Financial Data and Key Metrics Changes - In 2025, the company reported revenue of $1.9 billion, with contribution ex-TAC growing 3.5% at constant currency to $1.2 billion, benefiting from a $14 million tailwind from foreign currencies [22][23] - Adjusted EBITDA margin was strong at 35%, supported by operational leverage and productivity improvements, with free cash flow of $211 million, up 16% year-over-year [23][28] - For Q4 2025, revenue was $541 million, with contribution ex-TAC at $330 million, reflecting a year-over-year tailwind from foreign currencies of $8 million [23][24] Business Line Data and Key Metrics Changes - Performance media revenue was $1.7 billion, with contribution ex-TAC at $915 million, up 4% at constant currency, while retail media revenue was $264 million, with contribution ex-TAC at $260 million, up 2% year-over-year at constant currency [22][23] - The Commerce Growth solution within performance media grew by 5%, while ad tech services declined by 3% [22] - Retail media contribution ex-TAC grew 16% when excluding two clients with scope changes, indicating strong underlying growth [22][24] Market Data and Key Metrics Changes - Travel was the fastest-growing vertical in performance media, with growth accelerating to 37%, while department stores and fashion saw declines of 13% and 12%, respectively [24][25] - Media spend growth accelerated in EMEA, while trends were softer in the U.S. and Asia Pacific [25] - Auction-based display in retail media saw a 65% increase in media spend this quarter, indicating strong adoption and performance [19] Company Strategy and Development Direction - The company is focusing on commerce intelligence and AI decisioning to simplify operations and scale as a commerce AI platform [5][8] - Key strategic priorities include leading in agentic commerce, scaling the AI-powered performance engine, and reinforcing retail media leadership [8][12] - The company aims to optimize performance at scale through proprietary commerce intelligence and AI decisioning, with a focus on self-service and cross-channel activation [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's potential beyond current low growth expectations for 2026, emphasizing the importance of agentic commerce as a growth opportunity [8][21] - The company anticipates a flat to 2% growth in contribution ex-TAC for 2026, with underlying growth expected to be in the high single digits when excluding client scope reductions [29][30] - Management highlighted the importance of disciplined execution and capital allocation to enhance shareholder value [21][35] Other Important Information - The board increased the share buyback authorization to up to $200 million, reflecting confidence in the business's value [21][29] - The company is progressing with a redomiciliation to Luxembourg and plans to pursue a further redomiciliation to the U.S. to broaden access to capital markets [34][35] Q&A Session Questions and Answers Question: Can you discuss the prospects for the AI recommendation service? - Management indicated that partnerships are being broadened to enhance product recommendations, emphasizing the need for high-quality recommendations to compete effectively [39][40] Question: What is the impact of department store weakness? - Management noted that department stores are down 13%, with ongoing headwinds expected to continue into 2026 [43] Question: How is retail media growth expected to progress throughout the year? - Management expects growth to be front-loaded, with Q1 and Q2 more impacted by client scope changes, but anticipates a ramp-up in the second half of the year [46][49] Question: What is the pricing model for new AI initiatives? - Management explained that monetization opportunities vary, with a take rate model for retail and potential participation in LLM monetization models as they develop [72][73]