Criteo S.A.(CRTO) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 revenue was $553 million, a decrease of 2% year-over-year, while gross profit increased by 9% to$ 301 million[2]. - Fiscal year 2024 revenue totaled $1.9 billion, a decrease of 1% year-over-year, with gross profit rising 14% to$ 983 million[6]. - Net income for Q4 2024 was $72 million, or$ 1.23 per diluted share, representing a 16% increase from Q4 2023[8]. - Adjusted EBITDA for fiscal year 2024 was $390 million, a 29% increase year-over-year, with an adjusted EBITDA margin of 35%[17]. - Revenue for Q4 2024 was$ 553,035, a decrease of 2% compared to $566,302 in Q4 2023[49]. - Gross profit increased by 9% year-over-year to$ 300,971 in Q4 2024, up from $276,626 in Q4 2023[55]. - Adjusted EBITDA for Q4 2024 reached$ 144,008,000, a 4% increase from $138,645,000 in Q4 2023, while for the full year, it increased by 29% to$ 390,118,000 from $301,798,000[61]. - Adjusted net income for Q4 2024 was$ 100,840,000, an 11% increase from $90,905,000 in Q4 2023, and for the full year, it increased by 40% to$ 267,867,000 from $191,299,000[65]. Contribution and Profitability Metrics - Contribution ex-TAC for Q4 2024 was$ 334 million, up 6% year-over-year, and increased by 7% at constant currency[5]. - Retail Media Contribution ex-TAC grew 25% year-over-year at constant currency in 2024, with a retention rate of 128%[3]. - Contribution ex-TAC for Q4 2024 was $334,399, a 6% increase from$ 316,376 in Q4 2023[55]. - Contribution ex-TAC is a profitability measure akin to gross profit, which is crucial for evaluating operating performance and making strategic decisions[33]. Cash Flow and Capital Management - Cash flow from operating activities for Q4 2024 was $169 million, with Free Cash Flow of$ 146 million[19]. - Free Cash Flow is defined as cash flow from operating activities less net acquisition of intangible assets, property, plant, and equipment, indicating the company's ability to generate cash[36]. - The company deployed $225 million for share repurchases in 2024, with an increased remaining share buyback authorization of up to$ 200 million[4]. - The Board approved an increase in the share repurchase program from up to $630 million to up to$ 805 million[29]. - The company plans to continue its stock purchase program based on market conditions and other factors, with no minimum purchase requirement[30]. Balance Sheet and Assets - Total assets decreased from $2,391,549 thousand as of December 31, 2023, to$ 2,266,449 thousand as of December 31, 2024, representing a decline of approximately 5.2%[47]. - Cash and cash equivalents decreased from $336,341 thousand in 2023 to$ 290,693 thousand in 2024, a reduction of about 13.6%[47]. - Trade receivables increased from $775,589 thousand in 2023 to$ 800,859 thousand in 2024, reflecting an increase of approximately 3.2%[47]. - Total current liabilities decreased from $1,140,117 thousand in 2023 to$ 1,046,600 thousand in 2024, a decrease of about 8.2%[47]. - The company reported a decrease in total equity from $1,111,391 thousand in 2023 to$ 1,081,097 thousand in 2024, a decline of approximately 2.7%[47]. Operational Metrics - Client count declined by 5% YoY to 17,269, with a slight increase of 1% QoQ from 17,162[73]. - Headcount decreased by 2% YoY to 3,507, with a minimal increase of 0.1% QoQ from 3,504[73]. - Days Sales Outstanding increased by 4 days QoQ to 62 days, compared to 65 days in the previous quarter[73]. Market and Growth Outlook - For fiscal year 2025, the company is targeting mid-single-digit growth in Contribution ex-TAC at constant currency[24]. - The company has a significant focus on market expansion and innovation, with forward-looking statements indicating expectations for future growth opportunities[40].