Criteo S.A. ((CRTO)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Criteo S.A. recently held its earnings call, revealing a strong performance for 2024. The company reported record revenue and growth, particularly in its retail media and performance media segments. Despite facing challenges in ad tech services and foreign exchange impacts, the overall sentiment was positive, driven by the company’s key growth areas and innovative product launches like Commerce Go.
Record Revenue and Growth
Criteo S.A. reported record results for 2024, with revenue reaching an impressive $1.9 billion. The company saw an 11% growth in contribution ex-TAC at constant currency, and the adjusted EBITDA margin expanded by 500 basis points to 35%. Additionally, free cash flow increased by 65% year-over-year, underlining the company’s strong financial health.
Retail Media Business Success
The retail media segment was a standout performer, with revenue exceeding $250 million in 2024. Media spend in this segment grew by 31% year-over-year, translating to over $1.5 billion. The retail media contribution ex-TAC grew by 23% in Q4 at constant currency, highlighting the growing importance of this segment to Criteo’s overall business strategy.
Strong Performance Media Growth
Performance media also showed strong growth, with commerce audiences expanding by 32% in 2024. Performance media revenue reached $1.7 billion, and retargeting, now representing 40% of Criteo’s business, also experienced slight growth, underscoring the segment’s continued relevance.
Strategic Partnerships and Innovations
Criteo strengthened its position through strategic retailer partnerships and expanded agency relationships. The launch of Commerce Go, an AI-powered automation toolset, is expected to drive further scale in 2025, indicating Criteo’s commitment to innovation and growth.
Challenges in Ad Tech Services
Despite the overall positive performance, Criteo faced challenges in its ad tech services, with revenue decreasing by 4% in Q4 due to reduced spending by a major client in the media trading marketplace.
Foreign Exchange Impact
The weakening of the euro against the US dollar posed a $5 million year-over-year headwind on Q4 contribution ex-TAC. This foreign exchange impact highlights the challenges Criteo faces in a volatile currency environment.
Guidance for 2025
Looking forward, Criteo provided guidance for 2025, focusing on continued growth and strategic initiatives. The company anticipates mid-single-digit growth in contribution ex-TAC at constant currency, with retail media projected to grow by 20% to 22%. Despite currency fluctuations and a company-wide event, the adjusted EBITDA margin is expected to be around 33% to 34%. Strategic initiatives like Commerce Go and advancements in retail media are expected to drive sustainable growth.
In conclusion, Criteo S.A.’s earnings call highlighted a strong performance for 2024, with record revenue and growth in key segments. Despite some challenges, the company’s strategic initiatives and innovations are set to continue driving growth in 2025. Investors and stakeholders can look forward to Criteo leveraging its AI-driven platform to sustain its positive momentum.
