Criteo SA · NASDAQ:CRTO
Criteo SA — Q4 2023 Earnings Presentation
28 slides from Criteo SA's earnings presentation, Feb 7, 2024
Slide 1: Q4 & Full Year 2023 Earnings
CRITEO INVESTOR PRESENTATION Q4 & Full Year 2023 Earnings yD,
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: 2023 Performance & 2024 Priorities
2023 Performance & 2024 Priorities Megan Clarken Chief Executive Officer CRITEO
Slide 4: We Delivered on our Priorities in 2023
We Delivered on our Priorities in 2023 We achieved strong performance in 2023, setting the stage for continued growth in 2024 + Double-digit growth for the 2"¢ consecutive year * Crossed $1B in Contribution ex-TAC for the Is time + Retail Media above $200M+ in Contribution ex-TAC * Accelerated momen
Slide 5: 2023 was an Important Year in our Transformation to a Commerce Media Powerhouse
2023 was an Important Year in our Transformation to a Commerce Media Powerhouse Launched Commerce Max DSP into general availability & Next-Gen Retailer Launched Commerce Grid SSP CRITEO » COMMERCE-GRID Acquisition of Brandcrush Criteo Al Lab INSIDER 5th Anniversary + Accelerates offline Retail Crite
Slide 6: We See Further Opportunities for Criteo in 2024
We See Further Opportunities for Criteo in 2024 We have a comprehensive, scalable Commerce Media Platform and a robust addressability strategy Expand retailer partnerships with holistic suite of monetization solutions Continue to gain market share 1) Scale retailers * Make Retail Media easy to buy f
Slide 7: We Integrate Cutting-Edge AI into our Commerce Media Platform
We Integrate Cutting-Edge Al into our Commerce 140+ Media Platform ee focused on Al - focused * Criteo’s best-in-class Al technology is + Integration of Generative Al into our purpose-built for commerce predictions platform with a focus on improving performance, enhancing the user + Alhas been part
Slide 8: We Have a Multi-Pronged Approach to Addressability
We Have a Multi-Pronged Approach to Addressability Our strategy consists of three pillars that combine precision, performance, and scale - all underpinned by best-in-class Al and contextual intelligence CRITEO // ADDRESSABILITY APPROACH First-Party Data Google Privacy Sandbox Closed Environments Has
Slide 9: Financial & Operational Update
Financial & Operational Update Sarah Glickman Chief Financial Officer CRITEO
Slide 10: 2023 Financial Highlights
10 2023 Financial Highlights % YoY VS. Guidance Activated Media Spend! $4.1B Revenue $1, 949M Contribution ex-TAC $1,023M Adi EBITDA $302M Net Income | $55mM | +402% Non-GAAP Diluted EPS $3.18 Free Cash Flow $110M? Activated media spend is defined as the sum of our Marketing Solutions revenue, the m
Slide 11: Q4 2023 Financial Highlights
u Q4 2023 Financial Highlights 1 2 % YoY Q4 Guidance Activated Media Spend! Contribution ex-TAC Net Income | $6am | Non-GAAP Diluted EPS Free Cash Flow Activated media spend is defined as the sum of our Marketing Solutions revenue, the media spend activated on behalf of our Retal Media clients and t
Slide 12: We Achieved Record Performance in Q4
56% of | +29% YoY CxT 2 We Achieved Record Performance in Q4 Accelerated business diversification, led by the growth of Retail Media and Commerce Audiences Q4 2023 Contribution ex-TAC Mix & Growth! Iponweb +2% YoY Retail Marketing Media Solutions +6% YoY Commerce Retargeting Audiences -9% YoY +60% Y
Slide 13: We Saw Momentum Across All Parts of our Business in Q4
We Saw Momentum Across All Parts of our Business in Q4 Marketing Solutions Contribution ex-TAC of $208M, up +6%! + Second consecutive quarter of growth * Traction of full-funnel activation: 70% of media spend from clients using Commerce Audiences targeting and retargeting * Commerce Audiences target
Slide 14: Strong Balance Sheet, Cash and Liquidity Position
Strong Balance Sheet, Cash and Liquidity Position Financial flexibility to support organic growth investments, M&A and share repurchase program Free cash flow! Cash & cash ($M) equivalents ($M) 373 200 359 2022 2023 Dec 2022 Dec 2023 CNIL Payment Marketable securities la 1. Includes restructuring an
Slide 15: We Expect Continued Growth in 2024
15 We Expect Continued Growth in 2024 BACKDROP Continued business momentum; focus on productivity and cost efficiencies; assuming third- party cookie deprecation on Chrome in H2 2024 FY 2024 Q1 2024 Targeting mid-singl growth $243M to $247M, or +10% to +12% YoY at constant currency growth at constan
Slide 16: Why Invest in CRTO Today?
16 Why Invest in CRTO Today? Huge Market Opportunity Leadership in fast- growing Commerce and Retail Media market with $110B SAM by 2025 Strong Financials Sustainable growth, rebalanced revenue and high margin Differentiated Technology 18+ years of Al powering unified tech platform for Ist- party da
Slide 17: Appendix
y y Appendix
Slide 18: Commerce Media Platform
COMMERCE MEDIA PLATFORM We enable media owners (incl. retailers) to earn more revenue by enriching and activating their first-party data and inventory to advertisers We expect to maximize returns for advertisers by delivering impactful advertising to the right consumer across the entire shopping jou
Slide 19: Criteo by the Numbers
Criteo by the Numbers $4.1 billion annual media spend activated! ~$1+ trillion ecommerce sales across customer base 18+ years of expertise in commerce-focused Al 1 ~18, 000 clients ~700 million Daily Active Users (DAUs) ~1,000 R&D & Product employees ~60% of top-25 U.S. & -50% of top-20 EU retailers
Slide 20: Industry Recognitions
20 Industry Recognitions Ad Leading Age Women Megan Clarken, Criteo CEO 2022 Winner of AdAge’s Leading Women in the advertising industry _ 2022 Winner of ADWEEK = Adweek’s Best Cue Retargeting Solution 2021 Winner of the International Innovation ‘Awards (IIA) FORRESTER Criteo was named as one of the
Slide 21: Retail Media Footprint in the Americas
Retail Media Footprint in the Americas We are the Retail Media Partner of Choice ~60% Top 25 U.S. Retailers! © Walmart 3S TARGET Canada *KMACYs Ad\aAlbertsons vcvs ous a giant CULTA, eagle Rg f™ Staples Mex Note: We partner with many of our retailer clients in a white label capacity ram as of G4 202
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 20 EMEA Retailers! Average contract duration? g deliveroo LaRedoute very ASDA vintersport flaconi fey i 1 S/10)S) (5) SPORTCHEK voter SEPHORA frac pokcom® fonQ.. @ Media Morkt BCC) _Lookrantastic ee SNTURN Qc
Slide 23: Cross-selling opportunities
Cross-selling opportunities + Expansion with Brandcrush acquisition
Slide 24: Contribution ex-TAC by Solution
24 al. Contribution ex-TAC by Solution Contribution ex-TAC + Retail Media t ingm ' YoY! @4’23 | Q3'23. @223-— N23 | QH22 «@3'22 «222, QT'22 1 t i H . : H 1635 1676 ~=—«1582 «| (1926 © 1580779 ~—S«WBLI Marketing Solutions 1 16% 207.5 ' +1% 5% “10% 7% 41% 412% 12% ' 1 + f | 120.7 126.6 124.3 150.2 126
Slide 25: Contribution ex-TAC Reconciliation
25 alll Contribution ex-TAC Reconciliation $ in millions | Q4'23 @3'23 @223 123 | @422 @3'22 @222 ar22 $ in millions 2025 2022 Gross Profit | 2766 205.1 199.8 1615 | 2466 179.6 1850 1840 Gross Profit 863.0 7952 Otner Cost of) 398 403 40.4 391 | 368 338 «296 «329 Other Cost of 159.6 133.0 Contributio
Slide 26: 62.1 4.5 21.8 21.0 (0.1) 23.1 0.6 - 5.7 76.6 138.7
62.1 4.5 21.8 21.0 (0.1) 23.1 0.6 - 5.7 76.6 138.7
Slide 27: Free Cash Flow Reconciliation
27 alll Free Cash Flow Reconciliation ($ in millions) Q4’23 Q4’22 2023 2022 CASH FROM OPERATING ACTIVITIES 161.3 125.5 224.2 256.0 Acquisition of intangible assets, property, plant and (147) (35.8) (925) (84.8) equipment Cronge noccomipoyeneremresronimabe | gy | as | ay | 20 FREE CASH FLOW 141.6 110
Slide 28: Contribution ex-TAC FX and Guidance Reconciliation
Q4 2023 Actual FX USD million @ Q4 2022 FX Actual impact Contribution ex-TAC $ 312.2 $ 4.2 $ 316.4 Q1 2024 Guidance* FX Guidance USD million @ Q1 2023 FX impact M idpoint Contribution ex-TAC $ 246.1 $ (1.1) $ 245.0 FY 2024 Guidance* FX Guidance USD million @ FY 2023 FX impact M idpoint ** Contributi