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Criteo Reports Record Results for the Fourth Quarter & Fiscal Year 2014

NEW YORK, Feb. 18, 2015 (GLOBE NEWSWIRE) -- Criteo S.A. (Nasdaq:CRTO), the performance marketing technology company, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2014.

  • Revenue in the fourth quarter 2014 increased 71% (or 69% at constant currency1) to €233 million, compared with €136 million in the fourth quarter 2013.
    Revenue for fiscal year 2014 increased 68% (or 70% at constant currency) to €745 million, compared with €444 million in fiscal year 2013.
  • Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, in the fourth quarter 2014 grew 76% (or 73% at constant currency) to €96 million, or 41.4% of revenue, compared with €55 million, or 40.4% of revenue, in the fourth quarter 2013.
    Revenue ex-TAC for fiscal year 2014 grew 70% (or 72% at constant currency) to €304 million, or 40.8% of revenue, compared with €179 million, or 40.3% of revenue, in fiscal year 2013.
  • Net income in the fourth quarter 2014 increased by €14 million to €18 million, compared with €3 million in the fourth quarter 2013.
    Net income for fiscal year 2014 increased by €34 million to €35 million, compared with €1 million in fiscal year 2013.
  • Adjusted EBITDA in the fourth quarter 2014 increased 120% (or 121% at constant currency), to €32 million, or 13.7% of revenue, compared with €15 million, or 10.7% of revenue, in the fourth quarter 2013.
    Adjusted EBITDA for fiscal year 2014 grew 154% (or 156% at constant currency), to €79 million, or 10.7% of revenue, compared with €31 million, or 7.1% of revenue, in fiscal year 2013.
  • Cash flow from operating activities in the fourth quarter 2014 increased by €27 million to €40 million, compared with €12 million in the fourth quarter 2013.
    Cash flow from operating activities for fiscal year 2014 increased by €63 million to €88 million, compared with €25 million in fiscal year 2013.
  • Free cash flow in the fourth quarter 2014 was €30 million, an increase of €25 million compared with €5 million in the fourth quarter 2013.
    Free cash flow for fiscal year 2014 was €52 million, an increase of €49 million compared with a €3 million in fiscal year 2013.

Executive Quote

"Performance for clients is everything," said JB Rudelle, Criteo's co-founder and CEO. "2014 has demonstrated that our focus on driving incremental sales for our clients accelerates our own success."

Operating Highlights

  • Our enhanced Criteo Engine that optimizes for the likelihood of a user to buy was rolled out to 95% of our client base at the end of the fourth quarter.
  • 80% of our clients used our multi-screen solution in the month of December 2014.
  • Year-over-year growth in the Americas in the fourth quarter continued to accelerate for the fourth consecutive quarter, to 114% at constant currency, driven by strong performance in the US.
  • We added more than 600 clients in the fourth quarter to bring the total to a record 7,190, representing the highest quarterly client additions in Criteo's history.

Acquisition of DataPop, Inc.

As of February 17, 2015, Criteo acquired DataPop, Inc., a Los Angeles-based company specializing in connecting the products in a retailer's catalog to actual user shopping intent.

Revenue ex-TAC

Revenue ex-TAC grew 76% in the fourth quarter 2014, or 73% at constant currency, to €96 million, compared with €55 million in the fourth quarter 2013. This year-over-year performance was mainly driven by two factors: increased revenue ex-TAC per client due to the continued roll-out of our enhanced engine and multi-screen solution, and the steady growth in both our client base and our publisher relationships.

For fiscal year 2014, revenue ex-TAC grew 70%, or 72% at constant currency, to €304 million, compared with €179 million in fiscal year 2013.

  • In the Americas, revenue ex-TAC in the fourth quarter 2014 grew by 121% over the fourth quarter 2013, or 114% at constant currency, to €33 million. The Americas represented approximately 35% of our global revenue ex-TAC in the fourth quarter 2014.
    Americas revenue ex-TAC for fiscal year 2014 grew by 88% over fiscal year 2013, or 91% at constant currency, to €90 million. The Americas represented approximately 30% of our global revenue ex-TAC in fiscal year 2014.
  • In EMEA, revenue ex-TAC in the fourth quarter 2014 increased by 58% over the fourth quarter 2013, or 57% at constant currency, to €46 million. EMEA accounted for approximately 48% of our global revenue ex-TAC in the fourth quarter 2014.
    EMEA revenue ex-TAC for fiscal year 2014 increased by 59% over fiscal year 2013, or 58% at constant currency, to €155 million. EMEA accounted for approximately 51% of our global revenue ex-TAC in fiscal year 2014.
  • Revenue ex-TAC in Asia-Pacific in the fourth quarter 2014 grew by 58% over the comparable quarter in 2013, or 61% at constant currency, to €17 million. Asia-Pacific represented approximately 17% of our global revenue ex-TAC in the fourth quarter 2014.
    Asia-Pacific revenue ex-TAC for fiscal year 2014 grew by 73% over fiscal year 2013, or 84% at constant currency, to €59 million. Asia-Pacific represented approximately 19% of our global revenue ex-TAC in fiscal year 2014.

Revenue ex-TAC margin as a percentage of revenue in the fourth quarter 2014 was 41.4%, compared with 40.4% in the fourth quarter 2013.

Revenue ex-TAC margin as a percentage of revenue for fiscal year 2014 was 40.8%, compared with 40.3% in fiscal year 2013.

Adjusted EBITDA and Operating Expenses

Adjusted EBITDA in the fourth quarter 2014 was €32 million, an increase of 120%, or 121% at constant currency, compared with €15 million in the fourth 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, we incurred some additional variable costs driven by the revenue ex-TAC over-performance as well as some exceptional costs primarily related to consulting fees.

Adjusted EBITDA for fiscal year 2014 was €79 million, an increase of 154%, or 156% at constant currency, compared with €31 million in fiscal year 2013.

Adjusted EBITDA margin as a percentage of revenue in the fourth quarter 2014 was 13.7%, compared with 10.7% in the fourth quarter 2013.

Adjusted EBITDA margin as a percentage of revenue in fiscal year 2014 was 10.7%, a 3.6 percentage points improvement compared with 7.1% in fiscal year 2013.

Operating expenses in the fourth quarter of 2014 were €66 million, an increase of 58% compared with the fourth 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 fourth quarter 2014 were €58 million, an increase of 59% compared with the fourth quarter 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 70% year-over-year in an effort to capture our market opportunity in all geographies, especially in our mid-market organization. We intend to continue to invest significantly in Research & Development and Sales & Operations in fiscal year 2015 to support our current and anticipated future growth.

Operating expenses for fiscal year 2014 were €227 million, an increase of 55% compared with fiscal year 2013. On a Non-IFRS basis, our operating expenses for fiscal year 2014 were €204 million, an increase of 53% compared with fiscal year 2013. Expressed as a percentage of revenue, our Non-IFRS operating expenses for fiscal year 2014 were at 27.4%, a decrease of 2.7 percentage points over the period, driven by the decrease in our Sales & Operations expenses and General & Administrative expenses for fiscal year 2014, by 1.3 percentage points and 0.4 percentage point respectively over the period.

Net Income and Adjusted Net Income

Net income in the fourth quarter 2014 was €18 million, representing a €14 million increase compared with €3 million in the fourth quarter 2013. Net income available to shareholders of Criteo S.A. for the fourth quarter 2014 was €17 million, or €0.275 per diluted share, compared with €3 million, or €0.055 per diluted share, in the fourth quarter 2013.

Net income for fiscal year 2014 was €35 million, representing a €34 million increase compared with €1 million fiscal year 2013. Net income available to shareholders of Criteo S.A. for fiscal year 2014 was €35 million, or €0.548 per diluted share, compared with €1 million, or €0.019 per diluted share, in fiscal year 2013.

Adjusted Net Income for the fourth quarter 2014, or our net income adjusted to eliminate the impact of share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related deferred price consideration and the tax impact of these adjustments, was €23 million, representing a €16 million increase compared with €7 million in the fourth quarter 2013.

Adjusted Net Income for fiscal year 2014 was €53 million, representing a €42 million increase compared with €11 million in fiscal year 2013.

Cash Flow and Cash Position

  • Cash flow generated by operating activities in the fourth quarter 2014 increased 223% to €40 million, compared with €12 million in the fourth quarter 2013.
    For fiscal year 2014, cash flow generated by operating activities increased 255% to €88 million, compared with €25 million in fiscal year 2013.
  • 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 €30 million in the fourth quarter 2014, an increase of €25 million, compared with €5 million in the fourth quarter 2013.
    Free cash flow for fiscal year 2014 was €52 million, an increase of €49 million, compared with €3 million in fiscal year 2013.
  • Total cash, cash equivalents and short-term investments were at €290 million as of December 31, 2014. This represents an increase of €55 million compared with December 31, 2013, primarily the result of €52 million in free cash flow generation over the period and proceeds from capital increases of €24 million, including €16 million in net proceeds from our follow-on equity offering in March 2014. This was offset by the €19 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 February 18, 2015.

First Quarter 2015 Guidance:

  • Revenue ex-TAC for the first quarter ending March 31, 2015 is expected to be between €96 million and €99 million.
  • Adjusted EBITDA for the first quarter ending March 31, 2015 is expected to be between €18 million and €21 million, including a €2 million negative impact from the acquisition of DataPop.

Fiscal Year 2015 Guidance:

  • Revenue ex-TAC for the fiscal year ending December 31, 2015, is expected to be between €433 million and €440 million.
  • Adjusted EBITDA for the fiscal year ending December 31, 2015, is expected to be between €108 million and €115 million, including a €10 million dilutive impact from DataPop in the year.

The above guidance assumes no additional acquisitions are completed during the quarter ending March 31, 2015 and the fiscal year ending December 31, 2015.

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, Revenue ex-TAC by region, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Non-IFRS Operating Expenses, Revenue ex-TAC margin and Adjusted EBITDA 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 and Revenue ex-TAC by region reflects our Revenue ex-TAC by our core geographies. Revenue ex-TAC and Revenue ex-TAC by region are key measures 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 and across our core geographies. 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, 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, Revenue ex-TAC by Region to revenue by geography,, 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. Some of these limitations are: (1) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and (2) other companies may report Revenue ex-TAC, Revenue ex-TAC by Region, Adjusted EBITDA, Adjusted Net Income or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider these measures alongside our other IFRS-based financial performance measures, such as revenue, net income and our other IFRS financial results.

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.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including projected financial results for the quarter ending March 31, 2015 and the fiscal year ending December 31, 2015, 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, February 18, 2015, at 8:00am ET, 2:00pm CET, to discuss Criteo's operating and financial results for the fourth quarter and fiscal year 2014, as well as other forward-looking information about Criteo's business.

Conference call details are:

  • US callers: +1 212 444 0481 Conference ID: 9779609
  • International callers: +33(0)1 76 77 22 30 Conference ID: 9779609

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 1,300 employees in 23 offices across the Americas, Europe and Asia-Pacific, serving over 7,000 advertisers worldwide with direct relationships with over 9,000 publishers.

For more information, please visit www.criteo.com.

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

CRITEO S.A.
Consolidated Statement of Income
(Euros in thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2014 Year-over-year
growth
2013 2014 Year-over-year
growth
Revenue 135,889 232,796 71.3% 443,960 745,081 67.8%
Cost of revenue
Traffic Acquisition cost (TAC) -81,034 -136,493 68.4% -264,952 -441,427 66.6%
Other cost of revenue -6,334 -11,054 74.5% -21,956 -36,150 64.6%
Gross Profit 48,521 85,249 75.7% 157,052 267,504 70.3%
Research & development expenses -9,973 -12,191 22.2% -32,175 -45,293 40.8%
Sales & operations expenses -22,306 -39,668 77.8% -82,816 -133,393 61.1%
General & administrative expenses -9,273 -13,698 47.7% -31,387 -48,788 55.4%
Total operating expenses -41,552 -65,557 57.8% -146,378 -227,474 55.4%
Income from operations 6,969 19,692 182.6% 10,674 40,030 275.0%
Financial income -3,269 1,264 -138.7% -6,868 8,587 -225.0%
Income before taxes 3,700 20,956 466.4% 3,806 48,617 1177.4%
Provision for income taxes -432 -3,313 667.0% -2,413 -13,253 449.2%
Net income (loss) 3,268 17,643 439.9% 1,393 35,364 2438.7%
- Net income (loss) available to shareholders of Criteo SA 3,046 17,256 1,065 34,354
- Net income (loss) available to non-controlling interests 222 387 328 1,010
Net income (loss) allocated to shareholders per share
- Basic 0.063 0.293 0.022 0.583
- Diluted 0.055 0.275 0.019 0.548
Basic 48,692,148 58,928,563 48,692,148 58,928,563
Diluted 55,174,764 62,645,716 55,174,764 62,645,716
CRITEO S.A.
Consolidated Statement of Financial Position
(Euros in thousands)
(unaudited)
December 31, December 31,
2013 2014
Goodwill 4,191 22,944
Intangible assets 6,624 10,560
Property, plant and equipment 24,716 43,027
Non-current financial assets 7,627 9,494
Deferred tax assets 4,486 7,113
TOTAL NON-CURRENT ASSETS 47,644 93,138
Trade receivables 87,643 158,633
Current tax assets 8,014 2,883
Other current assets 13,466 20,606
Cash and cash equivalents 234,343 289,784
TOTAL CURRENT ASSETS 343,466 471,906
TOTAL ASSETS 391,110 565,044
Share capital 1,421 1,523
Additional paid-in capital 241,468 265,522
Currency translation reserve 1,384 4,804
Consolidated reserves 19,523 35,302
Retained earnings 1,065 34,354
Equity - attributable to shareholders of Criteo SA 264,861 341,505
Non-controlling interests 213 1,433
TOTAL EQUITY 265,074 342,938
Financial liabilities - non-current portion 6,119 4,543
Retirement benefit obligation 925 1,024
Deferred tax liabilities 303 946
TOTAL NON-CURRENT LIABILITIES 7,347 6,513
Financial liabilities - current portion 5,197 7,631
Bank overdrafts 36
Provisions 830 1,131
Trade payables 75,889 135,400
Current tax liabilities 1,549 7,969
Other current liabilities 35,224 63,426
TOTAL CURRENT LIABILITIES 118,689 215,593
TOTAL LIABILITIES 126,036 222,106
TOTAL EQUITY AND LIABILITIES 391,110 565,044
CRITEO S.A.
Consolidated Statement of Cash Flows
(Euros in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2014 2013 2014
Net income (loss) 3,268 17,643 1,393 35,364
Non-cash and non-operating items 6,570 16,379 21,558 53,934
- Amortization and provisions 3,762 7,662 12,195 25,148
- Share-based payment expense 2,332 4,840 6,876 14,778
- Net gain or loss on disposal of non-current assets 34 110 45 106
- Interest paid 2 5 9 17
- Non-cash financial income and expenses 8 449 20 632
- Change in deferred taxes -2,431 -4,573 -3,697 -4,007
- Income tax for the period 2,863 7,886 6,110 17,260
Changes in working capital related to operating activities 3,842 12,217 12,965 3,479
- (Increase) / decrease in trade receivables -16,325 -26,812 -31,433 -63,064
- Increase / (decrease) in trade payables 12,393 28,521 33,704 53,039
- (Increase) / decrease in other current assets 4,839 640 -5,560 -5,946
- Increase / (decrease) in other current liabilities 2,935 9,868 16,254 19,450
Income taxes paid -1,425 -6,684 -11,211 -5,142
CASH FROM OPERATING ACTIVITIES 12,255 39,555 24,705 87,635
Acquisition of intangible assets, property, plant and equipment -7,187 -9,993 -22,003 -35,389
Proceeds from disposal of intangible assets, property, plant and equipment 20 -10 90 40
FREE CASH FLOW 5,088 29,552 2,792 52,286
Investments -129 0 -5,414 -18,775
Change in other non-current financial assets -35 -521 -806 -1,728
CASH USED FOR INVESTING ACTIVITIES -7,331 -10,524 -28,133 -55,852
Issuance of long-term borrowings 0 1,189 8,000 4,243
Repayment of borrowings -1,192 -1,196 -3,450 -4,902
Interests paid -2 -5 -9 -17
Proceeds from capital increase 191,725 3,730 192,175 23,854
Change in other financial liabilities 0 48 0 205
CASH FROM (USED FOR) FINANCING ACTIVITIES 190,531 3,766 196,716 23,383
CHANGE IN NET CASH & CASH EQUIVALENTS 195,455 32,797 193,288 55,166
Net cash & cash equivalents at beginning of period 39,838 256,719 43,262 234,342
Effect of exchange rates changes on cash and cash equivalents -951 232 -2,208 240
Net cash & cash equivalents at end of period 234,342 289,748 234,342 289,748
CRITEO S.A.
Reconciliation of Revenue ex-TAC by Region to Revenue by Region
(Euros in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
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 38,660 85,598 121.4% 113.8% Americas 123,004 228,773 86.0% 88.8%
EMEA 70,291 104,480 48.6% 47.4% EMEA 237,800 366,404 54.1% 53.1%
Asia-Pacific 26,937 42,718 58.6% 62.6% Asia-Pacific 83,155 149,904 80.3% 92.1%
Total 135,889 232,796 71.3% 69.3% Total 443,960 745,081 67.8% 70.3%
Traffic acquisition costs Americas -23,552 -52,167 121.5% 114.0% Americas -75,306 -138,910 84.5% 87.3%
EMEA -41,235 -58,449 41.7% 40.5% EMEA -140,416 -211,287 50.5% 49.5%
Asia-Pacific -16,247 -25,877 59.3% 63.8% Asia-Pacific -49,230 -91,230 85.3% 98.0%
Total -81,034 -136,493 68.4% 66.6% Total -264,952 -441,427 66.6% 69.3%
Revenue ex-TAC Americas 15,108 33,432 121.3% 113.5% Americas 47,698 89,863 88.4% 91.2%
EMEA 29,057 46,030 58.4% 57.2% EMEA 97,385 155,117 59.3% 58.2%
Asia-Pacific 10,690 16,841 57.5% 60.8% Asia-Pacific 33,925 58,674 72.9% 83.6%
Total 54,855 96,303 75.6% 73.4% Total 179,008 303,654 69.6% 71.8%
CRITEO S.A.
Reconciliation of Adjusted EBITDA to Net Income
(Euros in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2014 2013 2014
Reconciliation of Adjusted EBITDA to Net income
Net income (loss) 3,268 17,643 1,393 35,364
Adjustments:
Financial (income) expense 3,269 -1,264 6,868 -8,587
Provision for income taxes 433 3,313 2,413 13,253
Share-based compensation expense 2,332 4,840 6,876 14,778
Research and development 581 700 2,049 2,776
Sales and operations 1,292 2,814 2,801 9,267
General and administrative 460 1,326 2,026 2,735
Service cost-pension 43 94 281 371
Research and development 17 31 109 126
Sales and operations 21 36 105 141
General and administrative 5 27 67 104
Depreciation and amortization expense 3,899 7,131 11,119 23,532
Cost of revenue 2,696 5,008 7,847 16,176
Research and development 518 1,009 915 3,731
Sales and operations 523 854 1,792 2,762
General and administrative 162 260 566 863
Acquisition-related deferred price consideration 1,261 97 2,363 716
Research and development 1,261 97 2,363 716
Sales and operations -- -- -- --
General and administrative -- -- -- --
Total net adjustments 11,237 14,211 29,920 44,063
Adjusted EBITDA 14,505 31,854 31,313 79,427
CRITEO S.A.
Detailed Information on Selected Items
(Euros in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2014 2013 2014
Share-Based Compensation Expense
Research and development 581 700 2,049 2,776
Sales and operations 1,292 2,814 2,801 9,267
General and administrative 460 1,326 2,026 2,735
Total Share-Based Compensation Expense 2,332 4,840 6,876 14,778
Pension costs
Research and development 17 31 109 126
Sales and operations 21 36 105 141
General and administrative 5 27 67 104
Total Pension costs 43 94 281 371
Depreciation and Amortization Expense
Cost of revenue 2,696 5,008 7,847 16,176
Research and development 518 1,009 915 3,731
Sales and operations 523 854 1,792 2,762
General and administrative 162 260 566 863
Total Depreciation and Amortization Expense 3,899 7,131 11,119 23,533
Acquisition-related deferred price consideration
Research and development 1,261 97 2,363 716
Sales and operations -- -- -- --
General and administrative -- -- -- --
Total Acquisition-related deferred price consideration 1,261 97 2,363 716
CRITEO S.A.
Reconciliation of Adjusted Net Income to Net Income
(Euros in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2014 2013 2014
Net income (loss) 3,268 17,643 1,393 35,364
Adjustments:
Share-based compensation expense 2,332 4,840 6,876 14,778
Amortization of acquisition-related intangible assets 350 840 350 2,942
Acquisition-related deferred price consideration 1,261 97 2,363 716
Tax impact of the above adjustments -73 -31 -73 -379
Total net adjustments 3,870 5,746 9,516 18,057
Adjusted net income (loss) 7,138 23,389 10,909 53,421
CRITEO S.A.
Constant Currency Reconciliation
(Euros in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2013 2014 Year-over-year
growth
2013 2014 Year-over-year
growth
Revenue as reported 135,889 232,796 71.3% 443,960 745,081 67.8%
Conversion impact euro/other currencies -- -2,700 -- 10,906
Revenue at constant currency 135,889 230,096 69.3% 443,960 755,987 70.3%
Traffic acquisition costs as reported 81,034 136,493 68.4% 264,952 441,427 66.6%
Conversion impact euro/other currencies -- -1,526 -- 7,053
Traffic acquisition costs at constant currency 81,034 134,967 66.6% 264,952 448,480 69.3%
Revenue ex-TAC as reported 54,855 96,303 75.6% 179,008 303,654 69.6%
Conversion impact euro/other currencies -- -1,173 -- 3,853
Revenue ex-TAC at constant currency 54,855 95,130 73.4% 179,008 307,507 71.8%
Revenue ex-TAC / Revenue as reported 40.4% 41.4% 40.3% 40.8%
Other cost of revenue as reported 6,335 11,054 74.5% 21,956 36,150 64.6%
Conversion impact euro/other currencies -- -374 -- 268
Other cost of revenue at constant currency 6,335 10,680 68.6% 21,956 36,418 65.9%
Adjusted EBITDA 14,504 31,854 119.6% 31,313 79,427 153.7%
Conversion impact euro/other currencies -- 165 603
Adjusted EBITDA at constant currency 14,504 32,019 120.8% 31,313 80,030 155.6%
CRITEO S.A.
Information on share count
(unaudited)
At December 31,
2013 2014
Shares outstanding as at January 1, 47,123,017 56,856,070
Weighted average number of shares issued during the period 1,569,131 2,072,493
Basic number of shares - Basic EPS basis 48,692,148 58,928,563
Dilutive effect of share options, warrants, employee warrants - Treasury method 6,482,616 3,717,153
Diluted number of shares - Diluted EPS basis 55,174,764 62,645,716
Shares outstanding as at December 31, 56,856,070 60,902,695
Total dilutive effect of share options, warrants, employee warrants 9,060,459 7,555,249
Fully diluted shares as at December 31, 65,916,529 68,457,944
CRITEO S.A.
Supplemental Financial Information and Operating Metrics
(unaudited)
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
YoY
Change
QoQ Change
Clients 3,811 4,274 4,631 5,072 5,567 6,131 6,581 7,190 41.8% 9.3%
Revenue ('000 euros) 94,862 99,400 113,811 135,889 152,520 165,317 194,449 232,796 71.3% 19.7%
Americas 25,025 28,846 30,473 38,660 37,630 46,942 58,602 85,598 121.4% 46.1%
EMEA 54,434 53,348 59,732 70,291 83,853 84,187 93,885 104,480 48.6% 11.3%
APAC 15,403 17,206 23,606 26,937 31,037 34,187 41,962 42,718 58.6% 1.8%
Revenue ex-TAC ('000 euros) 37,306 40,032 46,815 54,855 62,733 67,022 77,596 96,303 75.6% 24.1%
Americas 9,570 11,124 11,896 15,108 14,725 18,600 23,106 33,432 121.3% 44.7%
EMEA 21,163 21,807 25,358 29,057 35,320 35,101 38,666 46,030 58.4% 19.0%
APAC 6,573 7,101 9,561 10,690 12,688 13,321 15,824 16,841 57.5% 6.4%
Cash flow from operating activities ('000 euros) 4,585 4,134 3,731 12,255 11,437 11,162 25,481 39,555 222.8% 55.2%
Capital expenditures ('000 euros) 2,489 6,590 5,737 7,187 3,781 10,459 11,156 9,993 39.0% -10.4%
Net Cash Position ('000 euros) 43,876 47,893 39,839 234,343 241,785 242,895 256,719 289,748 23.6% 12.9%
Days Sales Outstanding (days - end of month) 58.1 56.7 55.6 53.5 53.8 57.1 56.6 54.7 2.3% -3.4%

CONTACT: Criteo Investor Relations Edouard Lassalle, Head of IR e.lassalle@criteo.com Friederike Edelmann, Senior IR Manager f.edelmann@criteo.com Criteo Public Relations Emma Ferns, Global PR director e.ferns@criteo.com

Source:Criteo