Criteo (CRTO) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Speaker0 Please note this event is being recorded. I would now like to turn the conference over to Melanie Dombre, Vice President, Investor Relations. Please go ahead. Speaker1 Good morning, everyone, and welcome to Criteo's first quarter twenty twenty five earnings call. Joining us on the call today, Chief Executive Officer, Michael Komatsinski and Chief Financial Officer, Sara Glickman are going to share some prepared remarks. Todd Parsons, our ...

Q1 2025 Earnings Investor Presentation May 2, 2025 Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "anticipates," "believes," "can," "could," "estimates," "expects" "intends," "is designed to," "may," "might," "objectives," "plans," "potential," "predicts," "projects," "seeks," "should," "will," "would" or similar expressions and the negatives of those terms. Forward- looking statements involve known and unknown risks, uncertainties and ...

Financial Performance - Q1 2025 revenue was $451 million, a 0.3% increase year-over-year, with gross profit at $237 million, up 9%[3] - Net income for Q1 2025 reached $40 million, a significant increase of 367% compared to $9 million in Q1 2024, resulting in diluted EPS of $0.66[3][8] - Contribution ex-TAC for Q1 2025 was $264 million, reflecting a 4% year-over-year increase, or 7% at constant currency[6][7] - Adjusted EBITDA for Q1 2025 was $92 million, representing a 30% increase year-over-year, with an adjusted EBITDA margin of 35%[9][10] - Free Cash Flow (FCF) increased to $45 million in Q1 2025, compared to $1 million in Q1 2024, with a trailing 12-month FCF of $226 million[12][25] - Revenue for Q1 2025 was $451.4 million, a slight increase from $450.1 million in Q1 2024, representing a growth of 0.3%[38] - Gross profit for Q1 2025 increased to $237.0 million, up from $217.2 million in Q1 2024, reflecting a growth of 9.1%[38] - Net income for Q1 2025 was $40.0 million, compared to $8.6 million in Q1 2024, marking a significant increase of 366.5%[38] - Adjusted EBITDA rose to $92,148,000, reflecting a 30% increase from $70,679,000 in the previous year[49] Operating Expenses and Efficiency - Operating expenses decreased by 9% year-over-year to $189 million, driven by effective resource allocation[10] - Operating expenses decreased to $188.8 million in Q1 2025 from $206.9 million in Q1 2024, a reduction of 8.7%[38] - Total operating expenses decreased by 9% to $188,809,000 from $206,869,000 year-over-year[51] Cash Flow and Liquidity - Cash provided by operating activities for Q1 2025 was $62.3 million, compared to $14.0 million in Q1 2024, indicating a substantial increase[40] - Cash from operating activities increased to $62,341,000, a 345% year-over-year change from $14,017,000[41] - Free cash flow reached $45,250,000, compared to $793,000 in the previous year, indicating significant growth[41] - As of March 31, 2025, the company had total financial liquidity of approximately $810 million, including cash, marketable securities, and a revolving credit facility[13] - Cash and cash equivalents at the end of Q1 2025 were $286.2 million, down from $341.9 million at the end of Q1 2024, a decrease of 16.3%[40] - The net cash position decreased by 16% year-over-year to $286,171 million, with a 2% decline quarter-over-quarter[61] Shareholder Returns - The company repurchased $56 million in shares during Q1 2025[4][12] Future Outlook - For fiscal year 2025, the company expects low-single-digit growth in Contribution ex-TAC at constant currency, with guidance for adjusted EBITDA between $60 million and $66 million[20][21] - The company anticipates continued growth opportunities despite macroeconomic challenges, including inflation and fluctuating interest rates[29] Assets and Liabilities - Total assets as of March 31, 2025, were $2.13 billion, down from $2.27 billion as of December 31, 2024, a decrease of 6.1%[36] - Total liabilities decreased to $1.03 billion as of March 31, 2025, from $1.19 billion as of December 31, 2024, a reduction of 13.0%[36] Client and Revenue Segmentation - Retail Media Contribution ex-TAC grew 18% year-over-year at constant currency, with a same-retailer retention rate of 120%[4] - Retail Media revenue grew by 17% to $59,498,000, while Performance Media revenue decreased by 2% to $391,936,000[46] - The number of clients decreased by 4% year-over-year to 17,084, down from 17,269 in Q4 2024[61] - Contribution ex-TAC decreased by 1% year-over-year to $264,372 million, with a 21% decline quarter-over-quarter[61]

Deployed $56 Million to Repurchase Shares in Q1 2025NEW YORK, May 2, 2025 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO) ("Criteo" or the "Company"), the commerce media company, today announced financial results for the first quarter ended March 31, 2025.First Quarter 2025 Financial Highlights:The following table summarizes our consolidated financial results for the three months ended March 31, 2025: Three Months Ended March 31, 2025 2024 YoY Change (in millions, except EPS data) GAAP Resu ...

Core Insights - Criteo has launched its Onsite Video solution for retail media, which integrates shoppable video ads into the digital storefronts of major retailers, enhancing the shopping experience and driving conversions [1][4][5] - The Onsite Video solution is part of a comprehensive advertising suite that includes Video, Display, and Sponsored Product ad formats, positioning Criteo as a leader in performance-driven commerce media [3][4] - Research indicates that onsite retail media can yield up to 70% gross margins, presenting a significant revenue opportunity for retailers [4] Product Features and Benefits - The Onsite Video solution allows brands to engage high-intent shoppers with dynamic content at critical decision-making moments, resulting in a 5.6x increase in new-to-brand customers when combined with other ad formats [4][5][7] - Early adopters, such as Albertsons Media Collective, reported a 280% increase in click-through rates and a 460% lift in sales when using Onsite Video alongside Sponsored Product ads, demonstrating its effectiveness in driving engagement and sales [5][6] Strategic Implications - The launch of Onsite Video enhances Criteo's ability to provide a shopper-centric retail media offering, allowing brands to create impactful ad experiences that drive measurable results [6] - The integration of Onsite Video with other advertising formats enables agencies to better understand the collective impact of different ad types on customer acquisition and engagement, optimizing full-funnel campaigns [6]

Core Viewpoint - Criteo S.A. will announce its financial results for Q1 2025 on May 2, 2025, with a conference call hosted by key executives to discuss the results and answer questions [1]. Group 1: Financial Results Announcement - The financial results for the first quarter ended March 31, 2025, will be announced on May 2, 2025 [1]. - The conference call will be led by CEO Michael Komasinski and CFO Sarah Glickman, with participation from Chief Product Officer Todd Parsons for the Q&A session [1]. Group 2: Conference Call Access - The conference call can be accessed via specific dial-in numbers, and it will also be webcast live on the company's website [2]. - A replay of the conference call will be available after the live session [2]. Group 3: Company Overview - Criteo is a global commerce media company that connects marketers and media owners to enhance commerce outcomes [3]. - The company’s Commerce Media Platform aims to deliver richer consumer experiences from product discovery to purchase [3]. - Criteo supports an open internet that fosters discovery, innovation, and choice through impactful advertising [3].

A downtrend has been apparent in Criteo S.A. (CRTO) lately with too much selling pressure. The stock has declined 21.2% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spo ...

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Group 1: Leadership Changes - Frederik van der Kooi has been appointed as Chairperson of Criteo's Board of Directors, succeeding Rachel Picard, who served for five years and will remain as a director [1][5][6] - Stefanie Jay has been nominated for election as a new independent director at Criteo's 2025 Annual General Meeting, with Hubert de Pesquidoux not standing for reelection [2][4] Group 2: Executive Backgrounds - Van der Kooi has over a decade of experience in digital advertising, previously serving as Corporate Vice President at Microsoft, where he scaled the advertising business to $10 billion [3] - Jay brings nearly 20 years of experience in omnichannel retail and eCommerce, having transformed Walmart's advertising technology stack and significantly increased revenue [4] Group 3: Strategic Vision - The company aims to leverage its unified, AI-driven platform to create further value in the growing commerce media sector, with Van der Kooi emphasizing the importance of innovation and customer-centricity [5][6] - Both Van der Kooi and Jay express confidence in Criteo's potential for long-term success and growth in the commerce media landscape [5][6]

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