Investor Presentation Q1 2019 Earnings 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 belie fs 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 •
Investment thesis Large market Clear vision Proven Attractive Competitive moats opportunity track-record financial profile Digital advertising Be the leading Technology Plan to return Large client base is large and advertising platform to growth Scale ~90% client retention growing fast for the open Internet High profitability for all solutions Openness combined Strong cash flow 3 • 3 •
O U R V I S I O N : To be the leading advertising platform for the open internet 4 • 4 •
The open Internet offers multiple benefits to advertisers & publishers Control Neutrality Transparency Choice 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 5 • 5 •
Our open internet vision delivers benefits for all Consumers 1.5B+ Experience Criteo IDs Consent Publishers Advertisers 3,700+ $800B+ Publishers Annual Performance Demand connected to ecommerce Criteo Direct sales Bidder Automation And Relevance 19,000+ 135 Advertisers App Developers Control Transparency Incl . 1,000+ Brands 6 • 6 •
Direct relationships with many premium commerce and brand clients 7 • 7 •
Extensive supply partnerships ensures audience access Exchange partners Closed Direct partnerships environments Long-tail & emerging formats 3500+ Premium publishers Additional Reach Flexible buying technology: RTB/S2S, Criteo direct bidder, SDK, API • Any relevant creative formats/environment: IAB, Native, In-App, Video, Google AMP • 8 • 8 •
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 9 • 9 •
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 10 • 10 • 1 Dynamic Creative Optimization+
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 11 • 11 •
Retail Media Technology for retailer and brand marketers to achieve their objectives SUPPLY RETAILERS Supply-side Advertising Technology ‘Monetization’ Awareness Consideration Conversion Sargento Swiss Cheese Slices $3.79 Standard Commerce Display Sponsored Products Flexible range of targeting and creative options BRANDS & AGENCIES Buy-side Advertising Technology ‘Sales Attribution’ DEMAND 12 • 12 •
Full self-service campaign workflow API and managed service options Analytics & Insights Campaign Creation & Optimization 13 • 13 •
We have strong core competencies Scale Technology Openness 14 • 14 •
Our growth strategy is based on two strong pillars Grow the customer base Increase our value for clients and partners • • Evolve go-to-market strategy to gain large Enhance AI/Deep Learning technology and midmarket clients in a scalable way • Grow and leverage Criteo Shopper Graph • Gain and retain clients through • Enhance self-service capabilities our self-service platform • Expand Marketing Solutions & Criteo Retail Media • Add new brand and retailer clients globally • Broaden supply of quality inventory 15 • 15 •
Our company transformation supports our strategic goals Further strengthening the leading advertising platform for the open Internet Deliver Solutions on Adapt Further Broaden our Self-Service, API or Go-to-Market Suite of Solutions Managed-Service 16 • 16 •
We invest in growing areas in digital advertising – and beyond • • Build flexible and modular client platform • Complete expansion of solution suite • • Leverage strong growth of apps • • • Store advertising 17 • 17 • * Prospective
A go-to-market approach to best serve our clients at scale Objectives • Adapt sales organization to a multi-solution offering 1 • 2 Provide the right level of service to each client segment 3 • Scale operations and enhance profitability Client tiering Telesales Consultative sales Self-service platform Large Upper Mid- Lower Mid- Clients Market Market B C D E F A Monthly $200K+ $50K+ $20K+ $10K+ $5K+ <$5K ad spend Highly customized service Efficient, high quality, scalable and automated service and proactive insights/proposals to the highest number of clients 18 • 18 •
We are working to sell our new solutions in a more scalable way Execution delays make us take a more modest view on 2019 growth 2. Accelerate demand-generation 1. Accelerate sales growth of new solutions programs for midmarket • Adapt Sales & Operations organization • Third-party sales channels • Hire more sales specialists • Ecommerce Platform Partners • Increase training of sales teams • Lead-generation programs Early 2020 Early 2020 19 • 19 •
2019 is another transition year with increased focus on profitability Maintain our 2019 profitability outlook and will seek to increase it in 2020 More scalable way Maintain 2019 Increased focus on • to sell entire profitability outlook effective cost product suite management Target higher margin • in 2020 20 • 20 •
Key Figures – Q1 2019 • Revenue ex-TAC was • , with retention Adj. EBITDA was , at for all solutions Free Cash Flow was combined • Revenue ex-TAC from • represented now deployed of total Revenue ex-TAC, growing yoy with large publishers and app developers • Criteo employees across 31 offices globally 21 • * At constant currency
Regional performance – Q1 2019 Q1 2019 Revenue ex-TAC Q1 2019 Revenue ex-TAC mix by Region Growth* by Region +8% Americas APAC 24% ( +8% U.S. ) Americas 37% -2% EMEA +3% APAC EMEA 39% 22 • 22 • * At constant currency
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