Criteo SA · NASDAQ:CRTO
Criteo SA — Q4 2024 Earnings Presentation
32 slides from Criteo SA's earnings presentation, Feb 5, 2025
Slide 1: Q4 & Full Year 2024 Earnings
CRITEO INVESTOR PRESENTATION Q4 & Full Year C) 2024 Earnings February 5, 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: Performance & 2025 Priorities
2024 4 Performance & pe Ne 2025 Priorities | \ Megan Clarken Chief Executive Officer
Slide 4: We Have Brought our Commerce Media Vision to Life
We Have Brought our Commerce Media Vision to Life now utilize our entire > Major enterprise clients Commerce Media Platform OMNI-COMMERCE Agency partners HEEDIA SOMONE increasingly leverage our > comprehensive Commerce Media Platform as an enterprise play 20 Years of Commerce-Focused PERFORMANCE MED
Slide 5: We Delivered Record Performance in 2024
We Delivered Record Performance in 2024 * Double-digit growth for the 4th consecutive year * $1.1B in Contribution ex-TAC, up 11% YoY + Retail Media up 25% YoY + Performance Media up 8% YoY, driven by strong momentum in Commerce Audiences + Achieved adj. EBITDA margin of 35%, up 500 bps YoY Commerce
Slide 6: Criteo Market
Criteo Market Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 • • • • •
Slide 7: We Benefit From a Unique Flywheel
MORE RETAILERS We Benefit From a Unique Flywheel Bringing > > 2 ¥ 3 2 Qa g s = Demand i} to + Supply BRANDS and
Slide 8: We Drive Performance Throughout the Entire Buyer Journey
We Drive Performance Throughout the Entire Buyer Journey Criteo Knows How People Like Seeareh Buy Activate full customer journey campaigns on open web and social inventory Build hyper-focused Al-powered commerce audiences Use ad formats built for every screen, every moment, every shopper Measure and
Slide 9: We Integrate Cutting-Edge AI into our Commerce Media Platform
We Integrate Cutting-Edge Al into our Commerce Media Platform + Criteo’s best-in-class Al technology is * Harness Al to better reach audiences purpose-built for commerce predictions throughout their buyer journey + Al has been part of Criteo's DNA since day one on the open internet to feed our comme
Slide 10: Financial & Operational Update
Financial & Operational Update Sarah Glickman Chief Financial Officer
Slide 11: 2024 Financial Highlights
2024 Financial Highlights % YoY vs. Guidance Media Spend! $4.3B +5%2 +0.4%? +110% Revenue $1,933M Contribution ex-TAC $1,121M Adj. EBITDA $390M Net Income $115M Diluted EPS $1.90 +116% Non-GAAP Diluted EPS $4.57 +44% Free Cash Flow $182M +65% 1. Media spend is defined as working media spend allocate
Slide 12: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights % YoY vs. Guidance Media Spend! Contribution ex-TAC Net Income Diluted EPS Non-GAAP Diluted EPS Free Cash Flow 1. Media spend is defined as working media spend allocated to Retail Media campaigns and media spend activated on behalf of Performance Media clients; its an op
Slide 13: We Saw Momentum Across our Segments in Q4
13 We Saw Momentum Across our Segments in Q4 * Client retention close to 90% + 40% of our live clients use more than one Key Criteo solution Drivers + A third of media spend activated through agencies Retail Media Performance Media + $532M in media spend!, up +26%? YeY, growing + $771Min media spend
Slide 14: Robust Balance Sheet, Cash and Liquidity Position
4 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 - ~$782M! ($M) equivalents ($M) Total assets ($M) total financial liquidity and no long-term debt 182 359 333 Rep
Slide 15: 2025 Outlook
18 2025 Outlook BACKDROP Continued business momentum; cost discipline and high-ROI growth investments FY 2025 Q1 2025 Targeting mid-single-digit growth $256M to $260M, or #3% to +5% YoY at constant currency growth at constant currency + Continued traction of our Commerce Media Platform + At the midp
Slide 16: Why Invest in CRTO Today?
Why Invest in CRTO Today? Huge Market Opportunity Leadership in fast-growing Retail Media market with $50B SAM by 2027 Strong Financials Sustainable growth and high margin 16 Differentiated Al Technology 20+ years of Al powering unified tech platform for Ist-party data-based marketing and media mone
Slide 17: Appendix
Xe y Appendix CRITEO
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: Segment descriptions: Retail Media and Performance Media
This segment encompasses revenue generated This segment encompasses our targeting from brands, agencies and retailers for the capabilities and supply and AdTech services. It purchase and sale of retail media digital combines our former Marketing Solutions and advertising inventory and audiences, and
Slide 20: Criteo by the Numbers
20 Criteo by the Numbers $4.3 billion annual media spend! ~$1+ trillion ecommerce sales across customer base 20+ years of expertise in commerce-focused Al ~17,000 clients ~720 million Daily Active Users (DAUs) ~1,100 R&D & Product employees ~65% of top-30 US. & -50% of top-30 EU retailers? ~70% of w
Slide 21: Industry Recognitions
Industry Recognitions Criteo was named one of the 10 Notable Large Size Vendors in the Frost & Sullivan Frost Radar for Supply Side Platforms 2024 Bloomberg end uaty Criteo became a member of 2023 Bloomberg Gender-Equality Index nko) COMPANIES Criteo ranked #4 on 2022 Linkedin Top Companies list for
Slide 22: Retail Media Footprint in the Americas
Retail Media Footprint in the Americas We are the Retail Media Partner of Choice ~65% 2 years Top 30 US. Retailers! Average contract duration? slo slp © Walmart>\< Wk@eena ~=UberEats bamingdoes Walmart >;< Canada EEE NI lf Mico Centar TARGET kmacys A\albertsons ~YCVS metro WE mercatus’ NORDSTROM ~=—
Slide 23: 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 Retailers! Average contract duration? Q celiveroo seurrineesee2 CDUGLAS fonQ... Dia ASOS Fy UberEats blokker. @ very ASDA finac Etecierc@ vintersrort flaconi TERE) BEC maliys Media Merkt BCCH) srortcH
Slide 24: Retail Media Footprint in APAC
24 Retail Media Footprint in APAC We Are Quickly Growing our Footprint Ginstamart QSWIGGY — Flipkart Uber Eats QW PAY Y-F7YF Matcash % 1Style.id Joty . on) CENTRAL # FA Tops Blooms ~- market THE CHEMIST ) ASKUL 69S Note: We partner with many of our retailer clients in @ white label capacity GPT The
Slide 25: Contribution ex-TAC by Segment
all) Contribution ex-TAC by Segment Contribution ex-TAC i in $m ' ' | YoY' @Q4'24! Q3'24 Q2'24 QI’24 | Q4’23 Q3'23 Q2'23. QI‘'23 | Q4'22) Q3'22.) Q2'22_— QI'22 1 1 ' t 1 1 ' 1 Retail Media H +23% 90.2 ! 59.6 53.9 50.2 742 48.4 43.5 374 57.1 36.9 36.6 30.8 1 ' 1 1 ' ' | ! Performance Media | 43% 244.
Slide 26: Contribution ex-TAC Reconciliation
26 all! Contribution ex-TAC Reconciliation $ in millions Q4'24 Q3'24 Q2'24 ar24 | @4'23 @323 @2'23 QT23 $ in millions 2024 2023 Gross Profit | 3010 2319 2328 217.2 | 2766 205.1 199.8 181.5 Gross Profit 983.0 863.0 Other Cost of Other Cost of Revenue 334 342 B42 367 | 398 = =—403 40K 391 Revenue 138.
Slide 27: Adjusted EBITDA Reconciliation
27 all Adjusted EBITDA Reconciliation $in millions Q4’24 Q3'24 Q2'24 QV24 Q4’23 Q3'23 Q2'23 QVv23 2024 2023 Net income (loss) ng 61 281 86 621 66 (2.0) (12.1) 114.7 56 Adjustments: Financial & other income / (expense) (2.2) ° 03 (1.2) 45 3.0 2.0 (6.6) 1) 28 Provision (benefit) for income taxes 248 3
Slide 28: Adjusted Net Income and Diluted EPS
Adjusted Net Income and Diluted EPS all) Reconciliation $in millions 28 Q4’24 Q3'24 Q2'24 Q’24 Q4’23 Q3'23 Q2'23 QvVv23 2024 2023 Net income (loss) 71.9 61 28.1 86 621 66 (2.0) (12.1) 14.7 54.6 Adjustments: Equity awards compensation expense 217 349 29 273 21.0 243 278 261 105.7 99.2 Amortization of
Slide 29: Free Cash Flow Reconciliation
29 all! Free Cash Flow Reconciliation ($ in millions) Q4’'24 Q4’23 2024 2023 CASH FROM (USED FOR) OPERATING ACTIVITIES 169.5 1613 258.2 224.2 Acquisition of intangible assets, property, plant and (24.2) (209) (781) (6.1) equipment Disposal of intangibles assets, property and equipment 08 (1) 15 (1.8
Slide 30: Contribution ex-TAC guidance and FX impact
Q4 2024 Actual FX USD million @ Q4 2023 FX Actual impact Contribution ex-TAC $ 340 $ (5) $ 334 Q1 2025 Guidance* FX Guidance USD million @ Q1 2024 FX impact Midpoint Contribution ex-TAC $ 264 $ (6) $ 258 FY 2025 Guidance* FX USD million @ FY 2024 FX Guidance** impact Contribution ex-TAC $ 1,178 $ (1
Slide 31: Expected Translation Impact
• ~22% 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 on our Contribution ex-TAC: Expected Translation Impact EUR/USD Guidance rate* Variance Q1 - $M FY 2025 - $M 0.96
Slide 32: We streamlined our media spend methodology for Retail Media
• 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 methodology included certain additional fees. This revision has no impact on