Q3 2023 Criteo SA Earnings Call

Speaker 1: Good morning and welcome to Criter set quarter 2023 earnings call.

Good morning, and welcome to <unk> quarter 2023 earnings call all participants will be in listen only mode should you need assistance. Please press the star key followed by zero.

Speaker 1: 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

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 rewarded.

Speaker 1: I would now like to turn the conference over to Melanie Dumber, Vice President in President of benzene.

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

Speaker 2: Good morning everyone and welcome to Crypto Source Quarter 2023 RNA 4—

Good morning, everyone and welcome to critical third quarter 2023 earnings call.

Speaker 2: Joining us on the call today, Chief Executive Officer Megan Clarkin and Chief Financial Officer Sarah Gleefman are going to share some prepared remarks.

Joining us on the call today are Chief Executive Officer, Megan Clarken, Chief Financial Officer, Matt are going to share some prepared remarks.

Speaker 2: Some persons or chief products officer, we join us for the Q&A session. As usual, we find our investor presentation on our IAR website now as well as our prepared remarks and transcripts after the call.

So first times, our chief product officer will join us for the Q&A session I'm.

As usual you refine our investor presentation on our IR website, now, whereas our prepared remarks and.

I'll turn the call.

Speaker 2: Before we get started, I would like to remind you that our remarks will include forward-looking statements.

Before we get started I would like to remind you that our remarks will include forward looking statements.

Speaker 2: which reflects credulous judgments, assumptions and analysis only about today.

Which reflects but it was just that.

And then as it does.

Today our.

Speaker 2: or actual withdrawals made for materially from care and expectations, based on the number of factors that can create a business. Except as required by law, we do not undertake any obligations to update any forward-looking statements discussed today.

Our actual results may differ materially from current expectations based on a number of factors that could cause there.

Matt.

Except as required by law, we do not undertake any obligation to update any forward looking statements discussed today.

Speaker 2: For more information, please refer to the risk factors discussed in our earnings release as well as the remote-recent for our Stenky and Tenshu 5 with Yes.

For information please refer to the risk factors discussed in our earnings release as well.

All right. Thank you guys.

Speaker 2: We would also discuss non- GAAP measures of our performance. Definitions and reconsulations to the most directly comparable gap metrics are included in our earnings relief studies today.

We will also discuss non-GAAP measures.

Definitions and reconciliations to the most directly comparable GAAP metrics are included in our earnings release published today.

Speaker 2: Find the being of this otherwise stated, all growth comparison is made during this corollary against the same period in a prior year. With that, let me know how I need over to Megan.

Finally, unless otherwise stated all growth comparisons made during these core ever again.

In the prior year with that let me now hand, it over to Megan.

Speaker 3: Thanks Melanie, and good morning everyone. Thank you for joining us today. I'm pleased to report that we delivered another solid quarter with top line and adjusted EBITDA above our expectations. Driven by organic growth acceleration, market share gains and retail media, and strong cost discipline.

Thanks, Melanie and good morning, everyone. Thank you for joining us today.

I'm pleased to report that we delivered another solid quarter with top line and adjusted EBITDA above that expectation.

Expectations, driven by organic growth acceleration market share gains in retail media and strong cost discipline.

Speaker 3: Our performance is a testament to our team's hard work and the trust about clients who continue to prioritize performance and rely on our solutions to drive sales and return on ads, man.

Our performance is a testament to our team's hard work and the trust of our clients, who continue to prioritize performance and rely on our solutions to drive sales and our channel.

With embarked on a significant transformation journey since I joined the <unk> four years ago and.

Speaker 3: We've embarked on a significant transformation journey since I joined Critio four years ago. And we've successfully moved our business from a single solution retargeting play to a multi-solution platform offering and to end AI-enabled ad tech services with a focus on commerce.

And we successfully moved our business from a single solution re targeting play to a mobile Pos solution platform offering.

And I know and I think citizens with a focus on commerce.

Speaker 3: We've demonstrated resilience, and we're now positioned at the forefront of the changes in our industry. All while navigating the impacts of signal loss, the global pandemic, geopolitical conflicts, and a volatile macroeconomic backdrop.

We've demonstrated resilience and we're now positioned at the forefront of the changes in our industry.

All while navigating the impacts of signal loss, the global pandemic, yes, political conflicts in a volatile macroeconomic backdrop.

Speaker 3: Our unique comments data at scale, deep integration with retailers, differentiated technology, advanced AI, world-class team, and R&B powerhouse had been the foundation of our strategy to become the leading ad tech provider for commerce media, the fourth wave, in digital advertising.

You need to kind of stay there and scale deep integration with retailers is differentiated technology advanced I O N World class team and R&D powerhouse has been the foundation of our strategy to become the leading provider for comments media the fourth wave and digital advertising.

Sure.

Speaker 3: Since I'm invested a one year ago, we focus continued to focus our business on areas of high growth and expanded our leadership position and commerce media.

Since our Investor day, one year ago with focus continue to focus our business on areas in high brightness and extended our leadership position in comments media.

Speaker 3: with maintains a high-save-do ratio and built the only unified AI-driven platform that directly connects advertisers with retailers and publishers to drive commerce on retailers sites and the open internet.

We've maintained a high say do ratio and built the ugly unified AI driven platform that directly connect advertisers with retailers and publishers to drive comments on retailer sites and the open internet.

Speaker 3: Over the past 12 months, we've successfully integrated our acquisition of iPom Web.

Over the past 12 months, we have successfully integrated our acquisition of iPhone <unk> and.

Speaker 3: and brought our commerce media platform to life for our clients.

And brought M Commerce media platform to life for our clients.

Speaker 3: We further expanded our partnerships with agencies, retailers, and supply partners, just as we said we would.

We further expanded our partnerships with agencies retailers and supply partners just as we said we would.

Speaker 3: We're well on our way to delivering over a billion dollars in contribution ex-tax this year for the first time in CREO's history, including over 200 million dollars in retail media alone. But we have a leading market footprint.

We're well on our way to delivering over $1 billion in contribution ex taxes for the first time in <unk> history, including the $200 million and retail media alone, we have a leading market footprint.

Speaker 3: We've achieved a number of important milestones since we unveiled our Commerce Media platform vision last year. Let me highlight some of these achievements since then and during the third quarter.

We've achieved a number of important milestones since we unveiled alcohol mass media platform vision last year, let me highlight some of these achievements since then and during the third quarter.

Speaker 3: Starting with retail media and our self-service commerce max demand site platform, which became generally available in September .

Starting with retail media and Ourself service Commerce Mac demand side platform.

Which became generally available in September.

Speaker 3: We're the first to unify the retail media ecosystem with a multi-retailer, multi-channel, and multi-format approach.

The fifth to unify the retail media ecosystem with a multi retailer multichannel and multi format approach.

We believe that deep integrations with retailers to ensure accuracy and fidelity of the data to execute against the market is exactly what the market is looking for fully integrated capabilities.

Speaker 3: We believe our deep integrations with retailers ensure accuracy and fidelity of the data to execute against the market is exactly what the market is looking for. Fully integrated capabilities to advertise to shoppers.

To advertise to shop is at.

Speaker 3: at the digital point of sale across multiple retail media networks and to leverage unique retail audiences built on real shopper data for targeting offsite with full funnel closed loop measurements.

At the digital point of sale across multiple retail media networks and to leverage unique retail audiences.

A real shopping data for targeting I'll start with full funnel.

Closed loop measurement.

Speaker 3: It's just the beginning, but we've already received strong feedback from our partners, including Group M, Flywheel and Dentsu and their brands.

It's just the beginning but we've already received strong feedback from our partners, including repayment flywheel and density and the brands.

Speaker 3: Agencies and brands are increasingly leaning into retail media as the most effective closed-loop marketing investment, tying an ad directly to a sale.

Agencies and brands are increasingly leaning in to retail media is the most effective closed loop marketing investments tying it directly to asylum and.

Speaker 3: In addition to driving incremental sales, RetailMedia helps brands better understand who are buying their products, what type of shopper prefers their brands, and who those shoppers are that...

In addition to driving incremental sales, we call media helps brands better understand it.

This is a buying their products what type of shopper presents their brands.

And who those shoppers into the category.

The retail media spend going through our platform grew 39% this quarter.

Speaker 3: The retail media spend going through our platform grew 39% this quarter. As we've grown our footprint to 2,500 brands and agencies are increasingly contributing to our growth.

We've grown our footprint to 2500 brands.

And agencies are increasingly increasingly contributing to our growth.

Speaker 3: Overall, the large agency hold codes have increased their retail media spend with Credio by 50% so far this year in the US and doubled their spend in Europe and APAC compared to the same period last year.

Overall, the large agency hold times have increased their retail media spend with <unk> by 50%. So far this year in the U S and double this spend in Europe, and APAC compared to the same period last year.

Speaker 3: At our Retail Media for All event in September , we also shared more about Commerce Yield, our retailer monetization solution suite that offers flexibility for retailers and marketplaces to monetize their online, offline, and in-store assets.

And our retail media for all events in September.

We also shared more about commerce, Neil I'll retire a monetization solution suite that often spread stability for retailers and marketplaces to monetize their online offline and in store assets.

Speaker 3: We're now partnered with 220 retailers after adding 10 new retailers in Q3. And we've more than doubled the number of countries we operate in over the past year.

We now partner with 220 retailers after adding.

With new retailers in Q3, and we've more than doubled the number of countries we operate in over the past year.

We are proud to have won the trust of an increasing number of retailers globally.

Speaker 3: We're proud to have won the trust of an increasing number of retailers globally, including most recently Sachs, Doc Morris, and Mercatus.

Including most recently, the Morris and the types of <unk> and.

Speaker 3: In addition, we had two exciting new wins this quarter. They are two of the largest U.S. retailers. We'll announce the.

In addition, we had two.

So I think new wins this quarter.

Two of the largest U S retailers.

Well announce these we were able to.

Speaker 3: We're pleased to now be the partner of choice for close to 60% of the top 25 U.S. retailers that have monetization programs.

We're pleased to now be the partner of choice for close to 60% of the top 25 U S retailers.

That hasn't monetization programs.

We are pushing ahead to drive unification, whereas advertising ecosystem based solutions and standards across multi retailer okay market place.

Speaker 3: We're pushing ahead to drive unification with advertising ecosystem-based solutions and standards across multi-retailer, multi-marketplace, and multi-commerce environments.

Also I've commerce environments.

Speaker 3: We've been actively investing in key areas of measurement and insight with the aim to drive an even more impactful set of solutions for brands and their agencies to reach their full potential with retail media.

We've been actively investing in key areas of measurement and insights with the aim to drive an even more impactful set of solutions for brands and their agencies to reach their full potential with retail media.

Speaker 3: This includes partnering with industry leaders, such as a trusted measurement provider, Integral Ad Science.

This includes partnering with industry leaders, such as a trusted the trusted measurement provider integral AD science with this brands can be assure that media buy is a big thing there and to reaching real uses across any onsite AD format and that they are measured using industry.

Speaker 3: With this, brands can be assured that media buys have been seen, their ads are reaching real users across any onsite ad format, and that they are measured using industry standards so that they can compare results.

Band it so that they can compare results.

Speaker 3: Well, measurement is important in sites and analytics are critical navigation needs for clients and the differentiators for critty, because of both our access to such extensive data set.

Well measurement is important insights and analytics are critical navigation names for clients in a differentiated and feel pretty good.

Because of the boats now access to such extensive datasets.

Speaker 3: and our patented AI-powered digital shelf analytics.

Person to AI powered digital shelf analytics.

Speaker 3: We're empowering retail media businesses with our commerce insights, offering to better inform monetization strategies and drive larger brand investment.

We're empowering retail media businesses without comments insights offering to better inform monetization strategy.

Drive the launch of brand investment as well.

Speaker 3: Walmart Connect Mexico is successfully leveraging these insights and almost triple brand spending in Q3 compared to last year. It's still early days for most of our clients. But we're excited to see that retailers and brands are increasingly taking advantage of the compelling retail media opportunity.

Not connect Mexicali.

Is successfully leveraging these insights.

And almost tripled brand spend in Q3 compared to last year.

It's still early days for most of our clients, but we're excited to see that retailers and brands.

Increasingly taking advantage of the compelling retail media opportunity.

Speaker 3: Over the past year, the average number of retailers that brands are advertising on has increased by over 60% across our client base.

Over the past year, the average number of retailers that brands are advertising on.

Has increased by over 60% across our client base.

Speaker 3: Next up, let me talk about how we've been accelerating growth in our supply business since the successful launch of our Commerce Grid Supply-Side Platform, or SSP, in June .

Next up let me talk about how it's been accelerating growth in our supply business.

Since the successful launch of our commerce grid supply side platform SSP in June.

Speaker 3: Thomas Griggs had a great debut and is quickly gaining share.

Scripps.

Great. Thank you and quickly gaining share.

Speaker 3: A Commerce Grid FSP represents another path for us to capture incremental commerce media budget from established...

Congress is pea represents another path for us to capture incremental commerce medium budget.

From established Dsp's.

Speaker 3: We're already seeing incremental demand from top agency hold codes for our proprietary commerce audiences and supply packages. And we're excited to expand this opportunity to retailer audiences as we're about to launch our first campaign leveraging retailer data for audience extension across the open internet through Commerce Grid.

We're already seeing incremental demand from top agency holdco for our proprietary commerce audiences and supply packages.

And we're excited to expand this opportunity to reach our audiences as we are about to launch our first campaign leveraging retailer data for audience extension across the open internet through commerce grid.

Speaker 3: This represents a powerful digital advertising shift for advertisers looking to engage with real shoppers and a big growth opportunity for 2024.

This represents a POW powerful digital advertising shifts for advertisers looking to engage with them real shoppers and a big growth opportunity for 2024.

Moving onto marketing solution.

Speaker 3: more clients are activating all his own strategies to acquire and retain customers using our Commerce Growth Suite service.

More clients are activating always on strategies to acquire and retain customers using our comments growth suite.

Yeah.

Speaker 3: As a reminder, always on refers to a service where advertisers commit spend with us to drive the best results the best way we see fit.

As a reminder, always own refers to extend this where advertisers can they spend with us to drive the best result, the best way, we see fit.

Speaker 3: As we have evolved beyond retargeting, that spend is optimised for our clients up and down the advertising funnel.

As we have evolved beyond very cognizant that spend is optimized for our clients up and down the advertising funnel.

Speaker 3: In this context, we're excited by the continued traction of commerce audiences to complement retargeting as marketers are looking for more touch points with consumers across their buyer journey to drive performance.

In this context, we are excited by the continued traction of commerce audiences to complement retired and then as marketers are looking for more touch points with consumers across the board in June two.

To drive performance and investments are paying off as our clients leveraging our broader and richer audience fits from targeting new shoppers.

Speaker 3: Our investments are paying off as our clients are leveraging a broader and richer audience step from targeting new shoppers who resemble existing high-value customers to finding relevant shoppers with contextual targeting or engaging shoppers who are actively researching the products and services that they offer.

Favorable existing high value customers, just finding relevant shoppers with contextual targeting or engaging shoppers who are actively researching the products and services that they offer.

Speaker 3: Our ability to target highly relevant and valuable in-market audiences is helping us gain ground against competitors that provide less precise targeting on the open internet.

Our ability to target highly relevant and valuable in market audiences is helping us gain ground against competitors that provide less precise targeting on the open internet.

Speaker 3: In addition, we expanded our partnership with Shopify as the first open internet platform integrated into the Shopify audience's products.

In addition, we expanded our partnership with Shopify.

It's the first open internet platform integrated into the Shopify audiences product Shopify plus merchants can now instantly upload first party audiences.

Speaker 3: Shopify plus merchants can now instantly upload first party audiences of high, medium, and potential intent generators by Shopify. And then activate campaigns with Critio. This opens up opportunities to attract new Shopify plus merchants that haven't used our solutions before and may consider using Critio alongside Meta, Google, Pinterest, TikTok or Snap.

Hi, medium and potential intent generated by Shopify, and then activate campaigns with pretty.

This opens up opportunities to attract new shopify plus merchants.

That haven't used escalations before and May consider using Korea, alongside meta Google Pinterest kicked off will snap.

Speaker 3: Lastly, we're encouraged by our prospects to extend our commerce value proposition to Meta. We've demonstrated our ability to drive incremental performance to our existing open web campaigns when accessing Meta's large-scale inventory and powerful community.

Lastly, we're encouraged by our prospects to extend their commerce value proposition to mess up.

We've demonstrated our ability to drive incremental performance to our existing web campaigns, when accessing message large scale inventory and powerful communities.

Speaker 3: Following successful testing, we have an opportunity to extend the reach of our campaigns on Facebook and Instagram for hundreds of clients in Q4 and beyond.

Following successful testing, we have an opportunity to extend the reach of our campaigns on Facebook and Instagram.

Hundreds of clients in Q4 and beyond.

As a testament to the power of that platform play we've seen an acceleration in Upselling and cross selling dynamics with 38% of our clients now using more than one pretty EIS solution compared to 33% a year ago.

Speaker 3: As a testament to the power of our platform play, we've seen an acceleration in upselling and cross-selling dynamics with 38% of our clients now using more than one Criteo solution compared to 33% a year ago.

Speaker 3: Within marketing solutions, clients that have embraced the full power about acquisition and retention solutions spent on average 30% more than a year ago in Q3. And this my momentum is continuing.

Within marketing solutions clients that had been embraced the full power of our acquisition and retention solutions spends on average 30% more than a year ago in Q3 and this momentum is continuing.

Speaker 3: These dynamics have contributed to rebalancing our top one next with retargeting, now representing less than half of our business for the first time ever, this quarter.

These dynamics have contributed to rebalancing our mix with re targeting now representing less than half of that business for the first time ever this quarter.

A critical part of that transformation is to lay the foundation for the future.

Speaker 3: A critical part of our transformation is to lay the foundation for the future.

Speaker 3: This includes AI-driven innovation to fuel future growth and our multi-pronged dressability strategy to enhance our resilience post-the party identified.

This includes AI, driven innovation to fuel future growth and I'm, a multi pronged traceability strategy to enhance our resilience.

Third party identifiers.

We have privileged access to the largest commerce dataset on the open internet to feed out AI models, and we continue to integrate generative AI into a platform with a focus on improving performance and user experience for our clients.

Speaker 3: We have privileged access to the largest commerce data set on the open internet to feed our AI models. And we continue to integrate generative AI into our platform with a focus on improving performance and user experience for our clients and optimizing our service.

And optimizing our service delivery process.

Speaker 3: We're planning to offer AI-powered creative tools by intelligent image generation to clients to enhance performance. In retail media, we're focused on bringing responsive ads into conversational environments as more consumers are utilizing chatbots on retail or website.

We are planning to offer AI powered creative tools like intelligent image generation.

Two clients to enhance performance and retail media, we're focused on bringing sponsored ads into conversational environment says more consumer in say utilizing chat box on retailer websites.

Speaker 3: Internally, we're using AI to empower our sales team to drive more effective and innuently to enhance client experience through faster response to inquiry.

Internally, we're using AI to empower our sales book.

I was trying to drive more effective new client leads an enhanced client experience through faster response to inquiries.

Speaker 3: Turning to our multi-pronged addressability strategy, we focus on three pillars to succeed in environments deprived of third-today signals, including our first-party data strategy, our participation in Google's privacy sandbox, and also our access to more closed and authenticated environments like retailer sites and social platforms.

Turning to our multi pronged profitability strategy.

We focused on three pillars to succeed and environments deprived.

The tiny signals, including our first party data strategy opposite participation in Google's privacy sandbox and also access to more caused an authenticated environments like retail sites and social platforms.

Speaker 3: First, we continue to progress on scaling our first party media network.

First we continue to progress on scaling on first party media network to reach target consumers with consented first party data matching and cookie less environments remember weeks lag significantly more hashed emails or him and similar alternative industry Ids, which may.

Speaker 3: to retarget consumers with consented social tidy data matching and coochieless environments. Remember, we collect significantly more hash emails or hymns than similar alternative industry IDs, which means that we can leverage hash emails.

So we can leverage hashed emails.

Speaker 3: as interoperable match keys to connect to the supply across our network. And we're pleased to see him bidding increase every quarter.

Speaker 3: This is a crucial advantage to effectively find and monetize comments audiences.

Speaker 3: On the open internet, Gunsey Industry finally moves beyond third party signal.

Speaker 3: Second, we remain one of the largest scale apartments in the privacy sandbox to which we've dedicated significant.

Speaker 3: Early next year we plan to assess the effectiveness of the privacy sandbox API. So the Google faces out third-party cookies for one percent of Chrome users for the web.

Speaker 3: The real-world results would be critical to further assess the economic associated with the privacy sandbox solution, its scalability, and the industry is readiness to absorb the significant changes in technical complexity.

Speaker 3: The differentiation lies now the ability to help our clients reach consumers and close and authenticate environments like retailer sites and social platforms.

Get the help that clients reached <unk> caused and authenticated environments like retailers thought concession platforms.

Speaker 3: Our extensive partnership with our retailers enables privileged access to third-party data, but hundreds of millions of monthly uses. And with potentially expanding our reach to billions of loans and uses on social platforms or other environments where we expect to participate in the future.

Oh extensive partnership without retailers enables privilege <unk> data for hundreds of millions of monthly uses.

And with potentially expanding our reach to billions of people out and use it sounds so I should platforms or other environments, where we expect to participate in the future.

To conclude.

Speaker 3: We believe we're better positioned than we've ever been. Ever been before to drive performance for our clients across the entire market and final.

We believe we better position than <unk> <unk> <unk>.

It had been before to drive performance for our clients across the <unk>.

Speaker 3: According to a recent forest survey, 90% of retailers say demand from advertisers for comments media has increased significantly during the past 12 months.

According to a recent <unk> survey, 90% of the <unk> demand from advertises for comments media has increased significantly during the past 12 months.

Speaker 3: as there's nothing better than advertising at the digital point of title or accessing in.

Is there is nothing better than advertising at the digital point of style.

August or accessing in market chauffeurs.

Speaker 3: We're about to enter a critical year for digital advertising. And our primary focus will be to deliver performance and continuity for our clients. While continuing to invest in our road areas, the scale of our comments media platform.

We're about to enter a critical year for digital advertising and our primary focus will be Elizabeth performance and continuity for our clients.

While continuing to invest in outgrowths areas to scale or comments media platform.

Speaker 3: It's important to acknowledge that our path won't be linear, but we believe we're built a strong note through a combination of unique and proprietary technology, comments data, and retail expertise to navigate the significant changes ahead of us, and capitalise on the next waves of digital advertising and indeed the future of digital advertising. With that, I'll hand it over to Sarah to discuss our financial results now.

It's important to acknowledge that are possible be linear, but we believe with built a strong through a combination of unique and proprietary technology comments data and retail expertise to navigate the significant changes ahead of us and capitalized.

The next wives of digital advertising can indeed, the future of digital advertising would that are handed over to Sarah to discuss the financial results and I'll have a coke.

Speaker 4: Thank you, Megan, and good morning, everyone. Our third quarter performance reflects our strong execution despite a mixed macroeconomic environment.

Thank you Megan and good morning, everyone.

Outfit quarter performance reflects a strong execution, despite a mixed macro economic environment.

Speaker 4: revenue was $469 million and contribution tax was $245 million. Reported contribution tax reflects a year over year, $5 million favorable for X-in.

Revenue was $469 million and contribution next tech with $245 million reported contribution ecotaxes flexing year over year $5 million favorable for Rex impact.

Speaker 4: At constant currency, our third quarter contribution extract grew by 13% on top of 14% rose in Q3 2022.

Constant currency, a third quarter contribution X tech by 17% on top of 14th of <unk> 320 22.

Speaker 4: This includes organic growth of 8% driven by strong growth in retail media of 29% and a return to growth in marketing solutions up 1% year over year at constant current.

This includes organic growth of 8% driven by strong borrowed some retail media up 29% and a return to growth in marketing solutions, 1% year over year at constant currency.

Speaker 4: Within marketing solutions, commerce audience was up 31%, partially upset by retargeting being down 7%, and expected.

Within marketing solutions comments audience was up 31%, partially upset by we talk it seems being down 7% unexpected.

IPhone web confusion contributed $34 million.

Speaker 4: IPOMweb contributed $34 million.

Speaker 4: We continue to shift our top line mix to our fast growing new solutions for retail media, commerce audiences and IPON work that represented 51% of our contribution X-TAC in our third quarter. Our client retention at 90% remains resilient.

We continued to shift our top line mixed to a fast growing new solutions for retail media comments oriented suits and so iPhone what that represented 51 per cent of our contribution <unk> you know third quarter.

Ah client retention at 90% remains <unk>.

Tony <unk> business segments in retail media revenue with $50 million contribution at Tech grew 29% a constant currency to $48 million.

Speaker 4: Turning to our business segments in retail media revenue is $50 million, a contribution act tacked through 29% at constant currency to $48 million.

Speaker 4: Our growth is primarily driven by our client base in the U.S. and our retailer marketplaces.

Oh gross is primarily driven by our client base in the U S and the retailer marketplaces.

Speaker 4: In Q2, we added 10 retailers and 100 brands.

Q2, we added Henry Taylor at 100 bread.

And.

Fame, we tied a contribution next tack retention was up sequentially need to 123%.

Speaker 4: Our same retail contribution extract retention was up to 223 percent.

Speaker 4: We also saw strong growth from our agency partners and robust brand bookings, mainly in CPG, our largest vertical, as brands shift more spend to digital channels.

We also are so strong calls from our agency partners and robust branch located mainly in C. P. G. A large as vertical as Brian shipped most spend two digital channels.

Speaker 4: The retail media then we activated in Q3 grew 39% year over year. Above market growth, demonstrating that we continue to gain share.

The retail immediate been reactivated in Q3, 39% year over year above market growth demonstrating that we continue to gang sure.

Speaker 4: In marketing solutions revenue was $386 million and contribution X-TAC with $163 million with strong grossing commerce audiences offset by labor retargety.

<unk> revenue was $386 million and contribution next tech with $163 million with stroke or other things come back to audiences upset by <unk>.

Speaker 4: While retargeting was down 7% year over year, it improved sequentially as the integration of our deep learning algorithms and advanced vector database technology into our recommendation engine has helped marketers enhance campaign performance.

Why don't we talk thing was that on the seventh of <unk>, yet it improved sequentially as the integration about deep learning algorithms and advanced affect our database technology into a recommendation engine has helped locked his enhance campaign performance.

Speaker 4: Our clients continue to operate in a choppy economic retail and consumer environment with scrutiny on their advertising dollars. That being said, our retail vertical improves the quantity and our travel vertical continues to perform well up 35% year-over-year in Q3 and above 100% on a two-year stat page.

Our clients continue to operate in a choppy economic retail and consumer environment with scrutiny on their appetite and daughters.

That being said retail, but could improve sequentially and I'll travel brcko continues to fulfill well, 35% a year in Q3 and above 100 per cent on a two day stuck basis.

Speaker 4: We delivered strong growth in commerce audiences up 31% year-over-year, or 60% on a two-year stack basis, driven by cross-selling dynamics as our clients value having one partner to help them engage with consumers across their entire buying journey.

We delivered strong growth in comments, Woody and save up to 31% <unk> or 60% on a two yes that faces driven by cross selling dynamics as our clients value, having one policy to help them engage with Keith <unk> across the <unk>.

IPhone words performance without double digits on a standalone basis, primarily driven by accelerated growth Carolco mess S. S. P.

Speaker 4: I've on web's performance with up double digits on the standard status, primarily driven by accelerated growth for our commerce SSP.

We deliver an adjusted EBITDA of $68 million in Q3, 2023, non-GAAP operating expenses increased 5% knee Rodriguez Jutta iPhone web polishing you upset by a cost reduction actions as.

Speaker 4: We deliver an adjusted EBIDAR of $68 million in Q3 2023. Nung app operating expenses increased 5% neurodue year due to iPhone web, partially offset by our cost reduction actions. As we transform our business, we continue to drive cost efficiencies while allocating resources to grow areas.

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

Speaker 4: We are on track to deliver higher cost saving closer to $70 million, given our rigorous focus on cost management and efficiency, largely offsetting growth in the.

We are on track to deliver higher cost savings crisis is $17 million given a rigorous focus on cost management and efficiencies largely upsetting grocery investment.

Moving down the P&L depreciation and amortization increased 28% in Q3, 20 $23 million to $25 million.

Speaker 4: Moving down the PNL, depreciation and amortization increased 28% in Q3 2023 to 25 million dollars.

Speaker 4: Non-share, non-cash, share-based compensation expense increased to $24 million, including $7 million related to treasury shares, granted to IPON words found there as part of the acquisition.

Sure non-cash shed based compensation expense increased to $24 million, including $7 million related to treasury shares <unk> iPhone Webb found that as part of the acquisition.

A weighted average diluted check countless 60.2 million.

Speaker 4: Our weighted average diluted share count was 60.2 million.

Speaker 4: This resulted in diluted earnings for share of 12 cents and adjusted diluted in PSF 71 cents in Q3 2023.

This resulted in dilute your dining fish at 12 cents and adjusted dialing into the P. S and 71 cents in Q3 2023.

We have a strong financial position with solid cash generation and no longterm that we.

Speaker 4: We have a strong financial position with solid cash generation and no long-term data.

Speaker 4: We have $747 million in total liquidity, as of the end of September , which gives us significant financial flexibility to execute our growth and capital allocation strategy.

We have $747 million in total Nicole N T. As at the end of September, which gives us significant financial flexibility to execute uprose and catch to that vacation strategy.

As expected free cash, but it was for a million dollars in Q3 due to the <unk> payment of $43 million.

Speaker 4: As expected, free cash flow was $4 million in Q3 due to the Kenneal payment of $43 million.

We anticipate significant free cash flow generation in the fourth quarter in line with a seasonality about business, including retail media Michael <unk>.

Speaker 4: We anticipate significant free cash flow generation in the fourth quarter, in line with the seasonality of our business, including retail media and iPhone web.

Speaker 4: The primary goal of our capital allocation is to invest in high ROI organic investment and value enhancing their acquisitions and to return capital to shareholders, the ORR share by that program. We deployed $103 million of capital for sharey purchases in the first nine months of 2023. This included...

The Prime me go one of our cats that application is to invest in high R. O Y organic investment uhm value in <unk> acquisitions and to return capital to shareholders Viola share buyback program wait.

<unk> $103 million of capital to share repurchases in the last nine months of 2023.

This included.

Speaker 4: Point 9 human share we purchased in Q3 at an average cost of $30.4 per share.

Quintin 9 million shares repurchased in Q3 at an average cost of 30.4 dollars per shot.

Turning to our financial out which reflects our expectations as of today November 2nd.

Speaker 4: Turning to our financial outlook, which reflects our expectations as of today, November 2nd.

Speaker 4: As we enter the last and largest quarter of the year, we remain cautious in our planning, giving the significant unforetundities in the macroeconomic and geopolitical environment.

As we entered the loft and <unk> once a year, we remain cautious about planning, giving the significant onside spinach and cheese in the macroeconomic M. G M political environment.

Speaker 4: We saw muted trends in October , including softer media trading and lower traffic for iPollWeb.

We saw you can try within up teladoc, including stuffed immediate training and lower traffic for iPhone.

Speaker 4: As we move to the holiday season, our failed teams are actively engaged with our clients.

As we moved to the holiday season sales teams are activating engage with our clients.

To deliver performance and strong results.

Speaker 4: to deliver performance and strong results.

Speaker 4: Overall, we expect Q4 contribution XTAC of $296 million to $302 million, growing by 5% to 7% at constant current.

Overall, we expect Q4 contribution eggs tack of $296 million to $302 million growing by 5% to 7% a constant currency.

Speaker 4: We estimate forex changes to drive a negative year-over-year impact of about $2 to $4 million on contribution X-PAC in Q4, given the weakening of the euro and yen against the U.S. dollar.

We estimate for Rex changes to drive a negative <unk> of about two to four millions on his own contribution X Pac in queue for giving given the weakening authentic euro and yen against the U S dollar.

We expect adjusted EBITDA between $109 million and $150 million.

Speaker 4: We expect to just the debault between $109 million and $115 million.

Speaker 4: For the four year, we now anticipate contribution ex-tact growth of approximately 9% to 10% at constant currency in 2023.

For the full yeah, we know anticipate contribution <unk> of approximately 9% to 10% at constant currency in 2023.

This is judy with a lot of single digit organic growth and the full year impact from our acquisition of iPhone with.

Speaker 4: This assumes low single digit organic growth and the full year impact from my acquisition of iPhone Are we all right ?

Speaker 4: We continue to expect contribution extract growth of 25 to 30% for retail media.

We continue to expect contribution next tech growth of 25% to 30% to retell media.

Speaker 4: For commerce audiences, we expect contribution tax growth of approximately 30% as advertisers continue to shift more budgets than adult bulls by more activation.

The combat audience is we expect contribution next tech growth of approximately 30% as advertising continued to shake small budget and adult full bottle activation.

Speaker 4: We now anticipate an adjusted eBedale margin of approximately 27% to 28% for 2023.

We know anticipate an adjusted EBITDA margin of approximately 27 per cent to 28% of 2023.

This reflects the first blow through <unk>, and a 50 basis points impact from incremental effects headwinds due to the weakening of the euro and yen against the U S dollar.

Speaker 4: This reflects the flow through of our refined top line and a 50 basis points impact from incremental SX headwind due to the weakening of the Euro and Yen against the US dollar.

Speaker 4: We expect a normalised tax rate of around 25% in 2023. We anticipate capex of about $90 million mainly related to the planned renewals of our data centers, which most spent was incurred in the third half of the year.

We expect a normalised tax rates of around 25% in 2023.

We anticipate capex of about $19 million menu related to the plan renewals about data centers, which might spend with them.

<unk> with a yeah.

Speaker 4: For modelling purposes, we assume a flat number of shares outstanding in 2023.

The modeling purposes, we assume a flat number of shares outstanding in 2023.

Speaker 4: Lastly, we are making great progress towards our long-term ambitions and our strategic plans to establish ourselves as the Aztec partner of choice for Commerce Media.

Lastly, we are making great progress towards a long term ambitions and all strategic plans to establish ourselves as D. Aztec partner of choice Aacomas media.

Along this journey I'll commitment to our investors is to continue to be transparent.

Speaker 4: Along this journey, our commitment to our investors is to continue to be transparent.

Speaker 4: I would like to take a few minutes to provide an update on the financial aspects of our long-term growth ambitions that we shared with you this time last year at our investor date. The assumptions that underpins our financial ambitions at that time and anticipated some, not all the dynamics, that have affected the market over the past 12 months.

I would like to take a few minutes to provide an update on the financial aspects of our long term growth ambitions that we share. It with you. This time last year at time invested right.

The assumptions that underpins, our financial financial ambition at that time, and so it is anticipated some <unk>.

Not all the dynamics of perfect at the market over the past 12 months.

Speaker 4: Starting with the macroeconomic environment, as you already know, during late 2022, we, along with many in our industry, were impacted by a significant slowdown in advertising demand.

Duncan with the <unk> economic environment as you already know during the night 2022 way along with many and our industry what impacted by a significant slowdown in appetite in Vermont.

Speaker 4: Although the macro backdrop looks more stable today, it is still highly volatile and this impacts our run rate for growth.

Although the macro back problems more stable today, if you still highly volatile ammunition packs are run rate for growth.

Next as you know glucose is entering the final stages of their privacy Sandbox initiative.

Speaker 4: Next, as you know, Google is entering the final stages of their Privacy Sandboxed Initiative.

Speaker 4: While Critio has leaned into a close collaboration with Google and we remain confident about our own loneliness, there are uncertainties related to Google's plan to test with live traffic and defecate third party cookies in the same year.

While the <unk> had leans into a close collaboration with Google and we remain confident about other than readiness.

<unk> and fees related to Google's plan to test with live traffic and deprecate the coffee cookies in the same year.

Firstly at the market, leading tech provide a retail media, we I, enabling new long term sustainable and profitable business model without partners.

Speaker 4: Thirdly, as a market leading tech provider in retail media, we are enabling long-term, sustainable and profitable business models with our partners.

Speaker 4: For our most mature partners, our economic pricing model is evolving to drive further scale, higher lifetime value, and more profitability.

For our most mature partners economic pricing model is evolving to drive further scale high lifetime value more profitability.

Speaker 4: In this context, our largest retailer is expected to shift to a multi-year, fast-like revenue-seer structure for the services we provide.

In this context Ah largest retailer is expected to shift to a multi year fast like revenue fee structure for the services we provide.

Speaker 5: This self-service model enables increased efficiency and opens up visibility into future revenue. And importantly, it drives further spend to our platform.

The self service model enables increased efficiencies and then sends out disability into future revenue.

And importantly, it drive <unk> platform.

In addition to requiring satellite feeds alright can omit pricing model, all selling foods take right volume base fees and additional fees the value added services.

Speaker 4: In addition to recurring satellite fees, our economic pricing model also includes take rate volume-based fees and additional fees for evaluated services.

Speaker 5: As a result of these changes, while we expect our retail media growth media spend to continue to outpace the market, we currently anticipate that our 2024 retail media contribution ex-tech growth rate could be lower in 2013.

As a result of these changes while we expect a retail media grows media spend to continue to outpace the market. We currently anticipate that all 2024 retail media contribution next tech growth rate could be lover.

That in 2023.

Speaker 4: We also continue to win new clients at a rapid pace, including two of the US largest retailers in recent weeks. And we are confident that CREO is well positioned for sustainable growth and increased profitability.

We also continue to win new clients at a rapid pace, including two of the U S largest retitles in recent weeks.

We are confident that Korea, as well positioned for sustainable growth and increase profitability.

Speaker 4: Given these three factors are ambition to achieve $1.4 billion in contribution to the next pack is not expected to materialise within the 2025 timeframe.

Given these three factors are ambition to achieve $1.4 billion in contributions <unk>, if not expecting to materialize within the 2025 time frame.

Speaker 5: Our strategy remains the same, our execution is tight. We are laser-focused on top line scale and profitable growth across our entire business with operational cost efficiencies and margin expansion over time and solid cash generation.

A strategy remains the same execution is tight we are laser focused on the helpline scale unprofitable growth across our entire business with operational cost efficiencies emergent expansion over time and solid cash generation.

Speaker 5: Women are the largest growth area of the market, and our focus on winning share in commerce media is relegna.

Waving the largest growth area of the market and I'll focus of winning shed in commerce media is relentless.

Speaker 5: Our strategy and execution is already payin' off.

Strategy and execution is already paid enough.

As we continue to execute and gangs scale, we will report <unk> progressing realizing all round vision to be the partner of choice for call mass media today and for the long term.

Speaker 4: As we continue to execute and gain scale, we will report for our progress in realising our ambition to be the partner of choice for Commerce Media today and for the long term.

Speaker 5: The future is wide open. And with that, I'll turn over to the operator to begin the Q&A session.

Future is wide open.

That I'll turn it over to the operators has to be giving the Q&A session.

Speaker 1: Thank you. To ask a question, please for a star then one.

Thank you.

Well ask a question. Please press Star then one.

Speaker 1: If you are using Expecarphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two.

Pick a phone please.

Keith.

Question. Please press start and then too.

This time, we will pass.

<unk>.

Mmm.

[noise] My first question is from the line.

Speaker 1: First question is from the line of Mark Kelly with Steffel. Please go ahead.

Please go ahead.

Thank you good good morning.

Speaker 6: Sarah, can we dive into the last part of your prepared remarks, just about the 2025 targets?

Can we dive into you know the last part of your prepared remarks, just about 2025 targets.

Speaker 6: You know, when I think about all of the newer wins you've had, whether it's Uber, other marquee names, and then you just hinted at, you know, two really large retailers in the U.S. that

You don't want to think about all of the the newer ones you've had whether it's Uber other marquee names and then you just enter that you know to really large retailers and that you watch that.

Speaker 6: You just can't announce yet, you know, when I take all of that positive commentary and kind of win momentum and pair that with, you know, your thoughts on retail media for next year and the growth expectations.

<unk> you know what I would take all of that positive commentary I'm trying to win momentum compare that with you know your.

Your thoughts on retail muted for next year and the girls expectations. Those two don't totally a line in my head. So maybe it did you walk through the movie pieces, a little bit more you know outside of the the fee structure changes and some of the other moving pieces you know, obviously weaker challenging macro environment.

Speaker 6: Those two don't totally align in my head. So maybe can you walk through the moving pieces a little bit more outside of the fee structure changes?

Speaker 6: and some of the other moving pieces, you know, obviously weaker, challenging macro environment, but, you know, just how are those new wins layering in? And I guess maybe what are you seeing from some of your more legacy clients? Thank you.

You know just how are those new wins later again.

Maybe what are you, saying from some of your more legacy coins.

Yeah. Thank smoke well first of all I I do want to focus on the shake as we have in retail media today with we're delivering services to 60% of U S. Ah top retailers and we continue to deliver.

Speaker 7: Yes, thanks, Mark. Well, first of all, I do want to focus on the share gains we have in retail media.

Speaker 7: We're delivering services to 60% of our US top retailers and we continue to deliver 50% of our European retailers.

Alright European Retitled.

Speaker 7: The strategy hasn't changed, the clients are terrific and we continue to meet with them.

The strategy isn't change the clients terrific and we continued to meet with them.

Speaker 7: weekly daily talking about strategy, talking about operations, talking about execution.

Weekly daily was talking about strategy token about operations talking about execution. What has changed for 2024 is our largest customer. We we've recently engaged in a renewal and we've moved to an economic pricing model that is most at like that's a scale play around Mitchell play.

Speaker 7: What has changed for 2024 is our largest customer, we've recently engaged in a renewal and we've moved to an economic pricing model that is more satellite.

Speaker 7: That's a skilled player, a mature player. We continue to drive massive value to them and we continue to, which also delivers, of course, value for us.

You know, we continue to drive massive value to them Ami continued to which also delivered a close by you for us.

Speaker 7: But with that, we have more stuff like recurring revenues, so it's really shifting the economic model. We do continue to have the volume base take great sees.

With that we have <unk> like recurring revenue service really shifting me economic model. We do continue to have the volume by 10th grade fees and we continue to have pricing structure for the value at services Alright expectation is that the national Brian dollars are going to shift into our ecosystem.

Speaker 7: and we continue to have pricing structures for the value-outs services.

Speaker 7: Our expectation is that the national brand dollars are going to shift into our ecosystem. It all takes time. And so, as a market maker, we feel very good about where we are in terms of client base, in terms of our product, in terms of our strategy. However, for 2024, we're starting from a lower starting point versus our ambitions in the 2025 ambition.

It will take time and so at the mall to make we feel very good about where we are in terms of client base instead of so about product to tons of our strategy.

However for 2024, we starting from a lower starting point <unk> ambitions in the 20th 25 ambition.

Speaker 7: and I'll expectation is we'll take, I would say a shorter term, um, hit on the growth rate.

And my expectation is will take I would say assured a ton uhm hit on the growth rate.

Speaker 7: first is where we expected to be in 2024. That's really the biggest change, but it's a short term, I would say.

Buses will be expected to be in 2024, that's really the biggest change it but it's a short time I would say.

Speaker 8: adjustment to the growth rate with the expectation of short medium and long term gains on all the things you spoke about client-based product mix and and continue to shift dollars. And we're relentless on looking and ensuring that we continue to drive those brand dollars into the credio platform.

Adjustment to the growth rate with the expectation of short medium and long term gains on all the things you spoke about client base pulled up mix and continues to ship dollars.

And we're relentless unlucky and ensuring that we continue to drive those brands all this into the <unk> platform.

Okay alright. Thanks, so much maybe just one quick follow up just some.

Speaker 6: the SAS fee structure and then the take rate on top of it. I guess, are you seeing more competitive pressures from other retail media network providers? I guess, what was the reason for the fee structure?

The the fast food structure.

And then would take right on top of it I guess are you seeing more competitive pressures from other retail media.

Network provider, so I guess what was the.

You know the reason for the fee structure change.

Speaker 7: Yeah, I would say the fee structure change is more in line with our newer contracts, which so we, we see it as more.

Yeah, I would say the fee structure changes more in line with a new contract, which so we we see it as more of a an adjustment to the way, we do business and with scale will continue to drive drive in a more feasible scale. We're also continuing to add capability.

Speaker 7: an adjustment to the way we do business. And with scale, we'll continue to drive more seasonal scale.

Speaker 7: We're also continuing to add capabilities into our commerce media platform. We delivered a lot this year, of course, with CMAX, the focus on cGrid as well for retailer curation. And as you know from Todd, there's a roadmap over the next year, two years.

He's into all combos media platform you have <unk>. This year of course with the Max the focus on secret as well for retained a curation and as you know from <unk>, There's a roadmap home for the next year two years that we continue to look at how can we drive.

Speaker 7: that we continue to look at how can we drive.

Speaker 7: digital spend for brands into the commerce media platform.

To spend four brands into the call mass media platform.

Speaker 3: Yeah, I'll just add, it's a good question and good topic. Sarah said before that, you know, our strategy remains the same. It does and it's working. We're growing shared by the day and certainly winning in the space.

Yeah, I'll I'll just add it says it's a good a good question a good topics servicing before that album strategy remains the same it it does and it's working growing shared by the diet and and <unk> winning in the space.

Speaker 3: It's when we're carving out a marketplace here. We're building something for the long term and it is a long term vision. We're core of our strategy is to win the retailers. We continue to do that.

<unk> wood carving out a marketplace yeah, we're building something for a long time and it is long term vision uhm, where core about strategies to win the retailers we continue to do that.

Speaker 3: The second part about strategies to grow with the retailers. And we do that by...

The second part of the best strategies to grow with the retailers and we do that by.

Speaker 3: driving demand to them but also building out capabilities that they can subscribe to through a test type model.

Driving demand to them and will simply wigging out capabilities that they can subscribe to throw assess type model and then as with building out this market places to be flexible and work with our clients to evolve our pricing models two ones that work for both of us that create sustainable.

Speaker 3: And then as we're building out this marketplaces to be flexible and work with our clients to

Speaker 3: evolve our pricing models to ones that work for both of us, that create sustainable, profitable economics for both of us.

Profitable economics for both of US and so these are the things that that you know, we're working through S were relatively Italy, and and and the stench of ability.

Speaker 3: And so these are the things that we're working through as we're relatively early in the stage of building up this market place. But it doesn't take away from the strategy and the strategies that may unfold. And that's what we're talking about.

Building out this marketplace, but it doesn't take away from the strategy and the strategy you certainly unfolding.

Thanks for making mixer.

My next question is from.

Please go ahead.

Speaker 9: Hey, good morning. It's got with the city. I just want to.

Alright. Good morning, you got with the city I just wanted to.

Speaker 9: I'm not really fully understanding. First of all, I want to make sure I heard you, Sarah, the retail media contribution X pack would be lower in 2024 than it is in 2023. And so maybe first, what's prompting the shift to the staff like model was that it was a bit...

Keep kind of speaking into that appointment because I'm not fully understanding first of all I want to make sure I heard you Uhm zero the.

Retail media contribution next part could be lower than 2024, and 2023 and so maybe first what's pumping the the the ship to the south like model with the.

Speaker 9: more from you guys, or more from your client. And then I guess the piece that I'm not totally getting is why.

You guys more from your client and then I guess <unk>.

<unk>.

Oh, we're getting is why why <unk>.

Speaker 7: revenue generated, right? So you should theoretically be growing the, you know, billing next year. Or, and, but, but you're getting a lot of a contribution as you ship this <expletive> model. So can you help just please explain that to the better. Yeah, first of all, the tariff by retail, Nunea will, will continue to grow.

Revenue generated <unk>, you should be growing you'll go into next year.

What are you getting lots of a contribution that'd be shipped success model. So can you help <unk>.

It was a butterfly that.

First of all to clarify retail media.

We'll continue to garage.

Speaker 7: What we're anticipating is that the growth rate will be low, it's certainly lower than we had assumed in our ambition. And we anticipate it will be lower than our 2023 growth rate. As a short term perspective.

What we're anticipating is that the growth rate will be <unk>, certainly lower than we had assumed <unk> ambition.

And we anticipate it will be lower than 20 twenty-three rugs right.

Sure mm mm perspective.

Speaker 5: The biggest shift in the model with our largest scaled retailer.

The biggest shift in the model with a large scales retailer.

Speaker 7: is that we were doing more crinic solo for all brands. And as our

Is that we were doing more pretty solid for all branches.

And add retailers shift.

Speaker 7: and many have already shifted to this model. Some will do their own cells for their largest brands and we will continue to sell for the medium to long tail. In addition to that, we receive seed for everything that goes through our platform, which is all the volume. That's the biggest change.

And many of them already shifted to this model some will do.

<unk> fell to the largest brands and we will continue to sell for for the medium to long tail. In addition to that we receive fees for everything that goes through all platform, which is older volume that's the the biggest change.

Speaker 7: And again, we do anticipate and we do see many opportunities for us to continue to drive scale, not just with this large-scale player, but also with the significant ecosystem we have in the U.S. and in Europe , and of course, as we continue to build our Asia pack as well.

And again, we do anticipate and we do see many opportunities for us to continue to drive scale not just with this large scale player, but also with the significant ecosystem. We have in the U S and in Europe and of course, as we continue to build out Asia packet as well.

Okay. That's helpful.

Speaker 9: Okay, that's helpful. Sorry, I misunderstood. And then with the launch of Commerce Max, maybe...

Misunderstood and then with the launch of Congress, Max maybe just a little bit on early reads Uhm. What are you hearing from it gives you some partners and within that being also.

Speaker 9: Share a little bit on early reads, what you're hearing from agency and partners. And within that being also Omnicon made an acquisition this week, that feels like they're moving more into become media on their own or commerce media as a whole. And Omnicon has been a key partner. So does that change anything with your relationship with Omnicon at all?

Uhm Omnicom maiden acquisition.

Just this week, but feels like they're moving more.

Can you tell media on their own or <unk> for the whole.

<unk> has been a key partner so does that change anything with your relationship with with them to come at all.

Speaker 4: So, so just one thing on the last part of your question, I do want to emphasize that our retail media, our comment media platforms, is self-service, so a huge benefit.

I'm. So sorry, just one thing on the last part of your question I do want to emphasize the retail media all come with medium platform is self service a huge benefit.

Speaker 7: of driving scale and driving to these new economic models is there is a shift to more self-service.

Driving scale and driving to these new economic models is there is a shift to most self service and that will enhance profitability over time, we all <unk>. We do have positive contribution across all businesses. So the expectation is no annual overdrive scale and deliver top lines available. So.

Speaker 7: And that will enhance our profitability over time.

Speaker 7: We do have positive contribution across our businesses. So the expectation is not only will we drive to scale and deliver top line, but we'll also continue to deliver our profitability overall for critty out. So those are other key factors as we look at the platform. In terms of CMAX.

Continue to deliver alright <unk>.

Profitability of grilled for <unk>, the key factors as we look at the at the platform.

And tons of C. Max Uhm.

Speaker 7: We've had terrific traction in terms of the number of retailers, brands and agencies coming into that platform. It's going to take time to see the dollars, so we're starting to see the flow through coming through.

We we've had terrific traction in terms of the number of retailers brands and agencies coming into that platform. It's gonna take time to see the dollars. So we assign to see the plans for coming through.

Speaker 7: in Q4. We just launched in September , as you know, and our expectation is that we'll continue to drive in 2024. The conversations are terrific.

In queue for we just launched in September as you know in our expectation if that will continue to drive in 2024 at the conversations are terrific.

Speaker 7: The contracts that we're seeing, or sorry, the agreements that we're seeing with the agencies and brands are incredibly encouraging. And our retailers are absolutely in London.

The contract so we're saying Oh, sorry, the agreements that were saying with the agencies and brand incredibly encouraging and retailers are absolutely Lind Linden.

Speaker 3: So that one's, again, we're excited about CMAX and the traction. We had a really great launch of that event, it seems like only weeks ago, and so the follow-up is definitely coming, but the momentum is building around that. I think you asked also about Flywheel Omnicom, is that correct?

Seven that one's once again, we're excited about the Max and attraction, we haven't really bright lunches elephant uhm.

It seems like many weeks ago. Instead of follow up is is definitely coming but that momentum is is is building around that I think he lost or sorry.

About.

That's fine we will omnicom is that correct.

Speaker 9: Yeah, just because they've been an important partner here. So is that change the partnership at all, the relationship?

Yeah, just <unk>.

So does that change the partnership with all relationships.

Speaker 3: Now it doesn't change the partnership at all. The relationship's still strong. It actually what it does do is it further sort of validates the importance of retail media.

Now it does it doesn't change the partnership at all the relationships strong it actually what it dumpster is it's.

The sort of validates the importance of free time media.

Speaker 3: So as more and more agencies are leaning into their own capabilities to be able to stand up teams and technology to...

So as more and more agencies are leaving it into their own capabilities to be able to stand up teams and technology to to accommodate brands asks for retail media spend. This is just validates that that I can see some really leaning into this <unk>.

Speaker 3: accommodate brand asking for detail media spend.

Speaker 3: This is just validate that agencies are really leaning into this. They're not making every media buy as part of social buy.

<unk> medium by as part of a social by Tomorrow.

Speaker 3: a buy on another type of media. It's very positive. If you look through the, I call it the supply chain, I guess, of the ways that technology is used all the way through, from the conversation with the brand all the way through to the buy.

On another type of media, which is very positive if you look through the the the <unk>.

Call. It the supply chain I guess, a <unk> technology is used all the way through from that conversation with the brand all the way through to the by flywheel is right up to the very end of that at the very top of that and we work with them to activate activate device. So again very very very positive for the.

Speaker 3: Flywheel is right up to the very end of that, at the very top of that.

Speaker 7: and we work with them to activate their buys. So again, very positive for retail media and commerce media as a whole, and we continue to enjoy our relationship with them. Yeah, and just to add to that, Fly was one of the biggest buyers of retail media, utilizing our APIs. They're a fantastic partner with us. We've done a lot of cross-marketing with them as well at events.

For for for retirement and your comments made your eyes are halls, and we continue to enjoy a relationship with them yeah, I'm interested to add to that flag flying with one of the biggest bias of retail media Utilising Alrighty I stubbed fantastic time with US we've done a lot of across the moxie with them as well as defense.

They're in housing some of the tools. So they can buy a crossbow tell medium networks, we see that as opposed to just rough and of course, the increases that Ryan operational efficiency from an omnicom perspective and ultimately.

Speaker 7: They're in-housing some of the tools, so they can buy across retail media networks. We see that as a positive for us, and of course, it increases their own operational efficiency from an Omnicom perspective. And ultimately, agencies are shifting to create commerce media centers of excellence, which we see as a terrific thing.

Agencies are shifting to create come mass media centres of excellence, which we see as a terrific.

Speaker 7: fine for us especially given our whole co-relationships.

Sign ferocity, especially given a whole kind of relationships.

Are you done with your question.

Thank you.

Speaker 1: The next question is from the line of Bank Anut with J.P. Morgan. Please go ahead.

The next question is from the line of that.

With J P. Morgan. Please go ahead.

Hey, this is Katie on for job. Thanks for taking the question I just wanted to add a little bit more into the four Q outlook I think that'd be organic growth and it's been five to decelerate slightly burst three T level. So can you provide some more color on what you're seeing quarter to date that might be making it a little bit more cautious and how we should think about typing.

Speaker 10: Hey, this is Katie on For Doug. Thanks for taking the question. I just want to dive a little bit more into before to you outlook. I think that the organic growth and is implied to decelerate slightly versus three-two levels. So can you just provide some more color on what you're seeing in quarter to date that might be making you a little bit more cautious and how we should think about sizing, some of these moving pieces like macro, geopolitical conflict and the holiday season so far.

And stomach moving pieces like macro geopolitical complex and holidays.

Our thanks.

Speaker 7: Absolutely. I mean, we saw it soft October , so that's the starting point, especially with trading patterns, media trading. In terms of the holiday season, of course we're expecting a terrific holiday season after the itself teams are all eaten. We're not seeing an early start to holiday season, so that's the caution.

Absolutely I mean, we still have a self dot <unk>. So that's that's a starting point, especially with trading Patton's media trading.

Tens of the holiday season of closer I expected.

Perfect holiday season, I'll see itself teams or <unk>, we're not seeing an already stopped a sales to holiday season. So that's the <unk>.

Speaker 7: And that's, of course, I would say we're similar to.

And that's the question I would stay with similar to <unk>.

Speaker 7: most others in terms of watching and seeing. We're bullish. We know we love to deliver performance for our clients, and we're leaning all in. But that's where our portion is, is knowing that we're not seeing an early holiday season, and frankly, reading the daily news and seeing some of the concerns raised. We're going to be keeping a close eye on the retailers' results as they come out.

Most others in terms of watching and seeing Uhm. We're bullish we now we got to deliver performance for our clients and we're leaving all in but that's where a portion is knowing that we're not seeing a 90 holiday season, then frankly reading the daily news and seeing some of the concerns right.

We're gonna be keeping a close eye on the retailers results as they come out over the next few weeks and that will be a K H, we come a week, we all see an improvement coming into November sorry, good signs, but not not enough for us to to sign off on on a terrific.

Speaker 7: over the next few weeks and that will be a gauge. Week on week we are seeing improvement coming into November .

Speaker 7: So good signs, but not enough for us to sign off on a terrific curve.

Q for especially given.

Speaker 8: Q4 especially given it's a pretty short season with the five or six

Pretty short season with the the survivor six that being said, we feel terrific about the strong Q3 with the lettuce and we're looking forward to continue to deliver a strong Q for as well.

Speaker 8: That being said, we feel terrific about the strong Q3 we delivered and we're looking forward to continue to deliver a strong Q4 as well.

Speaker 10: Okay, thanks. And if I can just do one more, is there anything you can share and have to think about 2024 profitability? Just thinking about the fact that you realize and cost efficiencies in 2023. So how do we think about the pace of investments next year? Thanks.

Okay. Thanks, and if I could just do one more is there anything you can share and how to think about 2024 profitability just thinking about the fact that you rely on cost efficiencies in 2023 that has we think about you know the paint that's been vaccinated next year.

Speaker 8: Yeah, we have a program now in a rigor around operational excellence. So we've been very focused on our operating model or operational excellence.

Yeah, we we have a program now and Ah breaker around operational excellent. So we've been very focused on our operating model or operational excellence on knowing where we <unk>, we should be taking more efficiencies, but also where we need to invest surprise, we're not gonna cave guidance of 2020.

Speaker 8: on knowing where we should be taking more efficiencies, but also where we need to invest for growth. We're not going to give guidance for 2024 on this call, but I would say we feel very good about the $70 million that we delivered in 2023. That was above our plan of $60 million. And it's part of our...

<unk>, but I would say we feel very good about the $70 million that we delivered in 2023 that was about the plan of $60 million and it's part of.

Writing.

<unk> that we will continue to look at web two B C. A b.

Speaker 8: rhythm that we will continue to look at where do we see ability to invest and also where do we see ability to continue to be more efficient. The shifts to the commerce media platform and the self service capability enables more efficiency and the continued focus on ensuring that we're delivering for all of our clients at scale also enables flow through of those dollars to the bottom line as well.

<unk> to invest and also where do we see ability to continue to be more efficient the shipped to the comments media platform and the self service capability enables more efficiency.

And they continued focus on ensuring that we're delivering for scientists scale also enables fly through upsized. All this to the bottom line as well.

Okay. Thanks.

The next question is from Matthew.

Speaker 1: The next question is from Matthew Coff with Morgan Stanley .

Morgan Stanley. Please go ahead.

Speaker 9: Hi everybody, thanks for staying to questions. I guess on the guidance for 24 and kind of like the expectation step down for 25, how much of it is macro versus micro? You talked about an expectation to outpace the market in 24. Are you expecting to outpace the market to the same magnitude you did before? Just the market will be weaker. What's the mix there?

Hi, everybody. Thanks for taking the questions I guess on the <unk> guidance for 24.

And and and kind of like the the expectation stepped down for 25, how much of it is makeovers micros do you talk about an expectation to outpace the market and 24 are you expecting to outpace the market to the same magnitude you did before just you know the market will be weaker what what what's the <unk> that I can follow up.

Thank you.

Speaker 7: Yeah, first of all, first of all, we're not giving guidance for 2024, but of course, we, you know, as always, we'll discuss guidance in our early 2024 call after year end. Our expectations is that we will continue to outpace the market on media spend, and we're focused on short, medium and long-term and a particular medium to long-term.

Yeah, <unk> well first of all we're not giving guidance of 2024, but a cool sweet you know as as always will will discuss guidance and not funny early 2024, so after ear and our expectations is that we will continue to outpace the the market on media spend.

Mm I focused on short medium and long term in a particular medium to long term.

The 2024 of the most of the challenge is the macros.

Speaker 8: For 2024, the most of the challenge is the macro.

Speaker 7: I would say, slow down from the beginning of...

If they slowed down from the beginning of Q4 last year that was pretty significant set a starting point is significantly different that would be the key I tunes. That's change the focus on the ambitions to me, where we wanted to be by 2025.

Speaker 8: Q4 last year that was pretty significant. So the starting point is significantly different. That would be the key

Speaker 8: item that's changed the focus on the ambition to meet where we wanted to be by 2025. Yeah, we're making a...

Yeah, we're making a market.

Speaker 8: at the same time getting the product right, we feel fantastic about our launches.

Spending time getting the product right, we feel fantastic about our lunches, we feel good about the economic times that we set with appliance we feel terrific about the pricing model, we have for performance advertising M for retail media and frankly, you wanted to make sure. We were transparent with all of you you know as we go along.

Speaker 8: We feel good about the economic terms that we set with our clients. We feel terrific about the pricing model we have for performance advertising and for retail media. And, frankly, we wanted to make sure we were transparent with all of you as we go along this journey. So the uncertainty includes privacy standbox. We feel very good about where we will be for next year internally. It's a major dynamic shift for our industry.

This journey sorry, the uncertainty includes privacy sandbox, we feel very good about where we where we will be for next year into late it's a major dynamics shift for industry and that's all gonna happen in 2024 from testing to deprecation.

Speaker 8: And that's all going to happen in 2024 from testing to defecation.

Speaker 8: That's the biggest disruption the advertising industry has seen in the past 20 years. So there is of course some uncertainty as it was.

That's the biggest disruption in the advertising industry seen in the past 20 years.

So there is a cool some uncertainty as it relates to that.

Speaker 3: Yeah, I'll just wait again, because I want to reiterate the long term story here, because it's just so critical. We're in this for the long term, and our strategy remains to Spain.

Yeah, I'll I'll, just <unk> the longterm store here because it's just so critical we're in this for a long time and now strategy remains the same.

Speaker 3: you'll see that we continue to win retailers, and from the biggest retailers to the smallest retailers.

You'll see that we continue to win retailers and from the biggest retailers to the smallest retire was winning them were significantly hit when it comes to the features and capabilities and how much would you mind for those retailers uhm, we respond to them every single day and make sure that we're in lockstep with them and <unk>.

Speaker 3: We're winning them. We're significantly ahead when it comes to features and capabilities and how much we're doing for those retailers.

Speaker 3: We respond to them every single day and make sure that we're in lockstep with them in their journey.

And then when growing with them and so this is this is.

Speaker 3: and that we're growing with them. And so this is a this is a long-term marketplace of which we find ourselves in a terrific position.

Longterm market place of which we find ourselves in is terrific physician <unk>.

Speaker 3: During this, we have to continue to work with those clients to evolve their economics to make sure they're long-term sustainable, focused on the right things, they drive profitability for us.

<unk>, we have to continue to work with those clients too evolve the economics to make sure there long-term signable focused on the right things that drive profitability for us and and that's that's what you're saying in the short term, but this is we C continue to see Mastiff uhm.

Speaker 3: And that's what you're saying in the short term. But this is, we continue to see a massive, a total addressable,

<unk> market for us.

Speaker 3: We now see closer to the market, so as the market that's available to us, and we're driving headlong towards our leadership position and that. So think out to the local term as much.

With me now and see closer to the market size of the market that's available to us Ah my driving headlong towards L. L leadership position on that so so thanks and capture a longterm as much as you can.

Speaker 6: God, thank you. And then just on commerce audiences, it was definitely another strong performance there, this quarter. I think you mentioned in the slide deck, no incremental signal loss impact in the quarter. So I guess what is motivating people to lean in to commerce audiences, even as kind of retargeting is declining somewhat year on year? Is it just preparing for signal loss next year? Like why are people doing it so aggressively now when retargeting is, you know, it's not getting any worse?

Got it. Thank you and then just on commerce audiences.

Another strong performance there this quarter I think you mentioned in the slide back you know no incremental signal loss of impact in the quarter.

What is what is motivating people to lean in to commerce audience is even though it's kind of re targeting it's declining somewhat you're on your is it just preparing for signal loss next year like why why are people doing it so aggressively now when we targeting as it is.

Not getting any worse in Q3.

Well, it's a new tactic for us we talked about it for a little while.

Speaker 3: What is the new tactic for us? We talked about it for a little while.

Speaker 3: And it's a newish tactic for us, and as I said before,

And it's it is a new it's a it's a newish tactics for awesome as I said before with wanted to expand beyond re targeting to offer solutions that go up <unk> and our clients are looking for for those that optionality to be able to move their dollars around depending on what objective.

Speaker 3: We've wanted to expand beyond retargeting to offer solutions that go up a funnel and our clients are looking for those that optionality to be able to move their dollars around depending on what objectives they're trying to meet. ?P?

They are trying to make him.

Comments audiences as we said when we were doing Alabama last year, and some advice Saddam audiences that a shop for audiences better promise based audience as as opposed to people who might be you know searching the family trade or [laughter] doing doing different activities, but not close to the point of ssilence or having those.

Speaker 3: As we said when we were doing our event last year, it's sort of based on audiences that are shopper audiences, that are promised based audiences as opposed to...

Speaker 3: people who may be searching their family tree or doing different activities but not close to the point of sale. And so having that capability there for targeting is a very powerful one. But let me not speak to it, let me pass it across to Todd, who's the architect of Connors Audience, and he can talk it through.

That capability therefore for targeting is a very powerful one, but let me not speak to let me pass it across to policy Uhm. So the architecture of commerce audience and he can talk it sir.

Yeah, I faced Megan I can't add that much but I can say that the growth is really pretty simple. If you think of how growth marketers are doing business there splitting their attention between acquiring new customers. The best new customers, who are shoppers based on <unk>.

Speaker 11: Yeah, thanks Megan. I can't add that much, but I can say that the growth is really pretty simple. If you.

Speaker 11: Think of how growth marketers are doing business. They're splitting their attention between inquiring.

Speaker 11: New customers, the best new customers who, you know, are shoppers based on real commerce data.

Commerce data and then they're looking at ways to retain those customers and drive more lifetime value in the past three targeting really fell into more of the ladder bucket and commerce audience is Paul more into former Uhm. If you look at how spent is cut across those two activities today is.

Speaker 11: And then they're looking at ways to retain those customers and drive more lifetime value. In the past, retargeting really fell into...

Speaker 11: more the latter bucket and commerce audiences fall more into the former.

Speaker 11: If you look at how spent is cut across those two activities

Speaker 11: Today about 30% is still going to retention style marketing and about 60 or 65% a little bit more going to growth.

<unk>, 30% is still going to retention style marketing and about about 60 or 65% a little bit more going to growth on the acquisition front. So what you're seeing in this growth is <unk> to magenta point, we brought a new capability to customers that are already thinking about.

Speaker 11: on the acquisitions run. So what you're seeing in this growth is, we, to Megan's point, we brought a new capability to customers.

Speaker 11: that are already thinking about both activities together and we gave them an avenue to spend both with us.

Both activities together and we gave them an avenue to spam, both with US and that's why you're seeing this growing as rapidly as you are and and we expect it to continue.

Speaker 11: And that's why you're seeing this growing as rapidly as you are and we expect it to continue.

Thank you.

[noise]. The next question is from Matthew.

With choice.

Please go ahead.

Speaker 12: Yeah, hey, good morning. Two questions if I could. First on the...

Yeah, Hey, good morning, two two questions if I could first on me.

Speaker 12: Retail me a shift that you're seeing with your top client more of a self-serve model. Is there any way to think about?

Retail media ship that you're saying with your top client more of a self serve models is there any way to think about.

Speaker 12: what percentage of retail media is still tied to a more full service, you know, take great take model and still could, could shift to more of a self-serve model. That would be the first question. Second question and maybe this one's for Todd.

What percentage of retail media is still tied to a more full service you know take a great gig model in the still could could shift to more of a self serve model that'd be the first question second question and maybe this one's for Todd.

Speaker 12: The privacy sandbox has been open for testing, you've been working with Google for a while now. So my question is, have we learned anything about just the usability or the efficacy that informs or incrementally informs your opinion for 2024? I would think that there's probably some learnings either gaining confidence or loss of confidence as you think about 2024, but a gap is kind of curious if there have been learnings on that front. Thanks.

Privacy sandbox, that's been open protesting you've been working for with Google for for for Awhile. Now. So my question is how do we learned anything about just use the ability or the efficacy that informs or incremental informs your opinion for 2024, I would think that there's probably some learning.

Either gaining confidence or loss of confidence that you think about 2024, but I'm just kinda curious if there had been learning some on that front. Thanks, so much.

Speaker 8: Yeah, I'll take the first part of that question. I mean, in terms of the retail medium model with our economic model with our client.

Yeah I'll take the first part of that question I mean, it says that the retail medium model with our economic model with our clients.

Speaker 8: We feel very good about the economic pricing that we have across the board. We've renewed most of our clients over the last 12 months, and we continue to renew. We've also seen already a shift to large brands being sold by the client versus by Criteo, and our commerce media platform capability being self-service already leans more into a platform pricing model. So ultimately, we are...

Feel very good about the economic pricing that we have across the board with renewed most of our clients over the last 12 months and we continued to renew.

We both I've seen alrighty I shipped to to lodge brands being sold by the client that is <unk>.

And I'll call Us media platform capability being self service already leans more into a platform pricing model <unk>, we anticipate.

Speaker 8: that rose to continue in terms of scale and in terms of, you know, that makes them...

Rose to continue in terms of scale in intensive yeah that makes it.

Speaker 8: I would say SAS light fees plus volume-based fees, plus value pricing for other services that we're delivering. And that's where most of our contracts already are and are continuing to shift.

I would say satellite feeds plus volume based based class value the tiny pricing for all the services that we're delivering and that's where most of our contracts already are on a continuing to shift.

Speaker 8: It's going to be around the scale and continuing to bring in new capabilities with increased fees coming in over time. It's really the scale play along with that new economic pricing model.

It's gonna be around the scale and continuing to bring a new capabilities with increased teeth coming in over time, it's ready to scale play along with that that new economic pricing model.

And then I can have over to told O'neill.

Speaker 8: And then I can have over to Todd on your privacy sandbox question.

<unk> December question.

[noise] yeah. Thanks, a lot Sarah Mat, we of course have learned a lot on the back of a very large investment at the company with the privacy sandbox in partnering with the Google team. What we've learned so far is that uhm, we can do a reasonably <unk>.

Speaker 11: Yeah, thanks a lot, Sarah. Matt, we of course have learned a lot on the back of a very large investment at the company with the privacy sandbox and partnering with the Google team. What we've learned so far is that we can do a reasonably good job with

Good job with are targeting a recommendation are bidding.

Speaker 11: our targeting, our recommendation, our bidding, and our measurement as we happen the past.

And our measurements as we have in the past Uhm and what we're excited to learn next because the the the knowledge that we've gained thus far has really been on traffic commingled privacy sandbox with third party cookies and what we're really waiting to do and learn from Max is the January.

Speaker 11: And what we're excited to learn next because the knowledge that we've gained thus far has really been on traffic that Tomingles privacy sandbox with third party cookies. And what we're really waiting to do and learn from next is

Speaker 11: The January or Q1 rather released of co-keyless traffic by Chrome, that 1% of the population that will be made available for testing for five months thereafter on a completely co-keyless basis.

Uhm or Q1, rather released a cookie list traffic by from about one per cent of the population that will be made available for testing for five months thereafter on a completely cookie was basis. So we've been preparing for this and we're feeling very good leading into that task.

Speaker 11: So we've been preparing for this and we're feeling very good leading into that test. We're going to learn a lot once we see how pure cookie free traffic can be targeted, can be made recommendation to, can be measured. But we feel very strong going into that period and we're going to be excited to share the results of our testing as we go through and as we have in the past.

We're gonna learn a lot once we see how pure cookie free traffic can be targeted can be made.

Made recommendation to can be measured how about we feel very strong going into that period, and we're gonna be excited to share the results of our testing as we go through and as we have in the past.

Let me let me just grabs on this one because I'm I'm actually it's an interesting question. It really speaks to the DNA off pretty young so I I do want to say something about this.

Speaker 3: Let me just grant one this one and we'll get because, Matthew, it's an interesting question and it really speaks to the DNA of proteo. So I do want to say something about this.

Speaker 3: I have a background as an athlete, as some of you know, and as an athlete.

I have a background as an estimate uhm, if some of you know and and as an S legs.

Speaker 3: You train every day, twice a day, for a day that is years ahead, years ahead, and it's just, it's about your resilience, it's about keeping your eye on the prize regardless of the ups and downs.

You're trying to every day twice a day for a day that is years ahead E as in here.

And it's just it's about your resilience, it's about keeping your eye on the prize regardless of the ups and downs.

Speaker 3: At Critia, we do exactly the same thing. So we allay the focus on getting through the privacy sandbox having trained for it for years. And it's the same story with our positioning and our future for our ad tech position for comments media. The ad tech provider for comments media, it is I am the prize, it is training every single day, twice a day for the day and the future. And that's the DNA that we have developed here.

And prettier, we do exactly the same thing. So we are laser focused on getting through the privacy sandbox, having trying to correct for years and it's the same story with L positioning and I'll future for for I'll add Tech decision for comments media <unk>.

<unk> for comments media. It is I'm a prior to this training every single diet twice a day for the diet in the future and that's the DNA that we <unk> yeah.

Speaker 3: So I just wanted to throw that out there because it's just an important part of who we are.

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

Great. Thank you.

[noise].

Speaker 13: Okay, thank you, Megan, Sarah, and Todd. This now concludes our call for today. Thanks, everyone, for joining. We're available for any additional questions. Have a good day. Thank you, bye-bye. Thank you. Bye-bye.

Okay. Thank you Megan Sarah and Todd. This now concludes our car for today. Thanks, everyone for jogging were available for any additional questions have a good day. Thank.

So thank you.

Bye bye.

Okay.

Thank you for attending.

You may now disconnect.

[music].

Speaker 14: We pro.