Richard Kramer

Richard Kramer asked for insight into the lower take rates observed across retail media and performance media in Q4, questioning if competitive pressure or other factors were driving this weakness. He also inquired about the visibility Criteo has on its 2026 budget, specifically how much is committed or has line-of-sight, given the slow Q1 and expected growth later in the year.

Answer

CFO Sarah Glickman explained that performance media take rates are strong but change with mix as Criteo moves further up the funnel into social and CTV. Retail media saw expected compression due to changes in a large retailer contract and a mix shift towards lower take-rate display advertising. She stated that Criteo has strong forecasting capabilities, and while full year visibility is typical for recurring revenue, planning cycles with large clients provide strong insight, supported by AI tools.

Richard Kramer asked for insight into the lower take rates observed across retail media and performance media in Q4, questioning if competitive pressure or other factors were driving this weakness. He also inquired about the visibility on the 2026 budget, specifically how much is currently committed or has line-of-sight, given the anticipated slow start to the year and expected growth.

Answer

Sarah Glickman (CFO) attributed performance media take rates to a mix shift towards higher-funnel activities like social and CTV, while retail media compression was due to a large retailer contract change and a mix shift to lower take-rate display advertising. She emphasized Criteo's strong position in the onsite space. Regarding 2026 budget visibility, she stated Criteo has strong forecasting capabilities and a high recurring revenue base, with a robust focus on planning cycles with large clients, consistent with typical visibility for the company.

Richard Kramer pointed to flat total activated media spend and asked about its drivers, whether new holdco deals include spending commitments, and Criteo's strategy for attracting AI talent without hurting margins.

Answer

CEO Michael Komasinski acknowledged that growing activated media spend is a top priority, driven by the full-funnel performance media strategy. He confirmed agency deals typically include volume expectations. CFO Sarah Glickman noted that ad tech services have been a drag on spend. Regarding talent, she highlighted Criteo's strong engineering base in Paris, high retention, and recent key hires, expressing confidence in attracting talent for their interesting AI work.

Richard Kramer questioned why recent wins, such as onboarding former Microsoft clients and capturing budget from DSPs, are not translating into stronger growth this year. He also asked about the future of retargeting and potential cost savings from the halt of Google's Privacy Sandbox rollout.

Answer

CEO Michael Komasinski stated the focus is on execution and scaling new products like Commerce Go and on-site video. CPO Todd Parsons added that building a mature, efficient, full-funnel retail media ecosystem takes time. Regarding the cookie delay, Parsons described it as a net positive that expands retargeting opportunities and confirmed that since investments in addressability were already made and are broadly beneficial, no significant cost savings are expected.

Richard Kramer questioned the level of visibility into the 2025 forecast given agency contracts and asked about the specific competitive edge gained from accessing social inventory, such as from Meta.

Answer

CEO Megan Clarken and CFO Sarah Glickman described a rigorous, client-by-client planning process that provides strong visibility into the year. CPO Todd Parsons explained that the competitive advantage with social inventory is the ability to maintain constant performance outcomes across channels, dynamically reallocating budgets to achieve client goals, which is a unique capability for Criteo.

Richard Kramer asked how Apple envisions AI management evolving, specifically towards more edge AI or on-device services versus cloud-based AI, and if Apple is confident in having reserved sufficient data center capacity for widespread Siri adoption without sharply increasing CapEx like other hyperscalers. He also inquired about the portion of Apple's 2.5 billion active device install base that is currently AI-capable, given Apple Intelligence features are only on iPhone 15 Pro, and if this impacts the pace of launching wider AI services.

Answer

CEO Tim Cook stated that both on-device and Private Cloud Compute are important, seeing it as a differentiator due to Apple's privacy approach, and confirmed that capacity is being put in place based on the best possible demand estimates. CFO Kevan Parekh declined to provide a specific number for AI-capable devices but noted it is a growing number within the install base and that Apple is encouraged by it.

Richard Kramer asked if AI capabilities or features are a material purchase consideration for consumers, or if record sales reflect other factors like iOS base retention. He also inquired if Apple anticipates altering its long-standing hybrid approach to data centers given increased CapEx by other tech companies for AI, and the role of Apple Silicon (M5 series).

Answer

CEO Tim Cook acknowledged multiple factors influence purchasing decisions, noted it's too early for in-depth surveys on iPhone 17, but expressed bullishness on Apple Intelligence becoming a greater factor. CFO Kevan Parekh confirmed expected CapEx increases for AI investments (e.g., Private Cloud Compute) and affirmed that the hybrid data center model (first-party and third-party) has served well and will continue, with plans to build out PCC as usage grows.

Richard Kramer questioned whether AI capabilities are a material purchase consideration for consumers, or if record sales reflect other factors like iOS base retention. He also asked if Apple anticipates altering its hybrid approach to data centers (own vs. third-party) given increased CapEx by other tech companies for AI, and the role of Apple Silicon (M5 series).

Answer

CEO Tim Cook acknowledged that many factors influence purchasing decisions and while it's too early for in-depth surveys on iPhone 17, he is bullish on Apple Intelligence becoming a greater factor. CFO Kevan Parekh stated that Apple expects increases in CapEx related to AI investments, including Private Cloud Compute, and will continue to leverage its hybrid model of first-party and third-party data center capacity, not moving away from it.

Richard Kramer asked about the learnings from the delay in delivering the new Siri system and what gating factors investors should watch for. He also inquired if Apple has ample ways to mitigate potential negative impacts on its Services business from ongoing high-profile legal cases.

Answer

CEO Tim Cook clarified that while many Apple Intelligence features have been delivered, the more personal Siri features need more time to meet Apple's high-quality bar. CFO Kevan Parekh added that Apple is not underinvesting in R&D. Regarding legal cases, Cook stated that Apple strongly disagrees with the Epic case ruling and will appeal, and that the DOJ case with Google is ongoing. He acknowledged the risks but noted the outcomes are unclear.

Richard Kramer asked what might accelerate Apple Intelligence adoption and whether Apple might consider a wider range of pricing to gain market share.

Answer

CEO Tim Cook responded that Apple Intelligence adoption will grow as the installed base of compatible devices increases and more languages are rolled out. CFO Kevan Parekh stated that the company does not plan to depart from its current disciplined pricing strategy.

Richard Kramer asked about the strategy for services within the Apple One bundle that are not market leaders, like Music and Arcade. He also questioned the company's capital allocation strategy, noting the net cash position has remained around $50 billion, and asked if there were new ways to deploy that cash.

Answer

CEO Tim Cook responded that the focus for services is on being the 'best,' not the 'most,' and that the company sees opportunity and will continue to invest in them. CFO Luca Maestri reiterated the capital allocation philosophy: fund the business first and return any excess cash to shareholders, a plan he believes has worked well.

Richard Kramer of Arete Research asked about the strategic importance of mediation for collecting ad signals and the expected timeline for partnerships like Tencent and Scopely to yield deeper integrations.

Answer

CEO Matthew Bromberg contended that while mediation is helpful, Unity's unique position as the 'operating system for games' provides first-party relationships that make winning in mediation unnecessary for success. Regarding partnerships, he explained that these broad, strategic agreements mark a change in strategy, and the integration process is one of constant, daily optimization rather than a lengthy, discrete event.

Richard Kramer pointed to a full year of single-digit ad growth while competitors grow faster, and asked if the advertising business is truly core to Spotify.

Answer

Alex Norström, Chief Business Officer & Co-President, firmly stated that the ad business is core, describing 2025 as a year of transformation. He cited the adoption of new ad tools and demand-side platform integration as positive signals, acknowledging the need to execute faster.

In a follow-up, Richard Kramer of Arete Research asked about the key learnings from the personalized AI experience created with Google for the Wrapped campaign and how it informs future product development.

Answer

Co-President & CPTO Gustav Söderström shared that the project confirmed users love personalized storytelling and reinforced Spotify's ambition to be the world's best at building AI-based products. Key learnings involved scaling the experience safely for millions of users and leveraging their partnership with Google Cloud to push technical boundaries.

Richard Kramer of Arete Research asked about the progress and timeline for Spotify's transition from direct brand advertising sales to a programmatic model, seeking to understand when it will achieve scale.

Answer

CFO Christian Luiga acknowledged being 'late on the ball' but confirmed the technical build-out for programmatic is now largely complete. He stated that 2025 will be a year of building the new system, with the company expecting to achieve significant scale in 2026.

Richard Kramer of Arete Research asked about the key requirements for Nokia to materially increase its percentage of sales to hyperscalers and whether the announced fiber build programs by large U.S. telcos could accelerate growth into 2026.

Answer

President & CEO Justin Hotard explained that winning with hyperscalers requires deeper customer intimacy and a portfolio geared towards their specific needs, noting recent progress with an 800-gig pluggable award. He also expressed optimism about U.S. fiber build announcements, viewing them as a significant growth opportunity for Nokia's OLT portfolio and a driver for further innovation.

Richard Kramer from Arete Research asked about the key requirements to materially increase sales to hyperscalers and whether recent fiber build announcements from U.S. telcos will accelerate growth into 2026.

Answer

President & CEO Justin Hotard explained that winning hyperscaler deals requires deep customer intimacy and a portfolio geared to their specific needs, noting progress with a strong book-to-bill. He confirmed that U.S. fiber build plans represent a significant growth opportunity for Nokia's OLT portfolio and drive further innovation.

Richard Kramer asked what Nokia needs to do to win large hyperscaler and AI data center deals and whether the company will increase its non-smartphone IP sales guidance following the Amazon deal.

Answer

President and CEO Justin Hotard stated that winning hyperscaler deals requires aligning with their demand for scale and reliability, noting it's a longer sales cycle requiring co-development, which was a key rationale for the Infinera acquisition. CFO Marco Wiren noted that while the non-smartphone licensing business is developing well, the guidance hasn't been updated since December 2023, with more details likely at the upcoming Capital Markets Day.

Asked what is required for Nokia to win large AI data center deals with hyperscalers and whether the company would increase its guidance for non-smartphone IP sales following the Amazon licensing deal.

Answer

Winning hyperscaler deals requires aggressive investment (like the Infinera acquisition), a different sales cycle involving co-development, and a portfolio that meets their high demands for scale and reliability. Regarding non-smartphone IP sales, the company is not updating its guidance at this time but will provide more details at the Capital Markets Day later in the year.

Richard Kramer pointed to the multi-quarter decline in services revenue within both Networks and Cloud Software, asking whether this was a deliberate strategic shift toward higher-margin products or a function of lower customer demand.

Answer

CEO Börje Ekholm described a mixed situation. He confirmed Ericsson has proactively reduced its difficult network rollout business and pruned unattractive Managed Services contracts. However, he noted a positive turn in demand, with increasing network complexity driving renewed customer interest in managed services. He cited a recent large win and expressed growing optimism for the business.

Richard Kramer asked who is ultimately accountable for the significant value destruction from the Vonage acquisition and whether Ericsson's EBITDA targets should be adjusted now that amortization will be lower after the write-down.

Answer

CEO Börje Ekholm accepted full accountability for the acquisition but urged investors to assess the deal's success over the long term, pending the outcome of the strategic push into network APIs. CFO Lars Sandstrom noted that since amortization does not affect EBITDA, the write-down will not impact the company's EBITDA targets.