Criteo (CRTO) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with strong Retail Media growth, robust operating leverage, and disciplined cost management, despite a slight revenue decline year-over-year.

• Retail Media Contribution ex-TAC grew 23% year-over-year at constant currency, with platform adoption expanding to 3,100 brands and 225 retailers, outpacing market growth.

• Performance Media Contribution ex-TAC increased 5% year-over-year, supported by Commerce Audiences up 30% and resilient Retargeting.

• CEO transition underway, with a new leader to inherit a transformed, growth-oriented company.

• Announced plans to return a record $180 million of capital to shareholders in 2024.

Financial highlights

• Q3 2024 revenue was $459 million, down 2% year-over-year; Contribution ex-TAC was $266 million, up 9% year-over-year at constant currency.

• Adjusted EBITDA was $82 million, up 20% year-over-year, with a margin of 31% on Contribution ex-TAC.

• Net income for Q3 was $6 million; diluted EPS $0.11, adjusted diluted EPS $0.96, up 35% year-over-year.

• Free cash flow for Q3 was $39 million; total liquidity stood at $711 million with no long-term debt.

• Gross profit rose 13% to $232 million, with gross margin improving to 51% from 44% in Q3 2023.

Outlook and guidance

• Fiscal year 2024 Contribution ex-TAC expected to grow 10–11% at constant currency, with Retail Media at the high end of 20–22% growth and Performance Media in the mid- to high-single digits.

• Adjusted EBITDA margin guidance raised to 32–33% for 2024.

• Q4 2024 Contribution ex-TAC expected at $327–$333 million, up 3–5% year-over-year; Adjusted EBITDA $114–$120 million.

• Free cash flow conversion rate expected at ~45% of Adjusted EBITDA for 2024.

• Management expects continued revenue fluctuations due to seasonality and macroeconomic uncertainty.