Criteo S.A (CRTO) 1 Aug 24 2024 Q2 Earnings call transcript

Criteo, a leading global technology company specializing in digital marketing and advertising, recently held its second quarter earnings call for 2024. The call highlighted the company's robust performance and strategic initiatives, particularly in the face of Google's recent announcement regarding third-party cookies.

Financial Highlights

Criteo reported double-digit organic growth for the third consecutive quarter, marking a significant achievement for the company. This growth was driven by strong performance across its Retail Media and Performance Media segments. The company also achieved record topline and adjusted EBITDA margin for the quarter.

Google's Cookie Announcement

During the call, Criteo's management addressed Google's recent decision to move away from its original plan to fully deprecate third-party cookies on Chrome. This new framework, which allows for user choice, is expected to benefit Criteo by providing ongoing access to third-party signals for opted-in users. As a result, Criteo's next generation addressability strategy remains unchanged, with additional strength coming from the news of more third-party signals.

Retail Media Expansion

Criteo's retail media business continues to thrive, with 30% year-over-year growth in Q2. The company's collaboration with Microsoft to extend its retail media suite is a significant development, as it will enable retailers to tap into new budgets from Microsoft's vast advertiser base. This partnership reinforces the belief that the world of retail media is converging, and Criteo and Microsoft can play a more central role in unlocking its full potential.

Performance Media

In the Performance Media segment, Criteo's commerce audiences saw a 41% year-over-year growth, demonstrating the company's strength in leveraging large sets of commerce data and shopping intent signals to reach valuable audiences across the shopping journey. The company's retargeting solution has also returned to growth, indicating a resilient performance despite the challenges posed by Google's cookie changes.

Looking Ahead

Criteo raised its guidance for the year based on its expectations as of August 1, 2024. Despite macro uncertainties, the company is confident in its business strategy and financial strength, driven by its transformation into a Commerce Media powerhouse. With a focus on sustainable, profitable growth, Criteo is well-positioned to navigate the evolving digital advertising landscape.

In conclusion, Criteo's second quarter earnings call underscored the company's strong financial performance and strategic initiatives, particularly in the context of Google's cookie announcement. Criteo's continued investment in AI and its collaborations with industry leaders like Microsoft demonstrate its commitment to driving innovation and growth in the digital advertising space.