Criteo SA (CRTO) Reports 5% Revenue Growth in Q3 2023
Q3 2023 revenue increased by 5% YoY to $469 million
Net income remained stable at $7 million, with a 2% YoY increase
Gross profit rose by 14% YoY to $205 million
Activated media spend grew 32% YoY, reaching $1.0 billion in Q3
On November 2, 2023, Criteo SA (NASDAQ:CRTO) released its financial results for the third quarter of 2023. The company reported a 5% YoY increase in revenue, reaching $469 million. Gross profit also saw a significant rise, increasing by 14% YoY to $205 million. Despite a challenging macro environment, the company's net income remained stable at $7 million, marking a 2% YoY increase.
Financial Highlights
According to the consolidated financial results, Criteo SA (NASDAQ:CRTO)'s GAAP revenue for the first nine months of 2023 was $1,383 million, a 5% decrease from the same period in 2022. However, the company's gross profit margin improved by 4 percentage points to 42%. The company's net income for the first nine months of 2023 was a loss of $7 million, a 43% increase from the $5 million loss reported in the same period in 2022.
Non-GAAP results showed a 10% YoY increase in Contribution ex-TAC to $706 million. Adjusted EBITDA remained stable at $163 million, while adjusted diluted EPS decreased by 14% to $1.66.
Operational Highlights
Criteo SA (NASDAQ:CRTO) launched Commerce Max into general availability, a unique self-service demand-side platform (DSP) that provides brands and agencies with a single point of entry to retail media inventory. The company also expanded its retailer monetization solution suite, Commerce Yield, offering retailers the means to tap previously unattainable demand.
The company's activated media spend, including Iponweb, was $4.0 billion in the last 12 months and $1.0 billion in Q3, growing 32% YoY. Retail Media Contribution ex-TAC grew 29% YoY and same-retailer Contribution ex-TAC retention for Retail Media was 123%.
Looking Forward
Despite the challenging macro environment, Criteo SA (NASDAQ:CRTO) is optimistic about its future performance. The company's CFO, Sarah Glickman, stated, "Our third quarter performance demonstrates our strong focus on execution and cost discipline. Despite a challenging macro environment, we believe we are well on our way to achieving over $1 billion in Contribution ex-TAC this year for the first time in Criteos history.
The company expects a 9% to 10% growth in Contribution ex-TAC at constant currency for the fiscal year 2023, including the contribution from the Iponweb acquisition. For the fourth quarter of 2023, the company anticipates Contribution ex-TAC to be between $296 million and $302 million, representing a YoY growth at constant-currency of 5% to 7%.
Explore the complete 8-K earnings release (here) from Criteo SA for further details.
This article first appeared on GuruFocus.
