Why did CRTO's Q3 2024 EPS fall short of expectations?

Criteo's Q3 2024 EPS fell short of expectations due to a combination of revenue shortfall and higher expenses:

1. **Revenue Shortfall**: The company reported a revenue surprise of -877,000, indicating a significant shortfall compared to expectations. This decline in revenue could be a result of decreased demand for Criteo's services, competitive pressures, or operational inefficiencies.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|CRTO|CRTO.O|Criteo|2023 Q4|0.33255082606192143|5.66302E8|185|
|CRTO|CRTO.O|Criteo|2024 Q1|1.132318837974365|4.50055E8|185|
|CRTO|CRTO.O|Criteo|2024 Q2|0.5060413618974099|4.71307E8|185|
|CRTO|CRTO.O|Criteo|2024 Q3|-2.1954717994513984|4.58892E8|185|

2. **Higher Expenses**: The company's diluted EPS for Q3 2024 was $0.11, which is significantly lower than the EPS of $0.46 reported in Q2 2024. This suggests that Criteo may have incurred higher expenses or costs during Q3 2024, which could include increased costs for technology, labor, or other operational expenses. Higher expenses can squeeze profit margins and lead to lower EPS.
3. **Strategic Initiatives**: The company's collaboration with Microsoft Advertising to drive retail media growth could also be a factor. Such strategic initiatives might involve significant investments upfront, which could impact short-term profitability.
4. **Insider Activity**: The insider sell by Sarah Glickman, the Chief Financial Officer, could signal a lack of confidence in the company's short-term prospects. Insider activity can influence investor sentiment and might reflect underlying issues within the company.

In conclusion, Criteo's Q3 2024 EPS fell short due to a combination of revenue shortfall, higher expenses, and possibly strategic initiatives and insider activity. These factors collectively paint a picture of a challenging operating environment for the company during this period.