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]

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]