Criteo Q1 Earnings Breezes Past Expectations; Reiterates FY23 Outlook

  • Criteo SA CRTO reported a Q1 2023 revenue decline of 13% Y/Y to $445.0 million, surpassing the consensus of $213.8 million.  
  • Contribution ex-TAC increased 2% Y/Y to $221 million, with contribution ex-TAC from Marketing Solutions declining 15% Y/Y, Retail Media growing 21% Y/Y, and Iponweb standing at $25.1 million.
  • Criteo's activated media spend rose 37% Y/Y in constant currency to $0.8 billion.
  • The company expanded its platform adoption with large retailers, including Rite Aid Corp RAD.
  • Adjusted EBITDA was $39 million (-38% Y/Y). Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 18% versus 29% the previous year.
  • Non-GAAP EPS of $0.46 (-13% Y/Y), beating the consensus of $0.24.
  • Free cash flow decreased 87% Y/Y to $9 million. CRTO held cash and equivalents of $338 million.
  • Q2 2023 Outlook: Criteo sees contributions ex-TAC of $228 million - $234 million and adjusted EBITDA of $46 million - $50 million.
  • 2023 Outlook Reiterated: Criteo expects contribution ex-TAC growth in high single-digit to low double-digit growth at constant currencies and an adjusted EBITDA margin of around 28% of contribution ex-TAC.
  • Price Action: CRTO shares are trading higher by 5.92% at $32.54 on the last check Wednesday.

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