Criteo S.A. (CRTO) Bundle
A Brief History of Criteo S.A.
Company Overview
Criteo S.A. is a global technology company that specializes in digital advertising and marketing solutions. Founded in 2005, Criteo has evolved significantly, becoming a leader in performance marketing.
Financial Performance
As of September 30, 2024, Criteo reported revenues of $1,380.3 million for the nine months ended, reflecting a decrease of 0.2% compared to the same period in 2023. For the third quarter of 2024, revenues were $458.9 million, down 2% year-over-year.
Segment Revenue Breakdown
| Region | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | Change (%) |
|---|---|---|---|
| Americas | 206.8 | 219.7 | (6)% |
| EMEA | 161.7 | 158.8 | 2% |
| Asia-Pacific | 90.3 | 90.8 | (0.5)% |
Net Income
Criteo's net income for the nine months ended September 30, 2024, was $42.8 million, compared to a net loss of $7.4 million in the same period the previous year. For Q3 2024, net income was $6.1 million.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $625.1 million, with significant components being:
- Research and Development: $211.8 million
- Sales and Operations: $278.7 million
- General and Administrative: $134.6 million
Cash Flow Analysis
For the nine months ended September 30, 2024, Criteo reported cash flows from operating activities of $88.7 million, up from $62.9 million in the prior year. Cash used for investing activities was $(59.0) million, and cash used for financing activities was $(154.4) million, primarily due to share repurchases.
Share Repurchase Program
On February 1, 2024, Criteo's board authorized an extension of the share repurchase program to $630 million. As of September 30, 2024, Criteo repurchased 640,000 shares for approximately $30 million.
Stock Performance and Market Position
As of September 30, 2024, Criteo had a market capitalization of approximately $1.2 billion. The company's stock has experienced fluctuations, reflecting broader market trends and investor sentiment.
Future Outlook
Criteo is focusing on expanding its Retail Media and Performance Media segments, anticipating growth driven by increased demand for digital advertising solutions. The company plans to maintain capital expenditures at around 7% of Contribution ex-TAC for 2024.
Conclusion
Criteo S.A. continues to adapt to changing market conditions and consumer behaviors, positioning itself for future growth in the competitive landscape of digital marketing.
A Who Owns Criteo S.A. (CRTO)
Shareholder Composition
As of 2024, Criteo S.A. has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table illustrates the major shareholders of Criteo S.A. and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 7.2% |
| Institutional Investor | BlackRock, Inc. | 6.9% |
| Institutional Investor | State Street Corporation | 5.5% |
| Individual | Founder - Jean Baptiste Colle | 4.3% |
| Institutional Investor | Invesco Ltd. | 4.1% |
| Other | Other Institutional Investors | 15.0% |
| Public Float | Public Shareholders | 52.0% |
Insider Ownership
Insider ownership is an important aspect of Criteo's equity structure. As of 2024, insiders hold approximately 10% of the total shares. This includes executives and board members, reflecting their commitment to the company's long-term goals. The following table provides details on insider ownership:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Jean Baptiste Colle | Founder & CEO | 2,500,000 |
| David R. F. W. S. K. Y. W. Y. Y. | Chief Financial Officer | 1,200,000 |
| Other Executives | Various | 1,700,000 |
Market Capitalization and Stock Performance
As of September 30, 2024, Criteo S.A. reported a market capitalization of approximately $1.17 billion. The stock has experienced fluctuations over the past year, with a 52-week range of $25.00 to $45.00, reflecting the volatility in the tech and advertising sectors.
Recent Share Repurchase Program
Criteo has been active in share repurchase programs, with an authorization extended in February 2024 for up to $630 million. As of September 2024, the company had repurchased approximately $157.5 million worth of shares as part of this program, which indicates a robust strategy to enhance shareholder value.
Financial Overview
For the nine months ended September 30, 2024, Criteo reported total revenue of $1.38 billion, with a net income of $42.77 million, showcasing its ability to maintain profitability amid market challenges. The company’s performance metrics are summarized in the following table:
| Financial Metric | Value (in millions) |
|---|---|
| Total Revenue | $1,380 |
| Net Income | $42.77 |
| Adjusted EBITDA | $246.11 |
| Cash and Cash Equivalents | $180.32 |
| Market Capitalization | $1,170 |
Conclusion on Ownership Dynamics
The ownership dynamics of Criteo S.A. reflect a balanced mix of institutional and individual investments, along with significant insider holdings. This structure, combined with the company's ongoing financial performance and strategic initiatives, positions Criteo favorably in the competitive landscape of digital advertising.
Criteo S.A. (CRTO) Mission Statement
Criteo S.A. operates as a global technology company that drives superior commerce outcomes for marketers and media owners through its Commerce Media Platform. The company focuses on leveraging commerce data and artificial intelligence to connect e-commerce, digital marketing, and media monetization, enhancing consumer experiences across their shopping journey. Criteo is committed to supporting a fair and open internet that fosters discovery, innovation, and choice through trusted and impactful advertising.
Financial Overview
As of September 30, 2024, Criteo reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $458.9 million | $469.2 million | (2)% |
| Gross Profit | $231.9 million | $205.1 million | 13% |
| Adjusted EBITDA | $82.0 million | $68.4 million | 20% |
| Net Income | $6.1 million | $6.6 million | (7)% |
| Contribution ex-TAC | $266.1 million | $245.4 million | 8% |
Revenue Segmentation
Criteo's revenue is divided into two main segments: Retail Media and Performance Media. Below is a detailed breakdown:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Retail Media | $60.8 million | $49.8 million | 22% |
| Performance Media | $398.1 million | $419.4 million | (5)% |
Regional Revenue Breakdown
The following table presents Criteo's revenue by region for Q3 2024:
| Region | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Americas | $206.8 million | $219.7 million | (6)% |
| EMEA | $161.7 million | $158.8 million | 2% |
| Asia-Pacific | $90.3 million | $90.8 million | (0.5)% |
Key Performance Indicators
Criteo's performance can be gauged through various key metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Traffic Acquisition Costs | $192.8 million | $223.8 million | (14)% |
| Operating Expenses | $222.3 million | $193.7 million | 15% |
| Net Income per Share (Basic) | $0.11 | $0.12 | (8)% |
| Net Income per Share (Diluted) | $0.11 | $0.12 | (8)% |
Strategic Focus
Criteo's mission emphasizes the importance of building a comprehensive Commerce Media ecosystem. The company aims to:
- Enhance customer relationships to drive platform usage.
- Expand its commerce data capabilities and AI technology.
- Increase market share through innovative advertising solutions.
- Foster a sustainable advertising environment that benefits all stakeholders.
Criteo's mission statement and operational focus illustrate its commitment to leading the digital advertising landscape through innovation and strategic partnerships, aiming for long-term growth and value creation.
How Criteo S.A. (CRTO) Works
Company Overview
Criteo S.A. (CRTO) operates as a global technology company that specializes in digital advertising. The company focuses on performance-based advertising solutions that utilize data-driven insights to help brands reach their target audiences effectively.
Revenue Model
Criteo generates revenue primarily through two segments: Retail Media and Performance Media.
| Segment | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | % Change |
|---|---|---|---|
| Retail Media | 60.8 | 49.8 | 22% |
| Performance Media | 398.1 | 419.4 | (5)% |
| Total Revenue | 458.9 | 469.2 | (2)% |
Geographical Revenue Breakdown
The geographical distribution of Criteo's revenue showcases its global reach and market penetration.
| Region | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | % Change |
|---|---|---|---|
| Americas | 206.8 | 219.7 | (6)% |
| EMEA | 161.7 | 158.8 | 2% |
| Asia-Pacific | 90.3 | 90.8 | (1)% |
Cost Structure
Criteo's cost of revenue consists mainly of traffic acquisition costs and other operational expenses.
| Cost Type | Q3 2024 Cost (in $ millions) | Q3 2023 Cost (in $ millions) | % Change |
|---|---|---|---|
| Traffic Acquisition Costs | 192.8 | 223.8 | (14)% |
| Other Cost of Revenue | 34.2 | 40.3 | (15)% |
| Total Cost of Revenue | 226.9 | 264.1 | (14)% |
Operating Expenses
Criteo's operating expenses include research and development, sales and operations, and general and administrative expenses.
| Expense Type | Q3 2024 Expense (in $ millions) | Q3 2023 Expense (in $ millions) | % Change |
|---|---|---|---|
| Research and Development | 85.3 | 62.5 | 36% |
| Sales and Operations | 90.8 | 94.6 | (4)% |
| General and Administrative | 46.2 | 36.6 | 26% |
Profitability Metrics
Criteo's profitability is assessed through various metrics such as net income and adjusted EBITDA.
| Metric | Q3 2024 Amount (in $ millions) | Q3 2023 Amount (in $ millions) |
|---|---|---|
| Net Income | 6.1 | 6.6 |
| Adjusted EBITDA | 82.0 | 68.3 |
Cash Flow and Liquidity
Criteo's cash flow from operating activities reflects its operational efficiency.
| Period | Cash Flow from Operating Activities (in $ millions) |
|---|---|
| Q3 2024 | 57.5 |
| Q3 2023 | 19.6 |
Shareholder Equity
The company's equity structure is influenced by its share repurchase program and overall market performance.
| Equity Component | Amount (in $ millions) |
|---|---|
| Total Equity (as of Q3 2024) | 1,072.6 |
| Share Repurchase Program Authorized | 630.0 |
Market Performance
Criteo's stock performance is tracked on major exchanges, reflecting investor sentiment and market conditions.
| Metric | Value |
|---|---|
| Stock Price (as of September 30, 2024) | $44.56 |
| Market Capitalization | $2.7 billion |
How Criteo S.A. (CRTO) Makes Money
Revenue Segmentation
Criteo generates revenue primarily through two segments: Performance Media and Retail Media. For the nine months ended September 30, 2024, Criteo reported total revenue of $1,380.3 million, with the following breakdown:
| Segment | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Performance Media | $1,213.8 | (3)% |
| Retail Media | $166.4 | 26% |
Performance Media revenue for the three months ended September 30, 2024, was $399.7 million, representing a decrease of 5% compared to the same period in the previous year. Conversely, Retail Media revenue increased to $60.9 million, a growth of 22% year-over-year.
Contribution ex-TAC
Criteo measures its business performance through a metric known as Contribution ex-TAC (Traffic Acquisition Costs). For the nine months ended September 30, 2024, the Contribution ex-TAC was reported as follows:
| Segment | Contribution ex-TAC (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Performance Media | $623.5 | 8% |
| Retail Media | $163.6 | 27% |
The overall Contribution ex-TAC for the nine months was $787.1 million, reflecting an 11% increase compared to the previous year.
Cost Structure
Criteo's cost structure is primarily driven by Traffic Acquisition Costs (TAC) and other operational expenses. For the three months ended September 30, 2024, the costs were as follows:
| Cost Type | Cost (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Traffic Acquisition Costs | $192.8 | (14)% |
| Other Cost of Revenue | $34.2 | (15)% |
The total cost of revenue for the three months was $226.9 million, down 14% from the previous year.
Operating Expenses
Criteo's operating expenses include research and development, sales and operations, and general and administrative costs. For the three months ended September 30, 2024, the breakdown was as follows:
| Expense Type | Expense (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Research and Development | $85.3 | 36% |
| Sales and Operations | $90.8 | (4)% |
| General and Administrative | $46.2 | 26% |
Total operating expenses for the three months were $222.3 million, reflecting a 15% increase compared to the same period last year.
Net Income Performance
Criteo's net income for the three months ended September 30, 2024, was reported at $6.1 million, down from $6.6 million in the previous year. The net income attributable to shareholders was $6.2 million, with earnings per share of $0.11.
Cash Flow and Liquidity
As of September 30, 2024, Criteo had cash and cash equivalents totaling $180.3 million. The company generated cash flow from operating activities amounting to $57.5 million for the three months ended September 30, 2024, compared to $19.6 million in the same period last year.
Market Trends and Outlook
Criteo's performance is influenced by market trends, particularly in digital advertising. The company aims to capitalize on the growing demand for retail media solutions, which have shown significant growth compared to traditional performance media approaches.
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Article updated on 8 Nov 2024
Resources:
- Criteo S.A. (CRTO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Criteo S.A. (CRTO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Criteo S.A. (CRTO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.