Teads (TEAD) Q3 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, November 6, 2025 astatine 9:36 AM CST 36 min read

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Thursday, Nov. 6, 2025, astatine 8:30 a.m. ET

• Chief Executive Officer — David Kostman

• Chief Financial Officer — Jason Kiviat

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David Kostman: Thank you. Good morning, and convey you for joining us. Before diving into the details of the quarter, I'd similar to commencement with an update connected the merger, our turnaround actions, and however we're positioning Teads Holding Co. for renewed maturation and sustained profitability. While this 4th presented challenges, and our results fell abbreviated of expectations, we are taking decisive actions to thrust a stronger show moving forward. The integration of our two-scale enactment is analyzable but a strategical effort, and we are actively addressing the challenges we encountered.

In summation to the merger complexities, we proceed to navigate a dynamic and fast-evolving ecosystem marked by shifting postulation patterns crossed the unfastened Internet, expanding contention connected the request side, macro volatility successful definite geographies and verticals, and shorter readying cycles proceed to impact pacing. At the aforesaid time, we stay assured successful the strategical thesis down our merger and are excited astir the semipermanent opportunity. We judge that the operation of our technology, information capabilities, and heavy relationships with endeavor brands and agencies places Teads Holding Co. successful a uniquely beardown presumption to beryllium a strategical spouse astatine the planetary standard for brands and their agencies.

Our cross-screen outcome-driven advertisement platform, led by our fast-growing connected TV business, is resonating with customers and partners. I've conscionable returned from our strategical merchandise off-site, and I tin archer you that the innovation, creativity, and vigor of our teams are genuinely inspiring. This reinforces our assurance successful Teads Holding Co.'s aboriginal and our quality to pb the manufacture forward.

With this backdrop, we decided to instrumentality decisive actions successful an effort to crook the concern around, reconstruct growth, and amended profitability. Over the past 2 quarters, we've made meaningful advancement connected the integration and realization of synergies. Operationally, during Q3, we restructured the enactment of our regions and improved our income team's sum operation and income processes. These measures are already yielding immoderate improvements successful cardinal starring indicators, though the gross interaction is inactive successful its aboriginal stages. In parallel, aft moving arsenic 1 merged squad for 2 quarters, we besides decided to behaviour a broad concern reappraisal to place further opportunities to reconstruct growth, heighten profitability, and make affirmative currency travel portion gathering a large company. The program we developed focuses connected 3 main dimensions. First, portfolio optimization done product, geography, and lawsuit conception evaluation, prioritizing investments successful innovation and high-growth opportunities portion taking steps to amended the profitability of different parts of the business. Second, operational efficiency, refining our organizational operation and processes to heighten agility and accountability. And third, outgo optimization, identifying further efficiencies to amended our fiscal illustration and semipermanent outgo structure. We are rapidly moving into execution of these plans with implementation opening successful the coming weeks with the nonsubjective of driving contiguous impact. These plans should let america to proceed investing successful strategical maturation portion delivering meaningful incremental EBITDA. We are focused connected operating arsenic a affirmative currency travel business. So acold year-to-date, we've generated affirmative adjusted escaped currency flow, and our nonsubjective is to absorption connected improving our outgo operation and efficiencies to decorativeness the twelvemonth affirmative arsenic well. As you whitethorn person seen successful our abstracted property merchandise this morning, I'm precise excited to invited connected committee Molly Spielman arsenic our caller Chief Commercial Officer. Molly brings a wealthiness of acquisition connected the income and operations broadside astatine scale. She served arsenic Chief Revenue Officer and past Chief Operating Officer astatine Criteo for 5 years erstwhile the institution grew revenues from $100 cardinal to implicit $2 billion. Most recently, Molly was the Chief Revenue Officer astatine Oracle Advertising, wherever she helped clients recognize worth done the activation of third-party audiences and contextual targeting. Prior to that, she held elder enactment roles astatine Millennial Media and Yahoo. I'm genuinely excited to invited Molly to our enactment team. She brings exceptional experience, caller perspective, and a proven quality to pb done transformation. Her penetration and committedness to excellence volition not lone fortify our enactment squad but besides animate our full enactment arsenic we determination guardant towards a stronger future. Now I volition crook to immoderate highlights from the quarter. Connected TV remains our astir important maturation area. In Q3, we saw continued maturation of astir 40% year-over-year. On a standalone basis, assuming continuation of caller trends, our CTV concern is expected to deed the $100 cardinal people by the extremity of the year. As a reminder, our CTV concern focuses connected 3 cardinal pillars: on-screen, the innovative CTV placement wherever we proceed to beryllium a planetary leader, different proprietary formats specified arsenic PAWS ads and in-play, and cross-screen, which facilitates full-funnel activation. Our Connected TV location surface merchandise continues to summation traction, establishing Teads Holding Co. arsenic a person successful this market. We've executed implicit 2,500 location surface campaigns since motorboat and expanded partnerships with large CTV players, including TCL and Google TV, alongside existing relationships, immoderate of which are exclusive, including LG, Samsung, and Hisense, giving america entree to implicit 500 cardinal addressable TVs globally.