Criteo S.A.(US:CRTO)2024-10-30 11:04Financial Performance - Q3 2024 revenue was $459 million, a decrease of 2% year-over-year, while gross profit increased by 13% to $232 million[2]. - Net income for Q3 2024 was $6 million, or $0.11 per diluted share, compared to $7 million, or $0.12 per diluted share in Q3 2023[10]. - Adjusted EBITDA for Q3 2024 was $82 million, a 20% increase year-over-year, with an adjusted EBITDA margin of 31%[11]. - Free Cash Flow for Q3 2024 was $39 million, a significant increase of 925% compared to $4 million in Q3 2023[13]. - Revenue for Q3 2024 was $458.9 million, a decrease of 2.6% compared to $469.2 million in Q3 2023[38]. - Gross profit for Q3 2024 was $231.9 million, up from $205.1 million in Q3 2023, representing a 13.0% increase[38]. - Net income for Q3 2024 was $6.1 million, compared to $6.6 million in Q3 2023, reflecting a decrease of 7.4%[38]. - Adjusted EBITDA for Q3 2024 was $82,001, reflecting a 20% increase from $68,443 in Q3 2023[48]. - The company reported a net income of $6,144 thousand for the three months ended September 30, 2024, a 7% decrease from $6,635 thousand in the same period of 2023[53]. - Contribution ex-TAC for the three months ended September 30, 2024, was $266,103 thousand, an 8% increase from $245,395 thousand in the same period of 2023[57]. Cash Flow and Assets - Cash from operating activities increased to $57,503 in Q3 2024, up from $19,614 in Q3 2023, representing a significant growth[43]. - Free cash flow for Q3 2024 was $38,604, compared to $3,765 in Q3 2023, indicating a substantial improvement[43]. - Criteo's cash and cash equivalents decreased to $208.7 million as of September 30, 2024, down from $336.3 million at the end of 2023, a decline of 38.0%[35]. - The net cash position was $283,990, reflecting a 5% increase year-over-year but a 3% decrease quarter-over-quarter[60]. - The company experienced a net decrease in cash and cash equivalents of $7,708 in Q3 2024, compared to a decrease of $28,326 in Q3 2023[41]. Operational Metrics - Contribution ex-TAC for Q3 2024 was $266 million, reflecting an 8% year-over-year increase[8]. - Retail Media Contribution ex-TAC grew 23% year-over-year at constant currency, with a same-retailer retention rate of 120%[3]. - Criteo's activated media spend was $4.3 billion over the last 12 months, with Q3 2024 spend at $1.1 billion, down 2% year-over-year[3]. - The number of clients decreased by 7% year-over-year to 17,162, down from 18,423 in Q3 2023[60]. - Revenue from Retail Media increased by 22% year-over-year to $60,765, while Performance Media revenue decreased by 5% to $398,127[60]. Expenses and Liabilities - Total current assets decreased to $1.14 billion as of September 30, 2024, down from $1.35 billion at the end of 2023, a decline of 15.7%[35]. - Total liabilities decreased to $1.12 billion as of September 30, 2024, down from $1.32 billion at the end of 2023, a reduction of 15.0%[35]. - Research and development expenses increased to $85.3 million in Q3 2024, compared to $62.5 million in Q3 2023, an increase of 36.4%[38]. - Total operating expenses for the three months ended September 30, 2024, were $(222,330) thousand, a 15% increase compared to $(193,693) thousand in the same period of 2023[50]. - The company reported a significant increase in equity awards compensation expense, which rose by 43% to $34,863 in Q3 2024[48]. Future Outlook - Criteo expects to return $180 million of capital to shareholders in 2024, having already deployed $157 million for share repurchases in the first nine months[3]. - For fiscal year 2024, Criteo anticipates Contribution ex-TAC growth of 10% to 11% at constant currency[16]. - Q4 2024 guidance includes expected Contribution ex-TAC between $327 million and $333 million, representing year-over-year growth of 3% to 5%[17]. - The company expects to face challenges related to technology innovation and competition, impacting future growth prospects[29]. - The company anticipates continued macroeconomic pressures, including inflation and fluctuating interest rates, affecting its business operations[29].