Criteo 101. Investor Presentation March 2018

Transcription

1 Criteo 101 Investor Presentation March 2018

2 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. 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. You should read the Company s most recent Annual Report on Form 10-K filed on March 1, 2018, including the Risk Factors set forth therein and the exhibits thereto, 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

3 Stock information and key financials Ticker: Stock Exchange: CRTO NASDAQ Global Market 2017 Financials Revenue: $2,297M, +27% at cc** CUSIP: Shares outstanding: 66.1M Stock Ownership*: Revenue ex-tac: $941M, +29% at cc Adjusted EBITDA: $310M, +35% at cc Adj. EBITDA margin: 33% of Revenue ex-tac Founders, NEOs, Management & Employees, 13.1% Idinvest & Yahoo! Japan, 2.2% Free float, 84.7% 3 * On a fully-diluted basis, as of Dec 31, 2017, based on 73.7M fully diluted shares. ** At constant currency

4 A global company with scale Clients Ads served in 2017 Sales transactions analyzed in 2017 Criteos in R&D, tech & business intelligence User identifiers matched in the Criteo Shopper Graph Employees Countries Offices worldwide 4

5 Management team Jean-Baptiste Rudelle Executive Chairman and Co-Founder, 48 K-Mobile, Lucent, Roland Berger Eric Eichmann Chief Executive Officer, 50 Living Social, Rosetta Stone, McKinsey & Co. Benoit Fouilland Chief Financial Officer, 53 SAP, Business Objects Mollie Spilman Chief Operating Officer, 50 Millenial Media, Yahoo!, Advertising.com, Time Warner Jonathan Opdyke Chief Strategy Officer, 41 HookLogic, Xerox, Beyond Interactive Patrick Wyatt Senior Vice President Product Management, 35 Yahoo!, Estin & Co. Dan Teodosiu Chief Technology Officer, 51 Google, Microsoft, Hewlett-Packard Tom Aurelio Executive Vice President, Human Resources, 52 Priceline, GE, Symantec, CheerNetworks 5

6 Our vision Build the highest performing and open Commerce Marketing Ecosystem Connect shoppers to the things they need and love Deliver performance at scale to participating retailers and brands 6

7 Commerce marketing is deeply rooted in our DNA Technology Performance Scale Global Presence 7

8 Onetag Direct Bidder TOP! Kinetic Design 600 TB Passback We are an enabler and a pioneer 2008 First CPC model in display We brought performance-based personalized marketing to display in 2008 We have since pioneered the industry in many ways App advertising Adaptive Revenue Universal Optimizer Match Apple-compliant solution Real-time Creative Optimization AOV Optimizer Facebook Dynamic Ads Engine Optimized Segments Identity Graph Privacy by Design Conversion Rate Native Ads Optimizer of Data analyzed everyday Travel Segments in Engine Dynamic product banners App Deep linking 4.5B products imported from merchants everyday Interest Map Mobile Ad Formats Product Category level CPC bidding Largest Hadoop cluster in Europe Sizeless creatives Daily RTB: 55bn bid requests,1.2bn wins Facebook Exchange Unique User Value Prediction 8

9 Measurable performance is what we care about 2,800 employees focus on client sales and profits as key metrics of success Established post-click attribution R&D and Product Teams Client Service Teams CPC model Maximize Client Sales Continuous tracking of sales Transparent performance information in 24/7 client interface Constant optimization of campaigns 9

10 We have built a large network with powerful effects 1.2B+ individual shoppers matched 18,000 commerce and brand clients Thousands of publishers Machine-learning technology 10

11 Three key assets support our Commerce Marketing Ecosystem $29B Annual post-click sales 6x Shopper Engagement* Mass Personalization Technology 17,000+ Retailers & Commerce ~1,000 Brands Commerce Data & Shopper Graph Brand Funding $600B+ Annual online sales 11 1,000 s Direct publishers Consumer Reach 1.2B+ Individual shoppers matched in our Shopper Graph * Our average click-through rate, or the ratio of clicks generated by our advertisements over the number of advertising impressions we purchased ("CTR"), was over 0.84% in 2017, which represents a factor of over six times the average click-through rate on Standard Media of 0.14%, as measured by the DoubleClick display benchmark tool for March-April 2017.

12 We are a global company San Francisco 2014 Palo Alto 2009 Los Angeles 2015 Ann Arbor 2016 Chicago 2012 Toronto 2015 Boston 2012 New York 2011 Miami 2015 Amsterdam 2011 London 2008 Paris 2005 Madrid 2014 Milan 2012 Barcelona 2014 Stockholm 2010 Grenoble 2014 Munich 2010 Dubai 2015 Moscow 2014 Istanbul 2015 New Delhi 2016 Beijing 2013 Shanghai 2016 Seoul 2010 Tokyo 2011 Osaka 2014 Singapore 2013 Campaigns in countries offices in countries nationalities São Paulo 2011 Sydney

13 Market and Trends

14 Web and mobile have changed shopping behavior of commerce transactions involve mobile of shoppers showroom and webroom shoppers visit 2+ retailer sites when shopping online 14

15 Success factors have changed for retailers and brands YESTERDAY TODAY Great real estate Merchandising Shopper Data Mass scale Granularity Real-time accessibility Activation of Data Predictive technology Real-time dynamic optimization Reach at scale 15

16 Data-driven marketing is critical for retailers and brands Media Others Technology / AI Brands Others Data Others Offline Online Granular shopper information at massive scale Others 16 Partial, fragmented, unstructured view of the shopper

17 Commerce Marketing is quickly emerging as the next big marketing category Not limited to digital Centers on inspiring people to buy things Measured by performance directly driving sales and profits 17

18 Commerce marketing is our core business Criteo s original technology was a product recommendation engine for retail This engine formed the basis of Criteo Dynamic Retargeting Primarily applied to online commerce: retail, travel and classifieds Expanding to include data cooperative across retailers to build an omni-retailer solution Extending to include offline data for a full omni-channel solution 18

19 We are the leader in Commerce Marketing. Commerce Marketing focuses on inspiring people to buy things and is measured by performance, directly driving sales and profits for marketers.

20 The Criteo Commerce Marketing Ecosystem

21 The building blocks of the Criteo Commerce Marketing Ecosystem Product Portfolio Criteo Customer Acquisition BETA Criteo Dynamic Retargeting Criteo Audience Match BETA Criteo Sponsored Products Privacy by Design Client Platform 24/7 Client Management Center Publisher Network Direct Integration Indirect Integration Media Retailers Real-Time Bidding Platforms Criteo Engine Product Recommendation Predictive Bidding Kinetic Design Privacy by Design Criteo Shopper Graph Identity Graph Interest Map Measurement Network Commerce Data 21

22 Criteo Shopper Graph

23 Criteo Shopper Graph: Massive shopping data fuels our Commerce Marketing ecosystem Three trusted data collectives form the Criteo Shopper Graph Carefully designed using our guiding principles Two-way exchange of data Clear and permission-based usage Highest data security and privacy Value gained exceeds contribution 23

24 Identity Graph: matching of cross device, same device, and online/offline Criteo s advantages Over 13,000 participating clients 3.7B+ identifiers matched and growing Global coverage +10% average uplift Participation Opt-in by sending hashed identifiers via OneTag or App Events SDK Open, transparent, secure, fair Encrypted and double-hashed personal identifiable information (PII) Access at no additional cost 24

25 Interest Map: shopper interest across products Criteo s advantages Access to 4.5B+ products Large consumer reach worldwide Understand performance of product attributes Participation Opt-in to share anonymized data Opt-out to use client data only Open, transparent, secure, fair Data isolated unless opt-in All data anonymized No free riders Contribution capped at 15% of pool Access at no additional cost 25

26 Measurement Network: conversion and sales across retailers Criteo s advantages SKU-level sales attribution for brands across retailers Deterministic measurement Nearly 100 participating retailers Participation When clients work with us, data within and across retailers is aggregated Open, transparent, secure, fair All retailer data anonymized 26

27 Criteo Engine

28 Our Engine solves highly complex problems in real time For each user Client 1 Client 2 Client 3 Client 4 Client 5 Creates Product Creates Recommendation Product Creates Recommendation Product Creates Recommendation Product Recommendation Personalize Personalize d creative Personalize d creative Personalize d creative d creative Unique user Unique value user Unique prediction value user Unique prediction value user prediction value prediction Internal advertiser auction Publisher/ platform bid Custom ad serving Less than 100ms to perform the entire process 600,000+ RTB bids/sec >40,000 ads served/sec 28

29 Product Recommendation accurately recommends the best offer John browses Bomber Jacket on Uniqlo s site Products we show John The Criteo Engine recommends products based on: Campaign goal Visitor s site navigation Recency and frequency of activity Product type, price, and category Most viewed products on Uniqlo s site And much more... 29

30 Predictive Bidding determines the right ad opportunities 7:45 AM 8:00 AM 9:00 AM 12:30 PM 6:00 PM 9:00 PM 11:30 PM User context Product behavior Publisher interaction The right bid for the right placement at the right time 30

31 Kinetic Design delivers perfectly branded ads, optimized for every user 31

32 Publisher Network

33 Publisher Network Direct Integration Indirect Integration Media Retailers Real-time Bidding Platforms 33

34 Client Platform

35 Client Management Center Real-time monitoring and optimization of marketing efforts Insights on performance and budget Granular reporting and attribution across all products in the client s product catalog 35

36 Product Portfolio

37 Criteo Customer Acquisition BETA Benefits Drives maximum ROI with a performance-based acquisition model Increases conversions of relevant new customers Generates significant new revenue What it does Determines ideal new customer profile Identifies new customers based on defined threshold Predicts best places and products to convert Used by leading retailers Availability: Q fashion clients in 4 key markets Q all retail clients in 10 key markets 37

38 How does Criteo Customer Acquisition work? Participating retailers share aggregated shopping and browsing events with the Interest Map, which covers 4.5B products and browsing habits of 1.2B+ monthly shoppers, to qualify new customers New prospective customers within the Criteo Shopper Graph get isolated Each prospective customer is assigned a unique score across all participating retailers based on the ideal customers, that show the likelihood to convert for a given retailer Shoppers with the highest scores are targeted with personalized ads featuring the given retailer s products to drive sales

39 Criteo Dynamic Retargeting Connects across web, mobile, social, and video with relevance Drives traffic from store-to-web 1 and web-to-store 1 Optimizes campaigns to goals with continuous machine-learning Increases mobile app install 1 and engagement Used by leading retailers 39 1 In testing

40 Criteo Audience Match BETA Benefits Drives sales by re-engaging existing shoppers Brings qualified traffic to a retailer s site What it does Delivers personalized ads to drive engaged traffic to a retailer s online store Used by leading retailers Availability: All markets except for Japan 40

41 How does Criteo Audience Match work? CRM data, e.g. from customer in-store loyalty programs, is onboarded into the Identity Graph During onboarding, the CRM data is matched with users already in the Identity Graph Online campaigns with specific objectives reengage those CRM customers that were already found online 41

42 Audience Match supports diverse campaign objectives Top Sellers Seasonal Offline to Online Loyalty Lapsed shoppers Seasonal Buyers Offline Buyers Loyalty Card Holders Audiences that may soon churn Upsell New product offers Cross-Sell Upgrade Bundle Offer Best Candidates for Buying Targeted Cross-Sell Audiences likely to upgrade 42

43 Criteo Sponsored Products Brand manufacturers sponsor native ads across web and app on their retailers online stores Shoppers are retained in the retailer store to buy Drives sales for brand manufacturers and retailers Participating brands 43

44 How does Criteo Sponsored Products work? John searches for coffee makers on a retailer s website John s search triggers sponsored ads on retailer site John s click on sponsored ad leads to product page Measurable sales on retailer site 44

45 Business Model

46 All our products are performance based. We deliver measurable sales and profits for commerce and brand clients.

47 Dynamic Retargeting revenue model Revenue = Clicks x CPC Traffic Acquisition Cost (TAC) = CPM x impressions Revenue ex TAC = Revenues TAC Revenue ex-tac margin: Approx. 40% 47

48 Predicting the right bid for the highest value client Clients CPC x CTR = pcpm (predicted CPM) Clearing Price (CPM) Publishers Client 1 $0.30 x 0.95% = $2.85 Client 2 $0.50 x 0.75% = $3.75 Highest bidder $2.00 Client 3 $0.40 x 0.61% = $2.44 Client 4 We take CPC bids from clients $0.80 x 0.45% = $3.60 We convert those bids into pcpm (predicted CPM) We buy inventory from publishers in real time Bid = CPC pctr pcr paov 48 CPM = Cost per Thousand impressions, CTR = Click-through rate, CR = Conversion rate, AOV = Average Order Value

49 Customer Acquisition revenue model Revenue = Clicks x CPC Traffic Acquisition Cost (TAC) = CPM x impressions Revenue ex TAC = Revenues TAC Revenue ex-tac margin: Approx. 40% 49

50 Audience Match revenue model Revenue = Clicks x CPC Traffic Acquisition Cost (TAC) = CPM x impressions Revenue ex TAC = Revenues TAC Revenue ex-tac margin: Approx. 40% 50

51 Sponsored Products revenue model Revenue = Clicks x CPC Traffic Acquisition Cost (TAC) = Revenue share with Retailer Revenue ex TAC = Revenue TAC Revenue ex-tac margin = 26%-28% 51

52 Our business model has unique attributes Attractive Direct % Net client additions per quarter 1 Direct relationships with clients 2 Sticky Elastic Demand Differentiated in Marketing ~90% Client retention rate 3 77% Of Revenue ex-tac from uncapped budgets On average over the last four quarters through Q Last twelve months to Q4 2017; Excluding Criteo Sponsored Products 3 On average over the last 25 quarters through Q4 2017; All products included 4 On average over the last four quarters through Q Excluding Criteo Sponsored Products. Represents uncapped budgets of our clients, which are either contractually uncapped or so large that the budget constraint does not restrict ad buys

53 Our existing clients consistently increase their spend with us Average revenue per client cohort (quarterly) $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 Client cohorts Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $20,000 $ Number of quarters 53 Excluding Criteo Sponsored Products. This client cohort analysis tracks the quarterly spend of clients since inception of their relationship with Criteo.

54 As a result, a large portion of our business is recurring Revenue per client type 92% 90% 90% 88% 89% Existing clients New clients 54 Includes Criteo Dynamic Retargeting, Criteo Customer Acquisition BETA, Criteo Audience Match BETA and Criteo Sponsored Products. Existing clients in a given year are clients that started working with Criteo prior to that given year. New clients in a given year are clients that started working with Criteo within that given year.

55 Clients

56 Direct relationships with many premium commerce companies and brand manufacturers Commerce: Retail, Travel and Classifieds over 18,000 clients* * 18,118 clients at the end of Q

57 A tiered go to market approach Top-tier comscore sites (typically top-50 or top-100) Min. ~40k UV/month Field sales & account management High value, low volume Longer sales cycles White glove service Local in-market sales teams Inside sales & account management High volume, lower value Shorter sales cycles High degree of automation Regional hubs and satellite offices 57

58 A large opportunity to win new clients 50% Tier 1 penetration ~60,000 addressable clients worldwide in Retail, Travel and Classifieds (excluding CSP) 25% Midmarket penetration 58

59 Publisher Inventory

60 Direct partnerships with high-quality publishers ALL MAJOR PUBLIC EXCHANGES, GLOBAL AND LOCAL PREFERRED ACCESS TO PREMIUM MEDIA INVENTORY PREFERRED ACCESS TO RETAILER INVENTORY 60

61 Three tiered approach to media buying Custom integration Direct Partnership Private Auction RTB Ad Exchanges Open Auction 61

62 Our two-tiered publisher organization 62

63 The publisher environment is constantly evolving Changing consumer behavior Evolving technology Transition to Mobile Social Native In App Multiple Devices Ad Blocking Programmatic Header Bidding 63 Our drives more value for publishers

64 We have always delivered user-friendly ads Our Position Promote acceptable ad programs Invest in native Support an open tracking standard Define standards for retargeting Ad blocking offers an opportunity for players with: The right business model The right technology stack The right expertise in user privacy Premium demand 64

65 Header bidding changes the advertising environment Allows programmatic buyers to bid for premium inventory Impact on Publishers Impact on Programmatic Buyers More bidders should mean higher yields More inventory available for auction Less dependent on a single monetization platform More complex bidding environment can lead to higher costs and less efficiency 65

66 Inventory cost Header bidding creates opportunities for smart players Short-term, temporary changes in the publisher market place More sophisticated buyers like Criteo will get a technology premium BEFORE HB GROWTH OF HB BUYERS ADJUST TO HB Unsophisticated buyers Technology premium Sophisticated buyers 66 Time

67 Criteo Direct Bidder: Direct access to Criteo s unique demand Criteo Direct Bidder (CDB) allows Criteo to bid on publisher inventory directly through the ad server without the need to funnel demand through Supply Side Platforms (SSPs) or exchanges. Benefits for the publisher: all of the Criteo bid goes to the publisher; none is taken by the SSP for fees (typically 10%-20%) user matching between the Publisher and Criteo is much more timely and complete than matching reliant on a third party % spend with publishers on the same inventory that was previously accessed through RTB Launched in Q2 2017, already connected to 1,500 publishers at the of Q

68 Competitive Landscape

69 Our self-reinforcing competitive moats are difficult to replicate 69

70 Criteo Shopper Graph benefits all participants Our powerful Shopper Graph includes: The Criteo Identity Graph, which connects user identities across devices and environments The Criteo Interest Map, which provides aggregated shopper intent and purchasing data across retailers in our ecosystem And, the Criteo Measurement Network, which measures sales attribution for brands across our many retail partners Openness, transparency, security and fairness are the cornerstones of our commerce marketing ecosystem, where every participant gets more than what they contribute. 70

71 Competitive positioning in Commerce Marketing OPEN CLOSED WORKFLOW AUTOMATION PREDICTIVE PERFORMANCE 71 Note: based solely on Criteo s qualitative assessment

72 Criteo in the Adtech/Martech Landscape DSP Retargeting Mobile Advertising SEM Platforms Social Advertising Ad Servers Marketing Marketing Automation Adtech: Paid Media Criteo wins 90% of head-to-head tests Martech: Owned and Earned Media Criteo complements these vendors Data Management Platform Analytics App Measurement Data Providers Tag Management Feed Management Digital Commerce Platform Data and Operations Infrastructure Criteo integrates with these technologies 72 Social Media Marketing Web Content Management

73 We win over 90% of head-to-head tests based on performance Win rate in head-to-head tests* (%) Reason for not winning tests 10% 42 tests 90% 2 Agency managed spend 2 Performance/creative reasons 73 * Based on 42 head-to-head tests (38 won vs. 4 lost) tracked by Criteo on a global basis across Tier-1 and midmarket advertisers over Jan 2017-Dec 2017

74 Solid track record of execution

75 World-class retention and fast revenue growth 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Client retention rate* (%) Clients Revenue ex-tac ($ millions) 7,832 8,564 9,290 12,882 11,874 10,198 10,962 18,118 17,299 16,472 15,420 14, % Q Q Q Q Q Q Q Q Q Q Q Q Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q * Annual average of quarterly client retention rates, defined as the percentage of live clients during the previous quarter that continued to be live during the current quarter

76 Very profitable and highly predictable business Adjusted EBITDA ($ millions) Revenue ex-tac ($ millions) Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Actuals Guidance 76

77 Financials

78 Solid financial track record since IPO High growth +45% CAGR 941 Expanding profitability +70% CAGR Revenue ex-tac 1 ($M) 730 Adjusted EBITDA 2 ($M) We define Revenue ex-tac as our revenue excluding traffic acquisition costs, or TAC, generated over the applicable measurement period. Revenue ex-tac is not a measure calculated in accordance with U.S. GAAP. Please see the Appendices for a reconciliation of Revenue ex-tac to Revenue, the most directly comparable GAAP measure. 2 We define Adjusted EBITDA as our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, acquisition-related costs and deferred price consideration. Adjusted EBITDA is not a measure calculated in accordance with U.S. GAAP. Please see the Appendices for a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.

79 Fast, profitable growth and strong cash flow REVENUE EX-TAC ($M) ADJUSTED EBITDA ($M) FREE CASH FLOW ($M) +29%* +35%* +80%

80 Strong financial leverage As % of Revenue ex-tac FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Revenue ex-tac 100% 100% 100% 100% 100% Other cost of Revenue* 7.9% 6.6% 6.1% 6.4% 6.9% Gross margin 92.1% 93.4% 93.9% 93.6% 93.1% R&D* 14.9% 12.5% 13.4% 14.2% 14.7% S&O* 43.6% 39.9% 39.8% 35.3% 34.8% G&A* 16.0% 14.8% 13.8% 13.2% 10.7% Adjusted EBITDA 17.5% 26.2% 26.9% 30.8% 32.9% Revenue ex-tac margin** 40.3% 40.8% 40.4% 40.6% 41.0% 80 * Cost of revenue and operating expenses are expressed on a Non-GAAP basis, which excludes the impact of equity awards compensation expense, pension service costs, depreciation and amortization, acquisition-related costs, restructuring and deferred price consideration. ** As a % of revenue

81 Strong drivers for further operating leverage Powered by a combination of spending budgets at limited incremental costs Technology innovation Broader Supply Upselling incremental products and channels Operating excellence and productivity 81

82 Robust operating cash flow enables smart investment PROFITS SCALE SMART INVESTING CASH DEVELOP & GROW INVEST 82

83 Our financial structure offers significant flexibility Strong balance sheet Significant cash pile Very low debt $414M cash As of December 31, 2017 Total assets (in $M) 1,531 Cash & cash equivalents (in $M) Financial liabilities (in $M) 350M committed financing 1,211 >25% of assets 414 $500M equity raise capacity* Share buy-back authorization** Dec Dec Dec Dec Dec Dec * Based on a $2B+ market capitalization, pursuant to the 2017 AGM authorization to issue up to 15,6m shares ** For M&A and equity grants to employees

84 Capital allocation: Reinvestment and M&A to drive growth Organic growth M&A 84 * Average for fiscal years 2013, 2014, 2015, 2016 and 2017

85 Growth Strategy

86 Our growth strategy is based on two strong pillars Grow the ecosystem Evolve go-to-market strategy for Tier 1 and midmarket Further scale midmarket operations worldwide Drive international expansion of Criteo Sponsored Products Increase the value for clients and partners Enhance core technology Leverage our powerful Shopper Graph Upsell new products Broaden supply of quality inventory 86

87 We invest in growing areas in Commerce Marketing Marketing objectives Flexible audience-targeting platform Look alikes* App Install* Shopping environments Omnichannel marketing CRM onboarding* Store-to-web retargeting* Media Incremental inventory In-App Video Criteo Shopper Graph, built on data pooling among ecosystem participants, is the foundation of all new product investments 87 * Prospective

88 Technology and new supply drive growth from existing clients Selected significant examples over time Revenue ex-tac uplift (%) Technology Innovation +20% uplift Conversion Optimization +8% uplift Revenue Optimization +10% uplift Dynamic Creative Optimization +6% uplift RTB integration improvement New Supply +36% uplift in Japan +5% uplift Worldwide +10% uplift +3% uplift Native 88 Note: the uplift in Revenue ex-tac from technology innovation corresponds to the increase in Revenue ex-tac for Criteo on a representative sample of clients, where clients use the corresponding new Engine feature on 50% of their user pool and do not use the corresponding new Engine feature on the other 50% of their user pool, pursuant to a proven 50/50 A/B test methodology. The uplift in Revenue ex-tac from new sources of inventory supply and new channels corresponds to the increase in Revenue ex-tac for Criteo on a representative sample of clients, comparing the Revenue ex-tac generated from those clients before and after the introduction of such new source of inventory supply or new channel.

89 Offering data-driven solutions across the entire shopper journey Criteo Customer Acquisition BETA Criteo Sponsored Products Criteo Dynamic Retargeting Criteo Audience Match BETA New audience targeting offerings 89

90 Compelling investment thesis Large market opportunity Clear strategy Competitive moats Proven track-record Attractive financial profile Commerce Marketing is quickly emerging as the next big marketing category Build the highest performing and open commerce marketing ecosystem Technology Scale and network effects Openness Strong client growth with 90% retention Exceeded guidance 17 quarters in a row Fast growth Increasing profitability Strong cash flow 90

91 Investor Relations Contacts: Edouard Lassalle VP, Head of Investor Relations 32, rue Blanche Paris e.lassalle@criteo.com Friederike Edelmann Director, Investor Relations 387 Park Ave South, 12th Floor New York, NY f.edelmann@criteo.com

92 Appendix

93 Revenue ex-tac reconciliation ($ in thousands) Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3'17 Q4 17 Revenue 401, , , , , , , ,031 Less: Traffic acquisition costs 238, , , , , , , ,087 Revenue ex-tac 162, , , , , , , ,944 ($ in thousands) Revenue 1,799,146 2,296,692 Less: Traffic acquisition costs 1,068,911 1,355,556 Revenue ex-tac 730, ,136 93

94 Adjusted EBITDA reconciliation ($ in thousands) Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3'17 Q4' Net income 18,527 13,339 14,724 40,740 14,518 7,505 22,269 52,368 87,329 96,659 Adjustments: Financial (income) expense 1, (1,435) 2,333 2,094 2,886 2, ,534 Provision for income taxes 7,944 4,450 7,574 13,161 4,201 3,665 7,858 15,927 33,129 31,651 Equity awards compensation expense 8,370 7,695 13,965 13,229 14,940 14,918 22,028 20,464 43,259 72,351 Pension service costs ,231 Depreciation and amortization expense 12,516 13,300 14,771 16,190 20,167 22,306 23,755 24,570 56,779 90,796 Acquisition-related costs , ,921 6 Acquisition-related deferred price consideration (3) Restructuring ,299-40,057-7,356 Total net adjustments 30,316 25,862 38,808 42,255 41,936 46,581 56,847 67, , ,925 Adjusted EBITDA 48,843 39,201 53,532 82,995 56,454 54,086 79, , , ,584 94

95 Free cash flow reconciliation ($ in thousands) Q Q CASH FROM OPERATING ACTIVITIES 71,658 79, , ,458 Acquisition of intangible assets, property, plant and equipment Change in accounts payable related to intangible assets, property, plant and equipment (30,163) (47,367) (85,133) (121,642) 7,182 21,891 7,752 13,131 FREE CASH FLOW 48,677 53,526 76, ,947 95