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CRITEO REPORTS RECORD THIRD QUARTER 2024 RESULTS

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Criteo (CRTO) reported strong Q3 2024 financial results with revenue of $459M (down 2% YoY) and gross profit of $232M (up 13% YoY). Retail Media showed significant growth with Contribution ex-TAC up 23% YoY, while Performance Media Contribution ex-TAC increased 5%. The company achieved net income of $6M ($0.11 EPS) and Adjusted EBITDA of $82M (up 20% YoY). Free Cash Flow improved substantially to $39M, up from $4M in Q3 2023. Criteo expanded its platform to 3,100 brands and 225 retailers and expects to return $180M to shareholders in 2024.

Criteo (CRTO) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un fatturato di 459 milioni di dollari (in calo del 2% rispetto all'anno precedente) e un utile lordo di 232 milioni di dollari (in aumento del 13% rispetto all'anno precedente). I Media Retail hanno mostrato una crescita significativa, con un contributo escluso il TAC aumentato del 23% rispetto all'anno precedente, mentre il contributo dei Media Performance escluso il TAC è aumentato del 5%. L'azienda ha raggiunto un reddito netto di 6 milioni di dollari (0,11 dollari per azione) e un EBITDA rettificato di 82 milioni di dollari (in aumento del 20% rispetto all'anno precedente). Il flusso di cassa libero è migliorato sostanzialmente a 39 milioni di dollari, rispetto ai 4 milioni di dollari nel terzo trimestre del 2023. Criteo ha ampliato la propria piattaforma a 3.100 marchi e 225 rivenditori e prevede di restituire 180 milioni di dollari agli azionisti nel 2024.

Criteo (CRTO) reportó sólidos resultados financieros para el tercer trimestre de 2024, con ingresos de 459 millones de dólares (una caída del 2% respecto al año anterior) y una ganancia bruta de 232 millones de dólares (un aumento del 13% respecto al año anterior). Los Media Retail mostraron un crecimiento significativo, con una contribución excluyendo el TAC que aumentó un 23% interanual, mientras que la contribución de los Medios de Rendimiento excluyendo el TAC aumentó un 5%. La empresa logró un ingreso neto de 6 millones de dólares (0.11 dólares por acción) y un EBITDA ajustado de 82 millones de dólares (un aumento del 20% interanual). El flujo de caja libre mejoró sustancialmente a 39 millones de dólares, frente a los 4 millones de dólares en el tercer trimestre de 2023. Criteo amplió su plataforma a 3,100 marcas y 225 minoristas y espera devolver 180 millones de dólares a los accionistas en 2024.

Criteo (CRTO)는 2024년 3분기 강력한 재무 결과를 보고했으며, 매출은 4억 5900만 달러(전년 대비 2% 감소)였고, 총 이익은 2억 3200만 달러(전년 대비 13% 증가)였습니다. 소매 미디어는 전년 대비 23% 증가한 TAC 제외 기여도와 함께 상당한 성장을 보였고, 성과 미디어의 TAC 제외 기여도는 5% 증가했습니다. 회사는 600만 달러(주당 0.11 달러의 EPS)의 순이익과 8천 200만 달러(전년 대비 20% 증가)의 조정 EBITDA를 달성했습니다. 자유 현금 흐름은 400만 달러에서 3900만 달러로 크게 개선되었습니다. Criteo는 플랫폼을 3,100 개 브랜드와 225 개 소매업체로 확대하였으며, 2024년에는 주주에게 1억 8000 만 달러를 환급할 것으로 기대하고 있습니다.

Criteo (CRTO) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires de 459 millions de dollars (en baisse de 2 % par rapport à l'année précédente) et un bénéfice brut de 232 millions de dollars (en hausse de 13 % par rapport à l'année précédente). Les Médias de Retail ont montré une croissance significative, le chiffre d'affaires hors TAC ayant augmenté de 23 % par rapport à l'année précédente, tandis que la contribution des Médias de Performance hors TAC a crû de 5 %. L'entreprise a réalisé un bénéfice net de 6 millions de dollars (0,11 $ EPS) et un EBITDA ajusté de 82 millions de dollars (en hausse de 20 % par rapport à l'année précédente). Le flux de trésorerie disponible s'est considérablement amélioré, atteignant 39 millions de dollars, contre 4 millions de dollars au troisième trimestre 2023. Criteo a élargi sa plateforme à 3 100 marques et 225 détaillants, et prévoit de retourner 180 millions de dollars aux actionnaires en 2024.

Criteo (CRTO) berichtete über starke Finanzergebnisse für das 3. Quartal 2024, mit einem Umsatz von 459 Millionen Dollar (ein Rückgang von 2% im Jahresvergleich) und einem Bruttogewinn von 232 Millionen Dollar (ein Anstieg von 13% im Jahresvergleich). Retail Media zeigte ein signifikantes Wachstum, mit einem Beitrag ohne TAC, der um 23% im Jahresvergleich zunahm, während der Beitrag der Performance Media ohne TAC um 5% anstieg. Das Unternehmen erzielte einen Nettogewinn von 6 Millionen Dollar (0,11 Dollar EPS) und ein bereinigtes EBITDA von 82 Millionen Dollar (ein Anstieg von 20% im Jahresvergleich). Der freie Cashflow verbesserte sich erheblich auf 39 Millionen Dollar, gegenüber 4 Millionen Dollar im 3. Quartal 2023. Criteo erweiterte seine Plattform auf 3.100 Marken und 225 Einzelhändler und plant, im Jahr 2024 180 Millionen Dollar an die Aktionäre zurückzugeben.

Positive
  • Gross profit increased 13% YoY to $232M with margin improving to 51%
  • Retail Media Contribution ex-TAC grew 23% YoY
  • Adjusted EBITDA increased 20% YoY to $82M
  • Free Cash Flow improved significantly to $39M from $4M YoY
  • Platform expansion to 3,100 brands and 225 retailers
Negative
  • Revenue declined 2% YoY to $459M
  • Net income decreased 7% YoY to $6M
  • Diluted EPS dropped 8% YoY to $0.11
  • Activated media spend down 2% YoY to $1.1B in Q3

Insights

Q3 2024 shows strong financial performance with several positive indicators. Contribution ex-TAC grew 8% YoY to $266 million, while Adjusted EBITDA increased 20% to $82 million. The company's retail media segment is particularly impressive, growing 23% YoY at constant currency. Free cash flow saw a remarkable 925% increase to $39 million.

The planned $180 million capital return to shareholders in 2024 and robust cash position of $237 million demonstrate strong financial health. The expansion to 3,100 brands and 225 retailers indicates successful market penetration. However, the slight revenue decline of 2% YoY warrants attention, though this is offset by improved profitability metrics and margin expansion.

The retail media segment's performance signals Criteo's strong positioning in the growing digital advertising market. The 120% same-retailer Contribution ex-TAC retention rate demonstrates strong client satisfaction and platform stickiness. Notable client wins like JCPenney and United Airlines' Kinective Media validate the platform's value proposition. The $4.3 billion activated media spend over 12 months, despite a slight YoY decline, shows substantial market presence.

The IDC MarketScape leadership recognition strengthens Criteo's competitive position in the retail media network space, which is important as retailers increasingly prioritize media monetization.

Expects to Return a Record $180 Million of Capital to Shareholders in 2024
Hosting Retail Media Investor Update on November 18, 2024

NEW YORK, Oct. 30, 2024 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO) ("Criteo" or the "Company"), the commerce media company, today announced financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights:

The following table summarizes our consolidated financial results for the three months and nine months ended September 30, 2024:


Three Months Ended

Nine Months Ended


September 30,

September 30,


2024


2023


YoY
Change

2024


2023


YoY
Change


(in millions, except EPS data)

GAAP Results











Revenue

$459


$469


(2) %

$1,380


$1,383


— %

Gross Profit

$232


$205


13 %

$682


$586


16 %

Net Income (loss)

$6


$7


(7) %

$43


$(7)


677 %

Gross Profit margin

51 %


44 %


7ppt

49 %


42 %


7 ppt

Diluted EPS

$0.11


$0.12


(8) %

$0.69


$(0.14)


593 %

Cash from operating activities

$58


$20


193 %

$89


$63


41 %

Cash and cash equivalents

$209


$195


7 %

$209


$195


7 %












Non-GAAP Results1











Contribution ex-TAC

$266


$245


8 %

$787


$706


11 %

Adjusted EBITDA

$82


$68


20 %

$246


$163


51 %

Adjusted diluted EPS

$0.96


$0.71


35 %

$2.84


$1.66


71 %

Free Cash Flow (FCF)

$39


$4


925 %

$35


$(32)


212 %

FCF / Adjusted EBITDA

47 %


6 %


41ppt

14 %


(19) %


33 ppt

"We are pleased to report another strong quarter with robust growth and solid progress across our strategic initiatives," said Megan Clarken, Chief Executive Officer of Criteo. "Our momentum is a testament to our team's hard work and the trust our clients place in us. We remain focused on executing our plan to create the world's leading Commerce Media Platform and drive shareholder value."

Operating Highlights

  • Retail Media Contribution ex-TAC grew 23% year-over-year at constant currency2 and same-retailer Contribution ex-TAC3 retention for Retail Media was 120%.
  • We expanded our platform adoption to 3,100 brands and 225 retailers and marketplaces, including JCPenney, Office Depot & ODP Business Solutions, Metro AG, Flaschenpost and Rohlik.
  • Kinective Media by United Airlines chose Criteo to help power and scale its offsite monetization.
  • Performance Media4 Contribution ex-TAC was up 5% year-over-year at constant currency.
  • Criteo's activated media spend5 was $4.3 billion in the last 12 months and $1.1 billion in Q3 2024, down (2)% year-over-year at constant currency2.
  • We deployed $157 million of capital for share repurchases in the first nine months of 2024, and we expect to return $180 million of capital to shareholders in 2024.
  • Criteo was named a Leader in IDC MarketScape's 2024 worldwide retail media network service providers vendor assessment.






1 Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted diluted EPS and Free Cash Flow are not measures calculated in accordance with U.S. GAAP.

2 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.

3 Same-retailer Contribution ex-TAC retention is the 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.

4 Beginning with the first quarter of 2024, Criteo changed its segment reporting structure to two reportable segments: Retail Media and Performance Media. See the Form 8-K filed with the SEC on March 4, 2024 for more details.

5 Activated media spend is defined as the media spend activated on behalf of our Retail Media clients and our Performance Media clients.

Financial Summary

Revenue for Q3 2024 was $459 million, gross profit was $232 million and Contribution ex-TAC was $266 million. Net income for Q3 was $6 million, or $0.11 per share on a diluted basis. Adjusted EBITDA for Q3 was $82 million, resulting in an adjusted diluted EPS of $0.96. As reported, revenue for Q3 decreased by (2)%, gross profit increased 13% and Contribution ex-TAC increased by 8%. At constant currency, revenue for Q3 decreased by (2)% and Contribution ex-TAC increased by 9%. Cash flow from operating activities was $58 million in Q3 and Free Cash Flow was $39 million in Q3. As of September 30, 2024, we had $237 million in cash and marketable securities on our balance sheet.

Sarah Glickman, Chief Financial Officer, said, "We delivered strong operating leverage enabled by top-line growth and disciplined cost management in Q3. We enter the holiday season with confidence to deliver double-digit growth and margin expansion for the year while continuing to invest in our transformation."

Third Quarter 2024 Results

Revenue, Gross Profit and Contribution ex-TAC

Revenue decreased by (2)% year-over-year in Q3 2024, or (2)% at constant currency, to $459 million (Q3 2023: $469 million). Gross profit increased by 13% year-over-year in Q3 2024 to $232 million (Q3 2023: $205 million). Gross profit as a percentage of revenue, or gross profit margin, was 51% (Q3 2023: 44%). Contribution ex-TAC in the third quarter increased 8% year-over-year, or increased 9% at constant currency, to $266 million (Q3 2023: $245 million).

  • Retail Media revenue increased 22%, or 22% at constant currency, reflecting continued strength in Retail Media onsite. Retail Media Contribution ex-TAC increased 23%, or 23% at constant currency, driven by continued strength in Retail Media onsite, new client integrations and growing network effects of the platform.
  • Performance Media revenue decreased (5)%, or (5)% at constant currency, and Performance Media Contribution ex-TAC increased 5%, or 5% at constant currency, driven by the continued traction of Commerce Audiences as more clients adopt full funnel activation and resilient Retargeting, partially offset by lower AdTech services and supply.

Net Income (Loss) and Adjusted Net Income

Net income was $6 million in Q3 2024 (Q3 2023: net income of $7 million). Net income allocated to shareholders of Criteo was $6 million, or $0.11 per share on a diluted basis (Q3 2023: net income available to shareholders of $7 million, or $0.12 per share on a diluted basis).

Adjusted net income, a non-GAAP financial measure, was $56 million, or $0.96 per share on a diluted basis (Q3 2023: $43 million, or $0.71 per share on a diluted basis).

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA was $82 million, representing an increase of 20% year-over-year (Q3 2023: $68 million). This primarily reflects higher Contribution ex-TAC over the period and effective cost management. Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 31% (Q3 2023: 28%).

Operating expenses increased by 15% year-over-year to $222 million (Q3 2023: $194 million), mostly driven by planned growth investments. Non-GAAP operating expenses increased by 7% year-over-year to $158 million (Q3 2023: $148 million).

Cash Flow, Cash and Financial Liquidity Position

Cash flow from operating activities was $58 million in Q3 2024 (Q3 2023: $20 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, was $39 million in Q3 2024 (Q3 2023: $4 million). On a trailing 12-month basis, Free Cash Flow was $177 million.

Cash and cash equivalents, and marketable securities, were $237 million, a $(122) million decrease compared to December 31, 2023, after spending $157 million on share repurchases in the nine months ended September 30, 2024.

As of September 30, 2024, the Company had total financial liquidity of approximately $711 million, including its cash position, marketable securities, revolving credit facility and treasury shares reserved for M&A.

2024 Business Outlook

The following forward-looking statements reflect Criteo's expectations as of October 30, 2024.

Fiscal year 2024 guidance:

  • We now expect Contribution ex-TAC to grow +10% to 11% at constant currency.
  • We now expect an Adjusted EBITDA margin of approximately 32% to 33% of Contribution ex-TAC.

Fourth quarter 2024 guidance:

  • We expect Contribution ex-TAC between $327 million and $333 million, or year-over-year growth at constant-currency of +3% to +5%.
  • We expect Adjusted EBITDA between $114 million and $120 million.

The guidance for the fourth 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 0.915, a U.S. dollar-Japanese Yen rate of 151, a U.S. dollar-British pound rate of 0.778, a U.S. dollar-Korean Won rate of 1,353 and a U.S. dollar-Brazilian real rate of 5.34.

The guidance assumes that no additional acquisitions are completed during the fourth quarter of 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.

Retail Media Investor Update

Criteo will webcast its Retail Media investor presentation on November 18, 2024, starting at 8:30 AM ET, 2:30 PM CET. The event will be an opportunity for the Company to provide an update on its Retail Media business and opportunities ahead. It will be accessible via live webcast or on-demand via our Investor site post-event.

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, 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, and certain acquisition costs. 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, 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, and certain acquisition and integration costs. 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 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 23, 2024, 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 fluctuating 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, October 30, 2024, at 8:00 AM ET, 1:00 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:    +1 800 836 8184
  • International:    +1 646 357 8785
  • France    080-094-5120

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)




September 30, 2024


December 31, 2023

Assets





Current assets:





Cash and cash equivalents


$                         208,740


$                         336,341

Trade receivables, net of allowances of $ 35.1 million and $ 43.3 million at
September 30, 2024 and December 31, 2023, respectively


646,283


775,589

Income taxes


9,785


2,065

Other taxes


132,370


109,306

Other current assets


44,879


48,291

Restricted cash


75,250


75,000

Marketable securities - current portion


23,010


5,970

Total current assets


1,140,317


1,352,562

Property, plant and equipment, net


116,866


126,494

Intangible assets, net


170,359


180,888

Goodwill


526,569


524,197

Right of Use Asset - operating lease


110,350


112,487

Marketable securities - non current portion


5,598


16,575

Non-current financial assets


4,957


5,294

Other non-current assets


62,216


60,742

Deferred tax assets


71,128


52,680

    Total non-current assets


1,068,043


1,079,357

Total assets


$                     2,208,360


$                     2,431,919






Liabilities and shareholders' equity





Current liabilities:





Trade payables


$                         629,997


$                         838,522

Contingencies - current portion


1,604


1,467

Income taxes


15,490


17,213

Financial liabilities - current portion


4,753


3,389

Lease liability - operating - current portion


26,159


35,398

Other taxes


83,401


66,659

Employee - related payables


104,095


113,287

Other current liabilities


109,118


104,552

Total current liabilities


974,617


1,180,487

Deferred tax liabilities


3,182


1,083

Defined benefit plans


4,938


4,123

Financial liabilities - non current portion


320


77

Lease liability - operating - non current portion


87,321


83,051

Contingencies - non current portion


31,939


32,625

Other non-current liabilities


20,536


19,082

    Total non-current liabilities


148,236


140,041

Total liabilities


1,122,853


1,320,528

Commitments and contingencies





Shareholders' equity:





Common shares, €0.025 par value, 59,180,216 and 61,165,663 shares
authorized, issued and outstanding at September 30, 2024  and December 31,
2023, respectively.


1,970


2,023

Treasury stock, 4,399,179 and 5,400,572 shares at cost as of September 30,
2024  and December 31, 2023 , respectively.


(152,997)


(161,788)

Additional paid-in capital


728,707


769,240

Accumulated other comprehensive income (loss)


(83,345)


(85,326)

Retained earnings


557,072


555,456

Equity - attributable to shareholders of Criteo S.A.


1,051,407


1,079,605

Non-controlling interests


34,100


31,786

Total equity


1,085,507


1,111,391

Total equity and liabilities


$                     2,208,360


$                     2,431,919

 

CRITEO S.A.
Consolidated Statement of Operations
(U.S. dollars in thousands, except share and per share data, unaudited)




Three Months Ended


Nine Months Ended



September 30,


September 30,



2024


2023


2024


2023










Revenue


$    458,892


$    469,193


$ 1,380,254


$ 1,383,143










Cost of revenue









Traffic acquisition cost


(192,789)


(223,798)


(593,170)


(676,913)

Other cost of revenue


(34,171)


(40,268)


(105,084)


(119,812)










Gross profit


231,932


205,127


682,000


586,418










Operating expenses:









Research and development expenses


(85,285)


(62,522)


(211,782)


(193,887)

Sales and operations expenses


(90,823)


(94,572)


(278,734)


(308,325)

General and administrative expenses


(46,222)


(36,599)


(134,590)


(95,306)

Total Operating expenses


(222,330)


(193,693)


(625,106)


(597,518)

Income (loss) from operations


9,602


11,434


56,894


(11,100)

Financial and Other income


(8)


(2,967)


889


2,008

Income (loss) before taxes


9,594


8,467


57,783


(9,092)

Provision for income tax (expense) benefit


(3,450)


(1,832)


(15,014)


1,685

Net income (loss)


$         6,144


$         6,635


$       42,769


$       (7,407)










Net income (loss) available to shareholders of Criteo S.A.


$         6,245


$         6,927


$       40,476


$       (7,758)

Net income (loss) available to non-controlling interests


$          (101)


$          (292)


$         2,293


$            351










Weighted average shares outstanding used in computing per
share amounts:









Basic


54,695,112


56,297,666


54,840,650


56,173,218

Diluted


58,430,133


60,172,953


58,909,952


56,173,218










Net income (loss) allocated to shareholders per share:









Basic


$           0.11


$           0.12


$           0.74


$         (0.14)

Diluted


$           0.11


$           0.12


$           0.69


$         (0.14)

 

CRITEO S.A.

Consolidated Statement of Cash Flows

(U.S. dollars in thousands, unaudited)




Three Months Ended


Nine Months Ended



September 30,


September 30,



2024


2023


2024


2023

Net income (loss)


$      6,144


$      6,635


$    42,769


$    (7,407)

Non-cash and non-operating items


53,439


(6,180)


136,013


42,706

          - Amortization and provisions


20,810


18,866


67,134


56,288

           - Payment for contingent liability on regulatory matters


—


(43,334)


—


(43,334)

          - Equity awards compensation expense


34,215


24,012


82,193


76,353

          - Net (gain) or loss on disposal of non-current assets


350


(106)


924


(8,903)

          - Change in uncertain tax positions


7


153


1,764


(314)

          - Net change in fair value of earn-out


15


983


3,202


1,499

          - Change in deferred taxes


(24,459)


(4,206)


(16,370)


(24,742)

          - Change in income taxes


19,099


(4,392)


(9,321)


(18,007)

          - Other


3,402


1,844


6,487


3,866

Changes in working capital related to operating activities


(2,080)


19,159


(90,075)


27,607

           - (Increase) / Decrease in trade receivables


2,075


(50,564)


138,595


78,890

           - Increase / (Decrease) in trade payables


(17,653)


57,367


(210,863)


(71,190)

           - (Increase) / Decrease in other current assets


7,591


8,620


(16,430)


1,968

           - Increase / (Decrease) in other current liabilities


5,924


3,329


1,452


17,926

           - Change in operating lease liabilities and right of use assets


(17)


407


(2,829)


13

CASH FROM OPERATING ACTIVITIES


57,503


19,614


88,707


62,906

Acquisition of intangible assets, property, plant and equipment


(19,396)


(16,331)


(56,364)


(77,838)

Change in accounts payable related to intangible assets, property,
plant and equipment


497


482


3,122


(16,749)

Payment for business, net of cash acquired


—


—


(527)


(6,957)

Proceeds from disposition of investment


—


—


—


9,625

Change in other non-current financial assets


(4,910)


(13)


(5,197)


(12,280)

CASH USED FOR INVESTING ACTIVITIES


(23,809)


(15,862)


(58,966)


(104,199)

Proceeds from exercise of stock options


3,226


251


4,433


1,948

Repurchase of treasury stocks


(54,997)


(28,488)


(157,492)


(103,354)

Cash payment for contingent consideration


—


—


—


(22,025)

Change in other financing activities


(486)


(504)


(1,296)


(1,427)

CASH USED FOR FINANCING ACTIVITIES


(52,257)


(28,741)


(154,355)


(124,858)

Effect of exchange rates changes on cash and cash equivalents


10,855


(3,337)


(2,737)


(12,192)

Net decrease in cash and cash equivalents and restricted cash


(7,708)


(28,326)


(127,351)


(178,343)

Net cash and cash equivalents and restricted cash at beginning of
period


291,698


298,183


411,341


448,200

Net cash and cash equivalents and restricted cash at end of
period


$ 283,990


$ 269,857


$ 283,990


$ 269,857










SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION









Cash paid for taxes, net of refunds


$  (11,528)


$  (10,276)


$  (36,099)


$  (41,377)

Cash paid for interest


$       (379)


$       (439)


$    (1,032)


$    (1,055)

 

CRITEO S.A.

Reconciliation of Cash from Operating Activities to Free Cash Flow

(U.S. dollars in thousands, unaudited)




Three Months Ended


Nine Months Ended



September 30,


September 30,



2024


2023


2024


2023










CASH FROM OPERATING ACTIVITIES


$    57,503


$     19,614


$     88,707


$     62,906

Acquisition of intangible assets, property, plant and equipment


(19,396)


(16,331)


(56,364)


(77,838)

Change in accounts payable related to intangible assets, property, plant and
equipment


497


482


3,122


(16,749)

FREE CASH FLOW (1)


$    38,604


$       3,765


$     35,465


$   (31,681)

(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




Nine Months Ended



September 30,




September 30,



2024


2023


YoY Change


2024


2023


YoY Change













Gross Profit

231,932


205,127


13 %


682,000


586,418


16 %













Other Cost of Revenue

34,171


40,268


(15) %


105,084


119,812


(12) %













Contribution ex-TAC (1)

$     266,103


$     245,395


8 %


$     787,084


$     706,230


11 %

(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






Nine Months Ended








September 30,






September 30,






Segment


2024


2023


YoY
Change


YoY
Change
at
Constant
Currency
(3)


2024


2023


YoY
Change


YoY
Change
at
Constant
Currency
(3)

Revenue


















Retail Media


$         60,765


$         49,813


22 %


22 %


$      166,414


$  132,424


26 %


26 %


Performance Media (1)


398,127


419,380


(5) %


(5) %


1,213,840


1,250,719


(3) %


(1.5) %


Total


458,892


469,193


(2) %


(2) %


1,380,254


1,383,143


— %


1 %



















Contribution ex-TAC


















Retail Media


59,583


48,436


23 %


23 %


163,618


129,306


27 %


26 %


Performance Media


206,520


196,959


5 %


5 %


623,466


576,924


8 %


10 %


Total (2)


$      266,103


$      245,395


8 %


9 %


$      787,084


$  706,230


11 %


13 %

(1) Beginning with the first quarter of 2024, Criteo changed its segment reporting structure to two reportable segments: Retail Media and Performance Media. See the Form 8-K filed with the SEC on March 4, 2024 for more details.

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

(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




Nine Months Ended





September 30,




September 30,





2024


2023


YoY

Change


2024


2023


YoY

Change

Net income (loss)


$      6,144


$      6,635


(7) %


$    42,769


$    (7,407)


677 %

Adjustments:













Financial (Income) expense


8


2,958


(100) %


(889)


(1,692)


47 %

Provision for income taxes


3,450


1,832


88 %


15,014


(1,685)


991 %

Equity awards compensation expense


34,863


24,323


43 %


84,032


78,219


7 %

Pension service costs


174


179


(3) %


518


532


(3) %

Depreciation and amortization expense


25,684


24,648


4 %


75,679


76,574


(1) %

Acquisition-related costs


1,961


86


NM


1,961


1,281


53 %

Net loss contingency on regulatory matters


—


(51)


100 %


—


(21,667)


100 %

Restructuring, integration and transformation costs


9,717


7,833


24 %


27,026


38,998


(31) %

Total net adjustments


75,857


61,808


23 %


203,341


170,560


19 %

Adjusted EBITDA (1)


$    82,001


$    68,443


20 %


$  246,110


$  163,153


51 %

(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




Nine Months Ended





September 30,




September 30,





2024


2023


YoY
Change


2024


2023


YoY
Change

Research and Development expenses


$      (85,285)


$      (62,522)


36 %


$    (211,782)


$    (193,887)


9 %

Equity awards compensation expense


21,261


11,938


78 %


44,915


44,613


1 %

Depreciation and Amortization expense


13,593


9,383


45 %


38,196


28,227


35 %

Pension service costs


92


95


(3) %


273


281


(3) %

Acquisition-related costs


—


4


(100) %


—


507


(100) %

Restructuring, integration and transformation costs


5,455


3,482


57 %


8,164


8,823


(7) %

Non GAAP - Research and Development expenses


(44,884)


(37,620)


19 %


(120,234)


(111,436)


8 %

Sales and Operations expenses


(90,823)


(94,572)


(4) %


(278,734)


(308,325)


(10) %

Equity awards compensation expense


5,032


6,387


(21) %


16,093


16,814


(4) %

Depreciation and Amortization expense


3,279


3,252


1 %


9,649


10,127


(5) %

Pension service costs


26


28


(7) %


78


83


(6) %

Restructuring, integration and transformation costs


855


(391)


319 %


5,493


17,010


(68) %

Non GAAP - Sales and Operations expenses


(81,631)


(85,296)


(4) %


(247,421)


(264,291)


(6) %

General and Administrative expenses


(46,222)


(36,599)


26 %


(134,590)


(95,306)


41 %

Equity awards compensation expense


8,570


5,998


43 %


23,024


16,792


37 %

Depreciation and Amortization expense


437


564


(23) %


1,325


1,650


(20) %

Pension service costs


56


56


— %


167


168


(1) %

Acquisition-related costs


1,961


82


NM


1,961


774


153 %

Restructuring, integration and transformation costs


3,407


4,742


(28) %


13,369


13,165


2 %

Net loss contingency on regulatory matters


—


(51)


100 %


—


(21,667)


100 %

Non GAAP - General and Administrative expenses


(31,791)


(25,208)


26 %


(94,744)


(84,424)


12 %

Total Operating expenses


(222,330)


(193,693)


15 %


(625,106)


(597,518)


5 %

Equity awards compensation expense


34,863


24,323


43 %


84,032


78,219


7 %

Depreciation and Amortization expense


17,309


13,199


31 %


49,170


40,004


23 %

Pension service costs


174


179


(3) %


518


532


(3) %

Acquisition-related costs


1,961


86


NM


1,961


1,281


53 %

Restructuring, integration and transformation costs


9,717


7,833


24 %


27,026


38,998


(31) %

Net loss contingency on regulatory matters


—


(51)


100 %


—


(21,667)


100 %

Total Non GAAP Operating expenses (1)


(158,306)


$    (148,124)


7 %


(462,399)


(460,151)


— %

(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




Nine Months Ended





September 30,




September 30,





2024


2023


YoY
Change


2024


2023


YoY
Change














Net income (loss)


$          6,144


$          6,635


(7) %


$        42,769


$        (7,407)


677 %

Adjustments:













Equity awards compensation expense


34,863


24,323


43 %


84,032


78,219


7 %

Amortization of acquisition-related intangible assets


8,995


8,692


3 %


26,287


26,037


1 %

Acquisition-related costs


1,961


86


NM


1,961


1,281


53 %

Net loss contingency on regulatory matters


—


(51)


100 %


—


(21,667)


100 %

Restructuring, integration and transformation costs


9,717


7,833


24 %


27,026


38,998


(31) %

Tax impact of the above adjustments (1)


(5,862)


(4,785)


(23) %


(15,048)


(15,067)


— %

Total net adjustments


49,674


36,098


38 %


124,258


107,801


15 %

Adjusted net income(2)


$        55,818


$        42,733


31 %


$     167,027


$     100,394


66 %














Weighted average shares outstanding













 - Basic


54,695,112


56,297,666




54,840,650


56,173,218



 - Diluted


58,430,133


60,172,953




58,909,952


60,394,517
















Adjusted net income per share













 - Basic


$            1.02


$            0.76


34 %


$            3.05


$            1.79


70 %

 - Diluted


$            0.96


$            0.71


35 %


$            2.84


$            1.66


71 %

(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




Nine Months Ended





September 30,




September 30,





2024


2023


YoY

Change


2024


2023


YoY

Change














Gross Profit as reported


$        231,932


$        205,127


13 %


$        682,000


$        586,418


16 %














Other cost of revenue as reported


34,171


40,268


(15) %


105,084


119,812


(12) %














Contribution ex-TAC as reported(2)


266,103


245,395


8 %


787,084


706,230


11 %

Conversion impact U.S. dollar/other currencies


534


—




9,858


—



Contribution ex-TAC at constant currency


266,637


245,395


9 %


796,942


706,230


13 %














Traffic acquisition costs as reported


192,789


223,798


(14) %


593,170


676,913


(12) %

Conversion impact U.S. dollar/other currencies


1,164


—




8,253


—



Traffic acquisition costs at constant currency


193,953


223,798


(13) %


601,423


676,913


(11) %














Revenue as reported


458,892


469,193


(2) %


1,380,254


1,383,143


— %

Conversion impact U.S. dollar/other currencies


1,698


—




18,110


—



Revenue at constant currency


$        460,590


$        469,193


(2) %


$    1,398,364


$    1,383,143


1 %

(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)




Nine Months Ended



2024


2023

Shares outstanding as at January 1,


55,765,091


57,263,624

Weighted average number of shares issued during the period


(924,441)


(1,090,406)

Basic number of shares - Basic EPS basis


54,840,650


56,173,218

Dilutive effect of share options, warrants, employee warrants - Treasury method


4,069,302


—

Diluted number of shares - Diluted EPS basis


58,909,952


56,173,218






Shares issued as at September 30, before Treasury stocks


59,180,216


63,350,663

Treasury stocks as of September 30,


(4,399,179)


(7,094,574)

Shares outstanding as of September 30, after Treasury stocks


54,781,037


56,256,089

Total dilutive effect of share options, warrants, employee warrants


7,238,687


8,341,387

Fully diluted shares as at September 30,


62,019,724


64,597,476

 

CRITEO S.A.

Supplemental Financial Information and Operating Metrics

(U.S. dollars in thousands except where stated, unaudited)



YoY

Change

QoQ

Change

Q3

2024

Q2

2024

Q1

2024

Q4

2023

Q3

2023

Q2

2023

Q1

2023

Q4

2022

Q3

2022













Clients

(7) %

(3) %

17,162

17,744

17,767

18,197

18,423

18,646

18,679

18,990

19,008













Revenue 

(2) %

(3) %

458,892

471,307

450,055

566,302

469,193

468,934

445,016

564,425

446,921

Americas

(6) %

(3) %

206,816

212,374

198,365

280,597

219,667

208,463

188,288

281,806

201,274

EMEA

2 %

(4) %

161,745

168,496

162,842

189,291

158,756

163,969

160,214

185,125

150,915

APAC

— %

— %

90,331

90,437

88,848

96,414

90,770

96,502

96,514

97,494

94,732













Revenue

(2) %

(3) %

458,892

471,307

450,055

566,302

469,193

468,934

445,016

564,425

446,921

Retail Media

22 %

11 %

60,765

54,777

50,872

76,583

49,813

44,590

38,021

59,801

41,170

Performance Media

(5) %

(4) %

398,127

416,530

399,183

489,719

419,380

424,344

406,995

504,624

405,751













TAC

(14) %

(6) %

(192,789)

(204,214)

(196,167)

(249,926)

(223,798)

(228,717)

(224,398)

(281,021)

(233,543)

Retail Media

(14) %

30 %

(1,182)

(911)

(703)

(2,429)

(1,377)

(1,072)

(669)

(2,719)

(4,277)

Performance Media

(14) %

(6) %

(191,607)

(203,303)

(195,464)

(247,497)

(222,421)

(227,645)

(223,729)

(278,302)

(229,266)













Contribution ex-TAC (1)

8 %

— %

266,103

267,093

253,888

316,376

245,395

240,217

220,618

283,404

213,378

Retail Media

23 %

11 %

59,583

53,866

50,169

74,154

48,436

43,518

37,352

57,082

36,893

Performance Media

5 %

(3) %

206,520

213,227

203,719

242,222

196,959

196,699

183,266

226,322

176,485













Cash flow from
operating activities 

193 %

235 %

57,503

17,187

14,017

161,340

19,614

1,328

41,964

125,455

41,628













Capital expenditures

19 %

(11) %

18,899

21,119

13,224

19,724

15,849

45,519

33,219

14,522

20,307













Net cash position

5 %

(3) %

283,990

291,698

341,862

411,257

269,857

298,183

380,663

448,200

407,323













Headcount

— %

— %

3,504

3,498

3,559

3,563

3,487

3,514

3,636

3,716

3,537













Days Sales Outstanding
(days - end of month) (2)

4 days

1 days

65

64

66

58

61

69

74

71

78

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

(2) 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.

 

Cision View original content:https://www.prnewswire.com/news-releases/criteo-reports-record-third-quarter-2024-results-302290801.html

SOURCE Criteo Corp

FAQ

What was Criteo's (CRTO) revenue in Q3 2024?

Criteo reported revenue of $459 million in Q3 2024, representing a 2% decrease year-over-year.

How much did Criteo's (CRTO) Retail Media segment grow in Q3 2024?

Criteo's Retail Media Contribution ex-TAC grew 23% year-over-year at constant currency in Q3 2024.

What is Criteo's (CRTO) capital return plan for 2024?

Criteo expects to return $180 million of capital to shareholders in 2024.

What was Criteo's (CRTO) Adjusted EBITDA for Q3 2024?

Criteo reported Adjusted EBITDA of $82 million in Q3 2024, up 20% year-over-year.

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Criteo S.A.

NASDAQ:CRTO

CRTO Rankings

#1930 Ranked by Market Cap
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CRTO Latest News

Nov 18, 2024
CRITEO HOSTS RETAIL MEDIA INVESTOR UPDATE
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Oct 23, 2024
Criteo Named a Leader in IDC MarketScape's 2024 Worldwide Retail Media Network Service Providers Vendor Assessment
Oct 22, 2024
MobileFuse Bolsters Retail Media Capabilities with Criteo Commerce Audiences
Oct 16, 2024
CRITEO TO ANNOUNCE THIRD QUARTER 2024 FINANCIAL RESULTS ON OCTOBER 30, 2024

CRTO Stock Data

2.21B
53.93M
2.26%
98.53%
3.04%
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