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- **Revenue Growth**: Q3 revenue $470M, media spend +4% YoY. PM and RM drive growth, with 85% of spend outside desktop.
- **AI Innovation**: Commerce GO adoption doubles QoQ, AI partnerships test sponsored recommendations in agents.
- **CTV Expansion**: CTV ROI comparable to social, with 35% of GO campaigns on social. Scaling through Commerce Grid and Demand solutions.
- **Retail Media Momentum**: Media spend +26% YoY, auction-based display at 12% of RM. Google Search Ads API targets $172B addressable spend.
- **Financial Strength**: Adjusted EBITDA $105M (36% margin), free cash flow $67M. 2025 EBITDA margin 34%, 2026 cautious due to RM headwinds.
- **Strategic Moves**: Redomiciliation to Luxembourg to simplify capital management. New Chief Customer Officer to enhance client retention.

**【CEO Summary Section】**
- **Revenue Growth and Strategy**: Q3 revenue of $470M, with media spend up 4% YoY. CEO highlights shift to a multichannel platform, with 85% of media spend outside desktop display. Performance Media (PM) and Retail Media (RM) are key growth engines.
- **AI and Agentic Innovations**: Launch of Commerce GO, a self-service AI platform, driving 6% YoY contribution growth. Testing AI partnerships for sponsored recommendations in agents, with a focus on integrating product data into AI responses.
- **CTV Expansion**: CTV campaigns show strong ROI (e.g., 50% lift in transactions for luxury brand), with plans to scale through Commerce Grid and Demand solutions. PM now accounts for 35% of GO campaign revenue on social.
- **Retail Media Momentum**: Media spend up 26% YoY, driven by auction-based display (12% of RM) and partnerships with Google, Miracle, and Microsoft. New API integration with Google Search Ads 360 targets $172B addressable spend.
- **Strategic Moves**: Announced redomiciliation to Luxembourg to simplify capital management and expand shareholder base. Hired Chief Customer Officer to enhance client retention.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EBITDA of $105M (36% margin), up 28% YoY. Free cash flow of $67M, up 74% YoY. Non-GAAP EPS of $1.31, beating expectations. Strong cost control (flat OpEx YoY) and AI-driven productivity gains.
- **Performance Media (PM)**: Contribution ex-TAC up 5% YoY, driven by Commerce GO and AI enhancements. Ad Tech Services drag limited growth by 100bps. Social media spend now 35% of PM GO campaigns.
- **Retail Media (RM)**: Contribution ex-TAC up 11% YoY, with 4,100+ brands and 235 retailers. Off-site video adoption growing, but headwinds from scope changes with 2 clients and lapping tiered fees.
- **Guidance**: Full-year contribution ex-TAC growth 3-4% YoY. 2025 EBITDA margin expected at 34%, with 2026 outlook cautious due to RM headwinds but optimism on PM recovery.

**【Q&A Key Highlights】**
- **AI and Agentic Commerce**: CEO sees AI as a new channel, not a threat to RM. Testing with major AI platforms to integrate product recommendations. Self-service tools like Commerce GO reduce CAC and improve retention.
- **CTV Investments**: CPO Todd Parsons details supply-side integrations and cross-channel campaigns. CTV ROI comparable to social, with plans to expand globally.
- **Google Partnership**: API integration with Google Search Ads 360 to unlock brand search budgets. Expected to contribute meaningfully from 2026 onward.
- **Retail Media Risks**: CFO notes slower new client ramps and macro volatility, but confident in long-term RM growth. 2026 headwinds include $75M from client scope changes and tiered fee lapping.
- **Share Buybacks**: Resuming buybacks post-French law constraints, with $104M remaining in authorization. Redomiciliation to Luxembourg aims to enhance liquidity and index inclusion.

Criteo S.A. (CRTO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

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Income (Loss) from Joint ventures

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Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

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Net Interest Expense

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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CRTO

CRTO fundamentals

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