Criteo S.A.(US:CRTO)2020-10-28 16:12Financial Performance - Criteo's Q3 2020 revenue was $470 million, a decrease of 11% year-over-year (YoY) at constant currency[25,27] - Revenue ex-TAC (Traffic Acquisition Costs) was $186 million, down 2% YoY[25,27] - Adjusted EBITDA was $49 million, down 26% YoY, representing a 37% Adjusted EBITDA margin in Q4 outlook[25,27,35] - Free cash flow was $38 million[24] - The company estimates a negative impact of $10 million in Q3 and $21 million for the first nine months of the year due to privacy headwinds[27] Strategic Pillars & Growth Initiatives - New solutions grew 43% YoY and 53% year-to-date (YTD), representing approximately 20% of the company's business[30,15] - Retail Media experienced growth of approximately 60% YoY and 62% YTD[30] - Omnichannel solutions grew 120% YoY and 121% YTD[30] Transformation and Cost Management - Criteo achieved $92 million in cost savings YTD, exceeding its cost control plan[30] - Non-GAAP operating expenses (Opex) declined by 18% YoY in Q3 2020[31] Balance Sheet and Liquidity - The company has a strong balance sheet with $627 million in cash and cash equivalents, representing approximately 34% of total assets[33] - Total financial liquidity is over $870 million, including cash and committed financing until March 2022[33] - Criteo executed $44 million in share repurchases in 2020 ($18 million in Q1, $15 million in Q2, and $11 million in Q3)[33] Market Trends - Ecommerce is booming, with open internet retailers representing approximately 40% of global ecommerce[7] - Ecommerce is expected to grow from 16% of global sales today to 23% in 2023[7] - Digital Trade Marketing grew at a compound annual growth rate (CAGR) of 82% between 2016 and 2019, reaching a $23 billion global market in 2020[7]