Criteo Reports Strong Financial Results in Second Quarter 2021

Company Raises Outlook for Fiscal 2021 Revenue ex-TAC and Adjusted EBITDA margin

NEW YORK, Aug. 4, 2021 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO), the global technology company that provides the world's leading Commerce Media Platform, today announced financial results for the second quarter ended June 30, 2021 that exceeded the Company's quarterly guidance.

Second Quarter 2021 Financial Highlights:

The following table summarizes our consolidated financial results for the three and six months ended June 30, 2021 and 2020:


Three Months Ended


Six Months Ended


June 30,


June 30,


2021

2020


YoY
Change


2021


2020


YoY
Change


(in millions, except EPS data)

GAAP Results











Revenue

$

551


$

438



26

%


$

1,092



$

941



16

%

Net Income

$

15


$

6



144

%


$

38



$

23



70

%

Diluted EPS

$

0.23


$

0.09



156

%


$

0.58



$

0.34



71

%

Cash from operating activities

$

26


$

33



(21)

%


$

104



$

90



15

%

Net cash position

$

490


$

578



(15)

%


$

490



$

578



(15)

%












Non-GAAP Results1











Revenue ex-TAC

$

220


$

180



22

%


$

434



$

386



12

%

Revenue ex-TAC margin

40

%

41

%


(1)

%


40

%


41

%


(1)

%

Adjusted EBITDA

$

67


$

39



73

%


$

143



$

98



46

%

Adjusted diluted EPS

$

0.63


$

0.27



133

%


$

1.31



$

0.79



66

%

Free Cash Flow (FCF)

$

13


$

15



(11)

%


$

77



$

60



28

%

"We continue to execute on our Commerce Media Platform strategy and are excited to see our vision coming to life," said Megan Clarken, CEO. "We feel very good about our solid performance and continued momentum."

Q2 2021 Operating Highlights

  • The media spend we activated for marketers and media owners increased 31% year-over-year.
  • New solutions grew 50% year-over-year at constant currency2 to 25% of total revenue ex-TAC.
  • Retail Media revenue grew 10% and Retail Media Revenue ex-TAC grew 49% year-over-year at constant currency2. Same-retailer revenue ex-TAC3 for Retail Media increased 65% year-over-year.
  • Criteo acquired Mabaya, a leading retail media technology company that powers sponsored products and retail media monetization for major ecommerce marketplaces globally.
  • We added Best Buy and a large high-end fashion specialty retailer in the U.S to our Retail Media Platform.
  • We added over 700 net new clients and closed the quarter with over 21,300 clients.
  • Same-client revenue3 increased 22% and same-client revenue ex-TAC2 increased 16% year-over-year at constant currency2.
  • We expanded our Product leadership team, with a series of key hires to accelerate Product innovation and Go-to-Market.
  • During our successful 2021 Investor Day, we revealed our roadmap for the future of the open internet and unveiled our new Criteo branding to align with our significant transformation executed over the last year, including a new logo, visual identity and brand positioning, "The Future is Wide Open".

___________________________________________________

1 Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, Revenue ex-TAC margin, Adjusted EBITDA, Adjusted EBITDA at constant currency, Adjusted EBITDA margin, Adjusted diluted EPS, Free Cash Flow and growth at constant currency are not measures calculated in accordance with U.S. GAAP.

2 Constant currency measures exclude the impact of foreign currency fluctuations and is computed by applying the 2020 average exchange rates for the relevant period to 2021 figures.

3 Same-client revenue or Revenue ex-TAC is the revenue or Revenue ex-TAC generated by clients that were live with us in a given quarter and still live with us the same quarter in the following year.

Financial Summary

Revenue for Q2 2021 was $551 million and Revenue ex-TAC was $220 million. Adjusted EBITDA for the quarter was $67 million, resulting in an adjusted diluted EPS of $0.63. At constant currency, Q2 2021 Revenue increased by 22% and Revenue ex-TAC increased by 18%. Free Cash Flow was $13 million in Q2 2021, growing 28% in the first half 2021 to $77 million, and driving a Free Cash Flow conversion rate of 54% of Adjusted EBITDA in the first half 2021. As of June 30, 2021, we had $553 million in cash and marketable securities on our balance sheet.

Sarah Glickman, Chief Financial Officer, said, "With strong double-digit growth in our new solutions, fast execution on our leading Commerce Media Platform and solid operating margins, we continue to invest in our sustainable and profitable growth."

Revenue and Revenue ex-TAC

Revenue increased by 26% year-over-year in Q2 2021, or 22% at constant currency, to $551 million (Q2 2020: $438 million). Revenue ex-TAC in the quarter increased 22% year-over-year, or 18% at constant currency, to $220 million (Q2 2020: $180 million). Revenue ex-TAC as a percentage of revenue, or Revenue ex-TAC margin, was 40% (Q2 2020: 41%).

  • Marketing Solutions revenue grew 28% (or 23% at constant currency) and Marketing Solutions revenue ex-TAC grew 19% (or 15% at constant currency), driven by increased spend from Retail clients, both on our retargeting and audience targeting solutions, offsetting part of the negative impact from continued lower spend from Travel clients.
  • Retail Media revenue grew 13% (or 10% at constant currency) and Retail Media revenue ex-TAC increased 53% (or 49% on a constant currency basis), driven by good execution around Prime Day in North America and continued traction in EMEA.

  • In the Americas, Revenue increased 19% year-over-year, or 19% at constant currency, to $221 million and represented 40% of total Revenue. Revenue ex-TAC increased 24% year-over-year, or 23% at constant currency, to $87 million and represented 40% of total Revenue ex-TAC.
  • In EMEA, Revenue increased 31% year-over-year, or 21% at constant currency, to $209 million and represented 38% of total Revenue. Revenue ex-TAC increased 22% year-over-year, or 13% at constant currency, to $85 million and represented 38% of total Revenue ex-TAC.
  • In Asia-Pacific, Revenue increased 31% year-over-year, or 29% at constant currency, to $121 million and represented 22% of total Revenue. Revenue ex-TAC increased 22% year-over-year, or 20% at constant currency, to $49 million and represented 22% of total Revenue ex-TAC.

Net Income and Adjusted Net Income

Net income grew 144% to $15 million in Q2 2021 (Q2 2020: $6 million). Net income margin as a percentage of revenue was 3% (Q2 2020: 1%). In the quarter, we incurred $10 million in restructuring related and transformation costs. Net income available to shareholders of Criteo S.A. was $15 million, or $0.23 per share on a diluted basis (Q2 2020: $6 million, or $0.09 per share on a diluted basis).

Adjusted Net Income, or net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs, restructuring related and transformation costs and the tax impact of these adjustments, was $41 million, or $0.63 per share on a diluted basis (Q2 2020: $17 million, or $0.27 per share on a diluted basis).

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA increased 73% year-over-year, or 61% at constant currency, to $67 million (Q2 2020: $39 million), driven by the Revenue ex-TAC performance over the period and effective cost management balanced with growth investments. Adjusted EBITDA as a percentage of Revenue ex-TAC, or Adjusted EBITDA margin, was 31% (Q2 2020: 22%).

Operating expenses increased by 20% or $27 million, to $163 million (Q2 2020: $136 million), mostly driven by investments in our growth areas, including R&D, in a context of disciplined expense management. Operating expenses, excluding the impact of equity awards compensation expense, pension costs, acquisition-related costs, restructuring related and transformation costs, and depreciation and amortization, which we refer to as Non-GAAP Operating Expenses, increased by 9% or $11 million, to $131 million (Q2 2020: $120 million), driven by investments in our growth areas, including R&D, and the impact of our growing stock price on our social charges over the period.

Cash Flow, Cash and Financial Liquidity Position

Cash flow from operating activities decreased 21% year-over-year to $26 million in Q2 2021 (Q2 2020: $33 million) and grew 15% to $104 million in the first half 2021 (H1 2020: $90 million).

Free Cash Flow, defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment, decreased 11% to $13 million (Q2 2020: $15 million), but grew 28% in the first half 2021 to $77 million (H1 2020: $60 million), driving a Free Cash Flow conversion rate of 54% of Adjusted EBITDA in the first half 2021 (H1 2020: 61%).

In Q2 2021, we acquired Mabaya, expanding our Commerce Media Platform into the exciting area of online marketplaces. Cash and cash equivalents increased $2 million compared to December 31, 2020 to $490 million, after the Mabaya acquisition and spending $30 million on share repurchases in the second quarter of 2021.

As of June 30, 2021, the Company had total financial liquidity in excess of $1 billion, including its cash position, marketable securities, Revolving Credit Facility and treasury shares reserved for M&A.

Business Outlook

The following forward-looking statements reflect Criteo's expectations as of August 4, 2021.

Fiscal year 2021 guidance:

  • We raise our Revenue ex-TAC growth outlook to between +6% and +8% at constant-currency.
  • We raise our expectation of our Adjusted EBITDA margin to approximately 32% of Revenue ex-TAC.

Third quarter 2021 guidance:

  • We expect Revenue ex-TAC between $202 million and $205 million, translating into constant-currency growth between +8% and +9% year-over-year.
  • We expect Adjusted EBITDA between $47 million and $50 million.

The above guidance for the third quarter and the fiscal year ending December 31, 2021 assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.831, a U.S. dollar-Japanese Yen rate of 108, a U.S. dollar-British pound rate of 0.719, a U.S. dollar-Korean Won rate of 1,112 and a U.S. dollar-Brazilian real rate of 5.36.

The above guidance assumes no acquisitions are completed during the third quarter ending September 30, 2021 and fiscal year ended December 31, 2021.

Reconciliation of Revenue ex-TAC and Adjusted EBITDA guidance to the closest corresponding U.S. GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of equity awards compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. The variability of the above charges could potentially have a significant impact on our future U.S. GAAP financial results.

Non-GAAP Financial Measures

This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission ("SEC"): Revenue ex-TAC, Revenue ex-TAC by Region, Revenue ex-TAC by Solution, Revenue ex-TAC margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted diluted EPS, Free Cash Flow and Non-GAAP Operating Expenses. These measures are not calculated in accordance with U.S. GAAP.

Revenue ex-TAC is our revenue excluding Traffic Acquisition Costs ("TAC") generated over the applicable measurement period and Revenue ex-TAC by Region reflects our Revenue ex-TAC by our geographies. Revenue ex-TAC, Revenue ex-TAC by Region, Revenue ex-TAC by Solution, and Revenue ex-TAC margin are key measures used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue can provide a useful measure for period-to-period comparisons of our business and across our geographies.

Accordingly, we believe that Revenue ex-TAC, Revenue ex-TAC by Region, Revenue ex-TAC by Solution and Revenue ex-TAC margin provide useful information to investors and the market generally in understanding and evaluating our operating results in the same manner as our management and board of directors.

Adjusted EBITDA is our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs and restructuring related and transformation costs.

Adjusted EBITDA and Adjusted EBITDA margin are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that by eliminating equity awards compensation expense, pension service costs and restructuring related and transformation costs, Adjusted EBITDA and Adjusted EBITDA margin can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Adjusted Net Income is our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring related and transformation costs and the tax impact of these adjustments. Adjusted Net Income and Adjusted diluted EPS are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital.

In particular, we believe that by eliminating equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring related and transformation costs and the tax impact of these adjustments, Adjusted Net Income and Adjusted diluted EPS can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted Net Income and Adjusted diluted EPS provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Free Cash Flow is defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment. Free Cash Flow Conversion is defined as free cash flow divided by Adjusted EBITDA. Free Cash Flow and Free Cash Flow Conversion are key measures used by our management and board of directors to evaluate the Company's ability to generate cash. Accordingly, we believe that Free Cash Flow and Free Cash Flow Conversion permit a more complete and comprehensive analysis of our available cash flows.

Non-GAAP Operating Expenses are our consolidated operating expenses adjusted to eliminate the impact of depreciation and amortization, equity awards compensation expense, pension service costs, and restructuring related and transformation costs. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures the Company uses to provide its quarterly and annual business outlook to the investment community.

Please refer to the supplemental financial tables provided in the appendix of this press release for a reconciliation of Revenue ex-TAC to revenue, Revenue ex-TAC by Region to revenue by region, Revenue ex-TAC by Solution to revenue by solution, Adjusted EBITDA to net income, Adjusted Net Income to net income, Free Cash Flow to cash flow from operating activities, and Non-GAAP Operating Expenses to operating expenses, in each case, the most comparable U.S. GAAP measure. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider such non-GAAP measures in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: 1) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and 2) other companies may report Revenue ex-TAC, Revenue ex-TAC by Region, Revenue ex-TAC by Solution, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-GAAP Operating Expenses or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our U.S. GAAP financial results, including revenue and net income.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including projected financial results for the quarter ending June 30, 2021 and the year ended December 31, 2021, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure related to our technology and our ability to innovate and respond to changes in technology, uncertainty regarding the scope and impact of the COVID-19 pandemic on our employees, operations, revenue and cash flows, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, including without limitation uncertainty regarding the timing and scope of proposed changes to and enhancements of the Chrome browser announced by Google, investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions materialize as expected, uncertainty regarding international growth and expansion, the impact of competition, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith, the impact of consumer resistance to the collection and sharing of data, our ability to access data through third parties, failure to enhance our brand cost-effectively, recent growth rates not being indicative of future growth, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, and the financial impact of maximizing Revenue ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in the Company's SEC filings and reports, including the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2021, and in subsequent Quarterly Reports on Form 10-Q as well as future filings and reports by the Company. Importantly, at this time, the COVID-19 pandemic continues to have a significant impact on Criteo's business, financial condition, cash flow and results of operations. There are significant uncertainties about the duration and the extent of the impact of the COVID-19 virus.

Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Conference Call Information

Criteo's senior management team will discuss the Company's earnings on a call that will take place today, August 4, 2021, at 8:00 AM ET, 2:00 PM CET. The conference call will be webcast live on https://www.webcaster4.com/Webcast/Page/1274/42221 and will be available for replay on the Company's website ir.criteo.com.

  • U.S. callers:
  • International callers:

+1 855 209 8212

+1 412 317 0788 or +33 1 76 74 05 02

Please ask to be joined into the "Criteo S.A." call.

About Criteo

Criteo (NASDAQ: CRTO) is the global technology company that provides the world's leading Commerce Media Platform. 2,500 Criteo team members partner with over 21,000 marketers and thousands of media owners around the globe to activate the world's largest set of commerce data to drive better commerce outcomes. By powering trusted and impactful advertising, Criteo brings richer experiences to every consumer while supporting a fair and open internet that enables discovery, innovation and choice. For more information, please visit criteo.com.

Contacts

Criteo Investor Relations
Edouard Lassalle, SVP, Market Relations & Capital Markets, e.lassalle@criteo.com
Clemence Vermersch, Director, Investor Relations, c.vermersch@criteo.com

Criteo Public Relations
Jessica Meyers, Director, Public Relations, Americas, j.meyers@criteo.com

Financial information to follow

CRITEO S.A.

Consolidated Statement of Financial Position

(U.S. dollars in thousands, unaudited)




              June 30, 2021


     December 31, 2020

Assets





Current assets:





Cash and cash equivalents


$

489,521



$

488,011


 Trade receivables, net of allowances of $42.6 million and $39.9 million at June 30, 2021 and December 31, 2020, respectively 


438,703



474,055


Income taxes


13,055



11,092


Other taxes


71,866



69,987


Other current assets


21,841



21,405


Marketable Securities - current portion


53,471




Total current assets


1,088,457



1,064,550


Property, plant and equipment, net


161,971



189,505


Intangible assets, net


88,558



79,744


Goodwill


332,295



325,805


Right of Use Asset - operating lease


130,104



114,012


Marketable securities - non current portion


10,000



41,809


Non-current financial assets


14,766



18,109


Deferred tax assets


16,291



19,876


    Total non-current assets


753,985



788,860


Total assets


$

1,842,442



$

1,853,410







Liabilities and shareholders' equity





Current liabilities:





Trade payables


$

341,047



$

367,025


Contingencies


1,945



2,250


Income taxes


3,105



2,626


Financial liabilities - current portion


3,219



2,889


Lease liability - operating - current portion


37,243



48,388


Other taxes


54,697



58,491


Employee - related payables


74,491



85,272


Other current liabilities


40,988



33,390


Total current liabilities


556,735



600,331


Deferred tax liabilities


4,176



5,297


Defined benefit plans


6,014



6,167


Financial liabilities - non-current portion


375



386


Lease liability - operating - non-current portion


103,888



83,007


Other non-current liabilities


13,185



5,535


    Total non-current liabilities


127,638



100,392


Total liabilities


684,373



700,723


Commitments and contingencies





Shareholders' equity:





Common shares, €0.025 par value, 66,697,360 and 66,272,106  shares authorized, issued and outstanding at June 30, 2021 and December 31, 2020, respectively.


2,173



2,161


Treasury stock, 6,080,008 and  5,632,536 shares at cost as of June 30, 2021 and December 31, 2020, respectively.


(111,823)



(85,570)


Additional paid-in capital


720,762



693,164


Accumulated other comprehensive income (loss)


(7,438)



16,028


Retained earnings


519,893



491,359


Equity - attributable to shareholders of Criteo S.A.


1,123,567



1,117,142


Non-controlling interests


34,502



35,545


Total equity


1,158,069



1,152,687


Total equity and liabilities


$

1,842,442



$

1,853,410


 

 

CRITEO S.A.
Consolidated Statement of Income
(U.S. dollars in thousands, except share and per share data, unaudited)




Three Months Ended




Six Months Ended





June 30,




June 30,





2021


2020


YoY

Change


2021


2020


YoY

Change














Revenue


$

551,311



$

437,614



26

%


$

1,092,388



$

940,990



16

%














Cost of revenue













Traffic acquisition cost


(331,078)



(257,698)



28

%


(658,745)



(555,062)



19

%

Other cost of revenue


(37,364)



(33,914)



10

%


(72,076)



(67,720)



6

%














Gross profit


182,869



146,002



25

%


361,567



318,208



14

%














Operating expenses:













Research and development expenses


(41,915)



(31,247)



34

%


(73,612)



(68,762)



7

%

Sales and operations expenses


(80,751)



(75,781)



7

%


(160,105)



(160,755)



(0.4)

%

General and administrative expenses


(40,474)



(29,185)



39

%


(73,902)



(55,100)



34

%

Total Operating expenses


(163,140)



(136,213)



20

%


(307,619)



(284,617)



8

%

Income from operations


19,729



9,789



102

%


53,948



33,591



61

%

Financial expense


(519)



(1,003)



(48)

%


(1,237)



(1,337)



(7)

%

Income before taxes


19,210



8,786



119

%


52,711



32,254



63

%

Provision for income taxes


(4,181)



(2,636)



59

%


(14,232)



(9,676)



47

%

Net Income


$

15,029



$

6,150



144

%


$

38,479



$

22,578



70

%














Net income available to shareholders of Criteo S.A.


$

14,804



$

5,716



159

%


$

37,210



$

21,175



76

%

Net income available to non-controlling interests


$

225



$

434



(48)

%


$

1,269



$

1,403



(10)

%














Weighted average shares outstanding used in computing per share amounts:













Basic


60,663,301



61,415,467





60,702,780



61,553,875




Diluted


64,665,212



61,790,135





64,371,603



61,958,499

















Net income allocated to shareholders per share:













Basic


$

0.24



$

0.09



167

%


$

0.61



$

0.34



79

%

Diluted


$

0.23



$

0.09



156

%


$

0.58



$

0.34



71

%

 

 

CRITEO S.A.

Consolidated Statement of Cash Flows

(U.S. dollars in thousands, unaudited)




Three Months Ended




Six Months Ended





June 30,




June 30,





2021


2020


YoY

Change


2021


2020


YoY

Change

Net income


$

15,029



$

6,150



144

%


$

38,479



$

22,578



70

%

Non-cash and non-operating items


35,888



33,083



8

%


65,905



65,911



%

           - Amortization and provisions


25,161



27,907



(10)

%


42,386



54,951



(23)

%

           - Equity awards compensation expense (1)


11,670



7,160



63

%


18,885



15,662



21

%

           - Net gain or (loss) on disposal of non-current assets


14



(123)



NM



3,959



2,143



85

%

           - Change in deferred taxes


(2,693)



(4,939)



(45)

%


2,305



(7,617)



NM


           - Change in income taxes


1,724



3,056



(44)

%


(1,655)



727



NM


           - Other


12



22



(45)

%


25



45



(44)

%

Changes in working capital related to operating activities


(24,557)



(5,856)



NM



(662)



1,631



NM


           - (Increase) / Decrease in trade receivables


(21,031)



27,318



NM



26,195



126,706



(79)

%

           - Increase / (Decrease) in trade payables


(9,266)



(22,118)



(58)

%


(19,906)



(103,797)



(81)

%

           - (Increase) / Decrease in other current assets


(137)



15,448



NM



(5,187)



5,050



NM


           - Increase / (Decrease) in other current liabilities


3,458



(25,503)



NM



(1,069)



(26,448)



(96)

%

           - Change in operating lease liabilities and right of use assets


2,419



(1,001)



NM



(695)



120



NM


CASH FROM OPERATING ACTIVITIES


26,360



33,377



(21)

%


103,722



90,120



15

%

Acquisition of intangible assets, property, plant and equipment


(15,663)



(29,471)



(47)

%


(27,616)



(40,729)



(32)

%

Change in accounts payable related to intangible assets, property, plant and equipment


2,535



10,939



(77)

%


708



10,460



(93)

%

Payment for businesses, net of cash acquired


(9,598)





NM



(9,598)





NM


Change in other non-current financial assets


(17,056)



(21,238)



(20)

%


(20,308)



(20,349)



(0.2)

%

CASH USED FOR INVESTING ACTIVITIES


(39,782)



(39,770)



%


(56,814)



(50,618)



12

%

Proceeds from borrowings under line-of-credit agreement




154,310



NM





154,310



NM


Repayment of borrowings


(1,090)



1



NM



(1,272)



(169)



NM


Proceeds from exercise of stock options


7,501



(20)



NM



9,575



(16)



NM


Repurchase of treasury stocks


(29,999)



(14,860)



NM



(34,929)



(33,101)



6

%

Change in other financial liabilities


(370)



(573)



(35)

%


(748)



(927)



(19)

%

CASH (USED FOR) FROM FINANCING ACTIVITIES


(23,958)



138,858



NM



(27,374)



120,097



NM


Effect of exchange rates changes on cash and cash equivalents


6,841



9,210



(26)

%


(18,024)



(181)



NM


Net increase (decrease) in cash and cash equivalents


(30,539)



141,675



NM



1,510



159,418



(99)

%

Net cash and cash equivalents at beginning of period


520,060



436,506



19

%


488,011



418,763



17

%

Net cash and cash equivalents at end of period


$

489,521



$

578,181



(15)

%


$

489,521



$

578,181



(15)

%














SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION













Cash paid for taxes, net of refunds


$

(5,150)



$

(4,519)



14

%


$

(13,582)



$

(16,566)



(18)

%

Cash paid for interest


$

(369)



$

(317)



16

%


$

(736)



$

(666)



11

%


(1) Share-based compensation expense according to ASC 718 Compensation - stock compensation accounted for $11.2 million and $6.8 million of equity awards compensation expense for the quarter ended June  30, 2021 and 2020, respectively, and $18.0 million and $14.9 million of equity awards compensation for the six months ended June, 30, 2021 and 2020, respectively.


 

 

CRITEO S.A.

Reconciliation of Cash from Operating Activities to Free Cash Flow

(U.S. dollars in thousands, unaudited)




Three Months Ended




Six Months Ended





June 30,




June 30,





2021


2020


YoY

Change


2021


2020


YoY

Change














CASH FROM OPERATING ACTIVITIES


$

26,360



$

33,377



(21)

%


$

103,722



$

90,120



15

%

Acquisition of intangible assets, property, plant and equipment


(15,663)



(29,471)



(47)

%


(27,616)



(40,729)



(32)

%

Change in accounts payable related to intangible assets, property, plant and equipment


2,535



10,939



(77)

%


708



10,460



(93)

%

FREE CASH FLOW (1)


$

13,232



$

14,845



(11)

%


$

76,814



$

59,851



28

%


(1) Free Cash Flow is defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment.

 

 

CRITEO S.A.

Reconciliation of Revenue ex-TAC to Revenue

(U.S. dollars in thousands, unaudited)





Three Months Ended






Six Months Ended








June 30,






June 30,






Region


2021


2020


YoY Change


YoY Change at Constant Currency


2021


2020


YoY Change


YoY Change at Constant Currency

Revenue


















Americas


$

221,227



$

185,674



19

%


19

%


$

425,127



$

377,419



13

%


13

%


EMEA


209,303



159,621



31

%


21

%


421,399



349,735



20

%


12

%


Asia-Pacific


120,781



92,319



31

%


29

%


245,862



213,836



15

%


12

%


Total


551,311



437,614



26

%


22

%


1,092,388



940,990



16

%


12

%



















Traffic acquisition costs (1)


















Americas


(134,332)



(115,317)



16

%


16

%


(261,960)



(235,339)



11

%


12

%


EMEA


(124,747)



(90,153)



38

%


27

%


(251,395)



(198,550)



27

%


17

%


Asia-Pacific


(71,999)



(52,228)



38

%


36

%


(145,390)



(121,173)



20

%


17

%


Total


(331,078)



(257,698)



28

%


24

%


(658,745)



(555,062)



19

%


15

%



















Revenue ex-TAC (1)


















Americas


86,895



70,357



24

%


23

%


163,167



142,080



15

%


15

%


EMEA


84,556



69,468



22

%


12

%


170,004



151,185



12

%


4

%


Asia-Pacific


48,782



40,091



22

%


20

%


100,472



92,663



8

%


6

%


Total


$

220,233



$

179,916



22

%


18

%


$

433,643



$

385,928



12

%


9

%





Three Months Ended






Six Months Ended








June 30,






June 30,






Solution


2021


2020


YoY Change


YoY Change at Constant Currency


2021


2020


YoY Change


YoY Change at Constant Currency

Revenue


















Marketing Solutions


$

487,465



$

381,270



28

%


23

%


$

970,655



$

851,043



14

%


10

%


Retail Media (2)


63,846



56,344



13

%


10

%


121,733



89,947



35

%


32

%


Total


551,311



437,614



26

%


22

%


1,092,388



940,990



16

%


12

%



















Traffic acquisition costs (1)


















Marketing Solutions


(294,132)



(218,990)



34

%


30

%


(585,005)



(492,047)



19

%


15

%


Retail Media (2)


(36,946)



(38,708)



(5)

%


(7)

%


(73,740)



(63,015)



17

%


14

%


Total


(331,078)



(257,698)



28

%


24

%


(658,745)



(555,062)



19

%


15

%



















Revenue ex-TAC (1)


















Marketing Solutions


193,333



162,280



19

%


15

%


385,650



358,996



7

%


4

%


Retail Media (2)


26,900



17,636



53

%


49

%


47,993



26,932



78

%


74

%


Total


$

220,233



$

179,916



22

%


18

%


$

433,643



$

385,928



12

%


9

%


(1) We define Revenue ex-TAC as our revenue excluding traffic acquisition costs generated over the applicable measurement period. Revenue ex-TAC, Traffic Acquisition Costs, Revenue ex-TAC by Region and Revenue ex-TAC by Solution are not measures calculated in accordance with U.S. GAAP. We have included Revenue ex-TAC, Traffic Acquisition Costs,  Revenue ex-TAC by Region and Revenue ex-TAC by Solution because they are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue and review of these measures by region and solution can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Revenue ex-TAC, Traffic Acquisition Costs, Revenue ex-TAC by Region, and Revenue ex-TAC by Solution provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Our use of Revenue ex-TAC, Traffic Acquisition Costs, Revenue ex-TAC by Region and Revenue ex-TAC by Solution has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; (b) other companies may report Revenue, Traffic Acquisition Costs,  Revenue ex-TAC by Region and Revenue ex-TAC by Solution, or similarly titled measures but define the regions, and product families differently, which reduces their effectiveness as a comparative measure; and (c) other companies may report Revenue ex-TAC or similarly titled measures but calculate them differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Revenue ex-TAC and Revenue, Traffic Acquisition Costs,  Revenue ex-TAC by Region and Revenue ex-TAC by Solution alongside our other U.S. GAAP financial results, including revenue. The above tables provide a reconciliation of Revenue ex-TAC to revenue, Revenue ex-TAC by Region to revenue by region and Revenue ex-TAC by Solution to revenue by solution.


(2) Criteo operates as one operating segment. From January 1, 2021 we have disaggregated revenues between Marketing Solutions and Retail Media.  A strategic building block of Criteo's Commerce Media Platform, the Retail Media Platform, introduced in June 2020, is a self-service solution providing transparency, measurement and control to brands and retailers. In all arrangements running on this platform, Criteo recognizes revenue on a net basis, whereas revenue from arrangements running on legacy Retail Media solutions are accounted for on a gross basis. Over time, we expect most clients using Criteo's legacy Retail Media solutions to transition to this platform. As new clients onboard and existing clients transition to the Retail Media Platform, Revenue may decline but Revenue ex-TAC margin will increase. Revenue ex-TAC will not be impacted by this transition.

 

 

CRITEO S.A.

Reconciliation of Adjusted EBITDA to Net Income

(U.S. dollars in thousands, unaudited)




Three Months Ended




Six Months Ended





June 30,




June 30,





2021


2020


YoY

Change


2021


2020


YoY

Change

Net income


$

15,029



$

6,150



144

%


$

38,479



$

22,578



70

%

Adjustments:













Financial expense


519



1,003



(48)

%


1,237



1,337



(7)

%

Provision for income taxes


4,181



2,636



59

%


14,232



9,676



47

%

Equity awards compensation expense


11,669



7,159



63

%


19,551



15,662



25

%

Research and development


4,218



2,068



NM



6,714



4,438



51

%

Sales and operations


3,636



1,572



NM



6,005



5,190



16

%

General and administrative


3,815



3,519



8

%


6,832



6,034



13

%

Pension service costs


337



539



(37)

%


675



1,077



(37)

%

Research and development


175



269



(35)

%


350



538



(35)

%

Sales and operations


53



95



(44)

%


106



190



(44)

%

General and administrative


109



175



(38)

%


219



349



(37)

%

Depreciation and amortization expense


22,491



20,208



11

%


44,345



44,346



%

Cost of revenue


15,744



13,098



20

%


30,988



25,869



20

%

Research and development (1)


2,207



1,658



33

%


3,960



7,308



(46)

%

Sales and operations


3,702



4,221



(12)

%


7,656



8,561



(11)

%

General and administrative


838



1,231



(32)

%


1,741



2,608



(33)

%

Acquisition-related costs


3,047





NM



3,047





NM


General and administrative


3,047





NM



3,047





NM


Restructuring related and transformation costs (2)


9,996



1,216



NM



21,632



3,425



NM


Research and development


4,831



513



NM



6,267



1,508



NM


Sales and operations


1,551



415



NM



8,918



1,436



NM


General and administrative


3,614



288



NM



6,447



481



NM


Total net adjustments


52,240



32,761



59

%


104,719



75,523



39

%

Adjusted EBITDA (3)


$

67,269



$

38,911



73

%


$

143,198



$

98,101



46

%


(1) For the Six Months Ended June 30, 2020, the Company recognized an accelerated amortization expense for Manage technology due to a revised useful life in 2020 ($4.0 million in Research and development).


(2) For the Three Months and the Six Months Ended June 2021, and June 2020, respectively, the Company recognized restructuring related and transformation costs following its new organizational structure implemented to support its Commerce Media Platform strategy:

 

 


Three Months Ended


Six Months Ended


June 30,


June 30,


2021


2020


2021


2020

(Gain) from forfeitures of share-based compensation awards





(666)




Facilities related costs

9,721



807



16,337



1,794


Payroll related costs

(181)



409



4,971



1,631


Consulting costs related to transformation

456





990




Total restructuring related and transformation costs

$

9,996



$

1,216



$

21,632



$

3,425



For the three months ended June 30, 2021 and June 30, 2020, respectively, the cash outflows related to restructuring related and transformation costs were $10.3 million, and $2.1 million respectively, and were mainly comprised of payroll costs, broker and termination penalties related to real-estate facilities and other consulting fees.


(3) We define Adjusted EBITDA as our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, acquisition-related costs and restructuring related and transformation costs. Adjusted EBITDA is not a measure calculated in accordance with U.S. GAAP. We have included Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short-term and long-term operational plans. In particular, we believe that the elimination of equity awards compensation expense, pension service costs, and restructuring related and transformation costs in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (b) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (c) Adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (d) Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and (e) other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Adjusted EBITDA alongside our U.S. GAAP financial results, including net income.

 

 

CRITEO S.A.

Reconciliation from Non-GAAP Operating Expenses to Operating Expenses under GAAP

(U.S. dollars in thousands, unaudited)




Three Months Ended




Six Months Ended





June 30,




June 30,





2021


2020


YoY Change


2021


2020


YoY Change

Research and Development expenses


$

(41,915)



$

(31,247)



34

%


$

(73,612)



$

(68,762)



7

%

Equity awards compensation expense


4,218



2,068



NM



6,714



4,438



51

%

Depreciation and Amortization expense


2,207



1,658



33

%


3,960



7,308



(46)

%

Pension service costs


175



269



(35)

%


350



538



(35)

%

Restructuring related and transformation costs


4,831



513



NM



6,267



1,508



NM


Non GAAP - Research and Development expenses


(30,484)



(26,739)



14

%


(56,321)



(54,970)



2

%

Sales and Operations expenses


(80,751)



(75,781)



7

%


(160,105)



(160,755)



(0.4)

%

Equity awards compensation expense


3,636



1,572



NM



6,005



5,190



16

%

Depreciation and Amortization expense


3,702



4,221



(12)

%


7,656



8,561



(11)

%

Pension service costs


53



95



(44)

%


106



190



(44)

%

Restructuring related and transformation costs


1,551



415



NM



8,918



1,436



NM


Non GAAP - Sales and Operations expenses


(71,809)



(69,478)



3

%


(137,420)



(145,378)



(5)

%

General and Administrative expenses


(40,474)



(29,185)



39

%


(73,902)



(55,100)



34

%

Equity awards compensation expense


3,815



3,519



8

%


6,832



6,034



13

%

Depreciation and Amortization expense


838



1,231



(32)

%


1,741



2,608



(33)

%

Pension service costs


109



175



(38)

%


219



349



(37)

%

Acquisition-related costs


3,047





NM



3,047





NM


Restructuring related and transformation costs


3,614



288



NM



6,447



481



NM


Non GAAP - General and Administrative expenses


(29,051)



(23,972)



21

%


(55,616)



(45,628)



22

%

Total Operating expenses


(163,140)



(136,213)



20

%


(307,619)



(284,617)



8

%

Equity awards compensation expense


11,669



7,159



63

%


19,551



15,662



25

%

Depreciation and Amortization expense


6,747



7,110



(5)

%


13,357



18,477



(28)

%

Pension service costs


337



539



(37)

%


675



1,077



(37)

%

Acquisition-related costs


3,047





NM



3,047





NM


Restructuring related and transformation costs


9,996



1,216



NM



21,632



3,425



NM


Total Non GAAP Operating expenses (1)


$

(131,344)



$

(120,189)



9

%


$

(249,357)



$

(245,976)



1

%


(1) We define Non-GAAP Operating Expenses as our consolidated operating expenses adjusted to eliminate the impact of depreciation and amortization, equity awards compensation expense, pension service costs, acquisition-related costs and restructuring related and transformation costs. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures we use to provide our quarterly and annual business outlook to the investment community.

 

 

CRITEO S.A.

 Detailed Information on Selected Items

(U.S. dollars in thousands, unaudited)




Three Months Ended




Six Months Ended





June 30,




June 30,





2021


2020


YoY Change


2021


2020


YoY Change

Equity awards compensation expense













Research and development


$

4,218



$

2,068



NM



$

6,714



$

4,438



51

%

Sales and operations


3,636



1,572



NM



6,005



5,190



16

%

General and administrative


3,815



3,519



8

%


6,832



6,034



13

%

Total equity awards compensation expense


11,669



7,159



63

%


19,551



15,662



25

%














Pension service costs













Research and development


175



269



(35)

%


350



538



(35)

%

Sales and operations


53



95



(44)

%


106



190



(44)

%

General and administrative


109



175



(38)

%


219



349



(37)

%

Total pension service costs


337



539



(37)

%


675



1,077



(37)

%














Depreciation and amortization expense













Cost of revenue


15,744



13,098



20

%


30,988



25,869



20

%

Research and development


2,207



1,658



33

%


3,960



7,308



(46)

%

Sales and operations


3,702



4,221



(12)

%


7,656



8,561



(11)

%

General and administrative


838



1,231



(32)

%


1,741



2,608



(33)

%

Total depreciation and amortization expense


22,491



20,208



11

%


44,345



44,346



%














Acquisition-related costs













General and administrative


3,047





NM



3,047





NM


Total acquisition-related costs


3,047





NM



3,047





NM















Restructuring related and transformation costs                     













Research and development


4,831



513



NM



6,267



1,508



NM


Sales and operations


1,551



415



NM



8,918



1,436



NM


General and administrative


3,614



288



NM



6,447



481



NM


Total restructuring related and transformation costs


$

9,996



$

1,216



NM



$

21,632



$

3,425



NM


 

 

CRITEO S.A.

Reconciliation of Adjusted Net Income to Net Income

(U.S. dollars in thousands except share and per share data, unaudited)




Three Months Ended




Six Months Ended





June 30,




June 30,





2021


2020


YoY Change


2021


2020


YoY Change














Net income


$

15,029



$

6,150



144

%


$

38,479



$

22,578



70

%

Adjustments:













Equity awards compensation expense


11,669



7,159



63

%


19,551



15,662



25

%

Amortization of acquisition-related intangible assets (1)


2,936



2,847



3

%


5,871



9,695



(39)

%

Acquisition-related costs


3,047





NM



3,047





NM


Restructuring related and transformation costs


9,996



1,216



NM



21,632



3,425



NM


Tax impact of the above adjustments


(1,821)



(665)



NM



(4,572)



(2,625)



74

%

Total net adjustments


25,827



10,557



NM



45,529



26,157



74

%

Adjusted net income (2)


$

40,856



$

16,707



145

%


$

84,008



$

48,735



72

%














Weighted average shares outstanding













 - Basic


60,663,301



61,415,467





60,702,780



61,553,875




 - Diluted


64,665,212



61,790,135





64,371,603



61,958,499

















Adjusted net income per share













 - Basic


$

0.67



$

0.27



148

%


$

1.38



$

0.79



75

%

 - Diluted


$

0.63



$

0.27



133

%


$

1.31



$

0.79



66

%


(1) For the Six Months Ended June 30, 2020, the Company recognized an accelerated amortization expense for Manage technology due to a revised useful life in 2019 ($4.0 million in Research and development).


(2) We define Adjusted Net Income as our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs, restructuring related and transformation costs, and the tax impact of the foregoing adjustments. Adjusted Net Income is not a measure calculated in accordance with U.S. GAAP. We have included Adjusted Net Income because it is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring related and transformation costs and the tax impact of the foregoing adjustments in calculating Adjusted Net Income can provide a useful measure for period-to-period comparisons of our business. Accordingly, we believe that Adjusted Net Income provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Our use of Adjusted Net Income has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) Adjusted Net Income does not reflect the potentially dilutive impact of equity-based compensation or the impact of certain acquisition-related costs; and (b) other companies, including companies in our industry, may calculate Adjusted Net Income or similarly titled measures differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Adjusted Net Income alongside our other U.S. GAAP-based financial results, including net income.

 

 

CRITEO S.A.

Constant Currency Reconciliation

(U.S. dollars in thousands, unaudited)




Three Months Ended




Six Months Ended





June 30,




June 30,





2021


2020


YoY

Change


2021


2020


YoY

Change














Revenue as reported


$551,311


$437,614


26

%


$1,092,388


$940,990


16

%

Conversion impact U.S. dollar/other currencies


(18,569)






(35,316)





Revenue at constant currency(1)


532,742


437,614


22

%


1,057,072


940,990


12

%














Traffic acquisition costs as reported


(331,078)


(257,698)


28

%


(658,745)


(555,062)


19

%

Conversion impact U.S. dollar/other currencies


11,283






21,600





Traffic Acquisition Costs at constant currency(1)


(319,795)


(257,698)


24

%


(637,145)


(555,062)


15

%














Revenue ex-TAC as reported(2)


220,233


179,916


22

%


433,643


385,928


12

%

Conversion impact U.S. dollar/other currencies


(7,285)






(13,715)





Revenue ex-TAC at constant currency(2)


212,948


179,916


18

%


419,928


385,928


9

%

Revenue ex-TAC(2)/Revenue as reported


40%


41%




40%


41%
















Other cost of revenue as reported


(37,364)


(33,914)


10

%


(72,076)


(67,720)


6

%

Conversion impact U.S. dollar/other currencies


559






881





Other cost of revenue at constant currency(1)


(36,805)


(33,914)


9

%


(71,195)


(67,720)


5

%














Adjusted EBITDA(3)


67,269


38,911


73

%


143,198


98,101


46

%

Conversion impact U.S. dollar/other currencies


(4,433)






(9,024)





Adjusted EBITDA(3) at constant currency(1)


$62,836


$38,911


61

%


$134,174


$98,101


37

%

Adjusted EBITDA(3)/Revenue ex-TAC(2)


31%


22%




33%


25%




(1) Information herein with respect to results presented on a constant currency basis is computed by applying prior period average exchange rates to current period results. We have included results on a constant currency basis because it is a key measure used by our management and board of directors to evaluate operating performance. Management reviews and analyzes business results excluding the effect of foreign currency translation because they believe this better represents our underlying business trends. The table above reconciles the actual results presented in this section with the results presented on a constant currency basis.


(2) Revenue ex-TAC is not a measure calculated in accordance with U.S. GAAP. See the table entitled "Reconciliation of Revenue ex-TAC to Revenue" for a reconciliation of Revenue Ex-TAC to revenue.


(3) Adjusted EBITDA is not a measure calculated in accordance with U.S. GAAP. See the table entitled "Reconciliation of Adjusted EBITDA to Net Income" for a reconciliation of Adjusted EBITDA to net income.

 

 

CRITEO S.A.

Information on Share Count

(unaudited)




Six Months Ended



2021


2020

Shares outstanding as at January 1,


60,639,570



62,293,508


Weighted average number of shares issued during the period


63,210



(739,633)


Basic number of shares - Basic EPS basis


60,702,780



61,553,875


Dilutive effect of share options, warrants, employee warrants - Treasury method


3,668,823



404,624


Diluted number of shares - Diluted EPS basis


64,371,603



61,958,499







Shares issued as June 30, before Treasury stocks


66,697,360



66,204,881


Treasury stock as of June 30,


(6,080,008)



(5,589,408)


Shares outstanding as of June 30, after Treasury stocks


60,617,352



60,615,473


Total dilutive effect of share options, warrants, employee warrants


8,438,680



8,341,925


Fully diluted shares as at June 30,


69,056,032



68,957,398


 

 

CRITEO S.A.

Supplemental Financial Information and Operating Metrics

(U.S. dollars in thousands except where stated, unaudited)





YoY

Change

QoQ
Change

Q2

2021

Q1

2021

Q4

2020

Q3

2020

Q2

2020

Q1

2020

Q4

2019

Q3

2019

Q2

2019















Clients

5%

3%

21,332

20,626

21,460

20,565

20,359

20,360

20,247

19,971

19,733















Revenue 

26%

2%

551,311

541,077

661,282

470,345

437,614

503,376

652,640

522,606

528,147


Americas

19%

8%

221,227

203,900

312,817

204,618

185,674

191,745

306,250

213,937

213,974


EMEA

31%

(1)%

209,303

212,096

232,137

167,800

159,621

190,114

216,639

185,556

194,359


APAC

31%

(3)%

120,781

125,081

116,328

97,927

92,319

121,517

129,751

123,113

119,814















Revenue

26%

2%

551,311

541,077

661,282

470,345

437,614

503,376

N.A

N.A

N.A


Marketing Solutions

28%

1%

487,465

483,190

543,262

412,126

381,270

469,773

N.A

N.A

N.A


Retail Media

13%

10%

63,846

57,887

118,020

58,219

56,344

33,603

N.A

N.A

N.A















TAC

28%

1%

(331,078)

(327,667)

(408,108)

(284,401)

(257,698)

(297,364)

(386,388)

(301,901)

(304,229)


Americas

16%

5%

(134,332)

(127,628)

(203,341)

(130,756)

(115,317)

(120,022)

(189,092)

(129,047)

(129,491)


EMEA

38%

(2)%

(124,747)

(126,648)

(137,384)

(97,272)

(90,153)

(108,397)

(124,939)

(103,899)

(107,401)


APAC

38%

(2)%

(71,999)

(73,391)

(67,383)

(56,373)

(52,228)

(68,945)

(72,357)

(68,955)

(67,337)















TAC

28%

1%

(331,078)

(327,667)

(408,108)

(284,401)

(257,698)

(297,364)

N.A

N.A

N.A


Marketing Solutions

34%

1%

(294,132)

(290,873)

(324,017)

(243,616)

(218,990)

(273,057)

N.A

N.A

N.A


Retail Media

(5)%

—%

(36,946)

(36,794)

(84,091)

(40,785)

(38,708)

(24,307)

N.A

N.A

N.A















Revenue ex-TAC (1)

22%

3%

220,233

213,410

253,174

185,944

179,916

206,012

266,252

220,705

223,918


Americas

24%

14%

86,895

76,272

109,476

73,862

70,357

71,723

117,158

84,890

84,483


EMEA

22%

(1)%

84,556

85,448

94,753

70,528

69,468

81,717

91,700

81,657

86,958


APAC

22%

(6)%

48,782

51,690

48,945

41,554

40,091

52,572

57,394

54,158

52,477















Revenue ex-TAC (1)

22%

3%

220,233

213,410

253,174

185,944

179,916

206,012

N.A

N.A

N.A


Marketing Solutions

19%

1%

193,333

192,317

219,245

168,510

162,280

196,716

N.A

N.A

N.A


Retail Media

53%

28%

26,900

21,093

33,929

17,434

17,636

9,296

N.A

N.A

N.A















Cash flow from operating activities 

(21)%

(66)%

26,360

77,362

44,080

51,156

33,377

56,743

59,359

43,289

52,964















Capital expenditures

(29)%

(5)%

13,128

13,780

22,302

12,898

18,532

11,737

17,520

23,944

32,792















Capital expenditures/Revenue

N.A

N.A

2%

3%

3%

3%

4%

2%

3%

5%

6%















Net cash position

(15)%

(6)%

489,521

520,060

488,011

626,744

578,181

436,506

418,763

409,178

422,053















Headcount

(4)%

2%

2,572

2,532

2,594

2,636

2,685

2,701

2,755

2,794

2,873















Days Sales Outstanding (days - end of month)

N.A

N.A

66

64

56

62

61

62

52

57

58




(1) We define Revenue ex-TAC as our revenue excluding traffic acquisition costs generated over the applicable measurement period. Revenue ex-TAC, Traffic Acquisition Costs, Revenue ex-TAC by Region and Revenue ex-TAC by Solution are not measures calculated in accordance with U.S. GAAP. We have included Revenue ex-TAC, Traffic Acquisition Costs,  Revenue ex-TAC by Region and Revenue ex-TAC by Solution because they are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue and review of these measures by region and solution can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Revenue ex-TAC, Traffic Acquisition Costs, Revenue ex-TAC by Region, and Revenue ex-TAC by Solution provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Our use of Revenue ex-TAC, Traffic Acquisition Costs, Revenue ex-TAC by Region and Revenue ex-TAC by Solution has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; (b) other companies may report Revenue, Traffic Acquisition Costs,  Revenue ex-TAC by Region and Revenue ex-TAC by Solution, or similarly titled measures but define the regions, and product families differently, which reduces their effectiveness as a comparative measure; and (c) other companies may report Revenue ex-TAC or similarly titled measures but calculate them differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Revenue ex-TAC and Revenue, Traffic Acquisition Costs,  Revenue ex-TAC by Region and Revenue ex-TAC by Solution alongside our other U.S. GAAP financial results, including revenue. The above tables provide a reconciliation of Revenue ex-TAC to revenue, Revenue ex-TAC by Region to revenue by region and Revenue ex-TAC by Solution to revenue by solution.



 

 

Cision View original content:https://www.prnewswire.com/news-releases/criteo-reports-strong-financial-results-in-second-quarter-2021-301347458.html

SOURCE Criteo S.A.

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