Criteo S.A.(CRTO) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $450 million, with Contribution ex-TAC increasing to$ 254 million, reflecting a year-over-year growth of 17% at constant currency [64][99] - Adjusted diluted EPS was $0.80, up 60% year-over-year, indicating strong financial performance [48][52] - Adjusted EBITDA was$ 71 million, up 83% year-over-year, driven by operational leverage and cost discipline [97] Business Line Data and Key Metrics Changes - Retail Media segment revenue was $51 million, with Contribution ex-TAC growing 34% at constant currency to$ 50 million, primarily driven by the US, Germany, and the UK [65][66] - Performance Media revenue was $399 million, with Contribution ex-TAC at$ 204 million, up 13% at constant currency, and Commerce Audiences Targeting grew 54% year-over-year [6][64] Market Data and Key Metrics Changes - The company added over 100 new brands in Q1, with agency spend reaching about $100 million for the first time, indicating strong market traction [55][66] - Retail Media is expected to continue gaining market share, with 38% year-over-year growth in activated media spend [53] Company Strategy and Development Direction - The company is focused on transforming into a commerce media powerhouse, leveraging AI-driven performance and expanding its Retail Media presence [33][40] - The strategy includes investing in high-ROI organic investments and value-enhancing acquisitions while returning capital to shareholders through a share buyback program [68][99] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and business model, anticipating continued success and strong performance in Retail Media [11][33] - The delay in cookie deprecation is seen as an opportunity to enhance performance and develop innovative solutions [42][76] Other Important Information - The company plans to repurchase$ 150 million of stock in 2024, with $62 million already deployed in Q1 [8] - The company has a robust balance sheet with$ 805 million in total liquidity, providing significant financial flexibility [98] Q&A Session Summary Question: How is cookie deprecation impacting annual guidance? - Management indicated that the delay in cookie deprecation provides an opportunity to enhance performance and develop innovative solutions, with an estimated impact of about $35 million for 2024 [14][76] Question: What is the outlook for retargeting growth? - Management noted that retargeting remains a resilient tactic, with growth driven by AI enhancements and partnerships, and expects continued performance without significant impact from signal loss [75][80] Question: What are the competitive dynamics in Retail Media? - Management highlighted a fragmented competitive environment, with the company moving ahead of smaller players and focusing on serving existing clients to attract more market share [88][120] Question: How is the agency channel performing? - Management reported strong traction in the agency channel, with significant growth in agency spend and partnerships, indicating a positive trend for Retail Media [114][126]