Quarterly Results

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Fourth Quarter 2013
Criteo Reports Record Results for the Fourth Quarter & Full Year 2013

NEW YORK, Feb. 11, 2014 (GLOBE NEWSWIRE) -- Criteo S.A. (Nasdaq:CRTO), a global leader in digital performance advertising, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2013.

  • Revenue in the fourth quarter 2013 increased 57.0% (or 68.5% at constant currencies1) to €135.9 million, compared with €86.6 million in the fourth quarter 2012.
    Revenue for fiscal year 2013 increased 63.3% (or 73.6% at constant currencies) to €444.0 million, compared with €271.9 million in fiscal year 2012.
  • Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, in the fourth quarter 2013 grew 55.3% (or 66.2% at constant currencies) to €54.9million, or 40.4% of revenue, compared with €35.3 million, or 40.8% of revenue, in the fourth quarter 2012.
    Revenue ex-TAC for fiscal year 2013 increased 56.8% (or 66.4% at constant currencies) to €179.0 million, or 40.3% of revenue, compared with €114.1 million, or 42.0% of revenue, in fiscal year 2012.
  • Net income in the fourth quarter 2013 increased by €8.0 million to €3.3 million compared with a €4.7 million net loss in the fourth quarter 2012.
    Net income for fiscal year 2013 grew by 67.6% to €1.4 million, compared with €0.8 million in fiscal year 2012.
  • Adjusted EBITDA for the fourth quarter 2013 was €14.5 million, an increase of 227.3% (or 239.9% at constant currencies) compared with €4.4 million in the fourth quarter 2012.
    Adjusted EBITDA for fiscal year 2013 was €31.3 million, an increase of 80.2% (or 84.4% at constant currencies), compared with €17.4 million in fiscal year 2012.
  • Cash flow from operating activities in the fourth quarter 2013 increased 62.1% to €12.3 million, compared with €7.6 million in the fourth quarter 2012.
    Cash flow from operating activities for fiscal year 2013 increased 109.2% to €24.7 million, compared with €11.8 million in fiscal year 2012.
  • Free Cash Flow for the year 2013, defined as cash flow from operating activities less acquisition of intangibles assets, property, plant and equipment, net of proceeds from disposal, was €2.8 million. This marks a key milestone for the company as it was the first time in Criteo's history that free cash flow was positive on a full year basis.

Executive Quote

"We delivered a record quarter and a record year in 2013, exceeding our expectations" said JB Rudelle, Criteo's co-founder and CEO. "We introduced several new products and we are particularly pleased with the strong launch of our mobile offering in the fourth quarter. With our new products ramping quickly on new screens and devices, we are excited about 2014 and our future growth opportunities."

Operating Highlights

  • In the quarter, we started to roll out our global solution for performance display advertising on mobile web. With last month's beta release of our performance display advertising solution for mobile apps, we now provide a complete mobile product offering for mobile browsers and apps.
  • Mobile contribution increased globally from 2.5% of revenue ex-TAC in September to 10.0% in December 2013. In Japan, which was our initial mobile test market, mobile contribution reached 18% in December.
  • Our solution for Facebook Exchange® was live in an increasing number of markets worldwide in the fourth quarter, including in most of our Asian markets.
  • Our total number of clients reached 5,072 in the fourth quarter 2013, representing a 50% growth over the fourth quarter 2012.
  • New client additions in the fourth quarter included:
    -- In the Americas: American Eagle Outfitters
    -- In EMEA: Deutsche Telekom T-Mobile, L'Oreal, Qatar Airways
    -- In Asia-Pacific: en-japan, Inc., NTT Plala, Inc., YAHUOKU mobile
  • We further strengthened our leadership team in the quarter with two key appointments:
    -- Eric Eichmann was promoted to Chief Operating Officer from his previous role as Chief Revenue Officer;
    -- We welcomed Jean-Louis Constanza as Criteo's Chief Innovation Officer.

Revenue ex-TAC

Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, in the fourth quarter 2013 grew 55.3%, or 66.2% at constant currencies, to €54.9 million, compared with €35.3 million in the fourth quarter 2012, primarily driven by our continued rapid geographic expansion.

Revenue ex-TAC for fiscal year 2013 increased 56.8%, or 66.4% at constant currencies, to €179.0 million, compared with €114.1 million in fiscal 2012.

  • In the Americas, revenue ex-TAC in the fourth quarter 2013 grew by 52.0% over the comparable quarter in 2012, or 62.1% at constant currencies, to €15.1 million. The Americas region represented 28% of our global revenue ex-TAC in the fourth quarter 2013.
    Revenue ex-TAC in Americas for fiscal year 2013 increased 71.9% over fiscal year 2012, or 81.9% at constant currencies, to €47.7 million. The Americas region represented 27% of our global revenue ex-TAC in fiscal year 2013.
  • Revenue ex-TAC in EMEA in the fourth quarter 2013 increased by 45.0% over the same period last year, or 46.2% at constant currencies, to €29.1 million. EMEA represented 53% of our global revenue ex-TAC in the fourth quarter 2013.
    Revenue ex-TAC in EMEA for fiscal year 2013 grew by 35.6% over fiscal year 2012, or 36.8% at constant currencies, to €97.4 million. EMEA represented 54% of our global revenue ex-TAC in fiscal year 2013.
  • Revenue ex-TAC in Asia-Pacific in the fourth quarter 2013 increased by 99.6% over the comparable quarter in 2012, or 148.7% at constant currencies, to €10.7 million. Asia-Pacific accounted for above 19% of our global revenue ex-TAC in the fourth quarter 2013.
    Revenue ex-TAC in Asia-Pacific for fiscal year 2013 increased 132.2% over fiscal year 2012, or 182.8% at constant currencies, to €33.9 million. Asia-Pacific represented 19% of our global revenue ex-TAC in fiscal year 2013.

Revenue ex-TAC margin as a percentage of revenue in the fourth quarter 2013 was at 40.4%, a 0.4 point decrease compared with 40.8% in the fourth quarter of 2012.

Revenue ex-TAC margin as a percentage of revenue for fiscal year 2013 was at 40.3%, a 1.7 point decrease compared with 42.0% in fiscal year 2012.

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA for the fourth quarter 2013 was €14.5 million, an increase of 227.3%, or 239.9% at constant currencies, compared with €4.4 million in the fourth quarter 2012, due to a focus on growing revenue ex-TAC in our biggest quarter of the year and, to a lesser extent, increased operating leverage in our sales and operations expenses.

Adjusted EBITDA for fiscal year 2013 was €31.3 million, an increase of 80.2%, or 84.4% at constant currencies, compared with €17.4 million in fiscal year 2012, despite our significant investments made over the period.

Operating expenses in the fourth quarter of 2013 increased by 42.9% to €41.6 million, compared with the fourth quarter 2012. Excluding the impact of share-based compensation, pension costs, depreciation and amortization and acquisition-related deferred price consideration, which we refer to as on a "Non-IFRS basis", our operating expenses in the fourth quarter 2013 were at €36.7 million, an increase of 34.2% compared with the fourth quarter of 2012. This increase in operating expenses over the period was in particular related to headcount growth in Research & Development, as we continued our investments to further develop our technology platform and enrich our product portfolio to support future growth. On a non-IFRS basis, our Sales & Operations and General & Administrative expenses in the fourth quarter 2013 expressed as a percentage of revenue decreased by 4.2 points and 1.4 points respectively over the period.

Operating expenses for fiscal 2013 increased by 58.2% to €146.4 million, compared with fiscal year 2012. On a non-IFRS basis, our operating expenses for fiscal year 2013 were at €133.6 million, an increase of 52.2% compared with fiscal year 2012. On a non-IFRS basis, our Sales & Operations and General & Administrative expenses for fiscal year 2013 expressed as a percentage of revenue decreased by 2.8 points and 0.4 point respectively over the period.

Net Income and Adjusted Net Income

Net income for the fourth quarter 2013 was €3.3 million, representing a €8.0 million increase compared with a €4.7 million net loss in the fourth quarter 2012. Net income available to shareholders of Criteo S.A. for the fourth quarter 2013 was €3.0 million, or €0.055 per diluted share, compared with a €4.6 million net loss, or a €0.095 net loss per diluted share in the fourth quarter 2012.

Adjusted Net Income for the fourth quarter 2013, or our net income adjusted to eliminate the impact of share-based compensation expense, amortization of acquisition-related intangible assets and acquisition-related deferred price consideration, was €7.1 million, representing a €10.5 million increase compared with an Adjusted Net Loss of €3.4 million in the fourth quarter 2012.

Net income for fiscal year 2013 was €1.4 million, compared with €0.8 million in fiscal year 2012. Net income available to shareholders of Criteo S.A. for fiscal year 2013 was €1.1 million, or €0.019 per diluted share, compared with €1.0 million, or €0.02 per diluted share in fiscal year 2012.

Adjusted Net Income for fiscal year 2013 was €10.9 million, representing a 148.6% increase compared with an Adjusted Net Income of €4.4 million in fiscal year 2012.

Cash Flow and Cash Position

  • Our cash flow generated by operating activities in the fourth quarter 2013 increased by 62.1% to €12.3 million, compared with €7.6 million in the fourth quarter 2012.
    Our cash flow generated by operating activities for fiscal year 2013 increased by 109.1% to €24.7 million, compared with €11.8 million in fiscal year 2012.
  • Our free cash flow was €5.1 million in the fourth quarter 2013, compared with €0.3 million in the fourth quarter 2012.
    Our free cash flow for fiscal year 2013 reached €2.8 million, increasing by €4.6 million compared with a negative €1.8 million in fiscal year 2012.
  • Total cash, cash equivalents and short-term investments were at €234.3 million as of December 31, 2013. This represented an increase of €194.5 million compared with September 30, 2013, primarily the result of the net proceeds of €192.2 million from our Initial Public Offering on the NASDAQ Global Market on October 30, 2013. Compared with December 31, 2012, this represented an increase of €191.1 million, primarily the result of the net proceeds from our Initial Public Offering, partially offset by a significant increase in capital expenditures over the year and our investment in Ad-X Ltd in July 2013.

Business Outlook

The following forward-looking statements reflect Criteo's expectations as of February 11, 2014.

First Quarter 2014 Guidance:

  • Revenue ex-TAC for the first quarter ending March 31, 2014 is expected to be between €55 million and €57 million.
  • Adjusted EBITDA for the first quarter ending March 31, 2014 is expected to be between €10.5 million and €12.5 million.

Fiscal Year 2014 Guidance:

  • Revenue ex-TAC for the fiscal year ending December 31, 2014 is expected to grow by approximately 41% at constant currencies to a range of €246 million and €251 million, including a €4.6 million negative impact from foreign currency.
  • Adjusted EBITDA for the fiscal year ending December 31, 2014 is expected to be between €47 million and €51 million.

The above guidance assumes no business acquisitions are closed or realized during the quarter ending March 31, 2014 and fiscal year ending December 31, 2014.

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, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-IFRS Operating Expenses and Revenue ex-TAC 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. Revenue ex-TAC is a key measure 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. Accordingly, we believe that Revenue ex-TAC provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Adjusted EBITDA is our income from operations before interest, taxes, depreciation and amortization, adjusted to eliminate the impact of share-based compensation expense, pension 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 and acquisition-related deferred price consideration. Adjusted Net Income is not a measure calculated in accordance with IFRS. Adjusted Net Income is a key measure 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 share-based compensation expense 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 others in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Accordingly, we believe that Revenue-ex TAC, Adjusted EBITDA and Adjusted Net Income provide useful information to investors and others in understanding and evaluating our operating results 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, Adjusted EBITDA to net income and Adjusted Net Income to net income, the most comparable IFRS measurements. Our use of Revenue ex-TAC, Adjusted EBITDA and Adjusted Net Income have 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.

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 International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). 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 relevant tables below.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements that are inherently difficult to predict, including projected financial results for the quarter ending March 31, 2014 and the fiscal year ending December 31, 2014, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts, which 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: our recent growth rates may not be indicative of our future growth, uncertainty regarding regulatory, legislative or self-regulatory developments regarding internet privacy matters, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand our access to such inventory, the amount that Criteo invests in new business opportunities and the timing of these investments, the impact of competition, our ability to manage our growth, potential fluctuations in operating results, our ability to grow our base of advertising clients, uncertainty regarding our international growth and expansion and the financial impact of our focus on 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 Criteo S.A.'s Securities and Exchange Commission filings and reports, including in the Company's prospectus filed with the SEC on October 30, 2013 and future filings and reports by the Company. Criteo undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

Conference Call Information

Criteo will hold a conference call today, February 11, 2014, at 5:00pm ET, 2:00pm PST, 11:00pm CET, to discuss Criteo's fourth quarter and full year 2013 operating and financial results, as well as other forward-looking information about Criteo's business.

Conference call details are:

  • US callers: +1 (646) 254-3364, Conference ID: 9118936
  • International callers: +33 1 76 77 22 25, Conference ID: 9118936

The conference call will also be webcast simultaneously at http://ir.criteo.com.

About Criteo

Criteo is a global leader in digital performance advertising, working with over 5,000 companies around the world. Criteo has over 800 employees in offices across the U.S., Europe and Asia serving more than 40 countries.

For more information, please visit http://www.criteo.com

1 Variations at constant currencies exclude the impact of foreign currency fluctuations and are computed by restating 2013 figures with the 2012 average exchange rates.

CRITEO S.A.
Consolidated Statement of Income
(Euros in thousands)
(unaudited)
 
  Three Months Ended  Year Ended 
  December 31, December 31,
      Year-over-     Year-over-
  2012 2013 year 2012 2013 year
      growth     growth
Revenue 86,570 135,889 57.0% 271,855 443,960 63.3%
             
Cost of revenue            
Traffic Acquisition cost (TAC) -51,240 -81,034 58.1% -157,707 -264,952 68.0%
Other cost of revenue -4,847 -6,334 30.7% -12,662 -21,956 73.4%
             
Gross Profit 30,483 48,520 59.2% 101,486 157,051 54.8%
             
Research & development expenses -4,257 -9,973 134.3% -14,285 -32,175 125.2%
Sales & operations expenses -17,551 -22,306 27.1% -58,047 -82,816 42.7%
General & administrative expenses -7,270 -9,273 27.5% -20,208 -31,387 55.3%
Total operating expenses -29,078 -41,551 42.9% -92,540 -146,377 58.2%
             
Income from operations 1,405 6,969 395.9% 8,946 10,674 19.3%
Financial income (expense) -1,647 -3,269 98.5% -1,559 -6,868 340.5%
Income before taxes -242 3,700 -1629.2% 7,387 3,806 -48.5%
Provision for incomes taxes -4,491 -432 -90.4% -6,556 -2,413 -63.2%
Net income (loss) -4,733 3,268 -169.1% 831 1,393 67.6%
 - Net income available to Shareholders of Criteo SA -4,607 3,046   981 1,065  
 - Net income available to non-controlling interests -126 222   -150 328  
             
Net income allocated to shareholders per share            
 - Basic -0.102 0.063   0.022 0.022  
 - Diluted -0.095 0.055   0.020 0.019  
             
Basic 45,143,188 48,692,148   45,143,188 48,692,148  
Diluted 48,586,666 55,262,193   48,586,666 55,262,193  
             
 
 
CRITEO S.A.
Consolidated Statement of Financial Position
(Euros in thousands)
(unaudited)
     
  December 31, December 31,
     
  2012 2013
Goodwill -- 4,191
Intangible assets 721 6,624
Property, plant and equipment  14,566 24,716
Non-current financial assets 6,924 7,627
Deferred tax assets 1,026 4,486
TOTAL NON-CURRENT ASSETS 23,237 47,643
Trade receivables 60,685 87,643
Current tax assets 1,866 8,014
Other current assets 8,080 13,466
Cash and cash equivalents 43,262 234,343
TOTAL CURRENT ASSETS 113,893 343,466
TOTAL ASSETS 137,130 391,109
     
Share capital 1,178 1,421
Additional paid-in capital 46,542 241,468
Currency translation reserve 72 1,384
Consolidated reserves 11,913 19,523
Retained earnings 981 1,065
Equity - attributable to stockholders of Criteo SA 60,686 264,861
Non-controlling interests -245 213
TOTAL STOCKHOLDERS'EQUITY 60,441 265,074
Financial liabilities - non-current portion 4,181 6,208
Retirement benefit obligation 582 925
Deferred tax liabilities 15 303
TOTAL NON-CURRENT LIABILITIES 4,778 7,436
Financial liabilities - current portion 2,072 5,107
Bank overdrafts -- 1
Provisions 755 830
Trade payables 50,340 75,889
Current tax liabilities 3,203 1,549
Other current liabilities 15,541 35,224
TOTAL CURRENT LIABILITIES 71,911 118,600
TOTAL LIABILITIES 76,689 126,036
TOTAL EQUITY AND LIABILITIES 137,130 391,109
     
     
 
CRITEO S.A.
Consolidated Statement of Cash Flows
(Euros in thousands)
(unaudited)
 
  Three Months Ended  Year Ended 
  December 31, December 31,
  2012 2013 2012 2013
Net income -4,732 3,268 831 1,393
Non-cash and non-operating items 7,668 6,570 15,920 21,558
 - Amortization and provisions 1,755 3,762 5,751 12,195
 - Stock-based payment expense 1,372 2,332 3,556 6,876
 - Net gain or loss on disposal of non-current assets 31 34 31 45
 - Interest paid 19 2 19 9
 - Non-cash financial income and expenses 2 8 8 20
 - Change in deferred taxes 219 -2,431 219 -3,697
 - Income tax for the period 4,271 2,863 6,336 6,110
Changes in working capital related to operating activities 7,073 3,842 3,427 12,965
 - (Increase) / decrease in trade receivables -11,248 -16,325 -29,041 -31,433
 - Increase / (decrease) in trade payables 15,455 12,393 30,304 33,704
 - (Increase) / decrease in other current assets 393 4,839 -2,616 -5,560
 - Increase / (decrease) in other current liabilities 2,473 2,935 4,780 16,254
Income taxes paid -2,449 -1,425 -8,366 -11,211
CASH FROM (USED FOR) OPERATING ACTIVITIES 7,560 12,255 11,812 24,705
Acquisition of intangible assets, property, plant and equipment -7,251 -7,187 -13,584 -22,003
Proceeds from disposal of intangible assets, property, plant and equipment 11 20 11 90
FREE CASH FLOW 320 5,088 -1,761 2,792
Investments -- -129 -- -5,414
Sale of investments -38 -- -- --
Change in other non-current financial assets -294 -35 -6,037 -806
CASH FROM (USED FOR) INVESTING ACTIVITIES -7,572 -7,331 -19,610 -28,133
Issuance of long-term borrowings 3,600 -- 6,100 8,000
Repayment of borrowings  -436 -1,192 -436 -3,450
Interests paid -19 -2 -19 -9
Proceeds from capital increase -83 191,725 30,081 192,175
Change in other financial liabilities 357 -- 177 --
CASH FROM (USED FOR) FINANCING ACTIVITIES 3,419 190,531 35,903 196,716
         
CHANGE IN NET CASH & CASH EQUIVALENTS 3,407 195,456 28,105 193,289
Net cash & cash equivalents at beginning of period 40,381 39,838 15,685 43,262
Effect of exchange rates changes on cash and cash equivalents -526 -952 -528 -2,208
Net cash & cash equivalents at end of period 43,262 234,342 43,262 234,342
         
         
 
CRITEO S.A.
Reconciliation of Revenue ex-TAC by Region to Revenue by Region
(Euros in thousands)
(unaudited)
 
    Three Months Ended  Year Ended 
    December 31, December 31,
          Year-over-year       Year-over-year
        Year-over- growth at     Year-over- growth at
  Region 2012 2013 year constant 2012 2013 year constant
        growth currency     growth currency
                   
Revenue Americas 25,740 38,660 50.2% 60.4% 67,787 123,004 81.5% 92.1%
  EMEA 48,791 70,291 44.1% 45.3% 172,499 237,800 37.9% 39.0%
  Asia-Pacific 12,039 26,937 123.7% 179.7% 31,569 83,155 163.4% 222.7%
  Total 86,570 135,889 57.0% 68.5% 271,855 443,960 63.3% 73.6%
                   
                   
Traffic acquisition costs Americas -15,801 -23,552 49.0% 59.4% -40,043 -75,306 88.1% 99.2%
  EMEA -28,754 -41,235 43.4% 44.6% -100,706 -140,416 39.4% 40.7%
  Asia-Pacific -6,685 -16,247 143.0% 204.5% -16,958 -49,230 190.3% 257.1%
  Total -51,240 -81,034 58.1% 70.0% -157,707 -264,952 68.0% 78.8%
                   
                   
Revenue ex-TAC Americas 9,939 15,108 52.0% 62.1% 27,744 47,698 71.9% 81.9%
  EMEA 20,037 29,057 45.0% 46.2% 71,793 97,385 35.6% 36.8%
  Asia-Pacific 5,354 10,690 99.6% 148.7% 14,611 33,925 132.2% 182.8%
  Total 35,330 54,855 55.3% 66.2% 114,148 179,008 56.8% 66.4%
                   
                   
 
CRITEO S.A.
Reconciliation of Adjusted EBITDA to Net Income
(Euros in thousands)
(unaudited)
 
  Three Months Ended  Year Ended 
  December 31, December 31,
  2012 2013 2012 2013
Reconciliation of Adjusted EBITDA to Net income        
Net income (loss) -4,733 3,268 831 1,393
Adjustments:        
Financial income (expense) 1,647 3,269 1,559 6,868
Provision for income taxes 4,491 432 6,556 2,413
Share-based compensation expense 1,372 2,332 3,556 6,876
Research and development 184 581 429 2,049
Sales and operations 649 1,292 1,800 2,801
General and administrative 539 459 1,327 2,026
Service cost - Pension 4 43 110 281
Research and development -- 17 -- 109
Sales and operations -- 21 -- 105
General and administrative 4 5 110 67
Depreciation and amortization expense 1,649 3,899 4,768 11,119
Cost of revenue 1,303 2,696 3,648 7,846
Research and development 52 518 166 915
Sales and operations 259 523 847 1,792
General and administrative 35 162 107 566
Acquisition-related deferred price consideration -- 1,261 -- 2,363
Research and development -- 1,261 -- 2,363
Sales and operations -- -- -- --
General and administrative -- -- -- --
Total net adjustments 9,163 11,236 16,549 29,920
Adjusted EBITDA 4,430 14,504 17,380 31,313
         
         
 
CRITEO S.A.
Detailed Information on Selected Items
(Euros in thousands)
(unaudited)
 
  Three Months Ended  Year Ended 
  December 31, December 31,
  2012 2013 2012 2013
Share-Based Compensation Expense        
Research and development -184 -581 -429 -2,049
Sales and operations -649 -1,292 -1,800 -2,801
General and administrative -539 -459 -1,327 -2,026
Total Share-Based Compensation Expense -1,372 -2,332 -3,556 -6,876
         
Pension costs        
Research and development -- -17 -- -109
Sales and operations -- -21 -- -105
General and administrative -4 -5 -110 -67
Total Pension costs -4 -43 -110 -281
         
Depreciation and Amortization Expense        
Cost of revenue -1,303 -2,696 -3,648 -7,846
Research and development -52 -518 -166 -915
Sales and operations -259 -523 -847 -1,792
General and administrative -35 -162 -107 -566
Total Depreciation and Amortization Expense -1,649 -3,899 -4,768 -11,119
         
Acquisition-related deferred price consideration        
Research and development -- -1,261 -- -2,363
Sales and operations -- -- -- --
General and administrative -- -- -- --
Total acquisition-related deferred price consideration -- -1,261 -- -2,363
         
Acquisition-related amortization of intangible assets        
Research and development -- 350 -- 350
Sales and operations -- -- -- --
General and administrative -- -- -- --
Total acquisition-related amortization of intangible assets -- 350 -- 350
         
         
 
CRITEO S.A.
Reconciliation of Adjusted Net Income to Net Income
(Euros in thousands)
(unaudited)
 
  Three Months Ended Three Months Ended  Year Ended 
  September 30, * December 31, December 31,
  2013 2012 2013 2012 2013
           
Net income (loss) 3,038 -4,733 3,268 831 1,393
Adjustments:          
Share-based compensation expense 1,829 1,372 2,332 3,556 6,876
Amortization of acquisition-related intangible assets -- -- 350 -- 350
Acquisition-related deferred price consideration 1,102 -- 1,261 -- 2,363
Tax impact of the above adjustments -- -- -73 -- -73
Total net adjustments 2,931 1,372 3,870 3,556 9,516
Adjusted net income (loss) 5,969 -3,361 7,138 4,387 10,909
           
 
* We have revised the definition of Adjusted Net Income as historically reported for our third quarter ended September 30, 2013 to exclude the amortization of acquisition-related intangible assets and acquisition-related deferred price consideration in addition to share-based compensation expense
 
 
 
CRITEO S.A.
 Constant Currency Reconciliation
(Euros in thousands)
(unaudited)
 
  Three Months Ended  Twelve Months Ended 
  December 31, December 31,
      Year-     Year-
  2012 2013 over-year 2012 2013 over-year
      growth     growth
Revenue as reported 86,570 135,889 57.0% 271,855 443,960 63.3%
Conversion impact euro/other currencies   9,955     27,985  
Revenue at constant currency 86,570 145,844 68.5% 271,855 471,945 73.6%
             
Traffic acquisition costs as reported 51,240 81,034 58.1% 157,707 264,952 68.0%
Conversion impact euro/other currencies   6,096     17,033  
Traffic acquisition costs at constant currency 51,240 87,130 70.0% 157,707 281,985 78.8%
             
Revenue ex-TAC as reported 35,330 54,855 55.3% 114,148 179,008 56.8%
Conversion impact euro/other currencies   3,859     10,952  
Revenue ex-TAC at constant currency 35,330 58,714 66.2% 114,148 189,960 66.4%
             
Other cost of revenue as reported 4,847 6,334 30.7% 12,662 21,956 73.4%
Conversion impact euro/other currencies   377     1,139  
Other cost of revenue at constant currency 4,847 6,711 38.4% 12,662 23,095 82.4%
             
             
 
CRITEO S.A.
Information on share count
(unaudited)
     
  31/12/12 31/12/13
Shares outstanding as at January 1, 44,200,525 47,123,015
Weighted average number of shares issued during the year 942,663 1,569,133
Basic number of shares - Basic EPS basis 45,143,188 48,692,148
Dilutive effects of share options, warrants, employee warrants - Treasury method 3,443,478 6,570,046
Diluted number of shares - Diluted EPS basis 48,586,666 55,262,194
     
Shares outstanding as at December 31, 47,123,015 56,856,070
Total dilutive effect of share options, warrants, employee warrants 7,245,063 9,060,459
Fully diluted shares as at December 31, 54,368,078 65,916,529
     
     
 
                       
CRITEO S.A.
Supplemental Financial Information and Operating Metrics
(unaudited)
                       
  Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YoY  QoQ
  2011 2012 2012 2012 2012  2013 2013 2013 2013 Change Change
                       
Clients 1,712 2,026 2,447 2,866 3,379 3,811 4,274 4,631 5,072 50.1% 9.5%
                       
Revenue ('000 euros) 48,469 56,493 56,649 72,142 86,571 94,862 99,400 113,811 135,889 57.0% 19.4%
Americas 9,807 10,669 12,577 18,800 25,740 25,025 28,846 30,473 38,660 50.2% 26.9%
EMEA 37,214 42,079 37,863 43,766 48,791 54,434 53,348 59,732 70,291 44.1% 17.7%
APAC 1,448 3,745 6,209 9,575 12,040 15,403 17,206 23,606 26,937 123.7% 14.1%
                       
Revenue ex-TAC ('000 euros) 21,809 24,646 24,856 29,316 35,331 37,306 40,032 46,815 54,855 55.3% 17.2%
Americas 3,923 4,982 5,381 7,443 9,938 9,570 11,124 11,896 15,108 52.0% 27.0%
EMEA 17,334 17,927 16,324 17,506 20,037 21,163 21,807 25,358 29,057 45.0% 14.6%
APAC 552 1,737 3,152 4,367 5,355 6,573 7,101 9,561 10,690 99.6% 11.8%
                       
Cash flow from operating activities ('000 euros) -1,151 3,956 3,441 -3,145 7,561 4,585 4,134 3,731 12,255 62.1% 228.5%
                       
Capital expenditures ('000 euros) 2,455 1,987 1,999 2,347 7,251 2,489 6,590 5,737 7,187 -0.9% 25.3%
                       
Net Cash Position ('000 euros) 15,685 11,571 12,784 40,381 43,262 43,876 47,893 39,839 234,343 441.7% 488.2%
                       
Days Sales Outstanding (days - end of month) 51.7 57.2 55.6 58.4 57.4 58.1 56.7 55.6 53.5 -6.8% -3.8%
                       
                       
 
 
CONTACT: Criteo Investor Relations
         Edouard Lassalle, Head of IR
         e.lassalle@criteo.com

         Denise Garcia, ICR, Inc.
         denise.garcia@icrinc.com

         Criteo Public Relations
         Emma Ferns, Global PR director
         e.ferns@criteo.com