CRTO - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Criteo Second Quarter 2019 Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After the prepared remarks, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

now Investor conference Relations. to Lassalle, to like of Head would turn over the Edouard I Please ahead, go sir.

Edouard Lassalle

today CEO, Thank you, Fouilland. XXXX us quarter to Criteo's Co-Founder Keith. Good morning, earnings and call. CFO, Rudelle; and JB welcome second are Benoit and With

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

statements to subject uncertainties assumptions. such risks, always, As are and various

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

not as future considered reported In an should addition, performance. results of indication be

published of were Today, the and GAAP to such also non-GAAP we'll in available discuss provided performance. the today, financial Definitions of directly metrics our release on our the earlier comparable measures which website. most is reconciliations measures earnings

growth stated, same of the course call unless prior this otherwise the in against comparisons in made are the year. period Finally, all

With now to over JB. that, turn I the call

JB Rudelle

and everyone. good Ed, you, Thank morning,

Second, three third, XX call, to today’s like QX initiatives; topics: our months. strategic discuss I’d our first, performance; priorities On for next our and main the

plans. EBITDA. last our QX ex-TAC and years, on the Revenue had with quarter. our our QX, several the to guidance We that again performance. exceeded execute in two both Starting I’m market the positive we adjusted developments aware for this ability once questioned In

feel and important strategy. time, our transformation we takes While making about progress are good

higher clients, XXXX. their with this client productivity. area. improvements net our This highest our mid-market are XXX quarterly level our net turned additions highlights, much QX ambitions QX positive long-term the Nevertheless, in in sales reflects since and, reached new Among

client-acquisition this our significantly we ramp XXXX. channel additions in the programs new up coming client As expect demand-generation net to over quarters, accelerate

retargeting exciting ago. solutions, all who XX% to grew outside new great up year ex-TAC for a include have XX% on is all total, which revenue of working This basis to milestone solutions them. teams, a develop been a so hard of QX, In our reward our X% from

new our our graph valuable billion Criteo user X of our of assets: one most IDs. solutions All leverage

graph the in huge way. As remains recall, our we persistent shopping We and scenarios highly this a flexible there granular may to the years you environments. unique ability with in sustain only believe IDs user to attractive with highly This links multiple robust, solutions potential scratched a develop data provides surface user devices marketing and have come. to growth the strong new across

are our QX, Within has compared the prior see new new Retail produce Media already solutions, Retail to to now a growth ex-TAC north of with quarters, leadership back enjoyed positive we XX% on started to Media for that results. business pleased to revenue reacceleration In basis.

product happening for are environment. Sponsored these fast-changing performance is and solution. Display are a into platform branding meet Retail clients reacceleration unifying in This requirements, both combines a Products and a more turnkey and To single we former that our Commerce products. asking more

the solution As Commerce from our a Display former is reminder, acquired Storetail.

already transactional-SaaS on The a increasingly this Retail of is in large basis our to change represents pricing by Media also rapidly transparency, model of XX% and an We retailers, inventory. digits triple full market business. over growing both is terms adapted innovative offering This demanding proforma model. and SaaS

grew XX%. business app Our

growing fully share in more and apps with solid continue more usage. to not While of par mobile that again, yet. we don’t on is ambitions are if witnessing the capture still time, user of invest gain Even to retailers a this apps lot our

and medium just eventually a virtually become apps of must-have all mobile we channel a for matter However, before large it’s believe time retailers.

this in strategic a As significantly result, channel. to continue we invest

from In shipping improvements significant the year. of around we new a compared bidding version acquired particular, app to last are product product of install we with QX, Manage our beta as

We all are client-friendly ease different also implementing more across our the integration geos. of protocols the to roll-out product

We version app in clients enhanced materially with to our business tests are in our contribute If fall. those should test this install excited are overall to new satisfactory, more XXXX. the

their our to we as by at slight apps. now the and Looking browser mobile usage, of decline more saw retargeting was a mainly users currency. single-digit to low shift constant driven erosion expected, contraction Web This online business, of time at tend is

make able reverse this factors we trend the us Two to be confident in will midterm.

mobile we as believe some off. towards apps, have shift investment not our we just if to yet discussed, retailers up them will current many expect gears catch at First, even and point, pay

is Second, retargeting the clients the under-penetrated large quite business in our of addressing we largely still the are with lower not yet. mature, torso are tail and market while

to us. a strong will represent are penetrate to come. the segments in significant to These ongoing we our to Thanks very able confident we opportunity greenfield these for self-service, years be commitment

the on our we supply side, relationships. of expanded direct Finally, network publisher further

addition In our now publishers Bidder developers, connected XXX we more web inventory, to QX. directly X,XXX about are Direct the app XX% to using on than in

inventory Further, safe fraud our a prevention, our promoting Group practices best-in-class Accountability quality for clients. the brand our recognizing and environment in Trustworthy certified

implemented some to strategic I the like of initiatives, have would recently. now to turn we

our direct are we’re managing impact have business key forward. no QX on they our to financials, the going way While these

Starting self-service. with

are working are platform. you hard we to aware, implement self-service capabilities our As on

critically believe the on productivity obvious have tools to hands us, clients strongly their that benefits is the and keyboard their ability Beyond agencies. for those our the we important provide

our strategy. giving transparency element control and Overall, marketers key is a of

our that pleased the we investment recognized report Speaking into important of this, platform. Management Forrester making are are on Media a recent Omnichannel we

included In in the the the giant Criteo tech as vendor Google. alongside pure this and Facebook players, player Demand-Side the only market, of survey Platform Forrester large Amazon, category, hybrid

clients feature self-service important in U.K. now that, our our pleased new am milestone I U.S., particularly a reached for share roll-out is the we very Australia, with to live. Recently, of the starting and platform. self-registration

new must-have addition As scale clients. medium indicated small is a self-registration earlier, to and of the further

to features, continued and with creatives other self-service campaign creation good dynamic make also to from progress analytics. ranging We

in XXX price in upcoming entirely the mode. in the coupons XX% up For campaigns audiences our XXX% quarter. encouraging XX% QX, self-service, from managed created clients’ almost self-service example These commerce in next fully were prior of roll-out our very achievements for were And of of are targeting features.

Shifting slowing now past issues my our to you may recall, our address over areas has focus the growth. to key ongoing the transformation, been one as of execution of down year

to to improve One of the talents the had levers in is ensure we right execution place. important

a working the ago, Corporate I and year from the region, CFO APAC since Benoit, The with my new team, of executive General Media Counsel closely were of to People, exception Compared Retail XXXX. with the great a have Communications, leaders I’ve been in outside. with completely and brought whom

lines, feel and App and promoted talents new bring the EMEA we from and drive Americas Web of team strong leaders Operations, and regions, inside. commitment, the I’m the can leadership recently this R&D, For energy with already Criteo. very product to excited success these long-term

taken also to of and management go-to-market have our this improve change strengthen execution. We advantage

this our third and First, roadmap product have we organization are now should focuses customer-centric one more a multi-product three App product believe and allow and Media. the and faster Web, effective that go-to-market. focuses we Store, own on on with recognizing truly and dedicated another new on Retail focuses We now units its iterations resources: company on product go-to-market with specificities,

to single into team a Operation opportunity Platform, our we took product support clients. units operations to to global Marketing team regroup transversal services for our this previously & our dedicated one Second, with fragmented best-in-class

management we a in under of regional single ongoing layers Third, Midmarket share span transformation. confident for and our organization our simplified control. to of increased making. three faster The we bring regions and new additional will And organizations decision are fourth, bringing we each the are our communication immediate benefits best and practices are Large execution. and Customers momentum Overall, leadership maximize this

margin. both reiterate Looking ahead, for guidance growth our we top-line the profitability XXXX and

priorities also pave XX transactional-SaaS. remain identity way profitability in solutions Reinforce leveraging the incremental our our invest next in and focused Awareness management. of to adoption our solutions, on scale our to the on key transition We gains And full manage in app accelerate in add and assets Grow margin key base clients. are, the including Retail and Media future data expense funnel grow effectively our install for which towards to self-service Web Continue executing new Consideration. at months for

and In the despite closing, ability to good direction on about our we deliver our challenges plans. strategic our discussed, we feel

As $XX a I a to of Criteo, future buy-back underline fact, matter our in of confidence announce am to program. share million the pleased new

through to over With who that, color you financials more the Benoit, outlook. call on and walk our provide our turn will I’ll

Benoit Fouilland

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

XXXX. QX quarterly always, I performance and share will fiscal through you our and our year walk guidance for As

monitor to to increased the X% key $XXX up million. at to was our at constant Revenue $XXX ex-TAC, metric Revenue currency X.X% constant million. currency business,

quarter, continued adoption decline especially a the drove despite in this mid-market, of new solutions in business client across base. New our offsetting the our business, our client growth existing-client limited

Using exchange X foreign was of million revenue supporting negative reached million impact $XXX impact. XXXX, the million foreign before points our $X.X currency negative a ex-TAC to assumptions Compared guidance, QX $X or exchange growth.

from client XX% for margin XX%, margin points normalize Revenue by XX its close to We to all basis maintained peaks the declined grew with for of number XX,XXX XXXX. year-over-year to close our to the to at line in combined. solutions clients half ex-TAC the and first to X% in expectations of compared year last retention

decreased decreased revenue same-client less because currency. X% higher Web. currency, decline adoption slightly the new retargeting in softness in at standpoint, despite Revenue at slight the ex-TAC products, client than existing than an continued constant by of driven X% From constant our Same-client less slightly of

constant in plus the in by actually large about currency, On Retail regional at minus to progress performance. ex-TAC X% at and Americas, growing our grew revenue client our mid-market revenue business. of X% continued U.S. driven Media Americas a X% basis, constant revenue, by including softness limited Turning In offset the the the currency, declined

was growth or as the from and EMEA improving constant double mid-market positive, by well This and in as driven solutions, double-digit at anniversary by reaching new The turned growth X% ex-TAC high currency. X in triple-digit points GDPR. QX growth of revenue

currency, X% declined clients constant in APAC, with Japan in double-digit in less And and at mid-market positive growth South-East in ex-TAC business and revenue large Korea. offset slower momentum as Asia continued than

for our revenue our Revenue. increased savings third-party this French expenses in Shifting by amortization Other in centers digital hosting driven expenses. the a data. and X%, were change the for of decreased costs server Offsetting tax in provision cost to lower power consumption data and on period,

before that basis and apply Spain variance the in million $X digital year on favorable Italy will anticipate to full compared now We prior expectations. not XXXX, representing a a tax approximately of

Non-GAAP awards equity price compensation offsetting lower are revenue expense with headcount higher the GAAP a to period. On over other XX%. lower fully basis, year-over-year, increased cost due Operating stock flat expenses of a the costs

restructuring costs $X million expenses $X.X equity million and incurred cash that we connection facilities partially of depreciation non-cash $X on and this In of transformation, of million, savings added with facilities-related generate cash an basis. by payroll to and expense, offset EBITDA anticipate restructuring We company awards. back our were related of annualized about amortization to including adjusted $X million forfeitures expense to

Headcount-related of X% stronger year-over-year. about close expenses GAAP with to of We decrease attrition. QX represented quarter employees, continued compared last to Thanks down the to points and XXX increase basis XX% X,XXX hiring ended in OpEx, employee year. an

to a basis, X% grew $XXX Non-GAAP On million. OpEx

X% X%, exceptional an Looking Credit, X,XXX engineers. dispute. at and driven to Sales headcount a charge increased these in despite million increase invoicing $X an a R&D by & Operations in driven decreased largely R&D to a Tax growth Research and by Product in by headcount XXX to our related over X% increase function, X%,

XXX were headcount flat, this XXX. called Excluding exceptional And so over our charges employees, strategists functions. operations sales was other that and largely from Sales incurred year, despite flat. quota-carrying including charge, in headcount a increase grew transfers to in driven last QX & and severance by X% XX% G&A to account were employees,

As indicated across remainder managing for effectively we base than expenses planned last expect all the and of slower quarter, the functions. originally are XXXX Non-GAAP cost grow to

at XX% adjusted and to over was XXX our above end EBITDA X% profitability the QX, points. the EBITDA XXXX currency. $XX guidance margin high of This drove basis constant our Revenue at comparable side, of below adjusted XX% FX, ex-TAC, On down million,

year last plan As may significantly QX behind our that we hiring recall, was in were you adjusted EBITDA high particularly at time. as

basis and adjusted XX% down guidance $XX of XX% charge Excluding the million XXX end of points mentioned above exceptional was margin revenue of earlier, EBITDA $X high million, driving year-over-year. a ex-TAC, only the

and stock decreased price amortization by XX%, XX% and three to servers lower due change expenses the hedging over expense Depreciation tax to period. years, for with line rate $XX And million. Equity the useful XX%, our impact forfeitures in our rate was in representing the projected decreased of our equity mainly from tax compensation of the five life approximately driven awards changes our positions. Financial to due XX% effective the ForEx XX% increased expense XXXX. of on

was In estimated in tax tax effective the The year-on-year. relates XX% tax tax as were resulting as the items tax decrease in States. between XX%, immaterial QX, the XXXX, translating share-based between a discrete tax income compensation annualized difference estimated rate QX, the the the and the for Discrete such rate and of into to United effective annual provision XXXX, items impact no tax effective of difference the rate rate. in rate

from per million, expense, flow share in increased taxes decrease the from $XX by $XX working lower paid. and driven driven Net income positive operations despite a and diluted basis, On earnings in capital to a by decreased XX% largely expense. $X.XX. to XX% were higher million, tax lower Cash income financial XX% Operations Non-GAAP changes

operating Our a in adjusted QX. representing $XX transformation strong EBITDA basis, increased XX%. from reflecting million, to year-to-date catch-up grew remained cash revenue, into a only XX% of at CapEx X% XX% but on QX very flow of

cash free cash to flow from up in the $XX and EBITDA, to XX% million, million. reaching equivalents million As a half first XXXX. And in XX% XX% adjusted of $XX QX, increased result, $XXX decreased cash

a our shareholder over to the of provided buyback buybacks. has increased last to Board to that next With capital confirm our million We execute $XX program I'm requested, quarters. program. therefore respect us, as several intend Directors flexibility the allocation, share around meeting with pleased new authorized

for provide year XXXX. as expectation XXXX. will the XX, now third reflect quarter statements today the The our I -- guidance of first for fiscal July forward-looking following our of

$XXX revenue million. expect approximately between and This we million minus constant $XXX X%. of QX, to For X% currency implies ex-TAC growth

neutral to changes be reported growth. expect We year-over-year to ForEx the

grow ForEx assumption, $XXX impact plus we or about $XXX $XX revenue year ex-TAC of changes to by we million. X% points ForEx this to million XXXX, numbers full negatively growth. between constant means our revenue the ex-TAC XXXX, to maintain at basis For expectation X% XXX and Using about current currency. to Compared million of expect reported

We XXXX, Adjusted EBITDA and between million. $XX million QX, $XX expect

EBITDA we margin demonstrating XXXX, expectation profitability. for As maintain revenue our XX% approximately Adjusted ex-TAC, of of commitment our to of an

deliver the and beyond. our cost As effectively base profitability indicated last we for quarter, continue to ensure on we goals to focus XXXX managing on

for the to in focused our our As over usual, deliver the XXX financial year on execution In closing, to the release. – are effective and FX we assumptions committed are time. included supporting good profitability our earnings quarter to leveraging guidance feel healthy about our delivering remain strategic and model direction,

With take that, we questions. now your will

Operator

question Thank Yes. from [Operator Nick with comes And Instructions] Citi. first today's you. Jones

Nick Jones

how And how taking question. features just my U.S., insight for Thanks broadly, these being received self-serve in is self-registration being color Do its have to and you the U.K. Australia? Hi. users? any by maybe or received more then

JB Rudelle

question. -- Thank JB. for is for the your This Hi. you

self-registration is very the feature So new.

too the clients process So any zero We touch systems. end-to-end draw through conclusion. first it's from going to probably early had a our our with little

a by on to see So itself is the its pretty our validating whole just this first exciting one clients process own. achievement

Obviously, to as this module, ramp coming for a we're have And we this also technical -- scale that. up say, we so I become to this with pipeline implementation two only can to demand the quarters. the and going programs, fix but of the have, material this this will fill generation contribution, come not -- will the before, discussed new would to in

impact material it can So a XXXX. in have

in Regarding of terms that self-service. other features

already level introduction, adoption, have with of of a appetite is strong on keyboards. have during our the -- hands validating from a which market during there features number analysis, that a to high their shared my we As very first from is we the that -- as I the clients

now market it was a few ago. The more mature is years than

to bit which they And years themselves. more them, something a they're probably dice And engaged. few for much was want now, intimidating a ago turn

Nick Jones

you. thank it, Got

Operator

you. Sachs. question with from Goldman Terry And Thank Heath next the comes

Heath Terry

at degree implemented. Chrome. sense quarter within Great just of seen could Google you the being that if that that fully the we've give what thanks, I was numbers sort To this been us or have of made and that changes wondering seeing you're what a reflect

I the sense than was the expected. know general to better outcome

then, look was you're in Just case we that of curious at if the the actually what in terms as the quarter. seeing. And profitability

profitability happening the CPM the inventory what's the of of seeing whether end in year, And guidance a just if per equation. sort it's the cost you. sort cost what conversion sort or of of sense Thank publisher cost a give just to a able underlying or of of for at rest of the of being for you're the you the -- can terms on us basis, basis

JB Rudelle

you. Sure. Thank

So on the is weeks. previous Google there material Google impact has in done that Chrome, no

our So, business. is no there impact on

a we So to something is speak, this quarter length discussed at ago.

concern had I of know the the This Google stock the business. meeting; pressure time. some happen put for be our brings include did lot in about not there and beginning negative that was during particular our a of under price could QX Chrome this any change our -- And this impact. spring don't numbers in year

impression, not And cost matters always of what so is, cost for has not of question. to us a the its impression same value. value. inventory achieve really the Regarding hard but Because in that's we'll the the of all a inventory, cost particular the

right of is every And one value impression to strength the to engine and of cost. pay this ability of the predict the

bidders other the we bidding doing what rates, each we are are you for impression. a for impression as which to and look focus at the know, So is, bidding we what inventory, we against win particular mostly, on call

stable we the last bidding In which the rates, win that the quarter, ensure our change rates. has win our see any didn't impression we case. monitor fraction and of we a significant keep to in winning And been

stable. So I mean been overall, of cost the has inventory the quite

But impression this the once the space. of own there is its more, value. performance. has this And to ability average player is absolutely, value in no determine real in key Every each

Benoit Fouilland

even the explained our one as is I average meaningful maybe know in report, would if that JB. every Q quarter. not report thing we just add, Just We by you is really as

is confirm we've slight what mid-single-digits. trend days, and a slight seen next that Q periods, average we meaning, will the a in consistent the period, be over will coming the What's the that have prior we which CPM with in filed decrease decrease seen in in

Heath Terry

Bob. you, thank Great,

Operator

the Thank D.A. from comes with Tom you. question White next And Davidson.

Tom White

I'm for Great. On business more Thank your just app I inventory app networks you said XX%. large tap could sources inventory, was and might I bulk app whether in you you might the specifically taking publishers question. hoping grew garnering specific interested, be spend detail key or which about there that mobile be my it large don't think a just app give for mobile your works or you publishers currently that bit into? of

just And then follow-up retail on a media.

are or too. You brand turnkey for incorporate mentioned factors that retail spend clients related in platform asking a that

Just more for -- positioned high at you type branding that and guys technology maybe brand hear, you from curious are personnel how to wise? a Thanks. level think campaigns a both

JB Rudelle

very Thanks much. Sure.

I level applied approximately, the the same mobile So on are that what mean strategy at the we applying web. we high

across help mobile to to want we open tenets. inventory -- the are whole our We buy clients

at the all are playbook. changes. we and we We so agnostic buying completely with exchanges and scale our and connected major started So, are on the applying usual

from on On top the mobile developers. directly app buying making are exciting progress of very that, we

value. from money the necessarily you of XX% the which pocket know lot buy when exchange, of the doesn't fee to publisher. and advertiser an more exchange, buying win-win. the the As a performance the middle it's with better man, in And you -- direct It's you add by from publisher, get for the

value this this So a proposition. attractive why is very is

bidder. a XXX to than working that And matter connected global of including than said app as not now largest are developers as are more of we a we the fact, with more direct XXX apps

have in to being is because to of value direct lot we in-app. web. So early a very still a same capture, than We our that see it's still go way strategy in-app off great to -- the

-- web, web the While direct many for years. been obviously, this inventory we've pursuing

had relatively we So penetration. to of there room grow. and much level early high a in-app, But a we of still are is lot

media. Speaking of retail

that to more on it's this focused very to than want a branding. partner historically full retailers that true the they more that's important is of a offer trend and recognize than was something And performance suite So Criteo product year we on capable ago.

Sponsored with That's the side same busy the so we And last company this and the why exactly we've on single solution. into August, we integrating a company a acquired reason ago. very year the called, They offers were Storetail. doing Product formats. been umbrella acquired the French And but branding of this equivalent under two the branding

feel already one fact, on the of matter a we ahead of and something have accelerate in signing unique. across single we way big U.S. is lot market. players very And in going new rest area winning in the and very the XXXX. a is big industry as a this against We've product, from that the offer this And We've we client our platform really of see the we're first of excitement people market. which been recognize been to

Tom White

Thank you

Operator

the comes And next with you. Champion Tom Cowen. from Thank question

Tom Champion

Hi, a continuing result you at of level. new to good growth? Clearly I think pace strong accelerate a how ramp that about but you about talk JB, And if products. little growth XX%, wondering and could think last quarter's in morning. I'm the do below

now you taking you're process maybe organization just a that second, consultative the more then the And in approach? talk Thank hiring sales about could a you. little bit

JB Rudelle

Sure.

kind some initiatives mature have space, So with is we simplify to more three buckets. new would -- than product say, several I others. are of we in this

a -- is have a particularly is solution, market of quite like is and we which excited to this -- in and technical itself lot which a that strength. Retail happening We which a in a business our is that our reacceleration discussed Media in there changing a area, because lot, direction we're we lot, see favoring

is very exciting. this So

consideration have product. we and awareness The is funnel, upper this other key two initiatives

potentially is quite But a we're market. huge this still So there. early

funnel fact, and market lower of for which than a today opportunity almost it's growing a it's faster matter where us. the is greenfield something As a

execute we're there that well early on -- still we already very huge if And I there. potential. So, feel, is very, we're a

third as install, discussed install, very something cost I a it's install, we're about performance one, but good where The performance. app lot app and is, at

putting upgrading of We months effort ago acquired Manage, app nine lot the a been product. from install this company. we've So

with two as into enhanced And our managed new very machine shipping is the and version we the expertise, which job have good very we discussed, highly strength we learning a small. are the engine. we including Criteo make machine really we world bidding of And very, sophisticate believe a capability, combining large a market of best learning, really are the this as where go-to-market install to these dent app today expertise

there lot But there. is a

I are say, yet. where very physical early store success store, still material we not other with and opportunities, have which an like early would is have more, clients, early exciting but We a our this

can time that less it's but midterm. be something on promising spend we this, So,

And new is all enjoying So in, a double-digit portfolio a of healthy very why it's it's very growth. robust products. this combined, all when

Edouard Lassalle

process for go-to-market? the Hiring

JB Rudelle

the repeat Can question? you second

Tom Champion

just update I includes consultative progress sales organization, approach. could if that on you Yeah. transforming process in curious a your more a the now was us

think the I was barrier a that in past.

JB Rudelle

Absolutely. Yeah.

we is this are something working So, on.

profiles. are As type need of selling two we -- we

also talents bringing We the lot experts from the them are outside. can inside from specific we and have we're areas. a training we talents of that of great in train from the and we need inside, Some

a are pitch which than very and aggressively discussing a traditional hiring I requires there. different install, app web specialists we app about was solution,

We high because the what are also needs the and now with a CMOs need need of we more strategy a - discussion said strategy you with the view capable this a clients. organization on on high-level people as of the exactly level engaging XXX we conduct hire the our consulting in to with consultant mindset, clients, much people to strategy our in

we're So from of -- a the talents teams this ground new outside. executing good our and and on the bring mix training with

Tom Champion

it. Got you. Okay. Thank

Operator

comes Bank. from our And question Deutsche with Lloyd next Thank you. Walmsley

Lloyd Walmsley

Thanks.

things Just little revenue a a where other wondering a provide to more tools model, potential you about fee if you talk in to and bit the shopper data and underlying your can graph to maybe model. of shift potentially access licensing like sets

You've transitioned thinking of inbound could move these talked think lines. this. business do towards much you along CSP about kind you And your about given that streams revenue higher business to thoughts a risk-taking request The would this? like of market getting revenue some kind has those How much streams? you great. model than values the how guys of are Any there be

JB Rudelle

Absolutely. Sure.

for as discussed very Retail So Media, we are rapidly. we shifting specifically

no market the a transactional point if model, business. As ago XX% be quickly months expected six much there it And of the resisting is I already Media we faster than wouldn't what is and fact matter Retail a SaaS this. business. our to surprised which of going will representing is majority of way is very be our This just the

fact matter a of doing opposite. the we're As exactly

our client quickly to We model every the one-by-one with as the are new of them with and from discussion as having clients switching model possible proactively pitching old ours.

user appetite we insights the also model is have the of get reinventing there Other we for best us, still the Criteo market graph combine more in the a for things, still data solution, performance what too call interesting to because player this helpful best our now wheel by And in assets and would shopper a the big but to our rather inspired and The that been market is there. apply very than can there experimenting Regarding getting but happening few educating stage, very early early mature. the is are area, promising uniqueness generally we and ideas for some which graph. we are also data things has discuss are Criteo together. this it's more detail. marketing there Right

Lloyd Walmsley

Thanks JB.

Operator

question Thank Doug next Anmuth JPMorgan. the you. And from with comes

Doug Anmuth

questions. the for Thanks taking

could on increasing client key of then given your some is more too self-registration, can recovering Thanks. little And lighter the drivers but more there you're seasonality I just outlook and maintaining you confidence favorable about as XQ XQ. bit some elaborate significantly there's key adds the and you then well, talk the that benefits the a outlook. year obviously on hoping Just of you self-registration just when know And then driver? more in more talk base about And in XXXX your the full there? just in client

Benoit Fouilland

this speaking. -- Benoit regarding So is

Regarding very in to which QX, our impacted seen good a traction, the consistent would ultimately solutions in the quarter QX performance business we've decline but show a where we by retargeting be new expect continuing slow expect to that we with see

of by on we primarily -- take up the time channel, commented the the that as as take results see our over well through the that stabilize your that on decline we automated the the us would And As usage. in channel scale web call of opportunities retargeting the earlier, could two XXXX that driven and to that see as decline in side. up show allow decline offset factors apps self-service

in expect the initiative So in And type similar detail call, expected in the what producing XXXX. QX. strategic very more we discussed results of QX with to those on have in dynamics we observed very, we've initiatives than are that to more respect strategic

JB Rudelle

about is self-registration benefits. self-registration. several so the what regarding So are key This makes excited benefits. There me

the behind their onboarding. obvious one productivity on less and the first on scene. which start company own to they is our their turn platform engage their need on The the and dial people the own, setting with is of are you When most clients own the

own our into upselling on more an and with has the allow just more team it than rather our and them to improvement dice. turning engage strategically clients, So productivity immediate

of benefit So self-registration. that's the first

machines some one would second human a it more The very to rep. known, in that but speak to important is intimidating find surprisingly they sales that say, a more clients beings way can is less which than trust I

in some of doing screen, to on going their -- While of do something seen And are own the do more their this comfortable thing comfortable in platform. this own They front do and is some many other we've this. this them to and used many very are just are on to aspects.

I don't are clients trained on have is clients win-win is is our adding And getting own. part having and of lot as one we're expertise with and the equally this working The and proposition are tools they third for they the agency dice operate their which strategy. our own can one, a of agencies agencies with platform. more the behalf turn that of that And their more to agencies, for that important, value really on on we are value Criteo really it's the the a

we this across torso clients that all and and lower we are the in, year this have of can material on So that our are self-registration see benefits it's next the as really confident exciting, the not tail where you impact big targeting shared, only market adds. all apply of a should is And small. there type because net

with up For enough marketing this leverage engaging prospects have to fully this hard And on. acquisition and at we channels time going the ramp we're are is have our our we modules. make to self-registration same something momentum, to working sure this very

Douglas Anmuth

and JB you, Thank Great. Benoit.

Operator

And the from comes you. Markets. next question Thank with Capital Salmon Dan BMO

Dan Salmon

bit a talked platforms those little a which bit always Criteo I to sort JB, at technology of lives issue lately, are to Thanks in on Good we they top to going continue the lot public Apple Thanks. is initial the ask you how now for want business And on sort your I importantly that you morning taking business platforms as your ahead? an the in for which of just as ecosystem with about see oftentimes. of on about of don't important of differentiating on history. consumer manner the company's course, of little Could Apple. dwell ecosystem operate, the Internet major everyone. to what from Apple I really a question. but years Chrome want changes of course forward for ask want on evolving? and of privacy And comments the impacts and ancient sort focus But about that sort means speak [indiscernible]. relationship marketing more through high-level ITP, Google's look more

JB Rudelle

Sure.

a you our while. as So fully said, there is for in ITP been numbers. the impact It's

paid And the having privacy, reminder, very is when privacy-friendly, we major trend transparent as the get only if And inventory a they targeted which it's you engage trust. advertising just ads. users with supportive an to in we a what pay do there it market because we open ultimately way. in the you Internet and need moderately Speaking are the one. a matter and very do good users loose want to a about about for no our Otherwise,

ad have absolutely not So who's we show see to a no an this. user to to incentive fully comfortable

not. they're targeted want So when the That's want been is not have to reality that with choice. user, they to to the see because choice and had we've they see can we ads, they have ads control right reality see ads. in probably that because of user clients matter the of always when ads. perfectly own make afraid level we on two you rather the that and the deciding no that, can decide random very majority and that of how going end-user what And own of give what we're proactive the -- vast the they seen understand the their to or relevant see a their in We to we've Apple what the user see them that ensure the and behalf on to is choice difference every than to see

that interest you'd some their are players It's a open and majority seeing Internet in decide just that vast that Internet We their are on -- There own. pollution. way ultimately the in than to the to market. some see with control. the choice. visual share I our of want economy I the letting -- are is end-user which believe need vision big That's are this works that rather And rather ads the think just ads something things of

Dan Salmon

you. Thank Great.

Edouard Lassalle

for any good The you Well This We day. thank JB call very thank you attending. follow-up for wish is today. IR may our you and a team concludes Benoit. you goodbye. everyone available have. and We Thank

Benoit Fouilland

Thank you.

JB Rudelle

you. Thank

Operator

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

may now lines. disconnect your You

Criteo (CRTO) 31 Jul 192019 Q2 Earnings call transcript