertising market is currently stable, with performance advertising showing resilience amid economic uncertainties [19][20] - Taboola's competitive strategy includes maintaining long-term publisher relationships and expanding into new ad formats [28][29] Taboola News Product - Taboola News, akin to Apple News for Android devices, is a growing segment that provides unique supply opportunities and is expanding its global footprint [40][41] - The product is expected to grow faster than the overall business, with potential for more touchpoints and device partnerships [42] Future Opportunities and Challenges - The transition from native to performance advertising is seen as a significant growth opportunity, with the potential to tap into a $50 billion market [70][71] - The company is focused on enhancing its product features to compete with industry leaders like Facebook and Google [45][46] - There is a need to reposition the brand in the minds of advertisers to gain trust for broader ad campaigns beyond native advertising [74][75] Impact of AI and LLMs - Taboola is leveraging generative AI tools to enhance productivity and improve advertiser onboarding processes [66][68] - The company has low exposure to search traffic, with only about 5% of US traffic coming from search, which mitigates risks associated with the rise of LLMs in search [59][61] Additional Important Insights - Taboola is cautious about entering the long tail of the internet due to quality concerns and focuses on mid-tail and premium supply [39][40] - The company is exploring innovative products like Deeper Dive, which enhances user engagement on publisher sites through AI-driven interactions [47][51] This summary encapsulates the key insights from the conference call, highlighting Taboola's strategic direction, market positioning, and growth opportunities in the performance advertising landscape.

Teresa Ribera, the European Union’s competition chief, said regulators are examining a “serious” offer from Google to fix alleged antitrust violations linked to its ad tech business that sparked a fine of nearly €3 billion ($3.5 billion). https://t.co/NqlRuaQ2lW ...

Core Viewpoint - Google has proposed changes to its ad tech products and search results in an attempt to resolve a $3.4 billion penalty threat from the European Union, while still planning to appeal the EU's decision from September 2025 [1][3][7] Group 1: Proposed Changes - Google plans to provide publishers with options to set different minimum prices for bidders on its Ad Manager platform [2] - The company aims to enhance interoperability across its ad tech services to offer more flexibility to publishers and advertisers [2] Group 2: Ongoing Disputes - Despite the proposed changes, Google maintains its disagreement with the EU's September decision and intends to appeal [3] - The EU antitrust regulator has accused Google of abusing its market dominance by favoring its own ad exchanges [3] Group 3: Potential Penalties - Google faces the risk of penalties or fines in the coming months due to alleged antitrust violations [4] - The company is seeking a balanced solution to close the EU investigations while acknowledging the risks involved [4] Group 4: Industry Reactions - A spokesperson expressed concerns that changes to Search may prioritize the interests of a few intermediaries over European businesses [5] - EU competition chief Teresa Ribera suggested that a true level playing field would require Google to divest parts of its ad tech arm [6] Group 5: Financial Impact - Alphabet's stock closed 2.84% lower at $278.57 following the news, but saw a slight recovery in after-hours trading at $279.40 [7]

Google has offered to tweak its ad tech products to settle a EU order after a near-€3 billion antitrust penalty, stopping short of a partial breakup watchdogs favor https://t.co/hwTa6a6dlE ...

Core Insights - The Trade Desk (TTD) stock has decreased by 15.6% over the past month, closing at $43.26, significantly lower than its 52-week high of $141.53 and closer to its 52-week low of $41.77 [1] - Revenues for Q3 2025 increased by 18% year over year to $739 million, surpassing consensus estimates by 3% and exceeding the company's own expectations of at least $717 million [1][9] - Adjusted EBITDA rose to $371 million from $257 million year over year, with adjusted EPS at 45 cents, exceeding estimates and up from 41 cents in the previous year [2] Revenue Growth Drivers - Connected TV (CTV) is identified as the fastest-growing segment in the digital ad market, with management expecting decision-based CTV buying to become the default model in the future [3] - The company's AI-powered platform, Kokai, is utilized by 85% of clients and has shown significant performance improvements compared to previous models, enhancing its competitive edge [4] - Initiatives like OpenPath and OpenAds are designed to connect advertisers directly with publishers, improving transparency and efficiency in the supply chain [5] Market Opportunities - Approximately 60% of TTD's total addressable market is outside the United States, with international business currently accounting for about 13% of total revenues, indicating potential for long-term growth [6] - The company has a strong cash position of $1.4 billion with no debt, providing a buffer against macroeconomic volatility [7] Stock Performance and Valuation - TTD repurchased $310 million worth of stock in Q3 and has approved a new buyback plan of $500 million [8] - The stock is currently trading at a premium valuation, with a price/book multiple of 8.13X compared to the industry average of 7.69X [16] Competitive Landscape - The competitive environment is intensifying, with major players like Meta, Apple, Google, and Amazon dominating the ad tech space, which could pressure TTD's market position [13] - Smaller competitors like Magnite and PubMatic are also expanding their presence in CTV and retail media, increasing competition for ad dollars [14] Cost and Profitability Challenges - Total operating costs surged by 17% year over year to $457 million, driven by investments in platform capabilities, which may compress margins if revenue growth slows [15] - Macro volatility poses a significant concern for TTD, as worsening conditions could lead to reduced programmatic demand and pressure on revenue growth [12] Conclusion - Given the solid fundamentals and near-term headwinds, TTD is currently rated as a hold, suggesting that existing investors may retain their positions while new investors should wait for a more favorable entry point [18]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 grew 11% year-over-year to $189 million, within guidance range [4][25] - Adjusted EBITDA margin reached 35%, exceeding expectations and demonstrating scalability [4][30] - Total advertiser revenue grew 10%, driven by increased volumes, while media transactions measured increased 12% year-over-year [26][28] - Adjusted EBITDA was approximately $66 million, reflecting strong profitability and cash generation [30][34] Business Line Data and Key Metrics Changes - Activation revenue grew 10% year-over-year, with ABS accounting for 54% of activation revenue and growing 12% [27][28] - Non-ABS activation revenue grew 8%, driven by demand for social activation solutions [28] - Measurement revenue grew 9% year-over-year, with social measurement accounting for 48% of total measurement revenue [28] Market Data and Key Metrics Changes - Social activation is growing at 20%, with strong early adoption of DV Authentic Advantage and Meta Pre-Bid solutions [9][10] - CTV measurement volumes grew 30% year-over-year, reflecting increased advertiser demand for transparency [17] - Supply-side revenue grew 27% in Q3, driven by growth on existing platforms and new partnerships [29] Company Strategy and Development Direction - The company aims to grow social, streaming TV, and AI verification solutions from under 30% of total revenue to approximately 50% [19][35] - Focus on innovation through AI and automation to enhance product offerings and operational efficiency [6][23] - Strategic partnerships with global leaders and expansion into new markets are key to driving future growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted softer retail budgets impacting growth but highlighted strong performance in other core verticals [4][25] - The company expects continued double-digit revenue growth and strong profitability for the full year 2025 [30][34] - Future growth will be driven by the adoption of new solutions in social, CTV, and AI [39][52] Other Important Information - The company repurchased 3.3 million shares for $50 million in Q3, with $90 million remaining for additional repurchases [31][32] - Capital expenditures increased to approximately $12 million in Q3, reflecting investments in new solutions [30][32] Q&A Session Summary Question: Growth drivers for next year - Management indicated a base case scenario of 10% growth for 2026, driven by new solutions in social, CTV, and AI [38][39] Question: Softness in retail - The softness is broad-based across the retail vertical, impacting a large share of top spenders [44] Question: Impact of competitors leaving the market - The departure of less scaled competitors creates a more advantageous position for the company to invest and grow [49][50] Question: Client base and SMBs in CTV - The company sees opportunities in attracting SMBs into the CTV space, leveraging existing platforms for growth [56] Question: Scaling of Meta Pre-Bid and DV Authentic Advantage - Both products are expected to scale significantly, with strong early adoption and positive initial results [58][59]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $739 million, representing an 18% year-over-year growth, and a 22% growth when excluding political spend from the previous year [39] - Adjusted EBITDA for the quarter was approximately $317 million, or about 43% of revenue [39] - Adjusted net income for Q3 was $221 million, or $0.45 per diluted share [41] - Free cash flow for Q3 was $155 million, with a strong cash and liquidity position of about $1.4 billion in cash and short-term investments at the end of the quarter [42] Business Line Data and Key Metrics Changes - CTV (Connected TV) continues to be the largest and fastest-growing channel, representing around 50% of the business in Q3 [39] - Mobile accounted for a low 30% share, display for a low double-digit share, and audio for around 5% [39] - The company is seeing strong growth in retail media and significant adoption across various verticals [5] Market Data and Key Metrics Changes - North America represented 87% of the business, while international markets accounted for about 13% [40] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [40] - Strong growth was noted in verticals such as medical health, automotive, and technology [40] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [31][63] - Investments are being made in AI and product innovations to drive growth and improve client performance [38][39] - The company aims to capture a larger share of the $1 trillion advertising TAM as more dollars shift to programmatic [36] Management's Comments on Operating Environment and Future Outlook - The management describes the current macro environment as a "tale of two cities," with some brands facing pressure from tariffs and inflation, while others are experiencing strong momentum [72] - The company is optimistic about the potential of the open internet and believes that independent DSPs will capture the majority of open internet spend [28] - The focus remains on building a more accountable and metrics-driven culture to support long-term growth [66] Other Important Information - The company has repurchased nearly $2 billion through its share repurchase program since the first authorization in 2023 [42] - New product features and upgrades are expected to significantly contribute to growth in the coming years [27] Q&A Session Summary Question: Clarification on Amazon as a competitor and the evolving competitive environment - Management acknowledges Amazon and Google as significant players but emphasizes that their focus is primarily on owned and operated inventory, while The Trade Desk focuses on decisioned, data-driven buying across the open internet [49][51] Question: Areas for impact in the next couple of years - The CFO highlights the importance of disciplined resource allocation and a metrics-driven approach to drive growth and ROI [54][55] Question: Broader advertising and macro environment trends for 2026 - Management notes strong momentum across the business but acknowledges pressures in certain sectors due to external factors like tariffs and inflation [72]

Financial Data and Key Metrics Changes - Q3 GAAP revenue was $27 million, representing a 9% increase quarter over quarter and an 11% increase year over year [6][15] - Adjusted EBITDA loss was $12 million, a 3% decrease quarter over quarter and a 15% increase year over year [6][16] - Paying MAU reached 155,000, up 6% quarter over quarter and 28% year over year [6][15] Business Line Data and Key Metrics Changes - The launch of "Solitaire Skills" as an owned and operated title is showing early promise and serves as a testing ground for new features [8] - Aarki's ad tech business experienced accelerating revenue growth, supported by new AI-driven product launches [8][10] - R&D expenses increased by 15% year over year to $5 million, while sales and marketing expenses decreased by 10% year over year to $17 million [15][16] Market Data and Key Metrics Changes - The competition platform showed stability, contributing to the overall revenue growth despite a typically softer seasonal period [6][10] - Aarki's net revenue increased by more than 100% year over year, indicating strong growth in the ad tech market [10] Company Strategy and Development Direction - The company is focused on enhancing player and developer engagement, operational efficiency, and a path to profitability [9][10] - The Fair Play initiative aims to protect players and maintain fair competition, with ongoing litigation against competitors for alleged bot usage [10][11] - The company is exploring growth opportunities beyond gaming into e-commerce and interactive entertainment [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress across both Skillz and Aarki, highlighting the potential for long-term growth [12][13] - The company is committed to achieving compliance with New York Stock Exchange listing standards and expects to file necessary reports by December 17, 2025 [4][16] Other Important Information - The company is working to complete its financial statements for previous quarters and is under scrutiny for compliance with listing standards [3][4] - The balance sheet remains healthy with $213 million in cash and $129.7 million in total debt principal outstanding [16] Q&A Session Summary - The Q&A session was concluded without any specific questions being recorded, indicating a focus on the presentation rather than audience inquiries [17]

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 [20][24] - 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 [22][24] - Free cash flow was $67 million in Q3, up 74% year-over-year, demonstrating consistent upward momentum in adjusted EPS and free cash flow per share [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 [20][21] - Retail media revenue was $67 million, with contribution ex-TAC growing 11% at constant currency to $66 million, up 34% on a two-year stack [22] - Media spend in retail media grew 26% year-over-year, with over 4,100 brands participating [13][22] Market Data and Key Metrics Changes - Media spend growth was observed in Asia-Pac and EMEA, while trends in the U.S. were softer but improving [21] - Travel was the fastest-growing vertical, up 24%, while fashion saw an 11% decline [21] 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 [6][11] - Focus on agentic AI as a major shift in the industry, with plans to integrate AI-driven capabilities into shopping experiences [7][9] - The company announced plans to re-domicile to Luxembourg and replace its current ADS structure with a direct listing on Nasdaq, aimed at enhancing capital management flexibility [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to capture shifts in commerce and advertising, anticipating sustained growth and long-term value for shareholders [18][31] - The company expects contribution ex-TAC to grow 3%-4% year-over-year at constant currency for 2025, with adjusted EBITDA margin projected at approximately 34% [27][28] Other Important Information - The company is investing in organic growth, value-enhancing acquisitions, and returning capital to shareholders, with $11 million allocated to share repurchases in Q3 [25][26] - The company is focused on building a strong operational fitness to enable greater scale and efficiency, including driving productivity gains through AI-powered tools [23] Q&A Session Summary Question: Client response to agentic products and CTV growth opportunities - Management highlighted threefold opportunities in agentic products, including internal tools for audience creation and partnerships with AI platforms [34][35] - Investments in CTV are focused on supply-side integrations and demand-side tactics to enhance performance [38][39] 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 [42][43] Question: Retail media trends and new client ramp-up - Management noted that most Q3 activity was related to existing clients, with new wins starting to ramp up, including the DoorDash partnership [60][61] Question: Adjusted EBITDA beat and re-domicile implications - The beat in adjusted EBITDA was attributed to top-line growth and operational leverage, with no material costs expected from the re-domicile [64][66] Question: Investments required for AI products and retail media headwinds - Management indicated that investments for AI products are within normal scaling, with a slower ramp-up of new clients expected in retail media [70][72]