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Criteo S.A.(CRTO) - 2024 Q3 - Quarterly Results
CRTOCriteo S.A.(CRTO)2024-10-30 11:04

Financial Performance - Q3 2024 revenue was 459million,adecreaseof2459 million, a decrease of 2% year-over-year, while gross profit increased by 13% to 232 million[2]. - Net income for Q3 2024 was 6million,or6 million, or 0.11 per diluted share, compared to 7million,or7 million, or 0.12 per diluted share in Q3 2023[10]. - Adjusted EBITDA for Q3 2024 was 82million,a2082 million, a 20% increase year-over-year, with an adjusted EBITDA margin of 31%[11]. - Free Cash Flow for Q3 2024 was 39 million, a significant increase of 925% compared to 4millioninQ32023[13].−RevenueforQ32024was4 million in Q3 2023[13]. - Revenue for Q3 2024 was 458.9 million, a decrease of 2.6% compared to 469.2millioninQ32023[38].−GrossprofitforQ32024was469.2 million in Q3 2023[38]. - Gross profit for Q3 2024 was 231.9 million, up from 205.1millioninQ32023,representinga13.0205.1 million in Q3 2023, representing a 13.0% increase[38]. - Net income for Q3 2024 was 6.1 million, compared to 6.6millioninQ32023,reflectingadecreaseof7.46.6 million in Q3 2023, reflecting a decrease of 7.4%[38]. - Adjusted EBITDA for Q3 2024 was 82,001, reflecting a 20% increase from 68,443inQ32023[48].−Thecompanyreportedanetincomeof68,443 in Q3 2023[48]. - The company reported a net income of 6,144 thousand for the three months ended September 30, 2024, a 7% decrease from 6,635thousandinthesameperiodof2023[53].−Contributionex−TACforthethreemonthsendedSeptember30,2024,was6,635 thousand in the same period of 2023[53]. - Contribution ex-TAC for the three months ended September 30, 2024, was 266,103 thousand, an 8% increase from 245,395thousandinthesameperiodof2023[57].CashFlowandAssets−Cashfromoperatingactivitiesincreasedto245,395 thousand in the same period of 2023[57]. Cash Flow and Assets - Cash from operating activities increased to 57,503 in Q3 2024, up from 19,614inQ32023,representingasignificantgrowth[43].−FreecashflowforQ32024was19,614 in Q3 2023, representing a significant growth[43]. - Free cash flow for Q3 2024 was 38,604, compared to 3,765inQ32023,indicatingasubstantialimprovement[43].−Criteo′scashandcashequivalentsdecreasedto3,765 in Q3 2023, indicating a substantial improvement[43]. - Criteo's cash and cash equivalents decreased to 208.7 million as of September 30, 2024, down from 336.3millionattheendof2023,adeclineof38.0336.3 million at the end of 2023, a decline of 38.0%[35]. - The net cash position was 283,990, reflecting a 5% increase year-over-year but a 3% decrease quarter-over-quarter[60]. - The company experienced a net decrease in cash and cash equivalents of 7,708inQ32024,comparedtoadecreaseof7,708 in Q3 2024, compared to a decrease of 28,326 in Q3 2023[41]. Operational Metrics - Contribution ex-TAC for Q3 2024 was 266million,reflectingan8266 million, reflecting an 8% year-over-year increase[8]. - Retail Media Contribution ex-TAC grew 23% year-over-year at constant currency, with a same-retailer retention rate of 120%[3]. - Criteo's activated media spend was 4.3 billion over the last 12 months, with Q3 2024 spend at 1.1billion,down21.1 billion, down 2% year-over-year[3]. - The number of clients decreased by 7% year-over-year to 17,162, down from 18,423 in Q3 2023[60]. - Revenue from Retail Media increased by 22% year-over-year to 60,765, while Performance Media revenue decreased by 5% to 398,127[60].ExpensesandLiabilities−Totalcurrentassetsdecreasedto398,127[60]. Expenses and Liabilities - Total current assets decreased to 1.14 billion as of September 30, 2024, down from 1.35billionattheendof2023,adeclineof15.71.35 billion at the end of 2023, a decline of 15.7%[35]. - Total liabilities decreased to 1.12 billion as of September 30, 2024, down from 1.32billionattheendof2023,areductionof15.01.32 billion at the end of 2023, a reduction of 15.0%[35]. - Research and development expenses increased to 85.3 million in Q3 2024, compared to 62.5millioninQ32023,anincreaseof36.462.5 million in Q3 2023, an increase of 36.4%[38]. - Total operating expenses for the three months ended September 30, 2024, were (222,330) thousand, a 15% increase compared to (193,693)thousandinthesameperiodof2023[50].−Thecompanyreportedasignificantincreaseinequityawardscompensationexpense,whichroseby43(193,693) thousand in the same period of 2023[50]. - The company reported a significant increase in equity awards compensation expense, which rose by 43% to 34,863 in Q3 2024[48]. Future Outlook - Criteo expects to return 180millionofcapitaltoshareholdersin2024,havingalreadydeployed180 million of capital to shareholders in 2024, having already deployed 157 million for share repurchases in the first nine months[3]. - For fiscal year 2024, Criteo anticipates Contribution ex-TAC growth of 10% to 11% at constant currency[16]. - Q4 2024 guidance includes expected Contribution ex-TAC between 327millionand327 million and 333 million, representing year-over-year growth of 3% to 5%[17]. - The company expects to face challenges related to technology innovation and competition, impacting future growth prospects[29]. - The company anticipates continued macroeconomic pressures, including inflation and fluctuating interest rates, affecting its business operations[29].