Core Insights - The Trade Desk, Inc. (TTD) is focusing on the retail media space to enhance its performance, with Connected TV (CTV) being central to its growth strategy, where video ads account for a high-40s percentage of spending [1][9] - Retail media encompasses digital advertising space, retail data assets, and in-store opportunities provided by retailers, allowing advertisers to connect ad spend with real-world sales [2] - TTD's strategic partnerships with Walmart DSP, Roundel, and Albertsons Media Collective are expected to drive growth, with brands finding significant value in these collaborations [3][9] Retail Media Expansion - TTD's retail data marketplace provides access to purchase data, enabling advertisers to reach high-intent consumers across various platforms [2] - The Kokai platform enhances advertisers' ability to leverage third-party data, achieving 24% lower cost per conversion and 20% lower cost per acquisition, positioning retail media as a potential high-growth engine for TTD [4][9] Competitive Landscape - Criteo S.A. (CRTO) is a significant player in retail media, with a robust AI-driven Performance Media business and a full-stack Commerce Media Platform, transitioning from legacy retargeting to high-growth areas [5] - Criteo's media spend reached $4.3 billion over the last 12 months, with Retail Media revenues growing 17% year-over-year in Q1 2025, and partnerships with 70% of the top 30 U.S. retailers [6] - PubMatic (PUBM) is also expanding in retail media, with a projected CAGR of 8.4% for the global retail media platform market from 2024 to 2030, indicating strong growth potential in the sector [7] CTV Performance - TTD's CTV revenues surged over 50% year-over-year, with omni-channel video revenues growing 20%, representing 40% of total revenues [8]

Financial Performance - Criteo's Q1 2025 Contribution ex-TAC reached $264 million, a 7% year-over-year increase[18] - The adjusted EBITDA margin was 35%, exceeding the company's guidance[18] - Revenue was $451 million[33] - Net income was $40 million[33] - Non-GAAP Diluted EPS was $1.10, a 38% increase[33] - Free cash flow was $45 million, a 367% increase[33] Segment Performance - Retail Media media spend increased by 21% year-over-year, reaching $335 million[21, 36] - Retail Media Contribution ex-TAC increased by 18% year-over-year, reaching $59 million[36] - Performance Media Contribution ex-TAC increased by 4% year-over-year, reaching $206 million[19, 36] Retail Media Leadership - Criteo partners with over 200 retailers, including 70% of the top 30 U S retailers and 50% of the top 30 EMEA retailers[21]

Financial Performance - Criteo reported Q1 2025 revenue of $451 million, a slight increase of 0.3% year-over-year, with a gross profit of $237 million, reflecting a 9% increase [2][7][10] - Net income surged to $40 million, up 367% from $9 million in Q1 2024, resulting in a diluted EPS of $0.66, compared to $0.12 in the previous year [2][11][12] - Adjusted EBITDA for the quarter was $92 million, a 30% increase year-over-year, with an adjusted diluted EPS of $1.10, up from $0.80 [2][12][26] Cash Flow and Liquidity - Cash flow from operating activities increased significantly to $62 million, compared to $14 million in Q1 2024, while free cash flow reached $45 million, a substantial rise from $1 million [2][14][40] - As of March 31, 2025, the company had $329 million in cash and marketable securities, with total financial liquidity of approximately $810 million [9][15] Share Repurchase and Corporate Governance - The company deployed $56 million for share repurchases in Q1 2025 [2][8] - Frederik van der Kooi was appointed as Chairperson of the Board of Directors, and Stefanie Jay was nominated for election to the Board [4] Segment Performance - Retail Media revenue grew by 17% year-over-year, or 18% at constant currency, while Performance Media revenue decreased by 2%, but increased by 1% at constant currency [18][44] - Retail Media Contribution ex-TAC increased by 17% year-over-year, driven by new client integrations and platform strength [8][18] Market Outlook - The company anticipates low-single-digit growth in Contribution ex-TAC at constant currency for the upcoming quarters, with an adjusted EBITDA margin expected to be around 33% to 34% [27][20] - A significant client in the Retail Media segment plans to reduce the scope of services starting November 1, 2025, which may impact future revenue [19]