Financial Data and Key Metrics Changes - Revenue in Q3 was approximately $319 million, reflecting an increase of 42% year-over-year on an as-reported basis, driven primarily by the impact of the acquisition [15] - On a pro forma basis, there was a year-over-year decline of 15% in Q3 [15] - Ex-tech gross profit in the quarter was $131 million, an increase of 119% year-over-year on an as-reported basis [19] - Adjusted EBITDA for Q3 was $19 million, with adjusted free cash flow being a use of cash of $24 million in the quarter [20][21] Business Line Data and Key Metrics Changes - Connected TV (CTV) revenue grew around 40% in Q3 and is projected to reach $100 million for the year [18] - The CTV business focuses on three key pillars: on-screen placements, proprietary formats, and cross-screen activations [9] - Cross-sell revenue showed notable inflection, with October revenue and bookings growing by more than 55% month-over-month [11] Market Data and Key Metrics Changes - The U.S., U.K., and France, which represent about 50% of revenue, are driving headwinds for the legacy Teads business [16] - The DACH region is noted as neutral or growing, contrasting with the declines in the key markets [16] - Page views on premium publishers declined by 10% to 15%, attributed to increased adoption of AI summaries and volatility in programmatic supply [39] Company Strategy and Development Direction - The company is focusing on three main dimensions: portfolio optimization, operational efficiency, and cost optimization [6][7] - The growth strategy centers on connected TV, deepening relationships with agencies, expanding performance campaigns, and algorithmic advancements [14] - A detailed three-year outlook and roadmap will be shared at an upcoming Investor Day in March [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in integration and operational changes taking longer than anticipated, but remains confident in the long-term vision [14] - The company is committed to generating positive cash flow and improving its cost structure [21] - Visibility remains challenged due to shorter planning cycles from advertisers, impacting guidance for Q4 [22] Other Important Information - The company welcomed Molly Spielman as the new Chief Commercial Officer, bringing extensive experience from Criteo and Oracle Advertising [8] - The company recognized $4 million of acquisition and integration-related costs and $1 million of restructuring charges in the quarter [19] Q&A Session Summary Question: Can you unpack the headwinds in the quarter? - Management noted a combination of factors including distractions from the merger and execution challenges taking longer than expected, with some weakness in key geographies [23][24] Question: What is your willingness to protect free cash flow? - The company is committed to generating positive free cash flow and has a transformational plan to focus on key areas [28] Question: Can you provide insights on the loss of several big clients? - The loss was attributed to changes in client business models and the company's strategic decisions around quality, impacting the DSP business [34][36] Question: What are the expectations for free cash flow going forward? - The company expects to be around break-even for the year, with a focus on cash flow optimization and improvements in EBITDA [42][43] Question: What are the assumptions for Q4 guidance? - Guidance reflects caution due to visibility challenges and expected impacts from headwinds in the DSP business [45][46]

Core Insights - Teads Holding Co. reported significant revenue growth in Q3 2025, with revenue reaching $318.8 million, a 42% increase from $224.2 million in the same period last year, primarily driven by acquisitions and favorable foreign currency effects [2][10] - The company experienced a net loss of $19.7 million in Q3 2025, a substantial decline from a net income of $6.7 million in Q3 2024, attributed to acquisition-related costs and restructuring charges [2][10] - Teads is focusing on improving profitability and cash flow generation following a restructuring of its go-to-market organization [3][4] Financial Performance - Revenue for the nine months ended September 30, 2025, was $948.2 million, up 45% from $655.3 million in the prior year [2] - Gross profit for Q3 2025 was $105.7 million, a 116% increase from $48.9 million in Q3 2024, with a gross margin improvement to 33.2% from 21.8% [2][10] - Adjusted EBITDA for Q3 2025 was $19.2 million, a 66% increase from $11.5 million in Q3 2024, indicating improved operational efficiency [2][10] Business Highlights - Connected TV (CTV) revenue grew approximately 40% year-over-year in Q3 2025, with the launch of CTV Performance globally [5][6] - Cross-selling revenue increased by 67% sequentially from Q2 to Q3 2025, demonstrating the effectiveness of the company's integrated platform [5][6] - The company plans to host an Investor Day in March 2026 to further engage with stakeholders [5] Guidance and Future Outlook - For Q4 2025, Teads expects Ex-TAC gross profit to be between $142 million and $152 million, and adjusted EBITDA to range from $26 million to $36 million [11][15] - The company remains confident in the strategic benefits of its recent merger and the potential of its cross-screen advertising platform [4][3]

Core Insights - Teads has launched a beta version of CTV Performance, a solution that measures connected TV (CTV) campaign effectiveness by linking exposure to site visits, leads, and sales, marking a significant advancement in accountability for CTV advertising outside the US [1][2][3] Group 1: Product Features - CTV Performance allows advertisers to track metrics beyond traditional measures like impressions and completion rates, providing insights into direct actions such as site visits and sales linked to CTV exposure [2][3] - The solution is designed to complement Teads' existing omnichannel offerings, enabling brands to utilize premium streaming environments for both awareness and measurable mid-funnel outcomes [2][3] Group 2: Market Impact - The launch aims to bridge the gap between brand awareness and performance, democratizing CTV as a channel that can deliver both attention and measurable outcomes [3] - A recent campaign for Men's Wearhouse demonstrated the effectiveness of CTV Performance, resulting in over 41,000 site visits and more than 50,000 incremental store visits, showcasing CTV's potential in driving measurable results [3] Group 3: Availability and Expansion - CTV Performance is currently in beta across key global markets, including the US, EU5, and APAC, with plans for broader rollout and additional creative formats in the future [4]