Criteo SA · NASDAQ:CRTO
Criteo SA — Q3 2024 Earnings Presentation
27 slides from Criteo SA's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Earnings
INVESTOR PRESENTATION Q3 2024 Earnings October 30, 2024
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: Progress on 2024 Priorities
Progress on 2024 Priorities Megan Clarken Chief Executive Officer
Slide 4: Continued Business Momentum in Q3
Continued Business Retail Media + Performance Media = Commerce Media Momentum in Q3 We have built the only unified, AI- driven platform that directly • Record Q3 Contribution ex-TAC connects advertisers with retailers • Retail Media up 23% and publishers to drive commerce • Performance Media up 5%,
Slide 5: We Are Boosting our Leadership in Retail Media
We Are Boosting our Leadership in Retail Media Leading Footprint Industry Recognition ~225 Retailers, incl. 65% of Top 30 U.S. & 50% of Top 30 EMEA Retailers 3,100+ Global brands Named as a Leader by IDC for worldwide Retail Media ~$386M in Activated Media Spend, up 29% YoY Network Service Providers
Slide 6: Commerce Audiences are the Most Valuable Audiences to Brands
Commerce Audiences are the Most Valuable Audiences to Brands Activate full customer journey campaigns Criteo Knows Build hyper-focused AI- How People powered commerce AI-Powered Automated Campaigns to Maximize ROAS audiences Like Use ad formats built for every Customer acquisition and retention Sear
Slide 7: We Integrate Cutting-Edge AI into our Commerce Media Platform
We Integrate Cutting-Edge AI 30 into our Commerce Media 140+ Patents issued1 Platform R&D & Product employees focused on AI 19+ years of expertise in commerce-focused AI • Criteo’s best-in-class AI technology is purpose- • Harness AI to better reach audiences in a built for commerce predictions cook
Slide 8: Financial & Operational Update
Financial & Operational Update Sarah Glickman Chief Financial Officer
Slide 9: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights vs. % YoY Q2 Guidance Activated Media Spend1 $1,050M -2%2 Revenue $459M -2%2 Contribution ex-TAC $266M +9%2 In-Line Adj. EBITDA $82M +20% Above Net Income $6M -7% Diluted EPS $0.11 -8% Non-GAAP Diluted EPS $0.96 +35% Free Cash Flow $39M NM3 1. Activated media spend is de
Slide 10: We Saw Momentum Across our Segments in Q3
We Saw Momentum Across our Segments in Q3 • Client retention close to 90% • ~40% of our live clients use more than one Criteo Key solution Drivers • ~30% of media spend activated through agencies Retail Media Performance Media • $386M in activated media spend1, up +29%2, growing faster • $664M in ac
Slide 11: 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 equivalents Balance sheet – ~$711M1 ($M) ($M) Total assets ($M) total financial liquidity and no long-term debt YTD FCF of $35M,
Slide 12: 2024 Outlook
2024 Outlook BACKDROP Continued business momentum; macro uncertainties; cost discipline and growth investments FY 2024 Q4 2024 $327M to $333M, or +3% to +5% YoY growth +10% to +11% growth at constant currency at constant currency • Continued traction of our Commerce Media Platform • High seasonality
Slide 13: Why Invest in CRTO Today?
Why Invest in CRTO Today? Huge Market Unique Differentiated Proven Resilience Opportunity Commerce Data Technology to Signal Loss Large scale and commerce data 19+ years of AI powering unified Leadership in fast- Innovation, advanced AI with access to ~700M Daily tech platform for 1st-party data- gr
Slide 14: Appendix
Appendix
Slide 15: The only unified platform that directly connects advertisers with retailers and publishers
The only unified platform that directly connects advertisers with retailers and publishers on the open internet Performance Media Retail Media We enable media owners (incl. Supply Side & SSP retailers) to earn more revenue by enriching and activating their first-party data and Commerce Supply Side P
Slide 16: Segment Reporting - Definitions
Segment Reporting - Definitions Retail Media 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 M
Slide 17: Criteo by the Numbers
Criteo by the Numbers $4.3 billion ~17,000 ~65% ~75% annual media spend clients of top-30 U.S. & ~50% of top- of top 100 ComScore activated1 30 EU retailers2 publishers in largest markets ~$1+ trillion ~700 million 65%+ ~$30 billion ecommerce sales Daily Active Users (DAUs) of web DAUs addressable o
Slide 18: Industry Recognitions
Industry Recognitions Criteo recognized as a Representative Criteo was named one of the 9 Notable Large Criteo secured the Leader position in the “IDC Vendor in the July 2024 Gartner* Size Vendors in The Creative Advertising MarketScape: Worldwide Retail Media Network Service Providers 2024” Criteo
Slide 19: 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 U.S. Retailers1 Average contract duration2 Note: We partner with many of our retailer clients in a white label capacity 1. Retailers in our largest markets that have a monetization program, excluding
Slide 20: 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 1. Retailers in our largest markets that have a monetization program, excluding Amazo
Slide 21: Retail Media Footprint in APAC
Retail Media Footprint in APAC We Are Quickly Growing our Footprint Note: We partner with many of our retailer clients in a white label capacity 21
Slide 22: Contribution ex-TAC by Segment
Contribution ex-TAC by Segment Contribution ex-TAC in $m YoY1 Q3’24 Q2’24 Q1’24 Q4’23 Q3’23 Q2’23 Q1’23 Q4’22 Q3’22 Q2’22 Q1’22 Retail Media +23% 59.6 53.9 50.2 74.2 48.4 43.5 37.4 57.1 36.9 36.6 30.8 Performance Media +5% 206.5 213.2 203.7 242.2 197.0 196.7 183.3 226.3 176.5 178.0 186.1 TOTAL +9% 2
Slide 23: Contribution ex-TAC Reconciliation
Contribution ex-TAC Reconciliation $ in millions Q3’24 Q2’24 Q1’24 Q4’23 Q3’23 Q2’23 Q1’23 $ in millions 2023 2022 Gross Profit 231.9 232.8 217.2 276.6 205.1 199.8 181.5 Gross Profit 863.0 795.2 Other Cost of Other Cost of 34.2 34.2 36.7 39.8 40.3 40.4 39.1 159.6 133.0 Revenue Revenue Contribution e
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Q3’24 Q2’24 Q1’24 Q4’23 Q3’23 Q2’23 Q1’23 2023 2022 Net income (loss) 6.1 28.1 8.6 62.1 6.6 (2.0) (12.1) 54.6 10.9 Adjustments: Financial & other income / (expense) - 0.3 (1.2) 4.5 3.0 2.0 (6.6) 2.8 (17.1) Provision (benefit) for income taxes 3.5 8.6 3.0
Slide 25: Adjusted Net Income and Diluted Earnings per Share Reconciliation
Adjusted Net Income and Diluted Earnings per Share Reconciliation $ in millions Q3’24 Q2’24 Q1’24 Q4’23 Q3’23 Q2’23 Q1’23 2023 2022 Net income (loss) 6.1 28.1 8.6 62.1 6.6 (2.0) (12.1) 54.6 10.9 Adjustments: Equity awards compensation expense 34.9 21.9 27.3 21.0 24.3 27.8 26.1 99.2 65.0 Amortization
Slide 26: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions) Q3’24 Q3’23 2023 2022 CASH FROM OPERATING ACTIVITIES 57.5 19.6 224.2 256.0 Acquisition of intangible assets, property, plant and equipment (19.4) (16.3) (92.5) (84.8) Change in accounts payable related to intangible assets, 0.5 0.5 (21.8) 29.0 property,
Slide 27: Foreign Exchange Impact
Foreign Exchange Impact Q3 2024 Actual FX USD million @ Q2 2023 FX Actual impact Contribution ex-TAC $ 267 $ (1) $ 266 Q4 2024 Guidance* FX Guidance USD million @ Q3 2023 FX impact M idpoint Contribution ex-TAC $ 331 $ (1) $ 330 FY 2024 Guidance* FX USD million @ FY 2023 FX Guidance** impact Contrib