NEW YORK, Feb. 18, 2015 (GLOBE NEWSWIRE) -- Criteo S.A. (Nasdaq:CRTO), the performance marketing technology company, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2014.
Executive Quote
"Performance for clients is everything," said JB Rudelle, Criteo's co-founder and CEO. "2014 has demonstrated that our focus on driving incremental sales for our clients accelerates our own success."
Operating Highlights
Acquisition of DataPop, Inc.
As of February 17, 2015, Criteo acquired DataPop, Inc., a Los Angeles-based company specializing in connecting the products in a retailer's catalog to actual user shopping intent.
Revenue ex-TAC
Revenue ex-TAC grew 76% in the fourth quarter 2014, or 73% at constant currency, to €96 million, compared with €55 million in the fourth quarter 2013. This year-over-year performance was mainly driven by two factors: increased revenue ex-TAC per client due to the continued roll-out of our enhanced engine and multi-screen solution, and the steady growth in both our client base and our publisher relationships.
For fiscal year 2014, revenue ex-TAC grew 70%, or 72% at constant currency, to €304 million, compared with €179 million in fiscal year 2013.
Revenue ex-TAC margin as a percentage of revenue in the fourth quarter 2014 was 41.4%, compared with 40.4% in the fourth quarter 2013.
Revenue ex-TAC margin as a percentage of revenue for fiscal year 2014 was 40.8%, compared with 40.3% in fiscal year 2013.
Adjusted EBITDA and Operating Expenses
Adjusted EBITDA in the fourth quarter 2014 was €32 million, an increase of 120%, or 121% at constant currency, compared with €15 million in the fourth quarter 2013. This year-over-year increase in Adjusted EBITDA is primarily the result of the strong revenue ex-TAC performance in the quarter. In addition, we incurred some additional variable costs driven by the revenue ex-TAC over-performance as well as some exceptional costs primarily related to consulting fees.
Adjusted EBITDA for fiscal year 2014 was €79 million, an increase of 154%, or 156% at constant currency, compared with €31 million in fiscal year 2013.
Adjusted EBITDA margin as a percentage of revenue in the fourth quarter 2014 was 13.7%, compared with 10.7% in the fourth quarter 2013.
Adjusted EBITDA margin as a percentage of revenue in fiscal year 2014 was 10.7%, a 3.6 percentage points improvement compared with 7.1% in fiscal year 2013.
Operating expenses in the fourth quarter of 2014 were €66 million, an increase of 58% compared with the fourth quarter 2013. Excluding the impact of share-based compensation, pension costs, depreciation and amortization and acquisition-related deferred price consideration, which, taking all exclusions together, we reference as operating expenses on a "Non-IFRS basis", our operating expenses in the fourth quarter 2014 were €58 million, an increase of 59% compared with the fourth quarter 2013. This increase in operating expenses over the period was principally related to headcount growth across our three main functions - Research & Development, Sales & Operations and General & Administrative - as we continued to scale the whole Criteo organization. In particular, our headcount in Sales & Operations increased by 70% year-over-year in an effort to capture our market opportunity in all geographies, especially in our mid-market organization. We intend to continue to invest significantly in Research & Development and Sales & Operations in fiscal year 2015 to support our current and anticipated future growth.
Operating expenses for fiscal year 2014 were €227 million, an increase of 55% compared with fiscal year 2013. On a Non-IFRS basis, our operating expenses for fiscal year 2014 were €204 million, an increase of 53% compared with fiscal year 2013. Expressed as a percentage of revenue, our Non-IFRS operating expenses for fiscal year 2014 were at 27.4%, a decrease of 2.7 percentage points over the period, driven by the decrease in our Sales & Operations expenses and General & Administrative expenses for fiscal year 2014, by 1.3 percentage points and 0.4 percentage point respectively over the period.
Net Income and Adjusted Net Income
Net income in the fourth quarter 2014 was €18 million, representing a €14 million increase compared with €3 million in the fourth quarter 2013. Net income available to shareholders of Criteo S.A. for the fourth quarter 2014 was €17 million, or €0.275 per diluted share, compared with €3 million, or €0.055 per diluted share, in the fourth quarter 2013.
Net income for fiscal year 2014 was €35 million, representing a €34 million increase compared with €1 million fiscal year 2013. Net income available to shareholders of Criteo S.A. for fiscal year 2014 was €35 million, or €0.548 per diluted share, compared with €1 million, or €0.019 per diluted share, in fiscal year 2013.
Adjusted Net Income for the fourth quarter 2014, or our net income adjusted to eliminate the impact of share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related deferred price consideration and the tax impact of these adjustments, was €23 million, representing a €16 million increase compared with €7 million in the fourth quarter 2013.
Adjusted Net Income for fiscal year 2014 was €53 million, representing a €42 million increase compared with €11 million in fiscal year 2013.
Cash Flow and Cash Position
Business Outlook
The following forward-looking statements reflect Criteo's expectations as of February 18, 2015.
First Quarter 2015 Guidance:
Fiscal Year 2015 Guidance:
The above guidance assumes no additional acquisitions are completed during the quarter ending March 31, 2015 and the fiscal year ending December 31, 2015.
Non-IFRS Financial Measures
This press release and its attachments include the following financial measures defined as non-IFRS financial measures by the U.S. Securities and Exchange Commission (SEC): Revenue ex-TAC, Revenue ex-TAC by region, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-IFRS Operating Expenses, Revenue ex-TAC margin and Adjusted EBITDA margin. These measures are not calculated in accordance with IFRS.
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 core geographies. Revenue ex-TAC and Revenue ex-TAC by region 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 core business and across our core geographies. Accordingly, we believe that Revenue ex-TAC provides 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 income (loss) from operations before interest, taxes, depreciation and amortization, adjusted to eliminate the impact of share-based compensation expense, pension service costs and acquisition-related deferred price consideration. Adjusted EBITDA 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‑ and long-term operational plans. In particular, we believe that the elimination of non-cash compensation expense, pension costs and acquisition-related deferred price consideration in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business.
Adjusted Net Income is our net income adjusted to eliminate the impact of share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related deferred price consideration, and the tax impact of these adjustments. Adjusted Net Income is not a measure calculated in accordance with IFRS. In particular, we believe that the elimination of share-based compensation expense, amortization of acquisition-related intangible assets and acquisition-related deferred price consideration and the tax impact of these adjustments in calculating Adjusted Net Income can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted Net Income provides 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.
Please refer to 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 geography,, Adjusted EBITDA to net income and Adjusted Net Income to net income, the most comparable IFRS measurements. Our use of non-IFRS financial measures has limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under the International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. 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, Adjusted EBITDA, Adjusted Net Income or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider these measures alongside our other IFRS-based financial performance measures, such as revenue, net income and our other IFRS financial results.
With respect to our expectations under "Business Outlook" above, reconciliation of Revenue ex-TAC and Adjusted EBITDA guidance to the closest corresponding IFRS 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-IFRS measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future IFRS financial results.
These measures may be different than non-IFRS financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. Explanations of the Company's non-IFRS financial measures, and reconciliations of these financial measures to the IFRS financial measures the Company considers most comparable, are included in the accompanying tables below.
Forward-Looking Statements Disclosure
This press release contains forward-looking statements, including projected financial results for the quarter ending March 31, 2015 and the fiscal year ending December 31, 2015, 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: recent growth rates not being indicative of future growth, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, the investments in new business opportunities and the timing of these investments, the impact of competition, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, uncertainty regarding international growth and expansion, 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 Registration Statement on Form F-1 filed with the SEC on March 20, 2014, as well as future filings and reports by the Company. 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 will hold a conference call today, February 18, 2015, at 8:00am ET, 2:00pm CET, to discuss Criteo's operating and financial results for the fourth quarter and fiscal year 2014, as well as other forward-looking information about Criteo's business.
Conference call details are:
The conference call will also be webcast simultaneously at http://ir.criteo.com.
About Criteo
Criteo delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to measure. Criteo has over 1,300 employees in 23 offices across the Americas, Europe and Asia-Pacific, serving over 7,000 advertisers worldwide with direct relationships with over 9,000 publishers.
For more information, please visit www.criteo.com.
1Variations at constant currency exclude the impact of foreign currency fluctuations and are computed by applying the 2013 average exchange rates to 2014 figures.
| CRITEO S.A. | ||||||
| Consolidated Statement of Income | ||||||
| (Euros in thousands, except per share data) | ||||||
| (unaudited) | ||||||
| Three Months Ended | Twelve Months Ended | |||||
| December 31, | December 31, | |||||
| 2013 | 2014 | Year-over-year growth |
2013 | 2014 | Year-over-year growth |
|
| Revenue | 135,889 | 232,796 | 71.3% | 443,960 | 745,081 | 67.8% |
| Cost of revenue | ||||||
| Traffic Acquisition cost (TAC) | -81,034 | -136,493 | 68.4% | -264,952 | -441,427 | 66.6% |
| Other cost of revenue | -6,334 | -11,054 | 74.5% | -21,956 | -36,150 | 64.6% |
| Gross Profit | 48,521 | 85,249 | 75.7% | 157,052 | 267,504 | 70.3% |
| Research & development expenses | -9,973 | -12,191 | 22.2% | -32,175 | -45,293 | 40.8% |
| Sales & operations expenses | -22,306 | -39,668 | 77.8% | -82,816 | -133,393 | 61.1% |
| General & administrative expenses | -9,273 | -13,698 | 47.7% | -31,387 | -48,788 | 55.4% |
| Total operating expenses | -41,552 | -65,557 | 57.8% | -146,378 | -227,474 | 55.4% |
| Income from operations | 6,969 | 19,692 | 182.6% | 10,674 | 40,030 | 275.0% |
| Financial income | -3,269 | 1,264 | -138.7% | -6,868 | 8,587 | -225.0% |
| Income before taxes | 3,700 | 20,956 | 466.4% | 3,806 | 48,617 | 1177.4% |
| Provision for income taxes | -432 | -3,313 | 667.0% | -2,413 | -13,253 | 449.2% |
| Net income (loss) | 3,268 | 17,643 | 439.9% | 1,393 | 35,364 | 2438.7% |
| - Net income (loss) available to shareholders of Criteo SA | 3,046 | 17,256 | 1,065 | 34,354 | ||
| - Net income (loss) available to non-controlling interests | 222 | 387 | 328 | 1,010 | ||
| Net income (loss) allocated to shareholders per share | ||||||
| - Basic | 0.063 | 0.293 | 0.022 | 0.583 | ||
| - Diluted | 0.055 | 0.275 | 0.019 | 0.548 | ||
| Basic | 48,692,148 | 58,928,563 | 48,692,148 | 58,928,563 | ||
| Diluted | 55,174,764 | 62,645,716 | 55,174,764 | 62,645,716 | ||
| CRITEO S.A. | ||
| Consolidated Statement of Financial Position | ||
| (Euros in thousands) | ||
| (unaudited) | ||
| December 31, | December 31, | |
| 2013 | 2014 | |
| Goodwill | 4,191 | 22,944 |
| Intangible assets | 6,624 | 10,560 |
| Property, plant and equipment | 24,716 | 43,027 |
| Non-current financial assets | 7,627 | 9,494 |
| Deferred tax assets | 4,486 | 7,113 |
| TOTAL NON-CURRENT ASSETS | 47,644 | 93,138 |
| Trade receivables | 87,643 | 158,633 |
| Current tax assets | 8,014 | 2,883 |
| Other current assets | 13,466 | 20,606 |
| Cash and cash equivalents | 234,343 | 289,784 |
| TOTAL CURRENT ASSETS | 343,466 | 471,906 |
| TOTAL ASSETS | 391,110 | 565,044 |
| Share capital | 1,421 | 1,523 |
| Additional paid-in capital | 241,468 | 265,522 |
| Currency translation reserve | 1,384 | 4,804 |
| Consolidated reserves | 19,523 | 35,302 |
| Retained earnings | 1,065 | 34,354 |
| Equity - attributable to shareholders of Criteo SA | 264,861 | 341,505 |
| Non-controlling interests | 213 | 1,433 |
| TOTAL EQUITY | 265,074 | 342,938 |
| Financial liabilities - non-current portion | 6,119 | 4,543 |
| Retirement benefit obligation | 925 | 1,024 |
| Deferred tax liabilities | 303 | 946 |
| TOTAL NON-CURRENT LIABILITIES | 7,347 | 6,513 |
| Financial liabilities - current portion | 5,197 | 7,631 |
| Bank overdrafts | 36 | |
| Provisions | 830 | 1,131 |
| Trade payables | 75,889 | 135,400 |
| Current tax liabilities | 1,549 | 7,969 |
| Other current liabilities | 35,224 | 63,426 |
| TOTAL CURRENT LIABILITIES | 118,689 | 215,593 |
| TOTAL LIABILITIES | 126,036 | 222,106 |
| TOTAL EQUITY AND LIABILITIES | 391,110 | 565,044 |
| CRITEO S.A. | ||||
| Consolidated Statement of Cash Flows | ||||
| (Euros in thousands) | ||||
| (unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2013 | 2014 | 2013 | 2014 | |
| Net income (loss) | 3,268 | 17,643 | 1,393 | 35,364 |
| Non-cash and non-operating items | 6,570 | 16,379 | 21,558 | 53,934 |
| - Amortization and provisions | 3,762 | 7,662 | 12,195 | 25,148 |
| - Share-based payment expense | 2,332 | 4,840 | 6,876 | 14,778 |
| - Net gain or loss on disposal of non-current assets | 34 | 110 | 45 | 106 |
| - Interest paid | 2 | 5 | 9 | 17 |
| - Non-cash financial income and expenses | 8 | 449 | 20 | 632 |
| - Change in deferred taxes | -2,431 | -4,573 | -3,697 | -4,007 |
| - Income tax for the period | 2,863 | 7,886 | 6,110 | 17,260 |
| Changes in working capital related to operating activities | 3,842 | 12,217 | 12,965 | 3,479 |
| - (Increase) / decrease in trade receivables | -16,325 | -26,812 | -31,433 | -63,064 |
| - Increase / (decrease) in trade payables | 12,393 | 28,521 | 33,704 | 53,039 |
| - (Increase) / decrease in other current assets | 4,839 | 640 | -5,560 | -5,946 |
| - Increase / (decrease) in other current liabilities | 2,935 | 9,868 | 16,254 | 19,450 |
| Income taxes paid | -1,425 | -6,684 | -11,211 | -5,142 |
| CASH FROM OPERATING ACTIVITIES | 12,255 | 39,555 | 24,705 | 87,635 |
| Acquisition of intangible assets, property, plant and equipment | -7,187 | -9,993 | -22,003 | -35,389 |
| Proceeds from disposal of intangible assets, property, plant and equipment | 20 | -10 | 90 | 40 |
| FREE CASH FLOW | 5,088 | 29,552 | 2,792 | 52,286 |
| Investments | -129 | 0 | -5,414 | -18,775 |
| Change in other non-current financial assets | -35 | -521 | -806 | -1,728 |
| CASH USED FOR INVESTING ACTIVITIES | -7,331 | -10,524 | -28,133 | -55,852 |
| Issuance of long-term borrowings | 0 | 1,189 | 8,000 | 4,243 |
| Repayment of borrowings | -1,192 | -1,196 | -3,450 | -4,902 |
| Interests paid | -2 | -5 | -9 | -17 |
| Proceeds from capital increase | 191,725 | 3,730 | 192,175 | 23,854 |
| Change in other financial liabilities | 0 | 48 | 0 | 205 |
| CASH FROM (USED FOR) FINANCING ACTIVITIES | 190,531 | 3,766 | 196,716 | 23,383 |
| CHANGE IN NET CASH & CASH EQUIVALENTS | 195,455 | 32,797 | 193,288 | 55,166 |
| Net cash & cash equivalents at beginning of period | 39,838 | 256,719 | 43,262 | 234,342 |
| Effect of exchange rates changes on cash and cash equivalents | -951 | 232 | -2,208 | 240 |
| Net cash & cash equivalents at end of period | 234,342 | 289,748 | 234,342 | 289,748 |
| CRITEO S.A. | ||||||||||
| Reconciliation of Revenue ex-TAC by Region to Revenue by Region | ||||||||||
| (Euros in thousands) | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||
| December 31, | December 31, | |||||||||
| Region | 2013 | 2014 | Year-over-year growth |
Year-over-year growth at constant currency |
Region | 2013 | 2014 | Year-over-year growth |
Year-over-year growth at constant currency |
|
| Revenue | Americas | 38,660 | 85,598 | 121.4% | 113.8% | Americas | 123,004 | 228,773 | 86.0% | 88.8% |
| EMEA | 70,291 | 104,480 | 48.6% | 47.4% | EMEA | 237,800 | 366,404 | 54.1% | 53.1% | |
| Asia-Pacific | 26,937 | 42,718 | 58.6% | 62.6% | Asia-Pacific | 83,155 | 149,904 | 80.3% | 92.1% | |
| Total | 135,889 | 232,796 | 71.3% | 69.3% | Total | 443,960 | 745,081 | 67.8% | 70.3% | |
| Traffic acquisition costs | Americas | -23,552 | -52,167 | 121.5% | 114.0% | Americas | -75,306 | -138,910 | 84.5% | 87.3% |
| EMEA | -41,235 | -58,449 | 41.7% | 40.5% | EMEA | -140,416 | -211,287 | 50.5% | 49.5% | |
| Asia-Pacific | -16,247 | -25,877 | 59.3% | 63.8% | Asia-Pacific | -49,230 | -91,230 | 85.3% | 98.0% | |
| Total | -81,034 | -136,493 | 68.4% | 66.6% | Total | -264,952 | -441,427 | 66.6% | 69.3% | |
| Revenue ex-TAC | Americas | 15,108 | 33,432 | 121.3% | 113.5% | Americas | 47,698 | 89,863 | 88.4% | 91.2% |
| EMEA | 29,057 | 46,030 | 58.4% | 57.2% | EMEA | 97,385 | 155,117 | 59.3% | 58.2% | |
| Asia-Pacific | 10,690 | 16,841 | 57.5% | 60.8% | Asia-Pacific | 33,925 | 58,674 | 72.9% | 83.6% | |
| Total | 54,855 | 96,303 | 75.6% | 73.4% | Total | 179,008 | 303,654 | 69.6% | 71.8% | |
| CRITEO S.A. | ||||
| Reconciliation of Adjusted EBITDA to Net Income | ||||
| (Euros in thousands) | ||||
| (unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2013 | 2014 | 2013 | 2014 | |
| Reconciliation of Adjusted EBITDA to Net income | ||||
| Net income (loss) | 3,268 | 17,643 | 1,393 | 35,364 |
| Adjustments: | ||||
| Financial (income) expense | 3,269 | -1,264 | 6,868 | -8,587 |
| Provision for income taxes | 433 | 3,313 | 2,413 | 13,253 |
| Share-based compensation expense | 2,332 | 4,840 | 6,876 | 14,778 |
| Research and development | 581 | 700 | 2,049 | 2,776 |
| Sales and operations | 1,292 | 2,814 | 2,801 | 9,267 |
| General and administrative | 460 | 1,326 | 2,026 | 2,735 |
| Service cost-pension | 43 | 94 | 281 | 371 |
| Research and development | 17 | 31 | 109 | 126 |
| Sales and operations | 21 | 36 | 105 | 141 |
| General and administrative | 5 | 27 | 67 | 104 |
| Depreciation and amortization expense | 3,899 | 7,131 | 11,119 | 23,532 |
| Cost of revenue | 2,696 | 5,008 | 7,847 | 16,176 |
| Research and development | 518 | 1,009 | 915 | 3,731 |
| Sales and operations | 523 | 854 | 1,792 | 2,762 |
| General and administrative | 162 | 260 | 566 | 863 |
| Acquisition-related deferred price consideration | 1,261 | 97 | 2,363 | 716 |
| Research and development | 1,261 | 97 | 2,363 | 716 |
| Sales and operations | -- | -- | -- | -- |
| General and administrative | -- | -- | -- | -- |
| Total net adjustments | 11,237 | 14,211 | 29,920 | 44,063 |
| Adjusted EBITDA | 14,505 | 31,854 | 31,313 | 79,427 |
| CRITEO S.A. | ||||
| Detailed Information on Selected Items | ||||
| (Euros in thousands) | ||||
| (unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2013 | 2014 | 2013 | 2014 | |
| Share-Based Compensation Expense | ||||
| Research and development | 581 | 700 | 2,049 | 2,776 |
| Sales and operations | 1,292 | 2,814 | 2,801 | 9,267 |
| General and administrative | 460 | 1,326 | 2,026 | 2,735 |
| Total Share-Based Compensation Expense | 2,332 | 4,840 | 6,876 | 14,778 |
| Pension costs | ||||
| Research and development | 17 | 31 | 109 | 126 |
| Sales and operations | 21 | 36 | 105 | 141 |
| General and administrative | 5 | 27 | 67 | 104 |
| Total Pension costs | 43 | 94 | 281 | 371 |
| Depreciation and Amortization Expense | ||||
| Cost of revenue | 2,696 | 5,008 | 7,847 | 16,176 |
| Research and development | 518 | 1,009 | 915 | 3,731 |
| Sales and operations | 523 | 854 | 1,792 | 2,762 |
| General and administrative | 162 | 260 | 566 | 863 |
| Total Depreciation and Amortization Expense | 3,899 | 7,131 | 11,119 | 23,533 |
| Acquisition-related deferred price consideration | ||||
| Research and development | 1,261 | 97 | 2,363 | 716 |
| Sales and operations | -- | -- | -- | -- |
| General and administrative | -- | -- | -- | -- |
| Total Acquisition-related deferred price consideration | 1,261 | 97 | 2,363 | 716 |
| CRITEO S.A. | ||||
| Reconciliation of Adjusted Net Income to Net Income | ||||
| (Euros in thousands) | ||||
| (unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | December 31, | |||
| 2013 | 2014 | 2013 | 2014 | |
| Net income (loss) | 3,268 | 17,643 | 1,393 | 35,364 |
| Adjustments: | ||||
| Share-based compensation expense | 2,332 | 4,840 | 6,876 | 14,778 |
| Amortization of acquisition-related intangible assets | 350 | 840 | 350 | 2,942 |
| Acquisition-related deferred price consideration | 1,261 | 97 | 2,363 | 716 |
| Tax impact of the above adjustments | -73 | -31 | -73 | -379 |
| Total net adjustments | 3,870 | 5,746 | 9,516 | 18,057 |
| Adjusted net income (loss) | 7,138 | 23,389 | 10,909 | 53,421 |
| CRITEO S.A. | ||||||
| Constant Currency Reconciliation | ||||||
| (Euros in thousands) | ||||||
| (unaudited) | ||||||
| Three Months Ended | Twelve Months Ended | |||||
| December 31, | December 31, | |||||
| 2013 | 2014 | Year-over-year growth |
2013 | 2014 | Year-over-year growth |
|
| Revenue as reported | 135,889 | 232,796 | 71.3% | 443,960 | 745,081 | 67.8% |
| Conversion impact euro/other currencies | -- | -2,700 | -- | 10,906 | ||
| Revenue at constant currency | 135,889 | 230,096 | 69.3% | 443,960 | 755,987 | 70.3% |
| Traffic acquisition costs as reported | 81,034 | 136,493 | 68.4% | 264,952 | 441,427 | 66.6% |
| Conversion impact euro/other currencies | -- | -1,526 | -- | 7,053 | ||
| Traffic acquisition costs at constant currency | 81,034 | 134,967 | 66.6% | 264,952 | 448,480 | 69.3% |
| Revenue ex-TAC as reported | 54,855 | 96,303 | 75.6% | 179,008 | 303,654 | 69.6% |
| Conversion impact euro/other currencies | -- | -1,173 | -- | 3,853 | ||
| Revenue ex-TAC at constant currency | 54,855 | 95,130 | 73.4% | 179,008 | 307,507 | 71.8% |
| Revenue ex-TAC / Revenue as reported | 40.4% | 41.4% | 40.3% | 40.8% | ||
| Other cost of revenue as reported | 6,335 | 11,054 | 74.5% | 21,956 | 36,150 | 64.6% |
| Conversion impact euro/other currencies | -- | -374 | -- | 268 | ||
| Other cost of revenue at constant currency | 6,335 | 10,680 | 68.6% | 21,956 | 36,418 | 65.9% |
| Adjusted EBITDA | 14,504 | 31,854 | 119.6% | 31,313 | 79,427 | 153.7% |
| Conversion impact euro/other currencies | -- | 165 | 603 | |||
| Adjusted EBITDA at constant currency | 14,504 | 32,019 | 120.8% | 31,313 | 80,030 | 155.6% |
| CRITEO S.A. | ||
| Information on share count | ||
| (unaudited) | ||
| At December 31, | ||
| 2013 | 2014 | |
| Shares outstanding as at January 1, | 47,123,017 | 56,856,070 |
| Weighted average number of shares issued during the period | 1,569,131 | 2,072,493 |
| Basic number of shares - Basic EPS basis | 48,692,148 | 58,928,563 |
| Dilutive effect of share options, warrants, employee warrants - Treasury method | 6,482,616 | 3,717,153 |
| Diluted number of shares - Diluted EPS basis | 55,174,764 | 62,645,716 |
| Shares outstanding as at December 31, | 56,856,070 | 60,902,695 |
| Total dilutive effect of share options, warrants, employee warrants | 9,060,459 | 7,555,249 |
| Fully diluted shares as at December 31, | 65,916,529 | 68,457,944 |
| CRITEO S.A. | ||||||||||
| Supplemental Financial Information and Operating Metrics | ||||||||||
| (unaudited) | ||||||||||
| Q1 2013 |
Q2 2013 |
Q3 2013 |
Q4 2013 |
Q1 2014 |
Q2 2014 |
Q3 2014 |
Q4 2014 |
YoY Change |
QoQ Change | |
| Clients | 3,811 | 4,274 | 4,631 | 5,072 | 5,567 | 6,131 | 6,581 | 7,190 | 41.8% | 9.3% |
| Revenue ('000 euros) | 94,862 | 99,400 | 113,811 | 135,889 | 152,520 | 165,317 | 194,449 | 232,796 | 71.3% | 19.7% |
| Americas | 25,025 | 28,846 | 30,473 | 38,660 | 37,630 | 46,942 | 58,602 | 85,598 | 121.4% | 46.1% |
| EMEA | 54,434 | 53,348 | 59,732 | 70,291 | 83,853 | 84,187 | 93,885 | 104,480 | 48.6% | 11.3% |
| APAC | 15,403 | 17,206 | 23,606 | 26,937 | 31,037 | 34,187 | 41,962 | 42,718 | 58.6% | 1.8% |
| Revenue ex-TAC ('000 euros) | 37,306 | 40,032 | 46,815 | 54,855 | 62,733 | 67,022 | 77,596 | 96,303 | 75.6% | 24.1% |
| Americas | 9,570 | 11,124 | 11,896 | 15,108 | 14,725 | 18,600 | 23,106 | 33,432 | 121.3% | 44.7% |
| EMEA | 21,163 | 21,807 | 25,358 | 29,057 | 35,320 | 35,101 | 38,666 | 46,030 | 58.4% | 19.0% |
| APAC | 6,573 | 7,101 | 9,561 | 10,690 | 12,688 | 13,321 | 15,824 | 16,841 | 57.5% | 6.4% |
| Cash flow from operating activities ('000 euros) | 4,585 | 4,134 | 3,731 | 12,255 | 11,437 | 11,162 | 25,481 | 39,555 | 222.8% | 55.2% |
| Capital expenditures ('000 euros) | 2,489 | 6,590 | 5,737 | 7,187 | 3,781 | 10,459 | 11,156 | 9,993 | 39.0% | -10.4% |
| Net Cash Position ('000 euros) | 43,876 | 47,893 | 39,839 | 234,343 | 241,785 | 242,895 | 256,719 | 289,748 | 23.6% | 12.9% |
| Days Sales Outstanding (days - end of month) | 58.1 | 56.7 | 55.6 | 53.5 | 53.8 | 57.1 | 56.6 | 54.7 | 2.3% | -3.4% |
CONTACT:
Criteo Investor Relations
Edouard Lassalle, Head of IR
e.lassalle@criteo.com
Friederike Edelmann, Senior IR Manager
f.edelmann@criteo.com
Criteo Public Relations
Emma Ferns, Global PR director
e.ferns@criteo.com
