Note: This event is being recorded. I would now like to turn the conference over to Melanie Dambre, Vice President, Investor Relations. Please go ahead.
Good morning, everyone, and welcome to Criteo's First Quarter 2025 earnings call. Joining us on the call today, Chief Executive Officer Michael Komasinski and Chief Financial Officer Sarah Glickman are going to share some prepared remarks. Todd Parsons, our Chief Product Officer, will join us for the Q&A session. As usual, you will find our investor presentation on our Investor Relations website now, as well as our prepared remarks and transcript after the call. Before we get started, I would like to remind you that our remarks will include forward-looking statements which reflect Criteo's judgments, assumptions, and analysis as of today. Our actual results may differ materially from current expectations based on a number of factors affecting Criteo's business. Except as required by law, we do not undertake any obligation to update any forward-looking statements discussed today.
For more information, please refer to the risk factors discussed in our earnings release, as well as our most recent Forms 10-K and 10-Q filed with the SEC. We will also discuss non-GAAP measures of our performance. Definitions and reconciliations to the most directly comparable GAAP metrics are included in our earnings release published today. Finally, unless otherwise stated, all gross comparisons made during this call are against the same period in the prior year. With that, let me now hand it over to Michael.
Thanks, Melanie, and good morning, everyone. Thank you all for joining us today. I'm proud to be here for my first earnings call as CEO of Criteo, and I see tremendous opportunity to lead the company forward with focus and ambition. Over the past two months, I've had the chance to meet with many of our teams across regions, along with clients and partners. I want to start by sharing a few reflections on why I took the role, what I've observed in my first couple of months, and how we're thinking about the road ahead. Before I do that, I want to address two important recent developments. The first one is related to Google's recent decision to keep third-party cookies, which has positive near-term and long-term implications. In addition to a modest benefit this year, we now operate from a position of strength and with greater clarity.
We're bullish about the long-term prospects of our performance media segment. Our investments in addressability have led to significant AI innovation that will continue to pay off across all environments. With a future-proofed approach to privacy-protecting addressability, we're moving full steam ahead to execute tailored, full-funnel, cross-channel campaigns that drive measurable outcomes for our clients in any scenario and for the long term. The second development impacts us in the near term and is related to our largest retail media client, who has been a longstanding partner. This client unexpectedly notified us this week that while they will continue to use our industry-leading retail media technology platform under a multi-year committed contract, they will discontinue our managed services and curtail the remaining brand demand sales services in November of this year.
Instead of a natural and gradual evolution of the support we provide them with, this is a sudden change that will result in a significant impact on the growth rates of our retail media business for a 12-month period starting in Q4 2025. However, this near-term change does not affect our substantial opportunities to continue to grow faster than the market across the rest of our retailer base and for the long term. More broadly, it's important to highlight that Criteo, as a leading and independent ad tech player, has built something unique: a robust, AI-powered performance media business combined with leading capabilities in retail media, one of the fastest-growing segments of digital advertising. Criteo sits right at the center of commerce and media, and that combination is powerful.
We have deep commerce data, advanced AI capabilities, a large and diversified global client base, impressive talent, and a strong position across the digital advertising ecosystem. Criteo is increasingly viewed as a must-have agency partner in the evolving advertising landscape, and I saw firsthand that our relationships with leading global agencies are growing more strategic every quarter. For my first couple of months, I can see that Criteo hasn't yet realized its fullest potential. My key priorities are to re-accelerate growth and improve its durability, fortify our leadership position in retail media, re-energize our performance media business, and amplify the power of our platform, all with a sharp focus on maximizing shareholder value. The opportunity ahead is to intensify our focus, scale our strengths, and double down on a few core strategic initiatives to deliver durable, strong, and profitable growth. First, we have early momentum behind our platform strategy.
We've elevated our positioning in the market, and we have major enterprise clients like Office Depot and ODP Business Solutions now utilizing our comprehensive commerce media platform. They leverage our demand-side capabilities with Commerce Growth and Commerce Max, and our supply-side solutions through Commerce Grid and Commerce Yield. This demonstrates the value of our integrated approach. We're also expanding our global agency partnerships to activate more of the overall platform. These strategic partnerships will continue to be a key growth lever for us moving forward. As a multi-product platform company, we have many synergies across our products. There is a real opportunity to amplify these connections and enable our flywheel. Second, we're focused on driving more demand to our platform. That's key to re-accelerating growth.
After establishing a strong foothold in retail media supply, we're deepening agency and API partnerships and expect to incorporate more demand sources moving forward, including through Microsoft and other partnerships. In performance media, we're excited about the rollout of Commerce Go, our new AI-powered automation and optimization toolset to launch high-performing campaigns in just five clicks and onboard more advertisers faster. Third, we're leaning into brand performance, helping brands build awareness that's actionable and linked to measurable outcomes. Our reach across multiple buyer types and our unique ability to deliver performance across the buyer journey gives us optionality. No one else delivers performance everywhere like we do, and it's powered by a rock-solid foundation and sustained innovation. That's a strength we plan to build on with new product extensions.