Criteo Reports 14% Revenue Increase for Q2 2024

 Criteo, reported earnings for Q2 2024, citing strong momentum as the company continues to execute its transformation to a Commerce Media Powerhouse. Capitalizing on market consolidation and a new privacy framework from Google centered on user choice, Criteo’s solutions to unify the commerce media ecosystem are a catalyst for outsized growth.

Overview of financial results

• At constant currency, Q2 Contribution ex-TAC (net revenue) increased 14% to $267 million, above guidance
• Strong quarterly performance with double-digit organic growth for the third consecutive quarter
• Criteo raises outlook after achieving record top line and adjusted EBITDA margin for Q2
• New solutions (non-retargeting) now represent 52% of business

Criteo Continues Commerce Media Powerhouse Transformation

• Strategic collaboration with Microsoft Advertising brings extensive demand from 500K+ advertisers to Criteo’s global network of 225 retailers

• In addition, Criteo is working with Microsoft Advertising to consolidate their Retail Media supply onto Criteo’s platform

• 30% year over year growth in Retail Media activated spend, outpacing the market

• This includes retailers and marketplaces like Office Depot, Dollar General, QVC, Belk, MyTheresa, Selfridges and Grab

• Added about 200 new brands in Q2 to Criteo’s Commerce Max Demand Side Platform, or DSP

• Increase in agency spend with major holding companies grew more than 50% year over year
• Commerce Max’s new SKU-based planning tool enables brands and agencies to buy sponsored product ads across 225 Retail Media Networks, within one simple consolidated workflow

• AI innovation is playing a central role in performance media success, driving contribution ex-TAC in the double-digit million-dollar range

On Google’s support of informed consent for third-party cookie use

• Google’s decision not to fully deprecate cookies presents an opportunity for Criteo to benefit from ongoing access to third-party signals for opted-in users, which fits well into Criteo’s comprehensive multi-pronged approach to addressability
• Google will continue to support Privacy Sandbox for opted-out users

• Criteo is one of the largest ad tech partners testing the Privacy Sandbox to date, making the company well prepared to leverage it when third-party cookies are unavailable

Our transformation is coming to life and we continue to seize the exciting opportunities in front of us, positioning ourselves for a promising future,” said Megan Clarken, Chief Executive Officer of Criteo. “Our focus remains on executing our plan to drive sustainable growth and maximize shareholder value.”