Criteo Reports Another Strong Quarter, With Revenue Increasing 33%

Criteo announced a 33% increase in year-over-year revenue for second-quarter 2017 Wednesday, representing total revenue of $542 million. Notably, the company’s cash flow from operating activities increased 214% to $60 million.

While overall numbers beat estimates, net income decreased by 44% to $8 million, from $13 million in second-quarter 2016. This was largely a result of the accounting impact of the acquisition of HookLogic, and restructuring costs in China.

Nevertheless, Eric Eichmann, Criteo CEO, told Digital News Daily the company is continually looking for acquisition opportunities in the commerce marketing technology space. “We’ve looked at so many companies, but finding the ones that will effectively complement our business is harder to do.” Eichmann preferred not to comment on any upcoming product or acquisition announcements.

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“We tend to shy away from defining ourselves as purely ad tech,” said Eichmann. “We are a commerce marketing company, using robust data to empower brands to improve their marketing strategies.”

In an environment that has seen companies like Rubicon Project and Rocket Fuel fall from grace, Eichmann points to Criteo’s focus on its technology and data as a major reason for continued growth: “we’re not about finding ad buyers and sellers -- we focus on technology.” Criteo has succeeded in navigating the whirlwind of ad-tech advancements from header bidding to ad blocking, by focusing on their core competencies.

Eichmann noted that as Amazon positions itself as a competitor in almost all digital brand sales initiatives, Criteo looks to counter by emboldening brands by effectively using data to make the most of their digital opportunities.

Looking ahead, Criteo is currently testing new product initiatives including app installs, CRM onboarding for brands and retailers and “store-to-web” retargeting ad campaigns.

Revenue excluding revenue ex-traffic-acquisition costs was up 32% to $220 million, representing 41% of overall revenue.

Adjusted net income per share was $0.39, an 18% increase year-over-year.

"We delivered accelerating profitable growth and increased cash flow, while investing in the business," stated Benoit Fouilland, Criteo CFO.

On the business development side, Criteo announced a net total of 950 new clients, which gives the company a base of over 16,000 commerce and brand clients, including a 90% client retention rate.

The marketing technology company’s shares were trading up 4.5% premarket, and while they opened over a dollar above yesterday’s close, they are down 4% as of 11am.

Criteo (NASDAQ: CRTO) shares are trading at around $50, up 22.44% year-to-date.

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