CRITEO REPORTS RECORD FIRST QUARTER 2025 RESULTS

By PR Newswire | May 02, 2025, 7:00 AM

Deployed $56 Million to Repurchase Shares in Q1 2025

NEW YORK, May 2, 2025 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO) ("Criteo" or the "Company"), the commerce media company, today announced financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights:

The following table summarizes our consolidated financial results for the three months ended March 31, 2025:



Three Months Ended



March 31,



2025



2024



YoY Change



(in millions, except EPS data)

GAAP Results











Revenue

$451



$450



0.3 %

Gross Profit

$237



$217



9 %

Net Income (loss)

$40



$9



367 %

Gross Profit margin

52 %



48 %



4 ppt

Diluted EPS

$0.66



$0.12



450 %

Cash from operating activities          

$62



$14



345 %

Cash and cash equivalents

$286



$267



7 %













Non-GAAP Results1











Contribution ex-TAC

$264



$254



4 %

Adjusted EBITDA

$92



$71



30 %

Adjusted diluted EPS

$1.10



$0.80



38 %

Free Cash Flow (FCF)

$45



$1



NM

FCF / Adjusted EBITDA

49 %



1 %



48 ppt

"Our results this quarter demonstrate strong execution and a solid foundation to build on," said Michael Komasinski, Chief Executive Officer of Criteo. "Criteo sits at the center of commerce and media, a powerful combination. I'm excited about our opportunities ahead and confident in our ability to deliver long-term value for our shareholders."

Operating Highlights

  • Retail Media Contribution ex-TAC grew 18% year-over-year at constant currency2 and same-retailer Contribution ex-TAC3 retention for Retail Media was 120%.
  • We expanded our platform adoption to 3,800 brands and added new retailers and marketplaces, including Dick's Sporting Goods in the U.S., Endeavour in Australia, d shopping in Japan, Cooperative U in France, and Elkjop in the Nordics.
  • We launched our Onsite Video solution for Retail Media into general availability and now offer a comprehensive, full-funnel onsite advertising suite.
  • Performance Media Contribution ex-TAC was up 4% year-over-year at constant currency2.
  • Criteo's media spend4 was $4.3 billion in the last 12 months and $919 million in Q1 2025, flat year-over-year at constant currency2.
  • We deployed $56 million of capital for share repurchases in Q1 2025.
  • The Company named Frederik van der Kooi as the Chairperson of the Board of Directors and nominated Stefanie Jay for election to the Board of directors at the 2025 Annual Meeting of Shareholders.

___________________________________________________

1 Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted diluted EPS and Free Cash Flow 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 prior year monthly exchange rates to transactions denominated in settlement or billing currencies other than the US dollar.

3 Same-retailer Contribution ex-TAC retention is the Contribution ex-TAC generated by clients that were live with us in a given quarter and are still live with us the same quarter in the following year.

4 Media spend is defined as the media spend activated on behalf of our Retail Media clients and our Performance Media clients.

Financial Summary

Revenue for Q1 2025 was $451 million, gross profit was $237 million and Contribution ex-TAC was $264 million. Net income for Q1 2025 was $40 million, an increase compared to $9 million in Q1 2024. This represents $0.66 per share on a diluted basis. Adjusted EBITDA for Q1 was $92 million, resulting in an adjusted diluted EPS of  $1.10 . As reported, revenue for Q1 increased 0.3%, gross profit increased 9% and Contribution ex-TAC increased 4%. At constant currency, revenue for Q1 increased 3% and Contribution ex-TAC increased 7%. Cash flow from operating activities was $62 million in Q1 and Free Cash Flow was $45 million in Q1 2025, an increase compared to $1 million in Q1 2024. As of March 31, 2025, we had $329 million in cash and marketable securities on our balance sheet.

Sarah Glickman, Chief Financial Officer, said, "Our first quarter results reflect our broad capabilities to drive performance across the buyer journey, and the strength of our diversified global client base. In an uncertain macro-economic environment, our resilient business model and strong financial foundation position us well to drive results for our clients and protect margins and cash flow."

First Quarter 2025 Results

Revenue, Gross Profit and Contribution ex-TAC

Revenue increased 0.3% year-over-year in Q1 2025, or 3% at constant currency, to $451 million (Q1 2024: $450 million). Gross profit increased 9% year-over-year in Q1 2025 to $237 million (Q1 2024: $217 million). Gross profit as a percentage of revenue, or gross profit margin, was 52% (Q1 2024: 48%). Contribution ex-TAC in the first quarter increased 4% year-over-year, or increased 7% at constant currency, to $264 million (Q1 2024: $254 million).

  • Retail Media revenue increased 17%, or 18% at constant currency, reflecting continued strength in Retail Media onsite. Retail Media Contribution ex-TAC increased 17%, or 18% at constant currency, driven by continued strength in Retail Media onsite, new client integrations and growing network effects of the platform.
  • Performance Media revenue decreased (2)%, or increased 1% at constant currency, and Performance Media Contribution ex-TAC increased 1%, or 4% at constant currency, driven by the continued traction of our suite of commerce solutions helping advertisers drive measurable performance across the entire buyer journey, partially offset by lower AdTech services.

Net Income and Adjusted Net Income

Net income was $40 million in Q1 2025 (Q1 2024: net income of $9 million). Net income allocated to shareholders of Criteo was $38 million, or $0.66 per share on a diluted basis (Q1 2024: net income available to shareholders of $7 million, or $0.12 per share on a diluted basis).

Adjusted net income, a non-GAAP financial measure, was $63 million, or  $1.10  per share on a diluted basis (Q1 2024: $47 million, or $0.80 per share on a diluted basis).

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA was $92 million, representing an increase of 30% year-over-year (Q1 2024: $71 million). This primarily reflects higher Contribution ex-TAC over the period and effective cost management. Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 35% (Q1 2024: 28%).

Operating expenses decreased (9)% year-over-year to $189 million (Q1 2024: $207 million), mostly driven by continued rigor on resource allocation and lower equity award compensation expense, partially offset by planned growth investments. Non-GAAP operating expenses decreased (3)% year-over-year to $151 million (Q1 2024: $155 million).

Cash Flow, Cash and Financial Liquidity Position

Cash flow from operating activities increased to $62 million in Q1 2025 (Q1 2024: $14 million).

Free Cash Flow, defined as cash flow from operating activities less acquisition of intangible assets, property and equipment and change in accounts payable related to intangible assets, property and equipment, increased to $45 million in Q1 2025 (Q1 2024: $1 million). On a trailing 12-month basis, Free Cash Flow was $226 million.

Cash and cash equivalents, and marketable securities, were $329 million, a $(3) million decrease compared to December 31, 2024, after spending $56 million on share repurchases in the three months ended March 31, 2025.

As of March 31, 2025, the Company had total financial liquidity of approximately $810 million, including its cash position, marketable securities, revolving credit facility and treasury shares reserved for M&A.

Update on Chrome Third-Party Cookie Policy

On April 23, 2025, Google announced that it will maintain its current approach for offering users control over third-party cookies in the Chrome browser. This decision follows a 2024 proposal to implement a new framework and standalone prompt for collecting user consent regarding third-party cookie usage across web browsing activity. Google confirmed it will not proceed with the proposed standalone consent prompt and instead will continue with its existing mechanisms for user choice.

We appreciate our partnership with Google and the wider ecosystem, and welcome Google's decision to provide greater clarity around their plans for third-party cookies. We have future-proofed our approach to privacy protecting addressability which uses advanced AI to consolidate and then optimize diverse signals, including alternative IDs, first-party data, contextual inputs and browser-based tools like the Privacy Sandbox. This enables us to execute tailored, full-funnel, cross-channel campaigns that drive measurable outcomes for our clients in any scenario.

Commercial Update

On April 30, 2025, our largest Retail Media client notified us that they will curtail the scope of services to be provided commencing November 1, 2025, which will reduce the expected revenue from that date onwards. They will continue to use our industry-leading Retail Media technology platform under a multi-year committed contract while discontinuing our managed services and curtailing the remaining brand demand sales services.

2025 Business Outlook

The following forward-looking statements reflect Criteo's expectations as of May 2, 2025, amidst an uncertain macro-economic backdrop.

Fiscal year 2025 guidance:

  • Low-single-digit growth in Contribution ex-TAC at constant currency.
  • Adjusted EBITDA margin of approximately 33% to 34% of Contribution ex-TAC.

Second quarter 2025 guidance:

  • Contribution ex-TAC between $272 million and $278 million, or -2% to flat year-over-year at constant-currency at the midpoint.
  • Adjusted EBITDA between $60 million and $66 million.

The above guidance for the second quarter and fiscal year ending December 31, 2025 assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.909, a U.S. dollar-Japanese Yen rate of 150, a U.S. dollar-British Pound rate of 0.787, a U.S. dollar-Korean Won rate of 1,426 and a U.S. dollar-Brazilian Real rate of 5.83.

The above guidance assumes that no additional acquisitions are completed during the second quarter of 2025.

Reconciliations of Contribution ex-TAC, Adjusted EBITDA and Adjusted EBITDA margin guidance to the closest corresponding U.S. GAAP measures are 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"): Contribution ex-TAC, 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.

Contribution ex-TAC is a profitability measure akin to gross profit. It is calculated by deducting traffic acquisition costs from revenue and reconciled to gross profit through the exclusion of other costs of revenue. Contribution ex-TAC is not a measure calculated in accordance with U.S. GAAP. We have included Contribution ex-TAC 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. In particular, we believe that this measure can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Contribution ex-TAC 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

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, certain restructuring, integration and transformation costs, and certain acquisition 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 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 assets, certain restructuring, integration and transformation costs, certain acquisition 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 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 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 equity awards compensation expense, pension service costs, certain restructuring, integration and transformation costs, and certain acquisition and integration 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 Contribution ex-TAC to gross profit, 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 Contribution ex-TAC, 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, 2025 and the year ending December 31, 2025, 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 our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions or strategic transactions materialize as expected, uncertainty regarding international operations and expansion, including related to changes in a specific country's or region's political or economic conditions (such as changes in or new tariffs), the impact of competition or client in-housing, 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, client flexibility to increase or decrease spend, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, and the financial impact of maximizing Contribution 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 28, 2025, and in subsequent Quarterly Reports on Form 10-Q as well as future filings and reports by the Company. Importantly, at this time, macro-economic conditions including inflation and fluctuating interest rates in the U.S. have impacted and may continue to impact Criteo's business, financial condition, cash flow and results of operations.

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, May 2, 2025, at 8:00 AM ET, 2:00 PM CET. The conference call will be webcast live on the Company's website at https://criteo.investorroom.com/ and will subsequently be available for replay.

  • United States:             +1 800 836 8184
  • International:               +1 646 357 8785
  • France                         080-094-5120

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

About Criteo

Criteo (NASDAQ: CRTO) is the global commerce media company that enables marketers and media owners to drive better commerce outcomes. Its industry leading Commerce Media Platform connects thousands of marketers and media owners to deliver richer consumer experiences from product discovery to purchase. By powering trusted and impactful advertising, Criteo supports an open internet that encourages discovery, innovation, and choice. For more information, please visit www.criteo.com.

Contacts

Criteo Investor Relations

Melanie Dambre, [email protected] 

Criteo Public Relations

Jessica Meyers, [email protected] 

Financial information to follow

 

CRITEO S.A.

Consolidated Statement of Financial Position

(U.S. dollars in thousands, unaudited)







March 31, 2025



December 31, 2024

Assets









Current assets:









Cash and cash equivalents



$                         285,850



$                         290,693

Trade receivables, net of allowances of $ 27.0 million and $ 28.6 million at

March 31, 2025 and December 31, 2024, respectively



647,109



800,859

Income taxes



1,564



1,550

Other taxes



58,213



53,883

Other current assets



63,901



50,887

Marketable securities - current portion



27,301



26,242

Total current assets



1,083,938



1,224,114

Property and equipment, net



105,675



107,222

Intangible assets, net



160,264



158,384

Goodwill



521,137



515,188

Right of Use Asset - operating lease



100,736



99,468

Marketable securities - noncurrent portion



16,223



15,584

Noncurrent financial assets



4,920



4,332

Other noncurrent assets



60,733



61,151

Deferred tax assets



74,319



81,006

    Total noncurrent assets



1,044,007



1,042,335

Total assets



$                     2,127,945



$                     2,266,449











Liabilities and shareholders' equity









Current liabilities:









Trade payables



$                         639,807



$                         802,524

Contingencies - current portion



1,649



1,882

Income taxes



31,266



34,863

Financial liabilities - current portion



6,980



3,325

Lease liability - operating - current portion



25,629



25,812

Other taxes



21,983



19,148

Employee - related payables



118,435



109,227

Other current liabilities



41,055



49,819

Total current liabilities



886,804



1,046,600

Deferred tax liabilities



4,200



4,067

Defined benefit plans



4,826



4,709

Financial liabilities - noncurrent portion



309



297

Lease liability - operating - noncurrent portion



77,788



77,584

Contingencies - noncurrent portion



31,939



31,939

Other noncurrent liabilities



21,843



20,156

    Total noncurrent liabilities



140,905



138,752

Total liabilities



1,027,709



1,185,352

Commitments and contingencies









Shareholders' equity:









Common shares, €0.025 par value, 57,854,895 and 57,744,839 shares

authorized, issued and outstanding at March 31, 2025  and December 31, 2024,

respectively.



1,933



1,931

Treasury stock, 4,285,178 and 3,467,417 shares at cost as of March 31, 2025

and December 31, 2024 , respectively.



(159,400)



(125,298)

Additional paid-in capital



707,489



709,580

Accumulated other comprehensive loss



(92,838)



(108,768)

Retained earnings



607,415



571,744

Equity attributable to the shareholders of Criteo S.A.



1,064,599



1,049,189

Noncontrolling interests



35,637



31,908

Total equity



1,100,236



1,081,097

Total equity and liabilities



$                     2,127,945



$                     2,266,449

 

CRITEO S.A.

Consolidated Statement of Operations

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







Three Months Ended





March 31,





2025



2024











Revenue



$       451,434



$       450,055











Cost of revenue









Traffic acquisition cost



187,062



196,167

Other cost of revenue



27,396



36,665











Gross profit



236,976



217,223











Operating expenses:









Research and development expenses



60,749



66,858

Sales and operations expenses



88,889



92,842

General and administrative expenses



39,171



47,169

Total operating expenses



188,809



206,869

Income from operations



48,167



10,354

Financial and other income



2,302



1,181

Income before taxes



50,469



11,535

Provision for income taxes



10,458



2,969

Net income



$         40,011



$            8,566











Net income available to shareholders of Criteo S.A.



$         37,928



$            7,244

Net income available to noncontrolling interests



$            2,083



$            1,322











Weighted average shares outstanding used in computing per share amounts:









Basic



53,979,157



55,149,622

Diluted



57,195,898



59,332,882











Net income allocated to shareholders per share:









Basic



$              0.70



$              0.13

Diluted



$              0.66



$              0.12

 

CRITEO S.A.

Consolidated Statement of Cash Flows

(U.S. dollars in thousands, unaudited)







Three Months Ended





March 31,





2025



2024

Cash flows from operating activities









Net income



$            40,011



$             8,566

Non-cash and non-operating items



42,630



60,161

          - Amortization and provisions



23,583



25,235

          - Equity awards compensation expense



17,135



27,292

          - Change in uncertain tax positions





882

          - Net change in fair value of earn-out





3,237

          - Change in deferred taxes



6,888



3,174

          - Change in income taxes



(4,288)



(2,255)

          - Other



(688)



2,596

Changes in assets and liabilities:



(20,300)



(54,710)

           - Trade receivables



163,943



158,056

           - Trade payables



(174,331)



(201,921)

           - Other current assets



(8,460)



(6,589)

           - Other current liabilities



(145)



(3,534)

           - Change in operating lease liabilities and right of use assets



(1,307)



(722)

Net cash provided by operating activities



62,341



14,017

Cash flows from investing activities









Acquisition of intangible assets, property and equipment



(17,091)



(13,844)

Disposal of intangibles assets, property and equipment





620

Payment for business, net of cash acquired





(527)

Purchases of marketable securities



(11,449)



(671)

Maturities and sales of marketable securities



11,002



523

Net cash used in investing activities



(17,538)



(13,899)

Cash flows from financing activities









Proceeds from exercise of stock options



1,845



395

Repurchase of treasury stocks



(56,168)



(62,143)

Change in other financing activities



(471)



(432)

Net cash used in financing activities



(54,794)



(62,180)

Effect of exchange rates changes on cash and cash equivalents



5,219



(7,333)

Net decrease in cash and cash equivalents and restricted cash



(4,772)



(69,395)

Net cash and cash equivalents and restricted cash at the beginning of the period



290,943



411,257

Net cash and cash equivalents and restricted cash at the end of the period



$         286,171



$        341,862











SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION









Cash paid for taxes, net of refunds



$            (5,920)



$           (1,168)

Cash paid for interest



$               (244)



$              (327)

Noncash investing and financing activities









Intangible assets, property and equipment acquired through payables



$              1,621



$             2,738

 

CRITEO S.A.

Reconciliation of Cash from Operating Activities to Free Cash Flow

(U.S. dollars in thousands, unaudited)







Three Months Ended









March 31,









2025



2024



YoY

Change















CASH FROM OPERATING ACTIVITIES



$     62,341



$     14,017



345 %

Acquisition of intangible assets, property and equipment       



(17,091)



(13,844)



(23) %

Disposal of intangible assets, property and equipment





620



(100) %

FREE CASH FLOW (1)



$     45,250



$           793



NM



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

intangible assets, property and equipment.

 

CRITEO S.A.

Reconciliation of Contribution ex-TAC to Gross Profit

(U.S. dollars in thousands, unaudited)





Three Months Ended



March 31,



2025

2024

YoY Change









Gross Profit

236,976

217,223

9 %









Other Cost of Revenue

27,396

36,665

(25) %









Contribution ex-TAC (1)              

$        264,372

$           253,888

4 %



(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

 

CRITEO S.A.

Segment Information

(U.S. dollars in thousands, unaudited)











Three Months Ended

















March 31,











Segment





2025



2024



YoY

Change



YoY

Change at

Constant

Currency (2)

Revenue





















Retail Media





$         59,498



$    50,872



17 %



18 %



Performance Media





391,936



399,183



(2) %



1 %



Total





451,434



450,055



0.3 %



3 %























Contribution ex-TAC





















Retail Media





58,790



50,169



17 %



18 %



Performance Media





205,582



203,719



1 %



4 %



Total (1)





$      264,372



$  253,888



4 %



7 %



(1) Refer to the Non-GAAP Financial Measures section of this filing for the definition of the Non-GAAP metric.

(2) Constant currency measures exclude the impact of foreign currency fluctuations and is computed by applying the prior year monthly exchange rates to transactions

denominated in settlement or billing currencies other than the US dollar.

 

CRITEO S.A.

Reconciliation of Adjusted EBITDA to Net Income (Loss)

(U.S. dollars in thousands, unaudited)







Three Months Ended









March 31,









2025



2024



YoY

Change

Net income



$          40,011



$            8,566



367 %

Adjustments:













Financial income



(1,948)



(1,181)



(65) %

Provision for income taxes



10,458



2,969



252 %

Equity awards compensation expense



15,880



27,292



(42) %

Pension service costs



183



172



6 %

Depreciation and amortization expense



25,693



24,918



3 %

Restructuring, integration and transformation costs      



1,871



7,943



(76) %

Total net adjustments



52,137



62,113



(16) %

Adjusted EBITDA (1)



$          92,148



$          70,679



30 %



(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

 

CRITEO S.A.

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

(U.S. dollars in thousands, unaudited)







Three Months Ended









March 31,









2025



2024



YoY

Change

Research and Development expenses



$        60,749



$        66,858



(9) %

Equity awards compensation expense



4,334



14,594



(70) %

Depreciation and Amortization expense



16,673



12,328



35 %

Pension service costs



101



91



11 %

                         Restructuring, integration and transformation costs



73



471



(85) %

Non GAAP - Research and Development expenses



39,568



39,374



— %

Sales and Operations expenses



88,889



92,842



(4) %

Equity awards compensation expense



5,421



5,727



(5) %

Depreciation and Amortization expense



3,339



3,233



3 %

Pension service costs



24



26



(8) %

Restructuring, integration and transformation costs



66



494



(87) %

Non GAAP - Sales and Operations expenses



80,039



83,362



(4) %

General and Administrative expenses



39,171



47,169



(17) %

Equity awards compensation expense



6,125



6,971



(12) %

Depreciation and Amortization expense



333



453



(26) %

Pension service costs



58



55



5 %

Restructuring, integration and transformation costs



1,732



6,978



(75) %

Non GAAP - General and Administrative expenses



30,923



32,712



(5) %

Total Operating expenses



188,809



206,869



(9) %

Equity awards compensation expense



15,880



27,292



(42) %

Depreciation and Amortization expense



20,345



16,014



27 %

Pension service costs



183



172



6 %

Restructuring, integration and transformation costs



1,871



7,943



(76) %

Total Non GAAP Operating expenses (1)



150,530



155,448



(3) %



(1) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

 

CRITEO S.A.

Reconciliation of Adjusted Net Income to Net Income (Loss)

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









Three Months Ended











March 31,











2025



2024



YoY

Change

















Net income





$        40,011



$          8,566



367 %

Adjustments:















Equity awards compensation expense





15,880



27,292



(42) %

Amortization of acquisition-related intangible assets





8,998



8,679



4 %

Restructuring, integration and transformation costs





1,871



7,943



(76) %

Tax impact of the above adjustments (1)





(3,930)



(4,988)



21 %

Total net adjustments





22,819



38,926



(41) %

Adjusted net income(2)





$        62,830



$        47,492



32 %

















Weighted average shares outstanding















 - Basic





53,979,157



55,149,622





 - Diluted





57,195,898



59,332,882





















Adjusted net income per share















 - Basic





$1.16



$            0.86



35 %

 - Diluted





$1.10



$            0.80



38 %



(1) We consider the nature of the adjustment to determine its tax treatment in the various tax jurisdictions we operate in. The tax impact is calculated by applying the actual tax rate for the entity and period to which the adjustment relates.

(2) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

 

CRITEO S.A.

Constant Currency Reconciliation(1)

(U.S. dollars in thousands, unaudited)









Three Months Ended











March 31,











2025



2024



YoY

Change

















Gross Profit as reported





$        236,976



$        217,223



9 %

















Other cost of revenue as reported





27,396



36,665



(25) %

















Contribution ex-TAC as reported(2)





264,372



253,888



4 %

Conversion impact U.S. dollar/other currencies





6,196









Contribution ex-TAC at constant currency





270,568



253,888



7 %

















Traffic acquisition costs as reported





187,062



196,167



(5) %

Conversion impact U.S. dollar/other currencies





4,386









Traffic acquisition costs at constant currency





191,448



196,167



(2) %

















Revenue as reported





451,434



450,055



— %

Conversion impact U.S. dollar/other currencies





10,582









Revenue at constant currency





$        462,016



$        450,055



3 %



(1) Constant currency measures exclude the impact of foreign currency fluctuations and is computed by applying the prior year monthly exchange rates to transactions

denominated in settlement or billing currencies other than the US dollar.

(2) Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.

 

CRITEO S.A.

Information on Share Count

(unaudited)







Three Months Ended





2025



2024

Shares outstanding as at January 1,



54,277,422



55,765,091

Weighted average number of shares issued during the period            



(298,265)



(615,469)

Basic number of shares - Basic EPS basis



53,979,157



55,149,622

Dilutive effect of share-based awards - Treasury method



3,216,741



4,183,260

Diluted number of shares - Diluted EPS basis



57,195,898



59,332,882











Shares issued as at March 31, before Treasury stocks



57,854,895



61,181,001

Treasury stocks as of March 31,



(4,285,178)



(6,617,119)

Shares outstanding as of March 31, after Treasury stocks



53,569,717



54,563,882

Total dilutive effect of share-based awards



5,798,947



8,851,780

Fully diluted shares as at March 31,



59,368,664



63,415,662

 

CRITEO S.A.

Supplemental Financial Information and Operating Metrics

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





YoY

Change

QoQ

Change

Q1

2025

Q4

2024

Q3

2024

Q2

2024

Q1

2024

Q4

2023

Q3

2023

Q2

2023

Q1

2023

























Clients

(4) %

(1) %

17,084

17,269

17,162

17,744

17,767

18,197

18,423

18,646

18,679

























Revenue 

0.3 %

(18) %

451,434

553,035

458,892

471,307

450,055

566,302

469,193

468,934

445,016

Americas

(3) %

(30) %

192,908

274,620

206,816

212,374

198,365

280,597

219,667

208,463

188,288

EMEA

1 %

(10) %

164,861

183,372

161,745

168,496

162,842

189,291

158,756

163,969

160,214

APAC

5 %

(1) %

93,665

95,043

90,331

90,437

88,848

96,414

90,770

96,502

96,514

























Revenue

— %

(18) %

451,434

553,035

458,892

471,307

450,055

566,302

469,193

468,934

445,016

Retail Media

17 %

(35) %

59,498

91,889

60,765

54,777

50,872

76,583

49,813

44,590

38,021

Performance Media

(2) %

(15) %

391,936

461,146

398,127

416,530

399,183

489,719

419,380

424,344

406,995

























TAC

(5) %

(14) %

187,062

218,636

192,789

204,214

196,167

249,926

223,798

228,717

224,398

Retail Media

1 %

(57) %

708

1,661

1,182

911

703

2,429

1,377

1,072

669

Performance Media

(5) %

(14) %

186,354

216,975

191,607

203,303

195,464

247,497

222,421

227,645

223,729

























Contribution ex-TAC (1)

4 %

(21) %

264,372

334,399

266,103

267,093

253,888

316,376

245,395

240,217

220,618

Retail Media

17 %

(35) %

58,790

90,228

59,583

53,866

50,169

74,154

48,436

43,518

37,352

Performance Media

1 %

(16) %

205,582

244,171

206,520

213,227

203,719

242,222

196,959

196,699

183,266

























Cash flow from operating activities 

345 %

(63) %

62,341

169,454

57,503

17,187

14,017

161,340

19,614

1,328

41,964

























Capital expenditures

29 %

(27) %

17,091

23,394

18,899

21,119

13,224

19,724

15,849

45,519

33,219

























Net cash position

(16) %

(2) %

286,171

290,943

283,990

291,698

341,862

411,257

269,857

298,183

380,663

























Headcount

(1) %

1 %

3,533

3,507

3,504

3,498

3,559

3,563

3,487

3,514

3,636

























Days Sales Outstanding

(days - end of month) (2)

2 days

6 days

68

62

65

64

66

58

61

69

74





(1)  Refer to the "Non-GAAP Financial Measures" section for the definition of this Non-GAAP metric.



(2) From September 2023, we have included Iponweb in our calculation of Days Sales Outstanding. Days Sales Outstanding excluding Iponweb would have been 71 days for the same period.



 

View original content:https://www.prnewswire.com/news-releases/criteo-reports-record-first-quarter-2025-results-302444761.html

SOURCE Criteo Corp

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