Criteo SA · NASDAQ:CRTO
Criteo SA — Investor Day (November 2024)
76 slides from Criteo SA's investor day presentation, Nov 18, 2024
Slide 1: Investor Update
November 18, 2024 INVESTOR UPDATE CRITEO
Slide 2: Welcome & Agenda
Welcome & Agenda Melanie Dambre VP, Investor Relations 2
Slide 3: Speakers
Speakers Megan Clarken Brian Gleason Melanie Zimmermann CHIEF EXECUTIVE OFFICER CHIEF REVENUE OFFICER GM, GLOBAL RETAIL MEDIA AND PRESIDENT, RETAIL MEDIA Sherry Smith Todd Parsons Sarah Glickman EXECUTIVE MD, AMERICAS CHIEF PRODUCT OFFICER CHIEF FINANCIAL OFFICER
Slide 4: Safe Harbor Statement and Non-GAAP Measures
Safe Harbor Statement and Non-GAAP Measures 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 assumpti
Slide 5: Strategic Vision & Market Opportunity
Strategic Vision & Market Opportunity Megan Clarken Chief Executive Officer CRITEO 5
Slide 6: Key Highlights
STRATEGY Key Highlights + The future of Commerce is heading toward more digital, personalized, and integrated experiences, enhanced by highly targeted, data-driven advertising Retail Media is the largest secular growth trend in digital advertising Criteo entered the Retail Media space in 2016 and ha
Slide 7: We Are Pioneers of Commerce & Retail Media
STRATEGY We Are Pioneers of Commerce & Retail Media 3,500+ 100+ Employees Countries 17, 000+ 1,100 Cli R&D & Product lients Employees <I CRITEO $4. 3B OMNI-COMMERCE 19 saver LI MEDIA SOLUTIONS Years of Commerce- Focused Al $1 Trillion 5 Billion Digital Transactions Observed Ads Served a Day 700 Mill
Slide 8: Retail Media is the Largest Secular Growth Trend in Advertising
STRATEGY Retail Media is the Largest Secular Growth Trend in Advertising 2014 2015 Global Advertising Spend Mix by Channel (%) ™ Outdoor = Magazines Newspapers Audio @ Retail @ Social = Search @ Other 2016 2017 2018» 2019-2020 2021-2022: 2023 «2024 +2025 2026 +2027 +2028 © 2029 Source: Activate, eMa
Slide 9: Commerce is a Powerful Medium in the Digital Landscape
STRATEGY Commerce is a Powerful Medium in the Digital Landscape COMMERCE MINDSET MEDIA MINDSET Reach relevant audiences
Slide 10: Retailers Have an Opportunity to Gain their Fair Share
STRATEGY Retailers Have an Opportunity to Gain their Fair Share Retail Media investments are more concentrated than e-commerce, presenting an opportunity for brands to diversify their budgets across other Retail Media Networks Retail Media Retailer Ad Revenues e-Commerce GMV t 31% = Amazon ® Other R
Slide 11: We Bring a Superior Suite of Solutions to the Market
STRATEGY We Bring a Superior Suite of Solutions to the Market SUPPLY DEMAND Based, Cross-Retailer Planning, White-Label Storefront Activation, and Optimization Full Funnel Unification (Onsite & Offsite) Access to Incremental Budgets Full Funnel Media Formats Al-Fueled Precision Media Excellence Stan
Slide 12: We Unlock a Global Retail Media Ecosystem
STRATEGY We Unlock a Global Retail Media Ecosystem 12 = Market Share 65% 50% of the Top 30 of the top 30 US Retailers EU Retailers 200+ 3,100+ Agency Partners, Brand including the Big 5 Advertisers 13 API Partners ~225 Global Retailers 40 Countries Live 700M 270M Unique Shoppers App Shoppers Reached
Slide 13: We Benefit From a Unique Flywheel
STRATEGY We Benefit From a Unique Flywheel MORE RETAILERS Bringing Demand | to + Supply and MORE 1 BRANDS CONSUMERS 13
Slide 14: Why Invest In Criteo?
STRATEGY Why Invest In Criteo? The leading independent technology platform addressing the largest secular growth trend in advertising, with global spend growing at a 20% CAGR ('24-’27) to $50 billion by 2027 2 Sustainable competitive advantage from global scale and integrated full-funnel solutions 3
Slide 15: Criteo is a Retail Media Powerhouse
Criteo isa Retail Media Powerhouse
Slide 16: Building Success with Agencies & Brands on the Demand Side
Building Success with Agencies & Brands on the Demand Side Brian Gleason Chief Revenue Officer and President, Retail Media CRITEO 16
Slide 17: Agencies & Brands Key Highlights
AGENCIES & BRANDS + Advertisers select Criteo because we drive superior performance with unique access to high intent shoppers at scale through a scaled network of retailers across various categories and markets Key + The contribution of agencies to our growth has g ° accelerated as we make Retail M
Slide 18: We Are Rapidly Unlocking Demand
18 AGENCIES & BRANDS. We Are Rapidly Unlocking Demand Retail Media Activated Media Spend (LTM) $1.5B Q3'22 Q4'22 Ql'23 Q2'23 Q3'23 Q4'23 Ql24 Q2'24 Q3'24 32% 2022-2024 CAGR Outpacing market growth Driven by strong growth in: Y Beauty Y Consumer Packaged Goods Y Consumer Electronics Two-thirds of Com
Slide 19: More Budgets Are Shifting to Retail Media
AGENCIES & BRANDS More Budgets Are Shifting to Retail Media SO esc N A SESS growing advertising type. 58% of our CPG clients increased their Retail Media spend. It is blowing away pretty much all other forms Retail Media budgets come from multiple sources of media. - U.S. GROCERY RETAILER 6& | would
Slide 20: Why Agencies and Brands Spend More in Retail Media
AGENCIES & BRANDS Why Agencies and Brands Spend More in Retail Media 8 10 brands & agencies say that retail media spend is more aun) effective in terms of sales impact vs other channels! Ability to target high-intent customers bigness Ability to leverage 1* party data without the need for Closed-loo
Slide 21: Why Agencies and Brands Choose Criteo
AGENCIES & BRANDS Why Agencies and Brands Choose Criteo Our Commerce Max DSP helps them achieve the outcomes that matter to them in a single, unified platform ® Unified platform for onsite and off-site to avoid platform fatigue & Engagement across multiple touchpoints to reach consumers wherever the
Slide 22: Why Agencies and Brands Choose Criteo (Cont.)
22 AGENCIES & BRANDS Why Agencies and Brands Choose Criteo (Cont.) Our differentiation versus demand side competitors Beat fragmentation Activate at scale Drive outcomes d Full Funnel riven capabilities (Onsite + Offsite) Competitor A Competitor B ..doesn’t have agency neutrality ..doesn’t have onsi
Slide 23: We Support Multiple Retail Media Activation Paths
AGENCIES & BRANDS We Support Multiple Retail Media Activation Paths... LOREAL P&G G {Levis COMMERCE dentsu MAX OmnicomGroup = Microsoft 4 Albertsons skai 3P MEDIA COMMERCE BEST cacvur \ PLATFORMS YIELD , ACVU ticketmaster Uber Eats 23
Slide 24: Maximize Growth by Activating Trade and National Media Budgets
AGENCIES & BRANDS and Maximize Growth by Activating Trade and National Media Budgets Drive sale: dir TRADE mo NATIONAL MEDIA BUDGETS We enable the activation of national media budgets with our Commerce Max DSP and API partners. MARKETING BUDGETS CONTROL OVER TRADE RELATIONSHIPS We enable the activat
Slide 25: We Have Multiple Growth Drivers on the Demand Side
AGENCIES & BRANDS We Have Multiple Growth Drivers on the Demand Side 25 More Capabilities for Brands & Agencies Expansion Into New Formats & Channels Expected New Demand Sources SKU-Based Buying Multi-Retailer Forecasting & Media Planning Commerce Insights Display Video Offsite & Audience Monetizati
Slide 26: We Make Retail Media Easy to Buy for Brands & Agencies
AGENCIES & BRANDS We Make Retail Media Easy to Buy for Brands & Agencies Commerce Insights PLAN ME. RE 26 CRITEO =A SKU-Based Buying Approach = Care Brand — Ointment Multi-Retailer Forecasting/Planning & BW. Olanmingdales * Macys Forbes illfaian [ay WarnerMedia Che Washington Post BuzzFeed £SPrii He
Slide 27: Our Collaboration with Microsoft Advertising
AGENCIES & BRANDS Our Collaboration with Microsoft $13B Advertising is Expected to Drive More Microsoft search Demand and news advertising revenue in FY2024! bb Bing Easier for Microsoft advertisers to optimize media budgets fluidly across onsite (retailer search) and offsite (Bing search) BE Micros
Slide 28: We Unify the Buyer Journey Across Onsite & Offsite
AGENCIES & BRANDS We Unify the Buyer Journey Across Onsite & Offsite 5O%+ of brands/agencies invest in Retail Media onsite and offsite! A relevant ad is shown to an extended audience of Shipt 5 cosrco users offsite (including CTV) Users are placed into relevant first-party y CRITEO ay Dillard’ *zmMa
Slide 29: Criteo Helps Brands and Agencies Scale Retail Media
_ Crifeo Helos Brands and Agencies Scale Retail Media
Slide 30: Driving Growth with Retailers on the Supply Side
=e Driving Growth with Retailers on the Supply Side Melanie Zimmermann GM, Global Retail Media
Slide 31: Retailers Key Highlights
RETAILERS Key Highlights Criteo has been experiencing sustained growth with both existing and new retailers in our vast global network Retailers’ expectations are heightened as Retail Media is becoming an increasingly important contributor to their P&L Criteo is uniquely positioned as the preferred
Slide 32: Many Players Have Launched Media Networks
RETAILERS Many Players Have Launched Media Networks Criteo entered the Retail Media space ‘ShiptS vinart ® vu | «OO. euscies Walmart: bia amazon ad: zalando Grab Flipkart GB flaconi fora @ WQ) detiveroo Staples MesciNart — Sreshatirect COUGLAS Uber norpstrom = ULTA BE Wichaeks Lowe's =[ssesons 7D do
Slide 33: Retail Media is Becoming an Increasingly Important Contributor to a Retailer's P&L
RETAILERS Retail Media is Becoming an Increasingly Important Contributor to a Retailer’s P&L Advertising as Share of Online GMV' in the U.S. and Europe R xR : = ' NN =| US. @ Europe 1. Gross Merchandise Value; Chart representing individual retailers across the U.S. and Europe 33 Source: GroupM, IAB,
Slide 34: Retailers Trust Criteo for our Leading Solutions
RETAILERS Retailers Trust Criteo for our Leading Solutions Proven Retail Media leadership (revenue, # of customers) Best-in-class retailer platform (reliability, scalability, advanced features) Trusted media excellence (MRC-accreditation) Al-driven scale & precision Consolidated platform for both on
Slide 35: Why Retailers Need Criteo as their Enabler
RETAILERS Why Retailers Need Criteo as their Enabler 35 ©) ©) oh We provide best-in-class Al-driven performance to optimize ad revenue & organic merchandise sales We provide services and Business Intelligence tools for retailers to plan and continuously improve their ad business
Slide 36: We Provide Flexibility and Connections Into Outsized Demand
RETAILERS We Provide Flexibility and Connections Into Outsized Demand OUTSIZED DEMAND o Easy Access to Criteo-Sold Demand + Flexibility to Execute Retailer- Sold Campaigns 36 FLEXIBILITY Criteo Demand Generation 3100+ brands and 200+ agency partners Managed Services White glove service to trade-orie
Slide 37: We Offer Professional Services & Business Intelligence Tools
RETAILERS We Offer Professional Services & Business Intelligence Tools For Retailers to Scale their Business a Professional Services Business Intelligence Tools ¥ Managed Services vy Understand Your Business Y Self-service Enablement ¥ Identify Opportunities ¥ Sales Enablement ¥ Inform Sales Efforts
Slide 38: Not Every Retail Media Network is the Same
RETAILERS Not Every Retail Media Network (RMN) is the Same and We Address Their Distinct Needs 38 Challenger/Regional Retailers + RMN Operating age < 3 years + RMN Revenue < 2% of e-commerce GMV + Place greater value on the simplicity of a unified, out-of-box solution + Need a partner to drive deman
Slide 39: We Offer a Unified Platform For Challenger and Regional Retailers
We Offer a Unified Platform For Challenger RETAILERS and Regional Retailers 39 Retailer Needs They lack in-house resources and expertise They lack the scale to attract budgets independently They are late to the game and want to catch up quickly They are overwhelmed by the fragmentation of solutions
Slide 40: We Offer a Modular Approach for Category Leaders
RETAILERS We Offer a Modular Approach for Category Leaders Retailer Needs They seek greater personalization of their onsite experience They want to establish a differentiated, retailer-specific media buying frontend for their direct clients They aspire to find new sources of demand to sustain or acc
Slide 41: We Have Multiple Growth Drivers on the Supply Side
RETAILERS We Have Multiple Growth Drivers on the Supply Side 41 Geographic and Vertical Expansion New business in APAC Expanded category leadership in Beauty Expanded footprint in adjacent verticals/digital marketplaces Expected new business from Microsoft Advertising Format and Channel Expansion 47
Slide 42: We Are Introducing the Next Generation of Onsite Display
RETAILERS We Are Introducing the Next Generation of Onsite Display Moving from Impressions to Outcomes . Increased ability to manage pacing, Self-service optimization, and delivery Video Additional formats to give brands more options for branded storytelling Functionalities to reduce workload for br
Slide 43: We Are Seeing Durable Growth Across our Retailer Base
RETAILERS We Are Seeing Durable Growth Across our Retailer Base Available Placements vv» + P PP PP Pr Yr e Xo Bs ye i Roo ye ZB Share of Retailers With More Than One Format 43 Average Number of Retailers a Brand is Live on oan Lo 2 & & & < ZS ye ZS ye pod Coverage Rate
Slide 44: We Are Driving Growth No Matter Where Demand is Sourced
RETAILERS We Are Driving Growth No Matter Where Demand is Sourced RETAILER A RETAILER B RETAILER C RETAILER D Demand Mix qq Criteo Contribution ex- TAC Vey Growth (ITM) +63% +50% +26% +39% Sponsored ads Sponsored ads Sponsored ads. Sponsored ads Display ads Display ads Display ads Inventory expansio
Slide 45: Criteo Offers Flexibility for Retailers to Scale
Criteo Offers Flexibility for Retailers to Scale
Slide 46: Our Success Story: Spotlight on the Americas
Our Success Story: Spotlight on the Americas Sherry Smith Executive Managing Director, Americas 46
Slide 47: Spotlight Key Highlights
Key Highlights SPOTLIGHT We have significantly expanded our presence and established ourselves as the central Retail Media hub alongside Amazon We have been steadily increasing our market share and have significant potential for further growth Our ability to bridge retailer needs with advertiser nee
Slide 48: We Have Significantly Grown our Footprint
SPOTLIGHT We Have Significantly Grown our Footprint 2022 ~ 8 1,600+ 3,100+ v¥ New categories such as spirits & beverages 7 , . brands brands Y Doubled size of Beauty category $200M+ | » More than doubled to $500M+ in annual spend 9 in annual spend with holdcos growing 50%+ this year 50%+ 65%+ vo > o
Slide 49: We Are Bridging Retailer Needs with Advertiser Needs
SPOTLIGHT We Are Bridging Retailer Needs with Advertiser Needs RETAILER NEEDS CRITEO ADVERTISER NEEDS First-party data monetization Al-driven performance F High-intent audiences] Ease of monetization End-to-end platform Easy access to multiple RMNs Media excellence Standardization (MRC) Measurement
Slide 50: We Have Significant Potential for Further Growth
SPOTLIGHT We Have Significant Potential for Further Growth ONSITE LEVERS OFFSITE LEVERS ADD-ONS 50 Snapshot - Criteo’s Top 10 U.S. Retailers v With more inventory and higher rates 10 outor10 _y- 1 sus — 5 out of 10 vy 4 out of 18 _ _» Commerce Max Offsite 2 out of 10 _ 5 out of 18
Slide 51: The Americas Have Been a Retail Media Growth Engine
_ Ez The Americas | Have Been a Retail Media ey \ ee | Growth Engine ¢
Slide 52: AI-Driven Product Innovation
Al-Driven Product Innovation Todd Parsons Chief Product Officer CRITEO 62
Slide 53: Product Key Highlights
PRODUCT + We leverage Al to add value across the buyer journey by enhancing relevancy, predicting customer needs for complementary product recommendations, and engaging with larger audiences Key H ig hlights + Our Al-driven innovation brings leading performance and optimized workflows in Retail Medi
Slide 54: We Bring Best-in-Class AI to Enhance the Buyer Journey
We Bring Best-in-Class Al to Enhance the Buyer Journey 54 PRODUCT =I «= Sarah watches a reel of "Top 10 Beauty Hacks" from her favorite influencer. = om +: CRITEO CLIENT(S) OPPORTUNITIES @siow.ad conversion probebity
Slide 55: Relevancy Starts with the Right Data
PRODUCT Relevancy Starts with the Right Data SHOPPER DATA G&A Loyalty Numbers a, A ‘ PRODUCT DATA Product Searches Q SEZ Product Reviews ‘gv “WY Onsite Interactions a 3 Cart Activity 55
Slide 56: We Offer AI-Driven Campaign Tools to Elevate the Brand Experience
PRODUCT We Offer Al-Driven Campaign Tools to onsen seen ae Elevate the Brand $187,378 Experience meer ROAS 937% 874% - 001% Clicks Conversions 14,188 375 14,032 - 14,344 350 - 400 Al-Enabled Outcomes nian Forecast by retailer 0900 Al-Enabled Forecasting Retailers Budget Clicks Conversions Revenue RO
Slide 57: We Bring AI-Powered Creatives to Boost Performance
PRODUCT We Bring Al-Powered Creatives to Boost Performance Silence the Chaos ray Stay focused with our noise cancelling > headphones | Microsoft > Al-Powered Creative > Al-Powered Personalization Advertising Generation Silence to Commute in Success \ Peace Experience : ‘Our noise cancelling distract
Slide 58: Conversational Search Represents a New Monetization Opportunity
PRODUCT Conversational Search Represents a New Monetization Opportunity which toothbrush to use for my sensitive teeth 7 @ Ee The sonsodyne daily care toothbrush is a good option for sensitive teeth. It has a soft bristles and a rounded head that will help to clean your teeth without irritating them
Slide 59: We Lead the Way in Measurement to Spur Growth
PRODUCT We Lead the Way in Measurement to Spur Growth Our Journey Towards Retail Media Measurement Standardization and Transparency 59 Onsite & Offsite Verification Viewability and invalid traffic (IVT) measurement across Criteo’s network of retailers IAS= IDV DoubleVerify MRC Accreditation «é Earni
Slide 60: Our AI Innovation Unifies the Buyer Journey
Our Al Innovation Unifies the Buyer Journey
Slide 61: Delivering Profitable Growth
Delivering Profitable Growth Sarah Glickman Chief Financial Officer
Slide 62: Financials Key Highlights
Key Highlights + FINANCIALS We are in a strong position to keep growing faster than the market and to increase our market share We have multiple levers to unlock the full potential of Retail Media and exceed market growth in the next several years Retail Media is significantly contributing to our co
Slide 63: We Expect Continued Market Share Gains & Sustainable Growth
FINANCIALS We Expect Continued Market Share Gains & Sustainable Growth Gaining Market Share! Contribution ex-TAC? (Q4 2022 = 100) (LTM) $238M 200 180 160 140 120 100 °° Q4'22 Ql'23, Q2'23, Q3'23 Q4'23 QI24 Q2'24 Q3'24 Q3 2022 Q4 2022 Q1 2023 22023 Q3 2023 Q4 2023 Q12024 Q2 2024 Q3 2024 —Criteo Marke
Slide 64: Our Strong Brand Relationships Enable Durable Growth
FINANCIALS Our Strong Brand Relationships Enable Durable Growth ~$1.5B media spend Demand Side in LTM Brand Client Cohort over the past 4 years (Avg. Media Spend TTM) 3,100+ ' ' direct brands wal TTTRO Ae 3x rT] i number of brands in bibdl “ Ql @2 @3 Q4 Al @2 GB Q4 Bl Q2 @ A A GZ QB A& A QQ a 2020 2
Slide 65: Our Strong Retailer Relationships Enable Durable Growth
Our Strong R FINANCIALS etailer Relationships Enable Durable Growth Supply Side Retailer Client Cohort over the past 4 years (Avg. CexT TTM) Ql @2 83 @4 al a 2020 2020 2020 2020 2021 2021 129% same-retailer CexT retention! over the past 4 quarters ~70% of retailers with exclusive | partnership Q3 G4
Slide 66: Most Retailers Are Still Early in their Retail Media Journey
FINANCIALS Most Retailers Are Still Early in their Retail Media Journey... Top 40 retailers Growth Trajectory Activated media spend grew from 35% | ° Ps) $400M in2020t0 $1. 5B wm Criteo retailer average at Q@ . 5% of e-commerce GMV in 2020 increased % ot eCommerce GMV N 3 z ° °° e ° eee s es 15% 4 a
Slide 67: The Opportunity Is Massive
67 in e-commerce existing clients from FINANCIALS and the Opportunity Is Massive 10%+ in annual growth t $50M to $100M in additional revenue over the next 3 to 5 years $160B GMV for 0.8% to 5% of GMV! estimated range of Every Incremental 1% of GMV= * — $1.6B in activated media spend * $200M in addit
Slide 68: We Have Multiple Growth Drivers to Capitalize on This Opportunity
FINANCIALS. We Have Multiple Growth Drivers to Capitalize on This Opportunity © () @) © Supply Multiple Demand Demand Expansion Sources Unlocks vy Multi-retailer buying Commerce Max DSP v New retailers vy New geographies API Partners v Measurement standardization v Adjacent verticals Microsoft Adver
Slide 69: How our Economics Work
How our Economics Work Bev Side 69 Supply-side take rate (volume-based fees as % of media spend) FINANCIALS @rce: Licensing fees and Services fees (creatives, commerce insights and analytics, demand enablement, campaign management) Sa Qrora Side Demana-side take rate (volume-based fees as % of media
Slide 70: Retail Media is a Strong Contributor to Our Top Line and Bottom Line
FINANCIALS Retail Media is a Strong Contributor to Our Top Line and Bottom Line @2) Continued operating leverage with scale Build, buy, partner (33) Ongoing high-ROI investments for future growth growth strategy (@) Operational excellence (B) Self-service capabilities driving efficiencies 70
Slide 71: We Are Well-Positioned to Drive Durable and Profitable Growth
We Are Well- i“) Positioned to Drive “ “ Durable and Profitable Growth
Slide 72: Closing Remarks
Closing Remarks Brian Gleason Chief Revenue Officer and President, Retail Media CRITEO 72
Slide 73: The Underappreciated Flywheel
The Underappreciated MORE Flywheel RETAILERS MORE BRANDS CONSUMERS 73
Slide 74: Creating superior long-term value
Creating superior long-term value + Wehave built a Retail Media powerhouse to capitalize on the fastest-growing advertising channel + Wehave a multi-faceted demand strategy to help brands and agencies scale Retail Media + We offer a modular, flexible approach, and professional services to help retai
Slide 75: Appendix
Appendix CRITEO
Slide 76: Key Developments Since 2022
Key Developments Since 2022 What Remains the Same » Addressing the fastest-growing advertising channel > Market share gains > Format and channel expansion with existing clients New business including expansion in adjacent verticals and new geos Healthy, resilient take rates Strong contribution to ad