Criteo (CRTO) 2 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to Criteo's Third Quarter 2023 Earnings Call. [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. Please go ahead.

Good morning, everyone, and welcome to Criteo's Third Quarter 2023 Earnings Call.

Joining us on the call today is Chief Executive Officer, Megan Clarken and Chief Financial Officer, Sarah Glickman, are going to share some prepared remarks. well today. Product you join presentation only judgments, call.Before of will IR include now which Chief Q&A for on statements we our remarks forward-looking that website usual, prepared and our would assumptions as session.As find as remind get Parsons, started, Officer after Criteo's like us will analysis the our and I Todd transcript our to the you as reflect our will investor remarks

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

as with the our and please in more to the our earnings our factors the refer metrics recent well For published comparable risk XX-Q and included also Definitions forms most of SEC.We XX-K measures in directly discuss non-GAAP GAAP today. our will filed discussed to information, reconciliations most performance. earnings as release release are

unless year.With made the the Megan. stated, in this now period same quarter are prior against Finally, growth let it during over all hand to me that, comparisons otherwise

of is offering, year journey in from solution expanded in we at embarked now ad successfully our focus say/do AI-enabled and Internet. areas retailers, ago, commerce and positioned our fourth return to ad Media digital and with above demonstrated X global services, rely while the on strategy on pleased geopolitical directly unified for with you a solutions with the moved Criteo X we've volatile platform impacts Commerce powerhouse ago, commerce.We've wave on platform position provider Media, and We've years on built today. the that end-to-end continued have our Investor Thank Thanks, to backdrop.Our testament deep to driven scale, tech open world-class and Retail spend. a all publishers on cost team, integration technology, in leading the in Since AI, the the Retargeting Commerce of tech sales the at since morning, our by a conflicts and advanced loss, our drive solid a joined connects our our resilience advertisers expectations, macroeconomic performance maintained top focused of business leadership and on trust the performance Media.We've the data and a our advertising. to market business clients multi-solution to differentiated AI-driven we're and changes who another for retailers' us gains unique report and single sites acceleration, industry, pandemic, joining prioritize good been our Melanie, I foundation commerce line to a retailers to only with and growth high play the forefront R&D a significant transformation focus our share -- become navigating signal everyone. and high Day, we're and drive of ad and ratio EBITDA of continue team's that delivered hard quarter I'm adjusted growth discipline.Our work organic strong to

important our market we for supply vision acquisition of Media year we a time where for the this milestones history, year. retailers partners, months, brought Media platform our the partnerships said integrated number life Commerce achieved as Over footprint. past have unveiled billion over since million $X first in in Contribution agencies, $XXX of have well including we've our we Criteo's alone just leading successfully in way last Commerce We and Retail to platform over ex-TAC with clients. XX Media would.We're a our our to We've our we Iponweb, delivering expanded on and further

Mercatus. Let believe and self-service first funnel the shoppers We're the Side multi-channel, me across integrations and partners, audiences deep already on with a retailers just Max the strong of including Networks, Media and multiple data we've unique third U.S. shopper offsite to buying received that we've the leverage The and in spend going and Media real is DocMorris, Retail built during category. feedback closed over of so XX market full the with new Retail to sale of increasing XXX about multi-format period quarter.Starting offers globally against GroupM, beginning, same retailer who retailer grew for to measurement.It's but in point agencies loop by monetize proud accuracy our targeting with shopper and their digital their we marketplaces Retail and for our more Europe an their Retail as most the retailers their assets. XX% capabilities multi-retailer, Platform driving large last execute increasingly understand achievements Demand as year.At to and Retail the then growth.Overall, also and our investment, this with most approach. Media Retail a retailers far our recently to to quarter, our year number data the an our XX% Retail through unify their doubled ecosystem of have and leaning to won suite grown flexibility agency online, Media in-store integrated incremental their Agencies our some Retail X,XXX their have exactly QX, the September. for; sale.In more Media to highlight holdcos of Dentsu, the to spend type retailers the available with to and in and spend offline, retailers now We Media prefers brands we brands Commerce enter the countries in are Yield, products, We increased looking who with fidelity partner operate past ad what advertise ensure are brands, what Commerce marketing is of number closed-loop doubled our are Media directly that event into the market since All we've which including, of and Saks, brands. monetization Media year.We're platform APAC, addition this effective solution and to adding footprint these Criteo became Flywheel September, in helps tying compared better and than the are brands the to For those fully at in trust and after generally contributing shoppers increasingly sales, from shared

and these retailers. that X close standards be quarter. pleased pushing this XX exciting we're are wins areas across of addition, clients, are with these be of trusted Walmart the insights agencies spending Mexico We'll We've this, monetization unification in investing and measurement assured drive solutions our with in X with digital to. are see and using advantage We're both partnering key provider our compare any measurement have now and aim full differentiator that retailers being successfully environments. when across standards they and advertising buys that compared leaders, last measurement are are and for partner but industry able Criteo real of of ads because onsite access Science. Integral actively measured such XX% users to critical to brands we're to Retail had such ahead extensive and for of insights Retail empowering announce that with excited leveraging multi-retailer, reaching most multi-commerce and still In program.We're choice Insights opportunity. the multi-marketplace, offering format, shelf U.S. for ad They better to ecosystem-based their businesses with industry strategies of the early to and includes AI-powered their to compelling new almost Retail Insights tripled of is top an clients so media increasingly reach the With Commerce brand been and can monetization their as results.While Ad drive their largest impactful deliver potential we brands navigation U.S. of is solutions the retailers a to and brands Media more QX set patented even to Media larger We're Media.This needs seen, investments. days important, datasets, for Analytics taking they year.It's Connect can are and analytics. inform our to brand for our

share. our average is the Side a year, our supply client Commerce been growth past brands Platform, we've Grid are since of successful has business in June. Commerce increased me and Supply of launch accelerating the retailers how on quickly Grid advertising the great gaining in XX% over debut number let talk about Over had our SSP, or that base.Next across by up,

powerful from to budgets to this path Our retailer for commerce supply our Commerce audience for first capture seeing audience agency top to established shoppers, are opportunity of to open Commerce always-on for strategies advertisers growth real Growth represents on acquire more and Advertising using Solutions, services. for demand already we're leveraging data proprietary launch retain incremental through expand Marketing to media Grid a engage Grid. big customers Digital from incremental as the represents Commerce to holdcos and This packages, us extension clients DSPs.We're another with audiences activating campaign about we're to shift our and excited across for retailer looking suite our and commerce internet a opportunity XXXX.Moving SSP

commit on spend results reminder, us a refers As a with way to the advertisers drive see service best best where we always fit. the to

clients beyond buyer As more as continued looking their this consumers optimized to marketers context, the spend advertising by performance. complement Commerce we across we're our have to up Retargeting is excited Audiences that for drive the funnel.In down touchpoints traction with of Retargeting, evolved and journey are for

audience relevant Our as a who resemble competitors that ability the services to relevant or and researching with existing they products audiences from helping clients investments broader that actively on in-market engaging the is new to shoppers internet. us richer are gain high-value targeting and against leveraging shoppers who highly less and customers paying finding shoppers our target targeting are contextual open valuable are precise off, ground targeting provide offer.Our set

open our Shopify, using Meta. alongside or TikTok to consider may powerful ability and Plus as performance Shopify first campaigns the We've In into product.Shopify first-party before then instantly merchants we're Audiences to partnership prospects and addition, of we when Criteo and up communities. solutions to accessing value our Shopify audiences web proposition medium upload with Meta, attract activate merchants potential This demonstrated used large-scale generated open our expanded integrated to Plus Shopify our Snap.Lastly, the intent commerce Pinterest, Google, opens now encouraged drive platform Criteo. by inventory extend opportunities and Meta's internet existing incremental new haven't by can high, our with campaigns our that to

quarter.A ago. average clients to of QX, in with resilience multi-pronged contributed have the solutions opportunity successful campaigns than momentum top includes testament identifiers. in to upselling and business and full spent our and our a an using with to this dynamics our have mix, on cross one to of transformation acquisition platform we our on XX% in time is we've power solution the Marketing XX% embraced our Solutions, beyond.As of year our selling and part innovation ago retention post is now the clients first than Criteo year foundation Following Facebook a of half QX for more XX% that the growth, of our testing, addressability hundreds power and line reach than rebalancing ever play, the Instagram representing enhance a and less AI-driven the lay an compared extend our of to our strategy Within to future this more third-party have Retargeting seen of fuel to dynamics continuing. acceleration now This future. for clients critical for These

plan conversational to including Generative with effectiveness X% emails, significant This quarter. to cookies means We users and experience advantage First-Party Early the which of and strategy, to continue significantly internet the associated have our critical internet assess user we're sales we're to focus to HEMs, leads consented for into data we scaled on clients or than The match Privacy next access APIs succeed when with consumers retarget like of bidding improving participation first-party network, we into the to we of web. phases be similar on we're Media, creative focused to the also AI of feed our dataset a environments as assess to demand our for commerce and the for Sandbox Media find pillars emails our progress Sandbox, leverage Chrome integrate to closed our beyond we further to drive supply models, AI real-world platforms. the effectively resources. crucial Privacy third-party consumers moves environments on results partners like out economics is the client once to platform and on retailer dedicated and will performance. as delivery Google sponsored are environments. first-party our consumers Privacy hashed that effective experience platforms.First, focused industry Sandbox process.We're offer planning client our Network help AI-powered in year, we third-party on in and finally image signals.Second, audiences Remember, the significant sites and AI X can to Internally, strategy, tools reach we open authenticated and scaling ability cookie-less In like time and our remain clients closed its more commerce and the generation privileged our changes to across inquiries.Turning websites. we've faster access intelligent the and in hashed clients, more lies industry's every the to absorb service social Retail to complexity.Third, and performance enhance Google's team pleased environments on increase and differentiation to multi-pronged a open industry the connect environments largest to empower retailers' monetize bringing scalability, our one the enhance on which technical more largest HEM response our in collect utilizing Privacy to IDs, chatbots using retailers' readiness optimizing we're solution, signals, ads authenticated to data-matching continue more our to new alternative to deprived social sites in third-party in addressability keys and and through see our to interoperable Sandbox our with

the enables for on millions potentially social users our better retailers the in we're Our where privileged or access we're users, data believe conclude, of extensive to we've billions to first-party we've expect participate and ever be critical won't to for a will advertising primary deliver be through and we digital for to advertising.With invest of that, continuity to Sarah financial and I'll to proprietary Commerce indeed, over discuss enter a expertise positioned reach logged-in our partnerships with monthly future.To hundreds platforms we of been expanding while than we and year environments other to of our during believe and the Media ahead hand before data to than for of advertising Forrester According areas the strong Media next say our of drive future path XX has increased funnel. the It's performance our marketing across acknowledge commerce our sale retail in-market for or wave there combination shoppers.We're of of growth it our changes clients, is past scale at recent to our unique retailers significant accessing demand and focus and to point Platform. clients XX% to months, navigate us, a results survey, our important linear, Commerce entire technology, in our performance of capitalize advertising outlook. a to advertisers on the the better and about built from significantly digital digital moat but continuing to as that nothing digital

and Thank morning, you, Megan, good everyone.

new strong forex This $XXX year-over-year in of Media, third Contribution $XXX mix Retail in million and of our Commerce impact.At top our Contribution XX%, by Reported solutions up and execution growth that our ex-TAC includes ex-TAC by currency. Contribution performance expected. Commerce reflects XX%, up quarter year-over-year X%, a Contribution quarter contributed being XX%, to X%, to XX% up a despite constant $X QX growth partially growth driven X% was Solutions, environment. was Revenue top $XX our organic Solutions, line our our macroeconomic constant grew Our return by and offset strong ex-TAC represented Marketing shift million reflects was at continue of fast-growing Iponweb currency, Retail XXXX. growth third Marketing Retargeting Media, favorable quarter. million. Audiences in mixed third Within XX% in down for million.We Iponweb a on to ex-TAC as Audiences

at ex-TAC remains segments, revenue Our $XX business retention Contribution our Retail million grew was XX% to resilient.Turning XX% constant Media, client and currency to in $XX at million.

as brands, Our strong brand our we XXX%.We in our ], spend growth share.In spend up client was sequentially agency channels. retailer with digital year-over-year, XX $XXX audiences, U.S. The lower in Marketing activated robust to bookings, to was more QX XXX [ to largest revenue (sic) retailers million Solutions, gain continue growth, CPG, marketplaces. our partners, strong market saw above and driven demonstrating by Retail Contribution base and the In by growth XX% brands also and we we grew retention ex-TAC QX Retargeting. primarily vertical, million in ex-TAC in same-retailer that and from our was and growth mainly our offset shift added was media QX commerce contribution $XXX

While for and to partner the clients with our our up double our with improved journey.Iponweb's advanced our it XX% enhance integration stack by Retargeting on That across campaign them into to $XX reduction XXXX. learning strong a of digits advertising our of sequentially EBITDA algorithms recommendation increased XX% on has We accelerated Iponweb, stack year-over-year, XXX% as SSP. above environment year-over-year, delivered and buying Retail growth vertical on cross-selling vector in help by year-over-year, entire performance their continue offset economic dynamics Adjusted X% stand-alone operate a down basis, an million expenses growth to marketers primarily in X dollars. as being X% driven QX, vertical cost database XX% helped choppy a having retail partially year-over-year basis, Non-GAAP clients technology their Audiences, operating X-year scrutiny a in was Commerce up performance.Our engine Commerce deep consumers X-year well, and driven value Travel to perform was by delivered consumer on improved in actions. and our our said, basis.We continues or engage sequentially, QX due up

As growth continue resources while drive we to allocating we business, to transform cost areas. efficiencies our

investments.Moving efficiencies, We to higher XX% focus related and expense cost management savings, and are rigorous Non-cash given on to closer shares growth deliver Amortization $X on to $XX the cost to increased million, treasury including offsetting acquisition. P&L, $XX track largely QX our share-based Depreciation Iponweb's $XX increased to in of million. as million, granted compensation the XXXX million to part founder down

and was in Our us million. execute weighted have allocation per strategy. QX We $X.XX strong count in the XX.X cash long-term with total This as no end financial solid had $XXX position growth gives of a flexibility and earnings of EPS diluted diluted $X.XX financial average of significant capital September, generation and debt. in diluted resulted million which share of adjusted liquidity to our share XXXX.We

was as capital million X.X share $XX.X We which the shareholders first outlook, free deployed in due is significant cash repurchased our million our Retail per repurchases of financial $XXX primary and including investments cost invest buy-back of expected, our X flow This cash and of the our Media We our flow goal with shares organic of included X. capital anticipate Iponweb.The QX free $XX November share million. and reflects the million to the QX in at ROI of As seasonality payment in to of to an high acquisitions XXXX. $X months for program. to in fourth allocation expectations value-enhancing today, via of quarter CNIL in capital return share.Turning average generation in line business to

with move QX in enter planning year, engaged lower As our cautious season, uncertainties $XXX and the given to to macroeconomic of and currency. of muted our drive trends we holiday to QX to ex-TAC in quarter media environment. Yen softer actively our Euro year-over-year traffic of last We sales performance Contribution ex-TAC we largest estimate the $XXX growing the dollar. to We deliver Overall, changes the significant and are geopolitical teams for saw including the at million U.S. constant results. trading clients of strong by and on in October, ForEx a million, Iponweb.As the to weakening the we remain about against and in impact we X% million expect given Contribution $X X% $X negative million the

approximately in acquisition We million currency our $XXX of at Contribution expect and year, This X% Iponweb. year now the of Adjusted $XXX between assumes million.For we XX% EBITDA full impact low-single-digit full anticipate the and ex-TAC from growth organic XXXX. to growth constant

of basis the the headwinds and normalized the XXXX. spend around rate weakening the year. growth our We impact mainly XX% We top expect more anticipate half due planned expect reflects XX first centers, margin was ex-TAC we Media.For the continue to the of advertisers budgets of as incurred in which for now our incremental points of for of renewals of $XX Contribution tax capex Audiences, the XX% to dollar.We Contribution activation. U.S. We continue adopt an XX% growth Yen of in to refined anticipate about XX% to million, XXXX. Retail approximately data XX% expect flow-through approximately XX% to for most line related and to of ex-TAC Euro from Commerce a against adjusted This of a FX full-funnel EBITDA shift and

were have minutes Media. a our strategic as as is environment, with ambitions the purposes, Commerce Along late modelling great the that significant would impacted this progress by few in Investor for market slowdown For the are towards aspects provide be to over you our that a I update demand. the the on know, to our of an anticipated not underpins some, that like with and transparent. year dynamics our in our to shares financial past with establish along outstanding of to all commitment growth investors long-term this industry, Day.The we our AdTech you continue time journey, the ourselves during take Starting to macro-economic XXXX.Lastly, shared plans our of flat in advertising long-term to many assume at XXXX, number at our choice a partner making we last that already we, we but XX time, ambitions financial affected assumptions months. ambitions

today, Google the more still backdrop know, and stages Although as their entering you looks macro Sandbox growth.Next, volatile, is is initiative. the it final impacts run-rate stable this of our Privacy highly for

While remain leaned same collaboration Criteo and own in Google's a Retail there has our sustainable into are traffic with with and Media, our third-party as a Google long-term partners. related we confident plan live provider test and deprecate business about close to are uncertainties readiness, to tech the leading year.Thirdly, cookies we enabling market models in profitable with

scale, a provide.This self-service structure platform. drives and mature to to is future most it opens multi-year to we model expected enables fee revenue. our services increased revenue our model to is more up this spend SaaS-like context, profitability. efficiency, the higher largest evolving shift lifetime for our further further retailer pricing partners, importantly, And In into visibility For drive our and value economic

in these currently could our anticipate SAAS-like our recurring economic and to lower of also to fees volume-based our market, while to growth than outpace a pricing gross we addition model we fees the for Contribution In continue media services.As that result fees, Media Media be XXXX additional expect includes rate Retail Retail changes, XXXX. spend ex-TAC value-added take-rate

factors, within we sustainable X billion and not increased these We and that XXXX Criteo at including pace retailers profitability.Given positioned X recent also to the win for weeks, well are our growth is ambition clients Contribution largest of timeframe. new confident a materialize expected the is ex-TAC in continue rapid to $X.X achieve in U.S. to

strategy Our remains same. the

Our execution is tight.

expansion profitable focused on operational scale, generation.We're business, across entire and time is on Commerce efficiencies our of in with the solid Media We cash and the area and share and cost in largest margin line, top winning relentless. growth are our laser growth over market, focus

and paying Our off. already strategy is execution

long the we The for to on be and will that, Q&A I'll ambition our and term. in today As Commerce Media, partner gain report to of future turn progress choice begin is over with execute continue it session. the wide to we realizing the to the for our open.And operator scale,

question line The with of first Instructions] Kelley [Operator Mark from the is Stifel.

in dive wins really then of Thank maybe into of last X you. the can part or Uber all -- you've you marquee newer names, prepared the yet. commentary growth kind of for that next U.S. with momentum Retail all I just on the head. about XXXX pair my When that take retailers don't I think your When and and of expectations.Those totally you remarks, other just had, Media announce can't win just about hinted Sarah, and in align thoughts X large and we year whether targets? it's positive the the at your that

new other maybe maybe are fee seeing clients? more but challenging you changes And some you the pieces? more some little from are wins what your through I and pieces moving walk guess of So bit in? the a Obviously, the those of moving can layering outside of structure weaker macro legacy environment, just how

of Today, of our of share deliver XX% continue I in focus we we're Well, retailers. to retailers, delivering Retail Yes. on the U.S. Thanks, XX% top Mark. and first gains to Media. we all, want have to to do European services our

to The execution.What hasn't strategy, continue we've about engaged talking strategy the a operations, a terrific, SaaS-like. player. XXXX clients moved pricing meet player, more about renewal, we to an weekly, has largest we've mature scale daily, and So, are is talking customer, model That's is changed. our and recently them economic changed a that talking in with about for

economic expectation for delivers, shift them, shifting But SaaS-like to the we value brand course, the have continue pricing time. take to have going rate structures It we model. which are continue have volume-based and dollars to also continue us. recurring do takes We -- national our value We into and that ecosystem. value-add for is the fees, all to the services.Our massive it's to more continue to we that, with really of drive revenue, so

so a are feel of our maker, And good in incentives in as very about product, of client-based our we terms of strategy. market where we terms

expectation to hit product our it dollars. our XXXX.That's with the client starting we'll starting short-term, versus to the be would things ensuring about, and XXXX, the expectation growth you say, looking we're I medium, in shorter-term continue point the gains is that those say, adjustment we would all the to But a a -- we on rate change. lower from biggest versus for And growth the And we're relentless mix to ambition. brand the continue on rate ship the where dollars ambitions expect and into of in base, short, platform. Criteo on However, drive spoke and long-term take, I XXXX really

Okay, And all providers? take it. I more other quick top competitive the then from the structure reason what fee one I of seeing you just structure right. the for retail rate on are the guess, media guess, follow-up, fee pressures then maybe change? network was on just and SaaS

drive next know, the from as year years, of course, well that you we C-Max., platform. would we into capabilities to business. for newer platform.We to say see curation. more our in continuing it also I continue for year, fee can an with more focus digital adjustment Media which scale. into retailer roadmap delivered Todd, the change and a drive We're line the is how And with spend to there's at add our contracts, structure the Media -- continue do a as we way we'll Commerce fees lot over And the more this as more look Yes, on with Commerce we X brands so to C-Grid scale,

these It's it's out and it working. is win evolve in I'll remains Yes. here. to the long driving our that Sarah pricing both before us question we work building can through retailers, strategy just and building this that Core our clients also to our by same. we're a we strategy as unfolding. demand we're continue early topic. and grow the strategy model. do that, the out create be economics something then we're of for work with part this the It is that.The from as building by said it But long-term does, this things marketplace good take of flexible winning and our to out relatively our We're us.And them, space. day it's for certainly term, we're SaaS-type is But but the and certainly out models and that the that marketplace. vision. to to a is both doesn't it's for strategy of building good stage -- the ones second and the carving we're a share so, growing to with they a sustainable, do marketplace, And profitable to are retailers, capabilities through of strategy to add, subscribe that working the away of in

Ygal Our ]. with from [ next is Wedbush Securities question Arounian

It's digging Ygal point, to of Citi. not that fully I'm into want I keep understanding. just guess with kind I really

Sarah, Retail all, XXXX? of I And Contribution it you, Media first, like model? from could lower I ex-TAC sure more First XXXX than Was heard prompting right? to as is make so is to getting shift I'm piece growing maybe you in the to that it the guys the contribution in client?And is be why the want you what's or generative, I SaaS from year, less model. a you're next then be it So getting not guess, should shift more you totally theoretically billings but the less of it's revenue your SaaS

a please better? you little can just bit help that explain So

Yes.

and drive retailer in to with The continue with have see continue as First and that model, as already to and for will the shift, And anticipate their well. brands, And fees for And model just large-scale we than anticipating doing brands. for their our our the our continue is many lower largest player, will ecosystem platform, do Asia-Pac significant more as this a retailers which our and we were long that Criteo scaled ambition, shift to many will own Retail us some the everything than tail.In to have in continue sell biggest we of we not short-term we for had goes that to we course, to sell volume. largest be perspective. in do we shifted the the That's this addition is change. assumed XXXX through in our all will growth sold biggest also the with of certainly growth as all, but scale, lower What the grow. all for will to rate anticipate our receive again, do we we're U.S. to Media build that, is Europe. opportunities to lower be and medium rate we it clarify, --

Okay, that's helpful.

the Commerce they're and a this also, and you're Media agencies hearing And an key Media then, into this And that what own as of been that share a acquisition misunderstood. little Retail their within partner. could I more moving partners. launch or just like has week being with Sorry, just Max, Omnicom year, maybe on you on from reads, Commerce feels Omnicom bit whole, the early made

So all? relationship Omnicom change does anything at that with with your

to I last Retail Sorry, self-service. is on emphasize the of Commerce platform our our one part that want just question. Media, your do Media thing

and So, enhance and over shift a there new a more huge is of driving models that scale benefit economic profitability driving to to will our these self-service, is time.

positive are businesses. We -- have our contribution do across we

expectation we're top but deliver drive to and also the profitability Criteo. So overall will is not continuing deliver scale only we for line,

So we as see into at It's agencies to terms had we've take time those and of retailers, brands terms traction other of key coming of terrific in factors number platform.In to platform. that C-Max, going the look the dollars. the are

the about ago. of our seems starting that the traction. is So great We are contracts retailers launch And agencies coming see we're are with we're the conversations is seeing really again, agreements absolutely the QX. -- and are C-Max to terrific, as leaned that like brands expectation seeing you and launched we're that to The September, in.So we're We a in continue had our that the encouraging. XXXX. in only incredibly and event. drive -- It weeks excited one will just flow-through know, sorry, through in that

And the Omnicom, that around Flywheel you but so about follow-up is that.I building asked also is definitely momentum coming, is correct? or the think

been just important here. they've Yes, because an partner

-- the all change partnership that does So, the at relationship?

strong. change it actually, is does Media. all. still it The do it relationship Retail of the what partnership importance the It is at No, doesn't further sort validates of

Media spend, able as accommodate leaning their asks media.So are a part leaning it's making So, buy of to this into technology Retail a are agencies is to and own another buy agencies as or that teams really Media social just a very not of to They're validates into and type more buy Retail stand capabilities up for this. positive. brands, more be on

If their right is through to buy, the you look activate conversation end work of through sort technology that. Flywheel the with the it way And the the guess, of the supply used through the very all I call all of from the buys. at them -- up chain, top very is the we I brand the that, way way to of with

positive with very Retail to Media continue for a Commerce again, and and whole, relationship enjoy as So, them. we our Media

to as us, from APIs. mean, at Commerce fantastic biggest agencies them see of increases own Centers holdco efficiency they Excellence, an of sign add course, I are buyers done Retail as And of some They're across a buy we Media just cross-marketing of our Retail lot a Media partner Omnicom that operational one given We the Flywheel terrific to Yes. of see the it for relationships. utilizing tools, is especially that, in-housing their create They're well events. And for perspective. a a us. with us. ultimately, to networks. as shifting which Media, with our positive can We've so of

Morgan. Doug is J.P. next The Anmuth with question from the line of

a the I just outlook. bit want dive Katy This for on little XQ Doug. is more into to

that growth think slightly the XQ is versus organic to levels. implied I decelerate

provide so just of be cautious, color some pieces you and far? we sizing season some seeing a you can these that quarter-to-ate moving on like holiday about you're making how and more geopolitical little what the bit macro, should think conflicts might So more

Absolutely. I mean, we saw a soft October.

trading. patterns, trading with especially point, starting a media that's So

season. season, course, a the expecting holiday we're In terms holiday terrific of of

Our are not seeing start leaned sales holiday We're to in. season. all to early an sell teams

that's of on some So close in. say reading knowing our the concerns our few terms season be and leaning holiday results not performance eye But frankly, as and know coming in that the daily weeks, and, seeing news to of improvement caution keeping bullish. deliver the would a caution where raised.We're we're that's I We seeing similar seeing,We're most seeing early will retailers' we going November. we is And out into be they next the to we're that's gauge. an Week-on-week, and the we're is, over others are clients, for to caution. and all that a come watching the love

looking terrific on delivered, X%. to QX strong terrific being continuing pretty the off the strong enough to we're X% given we with especially season about well. So feel good signs, as it's forward a but not QX, for to us sign QX a to a we said, and short That deliver

cost thinking do how can Okay. And just in is there that on anything one XXXX. about you efficiencies to if the I fact profitability? think realize more, can about you share XXXX some Just

we So, pace about year? of think the how should investment next

Yes.

a program now around have a We operational excellence. and rigor

for growth. operational continued delivering we would platform and ensuring above more flow-through efficiency, capability our also million enables the dollars of the rhythm our and operating call. ability efficient. in to very do of That that $XX $XX I at was look line we're and our taking on at feel see we to We're be more efficiencies, continue need plan we shift clients more knowing to invest for invest on also we to that will our part where very guidance model, good self-service Media on to bottom the XXXX the we where The where But also been operating should not scale say focused Commerce that we've continue excellence, to we about do on but those well. be our of give delivered this So the going enables to where we it's for XXXX. to as million.And ability see focus

with next Stanley. is Matthew Morgan from Cost question The

down and the for you of much 'XX, market have in outpace 'XX guidance market or did 'XX. an there? expecting mix the about same to talked And the follow-up. the micro? you the So will expectation Are weaker? market magnitude before to What's then on be a I macro for step is guess you I of like how outpace to kind it expectation the versus the just

as guidance we'll giving XXXX. our not in But year-end. we're guidance call for all, of after discuss of first XXXX Well, Yes. early always, course,

the term. to on Our and will medium we're in that we long media short, medium market focused on expectations outpace is spend. long to And and term continue particular,

getting market. of where we pretty is spending be the most say, XXXX. last We're was changed to as wanted the and time the the go be sure year that pricing economic we you macro, on wanted would clients. significant.So that's We're the the focus we starting to That feel our product the Retail advertising good frankly, fantastic the of We along this we right. I feel terrific feel beginning the we that the for we is have about the journey. a model would performance making for about meet transparent significantly set We terms Media.And challenge from about with of We XXXX, different. QX ambitions item launches. point our key For with all slowdown make were by to

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so critical. Yes. long-term I'll the We're again remains for term, and weigh our story long strategy just because to it's the just I in in want reiterate because the this same. here

single and winning to to in retailers we that lockstep capabilities that the to them journey much continue with sure how we're in retailers to them ahead We doing those and We're with from growing day and and smallest to retailers. them. the when we're that biggest see respond You'll features retailers, every comes their them. we're win for significantly it make we're

market and you're But addressable total continue terrific that's in sure seeing sustainable, us the they in where market focused make towards the long-term a is And see a see so the is the to that's for we this a now available we economics to closer ourselves work of driving of a clients we're the markets to to on headlong and leadership to to massive, they're us. continue long-term, play to profitability in market the right And our find this, size we position.During that. short-term. we for those with drive position have this -- us, which things, evolve what

can. So to much the as you think out long as term

strong Commerce on another Got it just there it. this was definitely quarter. Audiences, then performance And

think I slide loss signal you in incremental no deck, the quarter. in mentioned the impact

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let to But me those is targeting And so one. it. having very a -- that therefore, speak capability, for powerful not

it Audiences pass it across he Todd, to can who's and me Commerce talk of through. Let the architect total

add is much, really I Megan. Yes. can that but say Thanks, pretty the I that can't simple. growth

marketers customers are attention real customers, past, on their lifetime doing In the those the of splitting at ways and commerce to they're retain new best fell Retargeting new how more between acquiring looking based then customers shoppers drive are If And business, value. who they're growth you think data. really bucket, about to a going cut are those latter marketing and more today, style about former.If the you or is more going to how into acquisition front. is on little bit the look X the and growth activities; at still XX% XX%, fall spend across XX% retention commerce into more, audiences

customers about you're And gave and and an we this together, to to are, both expect you're both activities we seeing thinking that is, spend point, as a rapidly them we with to growth So this that's new why as you seeing continue. us. brought capability already to in Megan's what it avenue are growing

Thornton question is Truist from next The with Matthew Securities.

could. questions, Two I if

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with Google while for now. been a You've working

or So that the been for some my I informs or or learned learnings anything question curious on a would think informs the learnings usability think is, of But about there's XXXX? probably and there I'm that either again, your front. of confidence kind efficacy we about that opinion incrementally confidence just you if have gaining loss have just as XXXX.

Commerce economic clients, the self-service we and clients shift leans also board. around already time. sold can take very scale to It's have in increased new platform model.And the over the with play of coming Yes. We've being of the of volume-based new over our with anticipate mean, we're our I'll first pricing We've continue about the be contracts economic model SaaS-like of renewed Sandbox by along scale pricing our for and services that terms already say, question. shift. in Criteo value to plus scale capabilities the brands where in over and terms that's Privacy question. our other economic And are the It's continuing a large mix pricing that on to terms continue platform are Todd that last part across most the Retail plus I with to and to renew. we clients Media fees hand we really XX pricing we months, would of most more feel to good Media in growth capability delivering. of, already model.So, that I going continuing the into then being fees model and ultimately, bring fees in seen our with to of that I a your by versus

measured. on gained a our thus as far recommendation, far a job do that Privacy bidding Sandbox What of next course, and and we from the do have targeting, the with And really third-party the that Thanks good that of our we've to with Yes. learn is Sandbox has what Privacy is going as recommendation very strong pure traffic we're to next, because a months results feel measurement we're company X a Sarah. traffic January through at past. with have learned commingles going that team. That Matt. learned large as learn we the and we have for we've or waiting back into We, to our targeted, reasonably thereafter cookies, the that partnering we population the with on really in past. can free Google cookie the traffic our of been a cookieless this of rather, QX completely to good see available learn knowledge Chrome. investment lot, lot testing so been what that very and excited we've We're on the and and will made basis.So cookieless for the we're be to, test. lot be we leading go can release share the how testing can for we of very by our made once in be and preparing feeling can But be to we're period, excited into X% be going a

because, on grab speaks me the Let Matthew, Criteo. little it and DNA of a interesting really bit just to it's question one this an

do background twice that regardless to day, want is your same this. on day say as exactly I it's keeping -- Criteo, of as you your ups have the something prize an do ahead, you about an it's years the a ahead. about athlete, eye a years And And for thing. every we a of about I and resilience. day, downs.At athlete, know. the just It's some So as train

through And position for Media, are we same it's Privacy So, focused for tech future years. for laser getting with Sandbox, our it for having trained the our our story the the ad and positioning Commerce on that's twice for we single It a every the that tech day in eye ad the day, DNA prize. on Commerce for developed It provider And day, here. Media. future. the have the is is training

out wanted are. there to an just important throw I So, who of it's just because we that part

There are further questions. no

good now today. Megan, Okay. you. a concludes Thank Sarah This available you, joining. everyone, Todd. We're for day. our Thanks, questions. Thank and for any call additional for Have

you. Thank Bye-bye.

Thank you.

Bye-bye.

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

may You now disconnect.