CRTO - Earnings call transcript Q3 2021

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Operator

Good morning and welcome to Criteo's Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After the prepared remarks, there will be an opportunity to ask questions. [Operator Instructions] Please note today's event is being recorded. I would now like to turn the conference over to Edouard Lassalle, Senior Vice President Market Relations and Capital Markets. ahead. go Please

Edouard Lassalle

good XXXX and well Welcome Criteo's to Thanks, call. morning, We quarter earnings doing hope third Roko, everyone. you're today. all

are for CFO, from in also our in us global join CEO, Officer, today Megan as will well Joining Chief Product Clarken; Glickman. Sarah our and Paris, Todd Q&A. Parsons, Paris Headquarters

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

will include Before as that today we get our judgment, Criteo’s to I’d of only statements, you remind forward-looking assumptions started, like analysis reflect which remarks and today.

required may from update law. of to do Our differ actual a business. undertake on not expectations any number forward-looking results affecting We by Criteo’s materially as current statements obligation based discussed any factors except today,

the also information, XX-Q factors of non-GAAP today. release, included published recent please our earnings our to metrics release GAAP We'll well and our in Forms most Definitions XX-K reconciliations more are our SEC. in discuss refer as earnings the to discussed as the most and directly measures comparable performance. with risk filed For

unless period Finally, year. the growth stated, Megan. to that, this made it With hand me over in let now prior the against otherwise call are during all same comparisons

Megan Clarken

strategic on we’ve and of steady and transformation reflects delivery our anniversary strategy growth on out each of everyone Criteo. Ed to and momentum of quarter high today. second I'm close We guidance. company laid profitability, all announce and so strong and particularly the delivered another business double-digit our good in above high Thanks end with and for morning that my our to pleased you yet sustained thank our priorities. joining us QX results progress our The the

today, our business we our deliver with us regards drive then key or discuss call more We Commerce outlook. our resilience to party continue key in Transparency, value. discuss talk capabilities, Platform to quarter progress, color our cover strengthen quarter priorities. in growth will data Platform on the performance our about ATT, expected Apple’s positioning and additional first provide On Media financial against our sustainable and to App our Tracking and shareholder I’ll detail Commerce our as Media continue and long-term our third highlights develop third Sarah to

with vision Let me of progress. start commerce overview an our media and

future ourselves As delivering you differentiate advertising that for scale the serve marketers know, at and the machine commerce shopping audiences the open We media, to focuses owners data their leverages of Criteo that the target by consumers commerce best commerce on media learning throughout we and digital journey. performing Internet. on

we’re global ad Media reach product largest revenue marketers gardens, $XX Our set rich or number billion assets that of large media. into owners holistic Active to million huge consumers in commerce working continues our commerce-focused differentiated reach in with capabilities of and data, walled U.S. a retailers powerhouse rare billion a XX and in Europe, best owners strong to It’s already of for Balance a data media Retail Daily offering customers playbook access, transform monetization. for media Similar in exemplified crowds solutions relevant capabilities to XX,XXX data-based advantage. unique outcomes access to proven from generic of highly-relevant, and by that world’s in ecommerce commerce and highly commerce suite performing commerce the with years XXX the With a Commerce activate monetize highly Media combination and our us a first-party AI. expertise in of in marketing the of commerce of for data, Platform to identify, and first-mover commerce expertise consumers data offers media unique able Japan Users, a for have media grow, data of Yahoo! the top-XX thousands media scale enables and requires $XXX and direct of and global marketers, XX,XXX various Carrefour first-party sales measurement Macy’s, and New AI access including to, like to with over that Driving audiences consideration audiences. sales, the we consumer AI, the like and retail and we’re drive

to Addressable Our to last Total serviceable by expected market our per XXXX, growing billion annum Market is reach compared $XXX year. XX%

all continuing to We’re on existing huge this on laser-focused across our markets. gain executing while opportunity share

While has have lots we already, to team done still our great do. work

network, dataset. our media recent moment continue We color direct now broadening provide and first-party on our to to to the focus expected important much on our to customer more base, and business towards our want additional a with our supply I than focus first-party strengthening growing given web-based note on ATT to take this. apps. advertising It’s regards that oriented Apple’s business is resilience

business. While apps, part target is we do small a our in of this

of we’re players. impact ATT believe than mobile more from insulated we Apple’s the result, a As much app-first overall large

Retail Apple’s identifier Our impacted onsite not rely ATT. therefore by business on Media third-party not is any does and

total web limited Apple than less XX% to in app, business, our of Revenue and about X% on our app. users October Solutions exposure including as is well, as Importantly XXXX, ex-TAC Marketing to across of both

that will privacy of ATT the for already and Sarah to part from iOSXX shortly. million shareholders, expected that had impact communicated market, in our comment is and the $XX reflected on impact transparency identity and to we the XXXX commitment previously As changes our with

serves a we for the make it affects and opportunity confident race years environments deprived been we for identifiers. superior we’re to in ahead two best and ago, consumer, in our say alternatives. today. offer the an journey over believe market to this serve gain iOS drive tracking enables are the on position To harder to While and media Apple’s third-party alternative to changes this and started Chrome years us and We’ve performance solutions transformation to way, our of to access another that owners’ in as ability as data marketers working for understand serve

on inventory users. Apple First-Party us Platform, to commerce Network, privacy-by-design our alternative, Media audiences identifiers, to by Media outcomes drive build consumed allows and addressable built Commerce Our collect on

million advertising Shifting with addition, we market population quarter of environments engage users consumers reach alone, market shopping in just engage This device opportunities largest on multiple the biggest with which the the the broad single highlights. not XXX world, their daily to our that over plenty we reach globally, Apple our they par In of Facebook's means of U.S. their and third consumers we on in interact. along journey. to but the XX% U.S. reach in app. have and active In

execution, data. priorities continued We and first-party our to strategic deliver growth, against three of

double-digit quarters We We the at New consecutive for delivered +XX%. second we’re pleased driving quarter, growth ex-TAC in four up Growth. growth highest achieved XX% Solutions And at our First, the in Revenue our constant new new represent growth now accelerating solutions fast our is key This our in our diversification, that pillar of total XX% business, solutions QX. of transformation. our to a three up compared revenue points currency.

Execution. Second,

Our grit, with across portfolio team solutions media continues and entire steadily, for owners. and focus to execute marketers our conviction,

with everything said I’ve Solutions high largely we’re strongly, a Macy’s and As we solid in quarter, BonPrix. by like every driven performed committed Strategic that customers Retail growth maintaining do/say Marketing do. to ratio

growing despite clients Core spend healthy, identity strength and impact from remained expected a business. the also experienced in restrictions. We X% solid Retargeting retargeting our

business contribution Agency XX growth and across willing across headwinds, our Audience-first XX offline We in incremental strong focus now growing our growing to within as compared points New to XX%, XX% identity with reopen. Marketing close up Targeting Targeting online that growing QX, in and our offline, as customers their ecommerce area funnel entire brand economies represents of Excluding Marketing marketers bridge and XX%, remains to New Audience-first Omnichannel, our investments with the and online and they product from momentum with our our actually Solutions partner increasingly consumers points traction us, Within about of our marketing a from is to since worlds Growth optimize increased for retargeting Solutions, Portfolio, accelerated solutions grew the the steady marketing accelerated marketers partners. everywhere both retailer Solutions to helps and increasingly spend target enjoying Solutions agencies QX, customers, see us. XXX%. XX%. with.

customers, retailers which Retail on mentioned two-year our momentum provides see XX% Shoppable delivered our driven Todd Year-to-date, clients Day. Onsite Lastly, the by and Media goes Retail very of already XX new stronger well. Canada, for growing as for continued through single marketer brands we and and our offering in XX% is offering the basis. accelerating U.S. ads we’re Retail see by and Investor compelling growth our on Media launching This are an one-year We We Media momentum Retail new Retail Close both accelerating us, in Retail accelerating ex-TAC, platform. We largely we U.S. unified opportunity very for with exciting versus our points our the Platform, to Walmart on globally Media, network effects a RMP. results. that growth tests our BestBuy and impressive of video our grown retailer including had business, adding in XX%, at retailers Revenue early and encouraged Media of XX Platform, In the a QX. XX business Douglas. launched Media retailers has by top

Lowe's. programs We’re Beauty announced also the including Platform and U.S. media large thrilled recently to Media players of Retail retail have our power Ulta

the strong performing in accelerated performance expected our beyond their addition, offsite successful with which our properties line we solid commerce with to expectations. audiences retailer during In to acceleration retailer quarter, in pipeline by drive marketplace business, continue to progress to a business make our Mabaya, the brands QX. And of allows on Internet, our acquisition good extend open delivered

priority Our first-party data. is third strategic

monetize the effectively on both first-party the our audiences said we’ve internet, owners beyond supply connecting advertise cookies. and for once before, open industry become third-party marketers finally way and moves media only commerce the will to As

progress Media. securing continue Retail We to data make first-party via in

on is our our built first-party first-party business, Commerce strategy does and any which is lead whether cookies onsite around anchored IDFAs, and strengthening data. Platform Our identifiers on rely Retail of our entirely Media or moat data not third-party Media further type in

increasing via We including addressable product, on are we buying approximately data evolution ABC media to web securing The actively media our open supply-side upon our of Direct a through and owners network, our LA Building XX% also legacy continue of direct our media internet. with to. like Today, Bidder directly first-party power full we’re working to as in integrations direct users media publishers, make the owners first-party data Times part daily access first-party progress with to the active platform. have our on

partners. our their allows media Our owners, Media our Commerce SSP deep our scale our In global over secure publisher the Platform, our addressability. quality media our larger Criteo buys giving relationships purchasing reach Last larger larger company publishers deepen direct XXX remains ensure business our with pleased and and our marketers DSP, direct quality relationships direct scale, strategic based That’s with we quarter, Media’s ensuring With by with direct buying on our XXX through publishers on our or with discussed transformation. through leverage key we the of us closing, with other to and executed we’re direct the very market, we’re And supply assets broaden and to buying our short, Retail direct up, the sources why, drive audiences in In initiative to signed advantaged expanding of of including their data. commerce through success. uniquely integrations, best scale, direct media. inventory the the marketer a new through to Criteo the top access bring data that positioned players. typically commerce with unique focus to publishers business every publishers matter most first-party media to long-term to third-party media sustained the the and integrations SSP key paths on with greater we more data in internet open Gardens most also properties demand third-party consumers first-party bring alongside to and our momentum demand transparent Walled already monetization and

on priorities focus of with We’re our growth, of progress execution making steady data. delivering and first-party key each and

shareholder Commerce expand best and to open to value. Platform to internet, turn further our our Media I’ll the continue Sarah? us guidance. audiences financial that, long-term to positioning for With discuss over on We Sarah performance commerce and sustainable the drive growth

Sarah Glickman

driven highlights of and Megan, such quarterly the for XX% growing $XXX growth rest XXXX. highlights. by Thank X%, our well Revenue today. for walk customers and presenting performance I financial as be through existing with to Starting everyone. guidance as delighted XX% you you, I'm with driven by morning of clients. million, a our will strong good financial our new year-over-year was QX

favorable by in to spend XX% The $X.X over total growth XX% Commerce media by over Revenue and activated XX billion ex-TAC close currency. Platform Our constant last pricing. was QX, grew months our the Media to growing million driven $XXX revenue million. was $XXX primarily at

incremental As incremental last previously in our excluding privacy expected of guidance, Revenue privacy two-year year. On estimated an identity communicated a to million solid showing grew and momentum. and included impacts $XX compared impact, X% basis, this ex-TAC

Notably, XX.X% X%, brands, margin the New ex-TAC Large new points year-over-year, marketers Balance. demonstrating platform ex-TAC adding our client Client transition as customers by Revenue up retention wins base depth in the our Retail close solutions. grew grew to to Retail remains Our X,XXX represented revenue, we close clients names customer Media acceleration QX. XXX basis XX% and year-over-year, Media new our largely our and and of Wayfair Platform. same-client driven to of including to now of use clients XXX breadth of XX,XXX customer the our as include landmark Revenue than We XX%. and such more live net Lowe’s,

our to business. physical shop products of small, solid XX% across currency constant at solutions strong more as while enjoying large to verticals, two-year continue and basis our Retail at and are sustained online business, on demand, heading the consumers our adopt driving performance-focused Looking our a reflects momentum in back stores. Retailers, up

Travel QX are clients business, increasing Our the in particularly signing slightly spend new with we and is U.S.

regions. balanced and solid remained performance all Our across

Travel. constant at by in customers, and driven acceleration Revenue to with with Americas, in performance Media U.S. continue both top with XX% and in the Core up brands our large Retail retailers, currency, We and business strong ex-TAC momentum see Strategic new Retail business

in of to ecommerce We leading roster retail customers, market serve top position the Retail continue and Media fast-growing our U.S. are the proud in to and a strengthen

with by currency, Japan South-East strong in Korea. and solid Revenue driven constant Asia and ex-TAC also our momentum, enterprise Classifieds, growing higher sustained Asia-Pac of experienced XX% the recovery at performance in business Retail clients

country performance, EMEA by X% constant Our performance with and currency, ex-TAC Revenue verticals. at growing reflects mixed

see We spend travel in continue offset France, notably especially one strong partially Europe-wide in and customer. to by large from in traction Media Retail from customers, Germany, lower Retail

Retail Media on dynamics. note quick a Now revenue

a than X% to to XXXX. now As we QX, basis Platform, compared progressively transition revenue, accounted for of Media share Retail all clients Retail our Retail our about an Media is Media our in or increasing on QX, net XX% less in

As second platform. we QX, basis. ex-TAC ex-TAC business in growing from the is XX%. our recognized strong, onsite a by XXXX, Retail our QX underlying this consistent transition, Media’s million transitory to $XX Retail XX%, Retail Once Retail on by lower expect reflected accelerating to ongoing Media is to will Revenue client extremely grew Revenue the million, of remains performance from the and complete, year. by which compared and is a transition be part revenue Media this of XXX to result prior XXXX revenue close the media spend a This Year-over-year, $XXX activated to impact linked Media migrations for

for will result, higher Revenue prior periods. to ex-TAC a drive Media margin Retail this a compared As

continued Moving while profitability down our to P&L, deliver investing we in strong growth.

value level was of the at the a since $XX Our currency, in of year-over-year of basis. X tight constant on reflecting two-year adjusted global Criteos, and EBITDA employer XX% resulting XXXX, over highest up million proposition an talent with strong closed a X X,XXX We adjusted margin a headcount points our EBITDA quarter market. points XX%, up QX in

support lease investment hires through for in are leverage solutions. areas of X% Non-GAAP Contextual Insights growth tools were same million and transformation impact employee or in QX, upgraded remain entirely we increased as or X%, and up incurred to On charges. restructuring our grew increased $XXX our on advertising, before We and R&D for right-sizing. global including as almost at stock office costs we productivity, solutions by million expenses processes new $X costs as go-to-market, Our new our solution amendments enabling accounting currency. from gain top and investments QX, of currency. social a XX% X% to Non-GAAP of and R&D, constant Media, Retail in price exits largely line million related part higher that million Commerce particular at lease new pre-tax constant growth. product, ramp $X up commercialization in of as well selling, impact and funded executed Key $X X% the OpEx basis,

the XXXX. up As a in transformation million Amortization $XX we in and and of increased drove Depreciation about share-based X% compensation now result, expense anticipate pre-tax stock restructuring our price XX%. year-on-year expenses appreciation and

close net our disciplined from performance business management with to of drove income a in solid XXX% and Our operations cost growth income. quadrupling

Our XX%. tax was effective rate QX

shares diluted EPS million average grew in Diluted QX count year our the as a diluted XXXX, price. X.X total our weighted including up and of was XX XXX,XXX up XXX% over share million cancelled million about share growing by cancel adjusted above putting XX%. X% additional $X.XX, short end, treasury $X.XX, of count of XX.X XXX,XXX shares and at was We stock end Our to to EPS result before plan shares. just

with sheet in Our generation our balance a quarter maintain in cash the and at including cash we we to per buyback the continued million. QX program QX, capital liquidity current we strategy. goal the of growth of average cash In $XXX on as $XX million investing organic primary in to in our excess million X remainder first million as million reaching XXXX, our We marketable share and QX. for continue and X. $XXX an shares billion, or $X $XX with Criteo of process March, to the $XX.X from $XXX our financial M&A outlook of securities. cash million Platform. ample and guidance business buyback flexibility I’ll strong flow $XX our a in commerce re-purchased of now extended program for robust strong in in of XX% With October, execute allocation and Since our leveraging starting end-September, financial worth position of shares We share million expectations have reflect share. EBITDA, nine adjusted provide accelerate of months. media Commerce Free Media was $XXX to million provide today, repurchased million $XXX November which cost closed

as momentum, ex-TAC As strong we revenue continue by over head we QX, into October. XX% business our see to evidenced in growing

ecommerce value online in levels, above to from shops and their making convenience we these benefit strong, increasingly retailers well-positioned shopping positive pre-COVID continues capitalize And omni-channel prevalent investments as increasingly While on closures. remains to Overall, trending shops their trends. to consumers store reopen, fulfillment significantly accelerate mix. continue capabilities, reopen, in multi-channel ecommerce long-lasting marketing to continue as be

season amplified We’re year, many We carrying marketers’ parallel, to quarter pressures inflationary the experiencing start span date. season holiday an to earlier holiday and this and last be ecommerce momentum our an customers, this products. European need Cyber-XX the for we expensive to tail anticipate earlier more extended to expect similar year December in off U.S. for have over advertise year. into the to our In fourth to current curve

represent had any parts business, chain While of have our electronic of and material our auto, on which the not pockets consumer have date. in global impact seen to small we challenges business vertical supply impacts parts of

time. environment, reaching on the right at of diversified growth the XX,XXX Our current in base marketers by remain who, our the is supported focused customer right robust audience

season strong consumer strength travel holiday in electronics. anticipates with growth retail, in continued therefore guidance and Our a and

also in comps QX. we last know, tough you from year As have

XXXX, the specifically, ATT ATT QX include privacy unchanged for million $X new for for approximately identity assumption million remains in million including $XX $XX $XX our including iOSXX, and and changes. and a and iOSXX Lastly, about million in impacts incremental impact

call. more and offset impacts formal are we be not next guidance continue That that we new this than for in ahead, we will to being that the we year. the in XXXX said, XXXX are trajectory, about will privacy our identity confident optimistic that We and solutions on providing anticipate looking growth and retargeting incremental robust expect growth

$XX impacts, of incremental million these growth today, As approximately year raising we full will to and currency. these XXXX. ex-TAC at factors that to of all constant amount identity assume XX% consideration, guidance Taking our privacy to into XXXX, less XXXX in we are Revenue than

for We strengthen expect Retail Media, Media above new to grow including our as to XX% XXXX, XX% in fast-growing our continue we solutions Commerce Platform.

EBITDA to be stronger to XXXX, margin to and adjusted to strength our revenue Adjusted In we about performance XX% is increasing flow conversion guidance be for Due top demonstrating projected regional line and tax rate XX%. ex-TAC, operating XX% our also are mix, free about to of We revenue XXXX. EBITDA expect expected leverage. our cash

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

Criteo and sales bonus In last And We million in we uniquely in expect continues grow transformation. commissions our continue the solutions year. margin areas with million, $XXX XX% about $XXX positioned payout open EBITDA a the your QX in between to are XX%, expect now the be floor and we lap for our growth to in and questions. comps for up of new growth media. our win QX about excited adjusted to closing, or and to as commerce we XX% as strong I’ll tougher to And to from that, invest year. plan we momentum higher

Operator

Today’s Instructions] [Operator Anmuth from Please comes JPMorgan. with Doug question you. Thank first ahead. go

Doug Anmuth

Thanks questions. Great. taking the for

by new on partly you solutions, agency driven highlighted acceleration just partners. First, the

kind stay stable work through could XQ? chain, talk of you auto then to the don’t far. kind you secondly, know that impact seeing what not you mentioned if of to guess, worse So any last the as thus of of what to to I back and about two closer I then do brought the there? consumer the get remains potentially more efforts curious things confidence years? How just Perhaps that much you also kind gives Thanks. the there? course company and And your electronics that’ll go over go supply just you just agencies

Megan Clarken

Thanks, Doug. you. Good from to hear

to supply don’t agencies with sure over chain Let I’m until I it to things if to out. all, then throw it cover I’ll spill and I’ll and across me won’t which help Sarah off kick here

business On traction a through gained stop. lot of last the which of third agency front, we’ve couple of about runs It’s effort today. the been over an a agencies years. About doesn’t

the But great when to for to we’ve be do. we are worked they a partners marketing and showing to they and us to get important partner work them we’ve clients us comes got access as of promise, do, properties. have now media fact, But clients help without to them hard deal direct a performance in. a not see might we that that In service years it of to agencies get lot acknowledged it’s today us media we wouldn’t solutions. has to really more partners us I with to like as important said, to couple market their ago, sufficiently get that that able and And access access both

push clients. On excited blows hold through is biggest with, had the agency really to Retail we just hold of code that get us the really to Retail some Media strong I’m agency and has enjoy having the beginning. our enjoy mostly a that is What codes front this partners about company Media, domain that’s of the the

teams go partners to us ago, but years And a So us the But get performance and just if continue that of there and story room have we to also holistic comes to I with a way lot and too. them a maybe agencies. can benefit off through them of a trusted there’s over together, time to commercial ability of deeper internally be XX% help scratch able that XX% be and to years Commerce today, two tell retain for that ago, Platform that from closer not at pushed the our agencies showing and we’ve can you to two bring through our we closer how attract and Media to think maybe start more wiggle be clients.

of the traction But a it date. and made is room pretty long the to there’s we’ve that happy lot with short we’re there. wiggle of So

question it’s and topic, to therefore, I the think advertising, important like supply On seen that the not advertising not if chain – always anything about is or note business supply up that. in it’s drives the whether whether the we’re chain really and we’ve

to XXXX, grow In spend for the fact, the to by predicted about ad look XX%. that’s if contrary, globe at across you

seen that have that’s access beefed they stock or have you a far to and clients just subject to around goods – digital, I’ve spoken at have have shift the that’s of have And by so it’ll And And look make couple directly it grow is chain, XX%. One to around things their from like of where that the they this total. access to They coming can money. have on still supply that if looks the and shelf or get up need they deliver. promoted they still advertise, stock to product. still to, They to need have note.

both add, them they of the seen backed both to by our what the any along advertise. advertising, haven’t not services goods and we’ve issues. of that and And chain see – seen. business we’ve what done to problem. services That’s chain what we’ve effective They supply then is, change supply is or… to away And Anything strongly just from because other and thing so extremely of notice less them we tracking clearly kind so we’ve

Sarah Glickman

I mean, is I to think we only customers. the thing XX,XXX have add

go, guess off here. look slightly I impact it’s price than So – it diverse we’ve businesses at a smaller quarter really but are And that than supply of offset maybe auto growth the chain, that we the more by yes, elsewhere. then just with was when the helps more us

of and growth been So, but impact each we and is kind in significant guess, different, QX. for another, don’t we client us helps I through chain that’s see any our client trends. growth supply And business one of offsetting, less in see model all

Doug Anmuth

Megan Great. and Sarah Thank you,

Operator

from And comes at our today Simon ahead. Please next go question Sarah Berenberg.

Sarah Simon

few questions. a got I’ve Hi,

is to Sarah. First one

given You are strong higher obviously how bonus referred the be. provisions number to to

we’ve bonuses has As another into is going seen be obviously of opposed on to anything think paid terms to coming a there or in on, year, XXXX, for travel. this to that. can kind a by up holdcos say relative and maybe independence. you relationships them, Second resulted Megan, you on year? they’ve of going we head publishers one achieved lost then one CitrusAd, CitrusAd as be agency next just fully interested I’d are because you catch to kind of their up you that And do to on [ph] what so just you, in in

you said You’ve at be was QX? it you us to where this Is at Thanks. to talked it thought better if it compare recovering. doing than what point, about you say that going to

Sarah Glickman

Hi, from cover the you. Sarah. travel. Great to bonus I’ll hear and

we don’t bonus mean, and what we from working on really we performance we’re and process we what to year obviously – the paying the RexT sales the a I XXXX. then is for that hard. new for. drive population incredibly is executives RexTand and sales the the as and perspective, that for are that’s, we new straight So commission, for and a that for effectively, any do We and delivering everyone’s And true see of see pay sales kind well program EBITDA this solutions. on want does how from for of as up from, We that that’s very structured bonus have performance pay though, how, most we

with, So next up but no numbers And even any we that an playing to obviously I we start year. be, for plan for hope true field. XXXX, guess, we

to want that. we incentivize So, for

up, to referred love waking that one of sleeping know you which In of this slowly. waking who we travel It’s term. up as the the it’s dragon, kind terms I are

in in it what half bookings. a we some growth year probably – XXXX. seen QX, that’s still new Our ago. double is of have it about what was But was We

coming as we’ve seen kind to iOS forward. quarter-after-quarter have traction, expect new – seen of we but and we it we we be to continue some in, move see So,

So we’re takeaways right really those that have, the are that, we key now. planning for

Megan Clarken

me predicted Let Sarah the, on hear in the to good publicist you. comment, and jump it or quarter. on last Citrus We

likes then as of and given by for and we clients of great or another media go ours acquisition, the to opportunity actually the question think, and retail to asked Citrus that’s it partners we what were are holdco. less the holdcos capability we thought are that about I one or to owned likely an that see

that exactly So, what is seen we play out. have

holdcos they So kind have to is for looking capability out are one that market stronger provider acquired or leans counted to is a very and for are of find have thanks – in on we who the competitors. their what this other do question, connection of the the that heavily partner we

exactly So we predicted. as

Sarah Simon

Great. Thanks.

Operator

question Dan from comes Salmon Capital today Then Markets. Please ahead. next with BMO go the

Dan Salmon

morning, Good two I right. everyone. questions. All have

or less combination want just first organization? using million Sarah their up or would that a to I impact love next of follow risk on then the I Todd’s opportunity hope it and both. about to how And expectation about for rather Megan, $XX a on. I for us make hearing timing an of the understand the and can still what’s in XXXX. or First flow? remind you comment but to his maybe or we’re for I that for ATT just around are built than there. take privacy marketers generation baked it want of Thanks. drumbeat as as of I ever to technology, and leverage quarter, does make like iOS data. How’s that see hear majority relevant that impact sounds both clean for next that up of that what party next may for technology, rooms is the as you the to the the continued Todd, trend else a XX figure It in Criteo mix second year fourth into of do And sure

Megan Clarken

Yes.

will, So guidance but out not wanted to is that cliff we given leave at What iOS with you anticipate on next we any a topic that this kind plus a for privacy I'll we XX November really of so as hanger. such early XXXX, there is haven't impact given of least that's will and know, be an start you starting hot just year. and

kind versus XXXX, half So all this that. a relates we've if and then given I quarters type million that features left focus just that's my of would continue And you so half well. three small to we're as about for hide that impact got so anticipating rollouts expecting it in relating QX There's as half to of a XX customers $XX to ATT. another probably protect ensure you hit the amount began, consent, assume around we're us And know, continue kind on the of explicit strategies but most that for our the consumers part. of there the year, the to ATT they just already IP to iOS for

primarily iOS And retargeting to no the and third-party that retail XX for of that's identified. course, part, expectation ATT has media and most So the business. relates plus our iOS that's

first all that's So party.

that's So way of we're about as thinking the now. it

Todd Parsons

Todd. and to join hear is this Nice to Dan from you. the Hey, call

of we clean room I think earlier may just to the Investor have kind point, and asked. an signaled question Day, On back going on our you what

those One opportunities. data where really mixing that by is forward lean second media in two know, publishers room for collective somewhat all major to integration opportunities use its and the There driven safely is clean fleets is a in These use this ramp couple something way of space or had ones players has be our with obviously info tend party be integration and data are rooms, our media definitely case, audiences out some are there promoting we're as is then we're at targeted. continue that that a data live our where a product, party couple a to first that that ramp And better we live forth, talking first that network. customer which are safe audience across the value are makes being commerce activating but haven extended you looking marketer that with the so there to newer which clean to of add of We offerings. snowflake cases. then and others

at look since all neutral talked. emergence And we partnering as a sense. progress I So players the major we lot of of very fairly we've mentioned, as a made the us with last clean important to rooms being in

Dan Salmon

I clarify absolute amount, the year? And just Thank impact not an correct, million $XX to incremental can Sarah, you. Great. for this next year is

Sarah Glickman

impact second explicit et And at with kind be this would that beginning Firefox, with more we of other year and incremental. versus it's the more – cetera, first this Safari, consent have No, year the of half obviously year. half really

of impact kind year-on-year due the more timing. a it's So just to

Dan Salmon

much both very you. Appreciate you Thank of it. Okay.

Sarah Glickman

welcome. You're

Operator

today comes from Tim Nollen Please next ahead. And the go Macquarie. with question

Tim Nollen

currency, that actually again QX or kind Great. next impacts I do that's on like so to Any Thanks pushed Google doesn't is worry the to growing out party time comes for was effects. last following not you the looks you Thanks. exclude relatedly of is was about? this guess, X% you got taking think really business assume anything could on that $XX privacy those XX-ish, in are cookie question. that's then I a mean, didn't positive us to second even number driving out I'm you're to on a Hi. elimination. And what like with that know million I if yet. where some the Or affect for much first Follow I everything the and it finally in the much guess row, I quarter year, in on guessing. getting baked this of to I you've call as about constant do you give then sustainably XX% by yet you something point already? color data a it the beyond, you year? retargeting the a

Megan Clarken

of Let the take me Chrome part first the question.

more that it So It create and means more what first to party to more the gives product ready us the time develop just down to that the data. market. us Google is time and impact has gives and road more that and more us pushed

adoption To guess the date have have alternatives done tests lean very and the will if with been quickly. left to they're into mark kind market further of third-party for with so across flock Google the any fledge – turning tests marketplace use away when, And absorb very, their the ahead the down from Google with Linton around and it ready question we So we've goes that road cookies. actually ability longer far both I being the a it's the impact off that there. even go big

off our that continue from any continue certainly heats see build to to gone Chrome. to and party by to to data us automate to any the across anything identifiers. we first So in happens kind bring more any make doing, And impact to use the more the is of do day ability resilient the we'll moat, don't continue browser just the Chrome are we'll what we do what

Sarah Glickman

on and comment QX. I on retargeting can quickly

robust expected. Q in – impact we we They're Most $XX are past We yes, million QX. we doing resilient is So a privacy – about the see do XXXX as have very retargeting of business. well. is that the

that much So that pretty obviously the in pretty phenomenal we're offset already growth retail. seeing

I'm QX. space. resiliency we but And offset looking XXXX we our don't we in and And I that see are to We impacts not retargeting again, to for expect privacy. the giving into continue in in XXXX, want – incremental guidance to anticipate in will to continue do

and plays great a when that to business like we're retargeting. do it it's So seeing really, our customers really

good. So all

Tim Nollen

thanks. Excellent,

Todd Parsons

that high value back talk going our mention I actively that marketers in But add we're it on didn't obviously Chrome to CPMs and we audiences, we available now thing at to just Chrome. engage about to iOS. advertiser find to Tim add, wanted are one that lower spot helping audiences didn't

related So mostly those it the to bit impacts what steam from target into retargeting and of retargeting product app about to a we efforts talk environments is being app to on that effect. retargeting, we've a remain web app without helping didn't obviously our talked that but to full are little ahead

Tim Nollen

Todd. Thanks, Okay.

Todd Parsons

bet. You

Operator

from Truist with today Matthew Please Securities. Our next go comes ahead. Thornton question

Matthew Thornton

down the think question I I've previously for a the either on XX% or XXXX. Megan Maybe good versus results. about Hey, of on housekeeping Congrats quick Todd. got for Sarah, for then Sarah half morning, up talked back a year, follow and everybody. the you and travel

as player retargeting thinking you versus earlier make to when Criteo something mentioned if we heard just travel that's retargeting everyone. And best other I in stand year? do and were about down or any how that half Thanks, the helpful? of then leader, leader is be in I ability be contextual market in market about we contextual, kind might and –obviously competitors Todd, where of in where think class, dominant in already perhaps in think think I any back want XX%. should the for contextual the from Megan now, market, have about incumbent sure capabilities you maybe your your if there would we how closer players be correct, a some there to update to that

Megan Clarken

question second Let's start first. your with

to I for remind before of and Mr. Todd, the just us. of contextual you it So go mix to hand want into sort across I here that the things

said people of a lot million daily I that's we lot that's have XXX that a of see. we consumers, before, As active

XX,XXX have commerce clients. We

reputation can that's lot in a our We with our so get data hands terms sales. shopping buying. over We see lot billion data. a a see of of of we $XXX it creating that we people in background are their marketing marketers in outcomes. know from what So And e-commerce on good their behavior, we also have e-commerce

worth from billion client we of So have that today. for we're base the $XX responsible outcomes about commerce

like being this So into is product contextual pulled layer have stuff if offering. that, you that pot, data AI of if you on that of then take our top on you capability melting and capability, that

So I'll there. close

You Todd. jump in

Todd Parsons

there does would web first-party standpoint, extraction of that that great. seen processing And No, amount that appreciate Criteo. users course, I and Megan, that add us certain the different us a are recognized always it, to different just What everything contextual all to buying little content we be bit and behaviors some have that. not others is both makes do natural by a meaning make enough. will language regular a across that's be do app that uniquely of from that

and makes meaning order will what match match take is always make that before it different. And that I to the contextual in us then different. described into to So us those

Sarah Glickman

take I'll the And question. just quickly travel

XXXX. and are we at of we QX. quarter-on-quarter expected, exited exit to anticipating slightly we hoped we down XX%, same were We QX, that. XX% around So about look as versus going planned, QX, QX. the about we And than into if kind we XX%. – I obviously when better of,

coming So in orders kind we new of QX. some are seeing

that way the that's we're So thinking about it.

Matthew Thornton

ads, a about could marketing more shoppable to trying little very Maybe other find I about one way performance in doing guys because CTV. just quick bit you slip only and and obviously one your into That's helpful. more video we're talked its

we way I is, and hands, question is a so see it's type there some, months in in platform CTV each could CTV whether come or of, coming our guess, And the publisher, any that a could my partnerships quarters?

Megan Clarken

we're I mean, really focused.

promise First have about brand a always to or of looking most, discover of mainly excited be, to all, we brokered really a bringing the on engage shoppable brand. we're are where commerce to consumers

right that doesn't For there's from mean first us, testing effective hear internet won't an the you're to what been to, the CTV And video. evolution online already open for that into we're because us most shoppable display. us a so and has lot lean untapped now, the for is going online And surprisingly noise meaningful across on it doing video, quite well, scale not in but opportunity as an video, really about opportunity much beyond now. be online we signals talking of

So focused closed opportunities. not any that, to we're weren’t laser other of those but on certainly

Matthew Thornton

Thanks. Great.

Operator

Zgutowicz Please Mark ahead. Securities. from comes today question go next with our Rosenblatt And

Mark Zgutowicz

and Maybe on that's know much. on, quick UID I sort of Todd X.X, Thanks your what comment there your from a just how Thanks. participation so don’t anticipating could progressing if and you're you participation. contribution

Todd Parsons

we very that These is it. to sign of very a still is is initiatives. And on that parallel supportive obviously the ecosystem. course, benefit there with and big work along moving still have We're in advancing. Yes. are ambitious of We're pre-bid entire that single initiative

for earlier signal, we mind, happy for for Criteo. do see the just to year better these it expected, in faster, any get to calls trade not part but the or with and progression could we of the do bear would ecosystem, But that think a we in we're take it, go always I are desk scale. whole

Sarah Glickman

is And we're on these that interoperability Yes, this all things because point hugely behind one decides as behind behind, focus our work we task, but of to ambitious we're has at and of that's for to been third as ability I need pushing sure sort a one to not we entire together. market Chrome when time to Todd's that make the party fast this can possibly to ready and enact a on go cookies. we of are I'll laser focused

Mark Zgutowicz

quick just I what but a just Okay, have great. quantify you your – revenues might to missed travel can Thanks. the this in travel. And XXXX? was contribution

Sarah Glickman

recall. I was think it $XXX a around if about I for the million year

Megan Clarken

travel was year The COVID $XXX and million XXXX. total in impact XXXX probably last

Sarah Glickman

As was… a segment

Megan Clarken

in Yes, XXXX. it was XX about million

Mark Zgutowicz

Thanks million. so Thank you. it. Appreciate XX much.

Edouard Lassalle

Well, thanks Mark.

will up thanks, is computer Megan, thanks end have, to good you going The the joining do Todd any year. today. call of and follows-ups we're Sarah available so And thank everyone we'd like call. wish here, think you a may for we guys to and end These IR not always Thanks. hesitate. not for I please so team

Sarah Glickman

Thank you everybody. Bye everyone.

Todd Parsons

you. Thank

Operator

Ladies concludes call. today's this conference and gentlemen,

You disconnect lines. may now a your Have wonderful day.

Criteo (CRTO) 3 Nov 212021 Q3 Earnings call transcript