NASDAQ$CRTO

CRITEO SA-SPON ADR · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial results for the first quarter ended March 31, 2023.

Criteo's Q1 2023 revenue was $445 million, a 13% decrease year-over-year, while gross profit decreased 1% to $182 million. The company reported a net loss of $12 million, or $0.20 per share. Despite near-term macro-economic challenges, Criteo is focused on executing its transformation and capitalizing on growth opportunities, particularly in Retail Media.

  • Acquired Brandcrush to accelerate Retail Media solutions and provide a holistic omnichannel monetization platform globally.
  • Retail Media Contribution ex-TAC grew 22% year-over-year at constant currency with a 122% retention rate.
  • Expanded platform adoption with large retailers, including Rite Aid, ASOS and Sundrug.
  • Activated media spend was over $3.5 billion in the last 12 months and $0.8 billion in Q1, growing 37% at constant currency.

Headline financials

Total Revenue

$445M

Previous: $511M-12.8%
EPS (adj)

$0.46

Previous: $0.53-13.2%
Free Cash Flow

-$11.8M

Previous: $20.6M-157.4%
Net Income

-$11.8M

Previous: $20.6M-157.4%
Operating Income

-$23.5M

Previous: $27.7M-184.9%
Gross Profit

$182M

Previous: $184M-1.4%
Cash & Equivalents

$306M

Previous: $589M-48.1%
Total Assets

$2.19B

Previous: $1.92B+14.4%
Stock-Based Comp

$25.2M

Previous: $9.49M+165.2%

Revenue & EPS history

CRITEO · Revenue · Quarterly

$445M

Q1 2023-12.8%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

CRITEO · $38M total across 1 segment · Q1 2023

  • Retail Media
    $38M-18.5%

Forward guidance

Criteo expects high single-digit to low double-digit growth in Contribution ex-TAC at constant currency for fiscal year 2023, including Iponweb, with an Adjusted EBITDA margin of approximately 28%. For Q2 2023, Contribution ex-TAC is expected to be between $228 million and $234 million, with Adjusted EBITDA between $46 million and $50 million.

Tailwinds

  • High single-digit to low double-digit growth in Contribution ex-TAC at constant currency for fiscal year 2023, including the contribution from our Iponweb acquisition
  • Adjusted EBITDA margin of approximately 28% of Contribution ex-TAC for fiscal year 2023
  • Contribution ex-TAC between $228 million and $234 million for Q2 2023, or year-over-year growth at constant-currency of +8% to +10%, including the contribution from our Iponweb acquisition
  • Adjusted EBITDA between $46 million and $50 million for Q2 2023
  • Growth investments are paying off as we continue to win new Retail Media clients.

Headwinds

  • Uncertain macro-economic backdrop
  • Assumes specific exchange rates for main currencies impacting business
  • Assumes no additional acquisitions are completed during Q2 2023 or the fiscal year ended December 31, 2023
  • Variability of charges could potentially have a significant impact on our future U.S. GAAP financial results.
  • Macro-economic conditions including inflation and rising interest rates in the U.S. could have, an impact on Criteo's business, financial condition, cash flow and results of operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

-0.9%

Avg return

30 days after

53%

26 / 49 earnings

Positive

+30.4%

Q4 2017

Best reaction

-21.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.9%-19.9%-11.9%
Q4 2025-5.0%-8.6%-9.1%
Q3 2025+5.8%+7.0%-4.8%
Q1 2025-12.2%-17.2%-23.8%
Q4 2024+17.6%+14.9%-4.5%
Q3 2024-21.1%-19.4%-4.4%
Q2 2024+4.8%-1.6%+6.5%
Q1 2024+7.5%+7.5%+11.0%
Q4 2023+23.5%+22.3%+27.6%
Q3 2023-14.6%-14.4%-10.9%
Q2 2023-7.5%-9.4%-11.1%
Q1 2023+2.7%+2.6%+10.4%
Q4 2022+8.9%+1.8%-8.5%
Q3 2022+1.7%-1.1%+4.6%
Q2 2022+8.4%+5.3%+8.4%
Q1 2022+6.7%+0.6%+2.9%
Q4 2021-12.1%-14.8%-31.9%
Q3 2021+28.2%+27.5%+20.4%
Q2 2021-3.1%-5.3%-10.7%
Q1 2021-1.7%-3.4%+8.5%
Q4 2020+26.9%+26.6%+33.8%
Q3 2020+21.1%+17.6%+37.0%
Q2 2020-3.6%+6.1%+1.0%
Q1 2020-0.6%-4.0%+2.6%
Q4 2019-10.1%-7.5%-46.6%
Q3 2019-19.0%-15.4%-13.4%
Q2 2019+7.3%+6.1%+5.0%
Q1 2019-15.3%-13.8%-16.2%
Q4 2018+6.4%+6.3%+7.2%
Q3 2018+7.6%+7.0%+12.9%
Q2 2018-18.2%-17.0%-22.8%
Q1 2018+0.8%+3.4%-6.9%
Q4 2017+30.4%+32.5%+28.3%
Q3 2017-11.7%-9.1%-22.3%
Q2 2017-5.3%-6.2%-7.5%
Q1 2017-4.9%-3.1%-3.9%
Q4 2016+2.3%+7.7%+12.2%
Q3 2016+10.9%+16.3%+5.7%
Q2 2016-2.4%-4.3%-10.6%
Q1 2016-6.6%
Q4 2015+27.8%
Q3 2015-18.9%
Q2 2015-7.6%
Q1 2015+5.6%
Q4 2014+3.7%
Q3 2014-1.8%
Q2 2014+3.1%
Q1 2014+2.8%
Q4 2013-11.0%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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