Criteo S.A. Q3 FY2025 earnings call

• Criteo is a diversified multichannel platform with ~85% media spend outside desktop display, Retail Media representing ~half of spend. - Progress in Performance Media (shift to self-service AI-first platform, GO solution gaining traction) and Retail Media (strong growth, new partnerships like with Google, DoorDash). - Agentic AI initiatives: internal agentic products, integration into retailers' agentic experiences, partnerships with AI platforms. - Announcement of redomiciling to Luxembourg and direct listing on NASDAQ.

Performance Media: Revenue was $403 million, contribution ex-TAC was $222 million, up 5% at constant currency. Retail Media: Revenue was $67 million, contribution ex-TAC grew 11% at constant currency, with media spend growing 26% year-over-year. Media spend for the company as a whole grew 4%, contribution ex-TAC increased 6% year-on-year.

• Reaffirmed full year contribution ex-TAC guidance, with adjusted EBITDA margin raised to high end of range. - For 2025, contribution ex-TAC expected to grow 3%-4% at constant currency, adjusted EBITDA margin ~34%. - Q4 2025: contribution ex-TAC between $325M - $331M (down 3%-5% at constant currency), adjusted EBITDA $113M - $119M. - 2026 outlook: overall low growth expected with low point in Q1 due to onetime revenue from tiered fees.

• Potential impact of agentic AI on retail media dynamics, though Criteo sees it as an additional channel. - Foreign exchange rate headwinds on European cost base. - Return to office transition and higher Q4 marketing spend tied to product launches may impact results.

Q: Custom Audiences share and self-serve economics?

A: Todd Parsons spoke about Custom Audiences and social performance optimization, while Sarah Glickman discussed self-serve as beneficial for top line leverage and margin optimization, with self-serve traction seen in the business.