Criteo S.A.

Good morning and welcome to Criteo's third quarter 2022 earnings call. All participants will be in listen-only mode. Should you need assistance, please press the star key followed by zero. After the prepared remarks, there will be an opportunity to ask questions. To ask a question, please press star, then one. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Melanie Dombray, Director of Investor Relations. Please go ahead, ma'am.

Good morning, everyone, and welcome to Credeo's third quarter 2022 earnings call. Joining us on the call today, Chief Executive Officer Megan Clarkin and Chief Financial Officer Sarah Glickman are going to share some prepared remarks. You will find our prepared remarks and transcripts on our IR website after the call. Before we get started, I would like to remind you that our remarks will include forward-looking statements which reflect Credo's judgments, assumptions, and analysis only as of today. Our actual results may differ materially from current expectations based on the number of factors affecting Credo's business. Except as required by law, we do not undertake any obligation to update any forward-looking statements discussed today. For more information, please refer to the risk factors discussed in our earnings release, as well as our most recent forms 10-K and 10-Q filed with the SEC. We'll also discuss non-GAAP measures of our performance. Definitions and reconciliations to the most directly comparable GAAP metrics are included in our earnings release published today. Finally, unless otherwise stated, all growth comparisons made during this quarter are against the same period in a prior year. With that, Let me now hand it over to Megan.

Thanks, Melanie, and good morning, everyone. Thank you all for joining us today. We're intentionally keeping today's prepared remarks relatively brief as we look forward to sharing more with you at our upcoming Investor Day on Monday. We also look forward to meeting with many of you in person over the coming weeks. Our Investor Day will be the opportunity for us to discuss the substantial progress we've made on our transformation journey to reposition Criteo from a pure play retargeting business to a platform play focused on commerce media. A platform that is self-service and not reliant on third-party signals. We'll show you how our commerce media platform is coming to life, how we plan to unlock its growth potential with our integrated go-to-market strategies, and why we believe we'll win in retail media, and more broadly, in commerce media. We'll also discuss our mid-term financial outlook and our plans to drive profitable growth and long-term shareholder value. Turning to our third quarter highlights, we reached several important milestones this quarter, including the closing of our iPon Web acquisition and the soft launch of Commerce Max, our self-service and first-of-its-kind Demand Side Platform or DSP. Starting with iPon Web. It's only been three months since we closed the strategic acquisition and we're pleased with the progress of our integration and iPon Web's business performance. Our teams are coming together and we're very energized by the unique opportunities to shape the future of commerce media together. iPon Web enhances our scale, and brings our complimentary capabilities on both demand and the supply sides to accelerate the execution of our Commerce Media Platform strategy. The recent launch of Commerce Max demonstrates the progress of our integration. Commerce Max combines the power of our retail media tech and IPONweb's DSP capabilities. Commerce Max empowers brands and agencies to find valuable commerce audiences on retailer websites and activate onsite sponsored and display ads. It extends to commerce audiences that exist offsite across the open internet, leveraging multiple channels, including video and CTV. Our Commerce Max DSP also provides closed-loop measurement capabilities to help marketers understand what performs, why, and how, in near real-time. Our value proposition is unique, and our clients, including some of the largest brands, agencies, and retailers worldwide, have been enthusiastic about what we're bringing to market. We expect Commerce Max to be instrumental in the growth of off-site for retail media in future years. Moving to our third quarter performance, we delivered constant currency contribution ex-tax growth of 14% in line with our expectations. In retail media, our highly differentiated technology and superior offering continue to drive our momentum with existing and new clients. We have a solid pipeline. In head-to-head testing, retailers are shifting from competitors to Criteo. We recently announced a three-year exclusive partnership with media mark Saturn. Europe's leading consumer electronic retailer across 13 countries. We won after delivering the best performance in a competitive RFP. In the Americas, we signed new deals with large retailers, including Giant Eagle and Metro Canada. And we're seeing traction and upselling retail media offsite and display with existing clients. We also expanded our retail media footprint in APAC, with the addition of iStyle Ads, Ascle Japan, and Chemist Warehouse Australia. In addition, we onboarded close to 100 brands this quarter. In a tough macro environment, brands want to get as close to the point of sale as they possibly can, and there's nothing closer than advertising on a retailer's site. In marketing solutions, we experienced mixed trends with more moderate or more targeted spending from several clients across regions. In this environment, we benefit from a diversified client base. As we approach the holiday season, our clients are facing challenges related to high inflation and macroeconomic uncertainties. While we experienced an early start to the holiday season last year, we're seeing several marketers and brands slow down their spend. Despite this, they continue to prioritize performance and rely on our solutions to drive sales, and return on ad spend. A perfect example of this is that we've recently joined the Shopify Plus certified ad program, which simplifies and automates Shopify merchants' ability to leverage our acquisition and retention solutions. While still early days, we saw a 30% increase in the number of new Shopify merchants using Criteo this quarter. compared to the number of merchants we added in the second quarter. These merchants come to us for performance as they typically benefit from three times more traffic and five times more sales when using our solutions. Lastly, we're excited to explore new ways to extend our commerce value proposition to social platforms. We're now actually testing new use cases for brands, marketers, and retailers who would like to access Meta's ad inventory on Facebook and Instagram globally. We look forward to sharing more in the coming months. As we enter the fourth quarter and prepare for 2023, we remain laser-focused on execution to capitalize on the significant opportunities ahead of us, and we remain committed to cost discipline. We believe that we have laid the groundwork for long-term sustainable growth, and we're pleased to see that our vision resonates with the industry at large. I also want to express my sincere gratitude to all Critegos globally, including those who joined us from IPONweb, for their tremendous commitment and hard work to deliver exceptional service to our clients and realize our vision. With that, I'll now turn the call over to Sarah, who will provide more details on our financial results and our outlook. Sarah.