Financial Data and Key Metrics Changes - Revenue in Q2 was approximately $343 million, reflecting an increase of 60% year over year on an as-reported basis, primarily driven by the impact of the acquisition [20] - Adjusted EBITDA for Q2 was $27 million, representing an increase of nearly 2.5 times compared to Q1 [24] - Free cash flow was $19 million in the quarter, with adjusted free cash flow at $22 million after excluding transaction costs [24] Business Line Data and Key Metrics Changes - The US market experienced a year-over-year decline of more than 20%, which was identified as a significant headwind [9] - CTV business saw 80% year-over-year growth in Q2 on a pro forma basis, indicating strong demand in this segment [10] - The retail media front announced a partnership to activate performance campaigns, aiming to grow presence in retail media [11] Market Data and Key Metrics Changes - The company noted softness in key verticals such as consumer goods, automotive, and luxury goods, primarily due to tariff-related uncertainty and softer demand in certain geographies [21] - Despite challenges in the US, other markets in Europe have shown growth, indicating a mixed performance across regions [48] Company Strategy and Development Direction - The company is focused on executing integration decisively and making critical organizational changes to improve effectiveness [5] - Aiming to deliver $40 million in cost savings for 2025, with a full-year run rate of $60 million expected in 2026 [9] - The strategic rationale behind the merger is to build a go-to platform for advertisers seeking scaled, high-quality performance on the open Internet [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic changes made and the potential for market share gains and growth in the second half of the year [19] - There is an expectation of clear momentum building into Q4, despite challenges faced in Q3 [27] - Management is closely tracking leading indicators and believes that the changes implemented will positively impact revenue trends [35] Other Important Information - The company is accelerating investment in its next-generation advertising platform, Teams Ad Manager, expected to launch in H1 2026 [15] - The company has made a deliberate reduction in publishers that do not meet quality standards, resulting in a 5% year-over-year reduction in legacy Outbrain revenues [13] Q&A Session Summary Question: Why not spend all free cash flow on buying in debt? - Management indicated that they used what they were comfortable with in terms of excess cash and are open to more in the future [33] Question: How much of the US decline is structural? - Management noted that the issues are within their control and are tracking leading indicators that are trending up, indicating potential recovery [35] Question: Will the company cut more expenses if top-line growth does not materialize? - Management is currently focused on growth and believes they have the right cost structure to achieve this [38] Question: What is the confidence level for Q4? - Management expressed confidence in the changes made and the potential for improved performance in Q4 based on leading indicators [48] Question: How is the company addressing the impact of AI on traffic? - Management acknowledged the risk but noted that they are continuously improving monetization and tracking the situation closely [55]