6-K 1 d814344d6k.htm CRITEO S.A. Criteo S.A.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

November 4, 2014

Commission File Number: 001-36153

 

 

CRITEO S.A.

(Translation of registrant’s name into English)

 

 

32, rue Blanche

75009 Paris – France

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

x   Form 20-F    ¨  Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

 

 

EXHIBIT LIST

 

Exhibit

   

Description

99.1    Press Release dated November 4, 2014.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  CRITEO S.A.

Date: November 4, 2014

   By:  

/s/ Jean-Baptiste Rudelle

  Name:   Jean-Baptiste Rudelle
  Title:   Chief Executive Officer

Exhibit 99.1

 

LOGO

CRITEO REPORTS RECORD RESULTS FOR THE THIRD QUARTER 2014

AND INCREASES FULL-YEAR 2014 GUIDANCE

NEW YORK – November 4, 2014 – Criteo S.A. (NASDAQ: CRTO), the performance marketing technology company, today announced its financial results for the third quarter ended September 30, 2014.

 

  •   Revenue in the third quarter 2014 increased 70.9% (or 71.9% at constant currency1) to €194.4 million, compared with €113.8 million in the third quarter 2013.

 

  •   Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, in the third quarter 2014 grew 65.8% (or 66.5% at constant currency) to €77.6 million, compared with €46.8 million in the third quarter 2013.

 

  •   Net income in the third quarter 2014 increased by €8.4 million to €11.5 million, compared with €3.0 million in the third quarter 2013.

 

  •   Adjusted EBITDA for the third quarter 2014 was €19.8 million, an increase of 71.4% (or 73.1% at constant currency), compared with €11.6 million in the third quarter 2013.

 

  •   Cash flow from operating activities in the third quarter 2014 increased by €21.7 million to €25.5 million, compared with €3.7 million in the third quarter 2013.

 

  •   Free Cash Flow for the third quarter 2014 was €14.4 million, an increase of €16.3 million compared with a negative €1.9 million free cash flow in the third quarter 2013.

Executive Quote

“We delivered another record quarter exceeding our expectations,” said JB Rudelle, Criteo’s co-founder and CEO. “Performance is the cornerstone of our company and we remain focused on our single goal of generating more sales for our clients.”

Operating Highlights

 

  •   Our newly enhanced Criteo Engine, optimized for maximizing the conversion of our clients’ customers, was rolled out to over 78% of our client base at the end of the third quarter.

 

  •   74% of our client base used our multi-screen solution in the third quarter 2014.

 

  •   Year-over-year growth in the Americas continued to accelerate to 97% at constant currency in the third quarter from 78% in the second quarter, driven by strong performance in the US.

 

  •   Total number of clients grew by 450 in the third quarter to a record 6,581, representing a 42% year-over-year growth.

 

  •   New client additions in the third quarter 2014 included:

 

  •   In the Americas: Carrentals.com, Online Shoes, Shoeme, Thredup and Travelocity

 

  •   In EMEA: Ford, Fotocasa, Openbank and Sephora

 

  •   In Asia-Pacific: Airbnb, Hyundai Hmall, Lazada and MakeMyTrip

 

1  Variations at constant currency exclude the impact of foreign currency fluctuations and are computed by restating 2014 figures with the 2013 average exchange rates.

 

1

Revenue ex-TAC

Revenue ex-TAC grew 65.8% in the third quarter 2014, or 66.5% at constant currency, to €77.6 million, compared with €46.8 million in the third quarter 2013. This year-over-year performance was primarily driven by the continued roll-out of our technology and products, the steady growth in our client base across geographies and our continued success in broadening our publisher base.

 

  •   In the Americas, revenue ex-TAC in the third quarter 2014 grew by 94.2% over the comparable quarter in 2013, or 96.6% at constant currency, to €23.1 million. The Americas represented approximately 30% of our global revenue ex-TAC in the third quarter 2014.

 

  •   Revenue ex-TAC in EMEA in the third quarter 2014 increased by 52.5% over the same period last year, or 50.8% at constant currency, to €38.7 million. EMEA represented approximately 50% of our global revenue ex-TAC in the third quarter 2014.

 

  •   Revenue ex-TAC in Asia-Pacific in the third quarter 2014 increased by 65.5% over the comparable quarter in 2013, or 70.4% at constant currency, to €15.8 million. Asia-Pacific accounted for approximately 20% of our global revenue ex-TAC in the third quarter 2014.

Revenue ex-TAC margin as a percentage of revenue in the third quarter 2014 was at 39.9%, consistent with prior quarters.

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA for the third quarter 2014 was €19.8 million, an increase of 71.4%, or 73.1% at constant currency, compared with €11.6 million in the third quarter 2013. This year-over-year increase in Adjusted EBITDA is primarily the result of the strong revenue ex-TAC performance in the quarter. In addition, a slightly slower hiring pace during the summer, combined with the postponed signature of a lease for new facilities to the fourth quarter, contributed to increasing our Adjusted EBITDA this quarter.

Operating expenses in the third quarter of 2014 increased by 62.7% to €59.2 million, compared with the third quarter 2013. Excluding the impact of share-based compensation, pension costs, depreciation and amortization and acquisition-related deferred price consideration, which, taking all exclusions together, we reference as operating expenses on a “Non-IFRS basis,” our operating expenses in the third quarter 2014 were €52.7 million, an increase of 62.0% compared with the third quarter of 2013. This increase in operating expenses over the period was principally related to headcount growth across our three main functions - Research & Development, Sales & Operations and General & Administrative - as we continued to scale the whole Criteo organization. In particular, our headcount in Sales & Operations increased by 67% year-over-year in an effort to capture market opportunity in our geographies, especially in our mid-market organization. We intend to continue to invest significantly in Research & Development and Sales & Operations in the fourth quarter, to support our current and anticipated future growth.

Net Income and Adjusted Net Income

Net income for the third quarter 2014 was €11.5 million, representing a €8.4 million increase compared with €3.0 million in the third quarter 2013. Net income available to shareholders of Criteo S.A. for the third quarter 2014 was €11.4 million, or €0.18 per diluted share, compared with €2.8 million, or €0.05 per diluted share, in the third quarter 2013.

Adjusted Net Income for the third quarter 2014, or our net income adjusted to eliminate the impact of share-based compensation expense, amortization of acquisition-related intangible assets and acquisition-related deferred price consideration and the tax impact of these adjustments, was €16.7 million, representing a €10.6 million increase compared with €6.1 million in the third quarter 2013.

 

2

Cash Flow and Cash Position

 

  •   Our cash flow generated by operating activities in the third quarter 2014 increased by €21.7 million to €25.5 million, compared with €3.7 million in the third quarter 2013.

 

  •   Our free cash flow, defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment, net of proceeds from disposal, was €14.4 million in the third quarter 2014, an increase of €16.3 million, compared with a negative €1.9 million free cash flow in the third quarter 2013.

 

  •   Total cash, cash equivalents and short-term investments were at €256.7 million as of September 30, 2014. This represented an increase of €22.4 million compared with December 31, 2013, primarily the result of €22.7 million free cash flow generation over the period and proceeds from capital increases of €20.1 million, which were offset by the €18.8 million cash consideration for the acquisitions of Tedemis S.A. and AdQuantic SAS, in February 2014 and April 2014, respectively.

Business Outlook

The following forward-looking statements reflect Criteo’s expectations as of November 4, 2014.

Fourth Quarter 2014 Guidance:

 

  •   Revenue ex-TAC for the fourth quarter ending December 31, 2014 is expected to be between €89 million and €91 million.

 

  •   Adjusted EBITDA for the fourth quarter ending December 31, 2014 is expected to be between €27 million and €29 million.

Fiscal Year 2014 Guidance:

 

  •   The Company is increasing its Revenue ex-TAC outlook for the fiscal year ending December 31, 2014, now expected to be between €296 million and €298 million.

 

  •   The Company is increasing its Adjusted EBITDA outlook for the fiscal year ending December 31, 2014, now expected to be between €74.6 million and €76.6 million.

The above guidance assumes no additional acquisitions are completed during the quarter ending December 31, 2014.

 

3

Non-IFRS Financial Measures

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

Revenue ex-TAC is our revenue excluding traffic acquisition costs (TAC) generated over the applicable measurement period. Revenue ex-TAC is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Revenue ex-TAC provides useful information to investors and the market generally in understanding and evaluating our operating results in the same manner as our management and board of directors.

Adjusted EBITDA is our income (loss) from operations before interest, taxes, depreciation and amortization, adjusted to eliminate the impact of share-based compensation expense, pension service costs and acquisition-related deferred price consideration. Adjusted EBITDA is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, we believe that the elimination of non-cash compensation expense, pension costs and acquisition-related deferred price consideration in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business.

Adjusted Net Income is our net income adjusted to eliminate the impact of share-based compensation expense, amortization of acquisition-related intangible assets and acquisition-related deferred price consideration, and the tax impact of these adjustments. Adjusted Net Income is not a measure calculated in accordance with IFRS. In particular, we believe that the elimination of share-based compensation expense, amortization of acquisition-related intangible assets and acquisition-related deferred price consideration and the tax impact of these adjustments in calculating Adjusted Net Income can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted Net Income provides useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Please refer to supplemental financial tables provided in the appendix of this press release for a reconciliation of Revenue ex-TAC to revenue, Adjusted EBITDA to net income and Adjusted Net Income to net income, the most comparable IFRS measurements. Our use of non-IFRS financial measures has limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under the International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board.

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

These measures may be different than non-IFRS financial measures used by other companies. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. Explanations of the Company’s non-IFRS financial measures, and reconciliations of these financial measures to the IFRS financial measures the Company considers most comparable, are included in the accompanying tables below.

 

4

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, 2014, our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: recent growth rates not being indicative of future growth, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, the investments in new business opportunities and the timing of these investments, the impact of competition, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, uncertainty regarding international growth and expansion, and the financial impact of maximizing revenue ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results and those risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in the Company’s SEC filings and reports, including the Company’s Registration Statement on Form F-1 filed with the SEC on March 20, 2014, as well as future filings and reports by the Company. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Conference Call Information

Criteo will hold a conference call today, November 4, 2014, at 5:00pm ET, 11:00pm CET, to discuss Criteo’s third quarter 2014 operating and financial results, as well as other forward-looking information about Criteo’s business.

Conference call details are:

 

•    US callers:

    +1 646 254 3367, Conference ID: 2017352

•    International callers:

    +33 1 76 77 22 28, Conference ID: 2017352

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

About Criteo

Criteo delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to measure. Criteo has over 1,000 employees in 21 offices across the Americas, Europe and Asia-Pacific, serving over 6,000 advertisers worldwide with direct relationships with over 8,000 publishers.

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

 

5

CRITEO S.A.

Consolidated Statement of Income

(Euros in thousands, except per share data)

(unaudited)

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2013      2014      Year-over-
year
growth		     2013      2014      Year-over-
year
growth		  

Revenue

      113,811         194,449         70.9 %      308,071         512,285         66.3 % 

Cost of revenue

                 

Traffic Acquisition cost (TAC)

      -66,996         -116,853         74.4 %      -183,918         -304,933         65.8 % 

Other cost of revenue

      -4,742         -9,347         97.1 %      -15,622         -25,096         60.6 % 

Gross Profit

      42,073         68,249         62.2 %      108,531         182,256         67.9 % 

Research & development expenses

      -9,008         -12,244         35.9 %      -22,202         -33,102         49.1 % 

Sales & operations expenses

      -20,427         -34,715         69.9 %      -60,510         -93,724         54.9 % 

General & administrative expenses

      -6,919         -12,192         76.2 %      -22,114         -35,090         58.7 % 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total operating expenses

      -36,355         -59,151         62.7 %      -104,826         -161,916         54.5 % 

Income from operations

      5,719         9,098         59.1 %      3,705         20,340         448.9 % 

Financial income

      -1,054         5,560         -627.8 %      -3,599         7,323         -303.5 % 

Income before taxes

      4,665         14,658         214.2 %      106         27,663         26094.6 % 

Provision for income taxes

      -1,627         -3,185         95.7 %      -1,981         -9,939         401.8 % 

Net income (loss)

      3,038         11,473         277.7 %      -1,875         17,724         -1045.2 % 

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

      2,818         11,377           -1,981         17,102      

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

      220         96           106         622      

Net income (loss) allocated to shareholders per share

                 

- Basic

      0.06         0.19           -0.04         0.29      

- Diluted

      0.05         0.18           -0.04         0.27      

Basic

      47,163,824         58,392,127           47,163,824         58,392,127      

Diluted

      52,081,380         62,569,592           52,081,380         62,569,592      

 

6

CRITEO S.A.

Consolidated Statement of Financial Position

(Euros in thousands)

(unaudited)

 

     September 30,
2013		      December 31,
2013		      September 30,
2014		  

Goodwill

      5,597         4,191         22,952   

Intangible assets

      2,151         6,624         10,421   

Property, plant and equipment

      22,511         24,716         38,954   

Non-current financial assets

      7,631         7,627         9,033   

Deferred tax assets

      2,179         4,486         3,937   
  

 

 

     

 

 

     

 

 

  

TOTAL NON-CURRENT ASSETS

      40,068         47,643         85,297   
  

 

 

     

 

 

     

 

 

  

Trade receivables

      73,241         87,643         131,080   

Current tax assets

      6,208         8,014         2,930   

Other current assets

      18,310         13,466         21,617   

Cash and cash equivalents

      39,839         234,343         256,725   
  

 

 

     

 

 

     

 

 

  

TOTAL CURRENT ASSETS

      137,598         343,466         412,352   
  

 

 

     

 

 

     

 

 

  

TOTAL ASSETS

      177,667         391,109         497,649   
  

 

 

     

 

 

     

 

 

  

Share capital

      1,182         1,421         1,500   

Additional paid-in capital

      46,989         241,468         261,799   

Currency translation reserve

      1,110         1,384         3,230   

Consolidated reserves

      17,341         19,523         30,306   

Retained earnings

      -1,982         1,065         17,103   
  

 

 

     

 

 

     

 

 

  

Equity - attributable to shareholders of Criteo SA

      64,641         264,861         313,937   
  

 

 

     

 

 

     

 

 

  

Non-controlling interests

      -44         213         1,045   
  

 

 

     

 

 

     

 

 

  

TOTAL EQUITY

      64,597         265,074         314,982   
  

 

 

     

 

 

     

 

 

  

Financial liabilities - non-current portion

      7,386         6,208         5,632   

Retirement benefit obligation

      857         925         1,513   

Deferred tax liabilities

      11         303         2,341   
  

 

 

     

 

 

     

 

 

  

TOTAL NON-CURRENT LIABILITIES

      8,254         7,436         9,486   
  

 

 

     

 

 

     

 

 

  

Financial liabilities - current portion

      5,018         5,107         5,877   

Bank overdrafts

      2         1         6   

Provisions

      875         830         1,056   

Trade payables

      67,003         75,889         106,825   

Current tax liabilities

      1,295         1,549         6,953   

Other current liabilities

      30,623         35,224         52,463   
  

 

 

     

 

 

     

 

 

  

TOTAL CURRENT LIABILITIES

      104,816         118,600         173,181   
  

 

 

     

 

 

     

 

 

  

TOTAL LIABILITIES

      113,069         126,036         182,667   
  

 

 

     

 

 

     

 

 

  

TOTAL EQUITY AND LIABILITIES

      177,667         391,109         497,649   
  

 

 

     

 

 

     

 

 

  

 

7

CRITEO S.A.

Consolidated Statement of Cash Flows

(Euros in thousands)

(unaudited)

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2013      2014      2013      2014  

Net income (loss)

      3,038         11,473         -1,875         17,724   
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-cash and non-operating items

      6,462         14,507         14,988         37,552   
  

 

 

     

 

 

     

 

 

     

 

 

  

- Amortization and provisions

      2,993         6,842         8,433         17,484   

- Share-based payment expense

      1,829         4,315         4,544         9,938   

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

      6         -42         11         -4   

- Interest paid

      3         3         7         12   

- Non-cash financial income and expenses

      4         204         12         183   

- Change in deferred taxes

      -1,266         -343         -1,266         566   

- Income tax for the period

      2,893         3,528         3,247         9,373   
  

 

 

     

 

 

     

 

 

     

 

 

  

Changes in working capital related to operating activities

      -2,458         374         9,123         -8,739   
  

 

 

     

 

 

     

 

 

     

 

 

  

- (Increase) / decrease in trade receivables

      -7,424         -12,434         -15,108         -36,253   

- Increase / (decrease) in trade payables

      2,261         8,179         21,311         24,518   

- (Increase) / decrease in other current assets

      -919         550         -10,399         -6,586   

- Increase / (decrease) in other current liabilities

      3,624         4,079         13,319         9,582   
  

 

 

     

 

 

     

 

 

     

 

 

  

Income taxes paid

      -3,311         -873         -9,786         1,543   
  

 

 

     

 

 

     

 

 

     

 

 

  

CASH FROM OPERATING ACTIVITIES

      3,731         25,480         12,450         48,079   
  

 

 

     

 

 

     

 

 

     

 

 

  

Acquisition of intangible assets, property, plant and equipment

      -5,737         -11,156         -14,816         -25,396   

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

      70         36         70         50   
  

 

 

     

 

 

     

 

 

     

 

 

  

FREE CASH FLOW

      -1,936         14,361         -2,296         22,734   
  

 

 

     

 

 

     

 

 

     

 

 

  

Investments

      -5,285         0         -5,285         -18,775   

Change in other non-current financial assets

      -5         -469         -771         -1,207   
  

 

 

     

 

 

     

 

 

     

 

 

  

CASH USED FOR INVESTING ACTIVITIES

      -10,957         -11,589         -20,802         -45,328   
  

 

 

     

 

 

     

 

 

     

 

 

  

Issuance of long-term borrowings

         54         8,000         3,054   

Repayment of borrowings

      -1,199         -1,240         -2,258         -3,706   

Interests paid

      -3         -3         -7         -12   

Proceeds from capital increase

      297         1,346         450         20,124   

Change in other financial liabilities

         150            157   
  

 

 

     

 

 

     

 

 

     

 

 

  

CASH FROM (USED FOR) FINANCING ACTIVITIES

      -905         307         6,185         19,617   
  

 

 

     

 

 

     

 

 

     

 

 

  

CHANGE IN NET CASH & CASH EQUIVALENTS

      -8,131         14,199         -2,167         22,369   
  

 

 

     

 

 

     

 

 

     

 

 

  

Net cash & cash equivalents at beginning of period

      47,891         242,895         43,262         234,342   

Effect of exchange rates changes on cash and cash equivalents

      78         -374         -1,257         8   
  

 

 

     

 

 

     

 

 

     

 

 

  

Net cash & cash equivalents at end of period

      39,838         256,719         39,838         256,719   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

8

CRITEO S.A.

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

(Euros in thousands)

(unaudited)

 

        Three Months Ended
September 30,		         Nine Months Ended
September 30,		  
   

Region

   2013     2014     Year-over-
year
growth		     Year-over-year
growth  at
constant
currency		     Region   2013     2014     Year-over-
year
growth		     Year-over-year
growth  at
constant
currency		  

Revenue

   Americas     30,473        58,602        92.3 %      94.1 %    Americas     84,344        143,174        69.8 %      77.4 % 
 

EMEA

     59,732        93,885        57.2 %      55.6 %    EMEA     167,509        261,925        56.4 %      55.4 % 
 

Asia-Pacific

     23,606        41,962        77.8 %      84.7 %    Asia-Pacific     56,218        107,186        90.7 %      106.2 % 
   

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

  
 

Total

     113,811        194,449        70.9 %      71.9 %    Total     308,071        512,285        66.3 %      70.7 % 
   

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

  

Traffic acquisition costs

   Americas     -18,577        -35,496        91.1 %      92.4 %    Americas     -51,754        -86,743        67.6 %      75.2 % 
 

EMEA

     -34,374        -55,219        60.6 %      59.0 %    EMEA     -99,181        -152,836        54.1 %      53.2 % 
 

Asia-Pacific

     -14,045        -26,138        86.1 %      94.5 %    Asia-Pacific     -32,983        -65,354        98.1 %      114.9 % 
   

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

  
 

Total

     -66,996        -116,853        74.4 %      75.7 %    Total     -183,918        -304,933        65.8 %      70.5 % 
   

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

  

Revenue ex-TAC

   Americas     11,896        23,106        94.2 %      96.6 %    Americas     32,590        56,431        73.2 %      81.0 % 
 

EMEA

     25,358        38,666        52.5 %      50.8 %    EMEA     68,328        109,089        59.7 %      58.6 % 
 

Asia-Pacific

     9,561        15,824        65.5 %      70.4 %    Asia-Pacific     23,235        41,832        80.0 %      93.7 % 
   

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

  
 

Total

     46,815        77,596        65.8 %      66.5 %    Total     124,153        207,352        67.0 %      71.1 % 
   

 

 

    

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

  

 

9

CRITEO S.A.

Reconciliation of Adjusted EBITDA to Net Income

(Euros in thousands)

(unaudited)

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2013      2014      2013      2014  

Reconciliation of Adjusted EBITDA to Net income

            

Net income (loss)

      3,038         11,473         -1,875         17,724   

Adjustments:

            

Financial (income) expense

      1,054         -5,560         3,599         -7,323   

Provision for income taxes

      1,627         3,185         1,981         9,939   
  

 

 

     

 

 

     

 

 

     

 

 

  

Share-based compensation expense

      1,829         4,315         4,544         9,938   
  

 

 

     

 

 

     

 

 

     

 

 

  

Research and development

      909         984         1,468         2,076   

Sales and operations

      683         2,531         1,509         6,452   

General and administrative

      237         800         1,567         1,409   
  

 

 

     

 

 

     

 

 

     

 

 

  

Service cost-pension

      67         95         238         277   
  

 

 

     

 

 

     

 

 

     

 

 

  

Research and development

      25         32         92         95   

Sales and operations

      26         38         84         105   

General and administrative

      16         25         62         77   
  

 

 

     

 

 

     

 

 

     

 

 

  

Depreciation and amortization expense

      2,851         6,217         7,220         16,401   
  

 

 

     

 

 

     

 

 

     

 

 

  

Cost of revenue

      2,007         4,245         5,150         11,167   

Research and development

      168         1,059         397         2,723   

Sales and operations

      516         701         1,269         1,908   

General and administrative

      160         213         404         604   
  

 

 

     

 

 

     

 

 

     

 

 

  

Acquisition-related deferred price consideration

      1,102         101         1,102         620   
  

 

 

     

 

 

     

 

 

     

 

 

  

Research and development

      1,102         101         1,102         620   

Sales and operations

      —           —           —           —     

General and administrative

      —           —           —           —     

Total net adjustments

      8,529         8,351         18,684         29,852   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted EBITDA

      11,568         19,828         16,809         47,578   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

10

CRITEO S.A.

Detailed Information on Selected Items

(Euros in thousands)

(unaudited)

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2013      2014      2013      2014  

Share-Based Compensation Expense

            

Research and development

      909         984         1,468         2,076   

Sales and operations

      683         2,531         1,509         6,452   

General and administrative

      237         800         1,567         1,409   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Share-Based Compensation Expense

      1,829         4,315         4,544         9,938   
  

 

 

     

 

 

     

 

 

     

 

 

  

Pension costs

            

Research and development

      25         32         92         95   

Sales and operations

      26         38         84         105   

General and administrative

      16         25         62         77   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Pension costs

      67         95         238         277   
  

 

 

     

 

 

     

 

 

     

 

 

  

Depreciation and Amortization Expense

            

Cost of revenue

      2,007         4,245         5,150         11,167   

Research and development

      168         1,059         397         2,723   

Sales and operations

      516         701         1,269         1,908   

General and administrative

      160         213         404         604   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Depreciation and Amortization Expense

      2,851         6,217         7,220         16,401   
  

 

 

     

 

 

     

 

 

     

 

 

  

Acquisition-related deferred price consideration

            

Research and development

      1,102         101         1,102         620   

Sales and operations

      —           —           —           —     

General and administrative

      —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Acquisition-related deferred price consideration

      1,102         101         1,102         620   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

11

CRITEO S.A.

Reconciliation of Adjusted Net Income to Net Income

(Euros in thousands)

(unaudited)

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2013      2014      2013      2014  

Net income (loss)

      3,038         11,473         -1,875         17,724   

Adjustments:

            

Share-based compensation expense

      1,829         4,315         4,544         9,938   

Amortization of acquisition-related intangible assets

      174         976         174         2,102   

Acquisition-related deferred price consideration

      1,102         101         1,102         620   

Tax impact of the above adjustments

      -37         -132         -37         -348   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total net adjustments

      3,068         5,260         5,783         12,311   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted net income (loss)

      6,106         16,732         3,908         30,036   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

12

CRITEO S.A.

Constant Currency Reconciliation

(Euros in thousands)

(unaudited)

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2013     2014     Year-
over-
year
growth		     2013     2014     Year-
over-
year
growth		  

Revenue as reported

      113,811        194,449        70.9 %      308,071        512,285        66.3 % 

Conversion impact euro/other currencies

      —          1,217          —          13,606     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Revenue at constant currency

      113,811        195,666        71.9 %      308,071        525,891        70.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Traffic acquisition costs as reported

      66,996        116,853        74.4 %      183,918        304,933        65.8 % 

Conversion impact euro/other currencies

      —          888          —          8,581     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Traffic acquisition costs at constant currency

      66,996        117,741        75.7 %      183,918        313,514        70.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Revenue ex-TAC as reported

      46,815        77,596        65.8 %      124,153        207,352        67.0 % 

Conversion impact euro/other currencies

      —          329          —          5,025     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Revenue ex-TAC at constant currency

      46,815        77,925        66.5 %      124,153        212,377        71.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Revenue ex-TAC / Revenue as reported

      41.1 %      39.9 %        40.3 %      40.5 %   

Other cost of revenue as reported

      4,742        9,347        97.1 %      15,622        25,096        60.6 % 

Conversion impact euro/other currencies

      —          65          —          640     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other cost of revenue at constant currency

      4,742        9,412        98.5 %      15,622        25,736        64.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      11,568        19,828        71.4 %      16,809        47,578        183.0 % 

Conversion impact euro/other currencies

      —          191            433     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA at constant currency

      11,568        20,019        73.1 %      16,809        48,011        185.6 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

13

CRITEO S.A.

Information on share count

(unaudited)

 

     At September 30,  
     2013      2014  

Shares outstanding as at January 1,

      47,123,017         56,856,070   

Weighted average number of shares issued during the period

      40,807         1,536,057   
  

 

 

     

 

 

  

Basic number of shares - Basic EPS basis

      47,163,824         58,392,127   
  

 

 

     

 

 

  

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

      4,917,556         4,177,465   
  

 

 

     

 

 

  

Diluted number of shares - Diluted EPS basis

      52,081,380         62,569,592   
  

 

 

     

 

 

  

Shares outstanding as at September 30,

      47,268,823         60,019,594   
  

 

 

     

 

 

  

Total dilutive effect of share options, warrants, employee warrants

      9,222,612         7,949,211   
  

 

 

     

 

 

  

Fully diluted shares as at September 30,

      56,491,435         67,968,805   
  

 

 

     

 

 

  

CRITEO S.A.

Supplemental Financial Information and Operating Metrics

(unaudited)

 

     Q4
2012		      Q1
2013		      Q2
2013		      Q3
2013		      Q4
2013		      Q1
2014		      Q2
2014		      Q3
2014		      YoY
Change		     QoQ
Change		  

Clients

      3,379         3,811         4,274         4,631         5,072         5,567         6,131         6,581         42.1 %      7.3 % 

Revenue (‘000 euros)

      86,571         94,862         99,400         113,811         135,889         152,520         165,317         194,449         70.9 %      17.6 % 

Americas

      25,740         25,025         28,846         30,473         38,660         37,630         46,942         58,602         92.3 %      24.8 % 

EMEA

      48,791         54,434         53,348         59,732         70,291         83,853         84,187         93,885         57.2 %      11.5 % 

APAC

      12,040         15,403         17,206         23,606         26,937         31,037         34,187         41,962         77.8 %      22.7 % 

Revenue ex-TAC (‘000 euros)

      35,331         37,306         40,032         46,815         54,855         62,733         67,022         77,596         65.8 %      15.8 % 

Americas

      9,938         9,570         11,124         11,896         15,108         14,725         18,600         23,106         94.2 %      24.2 % 

EMEA

      20,037         21,163         21,807         25,358         29,057         35,320         35,101         38,666         52.5 %      10.2 % 

APAC

      5,355         6,573         7,101         9,561         10,690         12,688         13,321         15,824         65.5 %      18.8 % 

Cash flow from operating activities (‘000 euros)

      7,561         4,585         4,134         3,731         12,255         11,437         11,162         25,481         583.0 %      128.3 % 

Capital expenditures (‘000 euros)

      7,251         2,489         6,590         5,737         7,187         3,781         10,459         11,156         94.5 %      6.7 % 

Net Cash Position (‘000 euros)

      43,262         43,876         47,893         39,839         234,343         241,785         242,895         256,719         544.4 %      5.7 % 

Days Sales Outstanding (days - end of month)

      57.4         58.1         56.7         55.6         53.5         53.8         57.1         56.6         1.8 %      -0.9 % 

Contacts

 

Criteo Investor Relations

    Criteo Public Relations

Edouard Lassalle, Head of IR

e.lassalle@criteo.com

   

Emma Ferns, Global PR director

e.ferns@criteo.com

Denise Garcia, ICR, Inc.

denise.garcia@icrinc.com

   

 

14