NEW YORK, Feb. 9, 2022 /PRNewswire/ -- Criteo S.A. (NASDAQ:
CRTO) ("Criteo" or the "Company"), the global technology company
that provides the world's leading Commerce Media Platform, today
announced financial results for the fourth quarter and fiscal year
ended December 31, 2021 that exceeded the Company's
guidance.
Fourth Quarter and Fiscal Year 2021 Financial
Highlights:
The following table summarizes our consolidated financial
results for the three and twelve months ended December 31, 2021 and 2020:
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
|
|
|
|
|
|
|
(in millions,
except EPS data)
|
GAAP
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
653
|
|
$
|
661
|
|
(1)
|
%
|
|
$
|
2,254
|
|
$
|
2,073
|
|
9
|
%
|
Gross
Profit
|
$
|
244
|
|
$
|
218
|
|
12
|
%
|
|
$
|
782
|
|
$
|
688
|
|
14
|
%
|
Net Income
|
$
|
75
|
|
$
|
47
|
|
60
|
%
|
|
$
|
138
|
|
$
|
75
|
|
84
|
%
|
Gross Profit
margin
|
|
37
|
%
|
|
|
33
|
%
|
|
4ppt
|
|
|
35
|
%
|
|
|
33
%
|
|
2ppt
|
Diluted
EPS
|
$
|
1.15
|
|
$
|
0.73
|
|
58
|
%
|
|
$
|
2.09
|
|
$
|
1.16
|
|
80
|
%
|
Cash from operating
activities
|
$
|
66
|
|
$
|
44
|
|
50
|
%
|
|
$
|
221
|
|
$
|
185
|
|
19
|
%
|
Cash and cash
equivalents
|
$
|
516
|
|
$
|
488
|
|
6
|
%
|
|
$
|
516
|
|
$
|
488
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Results1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution
ex-TAC
|
$
|
276
|
|
$
|
253
|
|
9
|
%
|
|
$
|
921
|
|
$
|
825
|
|
12
|
%
|
Contribution ex-TAC
margin
|
|
42
|
%
|
|
|
38
|
%
|
|
4ppt
|
|
|
41
|
%
|
|
|
40
%
|
|
1ppt
|
Adjusted
EBITDA
|
$
|
111
|
|
$
|
103
|
|
7
|
%
|
|
$
|
322
|
|
$
|
251
|
|
28
|
%
|
Adjusted diluted
EPS
|
$
|
1.44
|
|
$
|
0.98
|
|
47
|
%
|
|
$
|
3.38
|
|
$
|
2.17
|
|
56
|
%
|
Free Cash Flow
(FCF)
|
$
|
56
|
|
$
|
22
|
|
157
|
%
|
|
$
|
168
|
|
$
|
120
|
|
40
|
%
|
FCF / Adjusted
EBITDA
|
|
50
|
%
|
|
|
21
|
%
|
|
29ppt
|
|
|
52
|
%
|
|
|
48
%
|
|
4ppt
|
"We delivered double-digit growth in 2021, positioning us for a
successful 2022 and beyond. Our impressive performance demonstrates
the tremendous progress we have made on our transformation," said
Megan Clarken, Chief Executive
Officer. "In 2022, we are accelerating our strategy around commerce
media to enable our customers to drive meaningful commerce
outcomes."
Operating Highlights
- Retail Media Contribution ex-TAC grew 58% year-over-year at
constant currency2 in 2021 and 41% in Q4, and
same-retailer Contribution ex-TAC3 for Retail Media
increased 23% year-over-year in Q4.
- Marketing Solutions Contribution ex-TAC grew 6% year-over-year
at constant currency2 in 2021 and 7% in Q4.
- Criteo's media spend activated4 by the Commerce
Media Platform for marketers and media owners was $2.7 billion in 2021, growing 19% at constant
currency2 and close to $850
million in Q4.
___________________________________________________
|
1
Contribution ex-TAC, Contribution ex-TAC margin, Adjusted EBITDA,
Adjusted EBITDA margin, Adjusted diluted EPS and Free Cash Flow are
not measures calculated in accordance with U.S. GAAP.
2 Constant currency measures exclude the impact of
foreign currency fluctuations and is computed by applying the 2020
average exchange rates for the relevant period to 2021 figures.
3 Same-client profitability or Contribution ex-TAC is
the profitability or Contribution 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.
4 Activated media spend is defined as the sum of our
Marketing Solutions revenue and the media spend activated on behalf
of our Retail Media clients.
|
- We signed a three-year global partnership with GroupM to
accelerate the demand and supply growth of our Retail Media
business.
- We added Nordstrom and Michaels to our Retail Media
Platform in Q4 and successfully launched our first retailer
customers in APAC and Latin
America.
- Same-client contribution ex-TAC2 increased 9%
year-over-year at constant currency2 in Q4.
- We had 685 million Daily Active Users (DAUs), over 60% of which
on the web are addressable through media owners we have direct
access to, as we continue to build Criteo's first-party media
network.
- We executed a purchase agreement to acquire the business of
IPONWEB Holding Limited ("IPONWEB"), a market-leading AdTech
platform company, for $380 million,
which we believe will further distinguish Criteo as the commerce
media partner of choice on the open internet for the post
third-party identifier world.
New Reporting Segment Structure
We are now reporting results for two reportable segments:
Marketing Solutions and Retail Media. We have included a table
which presents the operating results of our segments in this press
release.
Change in Naming of Non-GAAP Financial Measure
We have renamed Revenue ex-TAC, a non-GAAP financial measure, to
Contribution ex-TAC. The change was made as the Company considers
that Contribution ex-TAC is a non-GAAP financial measure of
profitability, closest to Gross Profit, and not revenue. No changes
were made in the calculation methodology.
Financial Summary
Revenue for Q4 2021 was $653
million, gross profit was $244
million and Contribution ex-TAC was $276 million. Net income for Q4 was
$75 million, or $1.15 per share
on a diluted basis. Adjusted EBITDA for Q4 was $111 million, resulting in an adjusted diluted
EPS of $1.44. At constant currency,
Revenue for Q4 increased by 1%, gross profit increased 14% and
Contribution ex-TAC increased by 11%. Revenue for the fiscal year
2021 was $2,254 million, gross profit
was $782 million and Contribution
ex-TAC was $921 million, up 8%, 13%
and 11% respectively at constant currency. Net income for Fiscal
2021 was $138 million, or $2.09
per share on a diluted basis. Fiscal year 2021 Adjusted EBITDA was
$322 million, resulting in an
adjusted diluted EPS of $3.38. Cash flow from operating
activities was $66 million in Q4 and $221 million in 2021, and Q4 Free Cash Flow was
$56 million, up 40% in 2021 to
$168 million, representing a Free
Cash Flow conversion rate of 52% of Adjusted EBITDA in 2021. As of
December 31, 2021, we had
$571 million in cash and marketable
securities on our balance sheet.
Sarah Glickman, Chief Financial
Officer, said, "We delivered strong top line performance and record
adjusted EBITDA margin and free cash flow in 2021 while investing
for future growth. Looking ahead, we are confident about our growth
trajectory and expect to grow Contribution ex-TAC by double digits
again in 2022 as we continue to scale and execute on our Commerce
Media Platform strategy. We expect to continue to return cash to
shareholders with the extension of our share repurchase program in
2022."
Fourth Quarter 2021 Results
Revenue, Gross Profit and Contribution ex-TAC
Revenue decreased by 1% year-over-year in Q4 2021, or increased
by 1% at constant currency, to $653 million (Q4 2020:
$661 million). Gross profit increased by 12% year-over-year in
Q4 2021, or 14% at constant currency, to $244 million (Q4 2020: $218 million). Gross profit as a percentage of
revenue, or gross profit margin, was 37% (Q4 2020: 33%).
Contribution ex-TAC in the fourth quarter increased 9%
year-over-year, or 11% at constant currency, to $276 million
(Q4 2020: $253 million). Contribution ex-TAC as a
percentage of revenue, or Contribution ex-TAC margin, was 42% (Q4
2020: 38%), up 400 basis points year-over-year, largely driven by
Retail Media and the acceleration of our client transition to the
Retail Media Platform.
- Marketing Solutions revenue grew 6% (or 9% at constant
currency) and Marketing Solutions Contribution ex-TAC grew 4% (or
7% at constant currency), driven by healthy demand from Retail
clients, both on our retargeting and audience targeting solutions,
partially offset by anticipated identity and privacy changes.
- Retail Media revenue decreased 36% (or 36% at constant
currency) reflecting the impact related to the ongoing client
migration to our Retail Media Platform ("RMP"). Retail Media
Contribution ex-TAC increased 41% (or 41% on a constant currency
basis), driven by continued strength in Retail Media onsite, new
client integrations and growing network effects of the RMP.
Net Income and Adjusted Net Income
Net income grew 60% to $75 million in Q4 2021
(Q4 2020: $47 million). Net income margin as a percentage
of revenue was 11% (Q4 2020: 7%). Net income available to
shareholders of Criteo S.A. was $74
million, or $1.15 per share on
a diluted basis (Q4 2020: $45 million, or $0.73 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,
restructuring related and transformation costs and the tax impact
of these adjustments, was $92 million, or $1.44 per share on a diluted basis (Q4 2020:
$61 million, or $0.98 per share
on a diluted basis).
Adjusted EBITDA and Operating Expenses
Adjusted EBITDA increased 7% year-over-year, or 10% at constant
currency, to $111 million (Q4 2020: $103 million),
driven by the Contribution ex-TAC performance over the period and
effective cost management balanced with growth investments.
Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted
EBITDA margin, was 40% (Q4 2020: 41%).
Operating expenses increased 18% year-over-year to
$179 million (Q4 2020:
$151 million), reflecting investments in our growth
areas, including Product, Sales and R&D, and higher equity
award compensation expense balanced with disciplined and effective
expense management. Operating expenses, excluding the impact of
equity awards compensation expense, pension costs,
acquisition-related costs, restructuring related and transformation
costs, and depreciation and amortization, which we refer to as
Non-GAAP operating expenses, increased by 16% or $21 million, to $151 million (Q4 2020:
$130 million).
Fiscal Year 2021 Results
Revenue, Gross Profit and Contribution ex-TAC
Revenue increased 9% year-over-year (8% at constant currency),
to $2,254 million (FY 2020:
$2,073 million). Gross profit
increased by 14% year-over-year in 2021, or 13% at constant
currency, to $782 million (FY 2020:
$688 million). Gross profit as a
percentage of revenue, or gross profit margin, was 35% (FY 2020:
33%). Contribution ex-TAC increased 12% year-over-year (11% at
constant currency), to $921 million
(FY 2020: $825 million). Contribution
ex-TAC as a percentage of revenue, or Contribution ex-TAC margin,
was 41% (FY 2020: 40%), up 100 basis points year-over-year, largely
driven by Retail Media and the acceleration of our client
transition to the Retail Media Platform.
- Marketing Solutions revenue grew 11% (or 10% at constant
currency) and Marketing Solutions Contribution ex-TAC grew 7% (or
6% at constant currency), driven by healthy demand from Retail
clients, both on our retargeting and audience targeting solutions,
partially offset by anticipated identity and privacy changes.
- Retail Media revenue decreased 7% (or 8% at constant currency)
reflecting the impact related to the ongoing client migration to
our Retail Media Platform ("RMP"). Retail Media Contribution ex-TAC
increased 59% (or 58% on a constant currency basis), driven by
continued strength in Retail Media onsite, new client integrations
and growing network effects of the RMP.
Net Income and Adjusted Net Income
Net income increased 84% year-over-year to $138 million (FY 2020: $75
million). Net income margin as a percentage of revenue was
6% (FY 2020: 4%). In the course of the fiscal year 2021, we
incurred $22 million in
restructuring-related and transformation costs. Net income
available to shareholders of Criteo S.A. increased 88%
year-over-year to $134 million, or
$2.09 per share on a diluted basis
(FY 2020: $72 million, or
$1.16 per share on a diluted
basis).
Adjusted net income increased 62% year-over-year to $217 million, or $3.38 per share on a diluted basis (FY 2020:
$134 million, or $2.17 per share on a diluted basis).
Adjusted EBITDA and Operating Expenses
Adjusted EBITDA increased 28% year-over-year, or 26% at constant
currency, to $322 million (FY 2020:
$251 million), driven by the
Contribution ex-TAC performance over the period and effective cost
management, balanced with growth investments. Adjusted EBITDA as a
percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was
35% (FY 2020: 30%).
Operating expenses increased 9% or $51
million, to $630 million (FY
2020: $579 million), mostly driven by
higher headcount-related expense, including equity awards
compensation expense, partially offset by disciplined expense
management across the Company. Non-GAAP operating expenses
increased 6% or $31 million, to
$524 million (FY 2020: $493 million), largely driven by higher headcount
balanced with effective cost discipline across the Company.
Cash Flow, Cash and Financial Liquidity Position
Cash flow from operating activities increased 50% year-over-year
to $66 million in Q4 2021 (Q4 2020: $44 million) and
grew 19% to $221 million in 2021
(fiscal year 2020: $185 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, increased 157% to
$56 million in Q4 2021 (Q4 2020: $22 million), and
grew 40% in 2021 to $168 million
(fiscal year 2020: $120 million),
driving a Free Cash Flow conversion rate of 52% of Adjusted EBITDA
in 2021 (fiscal year 2020: 48%).
Cash and cash equivalents increased $28
million compared to December 31,
2020 to $516 million, and to $571 million including marketable securities, up
$41 million in 2021, after spending
$100 million on share repurchases in
2021.
As of December 31, 2021, the
Company had total financial liquidity close to $1.1 billion, or close to $700 million after giving effect to the
completion of the contemplated acquisition of IPONWEB, including
the Company's cash position, marketable securities, Revolving
Credit Facility and treasury shares reserved for M&A.
IPONWEB Acquisition
As previously announced, on December 22,
2021, Criteo executed the purchase agreement to acquire
IPONWEB, a market-leading AdTech company with world-class media
trading capabilities, for $380
million in a combination of cash and Criteo treasury shares.
The closing of the transaction is expected by the end of the first
quarter of 2022, subject to customary closing conditions.
With this strategic acquisition, Criteo is expected to
accelerate its Commerce Media Platform vision to offer better
control to its enterprise marketers – and their agency partners –
by leveraging IPONWEB's well-established DSP and SSP solutions. The
acquisition is also expected to expand our media owner monetization
opportunities and to provide critical services for first-party data
management across the ecosystem. Together with IPONWEB, Criteo
believes it will distinguish itself as the commerce media partner
of choice on the open internet for the post third-party cookie and
identifier world.
2022 Business Outlook
The following forward-looking statements reflect Criteo's
expectations as of February 9, 2022.
Our financial guidance for the first quarter and fiscal year 2022
excludes the contemplated acquisition of IPONWEB.
Fiscal year 2022 guidance:
- We expect Contribution ex-TAC to grow by 10% to 12% at
constant currency.
- We expect an Adjusted EBITDA margin of approximately 32%
of Contribution ex-TAC.
First quarter 2022 guidance:
- We expect Contribution ex-TAC between $216 million and $220
million, or year-over-year growth at constant-currency
of +5% to +7%.
- We expect Adjusted EBITDA between $52
million and $56
million.
The above guidance for the first quarter and fiscal year ending
December 31, 2022 assumes the
following exchange rates for the main currencies impacting our
business: a U.S. dollar-euro rate of 0.862, a U.S. dollar-Japanese
Yen rate of 115, a U.S. dollar-British pound rate of 0.741, a U.S.
dollar-Korean Won rate of 1,180 and a U.S. dollar-Brazilian real
rate of 5.40.
The above guidance does not include the previously announced
acquisition of IPONWEB, which is expected to close by the end of Q1
2022, and assumes that no additional acquisitions are completed
during the first quarter of 2022 or the fiscal year ended
December 31, 2022.
Reconciliations of Contribution ex-TAC, Adjusted EBITDA and
Adjusted EBITDA margin guidance to the closest corresponding U.S.
GAAP measures 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.
Extension of Share Repurchase Authorization from $175 million to $280
million
Criteo continues to execute on its strategic plan and Company
transformation, investing in the growth of the business and
leveraging its strong balance sheet position.
Criteo today announces that the board of directors has
authorized the extension of its current share repurchase program of
up to $175 million of the Company's
outstanding American Depositary Shares to an increased amount of up
to $280 million. The Company intends
to use repurchased shares under this extended program to satisfy
employee equity obligations in lieu of issuing new shares, which
would limit future dilution for its shareholders, as well as to
fund potential acquisitions in the future.
Under the terms of the authorization, the stock purchases may be
made from time to time on the Nasdaq Global Select Market in
compliance with applicable state and federal securities laws and
applicable provisions of French corporate law. The timing and
amounts of any purchases will be based on market conditions and
other factors including price, regulatory requirements and capital
availability, as determined by Criteo's management team. The
program does not require the purchase of any minimum number of
shares and may be suspended, modified or discontinued at any time
without prior notice.
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 ("SEC"): Contribution
ex-TAC, Contribution ex-TAC margin, Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted Net Income, Adjusted diluted EPS, Free Cash
Flow and Non-GAAP Operating Expenses. These measures are not
calculated in accordance with U.S. GAAP.
Contribution ex-TAC is a profitability measure akin to gross
profit. It is calculated by deducting traffic acquisition costs
from gross revenue and reconciled to gross profit through the
exclusion of other cost of revenue. Contribution ex-TAC is not a
measure calculated in accordance with U.S. GAAP. We have included
Contribution ex-TAC 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. In particular, we believe that this measure can provide
useful measures for period-to-period comparisons of our
business.
Accordingly, we believe that Contribution ex-TAC 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.
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 and restructuring related and
transformation costs.
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 and restructuring
related and transformation costs, 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, restructuring related and
transformation costs and the tax impact of these adjustments.
Adjusted Net Income and Adjusted diluted EPS 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, restructuring related and transformation costs
and the tax impact of these adjustments, Adjusted Net Income and
Adjusted diluted EPS can provide useful measures for
period-to-period comparisons of our business. Accordingly, we
believe that Adjusted Net Income and Adjusted diluted EPS 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
Conversion is defined as free cash flow divided by Adjusted EBITDA.
Free Cash Flow and Free Cash Flow Conversion are key measures used
by our management and board of directors to evaluate the Company's
ability to generate cash. Accordingly, we believe that Free Cash
Flow and Free Cash Flow Conversion permit 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, and restructuring related and transformation costs. 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
Contribution ex-TAC to gross profit, Contribution ex-TAC margin,
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 Contribution ex-TAC, 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 ending March
31, 2022 and the year ended December
31, 2022, 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 innovate and
respond to changes in technology, uncertainty regarding the scope
and impact of the COVID-19 pandemic on our employees, operations,
revenue and cash flows, uncertainty regarding our ability to access
a consistent supply of internet display advertising inventory and
expand access to such inventory, including without limitation
uncertainty regarding the timing and scope of proposed changes to
and enhancements of the Chrome browser announced by Google,
investments in new business opportunities and the timing of these
investments, whether the projected benefits of acquisitions
materialize as expected, including the successful completion of our
acquisition of IPONWEB, uncertainty regarding international growth
and expansion (including related to changes in a specific country's
or region's political or economic conditions), 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, the impact of consumer resistance to the collection and
sharing of data, our ability to access data through third parties,
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
Contribution 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
February 26, 2021, and in subsequent Quarterly Reports on
Form 10-Q as well as future filings and reports by the Company.
Importantly, at this time, the COVID-19 pandemic continues to have
an impact on Criteo's business, financial condition, cash flow and
results of operations. There are significant uncertainties about
the duration and the extent of the impact of the COVID-19
pandemic.
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 senior management team will discuss the Company's
earnings on a call that will take place today, February 9, 2022, at
8:00 AM ET, 2:00 PM CET.
The conference call will be webcast live on the Company's website
http://ir.criteo.com and will subsequently be available for
replay.
|
|
+1 855 209
8212
|
|
|
+1 412 317
0788 or +33 1 76 74 05 02
|
Please ask to be joined into the "Criteo" call.
About Criteo
Criteo (NASDAQ: CRTO) is the global technology company that
provides the world's leading Commerce Media Platform. 2,800 Criteo
team members partner with 22,000 marketers and thousands of media
owners around the globe to activate the world's largest set of
commerce data to drive better commerce outcomes. By powering
trusted and impactful advertising, Criteo brings richer experiences
to every consumer while supporting a fair and open internet that
enables discovery, innovation and choice. For more information,
please visit www.criteo.com.
Contacts
Criteo Investor Relations
Edouard Lassalle, SVP, Capital Markets &
Investor Relations, e.lassalle@criteo.com
Melanie Dambre, Director, Investor Relations,
m.dambre@criteo.com
Criteo Public Relations
Maribel Henriquez, Senior
Communications Manager, m.henriquez@criteo.com
Financial information to follow
CRITEO
S.A.
|
Consolidated
Statement of Financial Position
|
(U.S. dollars in
thousands, unaudited)
|
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
515,527
|
|
$
|
488,011
|
Trade
receivables, net of allowances of $45.4 million and $39.9
million at
December 31, 2021 and December 31, 2020,
respectively
|
|
|
581,988
|
|
|
474,055
|
Income
taxes
|
|
|
8,784
|
|
|
11,092
|
Other taxes
|
|
|
73,388
|
|
|
69,987
|
Other current
assets
|
|
|
34,182
|
|
|
21,405
|
Marketable securities
- current portion
|
|
|
50,299
|
|
|
—
|
Total current
assets
|
|
|
1,264,168
|
|
|
1,064,550
|
Property, plant and
equipment, net
|
|
|
139,961
|
|
|
189,505
|
Intangible assets,
net
|
|
|
82,627
|
|
|
79,744
|
Goodwill
|
|
|
329,699
|
|
|
325,805
|
Right of Use Asset -
operating lease
|
|
|
120,257
|
|
|
114,012
|
Marketable securities
- non current portion
|
|
|
5,000
|
|
|
41,809
|
Non-current financial
assets
|
|
|
6,436
|
|
|
18,109
|
Deferred tax
assets
|
|
|
35,443
|
|
|
19,876
|
Total non-current assets
|
|
|
719,423
|
|
|
788,860
|
Total
assets
|
|
$
|
1,983,591
|
|
$
|
1,853,410
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Trade
payables
|
|
$
|
430,245
|
|
$
|
367,025
|
Contingencies
|
|
|
3,059
|
|
|
2,250
|
Income
taxes
|
|
|
6,641
|
|
|
2,626
|
Financial liabilities
- current portion
|
|
|
642
|
|
|
2,889
|
Lease liability -
operating - current portion
|
|
|
34,066
|
|
|
48,388
|
Other taxes
|
|
|
60,236
|
|
|
58,491
|
Employee - related
payables
|
|
|
98,136
|
|
|
85,272
|
Other current
liabilities
|
|
|
39,523
|
|
|
33,390
|
Total current
liabilities
|
|
|
672,548
|
|
|
600,331
|
Deferred tax
liabilities
|
|
|
3,053
|
|
|
5,297
|
Defined benefit
plans
|
|
|
5,531
|
|
|
6,167
|
Financial liabilities
- non current portion
|
|
|
360
|
|
|
386
|
Lease liability -
operating - non current portion
|
|
|
93,893
|
|
|
83,007
|
Other non-current
liabilities
|
|
|
9,886
|
|
|
5,535
|
Total non-current liabilities
|
|
|
112,723
|
|
|
100,392
|
Total
liabilities
|
|
|
785,271
|
|
|
700,723
|
Commitments and
contingencies
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Common shares, €0.025
par value, 65,883,347 and 66,272,106 shares
authorized,
issued and outstanding at December 31, 2021 and December 31,
2020,
respectively.
|
|
|
2,149
|
|
|
2,161
|
Treasury stock,
5,207,873 and 5,632,536 shares at cost as of December 31,
2021
and December 31, 2020, respectively.
|
|
|
(131,560)
|
|
|
(85,570)
|
Additional paid-in
capital
|
|
|
731,248
|
|
|
693,164
|
Accumulated other
comprehensive income (loss)
|
|
|
(40,294)
|
|
|
16,028
|
Retained
earnings
|
|
|
601,588
|
|
|
491,359
|
Equity - attributable
to shareholders of Criteo S.A.
|
|
|
1,163,131
|
|
|
1,117,142
|
Non-controlling
interests
|
|
|
35,189
|
|
|
35,545
|
Total
equity
|
|
|
1,198,320
|
|
|
1,152,687
|
Total equity and
liabilities
|
|
$
|
1,983,591
|
|
$
|
1,853,410
|
CRITEO
S.A.
|
Consolidated
Statement of Income
|
(U.S. dollars in
thousands, except share and per share data, unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
653,267
|
|
$
661,282
|
|
(1)
%
|
|
$
2,254,235
|
|
$
2,072,617
|
|
9
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Traffic acquisition
cost
|
|
(377,076)
|
|
(408,108)
|
|
(8)
%
|
|
(1,333,440)
|
|
(1,247,571)
|
|
7
%
|
Other cost of
revenue
|
|
(31,840)
|
|
(34,700)
|
|
(8)
%
|
|
(138,851)
|
|
(137,028)
|
|
1
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
244,351
|
|
218,474
|
|
12
%
|
|
781,944
|
|
688,018
|
|
14
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
(44,860)
|
|
(32,797)
|
|
37
%
|
|
(151,817)
|
|
(132,513)
|
|
15
%
|
Sales and operations
expenses
|
|
(89,892)
|
|
(85,871)
|
|
5
%
|
|
(325,616)
|
|
(330,285)
|
|
(1)
%
|
General and
administrative expenses
|
|
(43,855)
|
|
(32,623)
|
|
34
%
|
|
(152,634)
|
|
(116,395)
|
|
31
%
|
Total Operating
expenses
|
|
(178,607)
|
|
(151,291)
|
|
18
%
|
|
(630,067)
|
|
(579,193)
|
|
9
%
|
Income from
operations
|
|
65,744
|
|
67,183
|
|
(2)
%
|
|
151,877
|
|
108,825
|
|
40
%
|
Financial and Other
income (expense)
|
|
3,330
|
|
(111)
|
|
NM
|
|
1,939
|
|
(1,939)
|
|
NM
|
Income before
taxes
|
|
69,074
|
|
67,072
|
|
3
%
|
|
153,816
|
|
106,886
|
|
44
%
|
Provision for income
taxes
|
|
5,864
|
|
(20,254)
|
|
NM
|
|
(16,169)
|
|
(32,197)
|
|
(50)
%
|
Net Income
|
|
$
74,938
|
|
$
46,818
|
|
60
%
|
|
$
137,647
|
|
$
74,689
|
|
84
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to shareholders of Criteo S.A.
|
|
$
73,765
|
|
$
45,277
|
|
63
%
|
|
$
134,456
|
|
$
71,679
|
|
88
%
|
Net income available
to non-controlling interests
|
|
$
1,173
|
|
$
1,541
|
|
(24)
%
|
|
$
3,191
|
|
$
3,010
|
|
6
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding used in computing per share amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
60,590,826
|
|
60,336,486
|
|
|
|
60,717,446
|
|
60,876,480
|
|
|
Diluted
|
|
63,985,850
|
|
62,348,489
|
|
|
|
64,231,637
|
|
61,818,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income allocated
to shareholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.22
|
|
$
0.75
|
|
63
%
|
|
$
2.21
|
|
$
1.18
|
|
87
%
|
Diluted
|
|
$
1.15
|
|
$
0.73
|
|
58
%
|
|
$
2.09
|
|
$
1.16
|
|
80
%
|
CRITEO
S.A.
|
|
Consolidated
Statement of Cash Flows
|
|
(U.S. dollars in
thousands, unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
December
31,
|
|
|
|
|
|
2021
|
|
|
2020
|
|
YoY Change
|
|
2021
|
|
2020
|
|
YoY
Change
|
Net
income
|
|
$
|
74,938
|
|
|
$
|
46,818
|
|
60
|
%
|
|
$
|
137,647
|
|
$
|
74,689
|
|
84
|
%
|
Non-cash and
non-operating items
|
|
|
21,306
|
|
|
|
48,887
|
|
(56)
|
%
|
|
|
124,879
|
|
|
154,629
|
|
(19)
|
%
|
- Amortization and provisions
|
|
|
23,015
|
|
|
|
26,960
|
|
(15)
|
%
|
|
|
90,934
|
|
|
106,591
|
|
(15)
|
%
|
- Equity awards compensation expense (1)
|
|
|
12,354
|
|
|
|
6,305
|
|
96
|
%
|
|
|
44,528
|
|
|
28,770
|
|
55
|
%
|
- Net gain or (loss) on disposal of non-current assets
|
|
|
(2,729)
|
|
|
|
(20)
|
|
NM
|
|
|
|
1,965
|
|
|
2,714
|
|
(28)
|
%
|
- Change in deferred taxes
|
|
|
(23,210)
|
|
|
|
11,417
|
|
NM
|
|
|
|
(18,642)
|
|
|
3,720
|
|
NM
|
|
- Change in income taxes
|
|
|
11,863
|
|
|
|
3,456
|
|
NM
|
|
|
|
6,043
|
|
|
10,867
|
|
(44)
|
%
|
- Other
|
|
|
13
|
|
|
|
769
|
|
(98)
|
%
|
|
|
51
|
|
|
1,967
|
|
(97)
|
%
|
Changes in working
capital related to operating activities
|
|
|
(30,232)
|
|
|
|
(51,625)
|
|
(41)
|
%
|
|
|
(41,613)
|
|
|
(43,962)
|
|
(5)
|
%
|
- (Increase) / Decrease in trade receivables
|
|
|
(151,604)
|
|
|
|
(126,486)
|
|
20
|
%
|
|
|
(134,950)
|
|
|
(3,957)
|
|
NM
|
|
- Increase / (Decrease) in trade payables
|
|
|
88,384
|
|
|
|
61,989
|
|
43
|
%
|
|
|
82,691
|
|
|
(33,314)
|
|
NM
|
|
- (Increase) / Decrease in other current assets
|
|
|
(7,032)
|
|
|
|
(9,476)
|
|
(26)
|
%
|
|
|
(19,742)
|
|
|
(7,188)
|
|
NM
|
|
- Increase / (Decrease) in other current liabilities
|
|
|
38,807
|
|
|
|
26,406
|
|
47
|
%
|
|
|
33,033
|
|
|
6,261
|
|
NM
|
|
- Change in operating lease liabilities and right of use
assets
|
|
|
1,213
|
|
|
|
(4,058)
|
|
NM
|
|
|
|
(2,645)
|
|
|
(5,764)
|
|
(54)
|
%
|
CASH FROM
OPERATING ACTIVITIES
|
|
|
66,012
|
|
|
|
44,080
|
|
50
|
%
|
|
|
220,913
|
|
|
185,356
|
|
19
|
%
|
Acquisition of
intangible assets, property, plant and equipment
|
|
|
(10,600)
|
|
|
|
(10,250)
|
|
3
|
%
|
|
|
(54,983)
|
|
|
(67,287)
|
|
(18)
|
%
|
Change in accounts
payable related to intangible assets, property, plant and
equipment
|
|
|
455
|
|
|
|
(12,052)
|
|
NM
|
|
|
|
1,973
|
|
|
1,818
|
|
9
|
%
|
Payment for
businesses, net of cash acquired
|
|
|
(892)
|
|
|
|
(1,173)
|
|
(24)
|
%
|
|
|
(10,419)
|
|
|
(1,176)
|
|
NM
|
|
Change in other
non-current financial assets
|
|
|
865
|
|
|
|
(13,819)
|
|
NM
|
|
|
|
(12,938)
|
|
|
(34,448)
|
|
(62)
|
|
CASH USED FOR
INVESTING ACTIVITIES
|
|
|
(10,172)
|
|
|
|
(37,294)
|
|
(73)
|
%
|
|
|
(76,367)
|
|
|
(101,093)
|
|
(24)
|
%
|
Proceeds from
borrowings under line-of-credit agreement
|
|
|
—
|
|
|
|
(4,315)
|
|
NM
|
|
|
|
—
|
|
|
153,188
|
|
NM
|
|
Repayment of
borrowings
|
|
|
13
|
|
|
|
(167,163)
|
|
NM
|
|
|
|
(1,249)
|
|
|
(167,344)
|
|
(99)
|
%
|
Proceeds from
exercise of stock options
|
|
|
3,508
|
|
|
|
1,626
|
|
NM
|
|
|
|
25,196
|
|
|
1,727
|
|
NM
|
|
Repurchase of
treasury stocks
|
|
|
(27,416)
|
|
|
|
—
|
|
NM
|
|
|
|
(100,027)
|
|
|
(43,655)
|
|
NM
|
|
Change in other
financial liabilities
|
|
|
(401)
|
|
|
|
347
|
|
NM
|
|
|
|
(4,037)
|
|
|
(1,663)
|
|
NM
|
|
CASH USED
FOR FINANCING ACTIVITIES
|
|
|
(24,296)
|
|
|
|
(169,505)
|
|
(86)
|
|
|
|
(80,117)
|
|
|
(57,747)
|
|
39
|
%
|
Effect of exchange
rates changes on cash and cash equivalents
|
|
|
(13,475)
|
|
|
|
23,986
|
|
NM
|
|
|
|
(36,913)
|
|
|
42,732
|
|
NM
|
|
Net increase in cash
and cash equivalents
|
|
|
18,069
|
|
|
|
(138,733)
|
|
NM
|
|
|
|
27,516
|
|
|
69,248
|
|
(60)
|
%
|
Net cash and cash
equivalents at beginning of period
|
|
|
497,458
|
|
|
|
626,744
|
|
(21)
|
|
|
|
488,011
|
|
|
418,763
|
|
17
|
%
|
Net cash and cash
equivalents at end of period
|
|
$
|
515,527
|
|
|
$
|
488,011
|
|
6
|
%
|
|
$
|
515,527
|
|
$
|
488,011
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for taxes,
net of refunds
|
|
$
|
(5,482)
|
|
|
$
|
(5,381)
|
|
2
|
%
|
|
$
|
(28,767)
|
|
$
|
(17,610)
|
|
63
|
|
Cash paid for
interest
|
|
$
|
(347)
|
|
|
$
|
(1,336)
|
|
(74)
|
%
|
|
$
|
(1,486)
|
|
$
|
(2,155)
|
|
(31)
|
|
|
(1) Share-based compensation expense
according to ASC 718 Compensation - stock compensation accounted
for $11.9 million and $5.7 million of equity awards
compensation expense for the quarter ended December 31, 2021 and
2020, respectively, and $42.7 million and $27.1 million of equity
awards compensation for the twelve
months ended December, 31, 2021 and 2020, respectively.
|
CRITEO
S.A.
|
Reconciliation of
Cash from Operating Activities to Free Cash Flow
|
(U.S. dollars in
thousands, unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
December
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FROM
OPERATING ACTIVITIES
|
|
$
|
66,012
|
|
$
|
44,080
|
|
50
|
%
|
|
$
|
$
220,913
|
|
$
|
185,356
|
|
19
|
%
|
Acquisition of
intangible assets, property, plant and
equipment
|
|
|
(10,600)
|
|
|
(10,250)
|
|
3
|
%
|
|
|
(54,983)
|
|
|
(67,287)
|
|
(18)
|
%
|
Change in accounts
payable related to intangible
assets, property, plant and equipment
|
|
|
455
|
|
|
(12,052)
|
|
NM
|
|
|
|
1,973
|
|
|
1,818
|
|
9
|
%
|
FREE CASH FLOW
(1)
|
|
$
|
55,867
|
|
$
|
21,778
|
|
157
|
%
|
|
$
|
$
167,903
|
|
$
|
119,887
|
|
40
|
%
|
|
(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
Contribution ex-TAC to Gross Profit
|
(U.S. dollars in
thousands, unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
YoY
Change at
Constant
Currency
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
YoY
Change at
Constant
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
244,351
|
|
|
218,474
|
|
12
|
%
|
|
14
|
%
|
|
|
781,944
|
|
|
688,018
|
|
14
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Cost of
Revenue
|
|
|
31,840
|
|
|
34,700
|
|
(8)
|
%
|
|
(6)
|
%
|
|
|
138,851
|
|
|
137,028
|
|
1
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution ex-TAC
(1)
|
|
$
|
276,191
|
|
$
|
253,174
|
|
9
|
%
|
|
11
|
%
|
|
$
|
920,795
|
|
$
|
825,046
|
|
12
|
%
|
|
11
|
%
|
(1) We define Contribution ex-TAC as
our gross profit plus other costs of revenue generated over the
applicable measurement period. Contribution ex-TAC is not a measure
calculated in accordance with U.S. GAAP. We have included
Contribution ex-TAC 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 this measure can provide useful measures for
period-to-period comparisons of our business. Accordingly, we
believe that Contribution ex-TAC 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 Contribution ex-TAC 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 Contribution 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 Contribution ex-TAC alongside our
other U.S. GAAP financial result measures. The above table provides
a reconciliation of Contribution ex-TAC to gross profit.
|
|
CRITEO
S.A.
|
|
Segment
Information
|
|
(U.S. dollars in
thousands, unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
Segment
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
YoY
Change at
Constant
Currency
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
YoY
Change at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
Solutions
|
|
$
|
577,962
|
|
$
|
543,262
|
|
6
|
%
|
|
9
|
%
|
|
$
|
2,007,239
|
|
$
|
1,806,431
|
|
11
|
%
|
|
10
|
%
|
|
Retail Media
(2)
|
|
|
75,305
|
|
|
118,020
|
|
(36)
|
%
|
|
(36)
|
%
|
|
|
246,996
|
|
|
266,186
|
|
(7)
|
%
|
|
(8)
|
%
|
|
Total
|
|
|
653,267
|
|
|
661,282
|
|
(1)
|
%
|
|
1
|
%
|
|
|
2,254,235
|
|
|
2,072,617
|
|
9
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution
ex-TAC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
Solutions
|
|
|
228,378
|
|
|
219,245
|
|
4
|
%
|
|
7
|
%
|
|
|
796,152
|
|
|
746,751
|
|
7
|
%
|
|
6
|
%
|
|
Retail Media
(2)
|
|
|
47,813
|
|
|
33,929
|
|
41
|
%
|
|
41
|
%
|
|
|
124,643
|
|
|
78,295
|
|
59
|
%%
|
|
58
|
%
|
|
Total
(1)
|
|
$
|
276,191
|
|
$
|
253,174
|
|
9
|
%
|
|
11
|
%
|
|
$
|
920,795
|
|
$
|
825,046
|
|
12
|
%
|
|
11
|
%
|
(1) We define Contribution ex-TAC as
our gross profit plus other cost of sales generated over the
applicable measurement period. Contribution ex-TAC is not a measure
calculated in accordance with U.S. GAAP. We have included
Contribution ex-TAC 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 this measure can provide useful measures for
period-to-period comparisons of our business. Accordingly, we
believe that Contribution ex-TAC 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 Contribution ex-TAC 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 Contribution 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 Contribution ex-TAC alongside our
other U.S. GAAP financial result measures. The above table provides
a reconciliation of Contribution ex-TAC to gross profit.
|
|
(2) Criteo operates as two reportable
segments as of December 31, 2021. The table above presents the
operating results of our Marketing Solutions and Retail Media
segments. A strategic building block of Criteo's Commerce
Media Platform, the Retail Media Platform, introduced in June 2020,
and reported under the retail media segment, is a self-service
solution providing transparency, measurement and control to brands
and retailers. In all arrangements running on this platform, Criteo
recognizes revenue on a net basis, whereas revenue from
arrangements running on legacy Retail Media solutions are accounted
for on a gross basis. We expect most clients using Criteo's legacy
Retail Media solutions to transition to this platform by the second
half of 2022. As new clients onboard and existing clients
transition to the Retail Media Platform, Revenue may decline but
Contribution ex-TAC margin will increase. Contribution ex-TAC will
not be impacted by this transition.
|
CRITEO
S.A.
|
Reconciliation of
Adjusted EBITDA to Net Income
|
(U.S. dollars in
thousands, unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
December
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
Net
income
|
|
$
|
74,938
|
|
$
|
46,818
|
|
60
|
%
|
|
$
|
137,647
|
|
$
|
74,689
|
|
84
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial (Income)
expense
|
|
|
(347)
|
|
|
111
|
|
NM
|
|
|
|
1,044
|
|
|
1,939
|
|
(46)
|
%
|
Provision for income
taxes
|
|
|
(5,864)
|
|
|
20,254
|
|
NM
|
|
|
|
16,169
|
|
|
32,197
|
|
(50)
|
%
|
Equity awards
compensation expense
|
|
|
12,114
|
|
|
8,960
|
|
35
|
%
|
|
|
44,955
|
|
|
31,425
|
|
43
|
%
|
Research and
development
|
|
|
4,762
|
|
|
2,482
|
|
92
|
%
|
|
|
16,334
|
|
|
10,253
|
|
59
|
%
|
Sales and
operations
|
|
|
3,143
|
|
|
3,662
|
|
(14)
|
%
|
|
|
13,023
|
|
|
12,042
|
|
8
|
%
|
General and
administrative
|
|
|
4,209
|
|
|
2,816
|
|
49
|
%
|
|
|
15,598
|
|
|
9,130
|
|
71
|
%
|
Pension service
costs
|
|
|
319
|
|
|
583
|
|
(45)
|
%
|
|
|
1,324
|
|
|
2,232
|
|
(41)
|
%
|
Research and
development
|
|
|
166
|
|
|
290
|
|
(43)
|
%
|
|
|
686
|
|
|
1,114
|
|
(38)
|
%
|
Sales and
operations
|
|
|
49
|
|
|
103
|
|
(52)
|
%
|
|
|
207
|
|
|
394
|
|
(47)
|
%
|
General and
administrative
|
|
|
104
|
|
|
190
|
|
(45)
|
%
|
|
|
431
|
|
|
724
|
|
(40)
|
%
|
Depreciation and
amortization expense
|
|
|
21,756
|
|
|
22,140
|
|
(2)
|
%
|
|
|
88,402
|
|
|
88,238
|
|
0.2
|
%
|
Cost of revenue
(data center equipment)
|
|
|
14,611
|
|
|
15,354
|
|
(5)
|
%
|
|
|
61,119
|
|
|
55,935
|
|
9
|
%
|
Research and
development
|
|
|
2,967
|
|
|
1,712
|
|
73
|
%
|
|
|
9,484
|
|
|
10,741
|
|
(12)
|
%
|
Sales and
operations
|
|
|
3,579
|
|
|
4,033
|
|
(11)
|
%
|
|
|
14,780
|
|
|
16,770
|
|
(12)
|
%
|
General and
administrative
|
|
|
599
|
|
|
1,041
|
|
(42)
|
%
|
|
|
3,019
|
|
|
4,792
|
|
(37)
|
%
|
Acquisition-related
costs
|
|
|
6,118
|
|
|
174
|
|
NM
|
|
|
|
11,256
|
|
|
286
|
|
NM
|
|
General and
administrative
|
|
|
6,118
|
|
|
174
|
|
NM
|
|
|
|
11,256
|
|
|
286
|
|
NM
|
|
Restructuring related
and transformation (gain) costs (1)
|
|
|
1,833
|
|
|
4,383
|
|
(58)
|
%
|
|
|
21,698
|
|
|
19,989
|
|
9
|
%
|
Research and
development
|
|
|
513
|
|
|
747
|
|
(31)
|
%
|
|
|
5,751
|
|
|
4,240
|
|
36
|
%
|
Sales and
operations
|
|
|
568
|
|
|
2,605
|
|
(78)
|
%
|
|
|
9,380
|
|
|
9,398
|
|
(0.2)
|
%
|
General and
administrative
|
|
|
752
|
|
|
1,031
|
|
(27)
|
%
|
|
|
6,567
|
|
|
6,351
|
|
3
|
%
|
Total net
adjustments
|
|
|
35,929
|
|
|
56,605
|
|
(37)
|
%
|
|
|
184,848
|
|
|
176,306
|
|
5
|
%
|
Adjusted EBITDA
(2)
|
|
$
|
110,867
|
|
$
|
103,423
|
|
7
|
%
|
|
$
|
322,495
|
|
$
|
250,995
|
|
28
|
%
|
(1) For
the Three Months and the Twelve Months Ended December 2021, and
December 2020, respectively, the Company recognized restructuring
related and transformation
costs following its new organizational structure implemented to
support its Commerce Media Platform strategy:
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
(Gain) from
forfeitures of share-based compensation awards
|
239
|
|
(2,655)
|
|
(427)
|
|
(2,655)
|
Facilities related
(gain) costs
|
1,328
|
|
4,158
|
|
16,020
|
|
12,975
|
Payroll related
(gain) costs
|
(157)
|
|
1,422
|
|
4,480
|
|
5,911
|
Consulting costs
related to transformation
|
423
|
|
1,458
|
|
1,625
|
|
3,758
|
Total
restructuring related and transformation (gain)
costs
|
$
1,833
|
|
$
4,383
|
|
$
21,698
|
|
$
19,989
|
For the three months
ended and the twelve months ended December 31, 2021 and December
31, 2020, respectively, the cash outflows related to restructuring
related and
transformation costs were $12.4 million and $ 33.3 million, and
$3.9 million and $16.9 million respectively, and were mainly
comprised of payroll costs, broker and termination
penalties related to real-estate facilities and other consulting
fees.
|
(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, acquisition-related costs and restructuring related and
transformation costs. 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, and restructuring related and transformation
costs 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
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
December
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
2021
|
|
2020
|
|
YoY
Change
|
Research and
Development expenses
|
|
$
|
(44,860)
|
|
$
|
(32,797)
|
|
37
|
%
|
|
$
|
(151,817)
|
|
$
|
(132,513)
|
|
15
|
%
|
Equity awards
compensation expense
|
|
|
4,762
|
|
|
2,482
|
|
92
|
%
|
|
|
16,334
|
|
|
10,253
|
|
59
|
%
|
Depreciation and
Amortization expense
|
|
|
2,967
|
|
|
1,712
|
|
73
|
%
|
|
|
9,484
|
|
|
10,741
|
|
(12)
|
%
|
Pension service
costs
|
|
|
166
|
|
|
290
|
|
(43)
|
%
|
|
|
686
|
|
|
1,114
|
|
(38)
|
%
|
Restructuring
related and transformation (gain) costs
|
|
|
513
|
|
|
747
|
|
(31)
|
%
|
|
|
5,751
|
|
|
4,240
|
|
36
|
%
|
Non GAAP - Research
and Development expenses
|
|
|
(36,452)
|
|
|
(27,566)
|
|
32
|
%
|
|
|
(119,562)
|
|
|
(106,165)
|
|
13
|
%
|
Sales and Operations
expenses
|
|
|
(89,892)
|
|
|
(85,871)
|
|
5
|
%
|
|
|
(325,616)
|
|
|
(330,285)
|
|
(1)
|
%
|
Equity awards
compensation expense
|
|
|
3,143
|
|
|
3,662
|
|
(14)
|
%
|
|
|
13,023
|
|
|
12,042
|
|
8
|
%
|
Depreciation and
Amortization expense
|
|
|
3,579
|
|
|
4,033
|
|
(11)
|
%
|
|
|
14,780
|
|
|
16,770
|
|
(12)
|
%
|
Pension service
costs
|
|
|
49
|
|
|
103
|
|
(52)
|
%
|
|
|
207
|
|
|
394
|
|
(47)
|
%
|
Restructuring
related and transformation (gain) costs
|
|
|
568
|
|
|
2,605
|
|
(78)
|
%
|
|
|
9,380
|
|
|
9,398
|
|
(0.2)
|
%
|
Non GAAP - Sales and
Operations expenses
|
|
|
(82,553)
|
|
|
(75,468)
|
|
9
|
%
|
|
|
(288,226)
|
|
|
(291,681)
|
|
(1)
|
%
|
General and
Administrative expenses
|
|
|
(43,855)
|
|
|
(32,623)
|
|
34
|
%
|
|
|
(152,634)
|
|
|
(116,395)
|
|
31
|
%
|
Equity awards
compensation expense
|
|
|
4,209
|
|
|
2,816
|
|
49
|
%
|
|
|
15,598
|
|
|
9,130
|
|
71
|
%
|
Depreciation and
Amortization expense
|
|
|
599
|
|
|
1,041
|
|
(42)
|
%
|
|
|
3,019
|
|
|
4,792
|
|
(37)
|
%
|
Pension service
costs
|
|
|
104
|
|
|
190
|
|
(45)
|
%
|
|
|
431
|
|
|
724
|
|
(40)
|
%
|
Acquisition-related costs
|
|
|
6,118
|
|
|
174
|
|
NM
|
|
|
|
11,256
|
|
|
286
|
|
NM
|
|
Restructuring
related and transformation (gain) costs
|
|
|
752
|
|
|
1,031
|
|
(27)
|
%
|
|
|
6,567
|
|
|
6,351
|
|
3
|
%
|
Non GAAP - General
and Administrative expenses
|
|
|
(32,073)
|
|
|
(27,371)
|
|
17
|
%
|
|
|
(115,763)
|
|
|
(95,112)
|
|
22
|
%
|
Total Operating
expenses
|
|
|
(178,607)
|
|
|
(151,291)
|
|
18.1
|
%
|
|
|
(630,067)
|
|
|
(579,193)
|
|
9
|
%
|
Equity awards
compensation expense
|
|
|
12,114
|
|
|
8,960
|
|
35
|
%
|
|
|
44,955
|
|
|
31,425
|
|
43
|
%
|
Depreciation and
Amortization expense
|
|
|
7,145
|
|
|
6,786
|
|
5
|
%
|
|
|
27,283
|
|
|
32,303
|
|
(16)
|
%
|
Pension service
costs
|
|
|
319
|
|
|
583
|
|
(45)
|
%
|
|
|
1,324
|
|
|
2,232
|
|
(41)
|
%
|
Acquisition-related costs
|
|
|
6,118
|
|
|
174
|
|
NM
|
|
|
|
11,256
|
|
|
286
|
|
NM
|
|
Restructuring
related and transformation (gain) costs
|
|
|
1,833
|
|
|
4,383
|
|
(58)
|
%
|
|
|
21,698
|
|
|
19,989
|
|
9
|
%
|
Total Non GAAP
Operating expenses (1)
|
|
$
|
(151,078)
|
|
$
|
(130,405)
|
|
16
|
%
|
|
$
|
(523,551)
|
|
$
|
(492,958)
|
|
6
|
%
|
(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,
acquisition-related costs and restructuring related and
transformation costs. 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
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
December
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
|
2021
|
|
2020
|
|
YoY
Change
|
Equity awards
compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
$
|
4,762
|
|
$
|
2,482
|
|
92
|
%
|
|
$
|
16,334
|
|
$
|
10,253
|
|
59
|
%
|
Sales and
operations
|
|
|
3,143
|
|
|
3,662
|
|
(14)
|
%
|
|
|
13,023
|
|
|
12,042
|
|
8
|
%
|
General and
administrative
|
|
|
4,209
|
|
|
2,816
|
|
49
|
%
|
|
|
15,598
|
|
|
9,130
|
|
71
|
%
|
Total equity
awards compensation expense
|
|
|
12,114
|
|
|
8,960
|
|
35
|
%
|
|
|
44,955
|
|
|
31,425
|
|
43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension service
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
166
|
|
|
290
|
|
(43)
|
%
|
|
|
686
|
|
|
1,114
|
|
(38)
|
%
|
Sales and
operations
|
|
|
49
|
|
|
103
|
|
(52)
|
%
|
|
|
207
|
|
|
394
|
|
(47)
|
%
|
General and
administrative
|
|
|
104
|
|
|
190
|
|
(45)
|
%
|
|
|
431
|
|
|
724
|
|
(40)
|
%
|
Total pension
service costs
|
|
|
319
|
|
|
583
|
|
(45)
|
%
|
|
|
1,324
|
|
|
2,232
|
|
(41)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (data
center equipment)
|
|
|
14,611
|
|
|
15,354
|
|
(5)
|
%
|
|
|
61,119
|
|
|
55,935
|
|
9
|
%
|
Research and
development
|
|
|
2,967
|
|
|
1,712
|
|
73
|
%
|
|
|
9,484
|
|
|
10,741
|
|
(12)
|
%
|
Sales and
operations
|
|
|
3,579
|
|
|
4,033
|
|
(11)
|
%
|
|
|
14,780
|
|
|
16,770
|
|
(12)
|
%
|
General and
administrative
|
|
|
599
|
|
|
1,041
|
|
(42)
|
%
|
|
|
3,019
|
|
|
4,792
|
|
(37)
|
%
|
Total depreciation
and amortization expense
|
|
|
21,756
|
|
|
22,140
|
|
(2)
|
%
|
|
|
88,402
|
|
|
88,238
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
6,118
|
|
|
174
|
|
NM
|
|
|
|
11,256
|
|
|
286
|
|
NM
|
|
Total
acquisition-related costs
|
|
|
6,118
|
|
|
174
|
|
NM
|
|
|
|
11,256
|
|
|
286
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring related
and transformation (gain) costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
513
|
|
|
747
|
|
(31)
|
%
|
|
|
5,751
|
|
|
4,240
|
|
36
|
%
|
Sales and
operations
|
|
|
568
|
|
|
2,605
|
|
(78)
|
%
|
|
|
9,380
|
|
|
9,398
|
|
(0.2)
|
%
|
General and
administrative
|
|
|
752
|
|
|
1,031
|
|
(27)
|
%
|
|
|
6,567
|
|
|
6,351
|
|
3
|
%
|
Total
restructuring related and transformation (gain)
costs
|
|
$
|
1,833
|
|
$
|
4,383
|
|
(58)
|
%
|
|
$
|
21,698
|
|
$
|
19,989
|
|
9
|
%
|
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
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
|
|
|
December
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
2021
|
|
2020
|
|
YoY
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
74,938
|
|
$
|
46,818
|
|
60
|
%
|
|
$
|
137,647
|
|
$
|
74,689
|
|
84
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity awards
compensation expense
|
|
|
12,114
|
|
|
8,960
|
|
35
|
%
|
|
|
44,955
|
|
|
31,425
|
|
43
|
%
|
Amortization of
acquisition-related intangible assets
|
|
|
3,755
|
|
|
2,926
|
|
28
|
%
|
|
|
12,929
|
|
|
15,520
|
|
(17)
|
%
|
Acquisition-related
costs
|
|
|
6,118
|
|
|
174
|
|
NM
|
|
|
|
11,256
|
|
|
286
|
|
NM
|
|
Restructuring related
and transformation (gain) costs
|
|
|
1,833
|
|
|
4,383
|
|
(58)
|
%
|
|
|
21,698
|
|
|
19,989
|
|
9
|
%
|
Tax impact of the
above adjustments (1)
|
|
|
(6,557)
|
|
|
(2,127)
|
|
NM
|
|
|
|
(11,243)
|
|
|
(7,738)
|
|
45
|
%
|
Total net
adjustments
|
|
|
17,263
|
|
|
14,316
|
|
21
|
%
|
|
|
79,595
|
|
|
59,482
|
|
34
|
%
|
Adjusted net
income (2)
|
|
$
|
92,201
|
|
$
|
61,134
|
|
51
|
%
|
|
$
|
217,242
|
|
$
|
134,171
|
|
62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
|
60,590,826
|
|
|
60,336,486
|
|
|
|
|
|
60,717,446
|
|
|
60,876,480
|
|
|
|
-
Diluted
|
|
|
63,985,850
|
|
|
62,348,489
|
|
|
|
|
|
64,231,637
|
|
|
61,818,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
$
|
1.52
|
|
$
|
1.01
|
|
50
|
%
|
|
$
|
3.58
|
|
$
|
2.20
|
|
63
|
%
|
-
Diluted
|
|
$
|
1.44
|
|
$
|
0.98
|
|
47
|
%
|
|
$
|
3.38
|
|
$
|
2.17
|
|
56
|
%
|
(1) We consider the nature of the
adjustment to determine its tax treatment in the various tax
jurisdictions we operate in. The tax impact is calculated by
applying the actual tax rate for the entity and period to which the
adjustment relates.
|
(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, acquisition-related costs, restructuring related
and transformation costs, 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, restructuring related and
transformation 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
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
December
31,
|
|
|
|
|
|
2021
|
|
2020
|
|
YoY Change
|
|
2021
|
|
2020
|
|
|
YoY
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue as
reported
|
|
$
|
653,267
|
|
|
$
|
661,282
|
|
|
(1)
|
%
|
|
$
|
2,254,235
|
|
|
$
|
2,072,617
|
|
|
9
|
%
|
Conversion impact
U.S. dollar/other currencies
|
|
|
14,553
|
|
|
|
—
|
|
|
|
|
|
|
(19,713)
|
|
|
|
—
|
|
|
|
|
Revenue at constant
currency(1)
|
|
|
667,820
|
|
|
|
661,282
|
|
|
1
|
%
|
|
|
2,234,522
|
|
|
|
2,072,61
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traffic acquisition
costs as reported
|
|
|
(377,076)
|
|
|
|
(408,108)
|
|
|
(8)
|
%
|
|
|
(1,333,440)
|
|
|
|
(1,247,571)
|
|
|
7
|
%
|
Conversion impact
U.S. dollar/other currencies
|
|
|
(8,567)
|
|
|
|
—
|
|
|
|
|
|
|
12,263
|
|
|
|
—
|
|
|
|
|
Traffic Acquisition
Costs at constant currency(1)
|
|
|
(385,643)
|
|
|
|
(408,108)
|
|
|
(6)
|
%
|
|
|
(1,321,177)
|
|
|
|
(1,247,571)
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution ex-TAC
as reported(2)
|
|
|
276,191
|
|
|
|
253,174
|
|
|
9
|
%
|
|
|
920,795
|
|
|
|
825,046
|
|
|
12
|
|
Conversion impact
U.S. dollar/other currencies
|
|
|
5,986
|
|
|
|
—
|
|
|
|
|
|
|
(7,450)
|
|
|
|
—
|
|
|
|
|
Contribution ex-TAC
at constant currency(2)
|
|
|
282,177
|
|
|
|
253,174
|
|
|
11
|
%
|
|
|
913,345
|
|
|
|
825,046
|
|
|
11
|
%
|
Contribution
ex-TAC(2)/Revenue as reported
|
|
|
42
|
%
|
|
|
38
|
%
|
|
|
|
|
|
41
|
%
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other cost of revenue
as reported
|
|
|
(31,840)
|
|
|
|
(34,700)
|
|
|
(8)
|
%
|
|
|
(138,851)
|
|
|
|
(137,028)
|
|
|
1
|
%
|
Conversion impact
U.S. dollar/other currencies
|
|
|
(919)
|
|
|
|
—
|
|
|
|
|
|
|
(372)
|
|
|
|
—
|
|
|
|
|
Other cost of revenue
at constant currency(1)
|
|
|
(32,759)
|
|
|
|
(34,700)
|
|
|
(6)
|
%
|
|
|
(139,223)
|
|
|
|
(137,028)
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit as
reported
|
|
|
244,351
|
|
|
|
218,474
|
|
|
12
|
%
|
|
|
781,944
|
|
|
|
688,018
|
|
|
14
|
%
|
Conversion impact
U.S. dollar/other currencies
|
|
|
5,067
|
|
|
|
—
|
|
|
|
|
|
|
(7,822)
|
|
|
|
—
|
|
|
|
|
Gross Profit at
constant currency(1)
|
|
|
249,418
|
|
|
|
218,474
|
|
|
14
|
%
|
|
|
774,122
|
|
|
|
688,018
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(3)
|
|
|
110,867
|
|
|
|
103,423
|
|
|
7
|
%
|
|
|
322,495
|
|
|
|
250,995
|
|
|
28
|
%
|
Conversion impact
U.S. dollar/other currencies
|
|
|
2,423
|
|
|
|
—
|
|
|
|
|
|
|
(7,281)
|
|
|
|
—
|
|
|
|
|
Adjusted
EBITDA(3) at constant currency(1)
|
|
$
|
113,290
|
|
|
$
|
103,423
|
|
|
10
|
%
|
|
$
|
315,214
|
|
|
$
|
250,995
|
|
|
26
|
%
|
Adjusted
EBITDA(3)/Contribution ex-TAC(2)
|
|
|
40
|
%
|
|
|
41
|
%
|
|
|
|
|
|
35
|
%
|
|
|
30
|
%
|
|
|
|
(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) Contribution ex-TAC is not a
measure calculated in accordance with U.S. GAAP. See the table
entitled "Reconciliation of Contribution ex-TAC to Gross Profit"
for a reconciliation of Contribution ex-TAC to gross
profit.
|
|
(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)
|
|
|
|
Twelve Months
Ended
|
|
|
2021
|
|
2020
|
Shares outstanding as
at January 1,
|
|
60,639,570
|
|
62,293,508
|
Weighted average
number of shares issued during the period
|
|
77,876
|
|
(1,417,028)
|
Basic number of
shares - Basic EPS basis
|
|
60,717,446
|
|
60,876,480
|
Dilutive effect of
share options, warrants, employee warrants - Treasury
method
|
|
3,514,191
|
|
942,113
|
Diluted number of
shares - Diluted EPS basis
|
|
64,231,637
|
|
61,818,593
|
|
|
|
|
|
Shares issued as
December 31, before Treasury stocks
|
|
65,883,347
|
|
66,272,106
|
Treasury stock as of
December 31,
|
|
(5,207,873)
|
|
(5,632,536)
|
Shares outstanding as
of December 31, after Treasury stocks
|
|
60,675,474
|
|
60,639,570
|
Total dilutive effect
of share options, warrants, employee warrants
|
|
6,213,932
|
|
7,400,024
|
Fully diluted shares
as at December 31,
|
|
66,889,406
|
|
68,039,594
|
CRITEO
S.A.
|
Supplemental
Financial Information and Operating Metrics
|
(U.S. dollars in
thousands except where stated, unaudited)
|
|
|
YoY
Change
|
QoQ
Change
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
Q3
2020
|
Q2
2020
|
Q1
2020
|
Q4
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Clients
|
1%
|
—%
|
21,745
|
21,747
|
21,332
|
20,626
|
21,460
|
20,565
|
20,359
|
20,360
|
20,247
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
(1)%
|
28%
|
653,267
|
508,580
|
551,311
|
541,077
|
661,282
|
470,345
|
437,614
|
503,376
|
652,640
|
Americas
|
(8)%
|
41%
|
287,270
|
204,428
|
221,227
|
203,900
|
312,817
|
204,618
|
185,674
|
191,745
|
306,250
|
EMEA
|
1%
|
25%
|
234,559
|
188,354
|
209,303
|
212,096
|
232,137
|
167,800
|
159,621
|
190,114
|
216,639
|
APAC
|
13%
|
14%
|
131,438
|
115,798
|
120,781
|
125,081
|
116,328
|
97,927
|
92,319
|
121,517
|
129,751
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
(1)%
|
28%
|
653,267
|
508,580
|
551,311
|
541,077
|
661,282
|
470,345
|
437,614
|
503,376
|
652,640
|
Marketing
Solutions
|
6%
|
26%
|
577,962
|
458,622
|
487,465
|
483,190
|
543,262
|
412,126
|
381,270
|
469,773
|
574,783
|
Retail Media
(2)
|
(36)%
|
51%
|
75,305
|
49,958
|
63,846
|
57,887
|
118,020
|
58,219
|
56,344
|
33,603
|
77,857
|
|
|
|
|
|
|
|
|
|
|
|
|
TAC
|
(8)%
|
27%
|
(377,076)
|
(297,619)
|
(331,078)
|
(327,667)
|
(408,108)
|
(284,401)
|
(257,698)
|
(297,364)
|
(386,388)
|
Marketing
Solutions
|
8%
|
26%
|
(349,584)
|
(276,498)
|
(294,132)
|
(290,873)
|
(324,017)
|
(243,616)
|
(218,990)
|
(273,057)
|
(331,709)
|
Retail Media
(2)
|
(67)%
|
30%
|
(27,492)
|
(21,121)
|
(36,946)
|
(36,794)
|
(84,091)
|
(40,785)
|
(38,708)
|
(24,307)
|
(54,679)
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution
ex-TAC (1)
|
9%
|
31%
|
276,191
|
210,961
|
220,233
|
213,410
|
253,174
|
185,944
|
179,916
|
206,012
|
266,252
|
Marketing
Solutions
|
4%
|
25%
|
228,378
|
182,124
|
193,333
|
192,317
|
219,245
|
168,510
|
162,280
|
196,716
|
243,074
|
Retail Media
(2)
|
41%
|
66%
|
47,813
|
28,837
|
26,900
|
21,093
|
33,929
|
17,434
|
17,636
|
9,296
|
23,178
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities
|
50%
|
29%
|
66,012
|
51,179
|
26,360
|
77,362
|
44,080
|
51,156
|
33,377
|
56,743
|
59,359
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(55)%
|
(36)%
|
10,145
|
15,957
|
13,128
|
13,780
|
22,302
|
12,898
|
18,532
|
11,737
|
17,520
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures/Revenue
|
(1)ppt
|
(1)ppt
|
2%
|
3%
|
2%
|
3%
|
3%
|
3%
|
4%
|
2%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
position
|
6%
|
4%
|
515,527
|
497,458
|
489,521
|
520,060
|
488,011
|
626,744
|
578,181
|
436,506
|
418,763
|
|
|
|
|
|
|
|
|
|
|
|
|
Headcount
|
7%
|
5%
|
2,781
|
2,658
|
2,572
|
2,532
|
2,594
|
2,636
|
2,685
|
2,701
|
2,755
|
|
|
|
|
|
|
|
|
|
|
|
|
Days Sales
Outstanding (days - end of month)
|
9
days
|
(5)
days
|
65
|
70
|
66
|
64
|
56
|
62
|
61
|
62
|
52
|
(1)
We define Contribution ex-TAC as our gross profit plus other costs
of revenue generated over the applicable measurement period.
Contribution ex-TAC is not a measure calculated in accordance with
U.S. GAAP. We have included Contribution ex-TAC 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 this measure can provide useful
measures for period-to-period comparisons of our business.
Accordingly, we believe that Contribution ex-TAC 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 Contribution ex-TAC 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 Contribution 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 Contribution ex-TAC
alongside our other U.S. GAAP financial result measures.
|
|
(2) Criteo operates as two reportable
segments as of December 31, 2021. The table above presents the
operating results of our Marketing Solutions and Retail Media
segments. A strategic building block of Criteo's Commerce
Media Platform, the Retail Media Platform, introduced in June 2020,
and reported under the retail media segment, is a self-service
solution providing transparency, measurement and control to brands
and retailers. In all arrangements running on this platform, Criteo
recognizes revenue on a net basis, whereas revenue from
arrangements running on legacy Retail Media solutions are accounted
for on a gross basis. We expect most clients using Criteo's legacy
Retail Media solutions to transition to this platform by the second
half of 2022. As new clients onboard and existing clients
transition to the Retail Media Platform, Revenue may decline but
Contribution ex-TAC margin will increase. Contribution ex-TAC will
not be impacted by this transition.
|
View original
content:https://www.prnewswire.com/news-releases/criteo-reports-strong-fourth-quarter-and-fiscal-year-2021-results-301478420.html
SOURCE Criteo S.A.