Criteo S.A 10-Q for FY2022 Q1

Criteo S.A. (CRTO)

10-Q 2022-05-05 For: 2022-03-31

Added on April 08, 2026

About this 10-Q

Criteo S.A filed this 10-Q on May 5, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $510.57M; down 5.6% from $541.08M a year earlier
Net income: $20.59M; down 8.1% from net income of $22.41M a year earlier
Diluted EPS: $0.32; down 8.6% from $0.35 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


France			Not Applicable
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)

32 Rue Blanche	Paris	France	75009
(Address of principal executive offices)			(Zip Code)


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☐
Emerging growth company	☐


PART I	FINANCIAL INFORMATION	2
Item 1	Unaudited Financial Statements as of March 3 1 , 202 2	2
	Condensed Consolidated Statements of Financial Position (Unaudited)	2
	Condensed Consolidated Statements of Income (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	4
	Condensed Consolidated Statements of Shareholder's Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3	Quantitative and Qualitative Disclosures About Market Risk	51
Item 4	Controls and Procedures	52
PART II	OTHER INFORMATION	53
Item 1	Legal Proceedings	53
Item 1A	Risk Factors	53
Item 6	Exhibits	55
Signatures		56


	Notes	March 31, 2022		December 31, 2021
		(in thousands)
Assets
Current assets:
Cash and cash equivalents	3	$	589,343	$	515,527
Trade receivables, net of allowances of $48.7 million and $45.4 million at March 31, 2022 and December 31, 2021, respectively	4	479,636		581,988
Income taxes		10,131		8,784
Other taxes		72,869		73,388
Other current assets	5	45,460		34,182
Marketable securities - current portion	3	31,387		50,299
Total current assets		1,228,826		1,264,168
Property, plant and equipment, net		129,164		139,961
Intangible assets, net		79,441		82,627
Goodwill		328,125		329,699
Right of use assets - operating lease	7	110,784		120,257
Marketable securities - non current portion	3	—		5,000
Non-current financial assets		6,855		6,436
Deferred tax assets		32,145		35,443
Total non-current assets		686,514		719,423
Total assets		$	1,915,340	$	1,983,591

Liabilities and shareholders' equity
Current liabilities:
Trade payables		$	374,601	$	430,245
Contingencies	14	2,864		3,059
Income taxes		7,450		6,641
Financial liabilities - current portion	3	3,481		642
Lease liability - operating - current portion	7	31,373		34,066
Other taxes		58,780		60,236
Employee - related payables		93,817		98,136
Other current liabilities	6	40,149		39,523
Total current liabilities		612,515		672,548
Deferred tax liabilities		2,942		3,053
Defined benefit plans	8	4,638		5,531
Financial liabilities - non current portion	3	354		360
Lease liability - operating - non current portion	7	84,692		93,893
Other non-current liabilities		7,676		9,886
Total non-current liabilities		100,302		112,723
Total liabilities		712,817		785,271
Commitments and contingencies
Shareholders' equity:
Common shares, €0.025 par value, 65,905,394 and 65,883,347 shares authorized, issued and outstanding at March 31, 2022, and December 31, 2021, respectively.		2,150		2,149
Treasury stock, 5,327,644 and 5,632,536 shares at cost as of March 31, 2022 and December 31, 2021, respectively.		(137,330)		(131,560)
Additional paid-in capital		740,515		731,248
Accumulated other comprehensive income (loss)		(56,501)		(40,294)
Retained earnings		619,641		601,588
Equity-attributable to shareholders of Criteo S.A.		1,168,475		1,163,131
Non-controlling interests		34,048		35,189
Total equity		1,202,523		1,198,320
Total equity and liabilities		$	1,915,340	$	1,983,591


		Three Months Ended
	Notes			March 31, 2022		March 31, 2021
			(in thousands, except share per data)

Revenue	9			$	510,567	$	541,077

Cost of revenue:
Traffic acquisition costs				(293,650)		(327,667)
Other cost of revenue				(32,893)		(34,712)

Gross profit				184,024		178,698

Operating expenses:
Research and development expenses				(34,027)		(31,697)
Sales and operations expenses				(88,999)		(79,354)
General and administrative expenses				(33,336)		(33,428)
Total operating expenses				(156,362)		(144,479)
Income from operations				27,662		34,219
Financial and Other income (expense)	11			4,030		(718)
Income before taxes				31,692		33,501
Provision for income taxes	12			(10,414)		(10,051)
Net income				$	21,278	$	23,450

Net income available to shareholders of Criteo S.A.				$	20,587	$	22,406
Net income available to non-controlling interests				$	691	$	1,044

Weighted average shares outstanding used in computing per share amounts:
Basic	13			60,738,299		60,741,674
Diluted	13			63,613,550		64,077,409

Net income allocated to shareholders per share:
Basic	13			$	0.34	$	0.37
Diluted	13			$	0.32	$	0.35


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


	Share capital		Treasury Stock		Additional paid-in capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Equity - attributable to shareholders of Criteo S.A.	Non controlling interest	Total equity
	Common shares		Shares
	(in thousands, except share amounts )
Balance at December 31, 2020	66,272,106	$2,161	(5,632,536)	$(85,570)	$693,164	$16,027	$491,359	$1,117,142	$35,545	$1,152,687
Net income	—	—	—	—	—	—	22,406	22,406	1,044	23,450
Other comprehensive income (loss)	—	—	—	—	—	(33,852)	—	(33,852)	(2,502)	(36,354)
Issuance of ordinary shares	119,800	3	—	—	2,148	—	—	2,151	—	2,151
Change in treasury stocks	—	—	34,935	(1,693)	—	—	(3,237)	(4,930)	—	(4,930)
Share-Based Compensation	—	—	—	—	6,710	—	—	6,710	50	6,760
Other changes in equity	—	—	—	—	—	—	—	—	—	—
Balance at March 31, 2021	66,391,906	$2,164	(5,597,601)	$(87,263)	$702,022	$(17,825)	$510,528	$1,109,626	$34,137	$1,143,763


	Share capital		Treasury Stock		Additional paid-in capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Equity - attributable to shareholders of Criteo S.A.	Non controlling interest	Total equity
	Common shares		Shares
	(in thousands, except share amounts )
Balance at December 31, 2021	65,883,347	$2,149	(5,207,873)	$(131,560)	$731,248	$(40,294)	$601,588	$1,163,131	$35,189	$1,198,320
Net income	—	—	—	—	—	—	20,587	20,587	691	21,278
Other comprehensive income (loss)	—	—	—	—	—	(16,207)	—	(16,207)	(1,925)	(18,132)
Issuance of ordinary shares	22,047	1	—	—	319	—	—	320	—	320
Change in treasury stocks(*)	—	—	(119,771)	(5,770)	—	—	(2,534)	(8,304)	—	(8,304)
Share-Based Compensation	—	—	—	—	8,948	—	—	8,948	93	9,041
Other changes in equity	—	—	—	—	—	—	—	—	—	—
Balance at March 31, 2022	65,905,394	$2,150	(5,327,644)	$(137,330)	$740,515	$(56,501)	$619,641	$1,168,475	$34,048	$1,202,523


	Held-to-maturity		Available-for-sale
	March 31, 2022

	(in thousands)
Due in one year	$	10,000	$	21,385
Due in one to five years	$	—	$	—
Total	$	10,000	$	21,385


	2022		2021

	(in thousands)
Balance at January 1	$	(45,391)	$	(16,068)

Allowance for credit losses	(7,291)		(2,759)
Reversal of provision	2,633		3,306
Currency translation adjustment	1,391		658
Balance at March 31	$	(48,658)	$	(38,694)


	Three Months Ended
	March 31, 2022						March 31, 2021
	Offices		Data Centers		Total		Offices		Data Centers		Total
	(in thousands)
Lease expense	$	4,409	$	5,207	$	9,616	$	6,543	$	6,398	$	12,941
Short term lease expense	151		3		154		76		7		83
Variable lease expense	50		5		55		144		73		217
Sublease income	(172)				(172)		(188)		—		(188)
Total operating lease expense	$	4,438	$	5,215	$	9,653	$	6,575	$	6,478	$	13,053


	Projected benefit obligation
	(in thousands)
Projected benefit obligation present value at January 1, 2021	$	6,167
Service cost	1,324
Interest cost	51
Actuarial losses (gains)	(1,543)

Currency translation adjustment	(468)
Projected benefit obligation present value at December 31, 2021	$	5,531
Service cost	276
Interest cost	19
Actuarial losses (gains)	(1,086)

Currency translation adjustment	(102)
Projected benefit obligation present value at March, 31, 2022	$	4,638


	Three Months Ended	Year ended
	March 31, 2022	December 31, 2021
Discount rate (Corp AA)	2.25%	1.40%
Expected rate of salary increase	5%	5%
Expected rate of social charges	49% - 50%	49% - 50%
Expected staff turnover	—% - 17.8%	—% - 17.8%
Estimated retirement age	Progressive table	Progressive table
Life table	TH-TF 2000-2002 shifted	TH-TF 2000-2002 shifted


	Marketing Solutions		Retail Media		Total
For the three months ended	(in thousands)

March 31, 2022	$	463,888	$	46,679	$	510,567
March 31, 2021	$	483,190	$	57,887	$	541,077


		Three Months Ended
		March 31, 2022		March 31, 2021
	(in thousands)
Net income		$	21,278	$	23,450
Non-cash and non-operating items		34,726		30,017
- Amortization and provisions		26,611		17,225

- Net gain or (loss) on disposal of non-current assets		9		3,945
- Equity awards compensation expense (1)		9,489		7,215

- Change in deferred taxes		2,868		4,998
- Change in income taxes		(432)		(3,379)
- Other		(3,819)		13
Changes in working capital related to operating activities		18,926		23,895
- (Increase) / Decrease in trade receivables		92,738		47,226
- Increase / (Decrease) in trade payables		(49,672)		(10,640)
- (Increase) / Decrease in other current assets		(18,947)		(5,050)
- Increase/ (Decrease) in other current liabilities		(3,182)		(4,527)
- Change in operating lease liabilities and right of use assets		(2,011)		(3,114)

Cash from operating activities		74,930		77,362
Acquisition of intangible assets, property, plant and equipment		(10,857)		(11,953)
Change in accounts payable related to intangible assets, property, plant and equipment		5,293		(1,827)

Change in other non-current financial assets		22,489		(3,252)
Cash (used for) from investing activities		16,925		(17,032)
Proceeds from borrowings under line-of-credit agreement		78,513		—
Repayment of borrowings		(78,513)		(182)
Proceeds from exercise of stock options		271		2,074
Repurchase of treasury stocks		(8,304)		(4,930)
Change in other financial liabilities		6,666		(378)
Cash (used for) from financing activities		(1,367)		(3,416)
Effect of exchange rates changes on cash and cash equivalents		(16,672)		(24,865)
Net increase in cash and cash equivalents		73,816		32,049
Net cash and cash equivalents at beginning of period		515,527		488,011
Net cash and cash equivalents at end of period		$	589,343	$	520,060

Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds		(7,978)		(8,432)


	OSA/BSPCE	RSU/PSU	BSA	Total
Balance at January 1, 2022	570,801	5,299,356	343,775	6,213,932
Granted	—	726,521	—	726,521
Exercised (OSA/BSPCE/BSA)	(22,047)	—	—	(22,047)
Vested (RSU)	—	(184,443)	—	(184,443)
Forfeited	(23,420)	(339,704)	—	(363,124)
Expired	—	—	—	—
Balance at March 31, 2022	525,334	5,501,730	343,775	6,370,839


	OSA/BSPCE		RSU	BSA

Number outstanding	525,334		5,501,730	343,775
Weighted-average exercise price	€	19.41	NA	€	15.12
Number vested	256,600		—	278,790
Weighted-average exercise price	€	25.21	NA	€	15.75
Weighted-average remaining contractual life of options outstanding, in years	5.54		NA	5.54


	Three Months Ended
	March 31, 2022								March 31, 2021
	(in thousands)
	R&D		S&O		G&A		Total		R&D		S&O		G&A		Total
RSUs	$	(3,968)	$	(2,611)	$	(2,404)	$	(8,983)	$	(2,496)	$	(1,649)	$	(2,288)	$	(6,433)
Share options / BSPCE	—		45		(103)		(58)		—		(105)		(222)		(327)
Total share-based compensation	(3,968)		(2,566)		(2,507)		(9,041)		(2,496)		(1,754)		(2,510)		(6,760)
BSAs	—		—		(448)		(448)		—		—		(455)		(455)
Total equity awards compensation expense	$	(3,968)	$	(2,566)	$	(2,955)	$	(9,489)	$	(2,496)	$	(1,754)	$	(2,965)	$	(7,215)


	Provision for employee-related litigation		Other provisions		Total
	(in thousands)
Balance at January 1, 2022	$	1,117	$	1,942	$	3,059
Increase	17		—		17
Provision used	(79)		—		(79)
Provision released not used*	(65)		—		(65)
Currency translation adjustments	(31)		(37)		(68)

Balance at March 31, 2022	$	959	$	1,905	$	2,864
- of which current	959		1,905		2,864


	Americas		EMEA		Asia-Pacific		Total
For the three months ended:	(in thousands)

March 31, 2022	$	194,847	$	193,954	$	121,766	$	510,567
March 31, 2021	$	203,900	$	212,096	$	125,081	$	541,077


					Of which						Of which
	Holding		Americas		United States		EMEA		Asia-Pacific		Japan		Singapore		Total
(in thousands)

March 31, 2022	$	88,303	$	83,755	$	82,504	$	5,619	$	30,928	$	12,001	$	14,824	$	208,605
December 31, 2021	$	97,627	$	84,954	$	83,843	$	6,036	$	33,971	$	14,159	$	15,650	$	222,588


	March 31, 2022		December 31, 2021

	(in thousands)
Cash and cash equivalents	$	589,343	$	515,527
Total assets	1,915,340		1,983,591
Trade receivables, net of credit losses	479,636		581,988
Total financial liabilities	3,835		1,002
Total liabilities	712,817		785,271
Total equity	$	1,202,523	$	1,198,320


	Three Months Ended						% change
	March 31, 2022			March 31, 2021			2022 vs 2021

	(in thousands, except percentages)
Traffic acquisition costs*	$	(293,650)		$	(327,667)		(10)%
Other cost of revenue	$	(32,893)		$	(34,712)		(5)%
Total Cost of Revenue	$	(326,543)		$	(362,379)		(10)%
% of revenue	(64)		%	(67)		%
Gross profit %	36		%	33		%


	Three Months Ended
Segment			March 31, 2022		March 31, 2021		YoY Change		YoY Change at Constant Currency

Revenue		(amounts in thousands, except percentages)
Marketing Solutions			$	463,888	$	483,190	(4)	%	1	%
Retail Media			46,679		57,887		(19)	%	(18)	%
Total			510,567		541,077		(6)	%	(1)	%

Contribution ex-TAC (1)
Marketing Solutions			186,088		192,317		(3)	%	2	%
Retail Media			30,829		21,093		46	%	48	%
Total			216,917		213,410		2	%	6	%


Period	Total Number of Shares Purchased(1)	Average Price Paid per Share(2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(1)
January 1 to 31, 2022	—	—		—	—
February 1 to 28, 2022	—	—		—	—
March 1 to 31, 2022	303,342	$	27.37	303,342	271,695,646
Total	303,342			303,342	—


		CRITEO S.A.
		(Registrant)

	By:	/s/ Sarah Glickman
Date: May 5, 2022	Name:	Sarah Glickman
	Title:	Chief Financial Officer
		(Principal financial officer and duly authorized signatory)


/s/ Megan Clarken
Megan Clarken
Chief Executive Officer (Principal Executive Officer)