Criteo 101 Investor Presentation April/May 2019
Safe harbor statement This presentation contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, projections, competitive position, industry environment, potential growth opportunities, potential market opportunities and the effects of competition and other actions by our counterparties. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation, and nothing in this presentation should be regarded as a representation by any person that these beliefs or assumptions will take place or occur. You should read the Company’s most recent Annual Report on Form 10-K filed on March 1, 2019, including the Risk Factors set forth therein and the exhibits thereto, as well as future filings and reports by the Company, completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix slides. 2 • 2 •
Stock information and key financials Ticker: CRTO 2018 Financials • Revenue: $2,300M, (1%) at cc 3 Stock Exchange: NASDAQ Global Market • Revenue ex-TAC: $966M, +2% at cc CUSIP: 226718104 • Adjusted EBITDA: $321M, +0% at cc Shares Issued 1 : 66.1M • Adj. EBITDA margin: 33% of Revenue ex-TAC Stock Ownership 2 : • Free Cash Flow: $135M, 42% of adj. EBITDA Founders, Idinvest & Yahoo! Japan NEOs, 0.8% Management & Q1 2019 Revenue ex-TAC breakdown Employees 15.0% New solutions 9% Free float 84.3% Core solution 91% 1 As of March 31, 2018 2 On a fully-diluted basis, as of March 31, 2018, based on 72.5 M fully diluted shares. 3 • 3 • 3 At constant currency
A global company with scale Ads served in 2018 Clients Criteos in R&D, tech & business intelligence Sales transactions analyzed in LTM Employees Criteo IDs Countries Offices worldwide 4 •
Management team Jean-Baptiste Rudelle Benoit Mollie Spilman Dan Teodosiu Executive Fouilland Chief Operating Chief Chairman and Chief Financial Officer, 50 Technology Co-Founder, 48 Officer, 53 Millenial Media, Officer, 51 K-Mobile, SAP, Yahoo!, Google, Lucent, Business Advertising.com, Microsoft, Roland Berger Objects Time Warner Hewlett-Packard Ryan Damon EVP, General Denis Collin Counsel, 45 EVP, People Riverbed and Chief of Isabelle Leung-Tack Technology, Staff, 50 VP, Global Charles Schwab, Alcatel, Communications, 45 Gunderson Nokia, Huawei, Dettmer IBM Microsoft 5 • 5 •
Solutions built on key assets Data Technology Scale Openness 6 • 6 •
Our business model has strong attributes Attractive Direct 211 >70% Direct relationships Net client additions per quarter 1 with clients 2 Sticky Open budgets 74% ~90% Differentiated in Marketing Client retention rate 3 Of Revenue ex-TAC from uncapped budgets 4 1 On average over the last four quarters through Q1 2019 2 Last twelve months to Q1 2019; Criteo Marketing Solutions 3 Quarterly retention rate for all solutions combined – close to 90% for 36 consecutive quarters 4 On average over the last four quarters through Q1 2019; Criteo Marketing Solutions. Represents uncapped budgets of our clients, which are either contractually uncapped or so large 7 • 7 • that the budget constraint does not restrict ad buys
Market & Trends
Digital advertising’s share of global ad budgets continues to grow 50% 40% 2018 2020 9 • 9 • Source: Zenith Advertising Expenditures Forecast
Digital ad spend has long overtaken TV ad spend Digital $300B TV $0B 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 10 • 10 • Source: MAGNA | Data for 2017 and beyond are forecasts – Created with Datawrapper
Paid Display is the #1 Ad Spend category globally Marketing Budget Allocation by Activities, N=901 Paid Display 9% 16% Social Media Marketing 9% Traditional Marketing (1) Email Marketing 9% 14% Content Marketing SEO (2) 9% Search Advertising (PPC) 13% Landing Page/Website 10% Affiliate Marketing 10% Source: Criteo & Euromonitor, State of Ad Tech 2019 (1) Print, Direct Mail, TV, Radio Ads 11 • 11 • (2) Search Engine Optimization
Mobile marches on Northern Europe and Japan are mobile leaders. Sweden 60% New Zealand 44% Norway 57% Austria 44% United Kingdom 55% Switzerland 43% Japan 55% Brazil 43% Denmark 51% Taiwan 42% Germany 50% Italy 41% Finland 49% United States 39% Netherlands 49% France 39% Spain 48% Belgium 38% South Korea 47% Canada 33% Turkey 46% Poland 33% Australia 46% Russia 30% 12 • 12 • Source: Criteo, Q2 2018. Base: sales weighted aggregate, Apps excluded (see Methodology).
The open Internet offers significant opportunity Time Spent Digital Ad Spend 70 % 30 % 50 % 50 % Open Internet Google/Facebook 13 • 13 • Based on Nielsen US DCR trends, eMarketer, ExchangeWire, IDC
Vision
O U R V I S I O N : To be the leading advertising platform for the open internet 15 • 15 •
The open Internet offers multiple benefits to advertisers & publishers Control Neutrality Choice Transparency of data We have no Advertisers and Advertisers and conflicting Advertisers and publishers choose publishers interests with publishers keep which partners to determine how to advertisers and control of their work with and how measure success publishers own data 16 • 16 •
Our open internet vision delivers benefits for all Consumers 1.5B+ Experience Criteo IDs Consent Publishers Advertisers 3,700+ $800B+ Publishers Annual Performance connected to Demand ecommerce Criteo Direct sales Bidder Automation Relevance 19,000+ And 350+ Advertisers Apps Control Transparency Incl . 1,000+ Brands 17 • 17 •
Criteo Platform
Criteo Platform delivers advertising and monetization opportunities Marketing Solutions Retail Media Advertisers Retailers Brands Web App Store Awareness Campaigns Supply-side Buy-side Consideration Campaigns Advertising Advertising Technology Technology Conversion Campaigns Criteo Platform 19 • 19 •
Fueled by a unique commerce data set and powered by AI Marketing Solutions Retail Media Advertisers Retailers Brands Web App Store Awareness Campaigns Supply-side Buy-side Advertising Advertising Consideration Campaigns Technology Technology Conversion Campaigns Product AI Engine Lookalike Finder 1 DCO+ Predictive Bidding Recommendations $800B+ 1.5B+ 120+ 4.5B+ Shopper Graph eCommerce Sales Intent signals/shopper Products Criteo IDs 20 • 20 • 1 Dynamic Creative Optimization+
Criteo Marketing Solutions Full-funnel capability addressing the entire customer journey Awareness Consideration Conversion Generate interest in your Get people to consider your Encourage interested Marketing Goals products or services products or services people to purchase Brand Awareness Traffic: Web, App Conversion: Web, App Ad Objectives Video Views App Installs Store Conversions Reach Visits Optimization Conversions Views Installs 21 • 21 •
Criteo Marketing Solutions Objectives and Campaign Types replace CDR, CCA, CAM, and Manage Ad Criteo Marketing Solutions Campaign examples Marketing Goals Objective Dynamic Customer Audience Manage* Retargeting Acquisition Match Web traffic campaign for new customers, Web Traffic visitors or existing customers App traffic campaign for app users or CONSIDERATION App Traffic existing customers App Installs campaign for existing web App Installs visitors or new users Web conversion campaign for new Web Conversions customers, visitors or existing customers CONVERSION App conversion campaigns for app users App Conversions or existing customers 22 • 22 • *Acquired in November 2018
Recommend
More recommend
