CRTO - Earnings call transcript Q3 2019

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

Operator

Good morning, and welcome to the Criteo Third Quarter 2019 Earnings Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Edouard Lassalle, VP of IR. Please go ahead.

Edouard Lassalle

Thanks, Nicole. welcome third and call. XXXX everyone morning, to quarter Criteo’s earnings Good us CEO, Fouilland. and are Rudelle; With Co-Founder Benoit JB today and CFO,

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

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

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

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

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

JB Rudelle

and topics: our outlook; I today’s everyone. morning, discuss three our new performance; will third, and arrival main Thank On Megan. priorities the Ed, first, you, of operating good QX business our call, second, and with governance

a words today’s about few say announcement earnings. to want I of start, I Before outside

the the I I day-to-day end a I remain more separate this CEO. will Executive decided, Board, of of Chief my support prepared our As the remarks. have hands in to our transition the operations release, have talk Directors, new in you while will the of be of in seen may new Officer. Chairman will about Board at of with bring full

results. our Starting now QX with

our on make We to priorities in target. our ex-TAC continued of guidance and revenues progress our achieved Adjusted top EBITDA the and end transformation. exceeded operating We

a again additions strong in our Among solid we particularly net highlights, client in clients, XXX the expectations. momentum and with midmarket, QX in growth saw were the double-digits. positive, where with accelerating net the performance Our line new was quarterly our

prior teams. this execution in focused by improvements sales our As was again quarter, midmarket and in the driven productivity

most for as of reminder, our from momentum X% solutions include XX% ex-TAC basis of account solutions, One of ago. grew a for business, total results is new of QX exciting our XX% revenue year the a outside the retargeting. now They and which our on all a up

X graph unique Criteo identifiers the contain also density, billion year, over grown in both cookies. we Over XX% and identity Criteo of IDs basic than have just long-term past has in our rather persistent over size, now IDs

a identity enhanced TV. to gardens’ we in a reach LiveRamp capability marketers their in in on with customers identity proprietary and including announced We inventory, ours, also combining believe is this access connected own offer By manner. solution cookie-less Furthermore, quite by partnership IdentityLink. solution the to to QX with new walled additional approach. LiveRamp’s we privacy-by-design unique industry very broadens additional providing competitive combination reach our compared This

to on CPM usual key that cost-per-impression, marketing early the our pleased product a benefits a of of we our QX. offer our identity this scenarios Web traction to ability model, graph or new our the cost-per-click particularly launched price with this Among From dense Consideration the am upper-funnel I than clients. Rather in product perspective, to decided is we basis.

client and was live already its modest, contribution very Web XXX performance. using on encouraging revenue feedback received accounts we still While had Consideration

market was be regions. cookie traction. across business against enjoying further very it solutions, and This restrictions, new Retail within Also largely which basis to designed is in third-party QX, ex well all XX% growing accelerated on good Media TAC revenue a three performing immune

is with also business As a Retail SaaS discussed model. transactional on previous increasingly earning marketed Media our calls,

applies turns products. Display very for to Enabling model control more popular both be Sponsored and clients This transparency Commerce our out our and among Products to large retailers.

Media As our grow offering it revenue the This on conviction mix. later. Retail a to allows quickly relationships has our us more stronger very ability and as that this them. good build result, programmatic in momentum reinforces our clients continued assets to strategic to consume topic platform More a a with

app continue On eliminating direct such tax recent T-Online additions our the publishers middleman more of exchanges. for our Bidder high-quality on L.A. to Over publishers the web large supply with expand connect Working side, Times. now ad as the X,XXX while reach, to number and allows and publisher network. inventory, both we directly a Direct including from

Regarding ex-TAC basis. retargeting erosion main first, here range delayed compensate have that of driven and yet. revenue their usage large concentrated saw mainly second, we and mobile a two a higher customer investment marketing factors: business, to our in The midmarket; digit the decline segment penetration on is the slow doesn’t mid-single fully legacy was by we in much softness browser reached compared app the the in

our to now the for priorities Moving outlook future. and

saw our is accounts highly around our concentrated the in business, to QX, large accounts. app expect continue in in which We large QX we in softness particular in

approach transformation expect Given the outlook. Despite top margin yet, a contribution positive moderate line. to of in more bottom if even more not on large impact holiday profitability already does we of early see to QX. line line, is year-over-year the This it we our season, our our signs QX illustrates our top are to taking this important that clients moderate generate showing a revenue in growth improvement

our our revenue proposition ad spend. resilient. return is on pure Looking more involve beyond value beyond just QX, to our broadening priorities one This will model of make key

some control about seek most over are sophisticated Media, their tech As of discussed Retail ad stack. retailers more our seeing we

control this performance than becomes for Sometimes, important appetite even campaign itself. more

to large more embrace engage those this with proactively We are an trend new seeing opportunity strategically clients. and

SaaS also successfully resilient Marketing will where of market make We Media. a to clients, will having similar has share believe specific involve a pricing to doing cookies we us a from Solution high-end more with to world transactional our dedicated a quite offering bigger of model Retail made transactional difficult. client opportunity. our access adapting been to more that us might for what a It allow needs This capture model cost-per-click traditional to already the started in SaaS fraction

Looking back dimensions. the over past XX four key have we months, important along progress made

First, greatly new development seen, in have growth. as what we almost already early retargeting from was Those but, new relatively solutions. substantial a product set are their we’ve broadened our of still portfolio generating to solutions just

an point our and Second, by be to evolve from into tools to solution actual platform, we made that can directly services what clients, as their agencies. large a self-service efforts and narrow migrating our operated tech perceived managed was huge small,

of to XX talented cash our we we a significantly as appointed healthy products graph is are a able design, and noting and Despite sheet to the these thanks were ambitious to and passionate changes, of we have have by whole that growing during significant that key cookies. a while implement executives. months, balance strong headwinds flow. highly profile, identity diversified financial our Third, number cookie-less it transformation, new reduced our fourth, faced dependency generation steer on a have evidenced by worth bigger, those we more maintaining And third-party

is fantastic we opportunity already as leader why as will who joining adding of is expertise Her I Megan Criteo, This will From programs our Criteo require to as all is to for excited success. for multiple through set similar profile come us tight direction that global the move I our execution. complex a more teams someone great believe all the the are has will my is way with transformation its well a in very with types maximize driving our skills led a right This her, we about track and conversations for combines job. next clear and strong She of and operate Megan changes our the record to new with employees, time with stage it proven clients and partners. for a with phase a very Now, CEO. transformations. think addition industry transformation.

of transformative to on I very with next Megan journey. phase our am happy personally the work

remain and fiscal transition, face appointment executive to company, To report XXXX year XXth. ensure Affairs. November maximize will I in Public be also will Megan’s until the success. her support ensure our Criteo’s Chairman, especially that I of public the a smooth As I will effective team Board Megan results. supports we a will the European fully operationally

confident usual, leading advertising our for and that like the As our very provide I’d is Criteo guidance far, as the to In platform will we then for open coming succeed closing, Internet. on given path the the right to am achievements I so that, year. plan say

Benoit. the With turn that, I’ll to call

Benoit Fouilland

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

was Revenue and performance for million. walk at year through guidance As XXXX. currency flat fiscal usual, quarterly will QX you at I share $XXX and our constant our

was to currency $XXX also our flat at business, ex-TAC, monitor Revenue metric key constant at the million.

especially decline across client offsetting in midmarket, New new a client adoption existing base. client solutions business the our drove limited our in despite the business, of continued our performance,

Using $X the million currency negative of $X.X point was negative XX% QX our year-over-year combined. X% maintained at client FX over million to a assumptions guidance, FX impact. our than approximately ex-TAC more supporting before was X reached $XXX revenue XXXX, Compared million impact XX,XXX line for in grew to at solutions just expectations. XX%, the margin all with essentially flat below clients growth. number retention Revenue of ex-TAC and We or

currency decreased just despite less in than adoption a with of products, client by customers. our large at existing revenue From particular driven higher decline an the X% constant standpoint, new bit in retargeting, slight same-client

decreased same result, at a X% As client revenue currency. constant ex-TAC

growth Retail with from Americas, quarter, a driven improvement prior midmarket was growing offset clients. plus including business, by improving the Turning constant including of Media, new in our traction performance, the positive solutions, continued ex-TAC was to This regional X%. and the recovery U.S., at the marked the by softness revenue currency, large of in slightly notable

offset the driven particular ex-TAC in at strong of in in and region, including Media, with also growth revenue UK. our business solutions softer by new continued This was traction large EMEA double-digit constant by X% the a in customers, Retail grew midmarket currency.

our APAC, at cost in opportunity customers X% large in with million and in us typhoon similar solid constant clients in and lost to currency, large midmarket the $X.X the And, data Korea revenue business center strong combined declined momentum in with A with which, ex-TAC offset quarter. across prior slower continued hurting region. Australia, growth Tokyo Japan

our close growth center our APAC. Excluding in was Japanese of flat outage, to the data impact

expenses. power to of in driven XX%. lower On and digital increased other the revenue consumption Other data tax amortization for a our period, third-party our for on Shifting centers savings of by change expenses in cost the Revenue. server by French decreased basis, offset revenue the non-GAAP cost data, X%, provision in

GAAP driven the the basis OpEx, up compensation expense price decline. awards but X% equity and operating year-over-year, to X% quarter period. our GAAP X,XXX of declined a over represented by Headcount-related year-over-year the due expenses X% with ended lower stock expense XXX employees, management We about sequential expenses of an XX% points. disciplined lower increase

were at to On quarter. compared a basis, about $XX million $XXX OpEx million, down non-GAAP the flat prior

Looking XXX in headcount Research growth by and engineers. at these X%, an partly R&D driven function, by and despite Tax increase Credit in X% our a decreased to R&D Product

Sales as to X%, XXX. And increase so third-party well account headcount and from and employees X%, X% one-time transfers our to headcount despite Sales employees, a internal fees, operations X% consulting other called G&A providers. in for after advisory X,XXX. functions, increased by and X% strategists, HR-related a quota-carrying driven tax increase decreased as in XXX to including grew

expect to and compared our plans. last base quarter, XXXX continue functions slower effectively for all expenses As manage we indicated to non-GAAP cost grow original to across the

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

servers useful over a our expense equity awards to extent, expenses representing lower XX% million the Depreciation by the and compensation years, to five and, stock change in XX%, decreased amortization from three in QX. due price period Equity decreased the forfeitures. approximately to $XX driven life lower the of to

XXXX. on of for was equivalents ForEx cash rate and tax the the impact our for foreign increase income XX%, tax QX the tax translating debt, expense effective interest in effective higher rate hedging positions. XX%, offsetting provision line a And our XXXX, in – charges on due decreased XX% lower our to taxes. from more rate Financial was with changes XX% than projected XX%, into income In

negative and $XX driven expense. to lower by million, to decreased in million, adjusted and Net income in the changes period, financial lower increased lower XX% paid. to tax XX% a – $XX offset increased despite operations income driven paid tax XX% income increase a expense, from flow by And lower partly per slightly working the $X.XX. diluted higher Cash operations earnings EBITDA share from over capital XX% by tax

adjusted of X% in of of a flat for revenue, at year-on-year QX nine strong year. XX% only X.X% XX% – first into operating basis $XX of a million, transformation remained Our at basis months cash CapEx at but XX% revenue. year-to-date on flow to EBITDA representing essentially were the decreased on and the

decreased cash result, $XX reaching to $XXX equivalents million flow a only QX year. million. first first X% in months and the of adjusted free cash And XX% to As XX% EBITDA of nine for million, $XX increased the and cash months in nine the

approximately of million a – XXX,XXX amount cash average $XX.XX program With new respect August. we about an at cash the purchased our for $XX price shares of quarter, In $XX in executing buyback per we allocation, early to million, total to capital share. started

not repurchased our to few consider so have next future. over point We doing program in this executing cancelled at continue in share may any the the QX. but quarters, buyback We including intend

I fourth quarter fiscal will provide XXXX. the for now year and guidance our

As today, XX, of as October the following our statements expectations usual, reflect forward-looking XXXX.

in a As revenue QX approach trend are our more to our we ex-TAC outlook the reflect customers. JB, explained by large to business taking with moderate softer

to $XXX approximately for million we result, to assumptions between million. and currency constant X%. million the X% a for The revenue minus $XXX and guidance, implies between million. approximately growth of $XXX our minus QX this $XXX As QX guidance means ex-TAC expect QX Using currency used be

year-over-year guidance expect points to expect more to we about outlook the negatively basis or changes impact numbers reported XXX of moderate QX, growth. $X by With ForEx We this million for land ex-TAC now at July XXXX. currency fiscal as revenue year our now constant flat at ex-TAC XXXX. revenue approximately This means, communicated for on XXXX full of end expect year for bottom growth we XX,

approximately million. about means $XX points to this ex-TAC growth. changes Compared this of are assumptions, QX ForEx negatively XXXX, ForEx revenue reported about $XXX current the by on guidance, impact our assumptions of means or Using for FX $XXX numbers Based basis million used to XXX expected million.

an and early our expect having driving on Now, line. XXXX on this XX.X%, in we the our EBITDA This strength in year. our side, model and improvement compared $XX margin positive between transformation point means adjusted margin million. the prior impacts XXX midpoint improvement a adjusted QX $XXX the At QX profitability EBITDA million basis financial margin company bottom of to demonstrates is the of both our

margin our XXXX, profitability. And, once approximately demonstrating, revenue for commitment we to our maintain expectation of an XX% more, EBITDA of adjusted ex-TAC, of

As indicated the and cost order in beyond. cash and base proactively are free our healthy we to generate XXXX flow profitability in in past, to manage committed

our the As for are usual, the FX fiscal assumptions quarter and guidance in included supporting the year earnings release. our

company. the committed our good efficiency feel closing, and to are doing we In focused transformation. on direction making and entire driving business our across we resilient so, more about strategic accelerating remain our In

will take we your that, now With questions.

Operator

first comes of ahead. from Matt Instructions] Thank Our SunTrust. Please you. Thornton go [Operator question

Matt Thornton

taking bit thanks A talked the and could. this. a quick And I for about Media question of know ones, if growth. missed I guys. morning couple I apologize, you’ve the if good I Hey, Retail little

Google’s helpful. generation Any then out the demand first-price Thanks here, on there would transition Just there update just some wondering auction more is we guys. the the well call products self-serve on impact in upper any web can dynamic parallel? platform wondering, you of you there? there if ramping little how an would if us was install wondering color growth give and get a color be programs growth? if that can to just app And as the how finally that Secondly, just just funnel ramping are as from

JB Rudelle

you. Thank

take I Okay, of this There’s a in try here. will lot order. to question

So Consideration. is first, my I Web you what in This mentioned referring web upper as funnel. script

So our QX. significantly we early results better because offer as in are formally I this than on done mentioned, the we our actually relatively this. is targets That launched encouraging, very internal early

and with very the of now We important, have more them clients are most live happy XXX performance.

see start coming orders a very in. we And to significant

lower funnel targeting. And are sometimes orders the we that than bigger are those

because we’ve international asking ours compared was the guidance we Web it’s new that So exciting is the to and of we’re very really targeting. seen we’re for recently, targeting more products always closely, order what of And midmarket was us instance, share larger monitor there’s legacy for Consideration. something a that one like an accounts

So this very – is overall very encouraging.

also app mentioned You install.

So relatively this is early. product still

is Criteo and transitioning process. know, the We to manage this are, ongoing the stack as you an platform

right So still the for scale the sure the fully have to make right we’re we But still learning now, managed globally. building this market. we this phase in from acquisition haven’t product and

is also progressing. Self-service

mentioned across is us a and the U.S., the are expertise testing lot we three give we to insights going holiday a rollout of next going and get UK. Australia test of the seasons And platform time, last year. are and good self-registration knowledge a As during for new this we to lot markets,

Google’s Last first-price. thing is

of we equals, this important. because advantage better plus second-price positive for overall relatively was We So their time very engines than bidder long could now. at to the last equipped to for And because competition. exchange, well for increase our all things first-price was this competitiveness. And speaking been result, a to us speed were we’ve Google as a move Google believe likely large from bidding is to is we first-price developing as of transition, our this impact first-price. first-price change bidding take

positive been it’s a us. all-in, for change So

Operator

ahead. Please Lloyd from comes Walmsley question next Our Bank. Deutsche of go

Lloyd Walmsley

two can. if Thanks. questions, I have

marketing desktop. faster is web mobile or app presumably, than First, growing

secondly, bit that if just there just you elaborate you intense related? with is large access elaborate you’re Is on And would competition? here losing why can then LiveRamp, the think right to share these identifier you performance on can it getting video And you a can Anything think called you out be it it is? clients? partnership give inventory. So Is to from helpful.

wondering, Thanks. after how do what kind to that to you is that. of just of take So trend go-to-market the feel your about go aggressively more positioning and advantage

JB Rudelle

Sure.

in more marketing, view if to it’s you retail you specifically, look this clients retail obviously, And if segments a we have area. app very mobile it’s market. to as a picture. So But good whole, look a this more segments, the at on close growing have a we XX,XXX because mixed

submarket is have we So a basically, this very clients. buckets you of And three know well.

early who of those business develop clearly app aggressively very with the have are would mobile would are momentum. what the back good lion’s I they app our And them. those call mobile the adopters, share I growth terms with in business. leading and do app You And a ones we and retailers say, of represents, in

a to have you lot improved, have in in it, they’ve those is do you what that lot their of by they in really app do app experience. same have delay kind iOS. are and they best-in-class a techs see great because Android, are can app the budgets. less been spend it working that web. there you you what in marketing app, a The they guys get second doing bucket, keen they they they’re that web, know but level of to a and because have to The Then have investment It’s need spend to between web, clearly of the do is their on experience same effort that enough but takes app which know a not different and way that,

have a well. have app, the just not an were category they know time of among they And And that’s that and app. for midmarket that most long needed them, an stop. they hoping clients, full don’t They you especially it’s third

bigger afford this way run. they comparing speaking case in relatively another. that delaying We app, work studies not an long them But something are or clearly guys. good them one than with will it’s effort they’ve They for in showing bigger the it’s to because to have have the a can app much been investment

we’re app. basically only before they midmarket it’s those develop and doing take an while segments, for to with web a going So them

retail, like speed. retail And the investments lines app all messaging, in when a not So or industry you not whole, which migrating as as the delivery, base is have much are gaming client core all-in, in you but – in things see the travel and our at a classified, food verticals. a same lot mobile of

still LiveRamp, plus us. one equals it’s the LiveRamp think doing than test – growing gardens exciting walled two. less expand promising connected small So to for more fast both a cookie but inventories with we’re a one there a getting have up it’s TV, which business one, these I been a And cases it’s those highly have partnership are of where number of including in connected partnership one of And beneficial identity TV, lower few in where do capability position. it’s we’ve the encouraging. a with They and

this early. very So is

So is guys us just – I for this interesting testing because don’t you get an that phase overly to additional opportunity want in about the excited it’s just midterm. that at we’re

Lloyd Walmsley

like about that So follow-up the it aren’t a stuff, themselves on traffic, app just their own that you have chose kind to mobile of but spending sounds app clients drive apps, to clearly, the weak mobile kind in about of that that type? driving if you apps, and you there traffic the web, feel is good to your well? growth performance holding up buying your think inventory within Do performance

JB Rudelle

Yes.

where time, media for more web focusing this is we’ve see inventory. in and of directly the the area ability publishers. of Actually, this our try long buying past direct most few on more inventory. And our our well. was really from is to growing We So is overall – to is this where media buy going the we quarters, app this most. inventory focus with in buying. discuss piece And the increase been And the better

Lloyd Walmsley

you. Thank Okay.

Operator

comes Mark Please go of Our question Kelley Nomura. ahead. from next

Mark Kelley

question go go CTV want comment bit there. position thank diminished – walled to a back with were to about, about a the or the talk that you customers, geographies made Great. your you any just Good I have want you to verticals more gardens to large back I second impacted? softness morning, little my most is, guys. the the Can And

think your thoughts emphasis Roku. especially them TV, I becoming acquisition. walled Google YouTube to a you. curious garden on putting is get Thank see you I’m after there. some the Do dataxu and

JB Rudelle

Okay.

So Because of I web is regarding audio. larger across the investment accounts of was which the happening something, on softness has kind everywhere. global describing is what the trend shift been from

So there depending in different mobile. are some nuances the on geos maturity of

countries Some heavily super apps, transition. markets, are early some in we it’s Korea, like into today but mobile this other still

is issue, It’s again, advertising So not believe migrating we this that more that just web but we a to long transition in this the term there terms relatively delay budget one. short app. in term a is from of

experience. Again, mostly on clients experience number because app the is our with web a large not par their of of

So put on more are they time amount users money spending Despite same the web. are and reluctant the apps in more fact in app. of than to rather the that

short But and trying this So headwinds. creating to more – there is happen. our are aggressively. convince some not it’s we’re we Eventually, best our to go going to term clients

CTV, Regarding it’s early market. an

what to – like XX the that early ago. it’s So very And market it’s pretty fragmented bit I a it’s little it’s probably web, years a one today. speculate was a way would say obvious

years one look the ago? landscape XX at – consolidate super strong at all. handful should a was that’s walled gardens into might eventually it a again, walled You might had you So – no web garden, day you of what where

inventory. a had better all bunch to monetize You that of publishers are trying

looking don’t web. inventory. that high to the all is you typical flow the value and they of their have the increase the have others, this And the monetize and opportunities quality Roku mentioned inventory, to inventory on you where maximize you And

a this what promising. So and a market – compared it’s it’s web. the now, is Right small it’s to smaller

a there. interest waters midterm testing I are we again, for us. that of So as But area the mentioned

Mark Kelley

very much. you Thank

Operator

Our comes from Please Davidson. next question ahead. of D.A. go White Tom

Tom White

favor Okay, JB, this expense all about then it could increasingly that expenses great. the stack. to functions elaborate slower some Thank remarks prepared and to And you. growth retailers made said a there? the JB, in their to ad you One you for hoping plan. prior tech you year, control over just comment relative are I clarifying large came when then grow kind of seeing Benoit. think I kind performance across going question for your non-GAAP one on of guys operating

just Just some help how finding of curious a function can more your to Just trying expense decision is understand, spend? can much you understand be or that of versus where efficient? us pockets Thanks. of slower there? Or you of investment if just are the back what’s revenue maybe kind to growth hold you happening

JB Rudelle

Thank you.

the So and one. Benoit one will second I let then take first answer the

this on that’s it’s again, So most are clients. interesting with very new mostly it’s this conversation our relatively And having, clients. control we our concentrated whole sophisticated

the For a long – are the good time in less in of things let beings. company human cases machine at. to screen – human front big the lot we of decision do is are of a was our focus capable Because, tech-driven and the where we take that instead machine smarter and

things. automated we of So lot a

how was what fashion on they completely and everything from do. performance impact been seen market in able can of black automated is we’ve most at care and And how the flipside super effectively without a that in products. works been this they and best-in-class happening where so do is by a box the really been we’ve that look advertising like is because, The very any clients, to clients that And scene. growing for our behind thing control is don’t the algorithms we’ve they it’s performance the one develop the good for as impressive having performance okay,

because want to sophisticated specific have to most to ability have on the control depending want one, But influence more for the they tactics they consensus. the bidding

those put have they special – want and have have a to in excess an inventory, of to want they instance, specific of they week. or For bids a ones product they type promotion high on

to So the tactics to influence in more be they want granular way. bidding able a

platform let open control. some to So them we the have and kind do

saying, engineers the do if of the than beings. to smarter degrade you reaction first this, going the you’re So because performance human is always machine

expense saying – even a it’s performance. of to see have sometimes rather a think we control that the we’d we that, we if that. recognize know Well, that lot important I that, client And it’s

the control tech all off And and it’s interesting performance. And develop a doesn’t just opportunity this sophisticate straight for an maximum clients rather providing trend. where ones our buy will than clients. concern most And fraction It’s different large think sometimes of a again, our they type but also them it’s a I more ROI. typically very to clients. of of small more the to relationship get And us with the very than

Benoit Fouilland

Okay.

question when year, our your reported on that moving that focus on would agenda expense we we’ve done. regarding increase first So what we indicated quarter To our expenses. clear, management, profitability we’ve results be exactly very on this

this management base. is to of our So due proactive expense

the reorganization leadership across we’ve current and result of our some the company. taken as had as of result efficiency last as proactive the fact, quarters see you trends spending a taking that I you. that reviewing proactive estate delaying to significant the in also done real So well our project at expenses, of actions We’ve a base. not cost as mean been level But highlighted go-to-market as our action portfolio – reviewing reorganization are of

that not us. is that’s an effort And behind

look in expense continue effort, to that year. business. across I translate remarks, prepared in full would digit We And to are the as continue manage for in single productivity, efficiency said to my that in the going growth lower for productivity

started is mind the had initially than following year. are lower we we this much when speak, we trend what as which in We

Tom White

Thank you. Okay.

Operator

ahead. of Our Please Andy question go Hargreaves next from comes KeyBanc.

Andy Hargreaves

the get seeing have Thanks. close retargeting of just erosion slow something to think fairly back because, broad is we know the on gap impacts And there’s the new at and seem almost like question hopeful entirely second sort it a sort been that business. we any seems growth I we’re one of retargeting point, that it external the doesn’t double we’re digit like And to would in I half. of. didn’t

driving ROI So are Is climbing? moving people is it What’s individualized away it erosion? targeting? just that that from is the

JB Rudelle

very it’s in accounts. has Europe prepared a So, of contraction in big between and granular, our our that overall picture. impact absolutely in size retargeting more step Midmarket the said remark, more we one given geos, this nicely, look the this large right, And midmarkets you mixed double we is small Americas. when we mix, in growing overall – is on But picture. there But have you’re in into role this especially it some a this and the business. digit as have connection

very So nicely. it’s growing keep

large shows softness This retargeting. investment nothing there is And accounts. is we is in the simply is the previously the the in explained discussed – is fact, apps overly what most is accounts that specific There large very about well concerning that of most investments like in accounts. of mobile that larger in within this

bigger see didn’t in growth we this app, on we larger as midmarket. were then had a expecting impact So much on mobile the accounts

Andy Hargreaves

collectively. comparisons And then new products, just getting were The difficult. a the we’re me, if them looking at bit – excuse little more

momentum slowing to have is to where the we expect they or the keep consistent growth year-over-year been? growth should in start there So businesses enough those with rates

JB Rudelle

Well, clearly there a is very momentum. today high

are We mentioned talking for digit. We high XX% QX. double very

and the specifically of deep significantly retargeting. future those products. very from balance They and markets markets today restrictions third-party that we of are risk. are cookie for surface as those products why pick this any guidance those product. number on new would only the time. different is some because maintain expect really precisely because providing, it’s chance we not velocity new also the addressing high new are to quite This for immune to of not large scratching by we So Significant they But,

retargeting face So, headwinds business. traditional legacy products we’ve new our those won’t the in seen

Andy Hargreaves

you. Thank

Operator

of from Anmuth JPMorgan. next Our comes Please ahead. question Doug go

Doug Anmuth

model. just your take you us can moving Great, that frame do on can you about from I a a thanks. based here. think how new this just time hoping your on that your conversations And in just advertisers progress Maybe update Over And specifically? Thanks. was then what of mobile SaaS secondly, to front? thoughts anything if CPC are in with platforms seeing terms or anything curious of iOS XX place? you’re terms impacting

JB Rudelle

potentials to in And I clients in So, And for all fits is not iOS model restricting today want mobile clients. the the to maximum market. to yes, are is same the technology is after be again, mean, full IBT the advertising everyone the way. one the we consuming all that our idea address same able

our control market but expand not of and also our we by opportunity That with IBT models, deepen performance to some as pricing the so our bring relationship to and existing diversifying also transparency. earlier, And only discussed want our clients. we

be a And just best return then the they much partners, ad more want providing on us to strategic solution as point spends.

So conversation of this is open whole a with a of most long-term. new a to has us. general trend secure also on the It allows lot clients. creates lot and it positive momentum us It relationship for

Media way. quite It’s an because in very now all it’s this exciting that early, we Retail in the So time Media been successful we’ve doing Retail in gain for with a some experience relatively move.

solution We are now business. marketing to expand fraction a getting this to of this our experience

headwinds always when from XX, things. far, we again, provide other restriction or have iOS we can any Regarding we ITP guidance, include cookie so

is a a identity multiple it’s favor including on not side; two we is cookie One no years the in data access that put big not first think to cookies browser. on on Apple to two, will some have fronts. we ability were points, been and one in I to that place. the said, on two products on relying dependent relating lot, but secret graph the Safari going to for restriction This on make cookies as efforts

they doing by out we This on are is we our someone to their of learned or to browser. have of which dependency outlook like, future things want Apple access in on control how we the in our that can mitigate manage else third-parties. to policy reduce something from any we And is impact the from past cookies this,

Doug Anmuth

Thank you, JB.

Operator

Capital Markets. Please Salmon Dan from comes go BMO question next ahead. of Our

Dan Salmon

of which prebid, whether everybody everyone. interesting Project involved hear era Good in the Atlantic. IdentityLink in. with you’re across really like op-ed And an return Rubicon emerging tech their LiveRamp. afternoon, amongst thoughts to and Good that’s ad I’d you things that tend using with an to also collaboration players. see independent the more you’re to do JB, announced source. I’m about if on like whether them collaboration emerging, of CEO that Hi. more, is partnership about era curious, extended sort your partnership morning, recently. talking to open independent curious recently of I’d be

I’m CEO. And then also fairly your new in second, interested

a which in little maybe and saw bit mentioned the the seat. she prepared you remarks media you your about Megan’s around replace a certainly few in business Thanks. in did. evolving characteristics a background But You key her other at Nielsen, turning CEO to have

JB Rudelle

Sure.

all I for the the identity their trends walled walled you partnership, to garden big announcement their garden And manage this track biggest you every the at look think, yes, from in and further own of very walled restrictions, identity and the tend market Because, picture, for So, which uncomfortable. this makes happening the campaigns put measurements that something choose ecosystem Y. whole it’s system and their to to destiny by I on that control keep having tracking which they or not X is important very whatever think advertisers is behind restricting quarter new the one when their gardens. imposed to be And advertiser want. able see

role play. a very So advertisers, from I concern recognizing important to independent have players this think,

Then a when obviously forces, extremely powerful. much each walled are So we smaller us the become of collectively join we than act and gardens.

also. graph. good large a you has very has LiveRamp As identity one super know, Criteo

sense attractive solutions. and our combining tons it compared force very makes identity to independent walled on So, unique makes this and garden there, of the

we advertisers want were thing to tied want And impact to this very all encouraging. to market. very to we walled market the going is in And actually, strive solutions. this hands a last in the from their garden only So is they think of solution positive proprietary have handful have a because independent got the feedback the they

the is Which arrival good of to Megan. a segue

for work Nielsen she’s feel more coming partnership like have it’s the measurement executing Nielsen. with important than We for it’s know, measurement in in believe very advertisers where area to important players one is tech. have the to you advertising measurements expert As we different partners an from companies. an to like Criteo

and conflict that’s both conflict execution, the is both one So also garden of interest. issue of is a no which there with doing of measurements they creates interest. are media things, And walled the

in to lot And of obviously super be and So and right has the building help going think we their journey measurement mentioned, at idea, useful. I ecosystem. Megan with I like transformation on Criteo. experience a partnership is you to going top, And are in it’s the think transformation as us we in a she

manage I team a think to going valuable foundation. to very she’s this be addition the So, executive to

Dan Salmon

Thank you.

Edouard Lassalle

everyone of Thank your IR you, a today. and end This wish I’d Thank for will attending for you. any JB. you day. The thank call be now concludes to for follow-up. team our available good like all

Operator

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

You may now disconnect.

Criteo (CRTO) 30 Oct 192019 Q3 Earnings call transcript