Ygal Arounian: Okay, that’s helpful. Sorry, I misunderstood. And then with the launch of Commerce Max, maybe you could just share a little bit on early reads, what you’re hearing from agencies and partners. And within that being also, Omnicom made an acquisition this week that feels like they’re moving more into Retail Media on their own or Commerce Media as a whole. And Omnicom has been a key partner. So does that change anything with your relationship with Omnicom at all? Thanks.
Megan Clarken : And sorry, just one thing on the last part of your question. I do want to emphasize that our Retail Media, our Commerce Media platform is self-service. So a huge benefit of driving scale and driving to these new economic models is there is a shift to more self-service. And that will enhance our profitability over time. We do have positive contribution across our businesses. So the expectation is not only will drive scale and deliver top line, but we’re also continuing to deliver profitability overall for Criteo. So those are other key factors as we look at the platform. In terms of C-Max, 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 in Q4. We just launched in September, as you know, and our expectation is that will continue to drive in 2024. The conversations are terrific. 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 leaned in.
Sarah Glickman : So that one’s, again, we’re excited about C-Max 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, Omnicon. Is that correct?
Ygal Arounian: Yeah, just because they’ve been an important partner here. So —
Sarah Glickman : Yeah.
Ygal Arounian: Does that change the partnership at all, the relationship?
Sarah Glickman : No, 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. So as more and more agencies are leaning into their own capabilities to be able to stand up teams and technology to accommodate brands asks for Retail Media spend, this is just validates that agencies are really leaning into this. They’re not making a Retail Media buy as part of a social buy or 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 way technology is used all the way through from the conversation with the brand all the way through to the buy, Flywheel is right up sort of the very end of that, at the very top of that. 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.
Megan Clarken : Yeah, just to add to that, Flywheel is 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. 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 sign for us, especially given our holdco relationships.
Operator: Sir, are you done with your question?
Ygal Arounian: Thank you.
Operator: The next question is from the line of Doug Anmuth with JP Morgan. Please go ahead.
Katy Ansel: Hey, this is Katy on for Doug. Thanks for taking the question. I just want to dive a little bit more into the 4Q outlook. I think that the organic growth is implied to decelerate slightly versus 3Q levels. So can you just provide some more color on what you’re seeing 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? Thanks.
Sarah Glickman : Absolutely. I mean, we saw a soft October, so that’s a starting point, especially with trading patterns, media trading. In terms of the holiday season, of course, we’re expecting a terrific holiday season. Our sales teams are all in. We’re not seeing an early start to the holiday season. So that’s the caution. And that’s the caution. I would say we’re similar to 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 caution 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 retailer’s results as they come out over the next few weeks.
And that will be a gauge. Week on week, we are seeing improvement coming into November. So good signs, but not enough for us to sign off on a terrific Q4, especially given it’s a pretty short season with the 5% or 6%. That being said, we feel terrific about the strong Q3 we delivered. And we’re looking forward to continuing to deliver a strong Q4 as well.
Katy Ansel: OK, thanks. And if I could just do one more, is there anything you can share on how to think about 2024 profitability? Just thinking about the fact that you realize some cost efficiencies in 2023 but how should we think about the pace of investment next year? Thanks.
Sarah Glickman : Yeah, we have a program now and a rigor around operational excellence. So we’ve been very focused on our operating model, our operational excellence, 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 operating 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 shift to the Commerce Media platform and the self-service capability enables more efficiency. And the continued focus on ensuring that we’re delivering for our clients at scale also enables flow through of those dollars to the bottom line as well.
