Criteo SA · NASDAQ:CRTO
Criteo SA — Q1 2025 Earnings Presentation
31 slides from Criteo SA's earnings presentation, May 2, 2025
Slide 1: Q1 2025 Earnings Investor Presentation
Q1 2025 Earnings Investor Presentation May 2, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on our management’s beliefs and assumptions and on information
Slide 3: Our Next Phase of Growth
Our Next Phase of Growth Michael Komasinski Chief Executive Officer 3
Slide 4: We Have a Leading Commerce Media Platform
We Have a Leading Commerce Media Platform I-COMMERCE OMN RETAIL MEDIA ASTRUCTURE INFR RETAIL MEDIA EL LIGENC N T E I ES ERCE EXPERIENC Commerce Media Demand Side Platform Commerce Media Monetization Platform COM for enterprise brands, retailers and agencies for enterprise retailers and marketplaces
Slide 5: Where Brand Meets Performance
Where Brand Meets Performance FIND ME INSPIRE ME CONVINCE ME WIN ME OVER AGAIN Increase brand awareness Engage users with personalized offers Convert shoppers into buyers or Build brand loyalty and inspire and capture shopper interest and interactive formats drive them in-store the next purchase 5
Slide 6: Commerce AI Is At The Core of Everything We Do
Commerce AI Is At The Core of Everything We Do ORGANIZING THE WORLD’S LARGEST MACHINE LEARNING COMMERCE Analyses large amounts of historical UNLOCKING OVER A TRILLION DATASET data to identify trends and inform CUSTOMER JOURNEYS decisions 6 Trillion+ Bidding SMARTER AUDIENCE TARGETING Opportunities D
Slide 7: We Delivered Strong Performance in Q1
Commerce Media = We Delivered Strong Retail Media + Performance in Q1 Performance Media • $264M in Contribution ex-TAC, up 7% YoY • Retail Media up 18% YoY • Performance Media up 4% YoY, driven by strong momentum in Commerce Audiences • Achieved adj. EBITDA margin of 35%, above guidance 7
Slide 8: We Continue to Strengthen our Leadership in Retail Media
We Continue to Strengthen our Leadership in Retail Media Leading Footprint Criteo vs. the Market (Q4 2023 = 100) Over 200+ Retailers, incl. 70% of Top 30 U.S. & 50% of Top 30 EMEA Retailers Criteo 3,800+ Global brands Market ~$335M in Media Spend, up 21% YoY Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 New W
Slide 9: We Drive Performance Throughout the Entire Buyer Journey
We Drive Performance Throughout the DEFINE YOUR Entire Buyer Journey GOAL SET YOUR BUDGET AI-Powered Automated Campaigns from product discovery to purchase. Discovery Achieving the best marketing results at scale is becoming DESIGN more challenging due to fragmented channels and evolving YOUR AD cus
Slide 10: Financial & Operational Update
Financial & Operational Update Sarah Glickman Chief Financial Officer 10
Slide 11: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights % YoY vs. Guidance Media Spend1 $919M +0%2 Revenue $451M +3%2 Contribution ex-TAC $264M +7%2 Above Adj. EBITDA $92M +30% Above Net Income $40M +367% Diluted EPS $0.66 +450% Non-GAAP Diluted EPS $1.10 +38% Free Cash Flow3 $45M NM 1. Media spend is defined as working media
Slide 12: We Saw Momentum Across our Segments in Q1
We Saw Momentum Across our Segments in Q1 KEY Client retention close A third of media spend ~40% of our live clients DRIVERS to 90% activated use more than one through agencies Criteo solution RETAIL MEDIA PERFORMANCE MEDIA • $335M in media spend1, up +21%2 YoY $584M in media spend1, down -9%2 YoY d
Slide 13: Robust Balance Sheet, Cash and Liquidity Position
Robust Balance Sheet, Cash and Liquidity Position Financial flexibility to support organic growth investments, M&A and share repurchase program FREE CASH FLOW CASH & CASH BALANCE SHEET - ($M) EQUIVALENTS ($M) TOTAL ASSETS ($M) ~$810M1 total financial liquidity and no long-term debt 333 329 2,266 2,1
Slide 14: 2025 Outlook
2025 Outlook BACKDROP: Volatile macroeconomic environment and changes in scope for two Retail Media clients in the U.S.; financial discipline FY 2025 Q2 2025 Targeting low-single-digit growth $272M to $278M, or -2% to flat at constant at constant currency currency Contribution • Resilient business m
Slide 15: Q2 2025 Outlook Total Expenses Bridge
Q2 2025 Outlook Total Expenses Bridge Quarter-over-quarter bridge based on midpoint of Q2 2025 guidance ($M) $8 $212 $8 $8 $13 $3 $172 Q1'25 Expenses Q1 Lower Bad Marketing & Employee Costs 1 Planned FX Headwinds Q2'25 Expenses Debt Benefit One-Off Growth Investments Internal Event 15 1. Annual empl
Slide 16: Why Invest in CRTO?
Why Invest in CRTO? 1 The leading independent technology platform addressing the largest secular growth trend in advertising, with global Retail Media spend growing at a 20% CAGR (’24-’27) to $50 billion by 2027 2 Sustainable competitive advantage from global scale and integrated full-funnel solutio
Slide 17: Appendix
Appendix 17
Slide 18: Segment Reporting - Definitions
Segment Reporting - Definitions RETAIL MEDIA PERFORMANCE MEDIA This segment encompasses revenue generated from This segment encompasses our targeting capabilities and brands, agencies and retailers for the purchase and sale of supply and AdTech services. retail media digital advertising inventory an
Slide 19: Criteo by the Numbers
Criteo by the Numbers $4.3 billion ~17,000 ~70% ~75% annual media spend1 clients of top-30 U.S. & ~50% of top 100 ComScore of top-30 EU retailers2 publishers in largest markets ~$1+ trillion ~720 million ~70% ~$31 billion ecommerce sales of web DAUs addressable Daily Active Users (DAUs) through dire
Slide 20: Industry Recognitions
Industry Recognitions Criteo was named one of the 9 Notable Large Size Criteo secured the Leader position in the “IDC Vendors in The Creative Advertising Technologies MarketScape: Worldwide Retail Media Network Criteo was named one of the 10 Criteo recognized as a Representative Landscape Report, Q2
Slide 21: Retail Media Footprint in the Americas
Retail Media Footprint in the Americas WE ARE THE RETAIL MEDIA PARTNER OF CHOICE ~70% 2 years Top 30 U.S. Retailers1 Average contract duration2 Note: We partner with many of our retailer clients in a white label capacity 21 1. Retailers in our largest markets that have a monetization program, exclud
Slide 22: Retail Media Footprint in EMEA
Retail Media Footprint in EMEA WE ARE THE RETAIL MEDIA PARTNER OF CHOICE ~50% 1.7 years Top 30 EMEA Retailers1 Average contract duration2 Note: We partner with many of our retailer clients in a white label capacity 22 1. Retailers in our largest markets that have a monetization program, excluding Am
Slide 23: Retail Media Footprint in APAC
Retail Media Footprint in APAC WE ARE QUICKLY GROWING OUR FOOTPRINT 23 Note: We partner with many of our retailer clients in a white label capacity
Slide 24: Contribution ex-TAC by Segment
Contribution ex-TAC by Segment Contribution ex-TAC YoY1 Q1’25 Q4’24 Q3’24 Q2’24 Q1’24 Q4’23 Q3’23 Q2’23 Q1’23 in $m RETAIL MEDIA +18% 58.8 90.2 59.6 53.9 50.2 74.2 48.4 43.5 37.4 PERFORMANCE MEDIA +4% 205.6 244.2 206.5 213.2 203.7 242.2 197.0 196.7 183.3 TOTAL +7% 264.4 334.4 266.1 267.1 253.9 316.4
Slide 25: Contribution ex-TAC Reconciliation
Contribution ex-TAC Reconciliation $ in millions Q1’25 Q4’24 Q3’24 Q2’24 Q1’24 $ in millions 2024 2023 Gross Profit 237.0 301.0 231.9 232.8 217.2 Gross Profit 983.0 863.0 Other Cost Other Cost of 27.4 33.4 34.2 34.2 36.7 138.5 159.6 of Revenue Revenue Contribution Contribution 264.4 334.4 266.1 267.
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Q1’25 Q4’24 Q3’24 Q2’24 Q1’24 2024 2023 Net income (loss) 40.0 71.9 6.1 28.1 8.6 114.7 54.6 Adjustments: Financial & other income / (expense) (1.9) (2.2) - 0.3 (1.2) (3.1) 2.8 Provision (benefit) for income taxes 10.5 24.8 3.5 8.6 3.0 39.8 20.1 Equity awa
Slide 27: Adjusted Net Income and Diluted EPS Reconciliation
Adjusted Net Income and Diluted EPS Reconciliation $ in millions Q1’25 Q4’24 Q3’24 Q2’24 Q1’24 2024 2023 Net income (loss) 40.0 71.9 6.1 28.1 8.6 114.7 54.6 Adjustments: Equity awards compensation expense 15.9 21.7 34.9 21.9 27.3 105.7 99.2 Amortization of acquisition-related intangible assets 9.0 8
Slide 28: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions) Q1’25 Q1’24 2024 2023 CASH FROM (USED FOR) OPERATING ACTIVITIES 62.3 14.0 258.2 224.2 Acquisition of intangible assets, property and equipment (17.1) (13.3) (78.1) (116.1) Disposal of intangibles assets, property 0.0 0.1 1.5 (1.8) and equipment FREE CASH
Slide 29: Foreign Exchange Impact
Foreign Exchange Impact Q1 2025 Actual USD million @ Q4 2023 FX IF es Actual impact Contribution ex-TAC $ 271 (6) RY 264 Q2 2025 Guidance* USD million @ QI 2024 Fx (ee Guidance impact Midpoint Contribution ex-TAC $ 264 TS 11 By 275 FY 2025 Guidance* USD million @ FY 2024 FX MIMI) Guidance** impact C
Slide 30: Foreign Exchange Sensitivity Analysis
Foreign Exchange Sensitivity Analysis • ~23% of our Contribution ex-TAC is exposed to EUR, ~9% is exposed to JPY, ~4% is exposed to GBP and ~3% is exposed to KRW • Estimated translation impact of a 1% appreciation of the USD: Estimated Impact on Estimated Impact on Contribution ex-TAC ($M) Expenses
Slide 31: Supplemental Information – Media Spend in Retail Media
Supplemental Information – Media Spend in Retail Media • Last quarter, we streamlined our media spend methodology for Retail Media. • In Retail Media, our updated media spend methodology focuses exclusively on the working media spend allocated to Retail Media campaigns, whereas the previous methodol