Financial Data and Key Metrics Changes - The company achieved revenue of $110.5 million, representing an 8% year-over-year growth [16] - Contribution ex-TAC was $51 million, up 7% year-over-year, maintaining a healthy 46% margin [16] - Adjusted EBITDA increased 63% year-over-year to $12.1 million, reflecting improved operational leverage [15][22] - Non-GAAP net income was $12.5 million, resulting in a non-GAAP diluted earnings per share of $0.28, a 22% year-over-year increase [23] Business Line Data and Key Metrics Changes - CTV revenue grew 75% year-over-year, driven by strong demand for advanced formats [18] - Digital Out-of-Home revenue increased by 26% year-over-year, reaching 22% of total revenue [20] - Retail media revenue was up 40% year-over-year, indicating strong momentum in this vertical [20] - Web revenue declined by 11% year-over-year due to lower advertiser appetite for standard display and video formats [21] Market Data and Key Metrics Changes - CTV and Digital Out-of-Home combined represented 37% of total revenue, up from 28% in the same quarter last year [20] - The retail media market is projected to expand at a 14.7% CAGR through 2029, presenting significant growth opportunities [20] Company Strategy and Development Direction - The company is focused on becoming the platform of choice for modern CMOs, unifying media, data, and outcomes through the Perion One strategy [5][6] - New products like Outmax and SODA are designed to enhance performance-driven advertising and optimize monetization for publishers [4][9] - The company is expanding its share repurchase program to $200 million, reflecting confidence in long-term value [3][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet guidance for Q4, indicating no slowdown in advertiser spending [31] - The company aims to capture more market share in 2026 and beyond, with expectations for continued growth in core areas [38][39] - The operational efficiency initiatives are expected to fully materialize in 2026, supporting sustained growth [15][23] Other Important Information - The company has a strong cash position of $315 million, providing financial flexibility for growth and capital allocation [24] - The share buyback program has repurchased a cumulative total of 10.4 million shares for $94.2 million, underscoring confidence in the company's value proposition [24][25] Q&A Session Summary Question: What are the drivers behind the CTV strength in Q3? - Management noted that performance CTV and the new algorithm Outmax are driving significant growth, with a healthy pipeline of deals [31] Question: Why is the Q4 guidance range wide? - Management indicated that the quarter is trending in line with expectations, and they feel confident about delivering within the guidance range [31][32] Question: How is the web business trending relative to expectations? - Management stated that the web business performed as expected, with declines primarily due to the exit from low-margin activities [51] Question: What is the outlook for 2026 growth? - Management did not provide specific guidance for 2026 but expressed confidence in outperforming market expectations [38] Question: How is the company using AI internally? - Management highlighted that AI is integral to R&D and operational efficiency, with a focus on reducing manual work through automation [60] Question: How much of the web decline is structural versus self-inflicted? - Management clarified that approximately 13% of the web decline was due to strategic actions taken, suggesting a potential for growth in the future [64]