CRTO - Earnings call transcript Q1 2019

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Operator

Good morning, and welcome to the Criteo First Quarter 2019 Conference Call. [Operator Instructions]. Please note this event is being recorded. I would like to now turn the conference over to Edouard Lassalle, Vice President of Investor Relations. Please go ahead.

Edouard Lassalle

you. Thank welcome Quarter and Earnings Criteo's to morning, XXXX First Call. Good CEO, today and are us JB Co-Founder With and Rudelle; Fouilland. CFO, Benoit

During and demand services, or forward-looking make investment and financial metrics, management and anticipated may anticipated strategies, call, market plans, business products projected operating results other statements. future anticipated opportunities expansion include or this These will forward-looking statements.

the results differ are subject implied forward-looking and any timing results obligation except and by herein, uncertainties materially or to assumptions. may as to contained events the risks, statements law. timing various such by certain always, statements. or not As predicted We update from of undertake required statements Actual such forward-looking do any

performance. Definition the Today, our published comparable also measures reported of such most to were non-GAAP of provided we'll should in earnings In considered addition, as future results discuss performance. and be financial measures directly the release not the metrics GAAP reconciliations today. an of earlier indication

otherwise comparisons unless prior all growth the I'll With period in over JB. the are call now made against that, to stated, course year. the the this call same Finally, of turn in

Jean-Baptiste Rudelle

morning, you, Thank good Ed, everyone. and

good where priorities. hand, see On we Looking we after several on a picture. are mixed we're at QX, making progress key one

new fast. Our solutions growing are

we model. we We above and our grew the clients and shipping exceeded solutions. are strategic good direction important feedback for our product our about expectations I top line feel high and are from In guidance, positive getting significantly features, financial profitability. testing our of QX, our Overall, new end

in the modest going are growth we In complete way. new relative a them longer take it's our are to encouraging ready client we some very our line fix, a for. particular, few full of yet not building our than also a sell of we that yielding scalable performance benefit despite achieve too new from have truly to are to the transformation, working acceleration execution time to believe to To hand, minute, to way our bit to realize expected solutions, the I in the I get we other more before On on that it. still that and a top issues hard take acknowledge our are capabilities we transformation potential. going is more

we are While lead way us for we modest paving take to in have outlook. a to issues acceleration our XXXX the XXXX, the approach growth more identified

outlook we XXXX. ex of growth a slow this result, the growth, expect revenue Despite in be As we are to year. X% to our TAC maintaining profitability now in range flat margin the for

So QX and are areas. suite to sell modest we more next? building. view with well-identified for our with successfully this are X our are First, doing relates further big are at it to mean why outlook Starting a in what It we expertise today: our did requires execution where in third, it? And going perform taking to delayed scale product we why more about Second, how like I'd XXXX. ability questions One, we in and we does X address for XXXX? cautious in what mind,

management significantly ready of This app-install our While products. in is mid-market demand-generation web yet. we're further the to terms pitch, order go-to-market sales to as we on and organization sales retargeting our need larger even and solutions onboarding and our shipping to upper-funnel evolve anticipated. new the areas, not X features faster. those grow the primarily campaign time, programs are than In relates Two, what we compared client for process gap in to

fully will QX as realize programs clients new driving at to take end will to of new ready be large scale. that additions our be time the numbers in at attract onboarding While the client in technology for we effective small until demand-generation planned, XXXX self-service on

how Given XXXX. two expectation for our those combined clients small original of a were account to mid-market contribution new plans, prior and to factors for our sales products material significant the gap compared

take strongly be fixed. time reaccelerate, believe to will business issues see can X I While the those more it

them? So what are both we processes In go-to-market make hard we to areas, working more doing to address our scalable. are

the XXXX. onboarding that adjusting our of upper-funnel on we for our to three, bringing sales accelerate One, parallel, single level organization. to new in In results while we and scale First, we our adjust market our competitive start The focus sales board; teams. app-install is In specialists training a intent people and to specialists management. understood are our it needed also sales processes create the Overall, effectively the our new more organization; hiring X, May client-facing very are doubling X we experts in those product, on go-to-market, two, sales unifying to sales we capabilities early time adapting for a products. to driving tangible all specific we and up sales on right retrospect, takes urgency are initiatives: underestimated growth focusing and to Effective down of under operations initiatives by we talent. hire expect

include: to mid-market also through third-party e-commerce programs, solutions executive, on lead-gen own digital programs one, channels; other with their selling demand-generation our respect available integrating we platforms; senior partners three, our single grouping media to to platform increasing also our effective make social directly X. are a our May under and These channels. sales our on e-commerce with and various Second, initiatives initiatives solutions clients two,

of XXXX. implementation significant momentum to half the initiatives drive start in will in additions expect We client of mid-market first those the

We achievements. on Turning now to progress QX several made tangible priorities. our

include retargeting our QX ex shows total. revenue to compared in right to basis solutions This direction. grew solutions, TAC outside of First, X% map our X% is the a of This year. road in on of new momentum all XX% moving product new last which that

overall numbers I expected. few at our will to a quarters the experience originally we the before of level engine for reasons growth we However, new mentioned contributes delay this before, a

components: of awareness generate brand API As campaigns a an solutions platform address that two main side, the down funnel all to marketing the one self-service, advertising platform includes a programs managed sales. conversion to entire reminder, from the way to Criteo and On comprised

includes increased managed marketing On the XX%. product In platform a a other advertising for drove XXX%. our retail respect by to for performance brand we XX% in QX. revenues solutions, our media this improved also of our to Finding ex power our product business an prospects key a from self-service, With acquisition API side, performance retailers. and ask TAC new is and up clients, grew apps, customer revenue

significantly in While apps higher in this were solid, is QX. growth expecting we

media with our appointed Martin, retail new to is providing themselves retail strong important where for ambition. our industry CEO analytics of as the over contribution also and that Art.com, to have having this to operational for retailers is algorithmics. a leader, Manager media a are progress. QX apps, accelerate in included To we bring turn plan our we good to the product for General tool, clients. performance a the a map dials rich Geoffroy putting execution, wealth we're the on our for These In clients before, but with to bidding important progress level. particular, combined said, despite our March, media. become campaigns our our how next retail whole yet combined, make an triple and discussed promising is in transparency features, par former commitment offering This product pieces more road early, shipped not grew media On As expertise technology new for a SaaS our our Geoffroy control also highlights performing. in growth point. space, discipline. clients all of new test business, transactional app-install, of all This next improvements features and and of full revenue to the appointment bring still self-service with marketing including scoring and XX% retail These their suite In technology digits. financial for generation client to platform. made drove we allow business their background optimization senior for of the brings to to expected tools, publisher user we operations. our on campaign our address place XX% QX, shipments In momentum continued in significant shipping several retail This once again year. large

of on Still that very until small are our as end X,XXX self-repair We a launch, the will month, and reaccelerate We tools, related clients can so the were pace And also first the about their to advertising to of in also and scenarios. managed module XXXX pleased more discussed significant U.S. planned. to early it module broken clients multiple take self-service XX% new much new anticipate programs said, our U.K.. the is marketing by tested This new this to mode. advertisers ago created campaigns client most QX, for in platform, implement design self-service encouraging track signal. demand-generation earlier, mode, This introduced and campaigns fully the our registration consideration we and self-service a introduced of is the with talking net audiences the ship in over medium entirely In confirm covering month as additions. self-service I'm in full the easily. support we ability onboarding module we and

Now moving to the supply side.

where Bidder with parallel, XX% mostly I of working driven the price always apps mobile QX. previous strengths for Criteo's to the progress. are quarter. one by our has recognized in to continues industry. we XXX now bidder technology, of an growth Our bid am is Direct first-price by pleased app developers optimal increase critically important that the good our of ability In now The compared each improved further impression our performance the to distinctive been make

employee slow direction front, the in down priorities. good talent across strategic the attrition Criteo's QX, people a This with on improved unwanted illustrates we trend alignment Finally, of our saw organization. morale and and

to already browser. months in earning identity. a had X Before few about Chrome cookies a words our intention to in in addressed last ago, make topic we changes speculated discussed calls. potential media the happened this closing, nothing say new to outlet I'd the what Google's about third-party industry. We user compared Recently, to And like

the negative on speculations worth put reiterate our our pressure it's position. I these have price, given to However, stock feel

our recognize market antitrust we in restrict other the ability that we the scrutiny profitability making is intense Chrome's browser they year growth, to digital transition where margin In from significant we it the globally, next? closing, we of maintain authorities despite slower faces Yet, Criteo. would compete. map, position players the for another are for advantage is year. progress Despite dominant going take outlook of Google on unlikely Given XXXX to road believe our

our in year, will higher are to this confident our to are turn profitability With believe of on the our strategic now drive While to next the XXX% and will that, support deleverage we actions direction call a few execution like investments focused points we year. over Benoit. lead future. margin to a taking We're I'd

Benoit Fouilland

good everyone and my JB, from morning you, Thank side. to

the XX%, margin walk As QX compared to you TAC margin Revenue $XXX we negatively headwinds. Compared to usual, immaterial. million X% business the share $XX at through drove our growth million. QX our at declined line key that at to currency $XXX I first lower in saw our solutions and Revenue increased ex X.X level the a performance some for our with currency adopting the to compared assumptions, will peaks to as clients XXXX. ex revenue to new fiscal constant XXXX. impacted year Revenue by our points growth guidance or X% currency in TAC, monitor quarter in XXXX. TAC guidance metric of despite normalize continued for constant the to basis client as our changes grew Existing our short-term and points quarter XX would Changes were half in well business, million. FX expectation ex new

drivers for maintaining to of by grew the to the XX% number over for Looking We at growth X% solutions XX,XXX, combined. retention while at quarter. our close main clients all

client Same was self-registration on a clients our onboarding addition this ex we the down client higher-value mid-market until As we resulted launch our increased in revenue in module, X%. lower less than TAC quarter. focus

existing revenue our with X%, reflects clients. a truly demonstrating the on which spend basis, adoption same-client by growing of revenue However, us, solution our increased clients' new

in and driven adopting Turning clients the This the offset complement by Americas, was digital new offset our to performance. as growing million. compared ex growth the of Other and ended a existing provision well revenue the with growth related operating introduced to increase third-party our price our retail accelerated grew period. in to X% as X of APAC, implementation. sale of The graph. ex well operating Italy decreased the mid-market over in due the useful increased continued was X% number growth life as despite expenses GDPR and XX% performance driven mid-market, data period. increase gains to the improving grew as solution of currency, lower composition in TAC tax On our shopper GAAP by partly prior This constant revenue headwind flat business, consideration year in as TAC award in short-term revenue expenses new part strong to $XXX at OpEx, slower EMEA Shifting of business decreased Korea, at lower results represented our France, our accelerated for lower currency, expense Japan expenses. media several good X% solutions, on constant India years. expenses And the partly X% headcount servers by were large healthy offset revenue in ex higher X% quarter fully Headcount-related non-GAAP TAC to In U.S. including XX%, year-over-year. over the clients employees, basis, constant by for revenue and by X depreciation offset Southeast Brazilian we in in We Asia. a from a driven of by of X% in down with equity points U.S. from and performance currency the was year-over-year. decommissioned new mid-market, regional by expenses stock X,XXX cost of growing cost to at improvement the to X GAAP in servers an business. solid of expenses extended in business

employees. R&D over employees, increased to account comprising increase headcount disposal increase flat function: business grew G&A by line in expenses shy Looking X% as at gain R&D of were engineers. expenses higher and just in than travel accounting the headcount Sales slightly product actually year XXX. last increase X%, for to well to advisory items, over HookLogic sales as a And by X% driven a exceptional fees and non-GAAP Adjusting X% one-time and expenses in Quota-carrying XXX expenses the expenses over and increased G&A X%, despite these decreased X% this the X,XXX, headcount operations XXX in expected. X%. tax with namely on to year, strategists,

expenses than across non-GAAP functions originally expect to expected. now we modestly XXXX, For grow more all

last EBITDA at On guidance XX.X% $XX currency. X% basis was TAC, the side, adjusted XX% as XXX hiring from HookLogic million, margin was EBITDA points. we business -- sale end ex the significantly our EBITDA the adjusted of above high constant to drove adjusted profitability of and the our behind below that to at time revenue XXXX were proceeds unusually that expenses year, travel our QX down This high of QX In behind plans time. the at and lower due

adjusted with for for stock price. related due largely effective rates to XXX the only to our line a margin tax useful business, the the change Equity hedging to the expense compensation items decreased effective down rate XX%, driven mainly was amortization stock rate by Financial to XX% negative in in XX%, points. QX Just rate change XX%, travel XXXX, increased adjusting XX% of of life EBITDA in impact the in XXXX. due tax was of X the the basis servers lower of positions. projected compares years. XX% and from price. sale expenses expense our for And award adjusted X our lower tax discrete to in decreased Depreciation forex This our

taxes our of into $XX decrease to from operation representing and result, Net diluted capital at $XX lower income expense, income higher to was partially basis, this, million, XX%. in a strong provision non-GAAP by driven $X.XX. flow On X% tax expense. decreased X% driven XX% cash unfavorable to from increased transformation decreased a Despite to lower revenue. of EBITDA Cash income working flat per operating the tax decreased million, million, changes by offset a operations increased in EBITDA, flow adjusted the $XX X% was share for As the CapEx financial earnings XX%. XX% by adjusted paid. and

to cash XX% flow free million, decreased reaching result, a adjusted XX% EBITDA. $XX As of

provide execute cash Finally, year the million. XXXX. equivalents two in The our quarter our million capital guidance to the increased today, second share to increase flexibility fiscal will April and we now to With future. $XX in allocation, the and as I our forward-looking following statements are new XXXX. $XXX XX, in requesting cash authorization at buybacks quarter expectation reflect meeting of for regards weeks to a shareholder our

slow and in to a experiencing are we delays taking we outlook. the TAC are the our more Given execution, quarterly full and ex in year start QX approach revenue cautious

QX, revenue million constant a for minus currency TAC between we million to expect reported As $XXX and basis. $XXX ex result, X% implies a on X%. growth of This

We year-over-year $X reported changes to the basis million or forex points headwind about to growth. of XXX a be expect

the indicated we plus to impact this guidance, now approximately Compared midpoint. prior to are XXXX, expect changes constant of currency. to at ex TAC year grow TAC For our million Using million. XXXX, of is have or reported of XXX to and growth. full assumptions, points growth points revenue Forex means at ex X% reduction $XXX about of this X% to expected the basis about X between a as a negative $XX earlier, of JB million current $XXX our revenue forex Compared

year points. quarter, and $XX savings million. items expect -- margin temporary approximately the million this QX approximately a reported prior exceptional translates and Adjusted On into XXXX the XXX dilution side, profitability adjusted basis of for for of we between EBITDA $XX in adjusted million $X

on we an drive We, effective approximately top our next we adequate goals to of demonstrating focus XX% softer our an revenue will ex maintain increase adjusted increase in on our profitability EBITDA XXXX deliver margin management of the to given therefore, commitment cost outlook, ensure expectation of and take profitability. XXXX, margin year. profitability in XXXX, our action line to For our for TAC

questions. confidence assumptions in FX now reiterate our of and In our your want financial clear in our the direction that, supporting strategy usual, As are closing, guidance our the quarter included and for earnings our strength release. to I second the we'll year of fiscal With take model. in

Operator

Instructions]. [Operator

with first The Nollen from today Tim question comes Macquarie.

Timothy Nollen

do JB, I'd you're they help changes. potential be much going them in that I follow-up, that make then, your might easy you at anybody heard say. haven't of changes those business please. comments or any be versus second cookies GDPR would comments up Any on how know called point any would rather But on business? you be on on could that And to like any you Relatedly, on limited retargeting whether comment for Google creating into your Facebook, as difficult? GDPR I Chrome to say I pick great. what else have to just us impacts you another year. adapt of if this from half wonder cumulative this surprisingly, risk can the any a your out is that on reliant could using that. understand to,

Jean-Baptiste Rudelle

much, Tim. Thank you very

he earning of which CEO Thank our Google know think I you if know I very don't is confirming because about interesting we there let to a Okay, me the was back to -- that. of you've heard, know a investors And for what about heard you want Chrome comment, from this. -- was side. more I our lot yesterday. come had asking made

be very two, most the advertising any business, on ecosystem. one, where for way are minimize of a and Chrome about changes changes healthy insisted the that, consistent very it's including on important them that in exchange. to it's to exchange some going to for and part this very we ecosystem they're And the Google extremely impact make buyers -- the is the was this that done is maintain in important the he that how revenue clear that those on Obviously, a source biggest one of key a publishers. will future identity; manage So

Google this That not working are but yes, adverse basic we And this those changes very And ourselves. is working consistent we there So the what changes, we assumption heard hand-in-hand ecosystem. be is -- some are to implement changes. will be with those to will this the with.

of a will Google As a Google way good think a a question, there and ago handled GDPR, also concern I look year how segue second ecosystem. it matter will about of your how the to is destroy fact, lot a it's to good handle was GDPR kind because of

very I GDPR Facebook, has a on of this way, also spirit the think sure GDPR, which happened. comes When handling in impact us. where but have very on they would are the the is specific and implemented Google thought it in making calm in been from spirit very issues facing of exactly minimum think the is which I ecosystem, very different and they what to law, it

what As that is on of we than they personal know, the different is manipulating. core you have data complete a are users, fact information Facebook which class value

-- all nonpersonal are managing hashed Everything compatible is is from from we which the the start, completely and were why from only is GDPR. get-go, starts, the with We the anonymized, information. Criteo

implemented. different personal they face information much data. like of handle the information. As when they compliant a whole personal before is scrutiny public specific fact, why way on And it's you with Well, were the a matter story. have GDPR Facebook, this we higher the law sensitivity their of way the was is Obviously,

Timothy Nollen

of your any use around tracking cookies the color Any of methodology versus other Okay. users?

Jean-Baptiste Rudelle

Absolutely. Yes.

the been Safari we cookie months impacted the you ways We've we we lesson. of our -- XX a to lot know, a learned technology ago. to As way by resources implement get in And browser putting cookie unique were new restriction And Criteo in user graph full-fledged this. X.X very of have large not with we now graph this today a in very billion -- pleased graph. Criteo the that part is to are And dependent. a user

that we've which we is Criteo. dependency some is investment on for are we compared X years very This reducing this short, as especially restriction cookies, a investment something haven't a other believe done ago compared And to in user cookies. effort. on advantage our significantly in competitive are So Safari, long-term browsers, very this to graph done who players unique is implementing creating our independent

probably it's compared ITP see ourselves also than been more invested And because more. that a others others in probably much So position in to this we good we space. we've on much impacted today,

Operator

The next question Kelley Nomura. comes with from Mark

Mark Kelley

thing First question set is headcount just about you're offer And second example you're you third-parties? sales is, on to planning, the talking helpful a P&L? be sales selling to And focused or What's can you would talk the looking skill the is through in headcount that It particular the there does geography about. through shift the how for that an you're specialists for? global? flow maybe the is it and

Jean-Baptiste Rudelle

Sure.

set, of different. very versus whole in apps equivalence of are different and look the I world. metrics I at app-first it's take, would clients clients no the web, concept look terms instance, at So the This world. skill the more for world web install app in The traditional how if web-centric has say

So you is different. say, The way install. pipeline integration different. do The customer have measure also per this idea the of you you whole, way the is different. company The I the would performance is technical of cost

a different. by requires ecosystem, also are The is this question clients significantly So different. pitch. different The asked although,

very some specific it skills. So requires

are that really clients on clients are have but generalists address are salespeople in capable our been app-first mix today, specialized sales sell both, that specialists to hard, a both and on we it's some rely that to really app. trained So of the and web versus on of

of We have types clients. kind X of

really clients apps. that that web of primarily and purely that selling an products their is are expanded were all And purely that have We and have through are different. clients into app-first this very app;

have extreme the why that are today behind terms mix of the of EMEA equal. all of in bulk is it's and which where this in a But all where advanced It is is apps, we're Europe is is have bit resources. most the is eventually. catch terms we and APAC right in up of not still in in and penetration. regions And single-digit. our this where our some I this we XX% app X. app the mean U.S. the will absolutely India, developing at the you're app business So are investing pretty pace low not is of market. market countries same like

new develop, we reseller developing resell party, to this very capable so having to third Regarding we're call Criteo. sales a parties exciting program, area third channel, -- for us what

Before possible we because a not could it our platform, value had platform. was create top really not of was much self-service there on they

build program. we more have certification that on Now value-added own is platform, self-service and we're developing top. they a more can services What their

we this as And resellers. have platform. you an us. services When a top Facebook been still parties cannot the very third we of of self-service the This ours. paste not third-party can new this, business, for and ecosystem not on can those copy service I we building same said the it have on So possible. is be And ecosystem doing you platforms. certified own on Criteo just whole And before, was their doing platform, are platform, for what that. we really now and do really have and they managed But parties have created a we wheel, have reinvented on Google have whole a third of

So we new have develop this for requires sales Those that building. to currently expertise. indirect skills we us are

Operator

The Sarah from next with Simon Berenberg. question comes

Sarah Simon

I questions. have got three

you expected, came you being talked had lower in one, growth about but you revenue First than above. app-related

the just us about And a just should few faster talked you you in that Can of interested improving. you pace I'm Which kind growth? where return think give to words expected? what was structure that. Benoit, was around where Can areas what talk grew today question the have for the terms than you the Secondly, the so hiring? more it on the offset attrition are than So you of accelerating of and then flexibility are you on of capital the cash given terms increased for third company balance, in for buyback. right is

Jean-Baptiste Rudelle

I few do to had year-on-year for hoping a QX. pretty can We app say revenue. were aggressive words XX% We on growth. a goal the

a our quite clearly the high. put had double-digit gap up a solid we short it's but really with big of It's And still growth, bar So expectations. ended with very XX%. we

yes, so were we attrition, Regarding again...

Sarah Simon

faster guidance, app was what came what short than better in grew so fell that on JB, it than better? was revenue, if you factor you offsetting did that still because the

Jean-Baptiste Rudelle

our our web, the web components so app look than expected. short web. two still we that was speaking, numbers, And you and it better if is It and broadly if -- the web app was means make of business, at

Benoit Fouilland

where than good just Maybe, we web we our the on slightly mid-market numbers guidance, we've our strength but did we client in the these clients be much within new are where new performance business, specific, so saw existing to consideration existing greater in rebound we've if a seen into -- what of even seeing small a an more mid-market performance outside are from Sarah, see we And not the product seen good app. anticipated that it's in standpoint, there. growth had in

Jean-Baptiste Rudelle

Excellent. Thank you.

we sure some much regarding So regarding significant make it's quantity. QX. progress so as made yes, pretty question, want your quality we second hit attrition, for goals hiring We as and our much to

So are focusing more we quality. on and more

expertise, we mentioned, where we especially gaps. make in acquire have areas to want sure I As the we right

the where hiring is right team now. So is this focusing

Benoit Fouilland

part of shares same for buying buy last buyback, of the as potential seen an that's the towards in that earning satisfying to on for well we proxy, consolidation to X so asked with use blend for the had objective we that the authorization, So seek employees respect allocation the you've which our flexibility, within allows obligation plan shares for as equity would objectives more calls authorization, we've capital purposes. indicated sake of us to back and

program buyback year. a initiated we've last clearly, So

You've one. on seen executed first that we this

do to the we cash of monitor growth balance got significant close to on from of obviously both buyback opportunity on think through to to return we've continued very after obtained fund further authorization and the buyback. $XXX will I the With shareholders. shareholders sheet, million business closely having the provide think this for flexibility I

Operator

with The comes next from question Anmuth Doug JPMorgan.

Douglas Anmuth

small that it factors to some I able media about on to well? trying kind are not on just retailers going the directly back as the partner can considering control you an just on to area. may do that business all rather retail outlook revised emerging or is you it's ask, willingness this related is But you more know a based themselves? internal to wanted the I to of in business, be talk related then execution trying just And outlook, base than off understand, externally issues saying second

Jean-Baptiste Rudelle

we're -- aware already of into external forecast. they our mean, our into account I speaking, of were industry. previous obviously factors Broadly in the taken

is forecast had the And factors. done revisit this. really So on revised why mostly internal to this is we

didn't we Benoit, during to a of full you there have picture we before area where to in discussed of As do. that add this? had the the was terms do on call, confirmation number something want

Benoit Fouilland

were going accounted looks hopeful that million in we it are our tax are of only now that the that I impacted we passed delays. has not cost France the the The was Parliament introduced targeted even be that baked our our think we fully guidance, it's impacted $X On execution forecast digital the together to was not in driven first Europe. are France, clearly the been digital in we time newly -- will to that first it of tax the factor we around internal of by sales. France. Unfortunately, at put that step for total interim in also for extent in and by that Italy in the being like and be

Jean-Baptiste Rudelle

understand, with So for to your well just regarding partners? I want we Doug? retail media, the if question, question, this Is understand are working me

Douglas Anmuth

to their as and as opposed willingness Meaning directly, just retailers more... to kind with trying you to acting going publishers use of partner

Jean-Baptiste Rudelle

we own This totally own with of monetization audience transactional in more more enjoying is introduced is they selling hands row team, this with a pure their users the provider we the their What is quarter second really and why that is very take SaaS us. fine see which want the a as their technology to ago we are year in a momentum. kind of third It's are high that model small from But starting developing consistent the we're any demand, hands. retailers, sales into also been exchange from own a it coming own shows specially that very triple-digit their where a And own big trend still, taking ad coming very a team, base. either can so for having from they their parties. we've agnostic things type plug growth, for we their an and server of Sure. inventory,

as and we technology really a solution, is more selling it's the and this are this more exciting going. so way And

Operator

Tom question next Champion from comes Cowen. The with

Thomas Champion

was a more could I'm looking was it bit customer just the flat the to quarter-over-quarter just of the client same some time. looks looks like you of if it little core business. I'm And me expand spend. for wondering down from at growth, of and off and on like the ITP it year. health It the a first last We're quite from issues ways implementation

then behind of how just get guide? these of you is, understand And help question full the both secondly, target? can What's the confidence in philosophy full in the Just year level achievability moving your do right direction? of us the year you

Jean-Baptiste Rudelle

back take guidance. question first Benoit the perhaps part the on So let of come the and I'll

as as slightly core our mean, or discussed business in historical So previously, expected better. grew even I we so-called business QX,

the As in is more of This user you want in to -- in browser we our on and spending time are to are the there shift apps helping sure And we from why browser, make we desktop. industry especially time know, attention clients these less people conditions. is an app.

our control, Some transition they than are of moving quickly this know clients on This we app. fully is desktop to make browser putting transition aggressive, want in even this how and the where growth apps. in very our they don't This from why their targets is to are I think web not of the about growth this more. from year-on-year And pie to but high. incremental whole the We XX% level, for And mitigate right with this want we is the app, the grow set user only area can bar not momentum. of together. value change own and the future this move we ambitious with we business the habits the quickly in is QX, ad from faster can we we're term because something others happy to really how

this the really strategy. So is

sure in And our in putting efficiency have some we so business. we're we regarding plan you have our the frictions, term, with make full we've core sometimes in channels short all to QX. as But want together, the seen

Benoit Fouilland

we to I the well the are we've as as part well scale guide, at to full bid in generate ability second change respect self-serve question for course, -- offering the execution as to channel issue guidance the on year with reflected the reflected sell are of of philosophy are your delays guidance, our consider what realistic, our we've in the the to I philosophy, for Now year, year demand effectively our identified mean, with So our that full balanced our think for around respect the broader that ability new and achievable? market.

really -- those these So those the just $XX mid remind two explained the full and the which are to reflected, mid year is for view change, million the at in are explanation that's look a you you, change and the of factors. if the guidance, by on

Assuming start from that issues, tangible working are yielding action on resolve we which only two the we of plan early result our these effect out XXXX. to

Operator

Dan Salmon with next BMO question Our from Capital Markets. comes

Daniel Salmon

as a specifically, on the could generated then Safari here was maybe just in follow-up out I'm question, the retail and the I'll if from one call for earlier You've to TAC if of wondering Chrome out can about that Firefox And on revenue you Google ex the JB, CEO past. do Chrome on browser? just well. sized yesterday what business. you media ask, for percentage Chrome follow-up your and the size that the

us awareness Just than prior is maybe level -- publishers or is question, so a and trying sort Just even it then competition see the Walmart there, you're really Quotient, to you that is different sometimes the sell-side operated retailers take your and like it And view I that for landscape. more for ecosystem, it advertisers, the in for or it other Triad just, hear your Retail interact like how love businesses up is with would the piece of publisher to growing for players it themselves and platforms little you as as Media, together business, views with for the often a like that of doing it are when in bit difficult high-level higher a is Google how each could it eBay on market to is and it's is community? large build owned themselves? general Amazon sort of

Jean-Baptiste Rudelle

Sure.

So this on is Chrome, very simple.

which is what something all happy mobile to on. I to domains, including ecosystem. something more believe could world robust I on is change today what Chrome with think domain, are And cookie to can believe in things forward apps, the will let will be much said, It very more a which the friction. it identity specific on would to better today is will in are we a that industry parties Google that implement the the the the a It's looking new very limitations cross have lot like what the identity is and one business have We browser. similar if of mobile we is we the the is which our apps. where And we and of identity as And that I Apple, as limited for in cookie to major do we has industry. number app who's cross-domain in think Chrome us limitation more creates whole on robust have be that working related to whole for this happy of know, with cookies in be the hopefully Google have app very roughly than of. aware what Especially iOS going this with, robust of will on. that you IDFA do And more even Chrome XX% industry that I with it's, be more ecosystem the advertising of -- favor we that seems ID, way now make in Chrome

the have the So to bottom we doing which want frustrating and brand on compared understand other are it retail Amazon large a share our would retailers. line. dollars understand other the share a that say is, the Today, own well, media well market, bigger this into going I share impact dollars. They what media, retail retailers very is of say, fair is our which part if than it their probably to strategic brand is Amazon? e-commerce, strategic for We absorbing has question of of something the bit is the I

Now capabilities of R&D the don't those Amazon. retailers, they same have obviously

in-house they sense make the to cannot ROI build stack, them whole for of terms So in wouldn't so. do

in And So of with that par they to is or terms have better one you there performs Amazon. tech best-in-class it's them company in capable vendor your even can look doing something with fair brand on Amazon. as need world well of Because than Criteo. for basically, can that share this, they the stack provide if compete a so you want dollars,

this down position unique and this that why win. because to it work. working And really in Like more hard just believer why way we We other have markets. in we're than are why are this why make hired to This space. is General emerging really, for This believe advanced this we are Manager any players And a comes we big it senior a very in we business to very investing on is is heavily. we is exciting. execution, a it's this always, are

Daniel Salmon

JB. of your -- on can I clarify the to... with or XX% Great, can Okay. that Chrome X-X just business XX%, browser, X-X? If want follow-up Just

Jean-Baptiste Rudelle

X-X.

Benoit Fouilland

X-X.

Jean-Baptiste Rudelle

browser the X-X. of market, XX% it's our I XX% mean, as of own business. you know, is Chrome X-X, and

Daniel Salmon

the retargeting can core business And or that's clarify? total Okay. just I revenue if

Jean-Baptiste Rudelle

Total business.

Benoit Fouilland

pretty Yes, much. then. total much revenue Pretty

Edouard Lassalle

like This any have. available your to The everyone. today's may the concludes questions you, for rest call, thank we'd and enjoy IR everyone, is thank attending. and follow-up Well, everyone for day. you Goodbye, of team

Jean-Baptiste Rudelle

you. Thank

Benoit Fouilland

you. Thank

Operator

now concluded. for presentation. is attending The conference you today's Thank

may disconnect. You now

Criteo (CRTO) 30 Apr 192019 Q1 Earnings call transcript