News

Criteo Reports Solid Results For The Third Quarter 2019 And Appoints Megan Clarken As Chief Executive Officer

NEW YORK, Oct. 30, 2019 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO), the advertising platform for the open Internet, today announced financial results for the third quarter ended September 30, 2019.

  • Revenue decreased 1% year-over-year to $523 million, and growth was flat at constant currency1.
  • Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC2, decreased 1% year-over-year and Revenue ex-TAC growth was flat at constant currency, to $221 million (or $223 million at the Q3 guidance exchange rates), representing 42% of revenue.
  • Net income increased 15% year-over-year to $21 million.
  • Adjusted EBITDA2 was $64 million, or 29% of Revenue ex-TAC.
  • Cash flow from operating activities was $43 million and Free Cash Flow2 reached $19 million.
  • Our cash position was $409 million as of September 30, 2019.
  • Earnings per diluted share increased 12% to $0.28.
  • We update our 2019 outlook for Revenue ex-TAC growth and maintain our Adjusted EBITDA margin outlook.
  • The Company appoints Megan Clarken as new Chief Executive Officer, effective November 25, 2019.

"We have reached key milestones in our transformative journey," said JB Rudelle, CEO. "With a clear direction and augmented leadership, I am confident Criteo will succeed as the leading tech platform for the open Internet."

"Our solid Q3 results show continued progress on our transformation," said Benoit Fouilland, CFO. "We are committed to making our revenue more resilient and sustainable, and to drive efficiency across the company."

Operating Highlights

  • Revenue ex-TAC from new solutions, which include all solutions outside of retargeting, represented 11% of total, growing 57% year-over-year.
  • Among new solutions, Retail Media grew 25% on a Revenue ex-TAC basis.
  • Web Consideration, our new product for driving traffic on our clients' websites launched in Q3 and priced on a Cost-Per-Impression (or CPM) basis, was already live with 400 clients.
  • We added 238 net new clients in Q3, and maintained client retention at close to 90% for all products.
  • Same-client revenue3 decreased slightly less than 3% year-over-year at constant currency and same-client Revenue ex-TAC3 decreased 4% year-over-year at constant currency.
  • Criteo Direct Bidder, our header-bidding technology now connects to over 4,000 web publishers and over 200 app developers providing direct access to quality inventory.

Revenue and Revenue ex-TAC

Revenue declined 1% year-over-year to $523 million (Q3 2018: $529 million), and growth was flat at constant currency. Revenue ex-TAC decreased 1% year-over-year to $221 million (Q3 2018: $223 million), and growth was flat at constant currency. The performance at constant currency was primarily driven by our business with new clients, in particular in the midmarket, offsetting a slight decline in our business with existing clients, despite continued adoption of our new solutions across our client base. Revenue ex-TAC as a percentage of revenue, or Revenue ex-TAC margin, was 42% (Q3 2018: 42%).

  • In the Americas, Revenue grew 1% year-over-year, or 1% at constant currency, to $214 million and represented 41% of total Revenue. Revenue ex-TAC growth was flat year-over-year, or flat at constant currency, to $85 million and represented 38% of total Revenue ex-TAC.
  • In EMEA, Revenue declined 5% year-over-year, or 1% at constant currency, to $186 million and represented 35% of total Revenue. Revenue ex-TAC declined 3% year-over-year, or grew 1% at constant currency, to $82 million and represented 37% of total Revenue ex-TAC.
  • In Asia-Pacific, Revenue increased 1% year-over-year, or declined 1% at constant currency, to $123 million and represented 24% of total Revenue. Revenue ex-TAC declined 1% year-over-year, or 2% at constant currency, to $54 million and represented 25% of total Revenue ex-TAC.

Net Income and Adjusted Net Income

Net income increased 15% year-over-year to $21 million (Q3 2018: $18 million). Net income margin as a percentage of revenue was 4% (Q3 2018: 3%), a 50-basis point increase year-over-year. Net income available to shareholders of Criteo S.A. increased 10% year-over-year to $19 million, or $0.28 per share on a diluted basis (Q3 2018: $17 million, or $0.25 per share on a diluted basis).

Adjusted Net Income, or net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs and deferred price consideration, restructuring costs and the tax impact of these adjustments, decreased 2% year-over-year to $35 million, or $0.54 per share on a diluted basis (Q3 2018: $36 million, or $0.53 per share on a diluted basis).

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA declined 8% year-over-year, or 3% at constant currency, to $64 million (Q3 2018: $70 million), primarily driven by the Revenue ex-TAC performance over the period. Adjusted EBITDA as a percentage of Revenue ex-TAC, which we refer to as Adjusted EBITDA margin, was 29% (Q3 2018: 31%), a 80-basis point decrease year-over-year at constant currency.

Operating expenses declined 3% to $160 million (Q3 2018: $165 million). Operating expenses, excluding the impact of equity awards compensation expense, pension costs, restructuring costs, depreciation and amortization and acquisition-related costs and deferred price consideration, which we refer to as Non-GAAP Operating Expenses, were flat at $138 million (Q3 2018: $138 million), demonstrating our disciplined expense management.

Cash Flow and Cash Position

Cash flow from operating activities decreased 14% year-over-year to $43 million (Q3 2018: $50 million). Free Cash Flow, defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment, decreased 6% year-over-year to $19 million (Q3 2018: $21 million), representing 30% of Adjusted EBITDA (Q3 2018: 30%) and 44% for the first nine months 2019.

Cash and cash equivalents increased $45 million in the first nine months of 2019 to $409 million.

Criteo Appoints Megan Clarken as Chief Executive Officer

The Company announced today the appointment of Megan Clarken as Chief Executive Officer, effective November 25, 2019.

Megan Clarken spent fifteen years in various positions at Nielsen Holdings plc, and was recently Chief Commercial Officer of Nielsen Global Media. Born in New Zealand and living in New York, Megan Clarken brings to Criteo extensive global leadership experience and very strong industry expertise. Her deep know-how in product and partnerships, combined with a proven track record of driving complex company transformations, will be very valuable to the company.

Criteo's founder JB Rudelle remains committed as Chairman of the Board of directors. He will ensure a smooth transition until Criteo reports its fiscal year 2019 results.

Business Outlook

The following forward-looking statements reflect Criteo's expectations as of October 30, 2019.

We are taking a more moderate approach to our business outlook in the fourth quarter to reflect the softer trend in our business with large customers, in particular in the mobile app area, and the uncertainty around the impact this trend may have on the Holiday Season this year.

Fourth quarter 2019 guidance:

  • We expect Revenue ex-TAC to be between $255 million and $261 million, implying constant-currency growth of approximately -5% to -3%.
  • We expect Adjusted EBITDA to be between $99 million and $105 million.

Fiscal year 2019 guidance:

  • With a more moderate outlook for Q4, we now expect to achieve the low end of our Revenue ex-TAC guidance for fiscal year 2019 as communicated on July 30, 2019. As a result, we now expect approximately flat Revenue ex-TAC growth at constant currency in fiscal year 2019.
  • We maintain our outlook and expect Adjusted EBITDA margin for fiscal year 2019 of approximately 30% of Revenue ex-TAC.

The above guidance for the quarter and the fiscal year ending December 30, 2019, assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.895, a U.S. dollar-Japanese Yen rate of 109, a U.S. dollar-British pound rate of 0.792 and a U.S. dollar-Brazilian real rate of 3.938.

The above guidance assumes no acquisitions are completed during the fourth quarter and the fiscal year ending December 31, 2019.

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 equity awards compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. The variability of the above charges could potentially have a significant impact on our future U.S. GAAP financial results.

Non-GAAP Financial Measures

This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission (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-GAAP Operating Expenses. These measures are not calculated in accordance with 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 geographies. Revenue ex-TAC, Revenue ex-TAC by Region and Revenue ex-TAC margin 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 business and across our geographies.

Accordingly, we believe that Revenue ex-TAC, Revenue ex-TAC by Region and Revenue ex-TAC margin 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 consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. Adjusted EBITDA and Adjusted EBITDA margin are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short‑ and long-term operational plans. In particular, we believe that by eliminating equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration, Adjusted EBITDA and Adjusted EBITDA margin can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Adjusted Net Income is our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs and deferred price consideration, restructuring costs and the tax impact of these adjustments. Adjusted Net Income and Adjusted Net Income per diluted share are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital.

In particular, we believe that by eliminating equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs and deferred price consideration, restructuring costs and the tax impact of these adjustments, Adjusted Net Income and Adjusted Net Income per diluted share can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted Net Income and Adjusted Net Income per diluted share provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

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

Non-GAAP Operating Expenses are our consolidated operating expenses adjusted to eliminate the impact of depreciation and amortization, equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures the Company uses to provide its quarterly and annual business outlook to the investment community.

Please refer to the supplemental financial tables provided in the appendix of this press release for a reconciliation of Revenue ex-TAC to revenue, Revenue ex-TAC by Region to revenue by region, Revenue ex-TAC for Retail Media, Adjusted EBITDA to net income, Adjusted Net Income to net income, Free Cash Flow to cash flow from operating activities, and Non-GAAP Operating Expenses to operating expenses, in each case, the most comparable U.S. GAAP measure. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider such non-GAAP measures in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: 1) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and 2) other companies may report Revenue ex-TAC, Revenue ex-TAC by Region, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-GAAP Operating Expenses or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our U.S. GAAP financial results, including revenue and net income.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including projected financial results for the quarter and the fiscal year ending December 31, 2019, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure related to our technology and our ability to respond to changes in technology, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions materialize as expected, uncertainty regarding international growth and expansion, the impact of competition, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith, failure to enhance our brand cost-effectively, recent growth rates not being indicative of future growth, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, 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 10-K filed with the SEC on March 1, 2019, and in subsequent Quarterly Reports on Form 10-Q 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, October 30, 2019, at 8:00 AM ET, 1:00 PM 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:

+1 855 209 8212

•      International callers:

+1 412 317 0788 or +33 1 76 74 05 02

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

About Criteo

Criteo (NASDAQ: CRTO) is the advertising platform for the open Internet, an ecosystem that favors neutrality, transparency and inclusiveness. 2,800 Criteo team members partner with 20,000 customers and thousands of publishers around the globe to deliver effective advertising across all channels, by applying advanced machine learning to unparalleled data sets. Criteo empowers companies of all sizes with the technology they need to better know and serve their customers. For more information, please visit www.criteo.com.









1 Constant currency measures excludes the impact of foreign currency fluctuations and is computed by applying the 2018 average exchange rates for the relevant period to 2019 figures.

2 Revenue ex-TAC, Revenue ex-TAC margin, Revenue ex-TAC for Retail Media, Adjusted EBITDA, Adjusted EBITDA at constant currency Adjusted EBITDA margin, Adjusted net Income per diluted share, Free Cash Flow and growth at constant currency are not measures calculated in accordance with U.S. GAAP.

3 Same-client revenue or Revenue ex-TAC is the revenue or Revenue ex-TAC generated by clients that were live with us in a given quarter and still live with us the same quarter in the following year.

Contacts

Criteo Investor Relations
Edouard Lassalle, VP, Head of IR, e.lassalle@criteo.com
Friederike Edelmann, IR Director, f.edelmann@criteo.com

Criteo Public Relations
Isabelle Leung-Tack, VP, Global Communications, i.leungtack@criteo.com

Financial information to follow

CRITEO S.A.

Consolidated Statement of Financial Position

(U.S. dollars in thousands, unaudited)




December 31, 2018


September 30, 2019

Assets





Current assets:





Cash and cash equivalents


$

364,426



$

409,178


 Trade receivables, net of allowances of $25.9 million and $15.8 million at December 31, 2018 and September 30, 2019, respectively


473,901



356,699


Income taxes


19,370



22,412


Other taxes


53,338



52,810


Other current assets


22,816



18,165


Total current assets


933,851



859,264


Property, plant and equipment, net


184,013



197,522


Intangible assets, net


112,036



95,701


Goodwill


312,881



314,872


Right of Use Asset - operating lease (1)




169,921


Non-current financial assets


20,460



21,251


Deferred tax assets


33,894



43,357


    Total non-current assets


663,284



842,624


Total assets


$

1,597,135



$

1,701,888







Liabilities and shareholders' equity





Current liabilities:





Trade payables


$

425,376



$

322,284


Contingencies


2,640



4,183


Income taxes


7,725



2,751


Financial liabilities - current portion


1,018



2,827


Lease liability - operating - current portion (1)




49,367


Other taxes


55,592



48,313


Employee - related payables


65,878



59,824


Other current liabilities


47,115



38,868


Total current liabilities


605,344



528,417


Deferred tax liabilities


10,770



8,208


Retirement benefit obligation


5,537



8,740


Financial liabilities - non current portion


2,490



937


Lease liability - operating - non current portion (1)




135,841


Other non-current liabilities


5,103



5,340


    Total non-current liabilities


23,900



159,066


Total liabilities


629,244



687,483


Commitments and contingencies





Shareholders' equity:





Common shares, €0.025 par value, 67,708,203 and 66,173,983 shares authorized, issued and outstanding at December 31, 2018 and September 30, 2019, respectively.


2,201



2,157


Treasury stock, 3,459,119 and 1,807,251 shares at cost as of December 31, 2018 and  September 30, 2019, respectively.


(79,159)



(38,774)


Additional paid-in capital


663,281



663,439


Accumulated other comprehensive (loss)


(30,522)



(58,382)


Retained earnings


387,869



414,594


Equity - attributable to shareholders of Criteo S.A.


943,670



983,034


Non-controlling interests


24,221



31,371


Total equity


967,891



1,014,405


Total equity and liabilities


$

1,597,135



$

1,701,888



(1)  Effective January 1, 2019 we have adopted ASC 842, Leases. We have elected the modified retrospective transition method and not restated comparative prior periods.  Upon adoption, we recognized total operating lease liabilities of $223.5 million and operating right-of-use assets of $204.3 million.

 

CRITEO S.A.

Consolidated Statement of Income

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




Three Months Ended




Nine Months Ended





September 30,




September 30,





2018


2019


YoY
Change


2018


2019


YoY
Change














Revenue


$

528,869



$

522,606



(1)

%


$

1,630,218



$

1,608,876



(1)

%














Cost of revenue













Traffic acquisition cost


(305,387)



(301,901)



(1)

%


(936,096)



(928,559)



(1)

%

Other cost of revenue


(32,921)



(31,101)



(6)

%


(92,937)



(86,205)



(7)

%














Gross profit


190,561



189,604



(1)

%


601,185



594,112



(1)

%














Operating expenses:













Research and development expenses


(41,796)



(41,414)



(1)

%


(134,658)



(132,006)



(2)

%

Sales and operations expenses


(90,526)



(85,985)



(5)

%


(278,901)



(277,397)



(1)

%

General and administrative expenses


(32,463)



(32,835)



1

%


(102,698)



(102,372)



(0.3)

%

Total Operating expenses


(164,785)



(160,234)



(3)

%


(516,257)



(511,775)



(0.9)

%

Income from operations


25,776



29,370



14

%


84,928



82,337



(3)

%

Financial income (expense)


(1,007)



(900)



(11)

%


(3,338)



(4,228)



27

%

Income before taxes


24,769



28,470



15

%


81,590



78,109



(4)

%

Provision for income taxes


(6,821)



(7,913)



16

%


(27,845)



(23,614)



(15)

%

Net Income


$

17,948



$

20,557



15

%


$

53,745



$

54,495



1

%














Net income available to shareholders of Criteo S.A.


$

17,143



$

18,778



10

%


$

50,678



$

48,721



(4)

%

Net income available to non-controlling interests


$

805



$

1,779



NM


$

3,067



$

5,774



88

%














Weighted average shares outstanding used in computing per share amounts:













Basic


67,075,453



64,868,545





66,531,371



64,600,869




Diluted


68,625,673



66,067,045





67,864,802



65,916,219

















Net income allocated to shareholders per share:













Basic


$

0.26



$

0.29



12

%


$

0.76



$

0.75



(1)

%

Diluted


$

0.25



$

0.28



12

%


$

0.75



$

0.74



(1)

%

 

CRITEO S.A.

Consolidated Statement of Cash Flows

(U.S. dollars in thousands, unaudited)




Three Months Ended




Nine Months Ended





September 30,




September 30,





2018


2019


YoY
Change


2018


2019


YoY
Change

Net income


$

17,948



$

20,557



15

%


$

53,745



$

54,495



1

%

Non-cash and non-operating items


28,379



18,776



(34)

%


103,808



72,735



(30)

%

           - Amortization and provisions


27,891



19,455



(30)

%


79,040



57,381



(27)

%

           - Equity awards compensation expense (1)


17,262



11,165



(35)

%


56,333



36,760



(35)

%

           - Change in deferred taxes


(1,806)



(2,710)



50

%


(9,341)



(1,374)



(85)

%

           - Change in income taxes


(14,988)



(9,309)



(38)

%


(18,988)



(19,939)



5

%

           - Other (2)


20



175



NM


(3,236)



(93)



(97)

%

Changes in working capital related to operating activities


3,929



3,956



1

%


17,573



36,243



NM

           - Decrease in trade receivables


12,931



14,821



15

%


114,377



120,164



5

%

           - Increase/(Decrease) in trade payables


13,091



(4,415)



NM


(76,599)



(77,895)



2

%

           - (Increase)/Decrease in other current assets


(8,229)



638



NM


5,550



2,150



(61)

%

           - (Decrease) in other current liabilities (2)


(13,864)



(10,177)



(27)

%


(25,755)



(4,726)



(82)

%

           - Change in operating lease liabilities and right of use assets (3)




3,089



NM




(3,450)



NM

CASH FROM OPERATING ACTIVITIES


50,256



43,289



(14)

%


175,126



163,473



(7)

%

Acquisition of intangible assets, property, plant and equipment


(60,627)



(27,239)



(55)

%


(86,920)



(69,343)



(20)

%

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


30,971



3,295



(89)

%


6,850



(11,077)



NM

(Payment for) disposal of a business, net of cash acquired (disposed)


(38,100)



106



NM


(48,911)



(4,582)



(91)

%

Change in other non-current financial assets


(45)



(165)



NM


(3)



(1,349)



NM

CASH USED FOR INVESTING ACTIVITIES


(67,801)



(24,003)



(65)

%


(128,984)



(86,351)



(33)

%

Repayment of borrowings


(248)



(167)



(33)

%


(721)



(506)



(30)

%

Net payments related to equity award activities


212



725



NM


774



638



(18)

%

Change in treasury stock




(17,603)



NM




(17,603)



NM

Change in other financial liabilities (2)


(136)



(928)



NM


16,674



(1,167)



NM

CASH FROM (USED FOR) FINANCING ACTIVITIES


(172)



(17,973)



NM


16,727



(18,638)



NM

Effect of exchange rates changes on cash and cash equivalents (2)


(3,878)



(14,188)



NM


(18,290)



(13,732)



(25)

%

Net increase (decrease) in cash and cash equivalents


(21,595)



(12,875)



NM


44,579



44,752



0.4

%

Net cash and cash equivalents at beginning of period


480,285



422,053



(12)

%


414,111



364,426



(12)

%

Net cash and cash equivalents at end of period


$

458,690



$

409,178



(11)

%


$

458,690



$

409,178



(11)

%

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION













Cash paid for taxes, net of refunds


$

(23,614)



$

(19,932)



(16)

%


$

(56,174)



$

(44,927)



(20)

%

Cash paid for interest, net of amounts capitalized


$

(422)



$

(337)



(20)

%


$

(1,262)



$

(1,095)



(13)

%


(1) Share-based compensation expense according to ASC 718 Compensation - stock compensation accounted for $17.1 million and $10.8 million of equity awards compensation expense for the quarter ended September 30, 2018 and 2019, respectively, and $55.3 million and $35.7 million of equity awards compensation for the nine months ended September 30, 2018 and 2019, respectively.


(2) During the quarter ended September 30, 2018, and the nine months September 30, 2018, respectively, the Company reported the cash impact of the settlement of hedging derivatives related to financing activities in cash from (used for) financing activities in the unaudited consolidated statements of cash flows


(3)  Effective January 1, 2019 we have adopted ASC 842, Leases. We have elected the modified retrospective transition method and not restated prior periods. Changes in operating lease liabilities and right of use assets included rent prepayments and accrued rent amounts which were mapped to other current assets and trade payables in prior years.

 

CRITEO S.A.

Reconciliation of Cash from Operating Activities to Free Cash Flow

(U.S. dollars in thousands, unaudited)




Three Months Ended




Nine Months Ended





September 30,




September 30,





2018


2019


YoY
Change


2018


2019


YoY
Change














CASH FROM OPERATING ACTIVITIES


$

50,256



$

43,289



(14)

%


$

175,126



$

163,473



(7)

%

Acquisition of intangible assets, property, plant and equipment


(60,627)



(27,239)



(55)

%


(86,920)



(69,343)



(20)

%

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


30,971



3,295



(89)

%


6,850



(11,077)



NM

FREE CASH FLOW (1)


$

20,600



$

19,345



(6)

%


$

95,056



$

83,053



(13)

%


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

 

CRITEO S.A.

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

(U.S. dollars in thousands, unaudited)





Three Months Ended






Nine Months Ended








September 30,






September 30,






Region


2018


2019


YoY
Change


YoY
Change at
Constant
Currency


2018


2019


YoY
Change


YoY
Change at
Constant
Currency

Revenue


















Americas


$

211,247



$

213,937



1

%


1

%


$

636,723



$

645,904



1

%


2

%


EMEA


195,230



185,556



(5)

%


(1)

%


618,921



589,558



(5)

%


1

%


Asia-Pacific


122,392



123,113



1

%


(1)

%


374,574



373,414



(0.3)

%


1

%


Total


528,869



522,606



(1)

%


(0.03)

%


1,630,218



1,608,876



(1)

%


2

%



















Traffic acquisition costs


















Americas


(126,406)



(129,047)



2

%


2

%


(383,429)



(390,083)



2

%


2

%


EMEA


(111,131)



(103,899)



(7)

%


(3)

%


(343,601)



(328,591)



(4)

%


2

%


Asia-Pacific


(67,850)



(68,955)



2

%


0.2

%


(209,066)



(209,885)



0.4

%


1

%


Total


(305,387)



(301,901)



(1)

%


(0.01)

%


(936,096)



(928,559)



(1)

%


2

%



















Revenue ex-TAC (1)


















Americas


84,841



84,890



0.1

%


0.1

%


253,294



255,821



1

%


2

%


EMEA


84,099



81,657



(3)

%


1

%


275,320



260,967



(5)

%


1

%


Asia-Pacific


54,542



54,158



(1)

%


(2)

%


165,508



163,529



(1)

%


(0.1)

%


Total


$

223,482



$

220,705



(1)

%


(0.1)

%


$

694,122



$

680,317



(2)

%


1

%


(1) We define Revenue ex-TAC as our revenue excluding traffic acquisition costs generated over the applicable measurement period. Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region are not measures calculated in accordance with U.S. GAAP. We have included Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region because they are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue and review of these measures by region can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region provide 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. Our use of Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; (b) other companies may report Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region or similarly titled measures but define the regions differently, which reduces their effectiveness as a comparative measure; and (c) other companies may report Revenue ex-TAC or similarly titled measures but calculate them differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region alongside our other U.S. GAAP financial results, including revenue. The above table provides a reconciliation of Revenue ex-TAC to revenue and Revenue ex-TAC by Region to revenue by region.

 

CRITEO S.A.

Reconciliation of Adjusted EBITDA to Net Income

(U.S. dollars in thousands, unaudited)




Three Months Ended




Nine Months Ended





September 30,




September 30,





2018


2019


YoY
Change


2018


2019


YoY
Change

Net income


$

17,948



$

20,557



15

%


$

53,745



$

54,495



1

%

Adjustments:













Financial (income) expense


1,007



900



(11)

%


3,338



4,228



27

%

Provision for income taxes


6,821



7,913



16

%


27,845



23,614



(15)

%

Equity awards compensation expense


17,261



11,770



(32)

%


56,809



40,043



(30)

%

Research and development


4,901



3,230



(34)

%


16,227



11,458



(29)

%

Sales and operations


6,952



4,398



(37)

%


23,451



16,292



(31)

%

General and administrative


5,408



4,142



(23)

%


17,131



12,293



(28)

%

Pension service costs


419



388



(7)

%


1,272



1,173



(8)

%

Research and development


208



188



(10)

%


640



572



(11)

%

Sales and operations


83



71



(14)

%


237



214



(10)

%

General and administrative


128



129



1

%


395



387



(2)

%

Depreciation and amortization expense


25,619



22,388



(13)

%


72,825



62,999



(13)

%

Cost of revenue


16,571



12,193



(26)

%


46,870



32,175



(31)

%

Research and development


2,724



4,249



56

%


7,190



11,260



57

%

Sales and operations


4,442



4,178



(6)

%


13,414



14,151



5

%

General and administrative


1,882



1,768



(6)

%


5,351



5,413



1

%

Acquisition-related costs


516





(100)

%


516





(100)

%

General and administrative


516





(100)

%


516





(100)

%

Restructuring cost (1)




303



NM


(53)



2,921



NM

Research and development




172



NM


(332)



296



NM

Sales and operations




131



NM


290



2,196



NM

General and administrative






%


(11)



429



NM

Total net adjustments


51,643



43,662



(15)

%


162,552



134,978



(17)

%

Adjusted EBITDA (2)


$

69,591



$

64,219



(8)

%


$

216,297



$

189,473



(12)

%


(1) For the Three Months Ended September 30, 2019 and the Nine Months Ended September 30, 2019, respectively, the Company recognized restructuring charges for its new organizational structure implemented to support its multi-product platform strategy as detailed below:



Three Months Ended


Nine Months Ended


September 30, 2019

(Gain) from forfeitures of share-based compensation expense

(606)



(3,284)


Depreciation and amortization expense



1,228


Payroll and Facilities related costs

909



4,977


Total restructuring costs

303



2,921



(2) We define Adjusted EBITDA as our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. Adjusted EBITDA is not a measure calculated in accordance with U.S. GAAP. We have included Adjusted EBITDA because it 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-term and long-term operational plans. In particular, we believe that the elimination of equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA 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. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (b) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (c) Adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (d) Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and (e) other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Adjusted EBITDA alongside our U.S. GAAP financial results, including net income.

 

CRITEO S.A.

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

(U.S. dollars in thousands, unaudited)




Three Months Ended




Nine Months Ended





September 30,




September 30,





2018


2019


YoY
Change


2018


2019


YoY
Change














Research and Development expenses


$

(41,796)



$

(41,414)



(1)

%


$

(134,658)



$

(132,006)



(2)

%

Equity awards compensation expense


4,901



3,230



(34)

%


16,227



11,458



(29)

%

Depreciation and Amortization expense


2,724



4,249



56

%


7,190



11,260



57

%

Pension service costs


208



188



(10)

%


640



572



(11)

%

Restructuring costs (1)




172



NM


(332)



296



NM

Non GAAP - Research and Development expenses


(33,963)



(33,575)



(1)

%


(110,933)



(108,420)



(2)

%

Sales and Operations expenses


(90,526)



(85,985)



(5)

%


(278,901)



(277,397)



(1)

%

Equity awards compensation expense


6,952



4,398



(37)

%


23,451



16,292



(31)

%

Depreciation and Amortization expense


4,442



4,178



(6)

%


13,414



14,151



5

%

Pension service costs


83



71



(14)

%


237



214



(10)

%

Restructuring costs (1)




131



NM


290



2,196



NM

Non GAAP - Sales and Operations expenses


(79,049)



(77,207)



(2)

%


(241,509)



(244,544)



1

%

General and Administrative expenses


(32,463)



(32,835)



1

%


(102,698)



(102,372)



(0.3)

%

Equity awards compensation expense


5,408



4,142



(23)

%


17,131



12,293



(28)

%

Depreciation and Amortization expense


1,882



1,768



(6)

%


5,351



5,413



1

%

Pension service costs


128



129



1

%


395



387



(2)

%

Acquisition related costs


516





(100)

%


516





(100)

%

Restructuring costs (1)






%


(11)



429



NM

Non GAAP - General and Administrative expenses


(24,529)



(26,796)



9

%


(79,316)



(83,850)



6

%

Total Operating expenses


(164,785)



(160,234)



(3)

%


(516,257)



(511,775)



(1)

%

Equity awards compensation expense


17,261



11,770



(32)

%


56,809



40,043



(30)

%

Depreciation and Amortization expense


9,048



10,195



13

%


25,955



30,824



19

%

Pension service costs


419



388



(7)

%


1,272



1,173



(8)

%

Acquisition-related costs


516





(100)

%


516





(100)

%

Restructuring costs (1)




303



NM


(53)



2,921



NM

Total Non GAAP Operating expenses (2)


$

(137,541)



$

(137,578)



0.03

%


$

(431,758)



$

(436,814)



1

%


(1) For the Three Months Ended September 30, 2019 and the Nine Months Ended September 30, 2019, respectively, the Company recognized restructuring charges for its new organizational structure implemented to support its multi-product platform strategy as detailed below:



Three Months Ended


Nine Months Ended


September 30, 2019

(Gain) from forfeitures of share-based compensation expense

(606)



(3,284)


Depreciation and amortization expense



1,228


Payroll and Facilities related costs

909



4,977


Total restructuring costs

303



2,921



(1) We define Non-GAAP Operating Expenses as our consolidated operating expenses adjusted to eliminate the impact of depreciation and amortization, equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures we use to provide our quarterly and annual business outlook to the investment community.

 

CRITEO S.A.

Detailed Information on Selected Items

(U.S. dollars in thousands, unaudited)




Three Months Ended




Nine Months Ended





September 30,




September 30,





2018


2019


YoY
Change


2018


2019


YoY
Change

Equity awards compensation expense













Research and development


$

4,901



$

3,230



(34)

%


$

16,227



$

11,458



(29)

%

Sales and operations


6,952



4,398



(37)

%


23,451



16,292



(31)

%

General and administrative


5,408



4,142



(23)

%


17,131



12,293



(28)

%

Total equity awards compensation expense


17,261



11,770



(32)

%


56,809



40,043



(30)

%














Pension service costs













Research and development


208



188



(10)

%


640



572



(11)

%

Sales and operations


83



71



(14)

%


237



214



(10)

%

General and administrative


128



129



1

%


395



387



(2)

%

Total pension service costs


419



388



(7)

%


1,272



1,173



(8)

%














Depreciation and amortization expense













Cost of revenue


16,571



12,193



(26)

%


46,870



32,175



(31)

%

Research and development


2,724



4,249



56

%


7,190



11,260



57

%

Sales and operations


4,442



4,178



(6)

%


13,414



14,151



5

%

General and administrative


1,882



1,768



(6)

%


5,351



5,413



1

%

Total depreciation and amortization expense


25,619



22,388



(13)

%


72,825



62,999



(13)

%














Acquisition-related costs













General and administrative


516





(100)

%


516





(100)

%

Total acquisition-related costs


516





(100)

%


516





(100)

%














Restructuring costs (1)













Research and development




172



NM


(332)



296



NM

Sales and operations




131



NM


290



2,196



NM

General and administrative






%


(11)



429



NM

Total restructuring costs


$



$

303



NM


$

(53)



$

2,921



NM


(1) For the Three Months Ended September 30, 2019 and the Nine Months Ended September 30, 2019, respectively, the Company recognized restructuring charges for its new organizational structure implemented to support its multi-product platform strategy as detailed below:



Three Months Ended


Nine Months Ended


September 30, 2019

(Gain) from forfeitures of share-based compensation expense

(606)



(3,284)


Depreciation and amortization expense



1,228


Payroll and Facilities related costs

909



4,977


Total restructuring costs

303



2,921


 

CRITEO S.A.

Reconciliation of Adjusted Net Income to Net Income

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




Three Months Ended




Nine Months Ended





September 30,




September 30,





2018


2019


YoY
Change


2018


2019


YoY
Change














Net income


$

17,948



$

20,557



15

%


$

53,745



$

54,495



1

%

Adjustments:













Equity awards compensation expense


17,261



11,770



(32)

%


56,809



40,043



(30)

%

Amortization of acquisition-related intangible assets


3,920



5,456



39

%


10,825



16,393



51

%

Acquisition-related costs


516





(100)

%


516





(100)

%

Restructuring costs (1)




303



NM


(53)



2,921



NM

Tax impact of the above adjustments


(3,309)



(2,640)



(20)

%


(9,505)



(7,971)



(16)

%

Total net adjustments


18,388



14,889



(19)

%


58,592



51,386



(12)

%

Adjusted net income (2)


$

36,336



$

35,446



(2)

%


$

112,337



$

105,881



(6)

%














Weighted average shares outstanding













 - Basic


67,075,453



64,868,545





66,531,371



64,600,869




 - Diluted


68,625,673



66,067,045





67,864,802



65,916,219

















Adjusted net income per share













 - Basic


$

0.54



$

0.55



2

%


$

1.69



$

1.64



(3)

%

 - Diluted


$

0.53



$

0.54



2

%


$

1.66



$

1.61



(3)

%


(1) For the Three Months Ended September 30, 2019 and the Nine Months Ended September 30, 2019, respectively, the Company recognized restructuring charges for its new organizational structure implemented to support its multi-product platform strategy as detailed below:



Three Months Ended


Nine Months Ended


September 30, 2019

(Gain) from forfeitures of share-based compensation expense

(606)



(3,284)


Depreciation and amortization expense



1,228


Payroll and Facilities related costs

909



4,977


Total restructuring costs

303



2,921



(2) We define Adjusted Net Income as our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring costs, acquisition-related costs and deferred price consideration and the tax impact of the foregoing adjustments. Adjusted Net Income is not a measure calculated in accordance with U.S. GAAP. We have included Adjusted Net Income because it is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs and deferred price consideration, restructuring costs and the tax impact of the foregoing adjustments in calculating Adjusted Net Income can provide a useful measure for period-to-period comparisons of our 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. Our use of Adjusted Net Income has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) Adjusted Net Income does not reflect the potentially dilutive impact of equity-based compensation or the impact of certain acquisition related costs; and (b) other companies, including companies in our industry, may calculate Adjusted Net Income or similarly titled measures differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Adjusted Net Income alongside our other U.S. GAAP-based financial results, including net income.

 

CRITEO S.A.

Constant Currency Reconciliation

(U.S. dollars in thousands, unaudited)




Three Months Ended




Nine Months Ended





September 30,




September 30,





2018


2019


YoY
Change


2018


2019


YoY
Change














Revenue as reported


$

528,869



$

522,606



(1)

%


$

1,630,218



$

1,608,876



(1)

%

Conversion impact U.S. dollar/other currencies




6,096







45,842




Revenue at constant currency(1)


528,869



528,702



(0.03)

%


1,630,218



1,654,718



2

%














Traffic acquisition costs as reported


(305,387)



(301,901)



(1)

%


(936,096)



(928,559)



(1)

%

Conversion impact U.S. dollar/other currencies




(3,450)







(25,582)




Traffic Acquisition Costs at constant currency(1)


(305,387)



(305,351)



(0.01)

%


(936,096)



(954,141)



2

%














Revenue ex-TAC as reported(2)


223,482



220,705



(1)

%


694,122



680,317



(2)

%

Conversion impact U.S. dollar/other currencies




2,645







20,259




Revenue ex-TAC at constant currency(2)


223,482



223,350



(0.1)

%


694,122



700,576



1

%

Revenue ex-TAC(2)/Revenue as reported


42

%


42

%




43

%


42

%
















Other cost of revenue as reported


(32,921)



(31,101)



(6)

%


(92,937)



(86,205)



(7)

%

Conversion impact U.S. dollar/other currencies




(791)







(2,184)




Other cost of revenue at constant currency(1)


(32,921)



(31,892)



(3)

%


(92,937)



(88,389)



(5)

%














Adjusted EBITDA(3)


69,591



64,219



(8)

%


216,297



189,473



(12)

%

Conversion impact U.S. dollar/other currencies




3,461







9,434




Adjusted EBITDA(3) at constant currency(1)


$

69,591



$

67,680



(3)

%


$

216,297



$

198,907



(8)

%

Adjusted EBITDA(3)/Revenue ex-TAC(2)


31

%


29

%




31

%


28

%




(1) Information herein with respect to results presented on a constant currency basis is computed by applying prior period average exchange rates to current period results. We have included results on a constant currency basis because it is a key measure used by our management and Board of directors to evaluate operating performance. Management reviews and analyzes business results excluding the effect of foreign currency translation because they believe this better represents our underlying business trends. The table above reconciles the actual results presented in this section with the results presented on a constant currency basis.


(2) Revenue ex-TAC is not a measure calculated in accordance with U.S. GAAP. See the table entitled "Reconciliation of Revenue ex-TAC by Region to Revenue by Region" for a reconciliation of Revenue Ex-TAC to revenue.


(3) Adjusted EBITDA is not a measure calculated in accordance with U.S. GAAP. See the table entitled "Reconciliation of Adjusted EBITDA to Net Income" for a reconciliation of Adjusted EBITDA to net income.

 

CRITEO S.A.

Information on Share Count

(unaudited)




Nine Months Ended



September 30,



2018


2019

Shares outstanding as at January 1,


66,085,097



64,249,084


Weighted average number of shares issued during the period


446,274



351,785


Basic number of shares - Basic EPS basis


66,531,371



64,600,869


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


1,333,431



1,315,350


Diluted number of shares - Diluted EPS basis


67,864,802



65,916,219







Shares issued as at September 30, before Treasure stocks


67,231,036



66,173,983


Treasury stock as of September 30,




(1,807,251)


Shares outstanding as of September 30, after Treasury stocks


67,231,036



64,366,732


Total dilutive effect of share options, warrants, employee warrants


8,368,660



8,494,732


Fully diluted shares as at September 30,


75,599,696



72,861,464


 

CRITEO S.A.

Supplemental Financial Information and Operating Metrics

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



Q4
2017

Q1
2018

Q2
2018

Q3
2018

Q4
2018

Q1
2019

Q2
2019

Q3
2019

YoY
Change

QoQ
Change














Clients

18,118

18,528

18,936

19,213

19,419

19,373

19,733

19,971

4%

1%














Revenue

674,031

564,164

537,185

528,869

670,096

558,123

528,147

522,606

(1)%

(1)%


Americas

324,696

212,695

212,781

211,247

317,350

217,993

213,974

213,937

1%

(0.02)%


EMEA

221,019

222,611

201,080

195,230

220,904

209,643

194,359

185,556

(5)%

(5)%


APAC

128,316

128,858

123,324

122,392

131,842

130,487

119,814

123,113

1%

3%














TAC

(397,087)

(323,746)

(306,963)

(305,387)

(398,238)

(322,429)

(304,229)

(301,901)

(1)%

(1)%


Americas

(203,368)

(131,521)

(125,502)

(126,406)

(196,168)

(131,545)

(129,491)

(129,047)

2%

(0.3)%


EMEA

(120,662)

(119,893)

(112,577)

(111,131)

(128,053)

(117,291)

(107,401)

(103,899)

(7)%

(3)%


APAC

(73,057)

(72,332)

(68,884)

(67,850)

(74,017)

(73,593)

(67,337)

(68,955)

2%

2%














Revenue ex-TAC (1)

276,944

240,418

230,222

223,482

271,858

235,694

223,918

220,705

(1)%

(1)%


Americas

121,328

81,174

87,279

84,841

121,182

86,448

84,483

84,890

0.1%

0.5%


EMEA

100,357

102,718

88,503

84,099

92,851

92,352

86,958

81,657

(3)%

(6)%


APAC

55,259

56,526

54,440

54,542

57,825

56,894

52,477

54,158

(1)%

3%














Cash flow from operating activities

79,002

84,527

40,341

50,256

85,600

67,220

52,964

43,289

(14)%

(18)%














Capital expenditures

25,476

32,567

17,847

29,656

45,408

23,684

32,792

23,944

(19)%

(27)%














Capital expenditures/Revenue

4%

6%

3%

6%

7%

4%

6%

5%

N.A

N.A














Net cash position

414,111

483,874

480,285

458,690

364,426

395,771

422,053

409,178

(11)%

(3)%














Headcount

2,764

2,675

2,678

2,737

2,744

2,813

2,873

2,794

2%

(3)%














Days Sales Outstanding (days - end of month)

57

60

61

60

58

59

58

57

N.A

N.A



(1) We define Revenue ex-TAC as our revenue excluding traffic acquisition costs generated over the applicable measurement period. Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region are not measures calculated in accordance with U.S. GAAP. We have included Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region because they are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue and review of these measures by region can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region provide 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. Our use of Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; (b) other companies may report Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region or similarly titled measures but define the regions differently, which reduces their effectiveness as a comparative measure; and (c) other companies may report Revenue ex-TAC or similarly titled measures but calculate them differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region alongside our other U.S. GAAP financial results, including revenue. The above table provides a reconciliation of Revenue ex-TAC to revenue and Revenue ex-TAC by Region to revenue by region.

 

SOURCE Criteo S.A.