Criteo (CRTO) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results with double-digit organic growth, revenue of $471M (up 1% year-over-year), and net income of $28M, driven by strong Retail Media performance and margin expansion.

• Retail Media footprint expanded to 225 retailers and 2,900+ brands, with 23%-24% year-over-year growth and new client integrations across all regions.

• Strategic partnership with Microsoft announced, integrating advertising demand and supply, with implementation starting in 2025.

• AI-driven platform enhancements and generative AI integration contributed to growth and operational efficiency.

• Continued strong client retention, multi-year contracts, and deep technical integration driving business stickiness.

Financial highlights

• Q2 2024 revenue was $471M; Contribution ex-TAC reached $267M, up 11%-14% year-over-year at constant currency.

• Adjusted EBITDA was $93M, up 67% year-over-year, with margin expansion driven by top-line growth and cost management.

• Net income was $28M; diluted EPS was $0.46, and adjusted diluted EPS was $1.08, up 104% year-over-year.

• Free cash flow for the trailing 12 months was $142M; Q2 free cash flow was negative $4M due to seasonality.

• Total liquidity at quarter-end was ~$675M, with no long-term debt.

Outlook and guidance

• Raised 2024 guidance: Contribution ex-TAC expected to grow 10%-12% year-over-year at constant currency.

• Retail Media Contribution ex-TAC growth expected at 20%-22% for 2024; Performance Media guidance raised to high single-digit growth.

• Adjusted EBITDA margin guidance increased to ~32% for 2024.

• Q3 2024 Contribution ex-TAC expected at $264M-$268M, up 8%-10% year-over-year at constant currency.

• Free cash flow conversion rate expected at approximately 45% of adjusted EBITDA for 2024.