Criteo reported strong earnings results for the third quarter of 2024, having the retail media model at the core of its ongoing transformation into a Commerce Media powerhouse. With the approach of the year-end holidays, Criteo remains confident in the future of its business, with a double-digit growth expectation and margin expansion for this year
Investments in AI are at the heart of Criteo's transformation strategy, given that the continuous performance enhancements of the company driven by AI have unlocked additional budgets across its portfolio. This includes the Commerce Audiences solution, that takes advantage of deep learning models to recognize patterns among types of consumers, shopping journeys and touchpoints, in addition to testing the creative GenAI technology, that can enhance product images and optimize click-through rates
Overview of financial results
- In constant currency, the ex-TAC contribution for the third quarter increased by 9%, surpassing the organic growth of 8% from the third quarter of last year
- Strong performance in retail media, with an increase of 23%, and continuous growth in Performance Media, with an increase of 5%
- The adoption of Criteo's Commerce Audiences solution increased by 30%
- The adjusted EBITDA guidance range for 2024 has increased to a range of 32% to 33%
Continued momentum in retail media
- Criteo continues to expand its market share in retail media, evidenced by the increase in spending on activated media, that rose 29% compared to the previous year, surpassing the current market growth
- Criteo expects to reach the upper margin of the retail media guidance, from 20% to 22%, for FY24
- Record quarterly performance, with US$ 130 million in agency spending going through Commerce Max, only in the USA
New clients provide opportunities for future growth
- Criteo doubled the number of brands and media spending activated in the last two years, with an increase to 3.100 brands and US$ 1,5 billion
- The expansion includes JCPenney, Office Depot, Metro AG, among others
- Criteo is expanding its leadership in Commerce Media more broadly through a partnership with United Airlines' media network, a Kinective Media
- The company is leveraging Criteo's Commerce Grid SSP for first-party audience curation and making them available for access through any DSP
- Criteo continues to map out strategic collaboration with Microsoft Advertising as its preferred onsite partner, waiting for a transition of various retailers to the platform in 2025
