Criteo Reports Results For The Second Quarter 2019 And Announces A New $80 Million Share Repurchase Program
NEW YORK, July 31, 2019 /PRNewswire/ -- Criteo S.A. (NASDAQ: CRTO), the advertising platform for the open Internet, today announced financial results for the second quarter ended June 30, 2019.
-- Revenue decreased 2% year-over-year, and increased 1% at constant
currency(1), to $528 million.
-- Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC(2),
decreased 3% year-over-year, and increased 0.3% at constant currency, to
$224 million (or $225 million at the Q2 guidance exchange rates), or 42%
of revenue.
-- Net income decreased 15% year-over-year to $13 million.
-- Adjusted EBITDA(2) declined 18% year-over-year, or 16% at constant
currency, to $56 million, or 25% of Revenue ex-TAC.
-- Cash flow from operating activities increased 31% year-over-year to $53
million.
-- Free Cash Flow(2) reached $20 million and the cash position increased to
$422 million as of June 30, 2019.
-- Adjusted Net Income per diluted share(2) was $0.47.
-- We maintain our 2019 outlook for both Revenue ex-TAC growth and Adjusted
EBITDA margin.
-- Our Board of Directors has authorized a share repurchase program of up
to $80 million of outstanding American Depositary Shares.
"In a challenging landscape, we achieved important milestones in our transformation in Q2," said JB Rudelle, CEO. "I feel good about our strategic direction and our ability to deliver on our plans."
"We maintain our 2019 outlook for both topline growth and profitability margin, and are strongly committed to delivering healthy profitability over time," said Benoit Fouilland, CFO.
Operating Highlights
-- Revenue ex-TAC from new products, which includes all solutions outside
of retargeting, represented 10% of total, growing 61% year-over-year.
-- We added 360 net new clients in Q2, the highest level since Q2 2018, and
maintained client retention at close to 90% for all products.
-- Revenue ex-TAC from mobile apps grew 21% year-over-year.
-- Same-client revenue(3) decreased 1.9% year-over-year at constant
currency and same-client Revenue ex-TAC(3) decreased 2.9% year-over-year
at constant currency.
-- Our header-bidding technology now connects to over 3,800 web publishers
and 200 app developers providing direct access to quality inventory.
-- We just launched our self-registration feature for small and medium
clients starting with three key markets: the U.S., U.K. and Australia.
-- We took effective measures to further reduce employee attrition.
Revenue and Revenue ex-TAC
Revenue declined 2% year-over-year, and increased 1% at constant currency, to $528 million (Q2 2018: $537 million). Revenue ex-TAC decreased 3% year-over-year, and increased 0.3% at constant currency, to $224 million (Q2 2018: $230 million). The increase at constant currency was primarily driven by our business with new clients, in particular in the midmarket, offsetting a slight decline in our business with existing clients, despite continued adoption of our new solutions across our existing client base. Revenue ex-TAC margin was 42.4% of revenue (Q2 2018: 42.9%).
-- In the Americas, Revenue grew 1% year-over-year, or 1% at constant
currency, to $214 million and represented 40% of total Revenue. Revenue
ex-TAC declined 3% year-over-year, or 3% at constant currency, to $84
million and represented 38% of total Revenue ex-TAC.
-- In EMEA, Revenue declined 3% year-over-year, and increased 3% at
constant currency, to $194 million and represented 37% of total Revenue.
Revenue ex-TAC declined 2% year-over-year, and grew 4% at constant
currency, to $87 million and represented 39% of total Revenue ex-TAC.
-- In Asia-Pacific, Revenue declined 3% year-over-year, or 1% at constant
currency, to $120 million and represented 23% of total Revenue. Revenue
ex-TAC declined 4% year-over-year, or 2% at constant currency, to $52
million and represented 23% of total Revenue ex-TAC.
Net Income and Adjusted Net Income
Net income decreased 15% year-over-year to $13 million (Q2 2018: $15 million). Net income margin as a percentage of revenue was 2.4% (Q2 2018: 2.7%), a 40-basis point decrease year-over-year. Net income available to shareholders of Criteo S.A. decreased 21% year-over-year to $11 million, or $0.16 per share on a diluted basis (Q2 2018: $14 million, or $0.20 per share on a diluted basis).
Adjusted Net Income, or net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs and deferred price consideration, restructuring costs and the tax impact of these adjustments, decreased 13% year-over-year to $31 million, or $0.47 per share on a diluted basis (Q2 2018: $35 million, or $0.53 per share on a diluted basis).
Adjusted EBITDA and Operating Expenses
Adjusted EBITDA declined 18% year-over-year, or 16% at constant currency, to $56 million (Q2 2018: $69 million), primarily driven by the decrease in Revenue ex-TAC, increased Non-GAAP expenses, in particular in other cost of revenue, as well as a $5 million exceptional charge relating to an invoicing dispute. Adjusted EBITDA as a percentage of Revenue ex-TAC, which we refer to as Adjusted EBITDA margin, was 25.2% (Q2 2018: 29.9%), a 470-basis point decrease year-over-year.
Operating expenses were at $175 million (Q2 2018: $176 million), in line with the prior-year period. Operating expenses, excluding the impact of equity awards compensation expense, pension costs, restructuring costs, depreciation and amortization and acquisition-related costs and deferred price consideration, which we refer to as Non-GAAP Operating Expenses, increased 2% year-over-year to $149 million (Q2 2018: $147 million). In connection with our company transformation, we incurred restructuring costs of $0.7 million, including $2 million related to cash payroll and facilities expenses that were added back to Adjusted EBITDA, and $1 million of facilities related depreciation and amortization expense, partially offset by non-cash forfeitures of equity awards.
Cash Flow and Cash Position
Cash flow from operating activities increased 31% year-over-year to $53 million (Q2 2018: $40 million). Free Cash Flow, defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment, decreased 10% year-over-year to $20 million (Q2 2018: $22 million), representing 36% of Adjusted EBITDA (Q2 2018: 33%).
Cash and cash equivalents increased $58 million in the first half of 2019 to $422 million.
Business Outlook
The following forward-looking statements reflect Criteo's expectations as of July 31, 2019.
Third quarter 2019 guidance:
-- We expect Revenue ex-TAC to be between $219 million and $223 million,
implying constant-currency growth of approximately -2% to +0%.
-- We expect Adjusted EBITDA to be between $57 million and $61 million.
Fiscal year 2019 guidance:
-- We maintain our outlook and expect Revenue ex-TAC growth for fiscal year
2019 of between 0% and 2% at constant currency.
-- We maintain our outlook and expect Adjusted EBITDA margin for fiscal
year 2019 of approximately 30% of Revenue ex-TAC.
The above guidance for the quarter ending September 30, 2019 and the fiscal year ending December 31, 2019, assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.88 a U.S. dollar-Japanese Yen rate of 109, a U.S. dollar-British pound rate of 0.78 and a U.S. dollar-Brazilian real rate of 3.81.
The above guidance assumes no acquisitions are completed during the quarter ending September 30, 2019, and the fiscal year ending December 31, 2019.
Reconciliation of Revenue ex-TAC and Adjusted EBITDA guidance to the closest corresponding U.S. GAAP 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-GAAP measures; in particular, the measures and effects of equity awards compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our share price. We expect the variability of the above charges to have a potentially significant impact on our future U.S. GAAP financial results.
Announcement of a $80 million Share Repurchase Program
Demonstrating the Company's confidence in its business and its ability to generate Free Cash Flow, Criteo today announces that the Board of Directors has authorized a share repurchase program of up to $80 million of the Company's outstanding American Depositary Shares.
This program relies primarily upon the authorization provided by shareholders at the Company's 2019 Annual General Meeting, and as such the Company intends to use repurchased shares to satisfy employee equity plan vesting in lieu of issuing new shares, and potentially in connection with M&A transactions. The authorization is effective immediately and remains in effect until May 15, 2020.
Under the terms of the approved program, the stock purchases may be made from time to time on the NASDAQ Global Select Market in compliance with applicable state and federal securities laws (including the requirements of SEC Rule 10b-18) and applicable provisions of French corporate law. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements and capital availability, as determined by Criteo's management team and within the limits set by the shareholders' authorization. The program does not require the purchase of any minimum number of shares and may be suspended, modified or discontinued at any time without prior notice.
Non-GAAP Financial Measures
This press release and its attachments include the following financial measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission (the "SEC"): Revenue ex-TAC, Revenue ex-TAC by Region, Revenue ex-TAC margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per diluted share, Free Cash Flow and Non-GAAP Operating Expenses. These measures are not calculated in accordance with U.S. GAAP.
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 geographies. Revenue ex-TAC, Revenue ex-TAC by Region and Revenue ex-TAC margin 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 business and across our geographies.
Accordingly, we believe that Revenue ex-TAC, Revenue ex-TAC by Region and Revenue ex-TAC margin provide 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 consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. Adjusted EBITDA and Adjusted EBITDA margin are key measures 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 by eliminating equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration, Adjusted EBITDA and Adjusted EBITDA margin can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide 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.
Adjusted Net Income is our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs and deferred price consideration, restructuring costs and the tax impact of these adjustments. Adjusted Net Income and Adjusted Net Income per diluted share are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital.
In particular, we believe that by eliminating equity awards compensation expense, amortization of acquisition-related intangible assets, acquisition-related costs and deferred price consideration, restructuring costs and the tax impact of these adjustments, Adjusted Net Income and Adjusted Net Income per diluted share can provide useful measures for period-to-period comparisons of our business.
Accordingly, we believe that Adjusted Net Income and Adjusted Net Income per diluted share provide 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.
Free Cash Flow is defined as cash flow from operating activities less acquisition of intangible assets, property, plant and equipment and change in accounts payable related to intangible assets, property, plant and equipment. Free Cash Flow is a key measure used by our management and board of directors to evaluate the Company's ability to generate cash. Accordingly, we believe that Free Cash Flow permits a more complete and comprehensive analysis of our available cash flows.
Non-GAAP Operating Expenses are our consolidated operating expenses adjusted to eliminate the impact of depreciation and amortization, equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. The Company uses Non-GAAP Operating Expenses to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short-term and long-term operational plans, and to assess and measure our financial performance and the ability of our operations to generate cash. We believe Non-GAAP Operating Expenses reflects our ongoing operating expenses in a manner that allows for meaningful period-to-period comparisons and analysis of trends in our business. As a result, we believe that Non-GAAP Operating Expenses provides useful information to investors in understanding and evaluating our core operating performance and trends in the same manner as our management and in comparing financial results across periods. In addition, Non-GAAP Operating Expenses is a key component in calculating Adjusted EBITDA, which is one of the key measures the Company uses to provide its quarterly and annual business outlook to the investment community.
Please refer to the 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 region, Adjusted EBITDA to net income, Adjusted Net Income to net income, Free Cash Flow to cash flow from operating activities, and Non-GAAP Operating Expenses to operating expenses, in each case, the most comparable U.S. GAAP measure. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider such non-GAAP measures in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. 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, Free Cash Flow, Non-GAAP Operating Expenses or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our U.S. GAAP financial results, including revenue and net income.
Forward-Looking Statements Disclosure
This press release contains forward-looking statements, including projected financial results for the quarter ending September 30, 2019 and the fiscal year ending December 31, 2019, 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: failure related to our technology and our ability to respond to changes in technology, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions materialize as expected, uncertainty regarding international growth and expansion, the impact of competition, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith, failure to enhance our brand cost-effectively, recent growth rates not being indicative of future growth, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, 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 Annual Report on Form 10-K filed with the SEC on March 1, 2019, and in subsequent Quarterly Report on Form 10-Q as well as future filings and reports by the Company.
Except as required by law, 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's earnings conference call will take place today, July 31, 2019, at 8:00 AM ET, 2:00 PM CET. The conference call will be webcast live on the Company's website http://ir.criteo.com and will be available for replay.
Conference call details:
--
U.S. callers:
+1 855 209 8212
--
International callers: +1 412 317 0788 or +33 1 76 74
05 02
Please ask to be joined into the "Criteo S.A." call.
About Criteo
Criteo (NASDAQ: CRTO) is the advertising platform for the open Internet, an ecosystem that favors neutrality, transparency and inclusiveness. Close to 2,900 Criteo team members partner with close to 20,000 customers and thousands of publishers around the globe to deliver effective advertising across all channels, by applying advanced machine learning to unparalleled data sets. Criteo empowers companies of all sizes with the technology they need to better know and serve their customers. For more information, please visit www.criteo.com.
(1) Growth at constant
currency excludes the
impact of foreign
currency fluctuations
and is computed by
applying the 2018
average exchange
rates for the
relevant period to
2019 figures.
2 Revenue ex-TAC,
Adjusted EBITDA,
Adjusted net Income
per diluted
share,Free Cash Flow
and growth at
constant currency are
not measures
calculated in
accordance with U.S.
GAAP.
(3) Same-client revenue
or Revenue ex-TAC is
the revenue or
Revenue ex-TAC
generated by clients
that were live with
us in a given quarter
and still live with
us the same quarter
in the following
year.
Contacts
Criteo Investor Relations
Edouard Lassalle, VP, Head of IR, e.lassalle@criteo.com
Friederike Edelmann, IR Director, f.edelmann@criteo.com
Criteo Public Relations
Isabelle Leung-Tack, VP, Global Communications, i.leungtack@criteo.com
Financial information to follow
CRITEO S.A.
Consolidated Statement of Financial Position
(U.S. dollars in thousands, unaudited)
December 31, 2018 June 30, 2019
Assets
Current assets:
Cash and cash equivalents $
364,426 $
422,053
Trade receivables, net of
allowances of $25.9 million and
$19.5 million at December 31, 2018
and June 30, 2019, respectively 473,901 374,949
Income taxes 19,370 18,185
Other taxes 53,338 56,090
Other current assets 22,816 18,751
Total current assets 933,851 890,028
Property, plant and equipment, net 184,013 192,651
Intangible assets, net 112,036 103,113
Goodwill 312,881 317,093
Right of Use Asset -operating
lease (1) 183,725
Non-current financial assets 20,460 21,613
Deferred tax assets 33,894 41,346
Total non-current assets 663,284 859,541
Total assets $
1,597,135 $
1,749,569
Liabilities and shareholders'
equity
Current liabilities:
Trade payables $
425,376 $
332,735
Contingencies 2,640 4,156
Income taxes 7,725 7,065
Financial liabilities -current
portion 1,018 2,030
Lease liability -operating -
current portion (1) 47,964
Other taxes 55,592 56,929
Employee -related payables 65,878 68,702
Other current liabilities 47,115 33,986
Total current liabilities 605,344 553,567
Deferred tax liabilities 10,770 8,489
Retirement benefit obligation 5,537 8,002
Financial liabilities -non current
portion 2,490 2,051
Lease liability -operating -non
current portion (1) 148,170
Other non-current liabilities 5,103 4,327
Total non-current liabilities 23,900 171,039
Total liabilities 629,244 724,606
Commitments and contingencies
Shareholders' equity:
Common shares, EUR0.025 par value,
67,708,203 and 66,161,523 shares
authorized, issued and outstanding
at December 31, 2018 and June 30,
2019, respectively. 2,201 2,157
Treasury stock, 3,459,119 and
1,118,969 shares at cost as of
December 31, 2018 and June 30,
2019, respectively. (79,159) (26,564)
Additional paid-in capital 663,281 652,572
Accumulated other comprehensive
(loss) (30,522) (33,293)
Retained earnings 387,869 401,209
Equity -attributable to
shareholders of Criteo S.A. 943,670 996,081
Non-controlling interests 24,221 28,882
Total equity 967,891 1,024,963
Total equity and liabilities $
1,597,135 $
1,749,569
(1) Effective January 1, 2019
we have adopted ASC 842,
Leases. We have elected the
modified retrospective
transition method and not
restated comparative prior
periods. Upon adoption, we
recognized total operating
lease liabilities of $223.5
million and operating right-
of-use assets of $204.3
million.
CRITEO S.A.
Consolidated Statement of Income
(U.S. dollars in thousands, except share and per share data, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2018 2019 YoY 2018 2019 YoY
Change Change
Revenue $
537,185 $
528,147 (2) $
1,101,349 $
1,086,270 (1)
% %
Cost of revenue
Traffic acquisition cost (306,963) (304,229) (1) (630,709) (626,658) (1)
% %
Other cost of revenue (29,957) (29,059) (3) (60,016) (55,104) (8)
% %
Gross profit 200,265 194,859 (3) 410,624 404,508 (1)
% %
Operating expenses:
Research and development expenses (47,544) (44,015) (7) (92,862) (90,592) (2)
% %
Sales and operations expenses (92,726) (95,503) 3 (188,375) (191,412) 2
% %
General and administrative expenses (35,644) (35,767) 0.3 (70,235) (69,537) (1)
% %
Total Operating expenses (175,914) (175,285) (0.4)
% (351,472) (351,541) %
Income from operations 24,351 19,574 (20) 59,152 52,967 (10)
% %
Financial income (expense) (1,006) (1,354) 35 (2,331) (3,328) 43
% %
Income before taxes 23,345 18,220 (22) 56,821 49,639 (13)
% %
Provision for income taxes (8,638) (5,683) (34) (21,024) (15,701) (25)
% %
Net Income $
14,707 $
12,537 (15) $
35,797 $
33,938 (5)
% %
Net income available to shareholders of Criteo S.A. $
13,726 $
10,823 (21) $
33,535 $
29,943 (11)
% %
Net income available to non-controlling interests $
981 $
1,714 75 $
2,262 $
3,995 77
% %
Weighted average shares outstanding used in computing
per share amounts:
Basic 66,347,599 64,581,476 66,254,476 64,459,867
Diluted 67,488,311 65,624,505 67,479,513 65,833,642
Net income allocated to shareholders per share:
Basic $
0.21 $
0.17 (19) $
0.51 $
0.46 (10)
% %
Diluted $
0.20 $
0.16 (20) $
0.50 $
0.45 (10)
% %
CRITEO S.A.
Consolidated Statement of Cash Flows
(U.S. dollars in thousands, unaudited)
Three Months Ended Six Months Ended
June 30,
June 30,
2018 2019 YoY 2018 2019 YoY
Change Change
Net income $
14,707 $
12,537 (15) $
35,797 $
33,938 (5)
% %
Non-cash and non-operating items 35,677 28,961 (19) 75,427 53,959 (28)
% %
-Amortization and provisions 25,099 18,282 (27) 51,149 37,926 (26)
% %
-Equity awards compensation expense 20,241 11,713 (42) 39,070 25,595 (34)
(1)
% %
-Change in deferred taxes (4,389) 7,252 NM (7,535) 1,336 NM
-Change in income taxes (5,316) (8,696) 64
% (4,000) (10,630) NM
- Other (2) 42 410 NM (3,257) (268) (92)
%
Changes in working capital related to
operating activities (10,043) 11,466 NM 13,644 32,287 NM
-Decrease in trade receivables 10,154 19,325 90 101,446 105,343 4
%
%
-Decrease in trade payables (26,745) (14,995) (44) (89,690) (73,480) (18)
% %
-Decrease in other current assets 5,821 7,504 29 13,779 1,512 (89)
%
%
-Increase/(Decrease) in other
current liabilities (2) 727 3,015 NM (11,891) 5,451 NM
-Change in operating lease
liabilities and right of use assets
(3) (3,383) NM (6,539) NM
CASH FROM OPERATING ACTIVITIES 40,341 52,964 31 124,868 120,184 (4)
%
%
Acquisition of intangible assets, (18,880) (28,812) 53 (26,293) (42,104) 60
property, plant and equipment %
%
Change in accounts payable related to 1,033 (3,980) NM (24,121) (14,372) (40)
intangible assets, property, plant
and equipment %
Payment for (disposal of) a business, 637 NM (10,811) (4,688) (57)
net of cash acquired (disposed)
%
Change in other non-current
financial assets 154 (1,152) NM 42 (1,184) NM
CASH USED FOR INVESTING ACTIVITIES (17,693) (33,307) 88 (61,183) (62,348) 2
%
%
Repayment of borrowings (235) (167) (29) (473) (339) (28)
% %
Net payments related to equity award
activities 396 (98) NM 562 (87) NM
Change in other financial liabilities
(2) (35) (209) NM 16,810 (239) NM
CASH FROM (USED FOR) FINANCING
ACTIVITIES 126 (474) NM 16,899 (665) NM
Effect of exchange rates changes on
cash and cash equivalents (2) (26,363) 7,099 NM (14,410) 456 NM
Net increase (decrease) in cash and (3,589) 26,282 NM 66,174 57,627 (13)
cash equivalents
%
Net cash and cash equivalents at 483,874 395,771 (18) 414,111 364,426 (12)
beginning of period
% %
Net cash and cash equivalents at end $
480,285 $
422,053 (12) $
480,285 $
422,053 (12)
of period
% %
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for taxes, net of refunds $
(18,343) $
(7,127) NM $
(32,560) $
(24,995) (23)
%
Cash paid for interest, net of $
(432) $
(351) (19) $
(840) $
(758) (10)
amounts capitalized
% %
(1) Share-based compensation
expense according to ASC 718
Compensation - stock compensation
accounted for $19.8 million and
$11.4 million of equity awards
compensation expense for the
quarter ended June 30, 2018 and
2019, respectively, and $38.2
million and $24.9 million of equity
awards compensation for the six
months ended June 30, 2018 and
2019, respectively.
(2) During the quarter ended June
30, 2018, and the six months ended
June 30, 2018, respectively, the
Company reported the cash impact of
the settlement of hedging
derivatives related to financing
activities in cash from (used for)
financing activities in the
unaudited consolidated statements
of cash flows
(3) Effective January 1, 2019 we
have adopted ASC 842, Leases. We
have elected the modified
retrospective transition method and
not restated prior periods. Changes
in operating lease liabilities and
right of use assets included rent
prepayments and accrued rent
amounts which were mapped to other
current assets and trade payables
in prior years.
CRITEO S.A.
Reconciliation of Cash from Operating Activities to Free Cash Flow
(U.S. dollars in thousands, unaudited)
Three Months Ended Six Months Ended
June 30,
June 30,
2018 2019 YoY 2018 2019 YoY
Change Change
CASH FROM OPERATING $
40,341 $
52,964 31 $
124,868 $
120,184 (4)
ACTIVITIES
% %
Acquisition of intangible (18,880) (28,812) 53
assets, property, plant %
and equipment % (26,293) (42,104) 60
Change in accounts payable
related to intangible
assets, property, plant %
and equipment 1,033 (3,980) NM (24,121) (14,372) (40)
FREE CASH FLOW (1) $
22,494 $
20,172 (10) $
74,454 $
63,708 (14)
% %
(1) Free Cash Flow is defined
as cash flow from operating
activities less acquisition
of intangible assets,
property, plant and
equipment and change in
accounts payable related to
intangible assets, property,
plant and equipment.
CRITEO S.A.
Reconciliation of Revenue ex-TAC by Region to Revenue by Region
(U.S. dollars in thousands, unaudited)
Three Months Ended Six Months Ended
June 30,
June 30,
Region 2018 2019 YoY YoY 2018 2019 YoY YoY
Change Change Change Change
at at
Constant Constant
Currency Currency
---
Revenue
Americas $
212,781 $
213,974 1 1 $
425,476 $
431,967 2 2
% %
% %
EMEA 201,080 194,359 (3) 3 423,691 404,002 (5) 3
%
% % %
Asia-Pacific 123,324 119,814 (3) (1) 252,182 250,301 (1) 2
% % % %
Total 537,185 528,147 (2) 1 1,101,349 1,086,270 (1) 2
%
% % %
Traffic acquisition costs
Americas (125,502) (129,491) 3 4 (257,023) (261,036) 2 2
% %
% %
EMEA (112,577) (107,401) (5) 1 (232,470) (224,692) (3) 4
%
% % %
Asia-Pacific (68,884) (67,337) (2) (0.3) (141,216) (140,930) (0.2) 2
% % % %
Total (306,963) (304,229) (1) 2 (630,709) (626,658) (1) 3
%
% % %
Revenue ex-TAC (1)
Americas 87,279 84,483 (3) (3) 168,453 170,931 1 2
%
% % %
EMEA 88,503 86,958 (2) 4 191,221 179,310 (6) 1
%
% % %
Asia-Pacific 54,440 52,477 (4) (2) 110,966 109,371 (1) 1
% % % %
Total $
230,222 $
223,918 (3) 0.3 $
470,640 $
459,612 (2) 1
% % % %
(1) We define Revenue ex-TAC as our
revenue excluding traffic
acquisition costs generated over
the applicable measurement period.
Revenue ex-TAC and Revenue,
Traffic Acquisition Costs and
Revenue ex-TAC by Region are not
measures calculated in accordance
with U.S. GAAP. We have included
Revenue ex-TAC and Revenue,
Traffic Acquisition Costs and
Revenue ex-TAC by Region because
they are key measures used by our
management and board of directors
to evaluate 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 and
review of these measures by region
can provide useful measures for
period-to-period comparisons of
our business. Accordingly, we
believe that Revenue ex-TAC and
Revenue, Traffic Acquisition Costs
and Revenue ex-TAC by Region
provide useful information to
investors and others in
understanding and evaluating our
results of operations in the same
manner as our management and board
of directors. Our use of Revenue
ex-TAC and Revenue, Traffic
Acquisition Costs and Revenue ex-
TAC by Region has limitations as an
analytical tool, and you should not
consider them in isolation or as a
substitute for analysis of our
financial results as reported under
U.S. GAAP. Some of these
limitations are: (a) other
companies, including companies in
our industry which have similar
business arrangements, may address
the impact of TAC differently; (b)
other companies may report Revenue,
Traffic Acquisition Costs and
Revenue ex-TAC by Region or
similarly titled measures but
define the regions differently,
which reduces their effectiveness
as a comparative measure; and (c)
other companies may report Revenue
ex-TAC or similarly titled
measures but calculate them
differently, which reduces their
usefulness as a comparative
measure. Because of these and other
limitations, you should consider
Revenue ex-TAC and Revenue,
Traffic Acquisition Costs and
Revenue ex-TAC by Region alongside
our other U.S. GAAP financial
results, including revenue. The
above table provides a
reconciliation of Revenue ex-TAC
to revenue and Revenue ex-TAC by
Region to revenue by region.
CRITEO S.A.
Reconciliation of Adjusted EBITDA to Net Income
(U.S. dollars in thousands, unaudited)
Three Months Ended Six Months Ended
June 30,
June 30,
2018 2019 YoY 2018 2019 YoY
Change Change
Net income $
14,707 $
12,537 (15) $
35,797 $
33,938 (5)
% %
Adjustments:
Financial (income) expense 1,006 1,354 35 2,331 3,328 43
%
%
Provision for income taxes 8,638 5,683 (34) 21,024 15,701 (25)
% %
Equity awards compensation 20,245 14,391 (29) 39,548 28,273 (29)
expense
% %
Research and development 6,771 4,203 (38) 11,326 8,228 (27)
% %
Sales and operations 8,668 5,693 (34) 16,499 11,894 (28)
% %
General and administrative 4,806 4,495 (6) 11,723 8,151 (30)
% %
Pension service costs 419 391 (7) 853 785 (8)
% %
Research and development 212 191 (10) 432 384 (11)
% %
Sales and operations 75 71 (5) 154 143 (7)
% %
General and administrative 132 129 (2) 267 258 (3)
% %
Depreciation and amortization 23,560 21,315 (10) 47,206 40,611 (14)
expense
% %
Cost of revenue 15,050 10,847 (28) 30,299 19,982 (34)
% %
Research and development 2,245 3,534 57 4,466 7,011 57
%
%
Sales and operations 4,518 5,109 13 8,972 9,973 11
%
%
General and administrative 1,747 1,825 4 3,469 3,645 5
%
%
Restructuring cost (1) 199 728 NM (53) 2,618 NM
Research and development 16 124 NM (332) 124 NM
Sales and operations 183 175 (4)
% 290 2,065 NM
General and administrative 429 NM (11) 429 NM
Total net adjustments 54,067 43,862 (19) 110,909 91,316 (18)
% %
Adjusted EBITDA (2) $
68,774 $
56,399 (18) $
146,706 $
125,254 (15)
% %
(1) For the three months ended June
30, 2019 and the six months ended
June 30, 2019, respectively, the
Company recognized restructuring
charges for its new organizational
structure implemented to support
its multi-product platform
strategy as detailed below:
Three Months Ended Six Months Ended
June 30, 2019
(Gain) from
forfeitures
of share-
based
compensation
expense (2,678) (2,678)
Depreciation
and
amortization
expense 1,228 1,228
Payroll and
Facilities
related costs 2,178 4,068
Total
restructuring
costs 728 2,618
(2) We define Adjusted EBITDA as our
consolidated earnings before
financial income (expense), income
taxes, depreciation and
amortization, adjusted to eliminate
the impact of equity awards
compensation expense, pension
service costs, restructuring costs,
acquisition-related costs and
deferred price consideration.
Adjusted EBITDA is not a measure
calculated in accordance with U.S.
GAAP. We have included Adjusted
EBITDA because it 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-term and long-
term operational plans. In
particular, we believe that the
elimination of equity awards
compensation expense, pension
service costs, restructuring costs,
acquisition-related costs and
deferred price consideration in
calculating Adjusted EBITDA can
provide a useful measure for
period-to-period comparisons of
our business. Accordingly, we
believe that Adjusted EBITDA
provides useful information to
investors and others in
understanding and evaluating our
results of operations in the same
manner as our management and board
of directors. Our use of Adjusted
EBITDA has limitations as an
analytical tool, and you should not
consider it in isolation or as a
substitute for analysis of our
financial results as reported under
U.S. GAAP. Some of these
limitations are: (a) although
depreciation and amortization are
non-cash charges, the assets being
depreciated and amortized may have
to be replaced in the future, and
Adjusted EBITDA does not reflect
cash capital expenditure
requirements for such replacements
or for new capital expenditure
requirements; (b) Adjusted EBITDA
does not reflect changes in, or
cash requirements for, our working
capital needs; (c) Adjusted EBITDA
does not reflect the potentially
dilutive impact of equity-based
compensation; (d) Adjusted EBITDA
does not reflect tax payments that
may represent a reduction in cash
available to us; and (e) other
companies, including companies in
our industry, may calculate
Adjusted EBITDA or similarly titled
measures differently, which reduces
their usefulness as a comparative
measure. Because of these and other
limitations, you should consider
Adjusted EBITDA alongside our U.S.
GAAP financial results, including
net income.
CRITEO S.A.
Reconciliation from Non-GAAP Operating Expenses to Operating Expenses under GAAP
(U.S. dollars in thousands, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2018 2019 YoY 2018 2019 YoY
Change Change
Research and Development $
(47,544) $
(44,015) (7) $
(92,862) $
(90,592) (2)
expenses
% %
Equity awards compensation 6,771 4,203 (38) 11,326 8,228 (27)
expense
% %
Depreciation and Amortization 2,245 3,534 57 4,466 7,011 57
expense %
%
Pension service costs 212 191 (10) 432 384 (11)
% %
Restructuring costs
(1) 16 124 NM (332) 124 NM
Non GAAP -Research and (38,300) (35,963) (6) (76,970) (74,845) (3)
Development expenses
% %
Sales and Operations expenses (92,726) (95,503) 3 (188,375) (191,412) 2
%
%
Equity awards compensation 8,668 5,693 (34) 16,499 11,894 (28)
expense
% %
Depreciation and Amortization 4,518 5,109 13 8,972 9,973 11
expense %
%
Pension service costs 75 71 (5) 154 143 (7)
% %
Restructuring costs 183 175 (4)
(1)
% 290 2,065 NM
Non GAAP -Sales and (79,282) (84,455) 7 (162,460) (167,337) 3
Operations expenses %
%
General and Administrative (35,644) (35,767) 0.3 (70,235) (69,537) (1)
expenses
% %
Equity awards compensation 4,806 4,495 (6) 11,723 8,151 (30)
expense
% %
Depreciation and Amortization 1,747 1,825 4 3,469 3,645 5
expense %
%
Pension service costs 132 129 (2) 267 258 (3)
% %
Restructuring costs
(1) 429 NM (11) 429 NM
Non GAAP -General and (28,959) (28,889) (0.2) (54,787) (57,054) 4
Administrative expenses
% %
Total Operating expenses (175,914) (175,285) (0.4)
% (351,472) (351,541) %
Equity awards compensation 20,245 14,391 (29) 39,548 28,273 (29)
expense
% %
Depreciation and Amortization 8,510 10,468 23 16,907 20,629 22
expense %
%
Pension service costs 419 391 (7) 853 785 (8)
% %
Restructuring costs
(1) 199 728 NM (53) 2,618 NM
Total Non GAAP Operating $
(146,541) $
(149,307) 2 $
(294,217) $
(299,236) 2
expenses (2) %
%
(1) For the three months ended June
30, 2019 and the six months ended
June 30, 2019, respectively, the
Company recognized restructuring
charges for its new organizational
structure implemented to support
its multi-product platform
strategy as detailed below:
Three Months Ended Six Months Ended
June 30, 2019
(Gain) from
forfeitures
of share-
based
compensation
expense (2,678) (2,678)
Depreciation
and
amortization
expense 1,228 1,228
Payroll and
Facilities
related costs 2,178 4,068
Total
restructuring
costs 728 2,618
(1) We define Non-GAAP Operating
Expenses as our consolidated
operating expenses adjusted to
eliminate the impact of
depreciation and amortization,
equity awards compensation
expense, pension service costs,
restructuring costs, acquisition-
related costs and deferred price
consideration. The Company uses
Non-GAAP Operating Expenses to
understand and compare operating
results across accounting periods,
for internal budgeting and
forecasting purposes, for short-
term and long-term operational
plans, and to assess and measure
our financial performance and the
ability of our operations to
generate cash. We believe Non-
GAAP Operating Expenses reflects
our ongoing operating expenses in
a manner that allows for
meaningful period-to-period
comparisons and analysis of trends
in our business. As a result, we
believe that Non-GAAP Operating
Expenses provides useful
information to investors in
understanding and evaluating our
core operating performance and
trends in the same manner as our
management and in comparing
financial results across periods.
In addition, Non-GAAP Operating
Expenses is a key component in
calculating Adjusted EBITDA, which
is one of the key measures we use
to provide our quarterly and
annual business outlook to the
investment community.
CRITEO S.A.
Detailed Information on Selected Items
(U.S. dollars in thousands, unaudited)
Three Months Ended Six Months Ended
June 30,
June 30,
2018 2019 YoY 2018 2019 YoY
Change Change
Equity awards compensation
expense
Research and development $
6,771 $
4,203 (38) $
11,326 $
8,228 (27)
% %
Sales and operations 8,668 5,693 (34) 16,499 11,894 (28)
% %
General and administrative 4,806 4,495 (6) 11,723 8,151 (30)
% %
Total equity awards 20,245 14,391 (29) 39,548 28,273 (29)
compensation expense
% %
Pension service costs
Research and development 212 191 (10) 432 384 (11)
% %
Sales and operations 75 71 (5) 154 143 (7)
% %
General and administrative 132 129 (2) 267 258 (3)
% %
Total pension service costs 419 391 (7) 853 785 (8)
% %
Depreciation and amortization
expense
Cost of revenue 15,050 10,847 (28) 30,299 19,982 (34)
% %
Research and development 2,245 3,534 57 4,466 7,011 57
% %
Sales and operations 4,518 5,109 13 8,972 9,973 11
% %
General and administrative 1,747 1,825 4 3,469 3,645 5
% %
Total depreciation and 23,560 21,315 (10) 47,206 40,611 (14)
amortization expense
% %
Restructuring costs (1)
Research and development 16 124 NM (332) 124 NM
Sales and operations 183 175 (4)
% 290 2,065 NM
General and administrative 429 NM (11) 429 NM
Total restructuring costs $
199 $
728 NM $
(53) $
2,618 NM
(1) For the three months ended June
30, 2019 and the six months ended
June 30, 2019, respectively, the
Company recognized restructuring
charges for its new organizational
structure implemented to support
its multi-product platform
strategy as detailed below:
Three Months Ended Six Months
Ended
June 30, 2019
(Gain) from
forfeitures
of share-
based
compensation
expense (2,678) (2,678)
Depreciation
and
amortization
expense 1,228 1,228
Payroll and
Facilities
related
costs 2,178 4,068
Total
restructuring
costs 728 2,618
CRITEO S.A.
Reconciliation of Adjusted Net Income to Net Income
(U.S. dollars in thousands except share and per share data, unaudited)
Three Months Ended Six Months Ended
June 30,
June 30,
2018 2019 YoY 2018 2019 YoY
Change Change
Net income $
14,707 $
12,537 (15) $
35,797 $
33,938 (5)
% %
Adjustments:
Equity awards compensation 20,245 14,391 (29) 39,548 28,273 (29)
expense
% %
Amortization of acquisition- 3,448 5,465 58 6,905 10,937 58
related intangible assets %
%
Restructuring costs (1) 199 728 NM (53) 2,618 NM
Tax impact of the above (3,117) (2,391) (23) (6,196) (5,331) (14)
adjustments
% %
Total net adjustments 20,775 18,193 (12) 40,204 36,497 (9)
% %
Adjusted net income (2) $
35,482 $
30,730 (13) $
76,001 $
70,435 (7)
% %
Weighted average shares
outstanding
- Basic 66,347,599 64,581,476 66,254,476 64,459,867
- Diluted 67,488,311 65,624,505 67,479,513 65,833,642
Adjusted net income per share
- Basic $
0.53 $
0.48 (9) $
1.15 $
1.09 (5)
% %
- Diluted $
0.53 $
0.47 (11) $
1.13 $
1.07 (5)
% %
(1) For the three months ended June
30, 2019 and the six months ended
June 30, 2019, respectively, the
Company recognized restructuring
charges for its new organizational
structure implemented to support
its multi-product platform
strategy as detailed below:
Three Months Ended Six Months Ended
June 30, 2019
(Gain) from
forfeitures
of share-
based
compensation
expense (2,678) (2,678)
Depreciation
and
amortization
expense 1,228 1,228
Payroll and
Facilities
related costs 2,178 4,068
Total
restructuring
costs 728 2,618
(2) We define Adjusted Net Income
as our net income adjusted to
eliminate the impact of equity
awards compensation expense,
amortization of acquisition-
related intangible assets,
restructuring costs, acquisition-
related costs and deferred price
consideration and the tax impact
of the foregoing adjustments.
Adjusted Net Income is not a
measure calculated in accordance
with U.S. GAAP. We have included
Adjusted Net Income because it is
a key measure used by our
management and board of directors
to evaluate operating performance,
generate future operating plans
and make strategic decisions
regarding the allocation of
capital. In particular, we believe
that the elimination of equity
awards compensation expense,
amortization of acquisition-
related intangible assets,
acquisition-related costs and
deferred price consideration,
restructuring costs and the tax
impact of the foregoing
adjustments in calculating
Adjusted Net Income can provide a
useful measure for period-to-
period comparisons of our
business. Accordingly, we believe
that Adjusted Net Income provides
useful information to investors
and others in understanding and
evaluating our results of
operations in the same manner as
our management and board of
directors. Our use of Adjusted Net
Income has limitations as an
analytical tool, and you should
not consider it in isolation or as
a substitute for analysis of our
financial results as reported
under U.S. GAAP. Some of these
limitations are: (a) Adjusted Net
Income does not reflect the
potentially dilutive impact of
equity-based compensation or the
impact of certain acquisition
related costs; and (b) other
companies, including companies in
our industry, may calculate
Adjusted Net Income or similarly
titled measures differently, which
reduces their usefulness as a
comparative measure. Because of
these and other limitations, you
should consider Adjusted Net
Income alongside our other U.S.
GAAP-based financial results,
including net income.
CRITEO S.A.
Constant Currency Reconciliation
(U.S. dollars in thousands, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2018 2019 YoY 2018 2019 YoY
Change Change
Revenue as reported $
537,185 $
528,147 (2) $
1,101,349 $
1,086,270 (1)
% %
Conversion impact U.S.
dollar/other currencies 15,705 39,746
Revenue at constant 537,185 543,852 1 1,101,349 1,126,016 2
currency(1)
% %
Traffic acquisition costs (306,963) (304,229) (1) (630,709) (626,658) (1)
as reported
% %
Conversion impact U.S.
dollar/other currencies (8,662) (22,132)
Traffic Acquisition Costs (306,963) (312,891) 2 (630,709) (648,790) 3
at constant currency(1)
% %
Revenue ex-TAC as 230,222 223,918 (3) 470,640 459,612 (2)
reported(2)
% %
Conversion impact U.S.
dollar/other currencies 7,043 17,614
Revenue ex-TAC at 230,222 230,961 0.3 470,640 477,226 1
constant currency(2)
% %
Revenue ex-
TAC(2)/Revenue as
reported 43
% 42
% 43
% 42
%
Other cost of revenue as (29,957) (29,059) (3) (60,016) (55,104) (8)
reported
% %
Conversion impact U.S.
dollar/other currencies (643) (1,393)
Other cost of revenue at (29,957) (29,702) (1) (60,016) (56,497) (6)
constant currency(1)
% %
Adjusted EBITDA(3) 68,774 56,399 (18) 146,706 125,254 (15)
% %
Conversion impact U.S.
dollar/other currencies 1,638 5,973
Adjusted EBITDA(3) at $
68,774 $
58,037 (16) $
146,706 $
131,227 (11)
constant currency(1)
% %
Adjusted
EBITDA(3)/Revenue ex-
TAC(2) 30
% 25
% 31
% 27
%
(1) Information herein with respect
to results presented on a constant
currency basis is computed by
applying prior period average
exchange rates to current period
results. We have included results
on a constant currency basis
because it is a key measure used by
our management and Board of
directors to evaluate operating
performance. Management reviews and
analyzes business results excluding
the effect of foreign currency
translation because they believe
this better represents our
underlying business trends. The
table above reconciles the actual
results presented in this section
with the results presented on a
constant currency basis.
(2) Revenue ex-TAC is not a measure
calculated in accordance with U.S.
GAAP. See the table entitled
"Reconciliation of Revenue ex-TAC
by Region to Revenue by Region" for
a reconciliation of Revenue Ex-TAC
to revenue.
(3) Adjusted EBITDA is not a measure
calculated in accordance with U.S.
GAAP. See the table entitled
"Reconciliation of Adjusted EBITDA
to Net Income" for a reconciliation
of Adjusted EBITDA to net income.
CRITEO S.A.
Information on Share Count
(unaudited)
Six Months Ended
June 30,
2018 2019
Shares outstanding
as at January 1, 66,085,097 64,249,084
Weighted average
number of shares
issued during the
period 169,379 210,783
Basic number of
shares -Basic EPS
basis 66,254,476 64,459,867
---
Dilutive effect of
share options,
warrants, employee
warrants -Treasury
method 1,225,037 1,373,775
Diluted number of
shares -Diluted
EPS basis 67,479,513 65,833,642
---
Shares issued as at
June 30, before
Treasure stocks 66,861,045 66,161,523
---
Treasury stock as of
June 30, (1,118,969)
Shares outstanding
as of June 30,
after Treasury
stocks 66,861,045 65,042,554
---
Total dilutive
effect of share
options, warrants,
employee warrants 8,477,469 7,458,330
Fully diluted shares
as of June 30, 75,338,514 72,500,884
---
CRITEO S.A.
Supplemental Financial Information and Operating Metrics
(U.S. dollars in thousands except where stated, unaudited)
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2 YoY QoQ
2017 2017 2018 2018 2018 2018 2019 2019
Change Change
Clients 17,299 18,118 18,528 18,936 19,213 19,419 19,373 19,733 4% 2%
Revenue 563,973 674,031 564,164 537,185 528,869 670,096 558,123 528,147 (2)% (5)%
Americas 228,326 324,696 212,695 212,781 211,247 317,350 217,993 213,974 1% (2)%
EMEA 207,168 221,019 222,611 201,080 195,230 220,904 209,643 194,359 (3)% (7)%
APAC 128,479 128,316 128,858 123,324 122,392 131,842 130,487 119,814 (3)% (8)%
TAC (329,576) (397,087) (323,746) (306,963) (305,387) (398,238) (322,429) (304,229) (1)% (6)%
Americas (141,869) (203,368) (131,521) (125,502) (126,406) (196,168) (131,545) (129,491) 3% (2)%
EMEA (115,446) (120,662) (119,893) (112,577) (111,131) (128,053) (117,291) (107,401) (5)% (8)%
APAC (72,261) (73,057) (72,332) (68,884) (67,850) (74,017) (73,593) (67,337) (2)% (9)%
Revenue ex-TAC (1) 234,397 276,944 240,418 230,222 223,482 271,858 235,694 223,918 (3)% (5)%
Americas 86,457 121,328 81,174 87,279 84,841 121,182 86,448 84,483 (3)% (2)%
EMEA 91,722 100,357 102,718 88,503 84,099 92,851 92,352 86,958 (2)% (6)%
APAC 56,218 55,259 56,526 54,440 54,542 57,825 56,894 52,477 (4)% (8)%
Cash flow from operating activities 61,727 79,002 84,527 40,341 50,256 85,600 67,220 52,964 31% (21)%
Capital expenditures 27,773 25,476 32,567 17,847 29,656 45,408 23,684 32,792 84% 38%
Capital expenditures/Revenue 5% 4% 6% 3% 6% 7% 4% 6% N.A N.A
Net cash position 357,983 414,111 483,874 480,285 458,690 364,426 395,771 422,053 (12)% 7%
Headcount 2,712 2,764 2,675 2,678 2,737 2,744 2,813 2,873 7% 2%
Days Sales Outstanding (days -end of
month) 56 57 60 61 60 58 59 58 N.A N.A
---
(1) We define Revenue ex-TAC as our
revenue excluding traffic
acquisition costs generated over
the applicable measurement period.
Revenue ex-TAC and Revenue,
Traffic Acquisition Costs and
Revenue ex-TAC by Region are not
measures calculated in accordance
with U.S. GAAP. We have included
Revenue ex-TAC and Revenue,
Traffic Acquisition Costs and
Revenue ex-TAC by Region because
they are key measures used by our
management and board of directors
to evaluate 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 and
review of these measures by region
can provide useful measures for
period-to-period comparisons of
our business. Accordingly, we
believe that Revenue ex-TAC and
Revenue, Traffic Acquisition Costs
and Revenue ex-TAC by Region
provide useful information to
investors and others in
understanding and evaluating our
results of operations in the same
manner as our management and board
of directors. Our use of Revenue
ex-TAC and Revenue, Traffic
Acquisition Costs and Revenue ex-
TAC by Region has limitations as an
analytical tool, and you should not
consider them in isolation or as a
substitute for analysis of our
financial results as reported under
U.S. GAAP. Some of these
limitations are: (a) other
companies, including companies in
our industry which have similar
business arrangements, may address
the impact of TAC differently; (b)
other companies may report Revenue,
Traffic Acquisition Costs and
Revenue ex-TAC by Region or
similarly titled measures but
define the regions differently,
which reduces their effectiveness
as a comparative measure; and (c)
other companies may report Revenue
ex-TAC or similarly titled
measures but calculate them
differently, which reduces their
usefulness as a comparative
measure. Because of these and other
limitations, you should consider
Revenue ex-TAC and Revenue,
Traffic Acquisition Costs and
Revenue ex-TAC by Region alongside
our other U.S. GAAP financial
results, including revenue. The
above table provides a
reconciliation of Revenue ex-TAC
to revenue and Revenue ex-TAC by
Region to revenue by region.
View original content:http://www.prnewswire.com/news-releases/criteo-reports-results-for-the-second-quarter-2019-and-announces-a-new-80-million-share-repurchase-program-300893638.html
SOURCE Criteo S.A.
