Quarterly Results

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Third Quarter 2015
Criteo Reports Record Results For The Third Quarter 2015 And Reiterates Its Full-Year 2015 Outlook Despite Negative Foreign Exchange Impacts

NEW YORK, Nov. 4, 2015 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO), the performance marketing technology company, today announced financial results for the third quarter ended September 30, 2015.

  • Revenue in the third quarter 2015 increased 54% (or 46% at constant currency1) to €299 million, compared with €194 million in the third quarter 2014.
  • Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, in the third quarter 2015 grew 55% (or 47% at constant currency) to €120 million, compared with €78 million in the third quarter 2014.
  • Net income in the third quarter 2015 was €5 million, compared with €11 million in the third quarter 2014.
  • Adjusted EBITDA for the third quarter 2015 was €31 million, an increase of 58% (or 55% at constant currency), compared with €20 million in the third quarter 2014.

"We're happy that 90% of our clients use our multi-screen solution," said JB Rudelle, co-founder & CEO, "and are excited about the rapid adoption of our "Universal Match" cross-device solution."

"Our investments and our strong execution are paying off, and we're confident we will deliver strong results for the full year," said Benoit Fouilland, Chief Financial Officer.

Operating Highlights

  • For the first time in Criteo's history, our Revenue crossed the €1 billion landmark on a last 12-month basis to reach €1.1 billion.
  • We added over 720 net clients in Q3 2015, while maintaining our client retention rate at over 90%.
  • In September 2015, 90% of our clients were using our multi-screen solution.
  • Clients that were live in both Q3 2014 and Q3 2015 spent more with us, resulting in over 21% more Revenue ex-TAC at constant currency from these clients compared with the prior-year period.
  • Our "Universal Match" cross-device solution is gaining scale. As of September, over 2/3 of our clients were sharing anonymized CRM data with us.
  • Over 1,500 of our advertisers were live on Facebook mobile via our integration with dynamic product ads as of September 30.
  • In September, we generated close to 40% of our Revenue ex-TAC from clients using our enhanced Dynamic Creative Optimization platform.

1 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.

Revenue ex-TAC

Revenue ex-TAC grew 55% in the third quarter 2015, or 47% at constant currency, to €120 million, compared with €78 million in the third quarter 2014. This year-over-year performance was primarily driven by the continued roll-out of our technology improvements across all devices, the addition of a significant number of new clients and the further development of our direct relationships with publishers.

  • In the Americas, Revenue ex-TAC in the third quarter 2015 grew by 88% year-over-year, or 67% at constant currency, to €43 million. The Americas represented over 36% of global Revenue ex-TAC in the third quarter 2015.
  • In EMEA, Revenue ex-TAC in the third quarter 2015 increased by 34% year-over-year, or 33% at constant currency, to €52 million. EMEA represented 43% of global Revenue ex-TAC in the third quarter 2015.
  • In Asia-Pacific, Revenue ex-TAC in the third quarter 2015 increased by 59% year-over-year, or 53% at constant currency, to €25 million. Asia-Pacific represented approximately 21% of global Revenue ex-TAC in the third quarter 2015.

Revenue ex-TAC margin in the third quarter 2015 was 40.2%, in line with prior quarters.

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA for the third quarter 2015 was €31 million, an increase of 58%, or 55% at constant currency, compared with €20 million in the third quarter 2014. This year-over-year increase in Adjusted EBITDA is primarily the result of the strong Revenue ex-TAC performance in the quarter as well as lower than anticipated spending on certain items.

Adjusted EBITDA margin as a percentage of revenue in the third quarter was 10.5%, representing a 0.3 percentage point improvement compared with 10.2% in the third quarter 2014.

Operating expenses in the third quarter 2015 increased by 50% to €88 million compared with the third quarter 2014. Operating expenses in the third 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 €81 million, an increase of 54% compared with the third quarter 2014. This increase is primarily related to headcount growth in Research & Development (56% year-over year) and Sales & Operations (44% year-over-year), as we continued to scale the organization. We intend to continue to invest into Research & Development and Sales & Operations in the fourth quarter of 2015 to support our current and anticipated future growth.

Net Income and Adjusted Net Income

Net income in the third quarter 2015 was €5 million compared with €11 million in the third quarter 2014, primarily as a result of a negative financial income and an exceptionally high effective tax rate in the third quarter 2015. Our financial income was negatively impacted by an exceptionally strong fall in the value of the Brazilian Real against the euro in the third quarter, translating into a non-cash foreign exchange loss on our intragroup position with our Brazilian subsidiary. Net income available to shareholders of Criteo S.A. in the third quarter 2015 was €5 million, or €0.07 per share on a diluted basis, compared with €11 million, or €0.18 per share on a diluted basis, in the third quarter 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, in the third quarter 2015 was €11 million, or €0.16 per share on a diluted basis, compared with €17 million, or €0.26 per share on a diluted basis, in the third quarter 2014.

Cash Flow and Cash Position

  • Cash flow from operating activities in the third quarter 2015 was €16 million, compared with €25 million in the third quarter 2014. This was primarily driven by an unfavorable change in working capital, particularly impacted by an increase in other receivables. Separately, our income taxes paid increased significantly compared with the prior-year period. For the first nine months of 2015, cash flow from operating activities grew 32% to €63 million.
  • Total cash and cash equivalents were €281 million as of September 30, 2015. This represented a decrease of €9 million compared with December 31, 2014, primarily resulting from €14 million in Free Cash Flow generation and €5 million positive cash flow from financing activities over the period, which was more than offset by the cash consideration paid for the acquisition of DataPop, Inc., a €6 million outflow relating to changes in other non-current financial assets as well as a €4 million negative impact of changes in foreign exchange rates on our cash position over the period.

Business Outlook

The following forward-looking statements reflect Criteo's expectations as of November 4, 2015.

Fourth Quarter 2015 Guidance:

  • We expect Revenue ex-TAC for the fourth quarter 2015 to be between €134 million and €139 million.
  • We expect Adjusted EBITDA for the fourth quarter 2015 to be between €39 million and €46 million.

Fiscal Year 2015 Guidance:

  • In spite of a €4 million negative impact from foreign exchange rates as compared to assumptions made as of August 4, 2015, we reiterate our Revenue ex-TAC outlook for the fiscal year 2015, which we expect to be between €470 million and €475 million.
  • In spite of a €2 million negative impact from foreign exchange rates as compared to assumptions made as of August 4, 2015, we reiterate our Adjusted EBITDA outlook for the fiscal year 2015, which we expect to be between €120 million and €127 million. 

The above guidance assumes no additional acquisitions are completed during the fourth quarter 2015.

Non-IFRS Financial Measures

This press release and its attachments include the following financial measures defined as non-IFRS financial measures by the U.S. Securities and Exchange Commission (SEC): Revenue ex-TAC, Revenue ex-TAC by Region, Revenue ex-TAC margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per diluted share, Free Cash Flow, and Non-IFRS Operating Expenses. These measures are not calculated in accordance with the International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS).

Revenue ex-TAC is our revenue excluding Traffic Acquisition Costs (TAC) generated over the applicable measurement period and Revenue ex-TAC by Region reflects our Revenue ex-TAC by our core geographies. Revenue ex-TAC and Revenue ex-TAC by Region are key measures used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue can provide a useful measure for period-to-period comparisons of our core business and across our core geographies. Accordingly, we believe that Revenue ex-TAC 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.

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 measurement. Our use of non-IFRS financial measures has limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under IFRS. 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 other IFRS-based financial performance measures, such as revenue, net income and our other financial results.

With respect to our expectations under "Business Outlook" above, reconciliation of Revenue ex-TAC and Adjusted EBITDA guidance to the closest corresponding IFRS measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-IFRS measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future IFRS financial results.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including projected financial results for the quarter ending December 31, 2015 and the fiscal year ending December 31, 2015, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: recent growth rates not being indicative of future growth, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, the investments in new business opportunities and the timing of these investments, the impact of competition, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, uncertainty regarding international growth and expansion, and the financial impact of maximizing Revenue ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in the Company's SEC filings and reports, including the Company's Annual Report on Form 20-F filed with the SEC on March 27, 2015, as well as future filings and reports by the Company. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Conference Call Information

Criteo will hold a conference call today, November 4, 2015, at 8:00am ET, 2:00pm CET, to discuss third quarter 2015 operating and financial results, as well as other forward-looking information.

Conference call details are:

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

Please ask to be joined into the "Criteo S.A." call.
The conference call will also be webcast simultaneously at ir.criteo.com.

About Criteo

Criteo delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to measure. Criteo has over 1,700 employees in 27 offices across the Americas, EMEA and Asia-Pacific, serving over 9,250 advertisers worldwide and with direct relationships with over 11,000 publishers.

For more information, please visit www.criteo.com.

 

CRITEO S.A.

Consolidated Statement of Income

(Euros in thousands, except per share data)

(unaudited)

 
 

Three Months Ended 

     

Nine Months Ended 

   
 

September 30,

     

September 30,

   
 

2014

 

2015

 

Year-over-year
growth

 

2014

 

2015

 

Year-over-year
growth

Revenue

194,449

 

299,299

 

53.9%

 

512,285

 

831,681

 

62.3%

                       

Cost of revenue

                     

Traffic Acquisition cost (TAC)

(116,853)

 

(179,007)

 

53.2%

 

(304,933)

 

(495,775)

 

62.6%

Other cost of revenue

(9,347)

 

(15,476)

 

65.6%

 

(25,096)

 

(39,887)

 

58.9%

                       

Gross Profit

68,249

 

104,816

 

53.6%

 

182,256

 

296,019

 

62.4%

                       

Research & development expenses

(12,244)

 

(20,134)

 

64.4%

 

(33,102)

 

(54,097)

 

63.4%

Sales & operations expenses

(34,715)

 

(50,449)

 

45.3%

 

(93,724)

 

(151,372)

 

61.5%

General & administrative expenses

(12,192)

 

(17,885)

 

46.7%

 

(35,090)

 

(52,000)

 

48.2%

Total operating expenses

(59,151)

 

(88,468)

 

49.6%

 

(161,916)

 

(257,469)

 

59.0%

                       

Income from operations

9,098

 

16,348

 

79.7%

 

20,340

 

38,550

 

89.5%

Financial income

5,560

 

(5,970)

 

-207.4%

 

7,323

 

(4,737)

 

-164.7%

Income before taxes

14,658

 

10,378

 

-29.2%

 

27,663

 

33,813

 

22.2%

Provision for income taxes

(3,185)

 

(4,899)

 

53.8%

 

(9,939)

 

(12,550)

 

26.3%

Net income (loss)

11,473

 

5,479

 

-52.2%

 

17,724

 

21,263

 

20.0%

- Net income(loss) available to shareholders of Criteo SA

11,377

 

4,852

     

17,102

 

19,718

   

- Net income (loss) available to non-controlling interests

96

 

627

     

622

 

1,545

   
                       

Net income (loss) allocated to shareholders per share

                     

 - Basic

0.19

 

0.08

     

0.29

 

0.32

   

 - Diluted

0.18

 

0.07

     

0.27

 

0.31

   
                       

Weighted average shares outstanding used in computing per share amounts

                     

Basic

59,600,319

 

62,082,110

     

58,392,127

 

61,662,308

   

Diluted

63,424,710

 

65,254,238

     

63,074,025

 

64,629,516

   

 

CRITEO S.A.

Consolidated Statement of Financial Position

(Euros in thousands)

(unaudited)

 
   

December 31,

 

September 30, 

   

2014

 

2015

Goodwill

 

22,944

 

38,091

Intangible assets

 

10,560

 

12,780

Property, plant and equipment 

 

43,027

 

77,997

Non-current financial assets

 

9,494

 

15,284

Deferred tax assets

 

7,113

 

8,315

TOTAL NON-CURRENT ASSETS

 

93,138

 

152,467

Trade receivables

 

158,633

 

185,798

Current tax assets

 

2,883

 

2,998

Other current assets

 

21,021

 

42,747

Cash and cash equivalents

 

289,784

 

280,857

TOTAL CURRENT ASSETS

 

472,322

 

512,400

TOTAL ASSETS

 

565,459

 

664,867

         

Share capital

 

1,523

 

1,556

Additional paid-in capital

 

265,522

 

274,492

Currency translation reserve

 

4,804

 

10,321

Consolidated reserves

 

35,302

 

85,186

Retained earnings

 

34,354

 

19,719

Equity - attributable to shareholders of Criteo SA

 

341,505

 

391,274

Non-controlling interests

 

1,433

 

3,225

TOTAL EQUITY

 

342,938

 

394,499

Financial liabilities - non-current portion

 

4,333

 

3,195

Retirement benefit obligation

 

1,024

 

1,162

Deferred tax liabilities

 

946

 

1,739

TOTAL NON-CURRENT LIABILITIES

 

6,303

 

6,096

Financial liabilities - current portion

 

7,841

 

7,623

Provisions

 

1,131

 

496

Trade payables

 

135,557

 

167,104

Current tax liabilities

 

7,969

 

12,198

Other current liabilities

 

63,719

 

76,851

TOTAL CURRENT LIABILITIES

 

216,217

 

264,272

TOTAL LIABILITIES

 

222,520

 

270,368

TOTAL EQUITY AND LIABILITIES

 

565,459

 

664,867

         

 

 

CRITEO S.A.

Consolidated Statement of Cash Flows

(Euros in thousands)

(unaudited)

 
   

Three Months Ended 

 

Nine Months Ended 

   

September 30,

 

September 30,

   

2014

 

2015

 

2014

 

2015

Net income (loss)

 

11,473

 

5,479

 

17,724

 

21,263

Non-cash and non-operating items

 

14,507

 

20,878

 

37,552

 

56,377

                 - Amortization and provisions

 

6,842

 

11,903

 

17,484

 

29,134

                 - Share-based payment expense

 

4,315

 

4,137

 

9,938

 

14,595

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

 

(42)

 

53

 

(4)

 

76

                 - Interest paid

 

3

 

2

 

12

 

8

                 - Non-cash financial income and expenses

 

204

 

(117)

 

183

 

15

                 - Change in deferred taxes

 

(343)

 

(828)

 

566

 

(2,756)

                 - Income tax for the period

 

3,528

 

5,728

 

9,373

 

15,305

Changes in working capital related to operating activities

 

374

 

(6,695)

 

(8,739)

 

(2,521)

                 - (Increase) / decrease in trade receivables

 

(12,434)

 

(13,299)

 

(36,253)

 

(24,644)

                 - Increase / (decrease) in trade payables

 

8,179

 

10,722

 

24,518

 

35,498

                 - (Increase) / decrease in other current assets

 

550

 

(7,903)

 

(6,586)

 

(22,148)

                 - Increase / (decrease) in other current liabilities

 

4,079

 

3,785

 

9,582

 

8,773

Income taxes paid

 

(873)

 

(3,895)

 

1,543

 

(11,886)

CASH FROM OPERATING ACTIVITIES

 

25,480

 

15,768

 

48,079

 

63,233

Acquisition of intangible assets, property, plant and equipment

 

(11,156)

 

(21,513)

 

(25,396)

 

(49,510)

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

36

 

-

 

50

 

-

FREE CASH FLOW

 

14,361

 

(5,746)

 

22,734

 

13,723

Investments

 

-

 

-

 

(18,775)

 

(18,008)

Change in other non-current financial assets

 

(469)

 

(947)

 

(1,207)

 

(5,650)

CASH USED FOR INVESTING ACTIVITIES

 

(11,589)

 

(22,460)

 

(45,328)

 

(73,168)

Issuance of long-term borrowings

 

54

 

711

 

3,054

 

2,859

Repayment of borrowings 

 

(1,240)

 

(1,367)

 

(3,706)

 

(5,580)

Interests paid

 

(3)

 

35

 

(12)

 

61

Proceeds from capital increase

 

1,346

 

3,230

 

20,124

 

9,002

Change in other financial liabilities

 

150

 

2

 

157

 

(906)

CASH FROM (USED FOR) FINANCING ACTIVITIES

 

307

 

2,611

 

19,617

 

5,436

                 

CHANGE IN NET CASH & CASH EQUIVALENTS

 

14,199

 

(4,081)

 

22,369

 

(4,499)

Net cash & cash equivalents at beginning of period

 

242,895

 

286,986

 

234,342

 

289,784

Effect of exchange rates changes on cash and cash equivalents

 

(374)

 

(2,048)

 

8

 

(4,428)

Net cash & cash equivalents at end of period

 

256,719

 

280,857

 

256,719

 

280,857

 

 

CRITEO S.A.

Reconciliation of Revenue ex-TAC by Region to Revenue by Region

(Euros in thousands)

(unaudited)

 
     

Three Months Ended 

             

Nine Months Ended 

       
     

September 30,

             

September 30,

       
 

Region

 

2014

 

2015

 

Year-over-year
growth

 

Year-over-year
growth at constant currency

 

Region

 

2014

 

2015

 

Year-over-year
growth

 

Year-over-year
growth at constant currency

                                       

Revenue

Americas

 

58,602

 

111,566

 

90.4%

 

69.4%

 

Americas

 

143,174

 

301,289

 

110.4%

 

81.3%

 

EMEA

 

93,885

 

123,445

 

31.5%

 

30.6%

 

EMEA

 

261,925

 

355,801

 

35.8%

 

34.3%

 

Asia-Pacific

41,962

 

64,288

 

53.2%

 

47.7%

 

Asia-Pacific

107,186

 

174,591

 

62.9%

 

53.3%

 

Total

 

194,449

 

299,299

 

53.9%

 

46.0%

 

Total

 

512,285

 

831,681

 

62.3%

 

51.4%

                                       
                                       

Traffic acquisition costs

Americas

 

(35,496)

 

(68,081)

 

91.8%

 

70.6%

 

Americas

 

(86,743)

 

(182,986)

 

111.0%

 

81.9%

 

EMEA

 

(55,219)

 

(71,728)

 

29.9%

 

29.0%

 

EMEA

 

(152,836)

 

(207,466)

 

35.7%

 

34.1%

 

Asia-Pacific

(26,138)

 

(39,198)

 

50.0%

 

44.7%

 

Asia-Pacific

(65,354)

 

(105,323)

 

61.2%

 

52.0%

 

Total

 

(116,853)

 

(179,007)

 

53.2%

 

45.2%

 

Total

 

(304,933)

 

(495,775)

 

62.6%

 

51.6%

                                       
                                       

Revenue ex-TAC

Americas

 

23,106

 

43,485

 

88.2%

 

67.4%

 

Americas

 

56,431

 

118,303

 

109.6%

 

80.5%

 

EMEA

 

38,666

 

51,718

 

33.8%

 

32.9%

 

EMEA

 

109,089

 

148,335

 

36.0%

 

34.6%

 

Asia-Pacific

15,824

 

25,089

 

58.6%

 

52.5%

 

Asia-Pacific

41,832

 

69,268

 

65.6%

 

55.2%

 

Total

 

77,596

 

120,292

 

55.0%

 

47.1%

 

Total

 

207,352

 

335,906

 

62.0%

 

51.3%

 

 

CRITEO S.A.

Reconciliation of Adjusted EBITDA to Net Income

(Euros in thousands)

(unaudited)

 
 

Three Months Ended 

 

Nine Months Ended 

 

September 30,

 

September 30,

 

2014

 

2015

 

2014

 

2015

Net income (loss)

11,473

 

5,479

 

17,724

 

21,263

Adjustments:

             

Financial (income) expense

(5,560)

 

5,970

 

(7,323)

 

4,737

Provision for income taxes

3,185

 

4,899

 

9,939

 

12,550

Share-based compensation expense

4,315

 

4,137

 

9,938

 

14,595

Research and development

984

 

1,538

 

2,076

 

3,915

Sales and operations

2,531

 

1,545

 

6,452

 

7,253

General and administrative

800

 

1,054

 

1,409

 

3,427

Service cost-pension

95

 

99

 

277

 

298

Research and development

32

 

37

 

95

 

110

Sales and operations

38

 

33

 

105

 

103

General and administrative

25

 

29

 

77

 

85

Depreciation and amortization expense

6,217

 

10,696

 

16,401

 

27,482

Cost of revenue

4,245

 

7,648

 

11,167

 

19,114

Research and development

1,059

 

1,520

 

2,723

 

4,328

Sales and operations

701

 

1,196

 

1,908

 

3,083

General and administrative

213

 

332

 

604

 

957

Acquisition-related deferred price consideration

101

 

49

 

620

 

250

Research and development

101

 

49

 

620

 

250

Sales and operations

-

 

-

 

-

 

-

General and administrative

-

 

-

 

-

 

-

Total net adjustments

8,351

 

25,850

 

29,852

 

59,912

Adjusted EBITDA

19,828

 

31,329

 

47,578

 

81,175

 

 

CRITEO S.A.

Detailed Information on Selected Items

(Euros in thousands)

(unaudited)

 
 

Three Months Ended 

 

Nine Months Ended 

 

September 30,

 

September 30,

 

2014

 

2015

 

2014

 

2015

Share-Based Compensation Expense

             

Research and development

984

 

1,538

 

2,076

 

3,915

Sales and operations

2,531

 

1,545

 

6,452

 

7,253

General and administrative

800

 

1,054

 

1,409

 

3,427

Total Share-Based Compensation Expense

4,315

 

4,137

 

9,938

 

14,595

               

Pension costs

             

Research and development

32

 

37

 

95

 

110

Sales and operations

38

 

33

 

105

 

103

General and administrative

25

 

29

 

77

 

85

Total Pension costs

95

 

99

 

277

 

298

               

Depreciation and Amortization Expense

             

Cost of revenue

4,245

 

7,648

 

11,167

 

19,114

Research and development

1,059

 

1,520

 

2,723

 

4,328

Sales and operations

701

 

1,196

 

1,908

 

3,083

General and administrative

213

 

332

 

604

 

957

Total Depreciation and Amortization Expense

6,217

 

10,696

 

16,401

 

27,482

               

Acquisition-related deferred price consideration

             

Research and development

101

 

49

 

620

 

250

Sales and operations

-

 

-

 

-

 

-

General and administrative

-

 

-

 

-

 

-

Total Acquisition-related deferred price consideration

101

 

49

 

620

 

250

 

 

 

CRITEO S.A.

Reconciliation of Adjusted Net Income to Net Income

(Euros in thousands)

(unaudited)

 
 

Three Months Ended 

 

Nine Months Ended 

 

September 30,

 

September 30,

 

2014

 

2015

 

2014

 

2015

               

Net income (loss)

11,473

 

5,479

 

17,724

 

21,263

Adjustments:

             

Share-based compensation expense

4,315

 

4,137

 

9,938

 

14,595

Amortization of acquisition-related intangible assets

976

 

1,080

 

2,102

 

3,407

Acquisition-related deferred price consideration

101

 

49

 

620

 

250

Tax impact of the above adjustments

(132)

 

(211)

 

(348)

 

(746)

Total net adjustments

5,260

 

5,055

 

12,312

 

17,506

Adjusted net income (loss)

16,732

 

10,534

 

30,036

 

38,769

               

Adjusted net income per share

             

 - Basic

0.28

 

0.17

 

0.51

 

0.63

 - Diluted

0.26

 

0.16

 

0.48

 

0.60

               

Weighted average shares outstanding used in computing per share amounts

             
             

Basic

59,600,319

 

62,082,110

 

58,392,127

 

61,662,308

Diluted

63,424,710

 

65,254,238

 

63,074,025

 

64,629,516

 

 

CRITEO S.A.

Constant Currency Reconciliation

(Euros in thousands)

(unaudited)

 
 
   

Three Months Ended 

     

Nine Months Ended 

   
   

September 30,

     

September 30,

   
   

2014

 

2015

 

Year-over-year
growth

 

2014

 

2015

 

Year-over-year
growth

Revenue as reported

 

194,449

 

299,299

 

53.9%

 

512,285

 

831,681

 

62.3%

Conversion impact euro/other currencies

     

(15,464)

         

(55,920)

   

Revenue at constant currency

 

194,449

 

283,835

 

46.0%

 

512,285

 

775,761

 

51.4%

                         

Traffic acquisition costs as reported

 

116,853

 

179,007

 

53.2%

 

304,933

 

495,775

 

62.6%

Conversion impact euro/other currencies

     

(9,348)

         

(33,646)

   

Traffic acquisition costs at constant currency

116,853

 

169,659

 

45.2%

 

304,933

 

462,129

 

51.6%

                         

Revenue ex-TAC as reported

 

77,596

 

120,292

 

55.0%

 

207,352

 

335,906

 

62.0%

Conversion impact euro/other currencies

     

(6,116)

         

(22,273)

   

Revenue ex-TAC at constant currency

 

77,596

 

114,176

 

47.1%

 

207,352

 

313,633

 

51.3%

Revenue ex-TAC / Revenue as reported

 

39.9%

 

40.2%

     

40.5%

 

40.4%

   
                         

Other cost of revenue as reported

 

9,347

 

15,476

 

65.6%

 

25,096

 

39,887

 

58.9%

Conversion impact euro/other currencies

     

(1,484)

         

(4,215)

   

Other cost of revenue at constant currency

 

9,347

 

13,992

 

49.7%

 

25,096

 

35,672

 

42.1%

                         

Adjusted EBITDA

 

19,828

 

31,329

 

58.0%

 

47,578

 

81,175

 

70.6%

Conversion impact euro/other currencies

     

(569)

         

(1,925)

   

Adjusted EBITDA at constant currency

 

19,828

 

30,760

 

55.1%

 

47,578

 

79,250

 

66.6%

 

 

CRITEO S.A.

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

 

1,536,057

 

759,613

Basic number of shares as at June 30, - Basic EPS basis

 

58,392,127

 

61,662,308

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

4,681,898

 

2,967,209

Diluted number of shares as at June 30, - Diluted EPS basis

 

63,074,025

 

64,629,517

         

Shares outstanding as at September 30,

 

60,019,594

 

62,249,428

Total dilutive effect of share options, warrants, employee warrants

 

7,949,211

 

6,582,870

Fully diluted shares as at  September 30,

 

67,968,805

 

68,832,298

 

 

CRITEO S.A.

Supplemental Financial Information and Operating Metrics

(unaudited)

 
     

Q2
2013

Q3
2013

Q4
2013

Q1
2014

Q2
2014

Q3
2014

Q4
2014

Q1
2015

Q2
2015

Q3
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

41.2%

8.5%

                             
   

Revenue ('000 euros)

99,400

113,811

135,889

152,520

165,317

194,449

232,796

261,523

270,859

299,299

53.9%

10.5%

   

Americas

28,846

30,473

38,660

37,630

46,942

58,602

85,598

89,460

100,262

111,566

90.4%

11.3%

   

EMEA

53,348

59,732

70,291

83,853

84,187

93,885

104,480

117,532

114,824

123,445

31.5%

7.5%

   

APAC

17,206

23,606

26,937

31,037

34,187

41,962

42,718

54,531

55,773

64,288

53.2%

15.3%

                             
   

Revenue ex-TAC ('000 euros)

40,032

46,815

54,855

62,733

67,022

77,596

96,303

105,160

110,455

120,292

55.0%

8.9%

   

Americas

11,124

11,896

15,108

14,725

18,600

23,106

33,432

35,015

39,803

43,485

88.2%

9.3%

   

EMEA

21,807

25,358

29,057

35,320

35,101

38,666

46,030

48,050

48,569

51,718

33.8%

6.5%

   

APAC

7,101

9,561

10,690

12,688

13,321

15,824

16,841

22,095

22,083

25,089

58.6%

13.6%

                             
   

Cash flow from operating activities ('000 euros)

4,134

3,731

12,255

11,437

11,162

25,481

39,555

36,421

11,045

15,768

-38.1%

42.8%

                             
   

Capital expenditures ('000 euros)

6,590

5,737

7,187

3,781

10,459

11,156

9,993

11,436

16,561

21,513

92.8%

29.9%

                             
   

Net Cash Position ('000 euros)

47,893

39,839

234,343

241,786

242,895

256,719

289,784

294,057

286,986

280,857

9.4%

-2.1%

                             
   

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

-2.4%

-0.3%

                             

 

 

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SOURCE Criteo S.A.

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