Criteo (CRTO) 2 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to Criteo's Second Quarter 2023 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Melanie Dambre, Vice President, Investor Relations. ahead. go Please

and call. everyone Criteo's quarter second Good welcome earnings XXXX morning, to

Joining Executive to today, and call for Chief us the on join will Chief remarks. Parsons, Officer, us Glickman Product Officer, prepared Q&A Chief Sarah Officer, are some going session. share the Todd our Financial Clarken; Megan

well call. find remarks and prepared will you on usual, our Investor Presentation our after as the IR As our website now, as transcript

include you we statements, get only would I Criteo's our assumptions which forward-looking Before will judgment, like to reflect that as remarks remind of started, and analysis today.

materially Our discussed actual required results current today. any obligation on may affecting undertake Except not differ a factors number as Criteo's to do business. from of update statements based forward-looking we law, by expectations any

information, discussed to filed as more Forms please release, earnings most factors XX-Q XX-K as and our risk well SEC. the in our with the recent refer For

our most earnings metrics and non-GAAP We'll Definitions reconciliations performance. discuss today. published release included the to are measures also GAAP comparable in of directly our

made prior stated, against in period Finally, unless same the growth the are call during all this year. otherwise comparisons

With that, to it hand let now Megan. me over

strong to Thank that Melanie, I'm despite execution good today. for we volatility. quarter, pleased by the in Thanks, joining via and delivered us all you team's outstanding second everyone. morning, a driven performance team report our ongoing macro-economic

pole be fastest commerce partners provide the in to who Media. despite digital our factors, the we market we're tech prospects equipped one We growing in environment, and and to advertising, of capitalize are center the to demonstrated that said Commerce have and leading looking market areas uniquely the believe we we of in ecosystem. We the would the current are resilience clients, at media where of position the

unfold Commerce the we're of the completed after to One Iponweb and Side called Our Iponweb, our accelerate of transformation the our Platform powerhouse teams Platform acquisition full launch coming is our includes become and life. Criteo Platform leveraging for Commerce Commerce Side strategy. bring Supply the our Commerce successfully stack launch of the Media. and Commerce the Media Grid. Commerce integration an year vision to This our they continues to of a our end-to-end Media Demand to we've assets positions of that Media called the our unlocks differentiation Max, to platform of and potential These capabilities and bookend Platform imminent choice

with on Commerce details tuned availability Starting month. We Commerce Stay of more Max. DSP September general for XXth. the launch official the forward next look to our on

progressed geographies. and with has beta across retailers testing various brands multiple well Our

As offsite of we of the expected, This results of results integrated terms strong advantage our end-to-end increasingly campaign. onsite on rates platform and to value our beta the testing the proves show delivers. clients that conversion in

and their data monetize and taking excited also features Retailers sites. to audiences leverage differentiated their inventory sales product-level and point premium up offsite, Internet also first-party by on up Brands gradual to and brands retailers single quarters. Retail more Max a while to to pipeline encouraged built use access agencies have valuable closed-loop increase advantage expect Commerce Max, shopping to onsite performance. open are are to very we and bring data, of and leveraging of to to be have and and drive inventory over excited shoppers measurement coming finally growing onsite behaviors like real best signed inventory to already our Commerce their We're that Media the revenue unique buy their ramp the

proposition to holdcos access have market. supply Criteo combined capabilities U.S. for other our with Moving partner, to Grid, we're We've on to direct Commerce agency a in launch successful with of we since value unique was our launch the Commerce Omnicom and our pleased Iponweb's the the SSP. expanded EMEA. and create

the first signals, package Commerce Commerce their segments audience publishers Grid can like inventory. intent For with our Audience data, in time, which shopper brings

brings For allows all curate available additional It retailers, DSPs. Commerce them monetization access retailers audiences opportunities. Grid for to through and their make first-party

Grid third-party that Commerce brands Commerce Commerce that and expands demand so Max, through any making to other both committed commerce demand, reach audiences is and already spend agencies mainly incremental Grid access to DSPs. interoperable Importantly, Commerce supplemental from to DSP. Platform Media to complementary our can agencies drive have

leverage demand closed-loop the access real-time campaign that reporting. listings the power to first more data of to advertising in sponsored can Media owners. across attracting onsite the for and Platform, Commerce increasing Media, revenue and step Ultimately, will be access optimization flows both for all client media and it and to offsite of to agencies, our For participate one platform, is with Commerce Retail contributes they platform. and Max This onsite allowing

opportunity. pleased Turning to shift fast-growing to centered performance, continue broader we towards portfolio our momentum second as our Media on the quarter we're with growing solution Commerce a

we Solutions our we our Day. this will the and now our as at New of forward, around expect part going half of out mix represent top-line Our larger Investor laid become

We're to also brands on performance do. will we third newly that experience execution signed of up we Our as our our accelerated as demonstrates to has quarter we continue strong Starting Retail X,XXX with see seven focus retailers, Retail said XXX years date now agency QX growth what ramping to we're a our growing Media, we globally. and our to do number pleased retailers, Media partnerships. our bring in of partners

Sprinter verticals, recently number as Criteo to into monetization by exemplified great We're We're of commerce adjacent Debenhams partnership. technology online increasing expanding retailers strides with superior Uber who for proud also across our the We're win including making chose opportunities. and an footprint our regions. all our and trust of marketplaces, most

formats months. brand additional and Eats' launch ads app and up the our ambitions partnership, Through CPG continued platform brands with now the in Uber sponsored via We're markets ramp coming of promote multiple this their have capabilities, can on the in countries. and pleased we exciting to products

this More clients quarter broadly, relationships EMEA seven top we existing new with inventory and retailer monetization their expand help U.S. them are launched scaling to and our opportunities.

instrumental access added Retail Media grew premium agencies brands by spend attracting Our has demand. XX% quarter. and nearly Media driven and scale in new more been in a at QX, in over XXX this the unique We to Retail U.S. inventory

into we're Our increasingly leaning we independent, not agency Criteo don't meaning part media, retailer are we're as a agency. and partners own not of any any we're

patent to shelf already as we U.S. of Methods including also of This early analytics defend the market our their visibility power They earlier independent. brands. tools of maximize top granted are harness share on providing DSP. AI-powered the Digital Systems to insights to more into AI It's retail of to design Only but shelf Criteo analytics performance category, their shelf, We part value a share. our we're we bring the includes win digital or Display for year. product-level and of unique share these for digital integration insights days, and brands seeing very were this campaigns still AI and Shelf strategically applies

opportunities Looking of power Commerce deprived strong now by to Audiences combining growth our Commerce and we to represented Solutions, business leveraging to a Marketing half our up and in in our in-market cannot third ex-TAC in year tech of our commerce environments AI advertising only commerce of continue data as ago. modeling Audiences AI-powered diversify with a address, clients to others technology large third-party environments new data from breakthrough shoppers. signal-limited new large-scale relevant delivered in unlock signals. reflects we at ability scale Contribution This audience QX, that close our targeting find to business

for an across integral brands the and retailers we are to capabilities internet. valuable reach success our These Media strategy. help Media part walls the Retail advertising audiences open foundation most offsite extend Audiences create their the own in their Commerce Commerce our of beyond as also

always-on are great our our now in Media now platform still unlock embracing compared than suite to uncertain quarter. enhancements XXX more Clients solutions last benefited Importantly, Media our one our strides Retargeting like acquisition latest Criteo and solutions release made optimize environment. our cross-selling the addition power capabilities. of and campaigns AI-driven we've and additional about of Retail to budgets using Commerce of macro-economic to from performance leveraging in more solution, a customer with retention clients in Currys

first-party its a confidence Chrome around enabling targeting to for publishers spend, continuity Safari to traffic, deprecated in an in immediate with email cookie-less and XXX% First-Party a increase hashed results In partner Network that as close signal contributed saw scale in logged are sequential cookies addition, media users. environments. a are for saw authenticated, consumers lift Media quarter in We year-on-year this browser This and our increase when we to publisher continue bidding to matching data which have U.S. for hashed third-party on encouraging. retarget can of Android. CPMs top A in of our XX% emails after demonstrates

represent largest As the part of recent strategy, web a for planned of we Sandbox. deprecation Privacy Chrome of before X% deliver development is scaled line that the will remain in close to with us positive with multi-pronged cookies of our one to of the a believe expected Chrome in the superior partners use announcement Criteo also Google's third-party integral users addressability of scaled specific testing get results. the develop to assessment. is into an our It CMA's also to cases We enable part performance. recommendation collaboration U.K. real-world leaning with

with consented others to close on commerce-driven deliver on incorporate as Thanks would Last our to on entire Generative Amazon for I AI journey. Lab's and our buying dataset commerce the transactions, every trillion in AI quarter, leverage an potential scale, much Criteo. commerce We combined to e-commerce and the provide internet. Unlike we at largest shared as fuel what AI $X access with Learning more in privileged models or open the means our year, expertise, data, have industry, sales performance Criteo to update thoughts billion for the breakthrough our our Deep that advertising we reshape than daily to across $X like to the twice models.

our improving through delivery applications online, product AI to process drive as on Generative for for a focus our integrating are shopping areas: performance, customers their efficiencies. our platform specific and chatbot with the into enhancing optimizing co-pilots experience and clients interactions with such user recommendations, three We service

are clients score at satisfaction improvement the average is of client our everything at retention customer center a teams. remained XX%. to high and do, Our hard in the to our testament meaningful of The we work year-over-year close

service through lens value centricity We and clients everything our performance are to bringing client do. to on a that with we focused

this CSAT year years. has it in highest was Our been three score the

to leading make expected advertisers help and we're drive data way our ultimately first-of-its kind Science measurement. need, across marketing industry across bring to format example with particular to driven achieve any on retailer this will Criteo industry importance establish the the channels the create for Measurement Media me viewability is that results Integral standards we to compare an partners. that to adhere to imperative measurement for Retail of and Ad It and better is media value benchmarks. is One also need is to Recognizing results. standard demonstrate for encourage onsite ecosystem. of new partnership adoption across growth further standards. from unlock expect budgets decisions, advertisers strict buying working long-term with a traffic invalid network to Brands ad

level profitable confident our every value. have our time, highly growth, in leverage initiatives on Commerce We're at operating future. conclude, Platform execution and on built To scalable focused shareholder with to a we’ve all a We driving multiple focus generate on we focus underway we're over Media organization. is believe and center and front of our

call our With outlook, that, results will now Sarah, over turn more the provide our to I Sarah? and financial on will details who

Megan, Thank good and morning, everyone. you,

QX performance million reflects ex-TAC $XXX XX%, grew Contribution ex-TAC second and a $XXX execution. on clear was constant million. was quarter Contribution second ex-TAC $X Contribution currency, focus unfavorable by growth performance of X% in Revenue and our Our Forex reflects At impact. million quarter top year-over-year on Reported our XXXX.

flat performance by of year-over-year retargeting Solutions driven XX% XX%. X% as down and Marketing Audiences down Our Commerce offset expected, by was growth organic with

Retail Iponweb Media contributed was up XX% and $XX million. year-over-year,

ex-TAC mix for in around our Commerce shift Retail and to second new represented our quarter. of Iponweb fast-growing solutions that Contribution Media, half top-line Audiences We continue our to

retention client had resilient, client new great wins we XX% Our quarter. to and this at continues be

Turning to retailers to quarter. traditionally Contribution revenue on was was U.S. and XX to to segments, Retail in and our basis lower we XXX%. offset up marketplaces, government million, in and spend brands, base same-retailer was measures low Contribution France the by $XX XX% client In currency in by million XXX our QX, and ex-TAC due two-year ex-TAC business our inflation. retention online and temporary curb our added was stack grew at a constant primarily This in $XX a driven Media, XX%

strong also We growth mainly robust vertical. saw in our our and brand from bookings, CPG, agency partners, largest

by Retail ex-TAC $XXX In in million $XXX our rate and growth growth retargeting. Contribution offset with anticipated, in July. Media million Solutions, Marketing strong accelerated was Commerce lower we revenue As was Audiences,

or retargeting from million signal As excluding down $X loss. impact expected, was down XX% when year-over-year, XX% the

to Our clients operate focus environment on a consumer choppy significant in with their economic continue retail marketing and investments.

Retail second quarter, transactions and sequentially. the online In online improved traffic

However, transactions last lower were in Retail regions year. online QX all to compared across

vertical travel XX% in advanced unlocked as we Our the QX, learning optimization XXX% through performance a is budgets with stack algorithms progressed our on well, and strong ROAS more using performing The up basis. technology and deep of two-year vector database campaign quarter.

retain as and on more growth up transition XX% We up strategies stack acquire customers. basis, audience and in clients Commerce Audiences, full-funnel year-over-year, two-year strong delivered to XX% a to

having to engage after completing journey. have Media which been strategy. we successfully Commerce cross-selling on the we instrumental Iponweb integrated value their one acquisition, capitalize in consumers year we with see entire across partner clients buying that them Platform our our help accelerating One As has opportunities,

On year-over-year quarter. a an by QX operating We to optimize X% is planned and stand-alone XXXX. increased reduction and was delivered million primarily model Iponweb, basis, seasonally efficiencies. mid-single up EBITDA partially our cost realign $XX organization part Iponweb's Non-GAAP digit of operational transformation our scale in adjusted low in our operating key performance enable expenses to A actions. offset due our of a to

faster. to and We our work against targeted to of and our the we executed have better already continue savings cost this processes majority year, streamline

contingency. P&L, to acquisition. incurred increased of XX% the increased of the shares QX related costs by amortization million granted depreciation reversal Iponweb's $XX in restructuring of share-based founder to million, $XX Non-cash including and compensation CNIL $XX million. to down the expense partial $XX We as million, to the XXXX part Moving offset treasury

loss in of resulted seasonally share. reported diluted Combined per with of net a low a the $X.XX in Iponweb in factors EPS margin from a diluted million net these dilution We of share quarter, $X.XX adjusted and XXXX. $X loss QX per

solid allocation generation of of We total financial gives cash with $XXX us as long-term in and million the execute flexibility have a our strong no end position financial to June, significant growth had capital strategy. We which debt. liquidity and

second line restructuring. of anticipate cash negative million with data of expected, related generation free the centers our of due to in year-to-date in year free flow $XX including renewal positive to As our the the flow was CapEx by Retail Iponweb. five-year and cycle seasonality planned We cash half the business Media and

$XX.XX QX This first $XX to million of expect cash deployed repurchases shareholders via our cost XXXX. return for The in impact repurchased capital free CNIL QX of to payment organic goal per value We will share. is the enhancing ROI and QX. share and million capital of We the high in in investments in primary our buyback capital acquisitions share to invest half flow of our included program. XX which an in average allocation shares at

X. for for organic we financial remain about and assumes the for the growth our to low-double-digit full-year and ex-TAC to at ex-TAC outlook, the our Retail expectations of Iponweb. performance We the the acquisition currency This anticipate unchanged optimistic XX% from first which constant reflects low-single-digit of August the cautiously as of our of today, year, our reflecting now growth impact outlook high-single-digit We half Media in of expectations growth and to expect year. XX% remainder growth Turning for XXXX. Contribution Contribution remainder

year. as as QX advertisers pronounced activation. more half XX% loss our full-funnel expect more do Commerce Overall, the shift of we reminder, growth to of mix the expect in signal Contribution continue as and budgets expect not a the We seasonality we For is second with impact business ex-TAC Audiences, to XX% adopt evolving.

about to margin of an of including basis Iponweb. dilution adjusted XX% continue anticipate EBITDA approximately We XXXX, points for XXX from

annualized largely impact track $XX offsetting savings We in the over year, the course XXXX over annualized deliver are on growth to investments. million our of cost of the

Given our QX. seasonality, full-year be of realized to adjusted we in XX% approximately EBITDA expect

to around expect most mainly first a planned year. in the our We XX% CapEx for incurred rate We data centers, about the renewals spend million, related tax normalized of half of has anticipate the $XX which XXXX. of in of

we assume shares For in a number purposes, XXXX. modelling flat of outstanding

the enter we back-to-school second year, accelerate. the season ready half we holiday and of and we are Media for seeing As brand spend are the Retail

Overall, we and of growth to mid-single-digit expect million QX X% by $XXX currency. assumes growth. This month at one X% inorganic Iponweb Contribution to ex-TAC of constant low million, $XXX growing organic to

million estimate We impact Contribution QX. of on changes ex-TAC $XX $X positive million a Forex to drive year-over-year about in to

the million and dilution between from million, We $XX $XX EBITDA reflecting expect adjusted Iponweb.

on remain value. excellence Looking long-term business. This across all includes to ahead, focused we our shareholder our transformation initiatives of drive executing operational aspects

position The expansion to our Capitalizing on Media, open Commerce in scale growth pole and future enable margin for priority wide to sustainable as is we our Retail continue Criteo. our platform. Media is

And to begin with turn I'll session. the over the that, Q&A operator it to

[Operator Instructions].

first Rosenblatt The go Mark Securities. ahead. Please from Zgutowicz with comes question

Benchmark. Hi, Mark Zgutowicz with it's

the the take us continue know direct you to, attributed just take rate there. and to first rate Thanks Appreciate had rate? call down quarter come would maybe the take thinking's then terms out much. of on sort on just refresh on the or there. little few a of there in made parse trajectory you I your And sort growth that then think had terms you we a what I be lower of was in French out mentioned mentioned lower on July accelerating bit retail the of about spend government. across just And So all spend, media, also talked call that you overarching just assumptions things a some could I Sarah maybe might hoping segments. it.

lower Yes, of our business, European transactions. see and lower Mark. is Europe online had part QX, did big Hello, France in with and overall you. traffic we Thank a

QX. that see as you said France, taken And inflation. were we curb in did in measures there were saw to temporary government we So that

that dissipated So, has effectively less July. in in brand spend coming now

some I when July from specifically, fashion would continues more and do look continue predominantly, to slightly our be signs the see overall, we growth in saw we sectors see in say, we And Overall, rate. lower. sector, but retail month-on-month acceleration strong to

year. see to confident that And the the we XX%, QX. did has occurred. took already So we in knowing feeling year XX% for we're lower growth the half And

the first being said, stack, That was two-year XX%, year-on-year. half

is, the with in on outlook. confident feel having feeling our So on factors confident we're overall, that all brands said, take have to Discussions the that very and throughout One a we business, our reduce we're larger other also rate incredibly take are and rates stated continue scale being has there's time than still lower segments. positive, we have increasing. That take customers, we on overall two traditionally, brand. our marketplaces part And really agencies client of rate the with being a here. some and

The rate. large has of to knowing good that continue the we last more optimistic, coming come. and season, the a confident night, take some names have that yet spend bringing course, So feeling season being of our holiday scale as We're we marquee very getting is some activate in as are outlook. in cautiously about. biggest recently the spend which with brand spend we to impacted feel choppy brands, Media And and very economic more

pretty and QX. facts feeling understand So related good the to

helpful. Thanks, Sarah. it. Appreciate Super

with The Please from ahead. Citigroup. next Ygal Arounian comes go question

and Can follow-up kind you the Audiences, there third-party if were maybe there? of use an on but you more trackers, growth environment there's that's more what seeing being talk as and potential of strength move everyone. how opportunity Commerce feels more able morning, before. think you're that to seeing that, guys there and you we away there's Maybe there from like expecting about Good to than and on Thanks. you're evolved

we your on get kind retailer forward often of that picture and their a bigger often a Media that what Criteo? take things is? and with gets there? that off then Megan, a kind hear broke We house, the Retail balance of that maybe little particularly get can bigger. more one competitors. about better. just to one understand saw investors as give is large environment. news with partnership you Retail retailers and opine that from bit you're of this about in opportunity And As And often What we on this question quarter we for we moving just move in is with And seeing what Media hear

going -- that's in this if me to of a I'm Let do okay. couple parts just

and that. The for and area the performance. first across some level pass one, I'll part what come to this question more after of it do I'll And Todd the level. And to give to around high us on commerce audience a how detail second a there growth high exciting seeing we're at then then I'll back is

important are they other want our are On those name doing Audiences, of, It's the to Commerce some buyer who that actually to who shopping, audiences that People Audience front, are are ultimately of even journey their the are activity. critical. on front that audiences those clients. Commerce audiences in not so get

this And to invested expect be so performance over in we We've time. the there area. high

And been so Audiences have targeted selling, or now internally solutions. looking found in now cross are has bringing our what and team is selling Commerce for really retention experiencing retargeting who of feet their clients that our to terms targeting traditionally we're

extend that coming our beyond use using to sell and those in a already see of retargeting to to into for as ramp capabilities we performing we core. at up And we well. be have find XX,XXX again, the the cross broader where clients, ability the lot that's Audiences Commerce targeting highest and us And that the them clients

the you about it's product So Todd, want how and to performing? talk

Yes, hi Ygal.

commerce talked about commerce obviously from that drive That's it is their Megan to just for helping counting cookies else to And think, that's are Commerce purpose spend drive their a something sell it the point Commerce then that key good And in place what Megan's point, enables to, think I before. Audience a adoption the we is makes market. use the as Audiences out disappear. dollars is operate outcome. our interest way benefiting we addressability that you to that built those to strategy, data pointed that to a can that of of to a we trillion we When because turn. across multi-pronged that want something, audiences add data us people and that protect operate I very expand

and We've and anticipate cookie to the this Firefox move already traffic, well less and we other as it post seen work continue with world. Safari we into chrome

So main product a are well. make factors grow up and those Commerce are the perspective from teaming that work to Audiences

taken about we of business just in-house. that. might were think me very how let Okay, the feel the a some -- this And let who, about to second players I talking going one take talking has in-house. to question There in in-housing, but competitor let ours part to I'm will of a me broadly off not who space me you are in-housing be about sure big because I'm competitor. talk that their just

then successfully takes Walmart it or done out it that difficult who of that been have to how And And you've them very onsite and parts do to of they've trade capabilities to of their back to done with when How seen found and sent been retail on, it players really marketing themselves. activation? the get you to then able done All activation? themselves? think areas stuff very are they've done, in take afterwards. be about perhaps media, it, and very this specialist big demand to buy to and or create around demand and do How that and building what investing develop that likes that others is have offsite team that

and example, added another There's a the they've And operation for needed be just Kroger very of been massive in working with do the all of is there that. or a now X,XXX really has to eight And XX:XX, to environment It to XXX that's space. years able built to Kroger good think which this. so. internally employees that I size they've points

that environment. can a available it ourselves us, of make do For a of we piece sort do can in we're all and so platform it we or and we of

light that something they not really to there's for do, want do to we then If that that don't in-house, want them. experts don't can up area, in are

belongs We're that it which the a again, So who players piece of case all use that are the board end provide people, looking the to top in can themselves. platform our something ultimately use of a of of is town. bring in-housing to of on at here very or large clients

Thank you so much.

Doug with Anmuth JPMorgan. comes question next ahead. Please go from The

Thank where utilizing AI. user Megan, service talked And going are along far Thanks. of about into layer in to the achieving we delivery. to engineering these benefits us you Maybe expect enhancing taking questions. optimizing Hope benefits performance Generative could you realizing should curious coding three for areas you some how you on and you're help how efficiencies understand business experience and AI? forward. your tied if just and also you're already the Gen

long time. we've Yes, in-house for capabilities long, thanks for the saying had question, by Doug. Good to hear a start you. I'll AI just

Criteo year this year. celebrating hitting its five mark, is now AI lab Our that

lab are generative that into. who it's that really And talking What so around we others do. AI in is leaning plus everything now we're

come area this. that come working that through the externally we on of development as lens all that And anything also lens have bring of well. hard is Todd's of to So that. through has do in we internally a incredibly a

come different things three the of area. the I out called Some of directly on call out Todd's

him So more a there. you I'm going going it on to what's bit pass to to give on color

Doug. Hi, Megan. Thanks,

development with and and to and an drive already ongoing that's model actually that in We it's performance accelerating far are that production we've investment we're progressing. along used development very and that's model

mature in of top that motion as already well So Megan an pointed count should on start out. as you

different for tasks. use it time and copilots other operating some a comes we when to for intensive Secondly, people building our now, for internal for copilot strategies, been have using are variety of functions we to development

quite that but to finance, delivery in we coming have way experience newer, And are our then and customers go to a are our campaign fast instance, in thirdly, this along delivery products. which name really developments some moving the For exciting couple. quarter, management service enhancing that

a of adding the You can new brand environment is planning to helping. Media, and AI lot done of it's across fragmented AI how media is and there can tricky a Gen help and very Commerce marketplace think

There business And for being about can then development. expand search are product they're we're as over going I team's be about, on-site also think are other up probably Doug. we a can really of our how you talk interesting about our our retailer think things some sponsored as the partners chatbots two relevant picking what of most but to areas concentration Those doing. of significantly is specific to now, half

Thank both. Great. you

Kelley Mark The next comes with from Please question Stifel. go ahead.

these wrapped QX? And been around, if I the range XX% Thank of obviously bouncing full-year Is there? Retail trends or morning, And softness entirely I'm quarter-to-date and that apologize now you in like Great. guide due but improved Good have asked. obviously a you is of kind a on kind have was around Media everyone. have you. there and the for it going sounds else something to bit that. XQ saw the

land you. Uber. it's kind And out of what 'XX had of Would call expect a then ramping lay question that to on relationship, is just love the the nice in They and how in get might Thank yesterday. and the beyond? terms second Criteo of call their we

mean, is So, to stack, to answer two due I XX%. growth a on yes, question, year your QX. the it XX%

is traffic, general, then are But traction isolated had we of seeing like. certain a countries online in tough comp and in transactions but Europe than year, say good an others. from France. it And know people certain it would does relates online than Europe more impact have would slightly We have last in we're obviously absolutely, that July. just sectors lower I in to and

what big obviously shopping has halo done But for also is Of events, course, big traffic July we lots positive. those includes everyone, trendline. Day more but have and to Circle we've other specific some seen which for the is And related days days. is of and those trendline specifically, effect the Amazon a of

and the understand feel behind QX. Yes, I front. we for in about guide the about the factors we're So good the the relationship with Uber year, jumped on we Uber. excited

which us, to the coming them continue that formats and have out the I get this they to that to is yesterday. more we to it further the think to last that shout important to it great with quarter. this go, want And It way. as expect was direction announced our is important extend is shows relationship and we they

that media. of spent the retail talking being go Commerce shines relationship the media then Commerce Media, a about our to want light really stress retail lot to a market I beyond and Uber We've us. ability for time on total addressable bigger Media

not are good but retailers obviously And that. are that Uber is example really players commerce players. of a And

to and love this that able and bring to with commerce fact we players. many the So more we're learn work them

to just ability as extend just Media, us today of up more It division out light what we're we Commerce the marketplaces we doing beyond towards today. gives laid which

you, you, Thank Sarah. Megan. Thank

Please from go Thornton The next ahead. with question Truist. comes Matthew

of continues two, media, important or most there. I morning, come products, comps that. verification, secondly, through sandbox we think with 'XX And easing like 'XX, Megan, Todd. back and a it's new if could just things Obviously develop privacy drivers just you're what retail whether Maybe macro then into along you and us of Todd. are, to good one's maybe as this guess and implied could. Google Sarah, the or about that. acceleration I on walk know for here, to the some the partner the back Hey, Maybe I that there's close Coming of kind an half of

expectations the expectations I'm is accretive in 'XX Any Thanks, in thoughts deprecation to for of the if curious 'XX. helpful. perhaps have third-party embedded those guys sandbox guys. cookie and there impact privacy anything the efficacy seen you've be that date. to You would of

again second year. part A level Yes, the few clients. of I'll start retail high more the things, media in a on at just

those retail We we platforms. lot grows existing will then that and clients QX continue and to of activated those inventory with it to with continue that that clients, clients more Commerce of grow onto in up to push drives as for Media and come and to we and drives to roster lit we Retail where we're our media continue will clients spend a that Media demand which add online, with inventory that expect ad seeing

launches which site. to into their C-Max, retailers, to them on inventory for about excited XXth ad September, up and drives be on drives of increases are lit them more plus also which which We the revenue spend demand again

of the always say compounding this growth well. QX, out is about is the the sector and growth snowballing So platform Media all I coming a the of big for should years. the of or us Commerce quarter over as

so said in has that Sarah QX, days think already I drive shopping happen there's will also there's us. special, that they we expect returns those for

really had expertise a topic over plan Matt that's all our time. and long incredibly On we're have a privacy this got to for and sandbox, well sticking just we've resourced

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Was Thornton? there a Mr. follow-up,

No, that's me. it for everyone. Thanks,

Thank from comes Fargo. Fitzgerald ahead. next Please question you. Brian go Wells with The

type Commerce On your SSP process. traditional seeing story become the more acceleration via if that? the insertion acceleration available continuation of demand saw that order with strong QX? part Audiences, Wondering has in you're versus of those on there unlock And the and Thanks. segments you there. a then been DSP any Is

to can obviously a of we that to while retailers advantage getting think in which our are because of what DSP test because our available operate safeguarding data we matter the There But the no here first is are just they're our of Commerce and We we DSP, they're the need DSP. we'll Audiences portfolio. in there Audiences On Commerce on be for users, Audiences. platform run I the the are a great on all takeaway the our variety DSP, products one for take using. nuances our across ready entire I'll Commerce

across use recently fuel board. to will whether expect Audiences that Commerce continue some flavor or it's Commerce or Grid. our DSP product through growth our through And And our launched you the that should they'll of our growth, it's whether

on on that Yes, are commerce. I'll we stress focused that,

Our DSP a commerce is DSP.

SSP. Commerce a is SSP Our

Our a us. And to huge Audiences. for is this goes Commerce targeting differentiator

the demand audiences, which the to or to as level SSP our the from journey, they buyer publishers bought ad that products the in about side operating and are through supply interested to they're inventory. inventory we the data, side, side demand across everything have and know audiences about that on that SKU apply buying is actually about lens across in, their do know to ability know have then that Our access

All know of know and fueled is Commerce to that by products. Audiences ability our about about

targeting, to of see ago, sort right year see across top you over it middle Commerce a of up Audience the Commerce the to now targeting peppered but funnel you'll lit maybe of funnel, now So we that in Audiences the really in a the solution set, ago. the year the

So a of this tech is lens again to environment. effect an bringing Snowball commerce ad

really are are that, Yes, now Brian, than kind solutions, using the marketing going add strong retargeting. more ROAS are seeing XX% They our smaller that is close funnels. just also in to mid-sized, one to kind traditional of to of customers solution. up They for

campaigns, So seeing we're campaigns, acquisition we're seeing new prospecting we're video seeing campaigns.

retention would based Marquee from, say deliver. names, the seeing is like that our traditional and to on our on models. kind moving all day names, And budget performance great we really of view I acquisition our taking superior solutions more it every we're And in in

thank Megan, Todd, Got you much. Sarah, very it.

you. Thank

with comes Macquarie. Please question go Nollen next The from ahead. Tim

got please. the grid, Hi, I'd ask of the like question. things about thanks for couple commerce I've a taking to

kind And First also with one approach contextual Commerce launch and could the SSP. call there using in of I will will incorporating then use incentives mentioned incentives identity to relatedly or emails, just hand, then what curious IDs into talk you Will there things, at both signals contextual Max, as advertiser for of hashed advertisers in hand or DSP go about separately, kind to you Thanks. guess what be of have that? together? all, for be you the they of I in about separate Commerce point Grid be know is your both you they're and as although to well. indeed and both

is the one can I mean front an advertisers Opening more convenience our for to Tim, advertiser our at Media. to really and that simple. incentive for retailers grid back path another It's them this us to up is of start one, Commerce sell steer gives yet accretive on I retailers.

for dollars advertisers think can as choice Commerce that and Grid So of brings and a one you convenience matter ecosystem. ultimately our of more into

to up want use. on they what really is them incentive to the So

Commerce comes how Commerce and Secondly, it to on back built the Audiences were multipronged in identity Grid our strategy. point identity

media that party We is network first-party deal first data is data a first-party through have matching which possible to grid. a in

Internet which have shopping would those but are And overlay an audiences benefit built that contextual on and interest we of also available the Grid. is signals Commerce are out imply where from on in Open Commerce

pick actually to as our our can you possible most and monetize. options really want to We audiences find advertisers for the be Commerce retailers that's Audiences. which many behind doing. effective for are performance That's choose So as what and between you. giving for aim we're to And exactly

Okay, thanks.

with Richard go ahead. from Please Kramer comes question Arete Research. next The

Todd. Thanks and ladies Hello, very much.

have the months you pending you do of the of and you much experience us really accelerating the as into have the Or Commerce is described line is end you'd the more gradual of it laid platform? how heading committed marketers something spend rather out ramp. of on GA campaign this with one, First in get sort six sight a Max as question XX My year? expect to

very can us, size marketing trade think you bring you equally, then into spend of tapping brand whether Thanks the but budgets question any the and we really materially of in the get you for of are terms from? at increases And breakdown in you can media side for coming on my Grid. you're spend second Media kind of much. of all whether from performance, Not just can activated a also versus is SSP in where more

Yes, would I so committed pipeline. on C-Max just, great yes are we and do say that a have customers

I far We got mention we would those QX So our have externally, tend ramp. of we've don't pipeline to it's a but say committed. part and dollars absolutely

and 'XX coming some into but QX, obviously more 'XX. with that XXth in So we're expect going September to and to we come launch of

good So those and brands do agencies from there's uptake a address about the C-Max three conversations and of we good all and feeling retailers, parties. and communities with with really those excitement

So have. feeling we kind that good about view the comprehensive of

know we don't when significant In necessarily spend, I much come is will terms very of in to spend in from names. see come dollars. they've marketing from how media large commitments trade that say starting exactly is the we to versus brand started and other already activated What

that strong I'll share from feedback some of very anticipate And brands. is as back also C-Max see so a come we we well. coming but absolutely from once flow spend with demand but from would that marketing, incremental specifics get I trade more

just let that, Yes, add me Richard. to

the maniacally our and So is probably the what of the dynamics, there I sure gradual Media Commerce point joint effectively reason because market offsite, onsite beta. perform on between focused buying we is out, and are making wanted we've maturity, just the learned together. that in to

work. Okay beta and we've testing learned to course of a our ton during the that how make about

the in programmatic. still of things necessarily are advertisers we between learned buying serve the is we of that not One agencies the functions and that search together

loop budgets that And provide. operating benefit to so we doing not the the those together measurement from but kind closed planning, getting only of

that to bit of are process. committed we the And a is performance a

think know marketplace. the I you

it. doing building of out lot work platform we our to the partners, educating of that best practices a So falls use are our so performance

What to to be renewal market things lot a get how little that we're perform. do of don't to want we smart and we sell this. about going is So with a bit don't want don't

behind So that's what's that word.

watch for Thanks very Okay, next We'll quarters. fair wait and couple the enough. much. of

You bet.

from ahead. with Morgan Cost Stanley. The question next Please comes Matthew go

question. the Great, taking everyone. thanks Hi, for

your terms across retargeting Audiences guess least expectation I in like revisiting them, and portfolio. your at of audiences in potential headwinds offsite, and it's building continued growth like over it targeting about instances, forward in quarter, seems time. Just Commerce in it's against we some saw we'll we available whole more that Commerce then see when think for sounds Audiences Commerce it Audiences, the going

to But up for signal offsite cookieless world doesn't Commerce retargeting why Thank a be does able of will pick usage that there it targeting the in issues going this, retargeting more forward? same the from constrained reason a environment, the you. face Audiences, in is like slack

response. based of a a products, targeting that that cohort of been have certain on Yes, a set one-to-one exposed I of a thing sell people simple product one. Retargeting of that's to direct mean them. one sites a on close they've category very a a is pretty sort of then product, that or type It's landed to and

that's Protected our I something Audiences of by mentioned data promising, and covered network. And the the first-party looks as joint that's before privacy first-party also on very it media sandbox. And API,

to have the that content to are with do Okay, they're looking or things to signals inform products brands they're so to one that I haven't different. that using everything to have Commerce Audiences, really nothing taking to do is other just that Audiences Commerce compare on actually the that they that hand themselves they're the discovered them things the with described about that really, another. people, and mapping considering,

at point for well. That's ripe people. we perform content underserved the that signals buy, make to Commerce because world so powerful more And makes and content with it is up be performance huge as to about that amount our for and that join Shopper about described opens Audiences here and advertisers this hugely us supply a together accretive to which scale that of of get is I the our and margins to it's and earlier of than both scale

a That's great exciting. Pretty explanation.

be signals it data about Audiences? Commerce fair by describe to all have it informed you would contextual the on that So as based then,

XXX%.

relates transactions commerce. to $X that day and that we billion level doing we signal at And to believe shoppers that have, the it's we're about, at of per the to specificity the Commerce they're that what time. dollars that, that all that trillion only to that And Megan and of have spoke add to people our Data related

Got it. Thanks.

I would now for to back closing remarks. call Melanie like to the turn Dambre

We available Todd. Relations us. Thanks is for you And concludes and for additional everyone does The Investor all good Thank Sarah our call you, day. any a questions. really wish joining for team this today. Megan,

for today's has concluded. Thank The attending you conference now presentation.

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