Criteo SA · NASDAQ:CRTO
Criteo SA — Q1 2024 Earnings Presentation
27 slides from Criteo SA's earnings presentation, May 2, 2024
Slide 1: Criteo Investor Presentation Q1 2024 Earnings
CRITEO INVESTOR PRESENTATION Q1 2024 Earnings e May 2, 2024 f
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 CRITEO
Slide 4: We Are Off to a Strong Start in 2024
We Are Off toa Strong Start in 2024 * Double-digit growth and record Q1 Contribution ex-TAC * Retail Media up 34% driven by market share gains * Performance Media up 13% driven by strong momentum in Commerce Audiences * Retargeting represents less than 50% of our business * Achieved adj. EBITDA abov
Slide 5: Q3 2023 Q4 2023 Q1 2023
40% 30% 20% 225 220 220 10% 210 200 0% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Nb of retailers Market Growth Criteo Growth
Slide 6: Commerce Audiences are the Most Valuable Audiences to Brands
Commerce Audiences are the Most Valuable Audiences to Brands .__f Activate full custome! TT U: mer Criteo Knows v journey campaigns ; How People ru rey Atpovered 9 0 5 % commerce audiences Like of media spend! comes Use ad formats built for from clients using Seareha (>) every screen, every Commerce
Slide 7: 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 in a cookieless future + Integration of Generative Al into our platform with a focus on improving performance, enhanci
Slide 8: We Are Pioneering Next Gen Addressability
We Are Pioneering Next Gen Addressability Our strategy consists of three pillars that combine precision, performance, and scale - all underpinned by best-in-class Al and contextual intelligence CRITEO // NEXT GEN ADDRESSABILITY First-Party Data Google Privacy Sandbox Closed Environments Hashed PII (
Slide 9: Financial & Operational Update
Financial & Operational Update Sarah Glickman Chief Financial Officer CRITEO
Slide 10: Q1 2024 Financial Highlights
10 Q1 2024 Financial Highlights % YoY Ql Guidance Activated Media Spend! Contribution ex-TAC Net Income | som | Non-GAAP Diluted EPS Free Cash Flow $1M 1. Activated media spend is defined as media spend activated on behalf of our Retail Media clients and our Performance Media clients; itis an operat
Slide 11: We Saw Momentum Across our Segments in Q1
u We Saw Momentum Across our Segments in Q1 * Client retention close to FA Key Drivers + EE{Zof media spend activated through agencies Retail Media $304M in activated media spend!, up +38%, growing faster than the market® Contribution ex-TAC of $50M, up +34%? +136% same-retailer CexT retention * Clo
Slide 12: Robust Balance Sheet, Cash and Liquidity Position
2 Robust Balance Sheet, Cash and Liquidity Position Financial flexibility to support organic growth investments, M&A and share repurchase program 1 Free cash flow ($M) $1M YTD, reflecting seasonality and lower capex Expect strong FCF generation in H2 2024 in line with our increased business seasonal
Slide 13: Raising 2024 Outlook
13 Raising 2024 Outlook BACKDROP Better-than-expected Q1 performance and continued business momentum; focus on productivity and cost efficiencies FY 2024 Q2 2024 Targeting gl it growth $261M to $265M, or +10% to +12% YoY at constant currency growth at constant currency as * Continued traction of our
Slide 14: Why Invest in CRTO Today?
4 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 dat
Slide 15: Appendix
X y Appendix
Slide 16: 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 17: 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 18: Criteo by the Numbers
Criteo by the Numbers $4.2 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) ~1,100 R&D & Product employees 18 2. Retailers in our largest markets that have
Slide 19: Industry Recognitions
Industry Recognitions FORRESTER Criteo was named as one of the 12 providers that matter most in “The Forrester WaveTM: Omnichannel Demand-Side Platforms, @3 2023" Forrester stated that “Criteo's strength is its use of Al" INSIDER Criteo named one of the Top hottest AdTech companies of 2022 and 2023
Slide 20: Retail Media Footprint in the Americas
Retail Media Footprint in the Americas We are the Retail Media Partner of Choice ~60% 2 years Top 30 US. Retailers! Average contract duration? © Walmart>< Whégreena UberEats = dlarringades er Canada *macys A\albertsons Cvs metro hit mercatus’ Buy. Michaels SbSith%oeme \eTRAGTOR NORDSTROM ULTA giant
Slide 21: 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? g deliveroo LaRedoute very ASDA vintersport flaconi fey i 1 S/10)S) (5) SPORTCHEK voter SEPHORA frac pokcom® fonQ.. @ or Liii; >i NAMSHI BCC) _Lookrantastic eSaTU
Slide 22: Cross-selling opportunities / Expansion with Brandcrush acquisition
Cross-selling opportunities + Expansion with Brandcrush acquisition
Slide 23: Contribution ex-TAC by Segment
all Contribution ex-TAC by Segment Contribution ex-TAC , i in $m I y 8 | Yoy! QV24 | Q4’23 Q3'23 Q2'23 QVv23 Q4’22 Q3'22 Q2'22 QVv22 I | t ] t ] } Retail Media | +34% 50.2 9} 74.2 48.4 43.5 374 57.1 36.9 36.6 30.8 t } b | I | t ] Performance Media | +13% 203.7 { 242.2 197.0 196.7 183.3 226.3 176.5 1
Slide 24: Contribution ex-TAC Reconciliation
24 all Contribution ex-TAC Reconciliation $ in millions av24 | @423 @323 «223 aN'23 $ in millions 2025 2022 Gross Profit 272 | 2766 «2051S 199.8 TBS Gross Profit 863.0 7952 Other Cost of 367 39.8 403 40.4 391 Other Cost of 159.6 133.0 Contributflonex- | 2539 | 3164 245.4 2402-2206 Contribution | 1,0
Slide 25: 8.6 62.1 (1.2) 4.5 3.0 21.8 27.3 21.0 0.2 (0.1) 24.9 23.1 - 0.6
8.6 62.1 (1.2) 4.5 3.0 21.8 27.3 21.0 0.2 (0.1) 24.9 23.1 - 0.6 - - 7.9 5.7 62.1 76.6 70.7 138.7
Slide 26: Free Cash Flow Reconciliation
26 all! Free Cash Flow Reconciliation ($ in millions) QY24 QYv23 2023 2022 CASH FROM OPERATING ACTIVITIES 14.0 42.0 224.2 256.0 Acquisition of intangible assets, property, plant and (3.3) (37.2) (925) (84.8) equipment Change norco poy retedfomtanabie | ce FREE CASH FLOW 08 8.7 109.9 200.1 CRITEO
Slide 27: Contribution ex-TAC Actual and Guidance
Q1 2024 Actual FX USD million @ Q1 2023 FX Actual impact Contribution ex-TAC $ 258 $ (4) $ 254 Q2 2024 Guidance* FX Guidance USD million @ Q1 2023 FX impact Midpoint Contribution ex-TAC $ 266 $ (3) $ 263 FY 2024 Guidance* FX Guidance USD million @ FY 2023 FX impact Midpoint ** Contribution ex-TAC $