CRITEO REPORTS RECORD FOURTH QUARTER 2023 RESULTS

Rhea-AI Summary

Criteo S.A. (CRTO) announced financial results for Q4 and FY 2023, with revenue of $566M in Q4 and $1.9B for the year. Gross profit increased by 12% and Contribution ex-TAC grew by 10% for the quarter. Net income for Q4 was $62M, with adjusted EBITDA of $139M. The company spent $125M on share repurchases and increased its share buyback authorization by $150M. Criteo targets mid-single-digit growth in 2024.

Positive

• Revenue for Q4 2023 was $566 million, gross profit was $277 million, and Contribution ex-TAC was $316 million.
• Net income for Q4 was $62 million, or $1.02 per share on a diluted basis, with adjusted EBITDA of $139 million.
• The company deployed $125 million for share repurchases in 2023 and increased its share buyback authorization by $150 million.
• Criteo targets mid-single-digit growth in 2024.

Negative

• None.

Insights

Financial Analyst

The disclosed financial results of Criteo S.A. indicate several key performance metrics that are essential for understanding the company's current financial health and future prospects. The reported 30% year-over-year growth in activated media spend to $4.1 billion suggests a substantial increase in the company's market activity and demand for its services. This growth trajectory, coupled with the company's share repurchase program, where $125 million was deployed in 2023 and an additional $150 million authorized, reflects a management strategy aimed at creating shareholder value and potentially signaling confidence in the company's future performance.

From a profitability standpoint, the significant increases in gross profit margin and net income—with gross profit up 12% and net income surging by 287% year-over-year—indicate improved operational efficiency and cost management. The adjusted EBITDA margin of 30% surpassing guidance also highlights effective cost controls and a strong focus on profitability. However, the decrease in cash from operating activities by 12% and a 45% decline in free cash flow year-over-year warrants attention, as it may raise questions about the sustainability of current growth rates and the company's liquidity management.

Market Research Analyst

Analyzing Criteo's performance from a market perspective, the double-digit growth in Contribution ex-TAC, particularly in the Retail Media sector, is notable. This indicates a robust demand for Criteo's commerce media platform, especially as Retail Media revenue surpassed $200 million. The company's platform adoption by 2,600 brands and 220 retailers, including notable names like Albertsons and PcComponentes, suggests a competitive edge and a broadening customer base, which are positive signals for future revenue streams.

It is also important to highlight the company's strategic movements, such as the amendment of the syndicated credit facility to a sustainability-linked credit facility and the approval of its GHG emissions reduction targets by the Science Based Targets Initiative. These actions not only align with broader ESG (Environmental, Social and Governance) trends but could also enhance the company's reputation and appeal to a growing segment of socially conscious investors.

Economist

From an economic standpoint, Criteo's financial results must be contextualized within the broader economic environment. The company's performance, particularly the mid-single-digit growth target for 2024, must be assessed in light of potential macroeconomic headwinds such as inflationary pressures, currency fluctuations and shifts in consumer spending patterns. The constant currency measures employed by Criteo to report some of its financial metrics are crucial for investors to understand the underlying business performance without the distortion of exchange rate movements. This is particularly relevant for a global company like Criteo, which is exposed to various currency risks.

Furthermore, the company's ability to deliver cost savings of over $70 million and achieve an adjusted EBITDA margin of 30% in 2023 despite potential economic challenges is a testament to its operational resilience. However, investors should remain vigilant about how external economic factors could impact Criteo's business outlook and financial performance in the upcoming year.

2023 Activated Media Spend Up 30% to $4.1 Billion

Deployed $125 Million to Repurchase Shares in 2023 and Increases Share Buyback Authorization by $150 Million

Targeting Mid-Single-Digit Growth in 2024

NEW YORK, Feb. 7, 2024 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO) ("Criteo" or the "Company"), the commerce media company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.

Fourth Quarter and Fiscal Year 2023 Financial Highlights:

The following table summarizes our consolidated financial results for the three months and twelve months ended December 31, 2023:

		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2023		2022		YoY Change		2023		2022		YoY Change
		(in millions, except EPS data)
GAAP Results
Revenue		$566		$564		0.3 %		$1,949		$2,017		(3) %
Gross Profit		$277		$247		12 %		$863		$795		9 %
Net Income		$62		$16		287 %		$55		$11		402 %
Gross Profit margin		49 %		44 %		5ppt		44 %		39 %		5ppt
Diluted EPS		$1.02		$0.25		308 %		$0.88		$0.14		529 %
Cash from operating activities		$161		$125		29 %		$224		$256		(12) %
Cash and cash equivalents		$336		$348		(3) %		$336		$348		(3) %
Non-GAAP Results1
Contribution ex-TAC		$316		$283		12 %		$1,023		$928		10 %
Contribution ex-TAC margin		56 %		50 %		6ppt		52 %		46 %		6ppt
Adjusted EBITDA		$139		$104		33 %		$302		$267		13 %
Adjusted diluted EPS		$1.52		$0.84		81 %		$3.18		$2.76		15 %
Free Cash Flow (FCF)		$142		$111		28 %		$110		$200		(45) %
FCF / Adjusted EBITDA		102 %		106 %		(4)ppt		36 %		75 %		(39)ppt

"We achieved double-digit growth for the second consecutive year, with a historic milestone of crossing $1 billion in Contribution ex-TAC for the first time and Retail Media now surpassing $200 million in annual revenue," said Megan Clarken, Chief Executive Officer of Criteo. "As we step into 2024, we look forward to harnessing the opportunities that lie ahead, and our commitment remains steadfast towards sustainable, profitable growth to drive shareholder value."

Operating Highlights

• Criteo's activated media spend² was $1.3 billion in Q4 and $4.1 billion in the last 12 months, growing 30% year-over-year at constant currency³.
• Our focus on efficiencies delivered over $70 million in cost savings and an adjusted EBITDA margin of 30% in 2023.
• Retail Media Contribution ex-TAC grew 29% year-over-year at constant currency³ in Q4 and 26% in 2023.
• Same-retailer Contribution ex-TAC⁴ retention for Retail Media was 121% in both Q4 and 2023.
• We expanded our platform adoption to 2,600 brands and 220 retailers, including Albertsons and PcComponentes.
• Marketing Solutions Contribution ex-TAC was up 6% year-over-year at constant currency³ in Q4.
• We deployed $125 million of capital for share repurchases in 2023, and our Board of Directors authorized a $150 million increase to the Company's existing share repurchase program in February 2024.
• We amended our syndicated credit facility to a €407 million ($450 million) sustainability-linked credit facility.
• The Science Based Targets Initiative approved Criteo's greenhouse gas (GHG) emissions reduction targets, in line with the Paris Agreement's goal to limit the global average temperature increase to 1.5° Celsius.

1 Contribution ex-TAC, Contribution ex-TAC margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted diluted EPS and Free Cash Flow are not measures calculated in accordance with U.S. GAAP.
2 Activated media spend is defined as the sum of our Marketing Solutions revenue, the media spend activated on behalf of our Retail Media clients, and the media spend activated by Iponweb.
3 Constant currency measures exclude the impact of foreign currency fluctuations and is computed by applying the prior year monthly exchange rates to transactions denominated in settlement or billing currencies other than the US dollar.
4 Same-client profitability or Contribution ex-TAC is the profitability or Contribution ex-TAC generated by clients that were live with us in a given quarter and are still live with us the same quarter in the following year.

Financial Summary

Revenue for Q4 2023 was $566 million, gross profit was $277 million and Contribution ex-TAC was $316 million. Net income for Q4 was $62 million, or $1.02 per share on a diluted basis. Adjusted EBITDA for Q4 was $139 million, resulting in an adjusted diluted EPS of $1.52. As reported, revenue for Q4 was flat, gross profit increased 12% and Contribution ex-TAC increased by 12%. At constant currency, revenue for Q4 was flat and Contribution ex-TAC increased by 10%.

Revenue for the fiscal year 2023 was $1.9 billion, gross profit was $863 million and Contribution ex-TAC was $1.0 billion. As reported, revenue for 2023 decreased by 3%, gross profit increased 9% and Contribution ex-TAC increased by 10%. At constant currency, revenue for 2023 decreased by 3% and Contribution ex-TAC increased by 11%. Net income for fiscal 2023 was $55 million, or $0.88 per share on a diluted basis. Fiscal year 2023 Adjusted EBITDA was $302 million, resulting in an adjusted diluted EPS of $3.18. Cash flow from operating activities was $161 million in Q4 and Free Cash Flow was $142 million in Q4. As of December 31, 2023, we had $359 million in cash and marketable securities on our balance sheet.

Sarah Glickman, Chief Financial Officer, said, "In 2023, we delivered an adjusted EBITDA margin of 30%,  above guidance, and we deployed $125 million of capital for share repurchases to drive shareholder value. Our record fourth quarter performance reflects building momentum for our  Commerce Media Platform and our strong focus on cost efficiencies, setting the stage for continued growth and robust profitability in 2024."

Fourth Quarter 2023 Results

Revenue, Gross Profit and Contribution ex-TAC

Revenue was flat year-over-year in Q4 2023, and flat at constant currency, to $566 million (Q4 2022: $564 million). Gross profit increased by 12% year-over-year in Q4 2023 to $277 million (Q4 2022: $247 million). Gross profit as a percentage of revenue, or gross profit margin, was 49% (Q4 2022: 44%). Contribution ex-TAC in the fourth quarter increased 12% year-over-year, or increased 10% at constant currency, to $316 million (Q4 2022: $283 million). Contribution ex-TAC as a percentage of revenue, or Contribution ex-TAC margin, was 56% (Q4 2022: 50%), up 600 basis points year-over-year, largely driven by Retail Media and Marketing Solutions.

• Marketing Solutions revenue decreased 3%, or 3% at constant currency, and Marketing Solutions Contribution ex-TAC increased 8%, or 6% at constant currency, driven by the continued traction of Commerce Audiences as more clients adopt full funnel activation.
• Retail Media revenue increased 28%, or 26% at constant currency, reflecting continued strength in Retail Media onsite. Retail Media Contribution ex-TAC increased 30%, or 29% at constant currency, driven by continued strength in Retail Media onsite, new client integrations and growing network effects of the platform.
• Iponweb revenue increased 3%, or 2% at constant currency, to $35 million.

Net Income and Adjusted Net Income

Net income was $62 million in Q4 2023 (Q4 2022: net income of $16 million). Net income allocated to shareholders of Criteo was $61 million, or $1.02 per share on a diluted basis (Q4 2022: net income available to shareholders of $15 million, or $0.25 per share on a diluted basis).

Adjusted net income, a non-GAAP financial measure, was $91 million, or $1.52 per share on a diluted basis (Q4 2022: $52 million, or $0.84 per share on a diluted basis).

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA was $139 million, representing an increase of 33% year-over-year (Q4 2022: $104 million). This reflects higher Contribution ex-TAC over the period and planned cost reduction actions. Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 44% (Q4 2022: 37%).

Operating expenses decreased by 5% year-over-year to $188 million (Q4 2022: $198 million), mostly driven by cost reduction actions. Non-GAAP operating expenses decreased by 5% to $147 million (Q4 2022: $154 million).

Fiscal Year 2023 Results

Revenue, Gross Profit and Contribution ex-TAC

Revenue decreased by 3% year-over-year, or 3% at constant currency, to $1,949 million (FY 2022: $2,017 million). Gross profit increased by 9% year-over-year to $863 million (FY 2022: $795 million). Gross profit as a percentage of revenue, or gross profit margin, was 44% (FY 2022: 39%). Contribution ex-TAC increased 10% year-over-year, or increased 11% at constant currency, to $1,023 million (FY 2022: $928 million). Contribution ex-TAC as a percentage of revenue, or Contribution ex-TAC margin, was 52% (FY 2022: 46%), up 600 basis points year-over-year, largely driven by Retail Media and Iponweb.

• Marketing Solutions revenue decreased 8%, or 8% at constant currency, and Marketing Solutions Contribution ex-TAC decreased 3%, or 2% at constant currency, driven by lower Retargeting, partially offset by solid growth for Commerce Audiences.
• Retail Media revenue increased 3%, or 3% at constant currency, reflecting the impact related to the client migration to the Company's platform. Retail Media Contribution ex-TAC increased 26%, or 26% at constant currency, driven by continued strength in Retail Media onsite, new client integrations and growing network effects of the platform.
• Iponweb revenue increased 135%, or 133% at constant currency, to $122 million following the closing of the acquisition on August 1, 2022.

Net Income and Adjusted Net Income

Net income was $55 million (FY 2022: $11 million). Net income available to shareholders of Criteo was $53 million, or $0.88 per share on a diluted basis (FY 2022: $9 million, or $0.14 per share on a diluted basis).

Adjusted net income was $191 million, or $3.18 per share on a diluted basis (FY 2022: $173 million, or $2.76 per share on a diluted basis).

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA was $302 million, representing an increase of 13% year-over-year (FY 2022: $267 million).  This reflects higher Contribution ex-TAC and planned cost reduction actions. Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 30% (FY 2022: 29%).

Operating expenses increased 2% year-over-year to $786 million (FY 2022: $771 million), mostly driven by equity awards compensation expense and operating costs from Iponweb, partially offset by cost reduction actions. Non-GAAP operating expenses increased by 5% or $28 million to $607 million (FY 2022: $580 million).

Cash Flow, Cash and Financial Liquidity Position

Cash flow from operating activities increased to $161 million in Q4 2023 (Q4 2022: $125 million).

Free Cash Flow, defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment, increased to $142 million in Q4 2023 (Q4 2022: $111 million).

Cash and cash equivalents, and marketable securities, decreased $14 million compared to December 31, 2022 to $359 million, after spending $125 million on share repurchases in 2023.

As of December 31, 2023, the Company had total financial liquidity of approximately $837 million, including its cash position, marketable securities, revolving credit facility and treasury shares reserved for M&A.

Sustainability-Linked Revolving Credit Facility

A key pillar of our sustainability strategy is reducing our carbon footprint, and we committed to reducing our greenhouse gas (GHG) emissions by 2030 in line with the 1.5°C scenario of the Paris Agreement. Criteo recently became the first AdTech company to have its GHG emissions reduction targets approved by the Science Based Targets initiative ("SBTi").

On November 17, 2023, we updated certain terms of our €407 million ($450 million) syndicated credit facility to a €407 million ($450 million) sustainability-linked credit facility, the framework for which was provided for in the initial credit facility agreement. Certain terms and conditions of the amended credit facility are now linked to our sustainability goals to increase the representation of women in tech roles and reduce our GHG emissions, while the rest of the credit facility agreement remains unchanged.

2024 Business Outlook

The following forward-looking statements reflect Criteo's expectations as of February 7, 2024.

Fiscal year 2024 guidance:

• Mid-single-digit growth in Contribution ex-TAC at constant currency
• Adjusted EBITDA margin of approximately 29% to 30% of Contribution ex-TAC

First quarter 2024 guidance:

• Contribution ex-TAC between $243 million and $247 million, or year-over-year growth at constant-currency of +10% to +12%
• Adjusted EBITDA between $50 million and $54 million

The above guidance for the first quarter and fiscal year ending December 31, 2024 assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.909, a U.S. dollar-Japanese Yen rate of 145, a U.S. dollar-British pound rate of 0.791, a U.S. dollar-Korean Won rate of 1,300 and a U.S. dollar-Brazilian real rate of 4.95.

The above guidance assumes that no additional acquisitions are completed during the first quarter of 2024 or the fiscal year ended December 31, 2024.

Reconciliations of Contribution ex-TAC, Adjusted EBITDA and Adjusted EBITDA margin guidance to the closest corresponding U.S. GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of equity awards compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. The variability of the above charges could potentially have a significant impact on our future U.S. GAAP financial results.

Extension of Share Repurchase Authorization

Criteo's Board of Directors has authorized a $150 million extension of its previously authorized share repurchase program of up to $480 million of the Company's outstanding American Depository Shares to an increased amount of up to $630 million. The Company intends to use repurchased shares under this extended program to satisfy employee equity obligations in lieu of issuing new shares, which would limit future dilution for its shareholders, as well as to fund potential acquisitions in the future.

Under the terms of the authorization, the stock purchases may be made from time to time in compliance with applicable state and federal securities laws and applicable provisions of French corporate law. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements and capital availability, as determined by Criteo's management team. The program does not require the purchase of any minimum number of shares and may be suspended, modified or discontinued at any time without prior notice.

Non-GAAP Financial Measures

This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission ("SEC"): Contribution ex-TAC, Contribution ex-TAC margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted diluted EPS, Free Cash Flow and Non-GAAP Operating Expenses. These measures are not calculated in accordance with U.S. GAAP.

Contribution ex-TAC is a profitability measure akin to gross profit. It is calculated by deducting traffic acquisition costs from revenue and reconciled to gross profit through the exclusion of other costs of revenue. Contribution ex-TAC is not a measure calculated in accordance with U.S. GAAP. We have included Contribution ex-TAC because it is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions. In particular, we believe that this measure can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Contribution ex-TAC provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Adjusted EBITDA is our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, certain restructuring, integration and transformation costs, certain acquisition costs and a loss contingency related to a regulatory matter. Adjusted EBITDA and Adjusted EBITDA margin are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that Adjusted EBITDA and Adjusted EBITDA margin can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Adjusted Net Income is our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related assets, certain restructuring, integration and transformation costs, certain acquisition costs, a loss contingency related to a regulatory matter, and the tax impact of these adjustments. Adjusted Net Income and Adjusted diluted EPS are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that Adjusted Net Income and Adjusted diluted EPS can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted Net Income and Adjusted diluted EPS provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Free Cash Flow is defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment. Free Cash Flow Conversion is defined as free cash flow divided by Adjusted EBITDA. Free Cash Flow and Free Cash Flow Conversion are key measures used by our management and board of directors to evaluate the Company's ability to generate cash. Accordingly, we believe that Free Cash Flow and Free Cash Flow Conversion permit a more complete and comprehensive analysis of our available cash flows.

Non-GAAP Operating Expenses are our consolidated operating expenses adjusted to eliminate equity awards compensation expense, pension service costs, certain restructuring, integration and transformation costs, certain acquisition and integration costs, and a loss contingency related to a regulatory matter. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures the Company uses to provide its quarterly and annual business outlook to the investment community.

Please refer to the supplemental financial tables provided in the appendix of this press release for a reconciliation of Contribution ex-TAC to gross profit, Adjusted EBITDA to net income, Adjusted Net Income to net income, Free Cash Flow to cash flow from operating activities, and Non-GAAP Operating Expenses to operating expenses, in each case, the most comparable U.S. GAAP measure. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider such non-GAAP measures in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: 1) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and 2) other companies may report Contribution ex-TAC, Contribution ex-TAC margin, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-GAAP Operating Expenses or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our U.S. GAAP financial results, including revenue and net income.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including projected financial results for the quarter ending March 31, 2024 and the year ending December 31, 2024, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure related to our technology and our ability to innovate and respond to changes in technology, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, including without limitation uncertainty regarding the timing and scope of proposed changes to and enhancements of the Chrome browser announced by Google, investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions materialize as expected, uncertainty regarding international growth and expansion (including related to changes in a specific country's or region's political or economic conditions), the impact of competition, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith, the impact of consumer resistance to the collection and sharing of data, our ability to access data through third parties, failure to enhance our brand cost-effectively, recent growth rates not being indicative of future growth, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, and the financial impact of maximizing Contribution ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in the Company's SEC filings and reports, including the Company's Annual Report on Form 10-K filed with the SEC on February 24, 2023, and in subsequent Quarterly Reports on Form 10-Q as well as future filings and reports by the Company. Importantly, at this time, macro-economic conditions including inflation and rising interest rates in the U.S. have impacted Criteo's business, financial condition, cash flow and results of operations.

Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Conference Call Information

Criteo's senior management team will discuss the Company's earnings on a call that will take place today, February 7, 2024, at 8:00 AM ET, 2:00 PM CET. The conference call will be webcast live on the Company's website at https://criteo.investorroom.com/ and will subsequently be available for replay.

• United States: +1 855 209 8212
• International: +1 412 317 0788
• France 080-510-2319

Please ask to be joined into the "Criteo" call.

About Criteo

Criteo (NASDAQ: CRTO) is the global commerce media company that enables marketers and media owners to drive better commerce outcomes. Its industry leading Commerce Media Platform connects thousands of marketers and media owners to deliver richer consumer experiences from product discovery to purchase. By powering trusted and impactful advertising, Criteo supports an open internet that encourages discovery, innovation, and choice. For more information, please visit www.criteo.com.

Contacts

Criteo Investor Relations
Melanie Dambre, m.dambre@criteo.com 

Criteo Public Relations
Jessica Meyers, j.meyers@criteo.com 

Financial information to follow

 

CRITEO S.A. Consolidated Statement of Financial Position (U.S. dollars in thousands, unaudited)
		December 31, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents		$                         336,341		$                         348,200
Trade receivables, net of allowances of $ 43.3 million and $ 47.8 million at December 31, 2023 and December 31, 2022, respectively		775,589		708,949
Income taxes		2,065		23,609
Other taxes		109,306		78,274
Other current assets		48,291		51,866
Restricted cash - current		75,000		25,000
Marketable securities - current portion		5,970		25,098
Total current assets		1,352,562		1,260,996
Property, plant and equipment, net		126,494		131,207
Intangible assets, net		180,888		175,983
Goodwill		524,197		515,140
Right of Use Asset - operating lease		112,487		102,176
Restricted cash - non current		—		75,000
Marketable securities - non current portion		16,575		—
Non-current financial assets		5,294		5,928
Other non-current assets		60,742		50,818
Deferred tax assets		52,680		31,646
Total non-current assets		1,079,357		1,087,898
Total assets		$                     2,431,919		$                     2,348,894
Liabilities and shareholders' equity
Current liabilities:
Trade payables		$                         838,522		$                         742,918
Contingencies - current portion		1,467		65,759
Income taxes		17,213		13,037
Financial liabilities - current portion		3,389		219
Lease liability - operating - current portion		35,398		31,003
Other taxes		66,659		58,031
Employee - related payables		113,287		85,569
Other current liabilities		104,552		83,457
Total current liabilities		1,180,487		1,079,993
Deferred tax liabilities		1,083		3,463
Defined benefit plans		4,123		3,708
Financial liabilities - non current portion		77		74
Lease liability - operating - non current portion		83,051		77,536
Contingencies - non current portion		32,625		33,788
Other non-current liabilities		19,082		69,226
Total non-current liabilities		140,041		187,795
Total liabilities		1,320,528		1,267,788
Commitments and contingencies
Shareholders' equity:
Common shares, €0.025 par value,  61,165,663 and 63,248,728 shares authorized, issued and outstanding at December 31, 2023  and December 31, 2022 , respectively.		2,023		2,079
Treasury stock, 5,400,572 and 5,985,104 shares at cost as of December 31, 2023  and December 31, 2022 , respectively.		(161,788)		(174,293)
Additional paid-in capital		769,240		734,492
Accumulated other comprehensive income (loss)		(85,326)		(91,890)
Retained earnings		555,456		577,653
Equity - attributable to shareholders of Criteo S.A.		1,079,605		1,048,041
Non-controlling interests		31,786		33,065
Total equity		1,111,391		1,081,106
Total equity and liabilities		$                     2,431,919		$                     2,348,894

 

CRITEO S.A. Consolidated Statement of Operations (U.S. dollars in thousands, except share and per share data, unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2023		2022		YoY change		2023		2022		YoY change
Revenue		$    566,302		$    564,425		— %		$ 1,949,445		$ 2,017,003		(3) %
Cost of revenue
Traffic acquisition cost		(249,926)		(281,021)		(11) %		(926,839)		(1,088,779)		(15) %
Other cost of revenue		(39,750)		(36,810)		8 %		(159,562)		(133,024)		20 %
Gross profit		276,626		246,594		12 %		863,044		795,200		9 %
Operating expenses:
Research and development expenses		(48,402)		(69,348)		(30) %		(242,289)		(187,596)		29 %
Sales and operations expenses		(97,687)		(99,633)		(2) %		(406,012)		(377,996)		7 %
General and administrative expenses		(42,219)		(28,969)		46 %		(137,525)		(205,330)		(33) %
Total Operating expenses		(188,308)		(197,950)		(5) %		(785,826)		(770,922)		2 %
Income (loss) from operations		88,318		48,644		82 %		77,218		24,278		218 %
Financial and Other income (expense)		(4,498)		(6,144)		(27) %		(2,490)		17,783		(114) %
Income (loss) before taxes		83,820		42,500		97 %		74,728		42,061		78 %
Provision for income tax (expense) benefit		(21,769)		(26,451)		(18) %		(20,084)		(31,186)		(36) %
Net income (loss)		$       62,051		$       16,049		287 %		$       54,644		$       10,875		402 %
Net income (loss) available to shareholders of Criteo S.A.		$       61,017		$       15,400		296 %		$       53,259		$         8,952		495 %
Net income (loss) available to non-controlling interests		$         1,034		$            649		59 %		$         1,385		$         1,923		(28) %
Weighted average shares outstanding used in computing per share amounts:
Basic		56,107,042		58,732,771		(4) %		56,170,658		60,004,707		(6) %
Diluted		59,687,020		61,898,460		(4) %		60,231,627		62,760,198		(4) %
Net income (loss) allocated to shareholders per share:
Basic		$           1.09		$           0.26		319 %		$           0.95		$           0.15		533 %
Diluted		$           1.02		$           0.25		308 %		$           0.88		$           0.14		529 %

 

CRITEO S.A. Consolidated Statement of Cash Flows (U.S. dollars in thousands, unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2023		2022		YoY Change		2023		2022		YoY Change
Net income (loss)		$      62,051		$      16,049		287 %		$      54,644		$      10,875		NM
Non-cash and non-operating items		60,663		62,986		(4) %		103,369		185,029		(44) %
- Amortization and provisions		16,048		15,611		3 %		72,336		150,261		(52) %
- Payment for contingent liability on regulatory matters		—		—		NM		(43,334)		—		NM
- Equity awards compensation expense (1)		20,832		22,440		(7) %		97,185		65,034		49 %
- Net (gain) or loss on disposal of non-current assets		974		167		483 %		(7,929)		(194)		NM
- Interest accrued and non-cash financial income and expenses		—		1,985		(100) %		—		(259)		— %
- Change in uncertain tax positions		(566)		412		(237) %		(880)		412		NM
- Net change in fair value of Earn-out		845		771		10 %		2,344		771		NM
- Change in deferred taxes		1,154		19,653		(94) %		(23,588)		3,602		NM
- Change in income taxes		22,431		1,947		NM		4,424		(10,952)		NM
- Other		(1,055)		—		NM		2,811		(23,646)		NM
Changes in working capital related to operating activities		38,626		46,420		(17) %		66,233		60,081		10 %
- (Increase) / Decrease in trade receivables		(135,234)		(117,309)		15 %		(56,344)		(41,910)		34 %
- Increase / (Decrease) in trade payables		159,127		153,318		4 %		87,937		133,792		(34) %
- (Increase) / Decrease in other current assets		(10,447)		8,537		(222) %		(8,479)		(14,687)		(42) %
- Increase / (Decrease) in other current liabilities		25,889		2,316		NM		43,815		(17,862)		NM
- Change in operating lease liabilities and right of use assets		(709)		(442)		60 %		(696)		748		NM
CASH FROM (USED FOR) OPERATING ACTIVITIES		161,340		125,455		29 %		224,246		255,985		(12) %
Acquisition of intangible assets, property, plant and equipment		(14,663)		(35,841)		(59) %		(92,501)		(84,796)		9 %
Change in accounts payable related to intangible assets, property, plant and equipment		(5,061)		21,319		(124) %		(21,810)		28,951		NM
Payment for business, net of cash acquired		132		(2,574)		(105) %		(6,825)		(138,027)		(95) %
Proceeds from disposition of investment		(778)		—		NM		8,847		—		NM
Change in other non-current financial assets		15,857		(15,299)		(204) %		3,577		27,753		(87) %
CASH FROM (USED FOR) INVESTING ACTIVITIES		(4,513)		(32,395)		(86) %		(108,712)		(166,119)		(35) %
Proceeds from borrowings under line-of-credit agreement		—		—		NM		—		78,513		NM
Repayment of borrowings		—		—		NM		—		(78,513)		NM
Change in other financial liabilities		235		(372)		(163) %		235		(265)		NM
Proceeds from exercise of stock options		(3)		411		(101) %		1,945		1,028		89 %
Repurchase of treasury stocks		(22,135)		(76,523)		(71) %		(125,489)		(135,685)		(8) %
Cash payment for contingent consideration		—		—		NM		(22,025)		—		NM
Other		(493)		(364)		35 %		(1,920)		21,878		NM
CASH FROM (USED FOR) FINANCING ACTIVITIES		(22,396)		(76,848)		(71) %		(147,254)		(113,044)		30 %
Effect of exchange rates changes on cash and cash equivalents		6,969		24,665		(72) %		(5,223)		(44,149)		(88) %
Net increase (decrease) in cash and cash equivalents		141,400		40,877		246 %		(36,943)		(67,327)		(45) %
Net cash and cash equivalents at beginning of period		269,857		407,323		(34) %		448,200		515,526		(13) %
Net cash and cash equivalents and restricted cash at end of period		$    411,257		$    448,200		(8) %		$    411,257		$    448,200		(8) %
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for taxes, net of refunds		$        1,250		$      (4,439)		(128) %		$    (40,127)		$    (38,124)		5 %
Cash paid for interest		$          (424)		$          (339)		25 %		$      (1,539)		$      (1,298)		19 %

(1) Share-based compensation expense according to ASC 718 Compensation - stock compensation accounted for $20.3 million and $22.1 million of equity awards compensation expense for the quarters ended December 31,  2023 and 2022, respectively, and $95.3 million and $63.2 million of equity awards compensation for the twelve months ended December 31, 2023 and 2022, respectively.

 

CRITEO S.A. Reconciliation of Cash from Operating Activities to Free Cash Flow (U.S. dollars in thousands, unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2023		2022		YoY Change		2023		2022		YoY Change
CASH FROM (USED FOR) OPERATING ACTIVITIES		$ 161,340		$ 125,455		29 %		$   224,246		$   255,985		(12) %
Acquisition of intangible assets, property, plant and equipment		(14,663)		(35,841)		(59) %		(92,501)		(84,796)		9 %
Change in accounts payable related to intangible assets, property, plant and equipment		(5,061)		21,319		(124) %		(21,810)		28,951		NM
FREE CASH FLOW (1)		$ 141,616		$ 110,933		28 %		$   109,935		$   200,140		(45) %

(1) Free Cash Flow is defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment.

 

CRITEO S.A. Reconciliation of Contribution ex-TAC to Gross Profit (U.S. dollars in thousands, unaudited)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2023		2022		YoY Change		2023		2022		YoY Change
Gross Profit	276,626		246,594		12 %		863,044		795,200		9 %
Other Cost of Revenue	39,750		36,810		8 %		159,562		133,024		20 %
Contribution ex-TAC (1)	$     316,376		$     283,404		12 %		$  1,022,606		$     928,224		10 %

(1) Refer to the "Non-GAAP Financial Measures" section for a definition of this Non-GAAP metric.

 

	CRITEO S.A. Segment Information (U.S. dollars in thousands, unaudited)
			Three Months Ended								Twelve Months Ended
			December 31,								December 31,
	Segment		2023		2022		YoY Change		YoY Change at Constant Currency (3)		2023		2022		YoY Change		YoY Change at Constant Currency (3)
Revenue
	Marketing Solutions		$      455,030		$      470,918		(3) %		(3) %		$   1,617,973		$   1,762,517		(8) %		(8) %
	Retail Media (2)		76,583		59,801		28 %		26 %		209,007		202,317		3 %		3 %
	Iponweb		34,689		33,706		3 %		2 %		122,465		52,169		135 %		133 %
	Total		566,302		564,425		0.3 %		0.3 %		1,949,445		2,017,003		(3) %		(3) %
Contribution ex-TAC
	Marketing Solutions		207,533		192,616		8 %		6 %		696,681		714,695		(3) %		(2) %
	Retail Media (2)		74,154		57,082		30 %		29 %		203,460		161,360		26 %		26 %
	Iponweb		34,689		33,706		3 %		2 %		122,465		52,169		135 %		133 %
	Total (1)		$      316,376		$      283,404		12 %		10 %		$   1,022,606		$      928,224		10 %		11 %

(1) Refer to the Non-GAAP Financial Measures section of this filing for a definition of the Non-GAAP metric.

(2) The Retail Media Platform, introduced in June 2020, is a strategic building block of Criteo's Commerce Media Platform and is reported under the retail media segment. It is a self-service solution providing transparency, measurement and control to brands and retailers. In all arrangements running on this platform, Criteo recognizes revenue on a net basis, whereas revenue from arrangements running on legacy Retail Media solutions were accounted for on a gross basis. Most clients using Criteo's legacy Retail Media solutions transitioned to this platform by the end of 2022. During the transition period, Revenue declined but Contribution ex-TAC margin increased. Contribution ex-TAC was not impacted by this transition.

(3) Constant currency measures exclude the impact of foreign currency fluctuations and is computed by applying the prior year monthly exchange rates to transactions denominated in settlement or billing currencies other than the US dollar.

 

CRITEO S.A. Reconciliation of Adjusted EBITDA to Net Income (Loss) (U.S. dollars in thousands, unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2023		2022		YoY Change		2023		2022		YoY Change
Net income (loss)		$    62,051		$    16,049		287 %		$    54,644		$    10,875		402 %
Adjustments:
Financial (Income) expense		4,497		6,427		(30) %		2,805		(17,053)		(116) %
Provision for income taxes		21,769		26,451		(18) %		20,084		31,186		(36) %
Equity awards compensation expense		21,003		22,441		(6) %		99,222		65,035		53 %
Pension service costs		(131)		970		(114) %		401		1,756		(77) %
Depreciation and amortization expense		23,079		27,450		(16) %		99,653		89,018		12 %
Acquisition-related costs		613		1,093		(44) %		1,894		12,584		(85) %
Net loss contingency on regulatory matters		35		(699)		(105) %		(21,632)		63,221		(134) %
Restructuring, integration and transformation costs		5,729		4,123		39 %		44,727		10,677		319 %
Total net adjustments		76,594		88,256		(13) %		247,154		256,424		(4) %
Adjusted EBITDA (1)		$  138,645		$  104,305		33 %		$  301,798		$  267,299		13 %

(1) Refer to the "Non-GAAP Financial Measures" section for a definition of this Non-GAAP metric.

 

CRITEO S.A. Reconciliation from Non-GAAP Operating Expenses to Operating Expenses under GAAP (U.S. dollars in thousands, unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2023		2022		YoY Change		2023		2022		YoY Change
Research and Development expenses		$      (48,402)		$      (69,348)		(30) %		$    (242,289)		$    (187,596)		29 %
Equity awards compensation expense		10,465		15,348		(32) %		55,078		36,514		51 %
Depreciation and Amortization expense		10,258		12,792		(20) %		38,485		22,474		71 %
Pension service costs		(18)		483		(104) %		263		891		(70) %
Acquisition-related costs		(3)		(2)		50 %		504		165		205 %
Restructuring, integration and transformation costs		1,030		633		63 %		9,853		1,618		509 %
Non GAAP - Research and Development expenses		(26,670)		(40,094)		(33) %		(138,106)		(125,934)		10 %
Sales and Operations expenses		(97,687)		(99,633)		(2) %		(406,012)		(377,996)		7 %
Equity awards compensation expense		4,819		4,505		7 %		21,633		14,200		52 %
Depreciation and Amortization expense		3,140		3,930		(20) %		13,267		14,808		(10) %
Pension service costs		(132)		220		(160) %		(49)		339		(114) %
Acquisition-related costs		—		—		NM		—		—		NM
Restructuring, integration and transformation costs		2,913		408		614 %		19,923		4,316		362 %
Non GAAP - Sales and Operations expenses		(86,947)		(90,570)		(4) %		(351,238)		(344,333)		2 %
General and Administrative expenses		(42,219)		(28,969)		46 %		(137,525)		(205,330)		(33) %
Equity awards compensation expense		5,719		2,588		121 %		22,511		14,321		57 %
Depreciation and Amortization expense		477		(925)		(152) %		2,127		854		149 %
Pension service costs		19		267		(93) %		187		526		(64) %
Acquisition-related costs		616		1,095		(44) %		1,390		12,419		(89) %
Restructuring, integration and transformation costs		1,786		3,082		(42) %		14,951		4,743		215 %
Net loss contingency on regulatory matters		35		(699)		(105) %		(21,632)		63,221		(134) %
Non GAAP - General and Administrative expenses		(33,567)		(23,561)		42 %		(117,991)		(109,246)		8 %
Total Operating expenses		(188,308)		(197,950)		(5) %		(785,826)		(770,922)		2 %
Equity awards compensation expense		21,003		22,441		(6) %		99,222		65,035		53 %
Depreciation and Amortization expense		13,875		15,797		(12) %		53,879		38,136		41 %
Pension service costs		(131)		970		(114) %		401		1,756		(77) %
Acquisition-related costs		613		1,093		(44) %		1,894		12,584		(85) %
Restructuring, integration and transformation costs		5,729		4,123		39 %		44,727		10,677		319 %
Net loss contingency on regulatory matters		35		(699)		(105) %		(21,632)		63,221		(134) %
Total Non GAAP Operating expenses (1)		(147,184)		$    (154,225)		(5) %		(607,335)		(579,513)		5 %

(1) Refer to the "Non-GAAP Financial Measures" section for a definition of this Non-GAAP metric.

 

CRITEO S.A. Reconciliation of Adjusted Net Income to Net Income (Loss) (U.S. dollars in thousands except share and per share data, unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2023		2022		YoY Change		2023		2022		YoY Change
Net income (loss)		$        62,051		$        16,049		287 %		$        54,644		$        10,875		402 %
Adjustments:
Equity awards compensation expense		21,003		22,441		(6) %		99,222		65,035		53 %
Amortization of acquisition-related intangible assets		8,943		12,423		(28) %		34,980		23,276		50 %
Acquisition-related costs		613		1,093		(44) %		1,894		12,584		(85) %
Net loss contingency on regulatory matters		35		(699)		(105) %		(21,632)		63,221		(134) %
Restructuring, integration and transformation costs		5,729		4,123		39 %		44,727		10,677		319 %
Tax impact of the above adjustments (1)		(7,469)		(3,535)		111 %		(22,536)		(12,513)		80 %
Total net adjustments		28,854		35,846		(20) %		136,655		162,280		(16) %
Adjusted net income(2)		$        90,905		$        51,895		75 %		$     191,299		$     173,155		10 %
Weighted average shares outstanding
- Basic		56,107,042		58,732,771				56,170,658		60,004,707
- Diluted		59,687,020		61,898,460				60,231,627		62,760,198
Adjusted net income per share
- Basic		$            1.62		$            0.88		84 %		$            3.41		$            2.89		18 %
- Diluted		$            1.52		$            0.84		81 %		$            3.18		$            2.76		15 %

(1) We consider the nature of the adjustment to determine its tax treatment in the various tax jurisdictions we operate in. The tax impact is calculated by applying the actual tax rate for the entity and period to which the adjustment relates.

(2) Refer to the "Non-GAAP Financial Measures" section for a definition of this Non-GAAP metric.

 

CRITEO S.A. Constant Currency Reconciliation(1) (U.S. dollars in thousands, unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
		2023		2022		YoY Change		2023		2022		YoY Change
Gross Profit as reported		$    276,626		$    246,594		12 %		$    863,044		$    795,200		9 %
Other cost of revenue as reported		(39,750)		(36,810)		8 %		(159,562)		(133,024)		20 %
Contribution ex-TAC as reported(2)		316,376		283,404		12 %		1,022,606		928,224		10 %
Conversion impact U.S. dollar/other currencies		(4,174)		—				3,112		—
Contribution ex-TAC at constant currency		312,202		283,404		10 %		1,025,718		928,224		11 %
Contribution ex-TAC(2)/Revenue as reported		56 %		50 %				52 %		46 %
Traffic acquisition costs as reported		(249,926)		(281,021)		(11) %		(926,839)		(1,088,779)		(15) %
Conversion impact U.S. dollar/other currencies		(3,965)		—				(5,815)		—
Traffic acquisition costs at constant currency		(253,891)		(281,021)		(10) %		(932,654)		(1,088,779)		(14) %
Revenue as reported		566,302		564,425		0.3 %		1,949,445		2,017,003		(3) %
Conversion impact U.S. dollar/other currencies		(209)		—				8,927		—
Revenue at constant currency		$    566,093		$    564,425		0.3 %		$ 1,958,372		$ 2,017,003		(3) %

(1) Constant currency measures exclude the impact of foreign currency fluctuations and is computed by applying the prior year monthly exchange rates to transactions denominated in settlement or billing currencies other than the US dollar.

(2) Refer to the "Non-GAAP Financial Measures" section for a definition of this Non-GAAP metric.

 

CRITEO S.A. Information on Share Count (unaudited)
		Twelve Months Ended
		2023		2022
Shares outstanding as at January 1,		57,263,624		60,675,474
Weighted average number of shares issued during the period		(1,092,966)		(670,767)
Basic number of shares - Basic EPS basis		56,170,658		60,004,707
Dilutive effect of share options, warrants, employee warrants - Treasury method		4,060,969		2,755,491
Diluted number of shares - Diluted EPS basis		60,231,627		62,760,198
Shares issued as at December 31, before Treasury stocks		61,165,663		63,248,728
Treasury stocks as of December 31,		(5,400,572)		(5,985,104)
Shares outstanding as of December 31, after Treasury stocks		55,765,091		57,263,624
Total dilutive effect of share options, warrants, employee warrants		8,471,113		9,507,770
Fully diluted shares as at December 31,		64,236,204		66,771,394

 

CRITEO S.A. Supplemental Financial Information and Operating Metrics (U.S. dollars in thousands except where stated, unaudited)
	YoY Change	QoQ Change	Q4 2023	Q3 2023	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022	Q4 2021
Clients	(4) %	(1) %	18,197	18,423	18,646	18,679	18,990	19,008	18,911	18,764	NA
Revenue	0.3 %	21 %	566,302	469,193	468,934	445,016	564,425	446,921	495,090	510,567	653,267
Americas	(0.4) %	31 %	280,597	213,607	204,755	188,288	281,806	201,274	213,340	194,847	287,270
EMEA	2 %	15 %	189,291	164,890	158,215	160,214	185,125	150,915	176,867	193,954	234,559
APAC	(1) %	6 %	96,414	90,696	105,964	96,514	97,494	94,732	104,883	121,766	131,438
Revenue	0.3 %	21 %	566,302	469,193	468,934	445,016	564,425	446,921	495,090	510,567	653,267
Marketing Solutions	(3) %	18 %	455,030	385,762	395,274	381,907	470,918	387,288	440,423	463,888	577,962
Retail Media (2)	28 %	54 %	76,583	49,813	44,590	38,021	59,801	41,170	54,667	46,679	75,305
Iponweb	3 %	3 %	34,689	33,618	29,070	25,088	33,706	18,463	—	—	—
TAC	(11) %	12 %	(249,926)	(223,798)	(228,717)	(224,398)	(281,021)	(233,543)	(280,565)	(293,650)	(377,076)
Marketing Solutions	(11) %	11 %	(247,497)	(222,421)	(227,645)	(223,729)	(278,302)	(229,266)	(262,454)	(277,800)	(349,584)
Retail Media (2)	(11) %	76 %	(2,429)	(1,377)	(1,072)	(669)	(2,719)	(4,277)	(18,111)	(15,850)	(27,492)
Iponweb	NM	NM	—	—	—	—	—	—	—	—	—
Contribution ex-TAC (1)	12 %	29 %	316,376	245,395	240,217	220,618	283,404	213,378	214,525	216,917	276,191
Marketing Solutions	8 %	27 %	207,533	163,341	167,629	158,178	192,616	158,022	177,969	186,088	228,378
Retail Media (2)	30 %	53 %	74,154	48,436	43,518	37,352	57,082	36,893	36,556	30,829	47,813
Iponweb	3 %	3 %	34,689	33,618	29,070	25,088	33,706	18,463	—	—	—
Cash flow from operating activities	29 %	723 %	161,340	19,614	1,328	41,964	125,455	41,628	13,972	74,930	66,012
Capital expenditures	36 %	24 %	19,724	15,849	45,519	33,219	14,522	20,307	15,452	5,564	10,145
Net cash position	(8) %	52 %	411,257	269,857	298,183	380,663	448,200	407,323	562,546	589,343	515,527
Headcount	(4) %	2 %	3,563	3,487	3,514	3,636	3,716	3,537	3,146	2,939	2,781
Days Sales Outstanding (days - end of month) (3)	(13) days	(3) days	58	61	69	74	71	78	76	74	65

(1)  Refer to the "Non-GAAP Financial Measures" section for a definition of this Non-GAAP metric.

(2) The Retail Media Platform, introduced in June 2020, is a strategic building block of Criteo's Commerce Media Platform and is reported under the retail media segment. It is a self-service solution providing transparency, measurement and control to brands and retailers. In all arrangements running on this platform, Criteo recognizes revenue on a net basis, whereas revenue from arrangements running on legacy Retail Media solutions were accounted for on a gross basis. Most clients using Criteo's legacy Retail Media solutions transitioned to this platform by the end of 2022. During the transition period, Revenue declined but Contribution ex-TAC margin increased. Contribution ex-TAC was not impacted by this transition.

(3) From September 2023, we have included Iponweb in our calculation of Days Sales Outstanding. Days Sales Outstanding excluding Iponweb would have been 71 days for the same period.

 

View original content:https://www.prnewswire.com/news-releases/criteo-reports-record-fourth-quarter-2023-results-302055356.html

SOURCE Criteo Corp

FAQ

What was Criteo's revenue for Q4 2023?

Criteo's revenue for Q4 2023 was $566 million.

How much did Criteo spend on share repurchases in 2023?

Criteo spent $125 million on share repurchases in 2023.

What is Criteo's ticker symbol?

Criteo's ticker symbol is CRTO.

What is Criteo's target for growth in 2024?

Criteo targets mid-single-digit growth in 2024.