Criteo SA · NASDAQ:CRTO
Criteo SA — Q2 2024 Earnings Presentation
27 slides from Criteo SA's earnings presentation, Aug 1, 2024
Slide 1: Criteo Investor Presentation Q2 2024 Earnings
CRITEO INVESTOR PRESENTATION Q2 2024 Earnings © August 1, 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 2IE 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 | is 2024 Priorities v Megan Clarken Chief Executive Officer
Slide 4: We Are Off to a Strong Start in 2024
We Are Off toa Strong Start in 2024 + Double-digit growth and record Q2 Contribution ex-TAC + Retail Media up 24% driven by market share gains * Performance Media up 11% driven by strong momentum in Commerce Audiences + Retargeting represents 48% of our business * Record Q2 adj. EBITDA margin Retail
Slide 5: Q3 2023 Q4 2023 Q1 2024
• • • 40% 30% 20% 225 225 220 220 10% 210 200 0% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 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 == Activate full customer Criteo Knows v journey campaigns Build hyper-focused 0 How People we Al-powered Close to 8 % commerce audiences Like of media spend! comes from clients using Commerce Use ad formats built for Seareh (>) every scre
Slide 7: We Integrate Cutting-Edge AI into our Commerce Media Platform
We Integrate Cutting-Edge Al into our Commerce 140+ Media Platform aes focused on Al Al + 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 + Al has been part of Criteo'
Slide 8: We Are Pioneering Next Gen Addressability
We Are Pioneering Next Gen Addressability Our strategy remains unchanged and 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 Hashed PII
Slide 9: Financial & Operational Update
Financial & Operational Update Sarah Glickman Chief Financial Officer
Slide 10: Q2 2024 Financial Highlights vs. Guidance
10 Q2 2024 Financial Highlights 1 2 3 9 vs. % YoY Q2 Guidance Activated Media Spend! $1,049M +7%2 Revenue $471M +3%2 Contribution ex-TAC $267M Adj. EBITDA Net Income $28M Non-GAAP Diluted EPS $1.08 +104% Free Cash Flow $(4)M Activated media spend is defined as media spend activated on behalf of our
Slide 11: We Saw Momentum Across our Segments in Q2
We Saw Momentum Across our Segments in Q2 * Client retention close to . of our live clients use more than one Key Criteo solution, vs. 37% a year ago Drivers . of media spend activated through agencies * Retargeting represents of Contribution ex-TAC Retail Media Performance Media * $354M in activate
Slide 12: Robust Balance Sheet, Cash and Liquidity Position
1 Robust Balance Sheet, Cash and Liquidity Position Financial flexibility to support organic growth investments, M&A and share repurchase program Free cash flow Cash & cash Balance sheet - ($M) equivalents ($M) Total assets ($M) YTD FCF of $(4)M, reflecting seasonality and lower capex 359 Trailing 1
Slide 13: Raising 2024 Outlook
3 1 Raising 2024 Outlook BACKDROP Better-than-expected Q2 performance and continued business momentum; focus on productivity and cost efficiencies FY 2024 Q3 2024 $264M to $268M, or +87 growth at co! to +10% +10% to +12% growth at constant currency on * Continued traction of our Commerce Media Platf
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
Xe y Appendix CRITEO
Slide 16: The only unified platform that directly connects advertisers with retailers and publishers
C ou RCE The only unified platform that directly connects advertisers PLATFORM Withretailers and publishers on the open internet Performance Media Retail Media \ h [ \ We enable media owners Supply Side & SSP (incl. retailers) to earn more. CRITEO | COMMERCE-GRID CRITEO / COMMERCE-YIELD revenue by e
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 $4.3 billion annual media spend activated ~$1+ trillion ecommerce sales across customer base 18+ years of expertise in commerce-focused Al ~18,000 clients ~700 million Daily Active Users (DAUs) ~1,100 R&D & Product employees ~65% of top-30 US. & -50% of top-30 EU retailers? 65%
Slide 19: Gartner recognition and awards
9 2 Gartner. Criteo recognized as a Representative Vendor in the July 2024 Gartner* Market Guide for ‘Ad Tech Platforms. INSIDER Criteo named one of the Top. hottest AdTech companies of 2022 and 2023 INSPIRING Awarded one of the Top 50 inspiring Workplaces in North America in 2022 Gartner does not e
Slide 20: Retail Media Footprint in the Americas
20 Retail Media Footprint in the Americas We are the Retail Media Partner of Choice ~65% Top 30 US. Retailers! © TARGET als Walmart 7s Canada *kmacys Adalbertsons PCVS Sebi Fie oerue CX Mex freshdirect BAY. Michael’ giant OHTA eagle el capacity rogram, excluding Amazon Walgreens Uber Eats metro Wosi
Slide 21: Retail Media Footprint in EMEA
2 Retail Media Footprint in EMEA WY celiveroo — serringesecs We are the Retail Media Partner of Choice ~50% 1.7 years Top 30 EMEA Retailers! Average contract duration? BOUGLAS Dia asos Go UberEats blokker. wey e ASDA frac Morrisons ¥!NTERSPoRT flaconi VES mpitys © SPORTCHEK boulanger = E.Leclerc ® D
Slide 22: Retail Media Footprint in APAC
22 Retail Media Footprint in APAC We Are Quickly Growing our Footprint Ginstamart QSWIGGY — Flipkart Uber Eats QW PAY Y-F7YF Matcash % iStyle.id Jsty’ . 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 23: Contribution ex-TAC by Segment
all) Contribution ex-TAC by Segment Contribution ex-TAC in $m YoY! QVv24 Q4'23 Q3'23 Q2'23 QV23 Q4'22 Q3'22 Q2'22 QrV22 Retail Media +24% 50.2 742 48.4 43.5 S74 571 36.9 36.6 30.8 Performance Media +% 203.7 242.2 197.0 196.7 W853 226.3 176.5 178.0 186.1 TOTAL +14% 253.9 316.4 245.4 240.2 220.6 283.4
Slide 24: Contribution ex-TAC Reconciliation
24 all! Contribution ex-TAC Reconciliation $in millions | @224 QY24 | Q423 @323 @223 ar23 $ in millions 2023 2022 Gross Profit | 2328 2172 | 2766 2051 1998 1815 Gross Profit 863.0 795.2 Omer Cost | 342 367 | 398 403404 391 Other Cost of 159.6 133.0 Contribution | 2671 «253.9 | 3164 245.4 240.2 2206
Slide 25: 28.1 8.6 62.1 0.3 (1.2) 4.5 8.6 3.0 21.8 21.9 27.3 21.0 0.2 0.2
28.1 8.6 62.1 0.3 (1.2) 4.5 8.6 3.0 21.8 21.9 27.3 21.0 0.2 0.2 (0.1) 25.1 24.9 23.1 - - 0.6 - - - 9.4 7.9 5.7 65.4 62.1 76.6 93.4 70.7 138.7
Slide 26: Free Cash Flow Reconciliation
26 all! Free Cash Flow Reconciliation ($ in millions) Q2'24 Q2'23 2023 2022 CASH FROM OPERATING ACTIVITIES 17.2 1.3 224.2 256.0 Acquisition of intangible assets, property, plant and (23.7) (24.3) (925) (84.8) equipment ° Change in accounts payable related to intangible assets, property, plant and eq
Slide 27: Contribution ex-TAC FX reconciliation and guidance
Q2 2024 Actual FX USD million @ Q2 2023 FX Actual impact Contribution ex-TAC $ 273 $ (6) $ 267 Q3 2024 Guidance* FX Guidance USD million @ Q3 2023 FX impact M idpoint Contribution ex-TAC $ 268 $ (2) $ 266 FY 2024 Guidance* FX Guidance USD million @ FY 2023 FX impact M idpoint ** Contribution ex-TAC