Strong growth in retail media drives Criteo's transformation into Commerce Media powerhouse

Criteo reported robust earnings results in the third quarter of 2024, with retail media at the core of its ongoing transformation into a Commerce Media powerhouse.As the holidays approach, Criteo remains confident in the future of its business, with double-digit growth and margin expansion expected this year.

Investments in AI are at the heart of Criteo's transformation strategy, with ongoing AI-driven enterprise performance enhancements unlocking additional budgets across its portfolio.This includes the Commerce Audiences solution, which leverages deep learning models to recognize patterns across consumer types, shopping journeys and touchpoints, as well as testing GenAI creative technology that can enhance product images and optimize click-through rates.

Financial results overview

• At constant currency, the third-quarter ex-TAC contribution increased by 9%, outpacing the organic growth of 8% from the third quarter of last year
• Strong retail media performance, with 23% increase, and continuous growth in Performance Media, with 5% increase
• Criteo's Commerce Audiences solution adoption increased by 30%
• The EBITDA guidance margin adjusted for 2024 has increased to a range of 32% to 33%

Continued boost in retail media

• Criteo continues to expand its retail media market share, evidenced by increased media spend, which rose 29% from a year earlier, outpacing current market growth
• Criteo expects to reach the upper margin of the retail media guidance, from 20% to 22%, for the FY24
• Record quarterly performance, with US$ 130 million in agency spending going through Commerce Max in the US alone.

New customers provide opportunities for future growth

• Criteo has doubled the number of brands and media spend enabled over the past two years, with an increase to 3,100 brands and US$ 1.5 billion
  • The expansion includes JCPenney, Office Depot, Metro AG, and more
• Criteo is extending its leadership in Commerce Media more comprehensively through a partnership with United Airlines media network Kinective Media
  • The company is leveraging Criteo's Commerce Grid SSP to curate first-party audiences and make them available for access through any DSP
• Criteo continues to map strategic collaboration with Microsoft Advertising as its preferred onsite partner, expecting a transition from multiple retailers to the platform in 2025