Criteo (CRTO) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results with double-digit organic growth, revenue of $471M (up 1% year-over-year), and gross profit of $233M (up 17%), driven by strong Retail Media performance and margin expansion.

• Strategic partnership with Microsoft expanded to include retail media, with technology stack integration and access to 500K+ advertisers, positioning the company as a central player in the converging retail media landscape.

• Retail Media footprint expanded to 225 retailers and 2,900+ brands, including 65% of top 30 U.S. and 50% of top 30 EMEA retailers.

• AI-driven platform enhancements and integration of generative AI contributed to double-digit million increases in Contribution ex-TAC.

• Net income reached $28M, a significant improvement from a $2M loss in Q2 2023, with adjusted diluted EPS at $1.08, up 104%.

Financial highlights

• Q2 2024 revenue was $471M; Contribution ex-TAC reached $267M, up 14% year-over-year at constant currency.

• Adjusted EBITDA was $93M, up 67% year-over-year; adjusted EBITDA margin reached a record 35% of revenue.

• Gross profit margin improved to 49% from 43% a year ago; Contribution ex-TAC margin increased to 57% from 51% year-over-year.

• Free cash flow for the trailing 12 months was $142M; cash and marketable securities totaled $239M as of June 30, 2024.

• Non-GAAP operating expenses decreased 6% year-over-year; operating expenses as a percentage of revenue declined due to lower R&D and sales costs.

Outlook and guidance

• Raised FY 2024 guidance: Contribution ex-TAC expected to grow 10–12% at constant currency, up from prior high single-digit guidance.

• Retail Media contribution ex-TAC growth expected at 20–22% for 2024; Performance Media guidance raised to high single-digit growth.

• Adjusted EBITDA margin guidance increased to ~32% of Contribution ex-TAC for 2024.

• Q3 2024 Contribution ex-TAC expected at $264–$268M, with adjusted EBITDA of $72–$76M.

• Capital expenditures projected to remain around 7% of Contribution ex-TAC for 2024.