NASDAQ$CRTO

CRITEO SA-SPON ADR · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a strong third quarter marked by organic growth acceleration and market share gains in Retail Media.

Criteo reported a revenue of $469 million, a gross profit of $205 million, and a Contribution ex-TAC of $245 million. Net income for the quarter was $7 million, with a diluted EPS of $0.12. Adjusted EBITDA stood at $68 million, resulting in an adjusted diluted EPS of $0.71.

  • Activated media spend increased by 32% year-over-year at constant currency, reaching $1.0 billion in Q3.
  • Retail Media Contribution ex-TAC grew 29% year-over-year at constant currency, with a same-retailer Contribution ex-TAC retention rate of 123%.
  • Expanded platform adoption to 2,500 brands and 220 retailers, including Saks, DocMorris, and Mercatus.
  • Launched Commerce Max, a self-service DSP, into general availability.

Headline financials

Total Revenue

$469M

Previous: $447M+5.0%
EPS (adj)

$0.71

Previous: $0.53+34.0%
Capital Expenditures

-$15.9M

No prior period
Free Cash Flow

$6.93M

Previous: $6.58M+5.3%
Net Income

$6.93M

Previous: $6.58M+5.3%
Operating Income

$11.4M

Previous: $4.48M+155.3%
Gross Profit

$205M

Previous: $180M+14.2%
Cash & Equivalents

$195M

Previous: $307M-36.6%
Total Assets

$2.14B

Previous: $2.12B+0.9%
Stock-Based Comp

$24M

Previous: $21.1M+13.9%

Revenue & EPS history

CRITEO · Revenue · Quarterly

$469M

Q3 2023+5%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

CRITEO · $49.8M total across 1 segment · Q3 2023

  • Retail Media
    $49.8M+21.0%

Forward guidance

Criteo provided forward-looking statements reflecting expectations as of November 2, 2023, amidst an uncertain macro-economic and geopolitical backdrop.

Tailwinds

  • Contribution ex-TAC between $296 million and $302 million for Q4 2023.
  • Year-over-year growth at constant-currency of +5% to +7% for Q4 2023.
  • Adjusted EBITDA between $109 million and $115 million for Q4 2023.
  • +9% to +10% growth in Contribution ex-TAC at constant currency for fiscal year 2023.
  • Adjusted EBITDA margin of approximately 27% to 28% of Contribution ex-TAC for fiscal year 2023.

Headwinds

  • Guidance assumes specific exchange rates for main currencies impacting the business.
  • Guidance assumes that no additional acquisitions are completed during the fourth quarter of 2023 or the fiscal year ended December 31, 2023.
  • Reconciliations of Contribution ex-TAC, Adjusted EBITDA and Adjusted EBITDA margin guidance to the closest corresponding U.S. GAAP measures are not available without unreasonable efforts on a forward-looking basis.
  • Variability of charges could potentially have a significant impact on future U.S. GAAP financial results.
  • Macro-economic conditions including inflation and rising interest rates in the U.S. have impacted 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 Q3 2023

Historical avgQ3 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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