CRTO - Earnings call transcript Q1 2024

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Operator

Good morning, and welcome to Criteo's First Quarter 2024 Earnings Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Melanie Dambre, Vice President of Investor Relations. Please go ahead.

Melanie Dambre

welcome First and Call. XXXX everyone, morning, to Quarter Criteo's Earnings Good

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

after now as our prepared usual, find investor our well As presentation on and as transcript the you will our call. IR website remarks

remarks to we only forward-looking will started, our would you Before judgments, as analysis include like which and remind Criteo's get today. reflects statements. that I assumptions of

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

the please XX-Q factors release recent information, our earnings our to well and Forms XX-K your SEC. in refer as the discussed as most with risk filed For

our metrics non-GAAP will in reconciliations GAAP comparable today. published of also to discuss directly performance. We are earnings Definitions release most and measures our included the

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

With that, now over it Megan. let hand to me

Megan Clarken

Thanks, you us We're in for to everyone. morning, today. start Melanie, XXXX. a joining great good off and Thank

execution. These the are EBITDA steadfast and period into incredible very record We We more quarter and adjusted while year. powerhouse laser from top from of the delivered for a continue more same line work our focused in testament nearly results double-digit our doubling our teams. achieved to and transform company consecutive second QX the momentum. media results commerce proud we're last gaining to and our I'm organic growth

of about next We've even and be we progress plan, business of we're we've shareholders. our the built retailers the digital repositioned and that that and strategy and with on have to to to directly retail on we the advertising. wave leading media for continue value player for ad our unified advertisers tech more leader the publishers, performance-based make we right believe the future in advertising deliver As platform choice platform only the our capitalize confident our connects excited and

with Starting Retail Media.

gain continue XX% spend year-over-year market. media the outpacing in share growth activated to We with market

have media. growing close brands network scaled retailers and miles globally. market and the a Amazon our We XXX with ahead becoming leading retailers with is any to to footprint buying obvious This retail competitor X,XXX when complement of now of

end-to-end use remain global AI-driven Our expertise presence, our to and performance product quickly, key scale differentiators. products, capabilities, simple world-leading sales ability and

coverage. Walmart we're our extended department We're retail Salvador, Guatemala, to delighted partnership online and further Rica, In proud new LatAm. and expand leading to partners, shopping add platform. our to the including Honduras U.S., our in a continue retail media with chain a El Costa have retail We Nicaragua, TV broadening store presence Connect and in

recent We retailers Jones reach and also Welcia drugstore up our verticals the world's of continue in exemplified platform, leading as our ramping signed Albertsons in APAC, including the David into Ticketmaster in marketplace. expanding Japan. to commerce addition win quickly new and including adjacent our newly by We're partnerships, chain, ticket Australia to

growing to formats. said We differently, work by agency via about from time the the QX on premium was new for holdcos to media and our been we XXX go and spend brands quarter advertising first digits access our as our retail U.S. Commerce In to instrumental unique Uber accessible into also forward $XXX focus strong sites, them through at neutral coming new has add reached agency achieving in demand over or We with triple saw look and our driving retailer expanding in partnership in inventory alone, continued with XX% Eats ad growth easily categories retail our partners them this by media this. to added making attracting X to scale With QX. spend Max. agency million relentless

We in our leading were come brands and and multiyear XX% they seen of sites expect Evidence spend hundreds through are of of anticipated brands millions last momentum to -- partnership agencies more advertising our dollars this be year. XXXX represent sustaining partnerships as with that can who our platform retailer beyond. on largest than with now

assets The to open to off-site campaigns inventory. one Max own the Commerce inventory of reach off-site across with retailer using and both Commerce retailers' demand Internet extend FreshDirect retailers participate drives our Max is to campaigns DSP. in their latest to data

direct enabling demand demand channels. we're indirect Commerce also Max, via channels through to Further focused on

still days, scale. channels further creates more opening early While opportunities to

to SSP audiences off-site with Nobody demand. else so and Grid offers supply further way for and attract valuable connect means through the Commerce more retailer for demand campaigns access retailers efficiently opportunities. third-party more gives brands flexibility DSP. to audiences reach a channels our optionality revenue additional to most This and run Our such

results to means display measurement. media certified Criteo to MRC buying their advertising, effectiveness and This selling Measurement. is Media data forward currency critical buying ecosystem. our by we In unify level that MRC media February, is as is and gained retail the we the and understand digital are help accreditation brands and helping by retail the is data Retail the Measurement measurement traditional in In accreditation and of step the of agencies used selling supported therefore, media to provided comparable. spend. of for and an first important our

and retail on-site And media. represents decisions brand drive be for can in investments media sponsored reliable step platforms larger This our to products measurement measurement capabilities Our significant forward used to ads. a across advanced display underscores accreditation and make on-site buyers. both and

integral sites, of traffic working key third-party with retailers. to and enable network [ verification like leaders durability ad also measurement We're DoubleVerify ] across our unbilled

of to both on-site terms retail according with Overall, rate, we survey. to and because take more to retail agencies in intact investing XX% than agencies increasingly half more significantly ecosystem performance data continue Today, helps off-site. to media, consumers. brands more of retail and are retailers expect other advantage to our first-party brands regions media it shift is dollars the of valuable spend than connect all in of recent and affected of sales channels media

remain ads of testing experience. Lastly, forefront global platform. conversational by as We're environment shopping as retailer retail into part sponsored our generative at progressively innovation chatbots into media the websites of integrating AI their we on consumers use

on supply and Again, to Now and help commerce a services commerce IPONWEB targeting turning ad to tech and Internet the retain our our open AI led quarter, including advertisers leverage our by tactics Performance an targeting set acquisition. our this audiences growth precision capability, Media impressive was up largest best-in-class which customers. audiences from audiences year-over-year. acquire XX% that of are data Commerce set commerce the and

of accelerated the efforts, third-party strong successful is demand Our by enhancements. first-party incremental data-driven through our Commerce momentum performance cross-selling AI-driven driven solutions, and Grid adoption SSP

seeing with data, as captured audiences data-driven relevant money everywhere. and notable we to to advertisers success consumers our tactics With both budgets enable various first retargeting. Firstly, budget commerce our shifts from targeting first-party reach access we're new privileged

turn about For we're data example, to platforms shoppers. activating audiences customer customers with and existing data reengage collaboration through into and loyal them XX advertisers' and data first-party integrations

comes partner one having having capitalizing with across opportunities engage actively buying X to consumers journey. our we're because help media biocommerce audiences value excluding on revenue, commerce clients' audiences clients clients services to [ addition region, their our all them inspect -- retargeting. cross-selling each performance in of Second, for ad our of clients are Almost ] XX% tech supply and using from in top our

attracting SSP. Grid more demand we're Third, by our Commerce

Video publisher packaged access agencies and our brands SSP DSPs, with This XXX. at third-party through campaigns audiences Display distribution to Our & scale. inventory Google's commerce means highly targeted gives during including

Finally, an increase range AI-driven performance contribution enhancements the ex million TAC drove double-digit QX. in in in

superior front to differentiate Our our through and cutting-edge performance. in AI is ability center

we're ago, the the the XXXX engage consumers marketers bringing K&N acknowledges category Award Excellence the personalized we This impactful for weeks groundbreaking X our received to Just transforming market, and our advertising. Technology technology. SBR way advertising through deep AI in innovation

meaningful QX grew strategy remains forward. addition, our the of part increase by inventory important progress a Retargeting including activation of valued combination We in saw pillars, and in the the in retargeting Instagram Internet to of In addressability with our QX, our quarter, we last large-scale is through as addressability open one This to Meta's of an in we business Facebook going campaigns slightly inventory. number compared retargeting is marketers. expect resilience traction continued and bringing next-generation and year. tactic

multipronged as upside to that business and addressability This our Now months comprehensive announced XXXX. to strategy they to delay in performance. until our know, you Google won't XXXX. third-party This early future-proof few advertising deprecate means clients' is our we advance continue a cookies delay, just

today best [ bring our ] the third-party AI-driven identifiers strategy our our Regardless scenario, us capabilities clients outcomes addressability [ as we for including drive with of of We we our the gives to believe market. our continue the any to clients to performance already expand an and ]. edge in next-gen

of testing privacy report stable X% still third-party Chrome's of that APIs to traffic Our the cookies completed. the involving back we'll CMA and is ongoing, without when U.K. sandbox

update leveraging continue positive media post-cookie advertising. our that. differentiation, groups, disappear. engage fall learning each and the sites, commerce in proprietary retail data, that to momentum. AI opportunities. with prove future will broader continuing an intersection and retailer commerce deep to tuned data for details media investor and of open social audiences of and innovate By the the we in more privacy-first the opportunity Internet as Building commerce-focused signals on platforms provide business journey pioneering our the our announced models user advertisers on step the our update and confident interest a our across Stay our And on media be recently throughout We're helps consumer of

lead to of in valuable our to business will to feedback further value their continue like consider all advertising the growing bringing valuable media opportunities moment vision. financial execution our best I'd ] being strategy over on of for and the for past remain confident to global shareholders. [ and We We're most to the of Second, Media, with we're thank commerce market couple shareholders all create We and a Performance months. open take are laser-focused strength. believe And losses advertisers. positioned our media segment commerce to powerhouse retail audiences we

With hand will to results who our provide outlook. the financial Sarah? on call Sarah, details I'll and that, more our

Sarah Glickman

you, and Megan, everyone. morning, good Thank

includes the outstanding compared performance currency, constant QX ex was Tier cost and $XXX was XX%, contribution by board. year-over-year discipline. foreign $X headwind up million. currencies growth increased TAC quarter execution sequentially This strong in and the At $XXX performance ex million. million to from a strong contribution X Revenue XX% across grew of of TAC first Our with

continue of mix our we and business to information, our shift our than QX. and solutions more new represented of rebalance part slightly top As half line in

multiple products, [ and at X those XX% XX% customer product. X to our high of a lifetime than use typically to Prior only about than with largest more close of more remains retention solutions. value higher Client ] clients Xx our engage our have clients ticketing who

XXXX, structure previously As communicated, in QX have our Media Retail updated Media. Both reporting segments: beginning we growth segments now X strong and we and delivered segment Performance QX. in

sale Our and agencies and inventory Retail Media and retailers, from of generated purchase revenue retail the media encompassed brands, segment services. audiences

Media targeting and Our encompasses Performance services. TAC generated from our and capabilities revenue segment supply our

Retail was Starting currency and million. constant at Media. $XX Revenue to XX% with million, contribution $XX grew ex-TAC

newly Our from TAC vote at strong, contribution U.K. and XXX%. retailer from Germany in ex with same growth the the primarily remain was retailer clients existing our by marketplaces. sized our retention We of and driven clients benefited and contribution U.S., the retailers

base largest licensing from benefit our and last the from Easter highlight their that to we clients, During direct an to service important while retailer model a feed earlier they and we of quarter, new robust sales year. with first expanding to compared to It's the started we clients that benefited and and transition us every growth largest we client partners, our years. media client have expanding we in At Many retailer cohort. our many clients, continue have successfully time, experience retention. for growing our been retail in including annual roster of and been to seeing strong retailer are with same also

in retailers grew their this TAC call double sold second cohort, in which directly comes same and Remember, -- third cohort over from doubled to QX, Notably, ex we year year-over-year contribution in our selling period. for demand. retailers retailer their research our the in XX% retailers their largest in already growth year of our brand

brands continue On onboarded expansion we side, and XXX the quarter. significant demand this we have see brands, CPG with again to

audiences channel for are have our global retail as This first-party brands we and X,XXX expect is to brand momentum pleased client and our media are to data continue global We key investment. as partners, becomes we to large trend prioritized of shoppers. increasingly see looking a valuable with reach their a

contribution ] TAC, data of modeling technology ex and tech growth currency. and saw million, targeting Media, impressive up quarter, in TAC representing audience XX% we was We're XX% X%. our in-market was contribution revenue this audiences overall year-on-year commerce Performance In [ our constant in and up X% commerce ex at was large-scale $XXX our up as XX% and $XXX we million, our find powered AI targeting services up leverage shoppers. to was supply Again,

our We latest performance benefited optimization. from AI-driven

AI and innovation experts built to has product and performance Our our our clients. drive AI XXX best-in-class on Lab continuous R&D platform deliver is who enveloped for Criteo

delivered solid all up continued cost robust, invest reflected last retail all rigor growth XXXX, and our and EBITDA by areas organization adjusted and operating in improving growth We saw quarter. million and has operating operational We QX regions enable XX% remains were our trends delivered model in classified year-over-year, growth largely year-over-year, our and discipline. compared of in verticals. across and our resource tailwinds operational enable driven we Non-GAAP Travel leverage our to top to scale flat transformation efficiencies. and We through optimizing on expenses $XX allocation. from line

to faster, continue work and by we continue AI-driven our now. better to We investing enable processes in streamline tools efficiency to and

and Depreciation including Data-based QX to decreased million the acquisition. related Founder P&L. X% in the expense $XX million. IPONWEB's XXXX were granted of million $XX shares down to by amortization Moving part as $XX to compensation

net Our and million, from XXXX. operations was QX $XX income in million $X was our income

diluted which average $X.XX. earnings was Our weighted resulted share $XX.X diluted of count share in million,

up EPS XX% in QX year-over-year. diluted Our XXXX, was adjusted $X.XX

from financial us flexibility solid allocation. benefit long-term execute gives sheet liquidity to no million disciplined position $XXX at capital end growth debt. generation We our of in significant with to balance had robust a and continue We and strong balanced about March, financial strategy and the which cash and total

$XX QX, CapEx. cash ] As [ in was and $X reflecting free flow and flow seasonality was expected, operating cash million lower million,

value capital Our priorities are acquisitions via opting to buyback ROI share high invest and to in return investments shareholders program. organic our and to

confident are value. and are business shareholder We committed in our we strategy, to driving

record ] at includes This in significant million including early deployed stock X of track QX. $XXX average long-standing per intend of [ repurchase and share, capital canceled cost a to in million have we of repurchased million shareholders $XX.XX already QX. shares XXXX, We returning in and an to also million $XX X shares

financial outlook. our Turning to

today, on We the ] [ vote expectations May have our XXXX. updated X, for our based year as of

This at XXXX, organic to our TAC high at to now an grow we with digits acceleration growth For X% a year-over-year contribution growth currency single have in constant is in both of XXXX. compared segments.

guidance Our until third-party Google's outperformance next updated early and full delay deprecation year of reflects our year. QX

reminder, As to progress through tougher become the prior we the year a year. as comparisons

impact This XX% base our previously we transitioning of demand model are In large in still XXXX. direct contribution our early in the for in year, confident a to is from ability to a our client with are we communicated. million Retail sales the performance, TAC QX deliver ex of as while revenue given and brands $XXX constant Media, scaled currency at largest

had QX with a we also for reminder, our QX tougher being largest quarter. As comparisons

grow have Importantly, to Group spend the the client growth momentum activated provider. intend ad to we continue XX% drive we as opportunities believe our [ media and position we of enhance Bassian gains. up share XX% leading we has future growth estimated fall, ] provide to our expect market on media an we as year-over-year. exciting the our update In tech and profit base anticipate across sustained retail to

expect in single performance mid- strong high our grow we given Media, in now digits to QX, Performance XXXX. to In

impact XX% the XXXX. material for our and of areas reflects EBITDA adjusted leverage We our no and of margin this anticipate operational year. approximately investing now signal growth. assumes optimization model This of an operating loss transformation outlook Our while in

XX% XXXX, to we expect now For annualized of rate tax XX%.

nonrecurring expect below slightly items. and cash CapEx be flow any rate EBITDA XX% $XXX expect conversion about before We adjusted free at to we million

year-over-year of contribution to million to expect [ TAC million, at XX% ex currency. growing by QX on ] We QX. ex X $X For $XXX in a estimate about ] we constant [ negative $X contribution XX% million TAC impact to XXXX, drive to of changes $XXX million

million year-over-year margin adjusted low We $XX a expect seasonally and in quarter. between EBITDA million improvement reflecting $XX

In committed we business strategy for our in closing, are we well and to open and maximizing continued model strong future for positioned value. have Criteo. conviction we The are success, shareholder is wide

And with that, over turn operator it I'll Q&A session. begin the the to to

Operator

will [Operator gentlemen, we Thank session. you. Instructions]. the question-and-answer and Ladies begin now

from comes of line Zgutowicz Mark question from first The Benchmark the Company.

Mark Zgutowicz

is Todd. couple 'XX break benefit retargeting curious And the maybe for curious the you looking that being fiction how year quarter the possibly timing and for anticipate versus question second if CMA how out And you perhaps a of application or the [ questions. just first offset quarter -- is would of perhaps much A year this quarter of annual into 'XX the even could you perceive you on Based in cookie then next audiences. handicap what your second ]? I terms impacting of guidance? pushed the was Commerce in

Megan Clarken

just next-generation say model third-party as use goes having I'll next-generation like the third-party on we that being doing Sarah what here. Criteo's to the moment. on talk is that or of to pushed compared see as out a deprecation using talk cookies business smaller just longer And on, also me Mark. this for us to he's Todd to that we will on cookings cookie going that I think The retargeting in hear get -- a benefit longer work the business of But portfolio retargeting doing Great out because work through can traction next the The year. 'XX. the get the our as top to do been start, from questions, leapfrog from impact mind let is model. to with looks to this Actually, goes -- in the we've get you high-growth into much what sort to that on want we I less smaller. the areas gets overall further next-generation to great

So then Sarah pass to I'll to off sort I'll talk. it and start of framing that, across

Sarah Glickman

the million in XXXX, the of delay Yes, assuming $XX of all, Mark, the first about of you sandbox, model of impact. terms could priority

We million to $XX $XX in million communicated XXXX. have previously impact

said retargeting XX% kind approximately that. is terms the before, of we've is of now In year's what of CXT. to our XX% less of Chrome own which impact, next similar than is

Our better, that assumption retain signal that. today have a impact of on could But loss get global CXT obviously XX% depending of about next ] year. is would ] [ we'd and overall, the about XX% taken place we how [

In year, terms for very our of loved the you a as it's retargeting clients. tactic mean, by resilient know, that's I effective,

were So see the we growth to pleased in QX. very

We have benefited from X things.

that First the the targeting. and in have all, we continued of Meta extension enhancements only and AI with secondly,

So the XXXX that [ to XX% given XX ] remain that ] resilient. we impact the ] clarify, And PFB and if be continued we're for seeing just thinking would that would model. no assume would targeting IR the impact the of there's [ we're [ performance you're

Todd Parsons

market jump is I more the delay, upside the at are as how the first readiness we the the make supply can you? supply trading of in relates see really Mark, X I and are the there's funding to point out as for delay. that dimensions Criteo. part, important more the as industry participants between on that We demand in a for benefit to last the industry across on think sides. Obviously, look it

helps that us built privacy built to is, performance time pipeline, new sandbox. time was thing affords much I is a was in additional which The control. say, develop entire focus should our innovate course, us or second continue and very for which pipeline, around to our us privacy It around of sandbox the

beginning that So we year. things there the with the positive at are as X look out the into delay of

and for out, scenario. years and have further, And multipronged addressability, post-cookie handicapping we've we're for X it, We're strategy of and terms as anything for don't. sandbox been for Megan a In well prepared because ahead. we're developing because pointed anything prepared planning privacy any our on we we

time, happy but and way can take So what do time it. the with we'll currently. is we to see unfolding things we're are

Operator

of Your question Nollen comes Macquarie. Tim from from line next the

Tim Nollen

time back know to bit QX 'XX, the in great. to in important since of up retargeting I as have just and you just was first my swung more growth is And not I on it I'd I I pick most like right, color if business if that's line. why obviously positive quarter. that the line wonder your so numbers a But positive it's and nicely think. anymore, give this I the can if look

Megan Clarken

same in been me their multiple important wanting always need our it's consumer Let attention. just -- an to important advertisers because times addresses it who portfolio the know reach it's product to of to are get the

to And coming see tactic for that continue so to retargeting. us we advertisers and

delighted we're an move whether and get been into to Meta that's the results. product now, it the to environments commerce So on it's out tactic of gone where on going we extending whether the the power them right ad of right into AI their the audiences work that between to a in whole be based [ ] turnaround using environment in the [ been see uptick. technology to use get activity that's performance, access spend And to The retargeting that for right closed there. And cross-sell case the the that's advertisers for and of bunch sort order help ] see of

combination thrilled us, has sort it always chips for else to in the and of led sort add so And focusing on be of we're and marketers there? by Do some that to because needed you of that. will want is anything by bring

Sarah Glickman

experiences helps don't our enhance get that go to clients' to ]. and we ROS AI it were of our [ have able add, signal the and use we impact higher Let loss, me just and

loss $X in an QX, QX, of year, about million. last signal XXXX, had And to obviously, $XX we So per QX quarter loss signal 'XX. incremental we about million had QX,

use take level to really different resignal, that then AI accessibility to approach ] to just and to to that to multipronged the continue not extend able a [ signal. to only are teams So

the we're So very with retarget it's team. -- happy

XX% add, and to optimize our using most [ that interplay And to and retargeting of And for we're just Media, and are are that's using clients of ] technology CXT those. Performance about between our for Also and commerce clients, our audience as current also our said, AI we both do also commerce overall, strong both. for but more Performance way their the audience, we budgets seeing budgets in. we been performance coming a retargeting -- that ensures so Media

Operator

Your the next line Ygal Arounian question of from comes from Citigroup.

Ygal Arounian

elaborate strength a you're Certainly as coming I back across like audiences, with well. of the you lines can on nice on outlines. all there. sounds CPG least to here, really new from Can board but the of to all that's bit Media agency side coming of are the brands Maybe see we business retargeting questions and gaining segments, seems I'll with the just that at like are more guess, the traction Retail opportunity? on because, channel, agency X I a how coming if much for that It Commerce you X specifically all X is you focus bit. the it point coming growth on guess directly. commerce where Max, on mentioned there And

understand Just what we there? can from else

Megan Clarken

growth. national the you Look, can Sarah start. about talk media as know. have access budgets, to I'll agencies Yes,

-- Media across national to clearly, Media that advertising Retail budgets unlock I that's spent dollars and want to budgets, retail Meaning other -- but of media. and media Most the And the all repeat dollars store. don't those media access are through the budgets the so when this, I'll that into But agencies, are flow it. the media media. to coming unlock, you to gets that the media. coming into national of Retail in is retail trade flow in then budgets those And are agencies brands media don't unique the for of because from the on into the budget marketing I guess, most retail know is

to interesting Shoptalk listening and was about really at dialogue to how out it work year trying unlock. many And the brands this how to are retailers

Now for you and leaning crazy the more have their place easier looking way are advertising the national holistic that brands decide was They're it. to But key brands an media spend. They and dollars because between actually are for think to trade looking marketing are to budgets. not in.

that through the more unlocks, then more more So flow agencies. and we see as and

to is to spend their budgets. And be And make able on of amount of of measurement, that then agencies that of measurement the it is call to easy in compare dollars gives that that's the those power course, and we they able the be I third place able part network them unlock mediums to the national the of the use, the the across. second agencies make to that by for to advertising it prove easy to of was for platform it, choices other that alluded to platform media be retailers part to to to the those access success it have and giving a to

which in early ultimately days. parts is these more unlock and things, moving more these media. still are parts, of are just all driving So It social powerful leading

And we incredibly powerful right now. so agencies with being and them want we our exactly where relationships be see to

Sarah Glickman

the holdcos a X reminder, triple grew And -- double just sorry, digits.

just of that terms to we the with in So of are we take-up traction, and the continue. the that seeing agencies brands, expect

holdcos in that's of obviously, the but key contracts our not have And part huge the just strategy. and So all a we with globally. U.S. signed

Ygal Arounian

a just broader then question. And

but Can we've ad Pretty of us attention we've quite in been like really help one characterize get results picture the time. expectations. the color, to know, this from just you seems and are you some gave advertisers through what market? we some you what's markets paying to strongest ahead earnings of things much everyone As seen here, are Sarah, as reported hearing improve? there. broadly, anything What seeing you're from you're tone paint that the I help just maybe else more -- seeing

Sarah Glickman

I Yes. was very mean traction QX. coming a coming we quarter saw healthy from into which QX, obviously

year-on-year, department look will. demand, would continued of to that of the kind specialty seeing, seeing you retail say also I robust, continues big if So changes fashion travel robust We're if be classified. stores, in terms you we're especially

we're versus seeing the the last seeing that QX similar is are continuing the across ] QX we So for to market spend. the which watermark year, low in market board obviously we in a [ is were today, which

Operator

from Your line of next comes Mark Kelley. question the

Mark Kelley

is guide competitive looks for is to question continue share? the question that updated supply I right? some there, those into you dynamics Curious it in are And to the A, then just incremental the like first changed the back investments? flow-through, the I business. to of gain full on at thoughts the just second revenue year. retail the on And given get b, ex guys media, When am anything you're side. I on where EBITDA your if incremental My reinvesting guess, rev look especially TAC

Megan Clarken

there. I'll differentiated of [ some side. and sort I'll out It's of with we sorry. talked how question. in deep in -- Mark, scale in terms start great and the shared of digging Hi, opening very into see how environment different -- players. guess competition through marketplace market. shared a remarks ahead of terms get I start the with play about to seems we've a much the the are course, far of we just And it wider. very got fragmented of I sort We polices guess, I there's voice, -- France competitive where number has smaller smaller

of in very the they're to things. scheme compared again, where we But small are

effect. is in some we're about they ahead. if So to think, far the past but I we've again, about clients, about we what to back moved more less to like our listening so about that this concerned And I today network talk go used concerned us because competitors

for the fragmented building momentum the so to and want features just and focused for, investing So those have a bring and further investing attract clients clients, the functions that we they moving looking that the small share. away a couple a and and that drives we're further on laser-focused those our on everywhere will very delight in clients serving space things momentum because get But the we're more more else. differentiation. terms and Again, builds, we're onto more network they no momentum and that share network of they're you services and that in

Sarah Glickman

can guidance I get Yes. the question.

So guidance, to in outperformance. guidance the reflect we the did update terms XXXX QX of

pushback. added priority course, of growth The also, that back now guidance anticipating. single-digit high is we're the We sandbox

how through [ ] the the overperformance EBITDA. that margin, to of we terms the flows bank QX In in

is back, of PSP push XX-XX. see banked. you been that's this kind So The

So XX% we've look about operational XX% to it smart smarter And talked investments. in a on as about do we get we leverage reinvestment before in at really accelerate, to about is is that. way. And that then

QX business say we're So makes us the of delivering. them sense. I from we the get here, continue saw And to we as from results most and would

So that's our focus.

I all, incremental. It's say, readily would

the So we EBITDA see the expect flow-through to to do and line, coming continue we would that.

the some side, is there FX On drag. other

just one the also on of So impacting that's what's call out EBITDA. just kind

Operator

question JPMorgan. next Your Anmuth from the Doug comes from line of

Katy Ansel

to work. for in I Katy what delight more that's your Marketers giving dive The is bit more need it's I today, global time? one. to the wanted drive solutions them perspective, think from biggest Doug. a exist deprecation. your where curious more the Just the you that industry This delay. solutions, some pause better understand is perspective from little needs gaps to of cookie guess needs to the most trying I'm Do

And XX% then the and think mentioned the time, profitability TAC. to puts contribution not you of walk look you outlook on out at that can flow-through takes just line. as you I providing ex the impact we you're XXXX, to about on adjusted through kind a know how formal two, should this to EBITDA but

Megan Clarken

] I then [ one first the Todd. push me to Let go

Todd Parsons

ready Katy, driving, are towards ] that And delay, to market. straightforward functioning what's miss on before industry if on outlook just can a to said I DSPs -- participation how and one mostly pretty question this, assume tied and is between really CMA [ really I and trading you're reading but labeled what the about enough participating. supply -- following the Yes. about you your volumes if doing?

is, most. one is So that this this is could what imply the driving delay

working we time mentioned, building that delay of continue privacy the debugging [ course, Google whatever advantage teams. in we'll Gan pipelines use to Chrome we've have the to sandbox, continue and deck our actively built. with the I of And argue the As ] both with we're the is

the folks in we're position, there in helping us, lot along process. a bring of for a great to and ready are participate So to that be we're

Sarah Glickman

Yes, in XXXX. all, terms of first guide the for going of to -- we're not

talking obviously being we EBITDA growth So continued the of operational line that everything top to EBITDA. about the continue keep line the reinvestment that seeing flow impact metric ] And with will areas. intent [ the to rise are through It's That us. when said, balance, expectation the was for delay. into we leverage a is critical in our

as our drive, assume ] with heavy and seeing we're that the costs margin that more say, continued, say, continue assuming So we would leverage we I through a would to that for as operating operational to model. we new and in working EBITDA would that can already I very [ we sets transformation ensure our with effectively skill I coming smart are to continue as modern

Operator

comes Davidson. the of Your next Tom from from question line White

Thomas White

quarter. whether and maybe increased the ahead news of a, kind uplift of curious kind in but on we've the news guys just it whether it, order is here if any retargeting have product, type the spend the sorry near back few you of more forget the that's like impact and way opted you're to of that I you any retargeting then but commentary in about push missed bringing with of in kind cross-selling Just growth months? quantify And kind I that there the the is Google curious I'm since next that set retargeting the the retargeting you term capitalize advertisers it commitment can discussed? to saw that realize that gotten over in any delay. customers to seeing of to

Megan Clarken

to that ad back. they a customers and consumer and for it coming continue They of ahead tactics, And to No, in deprecation when solves use have Performance it need testament in hands with is that our this customers our provider out and that mostly keeping after ad times. changed audience about tactic our them. In way to once, business performance their for performance clients tech view the for working their doing. us it's we're way comes while they're Media is it solve of a in get message tactic issue in continuity they them ultimately expect never tactic there have which to tech commerce a us it know or through want, twice, and terms because addressability this cookie is They a they've good because provider find to them the model. X to their they wanted to long want more because next-generation what Google of that to upper funnel to access have tactic

and a Tom. to and answer and performance just better our bringing changed No, better not long better question, is you're for what which our clients behavior. So very outline We're and it's quick saying results here.

Sarah Glickman

smaller just we clients impact in as audience, commerce for retail about, saw that's and and terms actually in both audience. The than as into our the QX. of Yes. And the of I on quite small was said, audience commerce commerce are retargeting quarter buying from XX% retargeting shift

we -- enhancements AI -- tactics that see goes all do also We across the do. that that across mean I

[ CXT driving both audience So in the growth commerce ]. and retail that's team

Operator

Brian the Fitzgerald Your comes of from Fargo. question Wells from next line

Brian Fitzgerald

you're social We've in to in the in volumes ask Google [ wanted traffic through referrals the IPONWEB, about We or observing headwinds some the activity that any market best week. trends you levels seeing. reported and last declines were you media you're can overall discuss Are there IPONWEB what wanted around heard to weakness ask ] out seeing double-digit programmatic but network into algorithms there?

Todd Parsons

I can one, take that Brian.

of think pairs see of and between trading all, I partners. first we tear don't -- mean, trading we into details the what I

patterns they ]. to think get to time. strategies based efficient will doing nothing and change over and that new they're that different traffic most whatever towards partners it That's problematic that path I need moving they tune pairs Everybody saying shaping on is trading [ goes the without different their to supply traffic do happen.

ultimately, strategy that around. have to deploy. connect more them and time. on trade we see we're optimization X the they parties they supply all trying People and move path But change whichever So just the

Operator

of Your comes line Arete question Richard next from from the Kramer Research.

Richard Kramer

the spanning your advertisers you sort talked and past some of agencies. completeness Megan, in mentioned a the about the were, offering, publishers you've and Amazon. being alternative to how the spoke retailer point solutions And lot and of competitors also

you of ] investments. for Can becoming of are So standard? own you ever success get in And is, de pitches? what are proof of you the my higher sort to what the facto some now for Criteo points seeing preferred agencies win Are mark or direct would question despite relationships secure that? their [ rates industry

year the able sales are What Is forecast is or being clarity that pipeline? you're more the you and more that's things X rivals. to between and So what of ] of looking several some getting becoming other now that the in exceed you're making Day [ so the complete And an retail is raised over past where able had put we've distance that say that you the been really couple other hit more you're to attribute to? forecast you've Or Investor for to issue since it expectations. ourselves then the factors X are Sarah, confident there mature, others? meet media do for some volatility quarters or the in and are

Megan Clarken

Hi, on Richard. spot. Great the question,

of straightforward through not we're We think, the caveat in And I to would again, it's, let a flowing -- be advertising Although of we're so love Amazon all that's of size the there, that. this. terms agnostic one. in me

So side who's one other. joining tech the to provider

across [ retail ] would So bit love or buy in to size of sphere media Amazon that, on are network. in on buy a be, choice mat a the to complementary Criteo's on we be would that a

to -- and I buying social budget definitely And I you're where the those the Amazon you're it us, by it Walmart, retail, spend Criteo. looking it retail. about comes it's your dollars, unlock For of maybe before, an talked you're it's when national search, maybe and when across think -- agency to you're spending

you're getting our spend because is that's And point a measured so that is where retail vehicle share into consumers retailers first-party because the to somewhere of coming fair are becomes getting our it data. And through that measurement. a are the sale close grows performance to media. performance that it And using that, of evidence the of

great to ] it's so advertise. place dark And a [

clients. we continue spend, them is help For is unlock get table an bringing scale that that us their to over in the and advertising, fill sure continue clients. to to years invest They get make our is need marketing got things them, to Amazon formats and us, and, to leaning to off-site, them, to us to close properties in to all order going to trade life do We available just next that into retail ultimate guess, drive to of next the our want is to the not their that I supply what's serve the on across to that to we're that we've at magic place the power media, the Amazon the buy. more to that more and make bring sure an complement rates, start get these fill on-site, but that spend be, of them, which

space So for. what's the

Sarah Glickman

into and as guess guidance Yes. well year. the the XXXX 'XX delivered I the as address We're we feel we in obviously about of QX I if part for the good coming very 'XX. performance your other question,

good course, just very, about XXXX. very whole advertising starting the impact But after recession business. the in industry would ] at by our feel earnings [ day Of late our we

base media performance. intact. stays On We're our incredible new clients and to $XXX their We tech obviously all line show independent and that retail to a from ad our sectors have largest the through only continued of strategy we all sheet. the We've Retail we're Media, way scaled applied. platform have line growing balance bottom that numbers an top of drive million. Our

pretty that. about all, in getting So we're all good

Operator

ahead. go Please

Melanie Dambre

The Sarah. Megan today. Yes. everyone. for for Thank Investor call Thanks, our and a great now team any you, This additional you. available Have Relations Thank is questions. concludes day.

Sarah Glickman

Thank you. Bye-bye. Thank you.

Operator

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

now disconnect. may You

Criteo (CRTO) 2 May 242024 Q1 Earnings call transcript