CRTO - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to Criteo's Fourth Quarter and Fiscal Year 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, Investor Relations. Please go ahead.

Melanie Dambre

Good morning, everyone, and welcome to Criteo's Fourth Quarter and Fiscal Year 2024 Earnings Call.

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

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

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

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

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

all will published non-GAAP discuss to our most period directly Definitions of included against year. the Finance, GAAP performance. today. in earnings this unless comparisons the same the our in also We prior are stated, made metrics during growth comparable call release are and reconciliations measures otherwise

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

Megan Clarken

Thanks, Thank good morning, joining for today. and you Melanie, us everyone.

we've As officially us transition. [indiscernible] stepping all part, as And that about execute With seamless a to and XX against building sharp will and on proven I new XX. the the journey thrilled agility focus deeply I'm and to in a and He'll from future exciting take keep AI-driven I'll a joined confident passionate we years right innovate ahead. momentum the driving ensure expertise he over CEO. and be remain execution and I'm accelerated be scale, leader at track its February the my continue brings tech available to Michael growth company on XXXX, our on and created. is of to enter reigns that record the of Criteo's ad vision

of ad platform I'm of media. in from single what the we've multifunctional the sector in a which incredibly needs accomplished X at proud product addressing past retargeting tech back promise Looking a years, was to advertising fastest-growing solution together decline

we've as evident future, to a continue with best selling buying I with long become one baton, of momentum journey. solution deliver the choice been that Our of strong XXXX we the I for can achieve. promising incredible platform come do And being know way the It's excitement with We've to-date. Commerce that pass from and is so results what an for year prospects Media I Criteo our for business. as

let start results our off sharing level by So me top for 'XX.

Our high while the outstanding second us consecutive was expanding the consecutive teams work day. driving our strong and ratio year, every for year. results A gain year-over-year exceeding of leading we mix. line $X.X market top media as media ad remarkable to share and provider independent up spend, business bolstered When growth tech We retail above position XXXX with our to our highlight into also execution translated reflect shift a million Media $XXX growth margin EBITDA in Retail for third in which adjusted the are of us continue in with translated saving who billion. record XXXX XX% our our revenue. forward the the has wrapped These double-digit for

our Criteo's Our most we're strategy, on I out powerful focus momentum building. If on assets. keeps and zoom laser-focused together bringing

and at of we've premium high of into to advertising media commerce-focused next and audience the to consumers to retailer ROI privileged of our The goal. traditional industry direct that our buying make. the is platform promise measured is From that developed scale can through play the beyond extend ROI thousands to platform their and and deliver that direction, digital consistently level. propel a Criteo websites along at direction will our inventory, that of access access data standards targeting seamless reach To to class flexibility and a performance our consolidates best-of-breed optimized our attribution legacy to attract selling attribution ads [indiscernible]

ensuring advertising. unified Our to buyer is data ads to and from central from on which commerce the delivered decades we experience, rich focused X purchase. Commerce future the With our and partners, is demand-side a strategy throughout AI journey supply of of discovery targeted

first-party shoppers to and clients is and activate enhanced personalization platform that full our and in multiple growth market, needs. reach differentiated the and now utilizing advertisers our seamlessly successfully commerce goal platform. Our demand-side This with in optimize capabilities solutions Commerce commerce to enterprise all we're Criterio across our have strategies and groups during to with elevated all positioning integrate major funnel commerce performance data channels, media our to We've empower meet their of Macy's supply-side Max commerce like and through yield. the proud parts for includes

our Our and AI-driven key commerce differentiators. value independence are holistic media best-in-class performance proposition,

agencies, value with Importantly, continue strategic channel platform us. which a win us to be positions proposition for our to

of Our agency of and our the expansion rest a further that of major enterprise solutions. agencies increasingly commerce We're platform's holdco we to in momentum. U.S. our to our business agency, leveraging expect with to global holding X-year the outpaced become strategic a on now XXXX comprehensive the an more leverage see business accelerate as commerce deal powerful renewal thrilled this platform our media our to growth play. leading recent growth announce of We're partnership and excited

trust proud formats, strategic are to it a more testament that with data than their first-party agency focus understand to expanding comes industry-leading Our our the beta. and they placements and retailers, we When capabilities. ad of Criteo value relationships ad needs, we're

retail more during flywheel, up created set meaning partner we scale. media more highlighted with, unified our for offering have We've a we we brands updates, a attract. As retailers we the the

modular strategy channel. and in brands support professional helps fastest-growing and Our the scale, agencies growth our multifaceted services retailers' demand while approach advertising

beginning holding another year. the in We million half the with delivered Commerce with Harrods thrilled the expanding in in presence of collaboration announce exciting secured to partnership across our with U.S. In the significant XX% Microsoft retailer $XXX we And XXXX. DST Search are half strategic department growth first advertising over worldwide of recently the regions. more partnerships look announce new tech retailers testing as wins in Microsoft to we're in EMEA, alone, great forward making strategic happy the U.K., first category. spend our our to with a in quarter We to and luxury store progress side. part in new we're launch going through X U.S. agency new retailer our XXXX. expected with demand Meanwhile, resulting we're Max advertising agencies than integration with in on of the

an launched off-site that's extend and open Most Douglas a for video in been strength has growing across sponsored newer take Retailers benefit a display, our exactly by driven they off-site retail advertising what the our in ads that Eagle of also These represent formats, powering campaigns strategy, Albertsons adoption Our the ]. We've see display been formats new uptick on-ramp enables. ads with advertising. media Giant on-site when for we retail to their reach include and and most and where media web. largely their in our holistic And seeing opportunity. this and as we video approach clients. platform with retailers Costco work media an recently, including and [

with leading addition one participating have now XX in Criteo, Europe's opportunity ]. of about Club [ retailers, including the recent of this We toy retailers July

Xx globally pleased number brands, we XXXX, XXXX. we're of X,XXX that Meanwhile, brands across platform added are see the leveraging now to retailer is which shoppers X,XXX multiple our we reach to in brands added sites. In

growth in that Our retail media strong business program. our great with well we leading continues feel position, market to perform about

partner the Now top XX% while the more of access third-party Commerce performance we're and line of track we're our exited grew record data in AI achieve industry, advanced secure for turning XXXX. of strong the of audiences, at up of XXXX our longer at commerce of business we execute to to Retargeting capturing has to to the measurable represents believe from deprecation our traditional budgets and We're the of with We web Media. journey. budgets every a in The clients we unique of to growth around encouraged our to scenario, targeting business delivering delivered buyer full no funnel Today, the prepared combination as Performance positioned this slightly. cookies. compared close ideal outcomes any our results stage changes by XX% year, XX% enabled strategies open in success early DSP. retargeting strong in and drive plan forefront upper-funnel performance us we of demand to high with client recent our

media Facebook our social. saw advertisers spend including The In as to they plan, buy and clients a level commerce we seeing sequential Instagram, across to increase our offering performance. XX% in are and method web for XXXX. when the social at advertisers to activate and in open SKU inventory audience we're our with our multiple we excited help our beyond QX, audit, campaigns enabling and campaigns Our benefits allocated reach channels, retargeting expand optimize

a for with powerful uplift inventory performance testing Our shows commerce significant large-scale and communities. audiences [indiscernible]

channel So we're commerce experiences moving future. to social expand in into recommendations social for proving to the we quarter and be an consumers, more bringing to to with environment plan general effective availability this

in tool X continued to performance is to we continues make enabling and our just easier campaign drive innovation stage Criteo out rolled set XXXX, and automation advancing self-service management launch in ] Go Our In and our lab next-generation QX. playing in advancements and a campaigns to Promise has AI our the is model set additional unlock optimization innovating to as and towards and budgets. was We're optimize rapidly AI-driven our a for AI to faster designed success. creation growth AI-powered flex. fuels campaign future significant saw [ scale

the results setup as channels, automates AI audiences, are pleased Our around they're formats easy created our results. maximize ad clients decisions to getting and with the advanced value and

with and a with [indiscernible] of very of area remain in our for We've off activation a seen driving than this more the hundreds of to expected us half to Commerce clients since campaigns great adoption beginning pleased We're big Go is the QX. XXXX. great of and of small revenue, start

As an shape scale commerce the harness massive by XXXX, cross-selling, our of to leveraging processes advertising ongoing Criteo upselling convergence see as commerce the which through and We intent of our enters data, expansion strategic discovery, our partnerships on engagement by media. fully innovative expertise advertising signals. and growing focused sales commerce AI to formats we're drive to future opportunity ad product and XX -- the trillions of AI our of innovation of engine, years and powered

Criteo's the sizes sales strength of opportunities position ahead have of with X my We the been has delivered support. see Criteo ever basket personally strategy with sustainable, I personalized true I And we Everything clients. built Michael to by billion to We're and than The growth profitable product effort, is in to your gratitude shopping at our best achieved from confident recommendations stronger growth deepest the our well And clients. the positioned a talented SKUs, position drive a investors value. our and and and experience, operating enhancing and success. excited unwavering is we've team we've for for foundation across want maximizing valued ever. believe increasing had. express driven We're to competitive helm, shareholder continued

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

Sarah Glickman

$XXX year-over-year our and in currency we with XXXX. and Media, tax increase over to constant XX% strong In was at X% delivered includes at ex up and constant Starting over expand due million, a growth $X.X for Media, adoption significant our $XXX XX% margin and strong partners. ex X% grew was results in year. Retail was reaching Megan, continue solutions and good clients' in currency. $XXX ex revenue contribution $X.X This you, and constant contribution tax AI-powered revenue million, Thank double-digit growth, commerce audiences targeting flow was XXXX and XX% up $X.X with We financial billion contribution million tax In highlights at by was cash to with last our brands agency Revenue continued currency, retargeting expansion as Performance record everyone. generation. retailers, billion. billion, morning, of

XX% in by We our and year-over-year. free operating a EBITDA. driven adjusted cash continue to by year-over-year invest margin enabled represents of flow growth. growth strong EBITDA XX%, of while delivered top $XXX line we million, XXX We adjusted delivered up operational up leverage productivity greater fueling future This XX% basis points of

to net adjusted $XXX Our year-over-year was XX% to $X.XX income up million adjusted and increased in XX% EPS XXXX.

Media from $XXX contribution our fourth $XXX the to U.S. year-over-year the primarily ] by performance. ex TAC dollar. Turning foreign mainly grew at with includes X-year was on services reflecting constant stack weakening contribution At X% headwind growth up a in and against a targeting XX% was the and slower the December. basis, After Performance a TAP and quarter start currency, X%, supply XX% targeting euro we by by year-over-year was ad up went to QX tech of growth X%, X% offset year-over-year in of down and partially Retail currencies [ Media. million. million, million, commerce to Revenue XX% quarter, lower audience driven This back the respectively. retargeting and $X

benefit a XX%. base client broad retention and from high Overall, diverse client to we have and of continued to close

market temporary cycle. follows November, and by performed our advertising we U.S. our event well in caused the team the season. investor a advertising during This As trends election, during political in exceptionally mentioned the saw after distortion the normalize holiday

Criteo media As a spend. a has advertising as platform reminder, political commerce known

business Retail $XX constant million, to of at In on contribution revenue Media, with TAC to was XX% ex year. grew Turning segments. $XX our top million $X.XX currency the last

clients advertising Our strong growth key. holiday by multiyear driven traditional driven extension with with spend uptick contracts exceptional contribution continued same exclusive saw strength from campaigns. in our the of X at existing on-site all had was and categories grow clients. partnerships by and and real retailer in XXX%, We during an most season media Cyber in op-site another Growth retailer was

XX% advertising compared number During our year. by spend XX increased for to our grew of media last Cyber close X, brands retailers to largest and network XX% the across

sell our performance investments the of relevant addition thresholds. the as including are X,XXX their prioritizing fees from for reach products. outside quarter, QX achieving new benefited in retail higher to annual period, key brands, brands and Of Given holiday channel in late media we volume during audiences global for a the more XXX

partnerships ex tax into this contribution sustained measures our constant Media, with uplift at had double-digit with has significant continued saw up a In was in year. We currency. Week experienced the holdcos. $XXX performance and $XXX beginning through million, which also agency momentum of drove multiyear agencies was million We throughout our AI-driven gain optimization, revenue Performance and latest contribution the million, Cyber successful from ex range the which this December, We TAC benefited of quarter. X%

and our retail, X%, followed is a fastest-growing up Some more challenging end offset by Travel markets trends XX% retail. others did an such Within while fashion down in backdrop. leisure. products buyer solid of XX% strong and incredibly commerce up impressive experienced -- well vertical, and sorry, remains consumer as was by classified electronics categories both and and delivered reach hobby from We over XX% consumers ] the police audiences journey. to our spend retargeting and growth using across entire [ with audiences media in consumer clients

broader and saw oriented. lower campaigns, retargeting also to budget We some resulting shift higher in commerce

exchange by QX, $XXX delivered GAAP significant reduced client We EBITDA ad productivity, in spending trading rate driven due focus an RSUs. major our a expenses debt Lastly, QX XX% reflecting pace XXXX. were was offset our million performance due lower charges of to and in sequential hiring social investments mitigate decent tech tech foreign to euro-based expense the media benefit surer down planned adjusted proactive increased continued a a marketplace. services by following to expenses our X%, of for we in improvement our our Total lower growth for strong partially lower-than-expected operating have taken investment actions collections impact a ad costs. also on cash Overall of bad on

million XX% QX [indiscernible]. shares related operations net P&L, million XX% depreciation to income granted expense and $XX year-over-year. and QX Income up to compensation share-based was from in in the and was XXXX, our $X including increased down XXXX Moving $XX million was amortization

weighted This Our share $XX.X $X.XX. count diluted as share million. per in of was resulted diluted earnings

from financial growth no XX% Our EPS $X.XX gives flexibility shares total total up shares million We end year-over-year. canceled adjusted allocation was $XXX diluted financial QX. XXXX capital a a strategy. of We X.X XXXX, in with of benefit and in million in generation us which canceled execute strong of funded liquidity We X.X and as the in including position our long-term QX cash significant to about had December, debt. million

free $XXX strong including XX% up aloof year-over-year, fourth generated million We XXXX, quarter. in in $XXX the million

for XXX% our disciplined organic per share. our for flow This X allocation in via capital XXXX, return We cost a the repurchases. of we included enable year In of share have to buyback investments growth high $XXX and deployed continue or strategy, capital an to million acquisitions invest shareholders balanced to repurchased and to priority to million ROI cash our a shares $XX.XX share value-enhanced capital of at program. record average free

As share authorization morning we shared million. $XX million to remaining repurchase was there share to remaining up buyback the this program that Board authorized of XXXX, current our XX, under December $XXX the increased and

capital Our our and enhance ongoing strategy our business value. demonstrates our strength allocation commitment in shareholder confidence to strategy, financial

to which financial Turning XXXX. reflects our our expectations X, of February today, as outlook,

digits TAC our XXXX, grow with at we of currency constant ex in expect For mid-single each contribution to growth segments.

are progress which relationships. newer of depending upside for of initiatives key on partnerships capabilities, in guidance We we confident potential anticipate ramping and integration pride of the and new our

contribution report drive to year-over-year of throughout a We about impact estimate keep $XX the as of full changes year. you to negative abreast the year. ex trajectory will our ForEx tax $XX we We million for on million

from to we In to revenue a grow $XXX expect scaled base. Retail rapidly million continue Media,

XX% ex gains. than constant we We the share market We XX% at media anticipate forecast as currency. expect to contribution growth grow TAC spend to further faster in

with integration media have across to growth durable deep expected and our playbook drive We scale is retail our retailers network. and

the the of part transition completed reflects guidance in the model transition direct XXXX, remaining and successfully sales we we fully the later impact of client the in a gradual year. XXXX until As lap our to you our know, largest

continued Microsoft client We across expect forward look base with ramping momentum our advertising partnerships retailers. to strong and our up

single about ramping optimization Media anticipate expanding prior excited the look from to year share of purchase AI-driven we gaining We discovery and to from by on We're product to the budget over outcomes. expect grow performance contribution drive our continued for low journey and for superior advertisers significant performance course traction benefits our as while solutions ex-TAC Go AI-driven lapping client innovation from to continuing in the to focused up driving Commerce throughout see Performance despite forward scale and digits suite platform of XXXX. our enhancements

to our to with as our go-to-market around how disclosures chapter our with we ensure they continue a no review in We align strategy We our next we no of our and X% deplication the multiple transformation. business longer longer plan forward. operate going will tact enter This, business budgets, over our the of financial discussing retargeting buyer leveraging performance throughout that not means the when third-party we along client cookies. journey solutions isolate

research media our disciplined XX% of future higher scale have spend productivity an Commerce at our anniversary initiatives EBITDA a adjusted new an strategically operating ideal QX, of XX% scaling to capabilities as efficiencies. the includes with Media Michael and allocating platform, model. adjusted and cost percentage company-wide point as celebrates and that for in disciplined event management of We to retail growth EBITDA time incremental planned Criteo our as XXXX, are the our approximately performance. Overall, of teams This high cost company. Platform internal margin our enabling a XXth Commerce anticipate we areas investment joining are our representing In while a X in margin. of investing to also in continued investments growth and Media enable both for we of innovation reflects optimization his ROI AI CEO, is for in and and media It investing including XXXX. while ROI cost high This

margin flow As for enabling for this will demonstrated strong prioritized years, to generation that investments and cash high-return the in lead line us continued growth expansion. anticipate the previous We position we that making strong we years. are top growth investments coming year

we XX% between optimize of XX% is $XXX We with tax Consistent to to expected our rate infrastructure. invest and leading our be $XX CapEx AI to continue expect current million years, a and prior overall on normalized as million rules.

modeling free a of XX% assume expect items. about conversion a purposes, flow XXXX. number for outstanding flat We any rate we nonrecurring EBITDA of cash of shares in And adjusted before

in start off We're a to January. solid

at growth QX For $XXX expect to we stack XX% XXXX, basis. this At million $XXX million on represents currency. the constant a ex-TAC X% contribution growing midpoint, of X% X-year to

year benefits lucky are in a on We which leap We year $X of enhancement. lapping year-over-year impact repeat the as in well drive QX earlier of Easter, $X QX significant negative X an XXXX won't AI-driven accounted ex-TAC percentage XXXX estimate about as the sorry, as X to growth in -- prior for day points and million of and exchanges this tougher comparison million to performance a QX. period, the including contribution

as We in deliver EBITDA drive million that, we a for call generation million between strong quarter. will low seasonally expect with and believe field. $XX profitability and to media commerce continued shareholder positioned And up $XX cash value growth, the adjusted global a closing, robust are in open well XXXX questions. In powerhouse. I to We and

Do we any calls have in? coming

Operator

Ygal [Operator first comes question Citi. Instructions] Arounian The of from

Ygal Arounian

for the is Michael call Q&A? on

Megan Clarken

No, no 's he not.

Ygal Arounian

retirement We'll miss good well, next at here. and on here. steps and accomplishments So congrats from here you the luck Megan, Criteo on

a on strength? all of in maybe And then a just the that? year, I the what you comments, know how and bit as should as the think more. picture it but XQ rates had expand be that biggest bigger just we so of question, about exit little And surprises retail about just thinking take [indiscernible] we you drivers media next the in media retail prepared on were

Megan Clarken

Yes.

before given know, the big picture. it's in the right the pretty about retail around to I We're to the any it in saying because time. media And financially I'll then color he's sector. do how feel in was marketplace doing hot, of competitive to this it we that to market I'll it call, this. the believe now, team and we a base the secured compared how to you as place either us, of doing Actually, had long with market, competitors at hard space work client we've right progress Let the them. how the made I this, and talk sorts cost, of given meaning been couple that first ways. the that the open lack things plants me ahead we've the we've is, far started Todd that in the when have pass up seen very we're of those here The

a on how lot lost it what's people hard of is And is to get there.

So X-year when about ahead I when that's how -- we talk are. the we story far here,

space, so things. or And to other up. year to be companies the have we with for Microsoft wanted because retail basically wanting catch for into on last delighted And play to they partner move they were by media to their focus asked them to

this today, tomorrow feel not it more media is feels leading The scale. marketplace and entire about retail resort And has what with that company hearing offer terrific opportunity to clients. Michael opportunity be is what the just we're I into will in embraces as is So but thick. our is it it more and it the of

retailers ROI, say I'll view Todd. a Criteo's to of lot precision of remarks give to about thing talked this last the being and attribution. that advertising part the in the performance, And holistic I'll a big opening because I provide ability with

market, market to those a are things just position a we asking fantastic don't things for being provide that's of these All [indiscernible] the of -- again we them have come and have important them easy. But ahead expenses once that

Todd Parsons

Ygal, that, to hear nice to add you. can I Yes, from

of I make addition. agency large are think points only well spend very tracking there One couple in are and our we brand with a to relationships.

partnerships, they're demand and of time. momentum as to new share with those relatively our and growing. over Mac, each are with increase those I course product companies we holding or As relationships have knows, think gain ships. the gross In fruit to spend the . Obviously, Commerce beginning bear agencies which several media and we paths is which everyone managing different give we have solutions, of

grid serves choices with solution, traction which DSPs. have gain commerce the We begun other to agency's also our of

unfold spend bloom of combination a putting our handsome product the on set So our and overall. really we're years a relationships media for as mix Megan said. up And growth is as

Sarah Glickman

financial just question. had we QX, take the quarter. exceptional vertical I So an The can Retail for Media

of media network, very that, our Americas. obviously, increase in year-on-year spend the into So driven X% by about coming significant including XX% proud --

across of advertising going For our the grew Cyber the brands X, largest year-over-year. up We saw retailers. XX% we number

One as triggered higher we higher the late happened will than quarter reasons slightly volume were key why fees QX some achieving of -- our the expectation for that that in benefit XXXX. we annual thresholds also

just team go fantastic a and in as XXXX, the into we we're performance So exceptional by -- positioning.

strong to to the looking as We are have from about we the base growth million in $XXX food at from media XXXX [indiscernible], the talked we retail business. roll

things the So in all We're the doing we're right. of investing fuel future.

We sign have sort of continued to global portfolio.

guidance, spectacular the really year XX% categories a this well. with into in And the and XXXX made the represents terms to pretty We largest well as we as, of continue course, from as year XX%, this to see changes spend known of of other space. in retailer coming some lapping

the fueling are, So growth future. we're for very, very excited see foreseeable we going and this where our where we

Ygal Arounian

Great. year, X How outlook, asking well the question. things was opportunity, little margins maybe out growth the just of you're that feel triple a XQ to how real brief follow-up, on in to a I was given answer margin onetime the bit bad [indiscernible] any big I about just got Investor there profile Day. you And expectations. but you next also we at out, think and margin the of you point about the set as XXXX think do with ahead investments? to even pointed drag and relative

Sarah Glickman

Yes.

and the which that of adjusted came of the $X million from is also was fantastic a euro. of QX So in result, $X EBITDA, the weaker leverage. terms line from operational million About about that top outperformance

-- the you Europe, incremental from they from in base significant I just holding lower technology are a in people to are QX with as and who have we bonus just costs, benefited QX. the guess, in also we, there. particular people are then QX terms ask of And R&D. know, we So in coming -- so -- until, a season we And investments, and more high in had FX versus coming and pretty

So had timing. we our some spectacular traction of And processes. collections that is in a also,

build There's year over year over a year. just been

So just lower resulted DSO then too. you think ask I about bad -- businesses were me million, XXXX? for And long in for asking That as lower also ever, Media $X also our about did actually, that was expense. you Performance

Ygal Arounian

Just how -- were about but move of on kind others. a think lot margins, I'm time to can [indiscernible] you of taking

Operator

of Kelley Mark from Stifel. comes question next Our

Mark Kelley

Congrats.

then more And retirement. Or was. little Looking that older in working It bid forward questions. a Is retail service Two they'd and to hear maybe do were of puts with tech to you something switch, on One, that QX. headwinds your behaviors try with a to takes took compete favorable? to It's I thoughts the quick pleasure hear been a to maybe that sounds some issue does like what bit and just, we you actions as on would second, going forward? Amazon can you. you to the in kind to to ad back revert expect fix bit the go more? guess, I whatever partner are like love large

Megan Clarken

Mark. Thanks,

will surely what for thanks I I in comments, Great retirement. and you tell your up call get Firstly, and question. to you

into clients that going to a it I'm and have the some side, -- that. and of that to Amazon top and -- is a It very is to focused Retail it the Media, enservice. we it's things have base our switch them It taken X tail I'll let to has we think business service available a the actions. on if to -- are this focus for performing very around. notion the XXXX hear have the level, play against client spring on from small b, I today. dig most On give what there's offer Amazon doesn't is at they and the some profile specific is clients that town, pass Retail they clients to then more I'll for we of partner way there, with a And client are XXX certainly to long color that that Amazon we'll Media. because start it compete both long certainly part, me relevance So off The bid But and across service it high we sort pays a are very another on a is our on to on -- the with the X, take so provide there from hand Sarah folks. to Amazon, base better a

are aware something have not which not retail all one our on not that the is the just brand eggs some So of. basket, or side just side, is clients, in

end one we're to it all higher add the we this some is service what different so at want we color? out do and worth continue market really have. for, than going the looking -- things but of part Todd, to to always does base market these of are And we the where a touch of do do that you

Todd Parsons

add a things can I from Nice you. hear to couple of Mark. that, to

with entire built Amazon's is our landscape said, retail Megan what emphasize suite of media to just And all, product the opposed interoperability mind. neutrality between that's positioning. and to directly in of First

as that, a to data retailers are XXX today, into alike. our a of top serving with tail. neutral for especially modular very exist ported market, get and of small is On Megan So said, important. can the easily in product for it's position be But sharing concerns retailers retailers large challenging them, long we approach take to the perspective, from focused that those which that

with to video of is Amazon's page retailers. for coverage we well are So products point here our sponsored because the mix, focus this with our covering and products important and which full the beyond display goes product sponsored offering, on out

as As site that off cover I is we solution. well. of And affordable said, course,

the very to scope that be from are an that neutral fact we to solution, as that the is different our and fact place to And and of the opportunity it that we take Amazon. as good seeing matures option. can today So our a grows the is of in you're relative what part market a

Sarah Glickman

you new those Services. into Tech the formats. Ad [indiscernible] programmatic moved I mitigation trading lot do platforms moving in-house, we've customers have mean, challenge And for for out, CTV. we play can on taken I of that a actions basically accelerated and in that biggest We're will. are was XXXX Yes, take doing the if here. But just training

ad this but in XXXX. we there's a player been ultimately, business, large in ultimately of and number So tech lap actions those -- will

on on but bottom actions So line, importantly, top the right the also the line.

entire we leverage our and to the operational our place XX, how all across continue at we look into top going the see of we ensure from to the business at the line. we look bottom strong businesses overall, have rule a and So as line do we right resources right investments

Operator

. from Another Zgutowicz. Mark Mr. comes question

Mark Zgutowicz

And of upside And Really in our how lapping media was benefit relative nice I upside you or see? that of fourth in driving that transition expectations. retail then was least you quarter to take take that on terms meaningful much large you sort or how at continue think rate I that now? of rate lapping the just curious that relative volumes be to that efficiencies saw off-site may here client to on-site

Sarah Glickman

for sponsors. I the Yes. in most first growth all, mean, part, significant saw on-site we

the and area So said, going also site. of for the budgets during spot, ramping that's and holiday our most that's what we're where being saw we season. that significant the going, sure, of saw are in certainly, is sweet we was on-site That sponsored growth. up But certainly

don't As you specific on know, clients. we comment

I say, specifics increase for Americas, year-on-year. as with and spectacular media were I'm clients, fees those base but was in said, client things. blended at thresholds. beating second, a up. rate would ramping run across . And the then clients So take annual a new tiered And X One rate just we to give the not XX% the I a growth, -- have was going upside on and we from

a overall. look would the bleed resilient that rate. comments we some at take talked resilient we see That do a also rate XXXX. So good of enough. was take And will where event took to into the I We media about retail

particular, media retail is continued rates largest take above strong have above Our that in we and we our market, as spend that's and that continued media market. Americas have well, given in assumption the mid-teens.

Mark Zgutowicz

ask And to one just unrelated if I Microsoft. question related could perhaps

contemplated, contribution Just quarter curious there or annual was either first that much guide? the your in how

Sarah Glickman

Yes.

for impact, some And likely plan no would to some half, XXXX. second well. In but contribution, retailers do It's overall is will the with going start launch I into we the that that progressing the terms up of QX, ramping into first in or really say, let every baked for see of half. .

Operator

Another question Arete. of from Mr. comes Richard Kramer

Richard Kramer

just promotional [indiscernible] not on and the...

Sarah Glickman

we can't the bring hear No, sorry. you. sorry, and you, Richard, Richard, Sorry, Can we'll I'm cannot we maybe then question, next we [indiscernible] move hear to

the we So then we'll . bring maybe back to in. Can and we'll you question next bring go in. back Richard

Operator

Okay.

So Tom our D.A. Davidson. next from comes question Mr. White of

Thomas White

guess Megan. guidance. Great. quick for the Sarah just One and one I one on quick then a for

pace mentioned sort You the upside I the X upside then of of that potential And guess retirement. or the congrats opportunities. and ramp maybe meaningful that 'XX. just you again, things that maybe in roll Can off. kind be X after of potential Microsoft Megan, on drivers would of kind of enumerate

you remarks You made on that what Could comments enterprise agencies you play. quickly an of there? elaborate sort in viewing the meant Criteo just about prepared increasingly as maybe

Sarah Glickman

in all, of first I well, -- is next of terms the Michael weeks. In coming say, would

upside now going move see we the He's some our a upstart on been the base we the see terrific, What's guidance to road on to say, is, terrific potential to us our it's continued board for across so that. Go. would base, places traction would half. be see second like into of We're that our potential. capabilities have product -- new seeing certainly client another And year. we where potential and upside the spectacular And map Commerce we I testing going across do in looking beta see and do

road of more that focus we're And velocity end those quickly to stage that obviously, of the well. going but they updates our do on XXXX. XXXX wanted ensuring come right some there's we and lot into capability can, obviously, I time take product add in be and as as map new build at towards a as But coming have not a Todd, to into of on that they you lot know commentary will

Todd Parsons

Yes.

get space getting maybe promising, I for have very retail Sarah and agencies. them very as to being into is Max, commerce automated to to to of Criteo, earlier what a now I think are taken Plus which which just media. a said agencies world Advantage by of and that Performance paths reemphasize Go gives competes in up media question, with Ygal's that just which the X view response mentioned increasingly them view

in trading budgets media retailers. plan, their a a retail the measure agency and addition, In we ability function have do an commerce-focused which DSP, gives to buy across

say if offering And to service is which DSP then, it incredibly that partner all an and choice SSP we we enterprise-level that being of day. agencies in seen ways can with as have of Google, Max Commerce is and way course, all the our Commerce of on are be which seen that will commerce, but day, agency isn't focused like many every Grid, the

Operator

We have Research. from Arete Kramer now Richard

Richard Kramer

me hear Okay. Can you now?

you what failure, X-year the and for for question now, not equipment sort just When refreshingly on being is I in fourth of what have a covered agencies contracts. for visibility the right, business do of or and the that. your you guess you I my budget ago? broadly communication Megan, you to about the follow-up relative for Sorry a leave of promotional years. over given thank the portion now of sort Todd. XXXX is start have And sort a the of forecast years year? few the comments

in retailer and retail you've to sort access it's inventory the margins code website your pools competitive to these mentioned seen media. specific wider respect all social of in to you or of performance alongside you or got meta [indiscernible] And Megan would in with much edge getting inventory of speak the recently, inventory what get, partnerships. was ads whether

Megan Clarken

Thanks, Richard.

that insight current that where other and planning pretty we as an sort -- does by to on the Let the how a through We We that through we get we client. of business client look risks because made year. look at bit a that out year client to financial we in and that into need a the in opportunities a about to the that investments color. contracts prior financial renewing being more one will as the process. opportunities. ROI in year of at those or roll bottom-up and, pass sort much any the try look run anything look the years at or We like through. year across be will we business and is attribute year, made of we investment top-down our weigh That's It's that Sarah. But out get those in every for this and me me the rigorous numbers. possibly just for planning. have way plan their then is going [indiscernible] with can start a that course, of I'm it's terms the cost year. to process

Sarah Glickman

is it. the first, Well, are going, focus -- think continue mean, we and day a in other we was we media I that's retail where into even see did the are. reading see to that's I coming to players last you've on The agreements and coming the actually spend said Yes. we money the lot Obviously, in. that have in spend earnings clearly where signed. of then What

year-on-year. terms kind the by client associated rates is with based growth of itself, In kind of it client of plan

and expectations whether -- growth know they clients for what our want. also for We

So detailed plan. a is it

say, have, also of business every I some capability would would the that puts clients there and factored all and into and business year, we And clients known of happens, quarter I gets of knowing say, baked new expectation within that some coming single and some, takes that that. in, an ramp-up We new have degree are just and single every in. clearly caution

about for confident Criteo. about very the So feel we overall good -- guidance

had We retail year terms this In including media. spectacular year of QX. a

new a upside to things get the right terms the budget cetera, that need partnership, I could capabilities, tougher well. with retail et say, that it's of to be certainly, lot in of media would potential Microsoft So a for as

Todd Parsons

you. nice to Richard, from hear

the buyer direct likely most to continues it where just they back them consider to consumers, want through On products, the customers, are. in new where go objective and fact that and question and to help the journey. clients be discover customers to about they're our and meta selling to buy meet retail them their social to general,

outcomes makes to able that we're hold making not a to customer that is to that So a to wise just has get continues to product across get be lifetime their the but The acquired importantly, higher constant it time. they that is want value an be easier first discovered in the to buyer channels a product what those much for way that promise which mantra. performance do for

constant we're them. reaching And sure making is that we're so that sure dynamically what budgets we we they another doing rate not making but are a just perform at or across to channels, new relative one reallocate

we very the So advantage unique play not And have. channels. that's our across channel that just that's It's to outcome competitive an company. a play. It's

Operator

BMO final from Our Mr. coming be Capital will Brian of question Markets. Pitz

Brian Pitz

see retailers XX think And guidance I using echo on also, clients additional retail have from internal off-site campaigns? to And and upside you need Can to these some not depending there? you initiatives. you the the you the believe on off-site congratulations versus drive I leveraging more off-site possible on those spend Any clients insights provide mentioned to what sense to Megan you Sarah, strategic remarks, media do prepared I retirement. in the campaigns.

Sarah Glickman

relate we're that XXXX. for actually to initiatives strategic doing the mean, I everything

So broad of a growth. in statement very investments terms new areas in have that of was we deliberately drive place to put

base client the as of some a these on spoke think position as we across broad base about and with for Media feel those, but that. I Todd retailer we're unique investments a in well large Performance

the working him on it all -- to we on in, that those. we to laser-focused And with with are Michael execute traction really obviously, relates initiatives. ensure coming those that So

have upside of traction the on we growth highly be X another come a to of we well. great growth. to launch adoption years terms ensuring another those will of market and of focused that year is So successfully want will initiatives that as double-digit in

Todd Parsons

it. their buyer cheap which time. in entire with aren't that going Otherwise, partners add to is over capabilities, a our mentioned that for off-site can be Brian. just buy to that, before, the retailers, channel reach. interested we're I'd be I covering journey

isn't retailer sure they're new either to stocking products that of for that brand to is to that us, effective partners is something able considering or That's audit really those off-site driving and cheap buyers incrementality being find for events dollars product way So their about that an providing helping they're with be clearly driving is a set a achieved. traffic event that or purchasing attach so very a purchasing those a to reach. KPIs

important. And that is incredibly

their brands they're inventory In data, in maturity how and terms be for audiences their with wares, growing and buying their channel, their their are retailer of packaging their that's about each networks. sits to the that how going

then not a that So it offsite to versus as we we're is we very at at built look holistically much serve This more on-site. simply dynamic it look one. all,

Melanie Dambre

available Sarah Megan, This Thank Investor now today. for The any you, Thanks, joining. nice for everyone, a day. other our questions. Relations Todd. call is Have concludes team and for

Operator

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

disconnect. may now You

Criteo (CRTO) 5 Feb 252024 Q4 Earnings call transcript