CRTO - Earnings call transcript Q2 2021

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Operator

Good morning, everyone, and welcome to Criteo's Second Quarter 2021 Earnings Conference Call. [Operator Instructions]. Please note today's event is being recorded. At this time, I'd like to turn the conference call over to Edouard Lassalle, SVP Market Relations and Capital Markets. Please go ahead.

Edouard Lassalle

good Earnings and Call. and Second to Danny, XXXX Quarter you, morning, welcome everyone, Criteo's Thank We keeping safe. you're hope all doing well and

us for going today CFO, Joining our Chief After call Megan will Parsons, session. the and join Officer, Clarken; us that, is Todd Sarah Q&A share to CEO, are Product prepared the remarks. Glickman, on

transcript on well as as usual, As after call. website the our you'll find our now script investor and deck the

remarks to only a Before include from today Actual we our I'd business. you Criteo's will analysis based like number statements, and remind results affecting Criteo's get as reflect which on materially factors current expectations forward-looking that started, of today. may judgment differ of

earnings performance. today. prior and the today, well Forms required let most obligation release most We'll recent For undertake over filed do included call forward-looking release XX-Q now made against and our statements this as earnings comparable in otherwise period Megan. discussed our except of to risk information, in more refer our GAAP to as XX-K that, please the update any any the also metrics not measures as SEC. published with are during to our discuss to finally, all We non-GAAP directly law. in growth reconciliations are stated, year. comparisons it unless With same the And the me factors Definitions by discussed hand

Megan Clarken

Investor further importance in strategy of Commerce where our in the Day, Media our Commerce Latest been first-party our criticality cookies morning, a our Platform around we everyone you the Thank safe. of data good the end, strong lead and you remind for our showcased Media. On brands, highlight for attending hope staying has for and is to momentum year Ed, of new Thanks, and I Thank in the and this XXXX Criteo. area. growth and start us well developments all joining of industry everyone. doing today. our strength

steadily pleased in Our data. Media we're with X teams firmly topics today. and increasingly are transformation Commerce of: with priorities Platform. now And company's X deliver execution first-party quarter, Sarah, Together place, we Growth, we'll our again, I'm our this the momentum continue on around building our to discuss and and

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have We plus a sets comparable only large $XXX billion gardens. commerce walled to data

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our to measure solutions, years, audiences our them, line Retail across XX%, their steadily their to from their In brands on-site giant long-term XX across retail we with enabling Pac QX online through we untapped awareness performance the investing capitalize lead talent supporting on the partnership and grew organization. first-party thrilled new and strategic channel. or New new marketers XX% choice. XXXX. we're QX objectives. grew in the sportswear strengthen of either and Over America We the our including a we momentum We In QX. various American for South our key positions bookings way, and talent and SSP retail-first sale in With agencies who values to own duopoly. industry on retailers bringing in-store, conversions earnings by first-party diversification and drive In joined the and to and building and Criteo new Solutions reach them across to and XXX% and outcomes support of markets, markets. our In and our the and DSP compared in execute helped we Asia playbook. partner thoughtfully using build, year-over-year channels, of clearance continue second business the this Marketing solid as world-class the We're to their with their direct-to-consumer largest ad recently execution XXX% a launched signed #X QX and this develop spend. digital with customers solid year, X heavy We compared net past product. return our is reach away and clients' e-commerce their will historical this customer data Criteo this complementary from Criteo's consideration tandem and team through with saw believe recently sites across like shipped QX, contextual agency We in helped in Media, carry both now turn, audience the to momentum expanded with audiences layers to the working partner in retailers excited its transition commerce DSP them to continues this Execution their their for enabled consistently hitters we've our priority. a as When the we driven customer portions network, first-party Solutions, position QX. activate to focus this incremental by keep through compared The by buy have have worldwide. Criteo's U.S., more our board growth strong enterprise XXX% XXXX. are Helping scenarios business to the grew several to audience-based business client media grow

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On the new net demand brands. added side, we XXX over

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expanding the On Media Mabaya in the into exciting M&A area we front, acquired Platform online of May, marketplaces. our Commerce

strengthen strengthen we active accelerate vision. first-party further our M&A focused first-party and assets our With to third pipeline building Mabaya, data Beyond capabilities data, to regards an our priority. on CMP have to --

We continue differentiation. to advance our moat and

media and we will our providing to allows sustainable Commerce SSP. demand the holy solution that is we multi-hop is to be DSP our side first-party in the We both control spend, of a of what building think supply the us grail a know across the better value as Media for first-party an data at for and said data Day, our about. owners, propelled in serve data As a a side essence combination of This Investor marketers Platform reduce data by is it loss chain. solution the industry

consumer owners data and that is going. know and media Internet, audiences connected also the once longer on become to and transmitted way will both marketers where is no to only by opportunity first-party the for We this advertise cookies, effectively monetize supply provide exactly we're the open

the create mentioned We're supply partner investing our open and extensive sides supply data just all and with owners the continue marketers even demand large-scale an to aggregation I SSP third-party with drive in market, infrastructure we I helping and and demand access garden the open media across a garden. Criteo of first-party the consented base. of needed collection, actively us We broader to on earlier. to talked to already as provides data The our add direct about interoperability demand

assets. said While small, third-party first-party our further and us as in we steadily data Mabaya, around continue I single In our what all addition with earlier, first-party discipline about HX. open moat in data and cookies good QX sign-on business, source conviction strengthen delivered across our solution. data, has Google's first-party not our interoperable the to its we're on further strategic and short, for feel customer upcoming of strengthens progress team supply-side means as priorities our making we relying to changes Chrome Last, with delay

Looking same ahead, laser-focused the we X priorities. remain on

First, attracting retaining and on on the delighting best and momentum, commerce, accelerating clients focusing talent. brightest them bringing growth, to more and and our

maintaining our feel we that ratio data around post-cookies Second, marketer good leapfrogging And network. we've of third, do. across first-party everything media created high Platform. on about in our a and focusing Media on moats first-party on momentum I consented execution, In using say/do the the closing, Commerce competitive data, market

execution committed growth against fully is plan. team leadership steady Our to our

Sarah, Commerce be conviction provides back to the positioned we're in open invest wide in the growth. uniquely balance for this, transformation over our our turn I'll for and with means to win as Sarah? sheet Q&A. future and And With Media, solid Criteo. is to I'll Our it

Sarah Glickman

our Thanks, momentum Platform business pleased with Media Megan. share And and on QX the our EBITDA discuss performance in of will margin. yes, we across Solutions of financial Commerce outperformed the ex I QX, outlook we adjusted performance operating and are for our and we strategy. XXXX. portfolio a very our In revenue and for had revenue New QX and our and and TAC, XX% retargeting drivers

in accelerated dive Commerce constant billion So $XXX was over The our Platform $X.X spend the performance. activated and QX, Media XX% XX over currency. at let's media million our to growing last into in months,

the Media owners. As activates underlying we said that at our spend and Commerce our for spend media Investor marketers Day, is media Platform activated

value rely XX% ensure in from best-in-class on rate take to to on QX, in their advertising million. that on or our currency customers Our dollars. this grew revenue stores spend we the returns our XX% at reflects Clearly, benefited constant and tailwinds digital which $XXX marketing

ex This $X XX% compared accelerated of lower XX incremental and over to slightly than identity privacy anticipated. points revenue growth included TAC of million QX. Our impact,

revenue X-year expectations. grew QX Our of TAC impact. revenue margin with XXXX, ex ex in a TAC excluding was privacy line revenue on comparable And XX% to XX%,

remains XXX% versus challenging year-over-year and particularly all Travel XXXX. XXXX. still compared when XX% growing QX strong and budgets QX was despite down solutions, Our is Retail business across XX% XX% to year-over-year our increasing

revenue commerce retargeting growing XX%, by continued strong all Our driven our business retail. grew Marketing healthy and ex-TAC and trends regions including in XX%, execution in Solutions

macro for We of Criteo, solutions XX% grew new over grew the revenue audience basis, XX%, to by Our new a currency, omnichannel added Asia the improving driven and extended of our muted Solutions. with net live revenue points in of Japan existing XX% XX growth growth sales XX-point lockdowns and TAC the grew by Targeting XXX impacting close Day Retail relative of offset driven solutions including Marketing campaigns, during grew points currency, basis, revenue in grew now new and of due ex QX, XX% digits in constant constant by on America, highlight at XXX% ex ex revenue QX, traction Media customers. and XX% reopen. onboarding solutions. XX% high XX% All to total Americas XX TAC. as strategic from TAC TAC close our XX,XXX in brands, to classifieds. ramp-up XX% a at a a In by in e-commerce retailers XX revenue accounts our QX, EMEA, Retail Pac weak and in travel. stores Revenue double our grew Prime grew ex XX% QX. driven targeting our using customers by On large QX. are continue compared by points have was growth ex North QX especially of to improving still improving XX improved by currency, to of over to accelerating including customers. our We to in Carrefour. compared clients we regions TAC constant improvement to restarting to the ex clients offset with new largely Overall, Media driven activity excited points across XX% TAC in Same-client marketplace travel large one

We continue growth base. while maintaining invest cost our to in

constant was year-over-year adjusted XX% XX% compared currency, XXXX. EBITDA QX points up a to driving million up points of Our at X $XX up margin, X and

our $XXX basis, charges. X% R&D X%, million or the of employee or On constant higher $XX increased for price by at social XX% expenses through currency. stock Media investments and are QX up we contextual, commerce enabling Key and terrific line solutions. were funded insights growth included In productivity, with Our well selling, go-to-market we currency. new before million, XX% as commercialization top leverage up constant Non-GAAP of investments solution at largely including same that grew X% R&D. product only in and as on hires million as new costs Retail ramp OpEx QX, increased in $XX non-GAAP impact

back and We are also processes upgrading tools. office our

reconciliation, entirely $XX QX, costs a related estate our anticipate of We footprint. restructuring to global of our million pretax of can driven by employee real transformation our million much and shy XXXX, non-GAAP to in see just portfolio real we expenses estate almost and in you around downsizing pretax extent, in $XX and severance. lesser restructuring As transformation largely office incurred actions

XX% to Moving and depreciation amortization our the our compensation increased increased due and price P&L, expense XX% down share-based stock over period.

Our XX%, solid our performance and financial income in Due projected a mix, our cost rate revenue net a rate business operations XX%. regional expected reflecting tax QX XXX% to income, now increase in be of management and expenses. and to drove stronger increase is lower with from XXX% tax XXXX performance effective

average XX price. X% was was increased a as EPS our $X.XX, weighted around million, XXX% result diluted up count EPS Our adjusted XXX%. of $X.XX, up was up share stock Diluted diluted and

strong Our cash execution cash generation continue and to flexibility. position ample provide

and and have the free QX, of flow worth buyback cost we million $XXX was commenced Since repurchased $XX.XX XXXX, cash $XXX including the QX $XX Our program marketable early cash at QX. strong close in sheet per shares million in closed to balance share. an Mabaya XXX,XXX acquisition. shares, $XX with average in we in $XX million Criteo of repurchased We securities after and a million million

to I'll our our Media and expectations including Platform, accelerate QX our August X. now which guidance and liquidity allocation Commerce providing capital have leveraging data of outlook our reflects allocation. financial as with process flexibility a excess XXXX, continued first-party robust in We maintain organic further goal business billion, for and total to provide of growth capital strong today, We in of investing for $X assets. our primary strengthen capabilities our M&A

year-over-year tougher reflects sustained for in comps in online guidance and growth HX. secular contemplates Retail Our commerce reopenings, trends

in largely Apple's HX, expect $XX iOS. we and million, identity over impact by of levels down for from limited For ATT incremental XXXX travel, recovery driven XX%

of TAC we XXXX, to constant fiscal revenue are X% currency. our for guidance ex at For increasing growth X%

XXXX. TAC, $XX about strength. in we of XXXX. impact ex line adjusted solutions, margin over guidance our to expect maintain XX% demonstrating relative our and privacy increasing Platform leverage And are XXXX million are in our to EBITDA Media to incremental of with our We our operating strengthening We top assumption also new of an and XX% Commerce grow identity it fast-growing rev

between approximately to QX, flow We XX% revenue conversion XXXX about our momentum expect in XX%. million which and free and X% with for currency. to XXXX $XXX at we to In we're growth million see between cash around Platform $XXX expect our guiding the EBITDA grow We to X% XX%. and rate, retail to or new be constant Commerce TAC solutions, Media ex similar in continued in strength

be higher and adjusted our impacts. areas bottom by privacy reduced in identity million expect in EBITDA higher $XX make and expect investments growth $XX incremental RSUs. charges We social our underlying for QX our million line, for growth as million retargeting we On the and between to $XX we

our Finally, excited Paris in team. be with am amazing meeting our to headquarters I

work-life teams. with through delivering Criteos enables execution Our that been and to the have teamwork flexibility and platform innovation, closing, shape we by broader workplace business and is results continue terrific flexible have integrating offering while enjoying, integral our our our be in helped powered our collaboration In momentum and global hybrid pleased balance.

We the floor and providing for profitable shareholders. sustainable long-term the open laser-focused value customers questions. world's your Platform, creating on with and our driving are that, now growth I'll for And to leading Commerce Media our

Operator

[Operator Instructions].

Anmuth Our Doug JPMorgan. question today comes from first from

Douglas Anmuth

I two. have

I ask of the a anticipated, outlook. and out seems changes to like iOS obviously wanted First, just companies. slower to XX.X other privacy from you've heard initially number were that than It roll about

perhaps some? privacy for of thinking get maintaining and get also, about these the any on maybe how UIDX.X. million just with Just an also you're deprecation is your and there. sense with And And innovation products you takes impact then to terms more view targeting some wanted gained pushed on hoping out the update contextual side, was and in just just that the of in $XX a the of I advantage of to puts Google year, there full some

Sarah Glickman

the... take I Well, can

Megan Clarken

going through Go on. Go it. Go Sarah. to it pass on. you, I to was

Sarah Glickman

Thank you. Wonderful. Okay.

impact. can I privacy the take So

we the -- in for around anticipating And offsets, terms the iOS And both little slower-than-expected is to first have So a yes, And to have iOS you're being we rates half, privacy to opt-out a XX%. ATT. ATT roll than we the out. due higher higher right are due a half, seen in that is mainly sorry, consent mainly about we had of -- the iOS slower less the in explicit of anticipated, increase, the anticipated. slightly in than actually largely terms in been second

-- past. continue the seen in wanted update we've We we single with the benefit our So went And outlook. assumption. to that's to take what we every middle-down-the-road the quarter of

So areas comfortable you we we about on risk of ensure feel focused for that hand feel I Todd, some XXXX, comfortable mitigate the that as can And over to we're and well. we to that take developments. through who those can

Todd Parsons

Yes, with sure. that and about It than mind us get or the or to of IDs. things it mobile as address fast we just top start that cookies an This remains as your alternative already tune question to a in ad further to from our reliant we data have. to gives deprecation on contextual it timing, specifically, contextual product and tactic Google to time more market third-party product. are impact had extension a of Doug, the relates really,

how good well. wanting growth. And very very, is are sitting products, growth, by our reflected very going Solutions the New feel our market we things So our of about new terms in

Just very terms us to to alpha X new bit, And our call, Japan, an results. markets, a last is in opened we promising since X into going actually we contextual dig total. of which its have in bringing tiny

meaning cost qualified And customers' per importantly, We XX performance metrics solution. incrementality visit. traffic And have mid-funnel that qualified advertisers drive, to the able unduplicated most of new quite exceeding gains the we're that about websites XX%. good for audience our to using are for

stuff. continue as and tuning, not in some market product know, overall product strong. started while we're So The cookie-free capabilities this that we be on-site product. do market firing advertising, but core have and the good of product to say that with on you solution. work. we are just quite bringing We've both also to and would all extra And the other time contextual performance the continues personalization recommendations dynamics the window into we recommendations grow match our extra All is, and will also so that to to a use to I the getting will cylinders. performance of so

Operator

next from Sarah question from Simon comes And our Berenberg.

Sarah Simon

I is to Europe, being a referred travel about move significantly. bit. starting have U.K., still But very much. around think view quite going travel people if you're down distorted had at least slightly in you a have But on, to we been questions. in two i.e., the not what Sarah, really I

you of that the in I travel look on was European Because Retail of QX, Retail And Publicis segment. anything working I terms Media. obviously to Does It's as Media. through concentrated in think the how So you does trajectory of CitrusAd a guys? recover? most then question your endorsement for ringing it's acquisition change you think But Publicis' anyway. was with guys second

that anything interested deal I'm just how might So thoughts on that your and in change for you.

Sarah Glickman

not U.K., supposed I'm actually the which parents to happening be yet. going my in to see is

hear you U.K. I travel. on So

I to seeing retargeting coming starting continues not are were And fly, back, what is not should where travel people is be that for business are travel, coming the are we assumptions to we our sluggish. but quickly, say. stronger, that's So which back

We footprint aggressive that a travel, in the a So single a getting definitely search they're some but say, every anticipate of that market. coming day, larger coming base. large very let's share single week. We're do it's from low every getting back just and is players have, more of it budget,

rise sleeping not dragon our anticipation yet. is that we're -- seeing So that

close it's our we maybe... is XX%. XX% be think We this to be going And versus, be will let's anticipation exiting it to XX% that probably then So year. to say, expect we to probably down continue

Sarah Simon

thought it It is have interesting to lags. that

activity. think You about should and normal it basically funnel as lagging stuff upper like search

Sarah Glickman

and stronger. mean, Search extent the with. kind all I they is that. for definitely other competitors is ensuring search Yes, would I that certain correct. bookings Yes, are say We've -- a to seeing work seen players travel we're seeing some stronger. of We're that,

this to, people be mean, in day, see retargeting again are to say, I'd of really teams, now, focused the but growth kind they world. less Retail of a on CPG But right expect coming activity. and it up They first-party had to as know move lot close and look to to that. pick healthy they -- there's know where starting opportunity, large where right that travel the emphasize, especially -- they're just we verticals going. our we XXXX. travel budgets but and kind we to forward we now incredibly We after see being do banner I on year And every with We're data of in they closely nowhere the how working want go, massive and as are new

question Megan... second maybe I think Citrus, on the

Megan Clarken

us for and can take go a independent one. what with positive a out hear the past. to Citrus us what of Citrus it see we to will couple confident a may And to we have budgets Dentsu, channel behalf large is clear and pretty from that them their -- is is of that and is that that is looking Retail us down a under of been rush It yes, of We player, opportunity company. up think want already The is We is to now exactly Yes. Citrus of because they a independence. that great TAM. offer company. the them become generally Media And WPP, know are and There TAM strong customers the is on one which player. independent calls in our has Omnicom, is positive we the take as to area, knew Retail don't And around that validation owned Citrus, them stands brand of to or play. out focus see for to under they're a much, player. small that part market. different right Media a direction. quite a going of that's is what by of that bigger that a Publicis Publicis really them -- that we're having billion that getting sign They'd Citrus but Publicis. -- the in of aggressive yet, Sarah, $XX we're reasons. One will wing Retail the Media seen brands sort much Publicis offer And taking an so in I've was slow it you. a terms I good in you're

And we open the Amazon there's But as for outside to of aspiration we're focused. Amazon. that's players. Internet. the several biggest we've said player where And advertising before, is So room of laser the ourselves as be see our

top have strengthen the Europe. to have U.S. XX% and retail retailers of media. that We the the portfolio in Mabaya acquisition we in goes of the just And

independence validation a it's as clients. a incredibly service of yes, is area, our we and big as So our important this

Operator

Matt Our comes SunTrust. Thornton next question from from

Matthew Thornton

as Media Retail Maybe a couple well. on

guess, think how spend guys and us in consolidation, I the, the X look First, about the obviously, secondly, us in an look we continue and how rate flow as there in equated ebb kind than of the business? outperformed when to then SSPs the and than puts logic less X. not up revenue guidance is been like can But through market, TAC at it the that second walk as versus mergers just ebbing you the in just remind to of the it you to and coming quarter. that I'll gross back growth, to and call terms example, you when you ex has traditional business takes and take will when that greater And flowing

thus look this would really something a be to curious like and goes that's Criteo haven't if at category and be that, direction like accretion the other way and someone thoughts a go. there great. in continue to logic I'm space, So PromoteIQ the you there they if is the worked. had will or Any this

Sarah Glickman

the question. And who part. to happy the picture will on sure I'm others will be I'm part there first that second also, of Well, address

this we Retail said we accounting gross our to revenue from move we platform, revenue. quarter that actually last QX, as Media for to So net accounting moved from for

and words, the revenue in our RexT So same. other are our

for What show So we're with RexT really revenue accounting, no up traction. why we numbers. within our We other impact than at our there's those started gross we XX%, Yes, customers, was activate to effectively XX%. see we our continued look But and is that's those that metrics. up spend, which include and the tables. is we very amount media happy

second hand So to -- part. Todd the for and I over can

Todd Parsons

has SSP. been And of understood traditional think largely an of question is for your the business which reason I anyone audiences that, a is it's those views is on kind so who correctly, able audiences take an those Matt, both means that if and expand monetize that you that case. Retail be trying Yes, collision And where revenue I as Media, traditional actually a because sensible we off-site between the the marketplace off-site. there can more to And thesis. one, with is total would the that available on-site aggregation to to reached like position to far be blend which means is monetize to their on-site more on-site revenue, audiences would that supply have also audiences

Operator

Our from Securities. Andrew comes JMP Boone question next from

Andrew Boone

I down? about How building of kind grow just that audiences high Can the are Can And How there? talk you're go-to-market you that is are go? the are that, resonating? that that that what you just seeing about direct really outside products your with think can like integration then you you just of XX% to talk a And drivers guys of break mentioned strategy? nicely. the now new Retail solutions continues publisher. Media,

Sarah Glickman

wants know to or So jump that. in Megan if don't Todd I on

Todd Parsons

cut Can on sorry. I'm here. the question? you first Yes. I my just connection repeat out

Andrew Boone

Yes.

there think integration the audience that through direct I So XX% put you of guys now publishers. with stat the out is is that a

time of the you XX% that kind think was last disclosed I that. guys

deprecation then the are clearly, and guys. cookies a question so what basis, what the go-forward importance is the how a that? first-party of on strategic of And how of driving can point, get, At lever you data, high you for right? guys kind that that's And

guys you of are And kind of update the progress doing kind kind the how there? So go-forward on an of that?

Todd Parsons

Investor heavily into take obvious that pretty The looked tax the overall be removing owners. between marketing extraneous going could marketers reduction marketers leaned that stronger extraneous talking and call rates Yes. tech our at to reasons, we so achieve were what of rate we're take mean, the and for I as outcomes kind our on results our or is we rate what what back media take dependent of Day. direct you're about and connections, commitment of at seeing really

rate. direct going our take By able that marketers doing we're from is we're aimed expense. that saving connecting them. squarely And reducing to additional the we're for so, SSP So doing achieve in direct, at obviously, better outcomes

to can investment verve. look obviously continue us you that for So with

the connections we're that able with reprieve already domain into enable have network. so racing data owners get them a world, from of obviously, and first-party we getting media more bit their those activate perfect, gotten As from that to but to ahead their our we a media are first-party across

supply our that, the a only direct achieve through is of good to have connection Andrew, SSP an base the that investment. gotten Hopefully, our hence past, way So a we as user not portion helps. in

Sarah Glickman

part Yes. Solutions. And I can take the on New the second

can move a the there's that's and are up to customers, few that funnel largely our they we data them themselves, yes, we're XX%, up can and as how how first-party So to on also is to look and there. areas incredibly well. they performing they Audience due focused especially help look

back omni, that's seeing getting stores, buy-in for XXX%. into especially terrific focuses the about which back-to-school QX, we're then in preparation solutions. the on So retail our stores and up in really on And

reopening. the stores that's due to So largely

terms this. I retailer some I think, increased Retail of Media, In on our year-over-year. mean, pretty stats same But XX% revenue terrific, there's

of as we've this by So course, in-house customers. won deals one seeing that's customers with we're of awesome extend there. Best into the And really all by traction brand time, where we're not new to also just renewal some morning we up only going but Buy just and ramping brand deals lot was country the our and a that then, and other key continue country

robust. Contextual very it's So is relatively new.

buy-in said but as earlier, number, So terrific a well. as Todd small

what are new and our having really to as the to especially across board, up, them how conversations really more And can that's we're we're activate data well. around fulsome first-party spend solutions So we seeing. through with think help ramping all customers, media

Operator

from next Macquarie. from comes Our Tim question Nollen

Timothy Nollen

back work you're potentially I'd and IDFA to of like come cookies doing there. to that the and impact the

be and in Just looks that you're in from again like identity then worse calling impact issues. QX it and privacy incrementally to clear, out QX from

impact in 'XX, even why up I is think, can that's is And next impact there IDFA no what guess, and know the your also, clear, terms have the think year? numbers? be and then from of mostly the of seem it if elimination, meaning mean again next be retargeting flat getting the to given what worse cookie though again any taken that about anything, in if XXXX cookies what And installs, year opt-out rates most to I you currently delay are? we platform in to could in cookie business Just new place there's will

Sarah Glickman

can privacy Yes. on take about I But terms about pitch year, of the $XX and in be we areas. the to anticipated that and of at part $XX can wish the around $XX impact expect half million beginning of or we the first overall Megan in iOS can of of Todd other impact, so kind million. million that of now, We're impact. our

was So where anticipated. that later during the QX, -- was a implementation -- very had we than

really end QX. kind impacted only the that of of So

what quite we're information. are, say, know rates we So seeing would largely new I but those today, opt-in that's

slightly. we've iOS our So for IDFA adjusted assumptions

end ballpark Day. explicit that, the of in better. which would is at where our So the I a And anticipated small, had we're we to kind Investor on there's say, of concern slightly QX still of offset

So we accelerated it's did iOS. -- a ramp-up of would anticipate this be relatively the

in anticipating largely implementation. of are ramp we QX up relatively so And the was what late impact and the to for because from a QX small impact QX

we're Todd So we'd we're I kind of then I on disclosed. say, seeing that the doing there. and that's within, expected and what over numbers would all can what hand what And But we're to seeing.

Todd Parsons

apps seeing Only to numbers that thanks, those that, apps haven't a our through of the But to lot -- from of can we're is against which still and There's the as be ATT add us a one rollout. Sarah, Tim, model. more reach. our because And of conservative little we of thing network slow come being to accentuated overall add large implemented. insulated would think Sarah -- opt-outs impact single bit you

is that advertiser we course, consented see too. have how through breadth And audience is a we want So match both we much on amount of publisher side. of come have to huge and to what

backdrop more specifically mobile we at across marketers But get how to opportunity in to of the as because many at guidance. a so what matches is at higher the be conservative so question, looking the and audience about better web, And same that we're apps, with model just time. app have you're seeing out. seeing look want through degree conservative data And able as that's both. and just targetable the many So of much apps to we because numbers to well a course, our audience match how model we and we're we your of those

Sarah Glickman

I and jump Chrome. just in Yes. retargeting on quickly could

So retargeting say, we I that are is not now, seeing XXXX. our giving to we would into XXXX, continue business but that we guidance right buoyant, and expect are for yes,

going to that's -- continue. traction seeing, we're are. good So see yes, we about the we and where feel that is We -- good feel about we

Operator

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

Daniel Salmon

renewal seen and a pretty Shopify First, seems area. a as for players in bit Megan, old often but like e-commerce Instagram is that affiliate little a also it getting of school with tactic, to be marketing advertising

wrap mixing you're themes what means the and like what all Google's with, it high-level speak your X that the high you're fit competitive but into just Google Commerce broader for forward? And partners from it delay to you're as from from the delay, itself, hearing Todd, dust settles level involved your path about Media Chrome why hearing of hearing little just your most what what after maybe a then of positioning? groups maybe for X technical does the about up, for you the landscape you're industry how So important view can happened the are

Megan Clarken

an Todd's Yes, -- I'm around expert to marketing. going affiliate

know more pretend to So going to than him. I'm not

So it. answer to him I'm to going get

jump Todd, in So there.

I think you're that. chomping at

Todd Parsons

affiliate lot on you point, instance, our We lot opportunities you a we're there's -- do past even we in video to that Cool. on up stream, haven't the formats actually as focused affiliate. the Thanks, There's to Megan. well. we video, was before you. really brought we'll now, display of glad a our point. to owner things for in as in business good want get that Dan, and within media retargeting. without Right I'm of that do so done from testing shoppable network hear

us hear an the makings of those course, is from on is of of that premise the affiliate of later what But that, untapped. year. in on incredible have our You'll look we that like network the tests own

about to beginning view talk of talk really on are testing very Instagram we'll So looking an the that you're developments aspirational interesting we so point. it and Shopify. There's because and much testing process additional quarter it's I suggesting don't at those over at are partners in next we this X the important shoppable that. But think about or on formats some

So stay tuned with affiliate.

Daniel Salmon

on just And high level...

Todd Parsons

So you asked about the groups. industry

Daniel Salmon

Yes.

Todd Parsons

and have really a solution people time The practically the thoughtful are What position owners. design. community more might lot cheering. entire to just media work it on the how our approaches of taking that is better we teases show the our because be to A that are with that of we people I marketers to be about leveraged mean, of behalf manage and that lot -- of Google think out first-party industry happy data do I groups, way through more can and are Criteo

We more have to lot out. a work time

hopefully FLoC about talked do origin FLEDGE with forward we've on we'll trials, what call. going the So are things this

actually haven't capabilities, to have we in test that been cool. data pretty is to hours is asking thing of those The the which community other relation we that

for the KDD that competition. machine learning you'll So in it We some ad call future press here. the look on near

time. our lot be didn't data going the And see possible, how that have can to or we a wouldn't FLEDGE. a do. a And more to own as ecosystem used if FLoC us it we just be improve you're show just Dan, feeding with of to So more better now

while just a date anyone wrap. That's than really -- benefit these to retargeting it's in the it's really So new rocking having zone tighter is We're landing able on. that's things without develop maybe good from. position really, would a be to

Megan Clarken

us whatsoever. And said platform been that more that, opening the incredibly our on first-party the And is the all would bring and the a around it but Internet on. the Commerce It which go capabilities middle year, first-party of data. more laser-focused good It hadn't they're happened time. Media solutions, just that. next for want time which more it market doesn't gives been would world open use we're our that. because for our to DSP across market a it us platform And gives if time. of what provides of ability before time, gives have the the solution our it using I in Media of the have that buy-side It's that course, for back or to tax thing on uncomfortable SSP It board market a that market provide can to ready that's sure that return we Criteo and the connects between. I reiterate offers ecosystem marketing equal to Commerce to investments, Yes, delay. to that and the strategy more takes the out Platform a is Chrome on using what sell-side change get better tech ability in I noise the make gives their

and as change time -- change gives We're on doesn't for go get market So We to can. environment. we're fast us the again, such a it. more in as come just and doing. it does ready on laser-focused it we And possibly what board what it do, the

Edouard Lassalle

call joining. Thanks now thanks, Thanks, Sarah and today. and everyone, a Megan. concludes closing, This Great lot, Todd. our for

additional available is any team as for request Our usual.

we good Bye-bye. thanks for day, you Thanks. joining. a So wish and all all

Operator

thank conclude do that Ladies We attending. for and conference. gentlemen, you today's does

You may now disconnect your lines.

Criteo (CRTO) 4 Aug 212021 Q2 Earnings call transcript