The latest quarterly earnings calls for the ad tech sector are largely over for the latest reporting period, with bluster over yet more senior departures at The Trade Desk, and AppLovin’s continued rise (generating nearly $2 billion in Q1) dominating Q1 headlines.
Such numbers pale in comparison to the AI-fueled earnings increases of Big Tech, arguably the top tier of the media jungle, but upon initial inspection, the majority of this 12-strong cohort of companies, all of which issued their earnings over the last 14 days, posted increases.
However, three posted annual revenue declines — see chart below — with executives’ effusive soundings on the prospects of making their businesses agentic, equally prompting queries about whether AI will erode the stickiness of their company’s platform?
Evidently, Teads continues to experience a rocky start a year after its leadership publicly aired its investment thesis of pairing Outbrain’s performance-driven wares with Teads’ premium potential. However, after disclosing a 7% year-over-year revenue decline, analysts questioned whether AI would erode the historical separation between upper- and lower-funnel media.
Meanwhile, Criteo’s leadership forecast a return to growth by the close of the year after it saw a lag in retail media spend, resulting in a 6% slump in revenues for the period, with analysts questioning whether self-serve AI workflows reduce agencies’ operational dependence on — a key consideration for Criteo.
