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Criteo Reports Record Results For The Fourth Quarter And Fiscal Year 2015

NEW YORK, Feb. 10, 2016 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO), the performance marketing technology company, today announced financial results for the fourth quarter and fiscal year ended December 31, 20151.

  • Revenue for the fourth quarter 2015 increased 55% year-over-year (or 46% at constant currency2) to €362 million.
    Revenue for fiscal year 2015 increased 60% year-over-year (or 50% at constant currency) to €1,193 million.
  • Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, for the fourth quarter 2015 grew 51% year-over-year (or 43% at constant currency) to €146 million, or 40.3% of revenue.
    Revenue ex-TAC for fiscal year 2015 grew 59% year-over-year (or 49% at constant currency) to €482 million, or 40.4% of revenue.
  • Net income for the fourth quarter 2015 increased 101% year-over-year to €35 million.
    Net income for fiscal year 2015 increased 60% year-over-year to €57 million.
  • Adjusted EBITDA for the fourth quarter 2015 increased 53% year-over-year (or 49% at constant currency) to €49 million, or 13.5% of revenue.
    Adjusted EBITDA for fiscal year 2015 increased 64% year-over-year (or 59% at constant currency) to €130 million, or 10.9% of revenue.
  • Adjusted net income per diluted share for the fourth quarter 2015 was €0.66.
    Adjusted net income per diluted share for the fiscal year 2015 was €1.26.
  • Free cash flow for the fourth quarter 2015 increased 45% year-over-year to €43 million.
    Free cash flow for fiscal year 2015 increased 8% year-over-year to €57 million.

"2015 was another terrific year for us. We crossed the 10,000 client and €1 billion revenue marks while continuing to invest significantly in innovation," said Eric Eichmann, CEO. "I am thrilled to take the helm at such an exciting time and look forward to our 2016 initiatives."

"I am very pleased with our growing profitability and strong free cash flow generation in 2015," said Benoit Fouilland, Chief Financial Officer. "Our unique financial model continues to be a key differentiator in our space."

1 We are providing amounts in this release in euros and in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board ("IFRS") for the fourth quarter and fiscal year 2015 due to the fact that we previously provided guidance for such periods in euros and in accordance with IFRS. Please refer to appendices for financial measures in U.S. dollars ("USD") and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). As explained below in the "Business Outlook" section, from the first quarter 2016 onward, we will be presenting our results in USD and in accordance with U.S. GAAP. For the year ended December 31, 2015, we expect to file our annual report on form 10-K on February 29th, 2016, which will include our consolidated financial statements for the three years ended December 31, prepared in accordance with U.S. GAAP and presented in USD. For more information, see "Business Outlook" and "Non-IFRS/non-GAAP Measures" herein. For the convenience of the reader, please see the full reconciliation of our consolidated financial statements in euros, in accordance with IFRS, to our consolidated financial statements in USD, in accordance with U.S. GAAP, for the fourth quarter and fiscal year 2015 and the corresponding periods in the prior year, included at the end of this release.

2 Growth at constant currency excludes the impact of foreign currency fluctuations and is computed by applying the 2014 average exchange rates for the relevant period to 2015 figures.

 

Operating Highlights

  • We added over 900 net clients in Q4 2015, while maintaining client retention at over 90%.
  • Over 47% of our Revenue ex-TAC was generated from mobile ads during the month of December 2015.
  • Our Q4 2014 clients generated 20% more Revenue ex-TAC at constant currency in Q4 2015, demonstrating our ability to drive revenue expansion within our customer base.
  • More than 3,000 of our clients were live on Facebook mobile via our integration with dynamic product ads as of December 31, 2015.
  • In Q4 2015, we generated 25% of our Revenue ex-TAC from users that were matched on at least two devices, illustrating the continued deployment of our cross-device solution to our clients.

Revenue ex-TAC

Revenue ex-TAC for the fourth quarter 2015 grew 51%, or 43% at constant currency, to €146 million, compared with €96 million in the fourth quarter 2014. This increase was primarily driven by the continued roll-out of our technology improvements across all devices including mobile, the addition of a record number of new clients and the expansion of our direct relationships with publishers.

Revenue ex-TAC for fiscal year 2015 grew 59%, or 49% at constant currency, to €482 million, compared with €304 million in fiscal year 2014.

  • In the Americas region, Revenue ex-TAC for the fourth quarter 2015 grew by 78% year-over-year, or 61% at constant currency, to €60 million and represented 41% of total Revenue ex-TAC.
    Americas Revenue ex-TAC for fiscal year 2015 grew by 98% compared to 2014, or 73% at constant currency, to €178 million and accounted for 37% of total Revenue ex-TAC.
  • In the EMEA region, Revenue ex-TAC in the fourth quarter 2015 grew by 23% year-over-year, or 22% at constant currency, to €57 million and represented 39% of total Revenue ex-TAC.
    EMEA Revenue ex-TAC for fiscal year 2015 increased by 32% compared to 2014, or 31% at constant currency, to €205 million and accounted for 43% of total Revenue ex-TAC.
  • In the Asia-Pacific region, Revenue ex-TAC in the fourth quarter 2015 grew by 76% year-over-year, or 62% at constant currency, to €30 million and represented 20% of total Revenue ex-TAC.
    Asia-Pacific Revenue ex-TAC for fiscal year 2015 grew by 68% compared to 2014, or 57% at constant currency, to €99 million and accounted for 21% of total Revenue ex-TAC.

Revenue ex-TAC margin as a percentage of revenue for the fourth quarter 2015 was 40.3%, in line with prior quarters.

Revenue ex-TAC margin as a percentage of revenue for fiscal year 2015 was 40.4%, in line with prior years.

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA for the fourth quarter 2015 was €49 million, an increase of 53%, or 49% at constant currency, compared with €32 million for the fourth quarter 2014. This increase in Adjusted EBITDA is primarily the result of the strong Revenue ex-TAC performance in the quarter. We incurred slightly higher than anticipated expenses, primarily as a result of the negative impact of changes in foreign currency exchange rates and variable costs.

Adjusted EBITDA for fiscal year 2015 was €130 million, an increase of 64%, or 59% at constant currency, compared with €79 million for fiscal year 2014.

Adjusted EBITDA margin as a percentage of revenue for the fourth quarter was 13.5% compared with 13.7% in the fourth quarter 2014.

Adjusted EBITDA margin as a percentage of revenue for fiscal year 2015 was 10.9%, a 0.2 percentage point improvement compared with 10.7% for fiscal year 2014. Excluding the impact of investments in search marketing in 2015, Adjusted EBITDA margin as a percentage of revenue for fiscal year 2015 was 12.1%, a 1.4 percentage point improvement compared with fiscal year 2014.

Operating expenses for the fourth quarter 2015 increased by 50% to €99 million compared with the fourth quarter 2014. Operating expenses for the fourth quarter 2015, excluding the impact of share-based compensation expense, pension costs, depreciation and amortization and acquisition-related deferred price consideration, which we refer to as Non-IFRS Operating Expenses, were €89 million, an increase of 52% compared with the fourth quarter 2014. This increase is primarily related to year-over-year headcount growth in Research & Development (60%) and Sales & Operations (35%), as we continued to scale our organization.

Operating expenses for fiscal year 2015 were €356 million, an increase of 57% compared with fiscal year 2014. On a Non-IFRS basis, our operating expenses for fiscal year 2015 were €322 million, an increase of 58% compared with fiscal year 2014. Non-IFRS operating expenses as a percentage of revenue for fiscal year 2015 were 27.0%, a decrease of 0.4 percentage points compared with fiscal year 2014, driven by the decrease in our Sales & Operations and General & Administrative expenses, by 0.3 percentage points and 0.5 percentage points respectively. Excluding the impact of investments in search marketing in 2015, Non-IFRS operating expenses as a percentage of revenue were 25.7% for fiscal year 2015, a decrease of 1.7 percentage points compared with fiscal year 2014.

Net Income and Adjusted Net Income

Net income for the fourth quarter 2015 was €35 million, an increase of 101% compared with €18 million for the fourth quarter 2014. Net income available to shareholders of Criteo S.A. for the fourth quarter 2015 was €35 million, or €0.53 per share on a diluted basis, compared with €17 million, or €0.27 per share on a diluted basis, for the fourth quarter 2014.

Net income for fiscal year 2015 was €57 million, an increase of 60% compared with €35 million for fiscal year 2014. Net income available to shareholders of Criteo S.A. for fiscal year 2015 was €54 million, or €0.84 per diluted share, compared with €34 million, or €0.55 per diluted share, for fiscal year 2014.

Adjusted Net Income, or 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, for the fourth quarter 2015 was €43 million, or €0.66 per share on a diluted basis, an increase of 83% compared with €23 million, or €0.37 per share on a diluted basis, for the fourth quarter 2014.

Adjusted Net Income for fiscal year 2015 was €82 million, or €1.26 per share on a diluted basis, an increase of 53% compared with €53 million, or €0.86 per share on a diluted basis, for fiscal year 2014.

Cash Flow and Cash Position

Cash flow from operating activities for the fourth quarter 2015 increased 53% to €60 million, compared with €40 million for the fourth quarter 2014.

Cash flow from operating activities for fiscal year 2015 increased 41% to €124 million, compared with €88 million for fiscal year 2014.

Free cash flow, defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and net of proceeds from disposal, increased 45% to €43 million for the fourth quarter 2015, compared with €30 million for the fourth quarter 2014.

Free cash flow for fiscal year 2015 increased 8% to €57 million, compared with €52 million for fiscal year 2014.

Total cash and cash equivalents were €325 million as of December 31, 2015, an increase of €35 million compared to December 31, 2014.

Business Outlook

As of January 1, 2016, we began reporting as a U.S. domestic registrant under the Securities Exchange Act of 1934. As a result, we are required under U.S. Securities and Exchange Commission ("SEC") rules to prepare our financial statements in accordance with U.S. GAAP, rather than IFRS, and to present our financial information in U.S. dollars instead of euros. Our first Annual Report on Form 10-K will present our results for 2013, 2014 and 2015 in U.S. dollars and in accordance with U.S. GAAP. In addition, from the first quarter 2016 onward, we will be presenting our results in U.S. dollars and in accordance with U.S. GAAP. Accordingly, the outlook for the first quarter and fiscal year 2016 is no longer provided in euros and in accordance with IFRS but rather provided in U.S. dollars and in accordance with U.S. GAAP.

The following forward-looking statements reflect Criteo's expectations as of February 10, 2016.

First Quarter 2016 Guidance:

  • We expect Revenue ex-TAC for the first quarter 2016 to be between $153 million and $158 million (or between €139 million and €144 million).
  • We expect Adjusted EBITDA for the first quarter 2016 to be between $36 million and $41 million (or between €33 million and €37 million).

Fiscal Year 2016 Guidance:

  • We expect Revenue ex-TAC growth for fiscal year 2016 to be between 30% and 34% at constant currency.
  • We expect our Adjusted EBITDA margin as a percentage of revenue for fiscal year 2016 to increase between 60 basis points and 100 basis points compared to fiscal year 2015.

The above guidance assumes no additional acquisitions are completed during the first quarter ending March 31, 2016 and the fiscal year ending December 31, 2016.

Non-IFRS/non-GAAP Financial Measures

This press release and its attachments include the following financial measures defined as non-IFRS/non-GAAP financial measures by the SEC: Revenue ex-TAC, Revenue ex-TAC by Region, Revenue ex-TAC margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per diluted share, Free Cash Flow, and Non-IFRS/Non-GAAP Operating Expenses. These measures are not calculated in accordance with IFRS or 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 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 and Revenue ex-TAC by Region 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 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 by eliminating non-cash compensation expense, pension costs and acquisition-related deferred price consideration, Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA 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.

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 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 by eliminating share-based compensation expense, amortization of acquisition-related intangible assets and acquisition-related deferred price consideration and the tax impact of these adjustments, 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.

Free cash flow is defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and net of proceeds from disposal. Free cash flow is a key measure used by our management and board of directors to evaluate the Company's ability to generate cash. Accordingly, we believe that Free Cash Flow permits a more complete and comprehensive analysis of our available cash flows.

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, Adjusted EBITDA to net income, Adjusted Net Income to net income and Free Cash Flow to cash flow from operating activities, in each case, the most comparable IFRS and U.S. GAAP measurement. Our use of non-IFRS/non-GAAP 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 IFRS or 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, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow 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 IFRS and U.S. GAAP financial results, including revenue and net income.

With respect to our expectations under "Business Outlook" above, 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 stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future U.S. GAAP financial results.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including projected financial results for the quarter ending March 31, 2016 and the fiscal year ending December 31, 2016, 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 Annual Report on Form 20-F filed with the SEC on March 27, 2015, as well as future filings and reports by the Company. 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 earnings conference call will take place today, February 10, 2016, at 8:00am ET, 2:00pm CET. The conference call will be webcast live on the Company's website http://ir.criteo.com and will be available for replay.

Conference call details:

  • U.S. callers: +1 877 870 4263
  • International callers: +1 412 317 0790 or +33 1 76 74 05 02

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

As the Company will report for the first time its financial statements presented in U.S. dollars and in accordance with U.S. GAAP, Criteo will host a separate conference call today, February 10, 2016, at 9:15am ET, 3:15pm CET. The purpose of this second call will be to discuss the conversion of its financial statements presented in euros and in accordance with IFRS into financial statements presented in U.S. dollars and in accordance with U.S. GAAP. The conference call will be webcast live on the Company's website http://ir.criteo.com and will be available for replay.

Conference call details:

  • U.S. callers: +1 877 870 4263,
  • International callers: +1 412 317 0790 or +33 1 76 74 05 02 

Please ask to be joined into the  "Criteo U.S. GAAP Transition call".

About Criteo

Criteo (NASDAQ: CRTO) delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to measure. As of December 31, 2015, Criteo has over 1,800 employees in 27 offices across the Americas, EMEA and Asia-Pacific, serving over 10,000 advertisers worldwide and with direct relationships with close to 14,000 publishers. For more information, please visit www.criteo.com.

Financial information to follow

 

 

CRITEO S.A.

IFRS Consolidated Statement of Income

(Euros in thousands, except per share data)

(unaudited)

 
   

Three Months Ended

     

Twelve Months Ended

   
   

December 31,

     

December 31,

   
   

2014

 

2015

 

YoY Change

 

2014

 

2015

 

YoY Change

Revenue

 

232,796

   

361,732

   

55.4

%

 

745,081

   

1,193,414

   

60.2

%

                         

Cost of revenue:

                       

Traffic acquisition costs

 

(136,493)

   

(215,980)

   

58.2

%

 

(441,427)

   

(711,755)

   

61.2

%

Other cost of revenue

 

(11,054)

   

(16,213)

   

46.7

%

 

(36,150)

   

(56,100)

   

55.2

%

                         

Gross Profit

 

85,249

   

129,539

   

52.0

%

 

267,504

   

425,559

   

59.1

%

                         

Research and development expenses

 

(12,191)

   

(24,215)

   

98.6

%

 

(45,293)

   

(78,313)

   

72.9

%

Sales and operations expenses

 

(39,668)

   

(54,953)

   

38.5

%

 

(133,393)

   

(206,325)

   

54.7

%

General and administrative expenses

 

(13,698)

   

(19,386)

   

41.5

%

 

(48,788)

   

(71,386)

   

46.3

%

    Total operating expenses

 

(65,557)

   

(98,554)

   

50.3

%

 

(227,474)

   

(356,024)

   

56.5

%

                         

Income from operations

 

19,692

   

30,985

   

57.3

%

 

40,030

   

69,535

   

73.7

%

Financial income (expense)

 

1,264

   

644

   

(49.1)%

   

8,587

   

(4,094)

   

(147.7)%

 

Income before taxes

 

20,956

   

31,629

   

50.9

%

 

48,617

   

65,441

   

34.6

%

Provision for income taxes

 

(3,313)

   

3,861

   

(216.5)%

   

(13,253)

   

(8,689)

   

(34.4)%

 

Net income

 

17,643

   

35,490

   

101.2

%

 

35,364

   

56,752

   

60.5

%

 - Net income available to shareholders of Criteo S.A.

 

17,256

   

34,580

       

34,354

   

54,296

     

 - Net income available to non-controlling Interests

 

387

   

910

       

1,010

   

2,456

     
                         

Weighted average shares outstanding

                       

   - Basic

 

60,519,987

   

62,348,620

       

58,928,563

   

61,835,499

     

   - Diluted

 

63,854,664

   

65,092,423

       

62,065,699

   

64,775,108

     
                         

Net income allocated to shareholders per share

                       

   - Basic

 

0.29

   

0.55

       

0.58

   

0.88

     

   - Diluted

 

0.27

   

0.53

       

0.55

   

0.84

     

 

 

CRITEO S.A.

IFRS Consolidated Statement of Financial Position

(Euros in thousands)

(unaudited)

 
   

December 31,

 

December 31,

   

2014

 

2015

Goodwill

 

22,944

   

38,553

 

Intangible assets

 

10,560

   

15,126

 

Property, plant and equipment

 

43,027

   

75,762

 

Non-current financial assets

 

9,494

   

15,784

 

Deferred tax assets

 

7,113

   

18,432

 

TOTAL NON-CURRENT ASSETS

 

93,138

   

163,657

 

Trade receivables

 

158,633

   

240,264

 

Current tax assets

 

2,883

   

2,500

 

Other current assets

 

21,021

   

41,944

 

Cash and cash equivalents

 

289,784

   

324,733

 

TOTAL CURRENT ASSETS

 

472,321

   

609,441

 

TOTAL ASSETS

 

565,459

   

773,098

 
         

Share capital

 

1,523

   

1,562

 

Additional paid-in capital

 

265,522

   

277,901

 

Currency translation adjustment

 

4,804

   

11,598

 

Consolidated reserves

 

35,302

   

90,997

 

Retained earnings

 

34,354

   

54,296

 

Equity - attributable to shareholders of Criteo S.A.

 

341,505

   

436,354

 

Non-controlling interests

 

1,433

   

4,315

 

TOTAL EQUITY

 

342,938

   

440,669

 

Financial liabilities - non-current portion

 

4,333

   

3,005

 

Retirement benefit obligation

 

1,024

   

1,327

 

Deferred tax liabilities

 

946

   

132

 

TOTAL NON-CURRENT LIABILITIES

 

6,303

   

4,464

 

Financial liabilities - current portion

 

7,841

   

6,573

 

Provisions

 

1,131

   

614

 

Trade payables

 

135,557

   

226,304

 

Current tax liabilities

 

7,969

   

14,113

 

Other current liabilities

 

63,720

   

80,361

 

TOTAL CURRENT LIABILITIES

 

216,218

   

327,965

 

TOTAL LIABILITIES

 

222,521

   

332,429

 

TOTAL EQUITY AND LIABILITIES

 

565,459

   

773,098

 

 

CRITEO S.A.

IFRS Consolidated Statement of Cash Flows

(Euros in thousands)

(unaudited)

 
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2014

 

2015

 

2014

 

2015

Net income

 

17,643

   

35,490

   

35,364

   

56,752

 

Non-cash and non-operating items

 

16,379

   

14,489

   

53,931

   

70,867

 

                 - Amortization and provisions

 

7,662

   

13,335

   

25,146

   

42,469

 

                 - Share-based payment expense

 

4,840

   

7,047

   

14,778

   

21,642

 

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

 

110

   

(1,994)

   

106

   

(1,918)

 

                 - Interest paid

 

5

   

(3)

   

17

   

5

 

                 - Non-cash financial income and expenses

 

449

   

5

   

632

   

20

 

                 - Change in deferred taxes

 

(4,573)

   

(11,343)

   

(4,007)

   

(14,098)

 

                 - Income tax for the period

 

7,886

   

7,442

   

17,260

   

22,747

 

Changes in working capital related to operating activities

 

12,252

   

15,543

   

3,516

   

13,022

 

                 - (Increase)/decrease in trade receivables

 

(26,812)

   

(50,604)

   

(63,064)

   

(75,247)

 

                 - Increase/(decrease) in trade payables

 

28,678

   

54,735

   

53,195

   

90,233

 

                 - (Increase)/decrease in other current assets

 

565

   

412

   

(6,021)

   

(21,737)

 

                 - Increase/(decrease) in other current liabilities

 

9,821

   

11,000

   

19,406

   

19,773

 

Income taxes paid

 

(6,684)

   

(5,074)

   

(5,142)

   

(16,960)

 

CASH FROM OPERATING ACTIVITIES

 

39,590

   

60,448

   

87,670

   

123,681

 

Acquisition of intangible assets, property, plant and equipment

 

(9,993)

   

(17,580)

   

(35,389)

   

(67,090)

 

Proceeds from disposal of intangible assets, property, plant and equipment

 

(10)

   

8

   

40

   

9

 

FREE CASH FLOW

 

29,587

   

42,876

   

52,321

   

56,600

 

Investments

 

   

   

(18,775)

   

(18,009)

 

Change in other non-current financial assets

 

(521)

   

(314)

   

(1,728)

   

(5,964)

 

CASH USED FOR INVESTING ACTIVITIES

 

(10,524)

   

(17,886)

   

(55,852)

   

(91,054)

 

Issuance of long-term borrowings

 

1,189

   

723

   

4,243

   

3,582

 

Repayment of borrowings

 

(1,196)

   

(2,521)

   

(4,902)

   

(8,101)

 

Interests paid

 

(5)

   

(19)

   

(17)

   

42

 

Proceeds from capital increase

 

3,730

   

3,416

   

23,854

   

12,417

 

Change in other financial liabilities

 

48

   

   

205

   

(906)

 

CASH FROM FINANCING ACTIVITIES

 

3,766

   

1,599

   

23,383

   

7,034

 
                 

CHANGE IN NET CASH AND CASH EQUIVALENTS

 

32,832

   

44,161

   

55,200

   

39,661

 

Net cash and cash equivalents at beginning of period

 

256,719

   

280,857

   

234,342

   

289,784

 

Effect of exchange rates changes on cash and cash equivalents

 

233

   

(285)

   

242

   

(4,712)

 

Net cash and cash equivalents at end of period

 

289,784

   

324,733

   

289,784

   

324,733

 

 

 

CRITEO S.A.

IFRS 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

 

2014

 

2015

 

YoY Change

 

YoY Change at Constant Currency (*)

   

Region

 

2014

 

2015

 

YoY Change

 

YoY Change at Constant Currency (*)

Revenue

                 

Revenue

               
 

Americas

 

85,598

   

154,761

   

81

%

 

63

%

   

Americas

 

228,773

   

456,049

   

99

%

 

74

%

 

EMEA

 

104,480

   

132,268

   

27

%

 

25

%

   

EMEA

 

366,404

   

488,071

   

33

%

 

32

%

 

Asia-Pacific

 

42,718

   

74,703

   

75

%

 

62

%

   

Asia-Pacific

 

149,904

   

249,294

   

66

%

 

56

%

 

Total

 

232,796

   

361,732

   

55

%

 

46

%

   

Total

 

745,081

   

1,193,414

   

60

%

 

50

%

                                         

Traffic acquisition costs

     

Traffic acquisition costs

   
 

Americas

 

(52,167)

   

(95,183)

   

82

%

 

64

%

   

Americas

 

(138,910)

   

(278,170)

   

100

%

 

75

%

 

EMEA

 

(58,449)

   

(75,687)

   

29

%

 

28

%

   

EMEA

 

(211,287)

   

(283,151)

   

34

%

 

33

%

 

Asia-Pacific

 

(25,877)

   

(45,110)

   

74

%

 

62

%

   

Asia-Pacific

 

(91,230)

   

(150,434)

   

65

%

 

55

%

 

Total

 

(136,493)

   

(215,980)

   

58

%

 

48

%

   

Total

 

(441,427)

   

(711,755)

   

61

%

 

51

%

                                         

Revenue ex-TAC

             

Revenue ex-TAC

       
 

Americas

 

33,432

   

59,578

   

78

%

 

61

%

   

Americas

 

89,863

   

177,879

   

98

%

 

73

%

 

EMEA

 

46,030

   

56,581

   

23

%

 

22

%

   

EMEA

 

155,117

   

204,920

   

32

%

 

31

%

 

Asia-Pacific

 

16,841

   

29,593

   

76

%

 

62

%

   

Asia-Pacific

 

58,674

   

98,860

   

68

%

 

57

%

 

Total

 

96,303

   

145,752

   

51

%

 

43

%

   

Total

 

303,654

   

481,659

   

59

%

 

49

%

 

(*) Due to entries into the consolidation scope during the year ended December 31, 2015 and U.S. GAAP conversion adjustments, there are slight variances between the year-over-year change at constant currency as determined under IFRS and presented in euros and the year-over-year change at constant currency as determined under U.S. GAAP and presented in U.S dollars.

 

 

CRITEO S.A.

IFRS Reconciliation of Adjusted EBITDA to Net Income

(Euros in thousands)

(unaudited)

 
 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2014

 

2015

 

2014

 

2015

Net income

17,643

   

35,490

   

35,364

   

56,752

 

Adjustments:

             

Financial (income) expense

(1,264)

   

(644)

   

(8,587)

   

4,094

 

Provision (benefit) for income taxes

3,313

   

(3,861)

   

13,253

   

8,689

 

Share-based compensation expense

4,840

   

7,047

   

14,778

   

21,642

 

    Research and development

700

   

1,969

   

2,776

   

5,884

 

    Sales and operations

2,814

   

3,281

   

9,267

   

10,534

 

    General and administrative

1,326

   

1,797

   

2,735

   

5,224

 

Service cost-pension

94

   

100

   

371

   

398

 

    Research and development

31

   

37

   

126

   

147

 

    Sales and operations

36

   

35

   

141

   

138

 

    General and administrative

27

   

28

   

104

   

113

 

Depreciation and amortization expense

7,131

   

12,715

   

23,532

   

40,197

 

    Cost of revenue

5,008

   

7,822

   

16,176

   

26,936

 

    Research and development

1,009

   

2,886

   

3,731

   

7,214

 

    Sales and operations

854

   

1,587

   

2,762

   

4,670

 

    General and administrative

260

   

420

   

863

   

1,377

 

Acquisition-related deferred price consideration

97

   

(1,958)

   

716

   

(1,708)

 

    Research and development

97

   

42

   

716

   

292

 

    Sales and operations

   

   

   

 

    General and administrative

   

(2,000)

   

   

(2,000)

 

Total net adjustments

14,211

   

13,399

   

44,063

   

73,312

 

Adjusted EBITDA

31,854

   

48,889

   

79,427

   

130,064

 

 

 

CRITEO S.A.

IFRS Detailed Information on Selected Items

(Euros in thousands)

(unaudited)

 
 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2014

 

2015

 

2014

 

2015

Share-Based Compensation Expense

             

Research and development

700

   

1,969

   

2,776

   

5,884

 

Sales and operations

2,814

   

3,281

   

9,267

   

10,534

 

General and administrative

1,326

   

1,797

   

2,735

   

5,224

 

    Total Share-Based Compensation Expense

4,840

   

7,047

   

14,778

   

21,642

 
               

Service cost-pension

             

Research and development

31

   

37

   

126

   

147

 

Sales and operations

36

   

35

   

141

   

138

 

General and administrative

27

   

28

   

104

   

113

 

    Total Service cost-pension

94

   

100

   

371

   

398

 
               

Depreciation and Amortization Expense

             

Cost of revenue

5,008

   

7,822

   

16,176

   

26,936

 

Research and development

1,009

   

2,886

   

3,731

   

7,214

 

Sales and operations

854

   

1,587

   

2,762

   

4,670

 

General and administrative

260

   

420

   

863

   

1,377

 

    Total Depreciation and Amortization Expense

7,131

   

12,715

   

23,532

   

40,197

 
               

Acquisition-Related Deferred Price Consideration

             

Research and development

97

   

42

   

716

   

292

 

Sales and operations

   

   

   

 

General and administrative

   

(2,000)

   

   

(2,000)

 

    Total Acquisition-Related Deferred Price Consideration

97

   

(1,958)

   

716

   

(1,708)

 

 

 

CRITEO S.A.

IFRS Reconciliation of Adjusted Net Income to Net Income

(Euros in thousands)

(unaudited)

 
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2014

 

2015

 

2014

 

2015

                 

Net income

 

17,643

   

35,490

   

35,364

   

56,752

 

Adjustments:

               

Share-based compensation expense

 

4,840

   

7,047

   

14,778

   

21,642

 

Amortization of acquisition-related intangible assets

 

840

   

2,313

   

2,942

   

5,720

 

Acquisition-related deferred price consideration

 

97

   

(1,958)

   

716

   

(1,708)

 

Tax impact of the above adjustments

 

(31)

   

(46)

   

(379)

   

(792)

 

Total net adjustments

 

5,746

   

7,356

   

18,057

   

24,862

 

Adjusted net income

 

23,389

   

42,846

   

53,421

   

81,614

 
                 

Weighted average shares outstanding

               

   - Basic

 

60,519,987

   

62,348,620

   

58,928,563

   

61,835,499

 

   - Diluted

 

63,854,664

   

65,092,423

   

62,065,699

   

64,775,108

 

Adjusted net income per share

               
                 

   - Basic

 

0.39

   

0.69

   

0.91

   

1.32

 

   - Diluted

 

0.37

   

0.66

   

0.86

   

1.26

 

 

CRITEO S.A.

 

IFRS Constant Currency Reconciliation
(Euros in thousands)
(unaudited)
 
 
Three Months Ended
 
 
 
Twelve Months Ended
 
 
 
 
 
December 31,
 
 
 
December 31,
 
 
 
 
 
2014
 
 
2015
 
 
YoY
Change
 
 
2014
 
 
2015
 
 
YoY
Change
 
Revenue as reported
 
 
232,796
 
 
€ 
361,732
 
 
55
%
 
€ 
745,081
 
 
€ 
1,193,414
 
 
60
%
Conversion impact euro/other currencies
 
 
 
(22,121
)
 
 
 
 
 
(78,041
)
 
 
Revenue at constant currency (*)
 
232,796
 
 
339,611
 
 
46
%
 
745,081
 
 
1,115,373
 
 
50
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Traffic acquisition costs as reported
 
(136,493
)
 
(215,980
)
 
58
%
 
(441,427
)
 
(711,755
)
 
61
%
Conversion impact euro/other currencies
 
 
 
13,698
 
 
 
 
 
 
47,344
 
 
 
Traffic acquisition costs at constant currency (*)
 
(136,493
)
 
(202,282
)
 
48
%
 
(441,427
)
 
(664,411
)
 
51
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue ex-TAC as reported
 
96,303
 
 
145,752
 
 
51
%
 
303,654
 
 
481,659
 
 
59
%
Conversion impact euro/other currencies
 
 
 
(8,422
)
 
 
 
 
 
(30,697
)
 
 
Revenue ex-TAC at constant currency (*)
 
96,303
 
 
137,330
 
 
43
%
 
303,654
 
 
450,962
 
 
49
%
Revenue ex-TAC/Revenue as reported
 
41.4
%
 
40.3
%
 
 
 
40.8
%
 
40.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other cost of revenue as reported
 
(11,054
)
 
(16,213
)
 
47
%
 
(36,150
)
 
(56,100
)
 
55
%
Conversion impact euro/other currencies
 
 
 
1,423
 
 
 
 
 
 
5,639
 
 
 
Other cost of revenue at constant currency (*)
 
(11,054
)
 
(14,790
)
 
34
%
 
(36,150
)
 
(50,461
)
 
40
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
31,854
 
 
48,889
 
 
53
%
 
79,427
 
 
130,064
 
 
64
%
Conversion impact euro/other currencies
 
 
 
(1,481
)
 
 
 
 
 
(3,406
)
 
 
Adjusted EBITDA at constant currency (*)
 
31,854
 
 
47,408
 
 
49
%
 
79,427
 
 
126,658
 
 
59
%

(*) Due to entries into the consolidation scope during the year ended December 31, 2015 and U.S. GAAP conversion adjustments, there are slight variances between the year-over-year change at constant currency as determined under IFRS and presented in euros and the year-over-year change at constant currency as determined under U.S. GAAP and presented in U.S dollars.

 

 

CRITEO S.A.

IFRS Information on Share Count

(unaudited)

 
   

2014

 

2015

Shares outstanding as at January 1,

 

56,856,070

   

60,902,695

 

Weighted average number of shares issued during the period

 

2,072,493

   

932,804

 

Basic number of shares - Basic EPS basis

 

58,928,563

   

61,835,499

 

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

 

3,717,153

   

2,939,609

 

Diluted number of shares - Diluted EPS basis

 

62,645,716

   

64,775,108

 
         

Shares outstanding as at December 31,

 

60,902,695

   

62,470,881

 

Total dilutive effect of share options, warrants, employee warrants

 

7,555,249

   

7,798,348

 

Fully diluted shares as at December 31,

 

68,457,944

   

70,269,229

 

 

CRITEO S.A.

IFRS Supplemental Financial Information and Operating Metrics

(Euros in thousands except where stated)

(unaudited)

 
 

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

Q4

2014

Q1

2015

Q2
2015

Q3
2015

Q4
2015

YoY

Change

QoQ Change

                           

Clients

4,274

 

4,631

 

5,072

 

5,567

 

6,131

 

6,581

 

7,190

 

7,832

 

8,564

 

9,290

 

10,198

 

42

%

10

%

                           

Revenue

99,400

 

113,811

 

135,889

 

152,520

 

165,317

 

194,449

 

232,796

 

261,523

 

270,859

 

299,299

 

361,732

 

55

%

21

%

Americas

28,846

 

30,473

 

38,660

 

37,630

 

46,942

 

58,602

 

85,598

 

89,460

 

100,262

 

111,566

 

154,761

 

81

%

39

%

EMEA

53,348

 

59,732

 

70,291

 

83,853

 

84,187

 

93,885

 

104,480

 

117,532

 

114,824

 

123,445

 

132,268

 

27

%

7

%

APAC

17,206

 

23,606

 

26,937

 

31,037

 

34,187

 

41,962

 

42,718

 

54,531

 

55,773

 

64,288

 

74,703

 

75

%

16

%

                           

Revenue ex-TAC

40,032

 

46,815

 

54,855

 

62,733

 

67,022

 

77,596

 

96,303

 

105,160

 

110,455

 

120,292

 

145,752

 

51

%

21

%

Americas

11,124

 

11,896

 

15,108

 

14,725

 

18,600

 

23,106

 

33,432

 

35,015

 

39,803

 

43,485

 

59,578

 

78

%

37

%

EMEA

21,807

 

25,358

 

29,057

 

35,320

 

35,101

 

38,666

 

46,030

 

48,050

 

48,569

 

51,718

 

56,581

 

23

%

9

%

APAC

7,101

 

9,561

 

10,690

 

12,688

 

13,321

 

15,824

 

16,841

 

22,095

 

22,083

 

25,089

 

29,593

 

76

%

18

%

                           

Cash flow from operating activities

4,134

 

3,731

 

12,255

 

11,437

 

11,162

 

25,481

 

39,555

 

36,421

 

11,045

 

15,768

 

60,448

 

53

%

283

%

Capital expenditures

6,590

 

5,737

 

7,187

 

3,781

 

10,459

 

11,156

 

9,993

 

11,436

 

16,561

 

21,513

 

17,580

 

76

%

(18)%

 

Net cash position

47,893

 

39,839

 

234,343

 

241,786

 

242,895

 

256,719

 

289,784

 

294,057

 

286,986

 

280,857

 

324,733

 

12

%

16

%

Days Sales Outstanding (days - end of month)

56.7

 

55.6

 

53.5

 

53.8

 

57.1

 

56.6

 

54.7

 

56.5

 

55.4

 

55.2

 

53.5

 

(2)%

 

(3)%

 

 

 

 

CRITEO S.A.

U.S. GAAP Consolidated Statement of Financial Position

(U.S. dollars in thousands)

(unaudited)

 
   

December 31,

 

December 31,

   

2014

 

2015

Cash and cash equivalents

 

$

351,827

   

$

353,537

 

Trade receivables, net of allowances

 

192,595

   

261,581

 

Current tax assets

 

3,493

   

2,714

 

Other current assets

 

25,517

   

45,582

 

TOTAL CURRENT ASSETS

 

573,432

   

663,414

 

Property, plant and equipment

 

52,239

   

82,482

 

Intangible assets

 

12,821

   

16,470

 

Goodwill

 

27,856

   

41,973

 

Non-current financial assets

 

11,527

   

17,184

 

Deferred tax assets

 

8,635

   

20,196

 

TOTAL NON-CURRENT ASSETS

 

113,078

   

178,305

 

TOTAL ASSETS

 

686,510

   

$

841,719

 
         

Trade payables

 

164,579

   

246,382

 

Provisions

 

1,373

   

668

 

Current tax liabilities

 

9,676

   

15,365

 

Financial liabilities - current portion

 

9,520

   

7,156

 

Other current liabilities

 

77,362

   

88,269

 

TOTAL CURRENT LIABILITIES

 

262,510

   

357,840

 

Deferred tax liabilities

 

1,142

   

139

 

Retirement benefit obligation

 

1,243

   

1,445

 

Financial liabilities - non-current portion

 

5,260

   

3,272

 

TOTAL NON-CURRENT LIABILITIES

 

7,645

   

4,856

 

TOTAL LIABILITIES

 

270,155

   

362,696

 

Common stock

 

2,008

   

2,052

 

Additional paid-in capital

 

387,972

   

425,220

 

Retained earnings

 

56,680

   

116,278

 

Accumulated other comprehensive income (loss)

 

(32,045)

   

(69,225)

 

Equity - attributable to shareholders of Criteo S.A.

 

414,615

   

474,325

 

Non-controlling interest

 

1,740

   

4,698

 

TOTAL EQUITY

 

416,355

   

479,023

 

TOTAL EQUITY AND LIABILITIES

 

$

686,510

   

$

841,719

 

 

 

CRITEO S.A.

U.S. GAAP Consolidated Statement of Income

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

(unaudited)

 
 

Three Months Ended

     

Twelve Months Ended

   
 

December 31,

     

December 31,

   
 

2014

 

2015

 

YoY Change

 

2014

 

2015

 

YoY Change

Revenue

$

294,489

   

$

397,018

   

34.8

%

 

$

988,249

   

$

1,323,169

   

33.9

%

                       

Cost of revenue

                     

Traffic acquisition costs

(172,538)

   

(237,056)

   

37.4

%

 

(585,492)

   

(789,152)

   

34.8

%

Other cost of revenue

(13,962)

   

(17,782)

   

27.4

%

 

(47,948)

   

(62,201)

   

29.7

%

                       

Gross Profit

107,989

   

142,180

   

31.7

%

 

354,809

   

471,816

   

33.0

%

                       

Research and development expenses

(15,247)

   

(26,665)

   

74.9

%

 

(60,075)

   

(86,807)

   

44.5

%

Sales and operations expenses

(50,002)

   

(60,410)

   

20.8

%

 

(176,927)

   

(229,530)

   

29.7

%

General and administrative expenses

(17,202)

   

(21,280)

   

23.7

%

 

(64,723)

   

(79,145)

   

22.3

%

    Total operating expenses

(82,451)

   

(108,355)

   

31.4

%

 

(301,725)

   

(395,482)

   

31.1

%

                       

Income from operations

25,538

   

33,825

   

32.4

%

 

53,084

   

76,334

   

43.8

%

Financial income (expense)

1,473

   

735

   

(50.1)

%

 

11,390

   

(4,541)

   

(139.9)

%

Income before taxes

27,011

   

34,560

   

27.9

%

 

64,474

   

71,793

   

11.4

%

Provision for income taxes

(4,118)

   

4,378

   

(206.3)

%

 

(17,578)

   

(9,517)

   

(45.9)

%

Net income

$

22,893

   

$

38,938

   

70.1

%

 

$

46,896

   

$

62,276

   

32.8

%

   - Net income available to shareholders of Criteo S.A.

$

22,396

   

$

37,936

       

$

45,556

   

$

59,553

     

   - Net income available to non-controlling interests

$

497

   

$

1,002

       

$

1,340

   

$

2,723

     
                       

Weighted average shares outstanding

                     

   - Basic

60,519,987

   

62,348,620

       

58,928,563

   

61,835,499

     

   - Diluted

63,854,664

   

65,092,423

       

62,493,260

   

65,096,487

     
                       

Net income allocated to shareholders per share

                     

   - Basic

$

0.37

   

$

0.61

       

$

0.77

   

$

0.96

     

   - Diluted

$

0.35

   

$

0.58

       

$

0.73

   

$

0.91

     

 

 

CRITEO S.A.

U.S. GAAP Consolidated Statement of Cash Flows

(U.S. dollars in thousands)

(unaudited)

 
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2014

 

2015

 

2014

 

2015

Net income

 

$

22,893

   

$

38,938

   

$

46,896

   

$

62,275

 

Non-cash and non-operating items

 

20,689

   

15,764

   

71,544

   

78,448

 

                 - Amortization and provisions

 

9,687

   

14,648

   

33,365

   

47,085

 

                 - Share-based payment expense

 

6,142

   

7,748

   

19,600

   

23,989

 

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

 

146

   

(2,212)

   

141

   

(2,127)

 

                 - Interest paid

 

6

   

(3)

   

23

   

6

 

                 - Non-cash financial income and expenses

 

590

   

5

   

838

   

22

 

                 - Change in deferred taxes

 

(6,081)

   

(12,599)

   

(5,315)

   

(15,748)

 

                 - Income tax for the period

 

10,199

   

8,177

   

22,892

   

25,221

 

Changes in working capital related to operating activities

 

16,495

   

17,572

   

4,661

   

15,231

 

                 - (Increase)/decrease in trade receivables

 

(34,551)

   

(55,986)

   

(83,646)

   

(83,420)

 

                 - Increase/(decrease) in trade payables

 

37,354

   

60,529

   

70,557

   

100,047

 

                 - (Increase)/decrease in other current assets

 

934

   

563

   

(7,986)

   

(24,101)

 

                 - Increase/(decrease) in other current liabilities

 

12,759

   

12,466

   

25,736

   

22,705

 

Income taxes paid

 

(8,909)

   

(5,568)

   

(6,820)

   

(18,805)

 

CASH FROM OPERATING ACTIVITIES

 

51,169

   

66,706

   

116,281

   

137,149

 

Acquisition of intangible assets, property, plant and equipment

 

(14,142)

   

(13,086)

   

(48,643)

   

(75,617)

 

Proceeds from disposal of intangible assets, property, plant and equipment

 

(15)

   

150

   

52

   

10

 

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

 

1,596

   

(6,269)

   

1,705

   

1,128

 

FREE CASH FLOW

 

38,608

   

47,501

   

69,395

   

62,670

 

Investments, net of cash acquired

 

(707)

   

10

   

(26,103)

   

(20,542)

 

Change in other non-current financial assets

 

(658)

   

(320)

   

(2,292)

   

(6,612)

 

CASH USED FOR INVESTING ACTIVITIES

 

(13,926)

   

(19,515)

   

(75,281)

   

(101,633)

 

Issuance of long-term borrowings

 

1,493

   

788

   

5,628

   

3,971

 

Repayment of borrowings

 

(1,483)

   

(2,776)

   

(6,502)

   

(8,974)

 

Interests paid

 

(6)

   

(21)

   

(23)

   

47

 

Proceeds from capital increase

 

4,386

   

3,758

   

31,638

   

13,768

 

Change in other financial liabilities

 

59

   

   

272

   

(1,000)

 

CASH FROM FINANCING ACTIVITIES

 

4,448

   

1,749

   

31,013

   

7,812

 
                 

CHANGE IN NET CASH AND CASH EQUIVALENTS

 

41,691

   

48,940

   

72,013

   

43,328

 

Net cash and cash equivalents at beginning of period

 

323,029

   

314,644

   

323,181

   

351,827

 

Effect of exchange rates changes on cash and cash equivalents

 

(12,893)

   

(10,047)

   

(43,367)

   

(41,618)

 

Net cash and cash equivalents at end of period

 

$

351,827

   

$

353,537

   

$

351,827

   

$

353,537

 

 

 

CRITEO S.A.

U.S. GAAP Reconciliation of Revenue ex-TAC by Region to Revenue by Region

(U.S. dollars in thousands)

(unaudited)

 
     

Three Months Ended

               

Twelve Months Ended

       
     

December 31,

               

December 31,

       
 

Region

 

2014

 

2015

 

YoY Change

 

YoY Change at Constant Currency (*)

   

Region

 

2014

 

2015

 

YoY Change

 

YoY Change at Constant Currency (*)

Revenue

                 

Revenue

               
 

Americas

 

$

109,543

   

$

170,133

   

55

%

 

61

%

   

Americas

 

$

303,436

   

$

505,653

   

67

%

 

74

%

 

EMEA

 

131,275

   

144,905

   

10

%

 

24

%

   

EMEA

 

485,986

   

541,105

   

11

%

 

31

%

 

Asia-Pacific

 

53,671

   

81,980

   

53

%

 

62

%

   

Asia-Pacific

 

198,827

   

276,411

   

39

%

 

56

%

 

Total

 

294,489

   

397,018

   

35

%

 

45

%

   

Total

 

988,249

   

1,323,169

   

34

%

 

49

%

                                         

Traffic acquisition costs

     

Traffic acquisition costs

   
 

Americas

 

(66,773)

   

(104,646)

   

57

%

 

62

%

   

Americas

 

(184,245)

   

(308,427)

   

67

%

 

75

%

 

EMEA

 

(73,265)

   

(82,905)

   

13

%

 

27

%

   

EMEA

 

(280,242)

   

(313,928)

   

12

%

 

32

%

 

Asia-Pacific

 

(32,500)

   

(49,505)

   

52

%

 

62

%

   

Asia-Pacific

 

(121,005)

   

(166,797)

   

38

%

 

55

%

 

Total

 

(172,538)

   

(237,056)

   

37

%

 

47

%

   

Total

 

(585,492)

   

(789,152)

   

35

%

 

50

%

                                         

Revenue ex-TAC

             

Revenue ex-TAC

       
 

Americas

 

42,770

   

65,487

   

53

%

 

60

%

   

Americas

 

119,191

   

197,226

   

65

%

 

73

%

 

EMEA

 

58,010

   

62,000

   

7

%

 

20

%

   

EMEA

 

205,744

   

227,177

   

10

%

 

30

%

 

Asia-Pacific

 

21,171

   

32,475

   

53

%

 

63

%

   

Asia-Pacific

 

77,822

   

109,614

   

41

%

 

57

%

 

Total

 

$

121,951

   

$

159,962

   

31

%

 

41

%

   

Total

 

$

402,757

   

$

534,017

   

33

%

 

48

%

 

(*) Due to entries into the consolidation scope during the year ended December 31, 2015 and U.S. GAAP conversion adjustments, there are slight variances between the year-over-year change at constant currency as determined under IFRS and presented in euros and the year-over-year change at constant currency as determined under U.S. GAAP and presented in U.S dollars.

 

 

 

CRITEO S.A.

U.S. GAAP Reconciliation of Adjusted EBITDA to Net Income

(U.S. dollars in thousands)

(unaudited)

 
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2014

 

2015

 

2014

 

2015

Net income

 

$

22,893

   

$

38,938

   

$

46,896

   

$

62,276

 

Adjustments:

               

Financial (income) expense

 

(1,473)

   

(735)

   

(11,390)

   

4,541

 

Provision (benefit) for income taxes

 

4,118

   

(4,378)

   

17,578

   

9,517

 

Share-based compensation expense

 

6,143

   

7,748

   

19,601

   

23,989

 

    Research and development

 

870

   

2,167

   

3,682

   

6,520

 

    Sales and operations

 

3,553

   

3,606

   

12,291

   

11,678

 

    General and administrative

 

1,720

   

1,975

   

3,628

   

5,791

 

Service cost-pension

 

129

   

109

   

504

   

441

 

    Research and development

 

38

   

40

   

167

   

163

 

    Sales and operations

 

45

   

38

   

187

   

153

 

    General and administrative

 

46

   

31

   

150

   

125

 

Depreciation and amortization expense

 

9,000

   

13,967

   

31,213

   

44,564

 

    Cost of revenue

 

6,332

   

8,579

   

21,455

   

29,866

 

    Research and development

 

1,261

   

3,183

   

4,949

   

7,994

 

    Sales and operations

 

1,080

   

1,744

   

3,664

   

5,178

 

    General and administrative

 

327

   

461

   

1,145

   

1,526

 

Acquisition-related deferred price consideration

 

110

   

(2,172)

   

950

   

(1,894)

 

    Research and development

 

110

   

46

   

950

   

324

 

    Sales and operations

 

   

   

   

 

    General and administrative

 

   

(2,218)

   

   

(2,218)

 

Total net adjustments

 

18,027

   

14,539

   

58,456

   

81,158

 

Adjusted EBITDA

 

$

40,920

   

$

53,477

   

$

105,352

   

$

143,434

 

 

 

CRITEO S.A.

U.S. GAAP Detailed Information on Selected Items

(U.S. dollars in thousands)

(unaudited)

 
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2014

 

2015

 

2014

 

2015

Share-Based Compensation Expense

               

Research and development

 

$

870

   

$

2,167

   

$

3,682

   

$

6,520

 

Sales and operations

 

3,553

   

3,606

   

12,291

   

11,678

 

General and administrative

 

1,720

   

1,975

   

3,628

   

5,791

 

    Total Share-Based Compensation Expense

 

6,143

   

7,748

   

19,601

   

23,989

 
                 

Service cost-pension

               

Research and development

 

38

   

40

   

167

   

163

 

Sales and operations

 

45

   

38

   

187

   

153

 

General and administrative

 

46

   

31

   

150

   

125

 

    Total Service cost-pension

 

129

   

109

   

504

   

441

 
                 

Depreciation and Amortization Expense

               

Cost of revenue

 

6,332

   

8,579

   

21,455

   

29,866

 

Research and development

 

1,261

   

3,183

   

4,949

   

7,994

 

Sales and operations

 

1,080

   

1,744

   

3,664

   

5,178

 

General and administrative

 

327

   

461

   

1,145

   

1,526

 

    Total Depreciation and Amortization Expense

 

9,000

   

13,967

   

31,213

   

44,564

 
                 

Acquisition-Related Deferred Price Consideration

               

Research and development

 

110

   

46

   

950

   

324

 

Sales and operations

 

   

   

   

 

General and administrative

 

   

(2,218)

   

   

(2,218)

 

    Total Acquisition-Related Deferred Price Consideration

 

$

110

   

$

(2,172)

   

$

950

   

$

(1,894)

 

 

 

CRITEO S.A.

U.S. GAAP Reconciliation of Adjusted Net Income to Net Income

(U.S. dollars in thousands)

(unaudited)

 
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2014

 

2015

 

2014

 

2015

                 

Net income

 

$

22,893

   

$

38,938

   

$

46,896

   

$

62,276

 

Adjustments:

               

Share-based compensation expense

 

6,142

   

7,748

   

19,601

   

23,989

 

Amortization of acquisition-related intangible assets

 

1,056

   

2,548

   

3,902

   

6,342

 

Acquisition-related deferred price consideration

 

110

   

(2,172)

   

950

   

(1,894)

 

Tax impact of the above adjustments

 

(31)

   

(47)

   

(503)

   

(878)

 

Total net adjustments

 

7,277

   

8,077

   

23,950

   

27,559

 

Adjusted net income

 

$

30,170

   

$

47,015

   

$

70,846

   

$

89,835

 
                 

Weighted average shares outstanding

               

   - Basic

 

60,519,987

   

62,348,620

   

58,928,563

   

61,835,499

 

   - Diluted

 

63,854,664

   

65,092,423

   

62,493,260

   

65,096,487

 
                 
                 

Adjusted net income per share

               

   - Basic

 

$

0.50

   

$

0.75

   

$

1.20

   

$

1.45

 

   - Diluted

 

$

0.47

   

$

0.72

   

$

1.13

   

$

1.38

 

 

 

CRITEO S.A.

U.S. GAAP Constant Currency Reconciliation

(U.S. dollars in thousands)

(unaudited)

 
   

Three Months Ended

     

Twelve Months Ended

   
   

December 31,

     

December 31,

   
   

2014

 

2015

 

YoY Change

 

2014

 

2015

 

YoY Change

Revenue as reported

 

$

294,489

   

$

397,018

   

35

%

 

$

988,249

   

$

1,323,169

   

34

%

Conversion impact U.S. dollar/other currencies

     

29,663

           

152,061

     

Revenue at constant currency (*)

 

294,489

   

426,681

   

45

%

 

988,249

   

1,475,230

   

49

%

                         

Traffic acquisition costs as reported

 

(172,538)

   

(237,056)

   

37

%

 

(585,492)

   

(789,152)

   

35

%

Conversion impact U.S. dollar/other currencies

     

(17,140)

           

(90,002)

     

Traffic Acquisition Costs at constant currency (*)

 

(172,538)

   

(254,196)

   

47

%

 

(585,492)

   

(879,154)

   

50

%

                         

Revenue ex-TAC as reported

 

121,951

   

159,962

   

31

%

 

402,757

   

534,017

   

33

%

Conversion impact U.S. dollar/other currencies

     

12,523

           

62,059

     

Revenue ex-TAC at constant currency (*)

 

121,951

   

172,485

   

41

%

 

402,757

   

596,076

   

48

%

Revenue ex-TAC/Revenue as reported

 

41.4

%

 

40.3

%

     

40.8

%

 

40.4

%

   
                         

Other cost of revenue as reported

 

(13,962)

   

(17,782)

   

27

%

 

(47,948)

   

(62,201)

   

30

%

Conversion impact U.S. dollar/other currencies

     

(777)

           

(4,589)

     

Other cost of revenue at constant currency (*)

 

(13,962)

   

(18,559)

   

33

%

 

(47,948)

   

(66,790)

   

39

%

                         

Adjusted EBITDA

 

40,920

   

53,477

   

31

%

 

105,352

   

143,434

   

36

%

Conversion impact U.S. dollar/other currencies

     

6,513

           

24,302

     

Adjusted EBITDA at constant currency (*)

 

40,920

   

59,990

   

47

%

 

105,352

   

167,736

   

59

%

 

(*) Due to entries into the consolidation scope during the year ended December 31, 2015 and U.S. GAAP conversion adjustments, there are slight variances between the year-over-year change at constant currency as determined under IFRS and presented in euros and the year-over-year change at constant currency as determined under U.S. GAAP and presented in U.S dollars.

 

 

 

CRITEO S.A.

U.S. GAAP - Information on Share Count

(unaudited)

 
   

2014

 

2015

Shares outstanding as at January 1,

 

56,856,070

   

60,902,695

 

Weighted average number of shares issued during the period

 

2,072,493

   

932,804

 

Basic number of shares - Basic EPS basis

 

58,928,563

   

61,835,499

 

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

 

3,717,153

   

3,260,988

 

Diluted number of shares - Diluted EPS basis

 

62,645,716

   

65,096,487

 
         

Shares outstanding as at December 31,

 

60,902,695

   

62,470,881

 

Total dilutive effect of share options, warrants, employee warrants

 

7,555,249

   

7,798,348

 

Fully diluted shares as at December 31,

 

68,457,944

   

70,269,229

 

 

 

RECONCILIATION OF CRITEO S.A. FINANCIAL STATEMENTS

FROM IFRS/EURO to U.S. GAAP/U.S. DOLLARS

 

CRITEO S.A.

Consolidated Statement of Income

Reconciliation from IFRS to U.S. GAAP

(in thousands, except per share data)

(unaudited)

 
 

Three Months Ended December 31, 2014

 

IFRS

(Euro)

 

Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Revenue

232,796

   

   

232,796

   

$

294,489

 
               

Cost of revenue

             

Traffic acquisition costs

(136,493)

   

   

(136,493)

   

(172,538)

 

Other cost of revenue

(11,054)

   

   

(11,054)

   

(13,962)

 
               

Gross Profit

85,249

   

   

85,249

   

107,989

 
               

Research and development expenses

(12,191)

   

   

(12,191)

   

(15,247)

 

Sales and operations expenses

(39,668)

   

   

(39,668)

   

(50,002)

 

General and administrative expenses

(13,698)

   

(9)

   

(13,707)

   

(17,202)

 

    Total operating expenses

(65,557)

   

(9)

   

(65,566)

   

(82,451)

 
               

Income from operations

19,692

   

(9)

   

19,683

   

25,538

 

Financial income

1,264

   

   

1,264

   

1,473

 

Income before taxes

20,956

   

(9)

   

20,947

   

27,011

 

Provision for income taxes

(3,313)

   

   

(3,313)

   

(4,118)

 

Net income

17,643

   

(9)

   

17,634

   

$

22,893

 

   - Net income available to shareholders of Criteo S.A.

17,256

   

(9)

   

17,247

   

$

22,396

 

   - Net income available to non-controlling interests

387

   

   

387

   

$

497

 
               

Weighted average shares outstanding

             

   - Basic

60,519,987

       

60,519,987

   

60,519,987

 

   - Diluted

63,854,664

       

63,854,664

   

63,854,664

 
               

Net income allocated to shareholders per share

             

   - Basic

0.29

       

0.28

   

$

0.37

 

   - Diluted

0.27

       

0.27

   

$

0.35

 

 

 

 

CRITEO S.A.

Consolidated Statement of Income

Reconciliation from IFRS to U.S. GAAP

(in thousands except per share data)

(unaudited)

 
 

Twelve Months Ended December 31, 2014

 

IFRS

(Euro)

 

Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Revenue

745,081

   

   

745,081

   

$

988,249

 
               

Cost of revenue

             

Traffic acquisition costs

(441,427)

   

   

(441,427)

   

(585,492)

 

Other cost of revenue

(36,150)

   

   

(36,150)

   

(47,948)

 
               

Gross Profit

267,504

   

   

267,504

   

354,809

 
               

Research and development expenses

(45,293)

   

   

(45,293)

   

(60,075)

 

Sales and operations expenses

(133,393)

   

   

(133,393)

   

(176,927)

 

General and administrative expenses

(48,788)

   

(9)

   

(48,797)

   

(64,723)

 

    Total operating expenses

(227,474)

   

(9)

   

(227,483)

   

(301,725)

 
               

Income from operations

40,030

   

(9)

   

40,021

   

53,084

 

Financial income

8,587

   

   

8,587

   

11,390

 

Income before taxes

48,617

   

(9)

   

48,608

   

64,474

 

Provision for income taxes

(13,253)

   

   

(13,253)

   

(17,578)

 

Net income

35,364

   

(9)

   

35,355

   

$

46,896

 

   - Net income available to shareholders of Criteo S.A.

34,354

   

(9)

   

34,345

   

$

45,556

 

   - Net income available to non-controlling interests

1,010

   

   

1,010

   

$

1,340

 
               

Weighted average shares outstanding

             

   - Basic

58,928,563

       

58,928,563

   

58,928,563

 

   - Diluted

62,065,699

       

62,493,260

   

62,493,260

 
               

Net income allocated to shareholders per share

             

   - Basic

0.58

       

0.58

   

$

0.77

 

   - Diluted

0.55

       

0.55

   

$

0.73

 

 

 

 

CRITEO S.A.

Consolidated Statement of Income

Reconciliation from IFRS to U.S. GAAP

(in thousands except per share data)

(unaudited)

 
 

Three Months Ended December 31, 2015

 

IFRS

(Euro)

 

 Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Revenue

361,732

   

   

361,732

   

$

397,018

 
               

Cost of revenue

             

Traffic acquisition costs

(215,980)

   

   

(215,980)

   

(237,056)

 

Other cost of revenue

(16,213)

   

   

(16,213)

   

(17,782)

 
               

Gross Profit

129,539

   

   

129,539

   

142,180

 
               

Research and development expenses

(24,215)

   

(55)

   

(24,270)

   

(26,665)

 

Sales and operations expenses

(54,953)

   

(187)

   

(55,140)

   

(60,410)

 

General and administrative expenses

(19,386)

   

(34)

   

(19,420)

   

(21,280)

 

    Total operating expenses

(98,554)

   

(276)

   

(98,830)

   

(108,355)

 
               

Income from operations

30,985

   

(276)

   

30,709

   

33,825

 

Financial income

644

   

   

644

   

735

 

Income before taxes

31,629

   

(276)

   

31,353

   

34,560

 

Provision for income taxes

3,861

   

45

   

3,906

   

4,378

 

Net income

35,490

   

(231)

   

35,259

   

$

38,938

 

   - Net income available to shareholders of Criteo S.A.

34,580

   

(231)

   

34,349

   

$

37,936

 

   - Net income available to non-controlling interests

910

   

   

910

   

$

1,002

 
               

Weighted average shares outstanding

             

   - Basic

62,348,620

       

62,348,620

   

62,348,620

 

   - Diluted

65,092,423

       

65,092,423

   

65,092,423

 
               

Net income allocated to shareholders per share

             

   - Basic

0.55

       

0.55

   

$

0.61

 

   - Diluted

0.53

       

0.53

   

$

0.58

 

 

 

 

CRITEO S.A.

Consolidated Statement of Income

Reconciliation from IFRS to U.S. GAAP

(in thousands except per share data)

(unaudited)

 
 

Twelve Months Ended December 31, 2015

 

IFRS

(Euro)

 

Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Revenue

1,193,414

   

   

1,193,414

   

$

1,323,169

 
               

Cost of revenue

             

Traffic acquisition costs

(711,755)

   

   

(711,755)

   

(789,152)

 

Other cost of revenue

(56,100)

   

   

(56,100)

   

(62,201)

 
               

Gross Profit

425,559

   

   

425,559

   

471,816

 
               

Research and development expenses

(78,313)

   

   

(78,313)

   

(86,807)

 

Sales and operations expenses

(206,325)

   

(715)

   

(207,040)

   

(229,530)

 

General and administrative expenses

(71,386)

   

   

(71,386)

   

(79,145)

 

    Total operating expenses

(356,024)

   

(715)

   

(356,739)

   

(395,482)

 
               

Income from operations

69,535

   

(715)

   

68,820

   

76,334

 

Financial income (expense)

(4,094)

   

   

(4,094)

   

(4,541)

 

Income before taxes

65,441

   

(715)

   

64,726

   

71,793

 

Provision for income taxes

(8,689)

   

118

   

(8,571)

   

(9,517)

 

Net income

56,752

   

(597)

   

56,155

   

$

62,276

 

   - Net income available to shareholders of Criteo S.A.

54,296

   

(597)

   

53,699

   

$

59,553

 

   - Net income available to non-controlling interests

2,456

   

   

2,456

   

$

2,723

 
               

Weighted average shares outstanding

             

   - Basic

61,835,499

       

61,835,499

   

61,835,499

 

   - Diluted

64,775,108

       

65,096,487

   

65,096,487

 
               

Net income allocated to shareholders per share

             

   - Basic

0.88

       

0.87

   

$

0.96

 

   - Diluted

0.84

       

0.82

   

$

0.91

 

 

 

 

CRITEO S.A.

Consolidated Statement of Financial Position

Reconciliation from IFRS to U.S. GAAP

(in thousands)

(unaudited)

 

December 31, 2014

 IFRS Presentation

 

IFRS

(Euro)

 

 U.S. GAAP Presentation

 

IFRS

(Euro)

 

Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Goodwill

 

22,944

   

Cash and cash equivalents

 

289,784

       

289,784

   

$

351,827

 

Intangible assets

 

10,560

   

Trade receivables, net of allowances

 

158,633

       

158,633

   

192,595

 

Property, plant and equipment

 

43,027

   

Current tax assets

 

2,883

       

2,883

   

3,493

 

Non-current financial assets

 

9,494

   

Other current assets

 

21,021

       

21,021

   

25,517

 

Deferred tax assets

 

7,113

   

TOTAL CURRENT ASSETS

 

472,321

       

472,321

   

573,432

 

TOTAL NON-CURRENT ASSETS

 

93,138

   

Property, plant and equipment

 

43,027

       

43,027

   

52,239

 

Trade receivables

 

158,633

   

Intangible assets

 

10,560

       

10,560

   

12,821

 

Current tax assets

 

2,883

   

Goodwill

 

22,944

       

22,944

   

27,856

 

Other current assets

 

21,021

   

Non-current financial assets

 

9,494

       

9,494

   

11,527

 

Cash and cash equivalents

 

289,784

   

Deferred tax assets

 

7,113

       

7,113

   

8,635

 

TOTAL CURRENT ASSETS

 

472,321

   

TOTAL NON-CURRENT ASSETS

 

93,138

       

93,138

   

113,078

 

TOTAL ASSETS

 

565,459

   

TOTAL ASSETS

 

565,459

       

565,459

   

686,510

 
                         

Share capital

 

1,523

   

Trade payables

 

135,557

       

135,557

   

164,579

 

Additional paid-in capital

 

265,522

   

Provisions

 

1,131

       

1,131

   

1,373

 

Currency translation adjustment

 

4,804

   

Current tax liabilities

 

7,969

       

7,969

   

9,676

 

Consolidated reserves

 

35,302

   

Financial liabilities - current portion

 

7,841

       

7,841

   

9,520

 

Retained earnings

 

34,354

   

Other current liabilities

 

63,720

       

63,720

   

77,362

 

Equity - attributable to shareholders of Criteo S.A.

 

341,505

   

TOTAL CURRENT LIABILITIES

 

216,218

       

216,218

   

262,510

 

Non-controlling interests

 

1,433

   

Deferred tax liabilities

 

946

       

946

   

1,142

 

TOTAL EQUITY

 

342,938

   

Retirement benefit obligation

 

1,024

       

1,024

   

1,243

 

Financial liabilities - non-current portion

 

4,333

   

Financial liabilities - non-current portion

 

4,333

       

4,333

   

5,260

 

Retirement benefit obligation

 

1,024

   

TOTAL NON-CURRENT LIABILITIES

 

6,303

       

6,303

   

7,645

 

Deferred tax liabilities

 

946

   

TOTAL LIABILITIES

 

222,521

       

222,521

   

270,155

 

TOTAL NON-CURRENT LIABILITIES

 

6,303

   

Common stock

 

1,523

       

1,523

   

2,008

 

Financial liabilities - current portion

 

7,841

   

Additional paid-in capital

 

265,522

   

27,123

   

292,645

   

387,972

 

Provisions

 

1,131

   

Currency translation adjustment

 

4,804

   

(4,804)

   

   

 

Trade payables

 

135,557

   

Consolidated reserves

 

35,302

   

(35,302)

   

   

 

Current tax liabilities

 

7,969

   

Retained earnings

 

34,354

   

8,229

   

42,583

   

56,680

 

Other current liabilities

 

63,720

   

Accumulated other comprehensive income (loss)

 

   

4,754

   

4,754

   

(32,045)

 

TOTAL CURRENT LIABILITIES

 

216,218

   

Equity - attributable to shareholders of Criteo S.A.

 

341,505

   

   

341,505

   

414,615

 

TOTAL LIABILITIES

 

222,521

   

Non-controlling interests

 

1,433

       

1,433

   

1,740

 

TOTAL EQUITY AND LIABILITIES

 

565,459

   

TOTAL EQUITY

 

342,938

   

   

342,938

   

416,355

 
       

TOTAL EQUITY AND LIABILITIES

 

565,459

   

   

565,459

   

$

686,510

 
                                             

 

 

CRITEO S.A.

Consolidated Statement of Financial Position

Reconciliation from IFRS to U.S. GAAP

(in thousands)

(unaudited)

 

December 31, 2015

 IFRS Presentation

 

IFRS

(Euro)

 

 U.S. GAAP Presentation

 

IFRS

(Euro)

 

Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Goodwill

 

38,553

   

Cash and cash equivalents

 

324,733

       

324,733

   

$

353,537

 

Intangible assets

 

15,126

   

Trade receivables, net of allowances

 

240,264

       

240,264

   

261,581

 

Property, plant and equipment

 

75,762

   

Current tax assets

 

2,500

       

2,500

   

2,714

 

Non-current financial assets

 

15,784

   

Other current assets

 

41,944

       

41,944

   

45,582

 

Deferred tax assets

 

18,432

   

TOTAL CURRENT ASSETS

 

609,441

       

609,441

   

663,414

 

TOTAL NON-CURRENT ASSETS

 

163,657

   

Property, plant and equipment

 

75,762

       

75,762

   

82,482

 

Trade receivables

 

240,264

   

Intangible assets

 

15,126

       

15,126

   

16,470

 

Current tax assets

 

2,500

   

Goodwill

 

38,553

       

38,553

   

41,973

 

Other current assets

 

41,944

   

Non-current financial assets

 

15,784

       

15,784

   

17,184

 

Cash and cash equivalents

 

324,733

   

Deferred tax assets

 

18,432

   

118

   

18,550

   

20,196

 

TOTAL CURRENT ASSETS

 

609,441

   

TOTAL NON-CURRENT ASSETS

 

163,657

   

118

   

163,775

   

178,305

 

TOTAL ASSETS

 

773,098

   

TOTAL ASSETS

 

773,098

   

118

   

773,216

   

841,719

 
                         

Share capital

 

1,562

   

Trade payables

 

226,304

       

226,304

   

246,382

 

Additional paid-in capital

 

277,901

   

Provisions

 

614

       

614

   

668

 

Currency translation adjustment

 

11,598

   

Current tax liabilities

 

14,113

       

14,113

   

15,365

 

Consolidated reserves

 

90,997

   

Financial liabilities - current portion

 

6,573

       

6,573

   

7,156

 

Retained earnings

 

54,296

   

Other current liabilities

 

80,361

   

715

   

81,076

   

88,269

 

Equity - attributable to shareholders of Criteo S.A.

 

436,354

   

TOTAL CURRENT LIABILITIES

 

327,965

   

715

   

328,680

   

357,840

 

Non-controlling interests

 

4,315

   

Deferred tax liabilities

 

132

       

132

   

139

 

TOTAL EQUITY

 

440,669

   

Retirement benefit obligation

 

1,327

       

1,327

   

1,445

 

Financial liabilities - non-current portion

 

3,005

   

Financial liabilities - non-current portion

 

3,005

       

3,005

   

3,272

 

Retirement benefit obligation

 

1,327

   

TOTAL NON-CURRENT LIABILITIES

 

4,464

   

   

4,464

   

4,856

 

Deferred tax liabilities

 

132

   

TOTAL LIABILITIES

 

332,429

   

715

   

333,144

   

362,696

 

TOTAL NON-CURRENT LIABILITIES

 

4,464

   

Common stock

 

1,562

       

1,562

   

2,052

 

Financial liabilities - current portion

 

6,573

   

Additional paid-in capital

 

277,901

   

48,558

   

326,459

   

425,220

 

Provisions

 

614

   

Currency translation reserve

 

11,598

   

(11,598)

   

   

 

Trade payables

 

226,304

   

Consolidated reserves

 

90,997

   

(90,997)

   

   

 

Current tax liabilities

 

14,113

   

Retained earnings

 

54,296

   

41,861

   

96,157

   

116,278

 

Other current liabilities

 

80,361

   

Accumulated other comprehensive income (loss)

 

   

11,579

   

11,579

   

(69,225)

 

TOTAL CURRENT LIABILITIES

 

327,965

   

Equity - attributable to shareholders of Criteo S.A.

 

436,354

   

(597)

   

435,757

   

474,325

 

TOTAL LIABILITIES

 

332,429

   

Non-controlling interests

 

4,315

       

4,315

   

4,698

 

TOTAL EQUITY AND LIABILITIES

 

773,098

   

TOTAL EQUITY

 

440,669

   

(597)

   

440,072

   

479,023

 
       

TOTAL EQUITY AND LIABILITIES

 

773,098

   

118

   

773,216

   

$

841,719

 
                                             

 

 

 

CRITEO S.A.

Consolidated Statement of Cash Flows

Reconciliation from IFRS to U.S. GAAP

(in thousands)

(unaudited)

 
 

Three Months Ended December 31, 2014

 

IFRS

(Euro)

 

Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Net income

17,643

   

(9)

   

17,634

   

$

22,893

 

Non-cash and non-operating items

16,379

   

9

   

16,388

   

20,689

 

                 - Amortization and provisions

7,662

   

9

   

7,671

   

9,687

 

                 - Share-based payment expense

4,840

       

4,840

   

6,142

 

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

110

       

110

   

146

 

                 - Interest paid

5

       

5

   

6

 

                 - Non-cash financial income and expenses

449

       

449

   

590

 

                 - Change in deferred taxes

(4,573)

       

(4,573)

   

(6,081)

 

                 - Income tax for the period

7,886

       

7,886

   

10,199

 

Changes in working capital related to operating activities

12,252

   

   

12,252

   

16,495

 

                 - (Increase)/decrease in trade receivables

(26,812)

       

(26,812)

   

(34,551)

 

                 - Increase/(decrease) in trade payables

28,678

       

28,678

   

37,354

 

                 - (Increase)/decrease in other current assets

565

       

565

   

934

 

                 - Increase/(decrease) in other current liabilities

9,821

       

9,821

   

12,759

 

Income taxes paid

(6,684)

       

(6,684)

   

(8,909)

 

CASH FROM OPERATING ACTIVITIES

39,590

   

   

39,590

   

51,169

 

Acquisition of intangible assets, property, plant and equipment

(9,993)

   

(1,204)

   

(11,197)

   

(14,142)

 

Proceeds from disposal of intangible assets, property, plant and equipment

(10)

   

   

(10)

   

(15)

 

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

   

1,204

   

1,204

   

1,596

 

FREE CASH FLOW

29,587

   

   

29,587

   

38,608

 

Investments

       

   

(707)

 

Change in other non-current financial assets

(521)

       

(521)

   

(658)

 

CASH USED FOR INVESTING ACTIVITIES

(10,524)

   

   

(10,524)

   

(13,926)

 

Issuance of long-term borrowings

1,189

       

1,189

   

1,493

 

Repayment of borrowings

(1,196)

       

(1,196)

   

(1,483)

 

Interests paid

(5)

       

(5)

   

(6)

 

Proceeds from capital increase

3,730

       

3,730

   

4,386

 

Change in other financial liabilities

48

       

48

   

59

 

CASH FROM FINANCING ACTIVITIES

3,766

   

   

3,766

   

4,448

 
               

CHANGE IN NET CASH AND CASH EQUIVALENTS

32,832

   

   

32,832

   

41,691

 

Net cash and cash equivalents at beginning of period

256,719

       

256,719

   

323,029

 

Effect of exchange rates changes on cash and cash equivalents

233

       

233

   

(12,893)

 

Net cash and cash equivalents at end of period

289,784

   

   

289,784

   

$

351,827

 

 

 

 

CRITEO S.A.

Consolidated Statement of Cash Flows

Reconciliation from IFRS to U.S. GAAP

(in thousands)

(unaudited)

 
 

Twelve Months Ended December 31, 2014

 

IFRS

(Euro)

 

Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Net income

35,364

   

(9)

   

35,355

   

$

46,896

 

Non-cash and non-operating items

53,931

   

9

   

53,940

   

71,544

 

                 - Amortization and provisions

25,146

   

9

   

25,155

   

33,365

 

                 - Share-based payment expense

14,778

       

14,778

   

19,600

 

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

106

       

106

   

141

 

                 - Interest paid

17

       

17

   

23

 

                 - Non-cash financial income and expenses

632

       

632

   

838

 

                 - Change in deferred taxes

(4,007)

       

(4,007)

   

(5,315)

 

                 - Income tax for the period

17,260

       

17,260

   

22,892

 

Changes in working capital related to operating activities

3,516

   

   

3,516

   

4,661

 

                 - (Increase)/decrease in trade receivables

(63,064)

       

(63,064)

   

(83,646)

 

                 - Increase/(decrease) in trade payables

53,195

       

53,195

   

70,557

 

                 - (Increase)/decrease in other current assets

(6,021)

       

(6,021)

   

(7,986)

 

                 - Increase/(decrease) in other current liabilities

19,406

       

19,406

   

25,736

 

Income taxes paid

(5,142)

       

(5,142)

   

(6,820)

 

CASH FROM OPERATING ACTIVITIES

87,670

   

   

87,670

   

116,281

 

Acquisition of intangible assets, property, plant and equipment

(35,389)

   

(1,285)

   

(36,674)

   

(48,643)

 

Proceeds from disposal of intangible assets, property, plant and equipment

40

   

   

40

   

52

 

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

   

1,285

   

1,285

   

1,705

 

FREE CASH FLOW

52,321

   

   

52,321

   

69,395

 

Investments

(18,775)

       

(18,775)

   

(26,103)

 

Change in other non-current financial assets

(1,728)

       

(1,728)

   

(2,292)

 

CASH USED FOR INVESTING ACTIVITIES

(55,852)

   

   

(55,852)

   

(75,281)

 

Issuance of long-term borrowings

4,243

       

4,243

   

5,628

 

Repayment of borrowings

(4,902)

       

(4,902)

   

(6,502)

 

Interests paid

(17)

       

(17)

   

(23)

 

Proceeds from capital increase

23,854

       

23,854

   

31,638

 

Change in other financial liabilities

205

       

205

   

272

 

CASH FROM FINANCING ACTIVITIES

23,383

   

   

23,383

   

31,013

 
               

CHANGE IN NET CASH AND CASH EQUIVALENTS

55,200

   

   

55,200

   

72,013

 

Net cash and cash equivalents at beginning of period

234,342

       

234,342

   

323,181

 

Effect of exchange rates changes on cash and cash equivalents

242

       

242

   

(43,367)

 

Net cash and cash equivalents at end of period

289,784

   

   

289,784

   

$

351,827

 

 

 

CRITEO S.A.

Consolidated Statement of Cash Flows

Reconciliation from IFRS to U.S. GAAP

(in thousands)

(unaudited)

 
   

Three Months Ended December 31, 2015

   

IFRS

(Euro)

 

Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Net income

 

35,490

   

(231)

   

35,259

   

$

38,938

 

Non-cash and non-operating items

 

14,489

   

(45)

   

14,444

   

15,764

 

                 - Amortization and provisions

 

13,335

       

13,335

   

14,648

 

                 - Share-based payment expense

 

7,047

       

7,047

   

7,748

 

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

 

(1,994)

       

(1,994)

   

(2,212)

 

                 - Interest paid

 

(3)

       

(3)

   

(3)

 

                 - Non-cash financial income and expenses

 

5

       

5

   

5

 

                 - Change in deferred taxes

 

(11,343)

   

(45)

   

(11,388)

   

(12,599)

 

                 - Income tax for the period

 

7,442

       

7,442

   

8,177

 

Changes in working capital related to operating activities

 

15,543

   

276

   

15,819

   

17,572

 

                 - (Increase)/decrease in trade receivables

 

(50,604)

       

(50,604)

   

(55,986)

 

                 - Increase/(decrease) in trade payables

 

54,735

       

54,735

   

60,529

 

                 - (Increase)/decrease in other current assets

 

412

       

412

   

563

 

                 - Increase/(decrease) in other current liabilities

 

11,000

   

276

   

11,276

   

12,466

 

Income taxes paid

 

(5,074)

       

(5,074)

   

(5,568)

 

CASH FROM OPERATING ACTIVITIES

 

60,448

   

   

60,448

   

66,706

 

Acquisition of intangible assets, property, plant and equipment

 

(17,580)

   

6,162

   

(11,418)

   

(13,086)

 

Proceeds from disposal of intangible assets, property, plant and equipment

 

8

   

   

8

   

150

 

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

 

   

(6,162)

   

(6,162)

   

(6,269)

 

FREE CASH FLOW

 

42,876

   

   

42,876

   

47,501

 

Investments

 

       

   

10

 

Change in other non-current financial assets

 

(314)

       

(314)

   

(320)

 

CASH USED FOR INVESTING ACTIVITIES

 

(17,886)

   

   

(17,886)

   

(19,515)

 

Issuance of long-term borrowings

 

723

       

723

   

788

 

Repayment of borrowings

 

(2,521)

       

(2,521)

   

(2,776)

 

Interests paid

 

(19)

       

(19)

   

(21)

 

Proceeds from capital increase

 

3,416

       

3,416

   

3,758

 

Change in other financial liabilities

 

       

   

 

CASH FROM FINANCING ACTIVITIES

 

1,599

   

   

1,599

   

1,749

 
                 

CHANGE IN NET CASH AND CASH EQUIVALENTS

 

44,161

   

   

44,161

   

48,940

 

Net cash and cash equivalents at beginning of period

 

280,857

       

280,857

   

314,644

 

Effect of exchange rates changes on cash and cash equivalents

 

(285)

       

(285)

   

(10,047)

 

Net cash and cash equivalents at end of period

 

324,733

   

   

324,733

   

$

353,537

 

 

 

 

CRITEO S.A.

Consolidated Statement of Cash Flows

Reconciliation from IFRS to U.S. GAAP

(in thousands)

(unaudited)

 
   

Twelve Months Ended December 31, 2015

   

IFRS

(Euro)

 

 Adjustments from

IFRS to U.S.GAAP

(Euro)

 

U.S. GAAP

(Euro)

 

U.S. GAAP

(U.S. Dollar)

Net income

 

56,752

   

(597)

   

56,155

   

$

62,275

 

Non-cash and non-operating items

 

70,867

   

(118)

   

70,749

   

78,448

 

                 - Amortization and provisions

 

42,469

       

42,469

   

47,085

 

                 - Share-based payment expense

 

21,642

       

21,642

   

23,989

 

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

 

(1,918)

       

(1,918)

   

(2,127)

 

                 - Interest paid

 

5

       

5

   

6

 

                 - Non-cash financial income and expenses

 

20

       

20

   

22

 

                 - Change in deferred taxes

 

(14,098)

   

(118)

   

(14,216)

   

(15,748)

 

                 - Income tax for the period

 

22,747

       

22,747

   

25,221

 

Changes in working capital related to operating activities

 

13,022

   

715

   

13,737

   

15,231

 

                 - (Increase)/decrease in trade receivables

 

(75,247)

       

(75,247)

   

(83,420)

 

                 - Increase/(decrease) in trade payables

 

90,233

       

90,233

   

100,047

 

                 - (Increase)/decrease in other current assets

 

(21,737)

       

(21,737)

   

(24,101)

 

                 - Increase/(decrease) in other current liabilities

 

19,773

   

715

   

20,488

   

22,705

 

Income taxes paid

 

(16,960)

       

(16,960)

   

(18,805)

 

CASH FROM OPERATING ACTIVITIES

 

123,681

   

   

123,681

   

137,149

 

Acquisition of intangible assets, property, plant and equipment

 

(67,090)

   

(1,112)

   

(68,202)

   

(75,617)

 

Proceeds from disposal of intangible assets, property, plant and equipment

 

9

       

9

   

10

 

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

 

   

1,112

   

1,112

   

1,128

 

FREE CASH FLOW

 

56,600

   

   

56,600

   

62,670

 

Investments

 

(18,009)

       

(18,009)

   

(20,542)

 

Change in other non-current financial assets

 

(5,964)

       

(5,964)

   

(6,612)

 

CASH USED FOR INVESTING ACTIVITIES

 

(91,054)

   

   

(91,054)

   

(101,633)

 

Issuance of long-term borrowings

 

3,582

       

3,582

   

3,971

 

Repayment of borrowings

 

(8,101)

       

(8,101)

   

(8,974)

 

Interests paid

 

42

       

42

   

47

 

Proceeds from capital increase

 

12,417

       

12,417

   

13,768

 

Change in other financial liabilities

 

(906)

       

(906)

   

(1,000)

 

CASH FROM FINANCING ACTIVITIES

 

7,034

   

   

7,034

   

7,812

 
                 

CHANGE IN NET CASH AND CASH EQUIVALENTS

 

39,661

   

   

39,661

   

43,328

 

Net cash and cash equivalents at beginning of period

 

289,784

       

289,784

   

351,827

 

Effect of exchange rates changes on cash and cash equivalents

 

(4,712)

       

(4,712)

   

(41,618)

 

Net cash and cash equivalents at end of period

 

324,733

   

   

324,733

   

$

353,537

 

 

 

SOURCE Criteo S.A.

For further information: Criteo, Investor Relations, Edouard Lassalle, Head of IR, e.lassalle@criteo.com, or Friederike Edelmann, Sr. Manager IR, f.edelmann@criteo.com, or Public Relations, Emma Ferns, Global PR director, e.ferns@criteo.com