Criteo S.A.

Good morning and welcome to Criteo's second quarter 2025 earnings call. All participants will be in listen only mode. Should you need assistance, please press star 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 that this event is being recorded. I would now like to turn the conference over to Melanie Dombray, Vice President Investor Relations. Please go ahead.

Good morning everyone and welcome to Criteo's second quarter 2025 earnings call. Joining us on the call today, Chief Executive Officer Michael Komasinski and Chief Financial Officer Sarah Glickman are going to share some prepared remarks. Third persons, our Chief Product Officer and President Performance Media will join us for the Q&A session. As usual, you will find our investor presentation on our Investor Relations website now, as well as our prepared remarks and transcripts after the call. Before we get started, I would like to remind you that our remarks will include forward-looking statements, which reflect Criteo'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 Criteo's business. Except as required by now, 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 ESCC. We will 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 call are against the same period in the prior year. With that, let me now hand it over to Michael.

Thanks, Melanie, and good morning, everyone. Thanks for joining us today. After immersing myself in the business over the past few months, I'm encouraged by what I see. An incredibly resilient company with unique assets and enormous potential. That time has reinforced my conviction in our strategy and in the talent and innovation that will drive our next chapter. Now I'd like to share how we're thinking about the future and positioning our business to address the opportunities ahead. Our vision is ambitious and focused on delivering full funnel, cross-channel, self-service advertising that performs. It's anchored by a solid foundation and grounded in a clear path to execution. We're building a unified, outcome-based advertising platform designed for the next decade of commerce. One that connects demand and supply, optimized for performance at every stage of the buyer journey. All of this is underpinned by a deep competitive mode coming from the combination of our unique commerce data set, cutting edge AI, and global reach. Starting with the demand side of our business, we're advancing intuitive, self-service solutions to attract a broad range of budgets. From performance and trade marketing to national media and serve all types of buyers, including agencies, brands, and SMB advertisers. Our strategy is built on three key levers to reaccelerate growth, cross-channel, full funnel, and self-service. First, we're meeting consumers where they are, whether that's on-site, off-site, increasingly on connected TV, or soon, through AI assistance and agents. Second, we're extending our full funnel capabilities, building on the success of commerce audiences, which is our set of precision targeting tactics that leverage commerce data and advanced AI for customer acquisition and retention. We expect our full funnel approach to unlock a larger share of advertiser spend as we deliver measurable outcomes from discovery to purchase. Third, we're moving towards self-service to drive scale and efficiencies. These initiatives are already expanding our serviceable market, and they're key to long-term, sustainable growth. Moving to the supply side of our business, we offer retailers and traditional publishers -in-class tools to deliver superior advertising performance and maximize yield across retail media and the open web. We have the industry's most expansive retail media footprint, giving us exclusive access to premium global on-site inventory. Our strategy is focused on bringing programmatic flexibility into retail environments, advancing holistic page optimization, and scaling curated supply with retailer data deals easily accessible through any DSP. Together, our demand and supply capabilities create synergies that deliver better outcomes, simplify workflows, and reduce the tech tax. This convergence is already taking shape. The more we scale advertiser demand, the more value we create for media owners. The more exclusive or commerce-enriched supply we bring to market, the more differentiated our performance becomes for advertisers. Last month, that flywheel is working, and we see tremendous opportunities to accelerate it. We see momentum in our platform strategy, reflected in deeper, more strategic partnerships with leading agencies. Last month, we announced an expanded global partnership with Dentsu, marking the first time a holding company is leveraging our complete commerce media platform stack. Today, we're thrilled to announce the recent renewal and expansion of our multi-year global partnership with another major holding company, now also using all of our platform's powerful commerce solutions. These milestones signal growing confidence in our unified offering. Lastly, we're executing with discipline as we lay the foundation for sustainable long-term growth with accelerated innovation. We're embracing the agentic AI opportunity, which we see as an exciting new frontier for commerce, where our scaled and differentiated commerce data positions us to deliver real value. Wherever shopping happens, advertising inevitably follows. As AI assistants and agents change how consumers discover and decide, the ability to surface the right product at the right time becomes even more critical. And that's exactly where we come in. Driving scalable performance in AI-powered environments starts with data. Data that's high quality, structured, and constantly refreshed. In commerce, that requires far more than static product listings. It means access to real-time, actionable data such as inventory levels, pricing, availability, and sourcing, standardized across thousands of retailers. We believe this is where Critio has a unique and durable advantage. We bring product data and shopper journey signals at a scale and precision that differentiates us, powered by a reinforcement loop that continually improves performance. To enable this, we're developing model context protocol, or MCP, support for delivering product and shopper information to AI agents in a way that is real-time, structured, and controlled. Prompt-based recommendations are a natural extension of our strategy, and we're actively engaging with LLM vendors to explore how to best shape the next wave of consumer interaction. We're also advancing how audiences are built and activated as we're moving toward real-time, intelligent audience creation that eliminates the friction of traditional workflows. Our goal is to enable brands and agencies to generate the right audience instantly, without delays from manual queries or data handoffs. At the same time, we're expanding where and how media can be activated as we're embedding marketing capabilities into new environments, including agent interfaces. Ultimately, we're building tools for marketplaces and merchant networks to run full-funnel, cross-channel campaigns with simplicity and scale. To turn vision into impact, we're realigning the organization to sharpen our focus and align execution with opportunity. Our business has strong fundamentals, and we're ambitious in our long-term outlook. We're renewing our focus on performance media with an expanded market approach and accelerated AI innovation to drive our next phase of growth. We're also focused on unlocking the next generation of demand to realize retail media's full potential. Our new structure consolidates product, R&D, and commercial strategy under two seasoned leaders who will take on expanded executive roles. Todd Parsons as Chief Product Officer and President, Performance Media, and Sherry Smith as President, Retail Media. This streamlined organization will help us operate with greater agility, clearer accountability, and set the stage for long-term, sustainable growth. While we believe it will take a few quarters to real accelerate growth, we have a world-class team to execute against our strategy, and we're confident the foundations we're putting in place will bring multi-year benefits. Now turning to our second quarter performance, we delivered solid results reflecting our team's strong execution, starting with performance media. We're encouraged by the sequential improvement in our growth compared to Q1. We're building for durable growth and laying the groundwork for several multi-year growth opportunities that we believe will accelerate as we scale. Commerce Go continues to gain momentum as we simplify how advertisers plan, buy, and optimize across formats and channels. Powered by AI, Commerce Go automates decisions around audiences, channels, and creative, driving better results and lowering our cost to serve. Campaign volume grew 200% quarter over quarter, largely driven by increasing adoption from SMB advertisers and low return. We see Commerce Go as a multi-year revenue growth driver, and we're focused on scaling this momentum by implementing an -to-end self-service, streamlined workflow in the coming quarters. As part of our cross-channel strategy, we expanded our social capabilities last quarter, enabling advertisers to activate Facebook and Instagram inventory at the skew level for global commerce audience campaigns. We have good traction with spend on social campaigns, growing nearly 30% sequentially this quarter. As we expand our full funnel capabilities, we're leaning into brand performance, and early results in CTV show strong potential as a powerful performance marketing channel. A great example is our recent partnership with Jewelry Television. We delivered CTV campaigns that drove 93% new users, a 20% increase in average order value, and more than doubled qualified site visits, clearly demonstrating CTV's ability to deliver measurable outcomes at scale. In addition, we recently announced a new partnership with WPP Media to reach high-intent shoppers at scale across premium connected TV inventory, starting with Roku, Samsung, and Scripps. We're making it easier for advertisers to run audience-led CTV campaigns using curated deal IDs with Commerce Grid, our supply-side platform. By combining rich commerce and identity data, we're helping them reach the right audiences and drive measurable results from initial exposure to purchase. Overall, our business remains resilient, supported by diversification across markets, verticals, and products. We experienced notable strength in APAC again this quarter, largely led by full funnel activation and the success of our Marketplace offering, which allows marketplaces to offer their merchants Criteo's targeting and retargeting tools. We continue to gain market share and travel, up 28% in the second quarter, driven by continued momentum in EMEA and in the Americas. A great example of the measurable impact of our platform is Itaka, Poland's leading travel brand. By activating full funnel reach with cross-channel precision across web, app, and meta, Itaka achieved a 5x return on ad spend and nearly 5x higher click-through rate. A key differentiator for us is our Commerce Grid supply-side platform. It uniquely enables access to commerce audiences with full DSP interoperability and provides the only programmatic path to retail media at scale. It's a growing contributor to our business as agencies and brands ramp up investments to activate commerce audience deals, and several leading retailers now use it to power off-site monetization. Today, over 30% of commerce growth inventory buys run through our SSP, with meaningful upside as adoption continues to grow in the years ahead. All these synergies across our platform are driving more scale, more flexibility, and more value for our partners. Moving on to retail media, which is a long-term growth engine and differentiator for Criteo. As this category evolves, retailers are looking for strategic partners who bring global scale, flexible technology, and deep connections to brand and agency demand. Criteo delivers on all fronts, which enables us to keep adding new retailers and new brands while outpacing market spend growth quarter after quarter. We continue to win our piece, including returning clients, and we're pleased with the traction of our new product launches. After launching shoppable video ads in April, we launched our auction-based display technology in June. Retailer adoption is ramping up rapidly, with 16 retailers already live across all regions in just a month, and this number is expected to double in the coming weeks. Auction-based display is a great example of how we're making retail media supply easier to buy at scale. It's purpose-built to bring programmatic flexibility to retail environments, giving retailers more robust media capabilities like biddable trading optionality, flexible pricing, efficient workflows, and advanced controls for ad relevancy. It complements reservation-based deals to give retailers more flexibility and access to national media budgets. Today, onsite display makes up less than 10% of our retail media business and represents approximately 30 to 40% of our clients' media mix, which shows significant growth potential. We drove close to $400 million in media spend this quarter, up 20% year over year, with over 4,000 brands globally. We continue to see substantial growth from our multi-year partnerships with leading agencies, well above market growth rates, and we're incorporating new demand sources. Our new partnership with Miracle is expected to unlock demand from mid- to long-tail advertisers. Together with Miracle, we enable third-party sellers to easily launch campaigns, boosting product variety without adding operational complexity to retailers. We're deepening agency and API partnerships and expect to incorporate more demand sources moving forward, including through Microsoft, which is progressing well, and other partnerships. We're expanding globally with new wins across all regions, including Thermo Fisher, BJ Full Sail Club, and Grocers Weiss Markets, Winn Dixie, and Harvey Supermarkets via our digital commerce partner Mercatus in the U.S. In closing, we're confident in the strength of our business and the momentum we're driving. We're operating at the intersection of powerful market trends with the assets, capabilities, and strategy to lead and create lasting value for our shareholders. With that, I'll hand it over to Sarah, who will provide more details on our financial results and our outlook.