Change cover visual. Eric Eichmann, CEO. Investor Day, September Position & Strategy

Transcription

1 Change cover visual Eric Eichmann, CEO Investor Day, September 2016 Position & Strategy

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 as filed on Form 10-K, on February 29, 2016, 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 forwardlooking 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 to today s Financial Update presentation. In addition, certain financial information contained herein with respect to years ended prior to December 31, 2013 has been derived from our audited consolidated financial statements that were prepared in accordance with IFRS and presented in Euros. Financial information contained herein with respect to quarterly periods has been derived from our unaudited condensed consolidated financial statements. 2 Copyright 2016 Criteo

3 What marketers want vs. what they get Relevant people-centric targeting VS. Broad audience-based advertising Accountable to performance metrics Not tied to business results Seamless advertising experiences Disjointed consumer experiences 3 Copyright 2016 Criteo

4 Three big trends are driving the transition towards marketers needs Programmatic & data-rich buying with real-time metrics Multiple devices & environments leading to fragmented experiences Mobile ubiquity digitizing offline activities More opportunities to drive performance-based personalized ads Strong need for seamless consumer campaigns More data and trackable performance across more media & sales channels 4 Copyright 2016 Criteo

5 Programmatic and data-rich buying drive personalized marketing at scale Data-Driven Ad Spending (US$ Billions) 91% of U.S. marketers view People-Based Marketing and Real-Time Data as important E 2017E 2018E 2019E 5 Copyright 2016 Criteo Source: emarketer, The Relevancy Group, June 2016; emarketer, Zenith Optimedia, Cowen and Company; Data-Driven Ad Spending represents the addition of Search and Programmatic

6 Multiple devices & environments lead to fragmented marketing experiences Digital Environments Mobile Desktop Web Apps Android ios 40% of ecommerce transactions involve multiple devices Multi-Device Single Device Cross Device Publisher Landscape Open Web Large Walled Gardens Online / Offline Online Offline 94% of U.S. marketers want to be able to identify an individual across channels and devices 6 Copyright 2016 Criteo Source: Cisco VNI, 2016; emarketer, The Relevancy Group, June 2016; Criteo, State of Mobile Commerce Report

7 Mobile ubiquity is digitizing offline activities Mobile time spent per day (in hrs:min) 3:23 CAGR 15% More and more mobile-first companies are digitizing offline activities 3:11 24% 2:51 20% 2:22 14% US UK Canada China Beyond more mobile time, it is becoming increasingly possible to leverage offline data and ecommerce transactions 7 Copyright 2016 Criteo Source: emarketer, April 2016

8 Our success is based on providing relevant, accountable, seamless marketing at scale

9 Our DNA has made us the independent leader in performance marketing Technology Performance Scale Global 9 Copyright 2016 Criteo

10 Improved Onetag TOP! 600 TB Passback We are a disruptive innovator and a pioneer Technology 2008 First CPC model in display We have since pioneered the industry in many ways We brought performance-based personalized marketing to display in 2008 App advertising Engine Optimized Segments Universal Apple-compliant solution Dynamic Match Privacy by Design Facebook of Data analyzed Kinetic everyday Conversion Rate Design Dynamic Native Ads Optimizer collaborative Ads CPOP filtering Travel Segments in Engine Real-time Creative Optimization AOV Optimizer Traktor Dynamic product banners App Deep linking 4bn products imported from merchants everyday 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 10 Copyright 2016 Criteo

11 We have developed powerful machine learning technology Technology We transform data into sales 600 terabytes of shopping intent analyzed every day on 4bn products* $60M/day client post-click sales** 11 Copyright 2016 Criteo * As of June 2016 ** $22 billion client post-click sales generated by Criteo over the 12 months ended June 30, 2016

12 Our engine solves highly complex problems in real time Technology For each user Advertiser 1 Advertiser 2 Advertiser 3 Advertiser 4 Advertiser 5 Creates Product Creates Recommendation Product Creates Recommendation Product Creates Recommendation Product Recommendation recommendation Personalized Personalized creative Personalized creative Personalized creative Personalized creative creative Unique user Unique value user Unique prediction 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 27,000 ads served/sec 12 Copyright 2016 Criteo

13 We have built a massive data set Technology Advertisers $500bn client sales from Bigger than Amazon and ebay combined Publishers 16,000 terabytes of data from 44trn publisher bid requests and 8bn user engagement actions 13 Copyright 2016 Criteo Note: $500 billion client sales are over the 12 months ended June 30, 2016;16,000 terabytes of publisher data is annualized based on Q data

14 We have by far the largest independent R&D team in the industry Technology 470-strong R&D & product team 11-year focus on machine learning that generates sales Paris- and California-based with global sourcing of talent 14 Copyright 2016 Criteo

15 We are obsessed with technology leadership Technology Always A/B testing new ideas 25,000 offline tests in ,000+ in ,000 in H Innovating on core algorithms Clickthrough Conversion Cost of sales Basket size Adding variables to engine Variables Behavior Language Layout 5 variables Destination Category Repetition 15 variables 120+ variables Color Viewed products Publishers 120+ variables Ratings Button Display User s Activity Engagement & more Customized integration to publishers Enhancing Dynamic Creative Scalable across all devices and inventory, in particular in Native Embedding Cross-device Graph Higher Engine performance Attribution for cross-device sales Additional user reach 15 Copyright 2016 Criteo

16 Our solution works seamlessly across the consumer journey Across Technology Devices Desktop Cross-Device Platforms Laptop Smartphone Tablet Marketing Channels Android IOS Others Publisher Ecosystems Web Apps Social Native 16 Copyright 2016 Criteo Open Web

17 Privacy by design: trust is a core business principle Technology No P. I. I.* Criteo was first with ad choices and cookie notification on Safari A user-friendly privacy policy provides transparency to our methods Transparency Our Global Privacy team is embedded within the Product organization Every product and feature is tested for privacy and security prior to launch Control We do not store or process data that can be used to directly identify a consumer 17 Copyright 2016 Criteo * P.I.I. stands for Personally Identifiable Information

18 The whole company is focused on measurable performance Performance 2,000+ employees focus on client sales as the only metric of success Established post-click attribution Client Service Teams Account Strategy CPC model Maximize Clients Sales Continuous tracking of sales Technical Solutions Creative Services Transparent performance information through 24/7 client interface Constant optimization of campaigns Business Intelligence Central Sales 18 Copyright 2016 Criteo

19 As a result, we drive increasing sales for clients Performance Existing live clients Revenue ex-tac 1 +35% +40% +52% +32% Q $22bn Q Client post-click sales over 12 months 2 Q Q $10bn $15bn $6bn 19 Copyright 2016 Criteo 1) Year-over-year growth in Revenue ex-tac from existing live clients is at constant currency 2) Clients post-click sales are calculates over the 12 months ending June 30 of each of 2013, 2014, 2015 and 2016;

20 Our large-scale infrastructure supports our performance Scale High-Performance Computing Largest Hadoop Cluster in Europe 31,500 processing cores 102,000 terabytes total storage Engine model recomputes every hour 26 terabytes additional data every day Real-Time Stack Complete end-to-end integrated ad serving solution Huge distributed data store Engine decisions in a few ms, based on real-time data 20 Copyright 2016 Criteo

21 We have built large-scale networks Scale 2 nd largest global user network* 12,000 advertisers** 17,000+ publishers** Machine-learning technology Powerful scale & network effects 21 Copyright 2016 Criteo * comscore Unique Monthly Users January 2016 Desktop Only ** As of June 30, 2016

22 We have a truly global footprint Global 90 countries covered 31 offices in 19 countries 77 nationalities* San Francisco 2014 Palo Alto 2009 Los Angeles 2015 Toronto 2015 Chicago 2012 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 São Paulo 2011 Sydney Copyright 2016 Criteo * Employees

23 One solution for global companies Global 35% of Revenue ex-tac from advertisers running campaigns in more than one country 1 On average, multi-market advertisers are live in 5 countries Copyright 2016 Criteo 1) Over the 12 months ending June 30, 2016 Number of live countries as of June 30, 2016

24 So what is the road ahead? We plan to continue to Build our core business Invest in new growth areas

25 We have powerful drivers of future growth for our core business 1 Expand our client base 2 Increase our value to clients Expand global presence in particular in APAC, LatAm and MEA Grow midmarket global penetration Enhance core technology (customer targets, universal catalog, kinetic design, smart header bidding ) Leverage our cross-device graph (offer user graph as-a-service to advertisers) Broaden inventory supply (mobile, social and native) 25 Copyright 2016 Criteo

26 And we continue to invest into new growth areas focused on performance The foundation of all our new product investments is the use of rich data sets on a real-time basis to drive performance Scale allows pooled assets to drive performance in ways that were not possible before Marketing Channels New channels Search Video Offline Customer Lifecycle Acquisition marketing Prospecting App Install Verticals New verticals looking for performance for products sold online and offline Manufacturers 26 Copyright 2016 Criteo

27 We are building the world s performance marketing platform Advertisers Advertisers The World s Performance Marketing Platform Consumers Manufacturers Retail, Travel & Classifieds Prospecting Display App Installs Search Remarketing Video Offline Cross Device Graph 27 Copyright 2016 Criteo What we have In development

28 We have a large opportunity ahead of us

29 We can address a $25bn net market opportunity 2019 Estimated Net Market Opportunity Revenue ex-tac basis $9bn $25bn $6bn Acquisition Marketing $10bn Search in Retail Total Net Market Opportunity Core 29 Copyright 2016 Criteo

30 Our core market opportunity is massive Market data 2019 Retail & Travel ecommerce $4,300bn 1 Criteo assumptions Estimated Net Market Opportunity in Core Business: Criteo share of sales (uncapped clients) 10% Average ROI (uncapped clients) 18x $10bn Revenue ex-tac Revenue ex-tac margin 40% 30 Copyright 2016 Criteo 1) Source; emarketer, 2016; 2) Source: Internal Criteo projections based on current performance for uncapped clients (Criteo share of sales and average ROI) and current Revenue ex-tac margin

31 A product for retail in search can open a meaningful new opportunity Market data Search ad spend $126bn Retail share of Search ad spend 30% 2019 Estimated Net Market Opportunity in Search: Criteo assumptions 2 Criteo impact on clients sales 20%-40% $6bn Revenue ex-tac % of ad spend captured by Criteo 10%-20% 31 Copyright 2016 Criteo 1) Source: emarketer, March 2016; Adobe, Feb. 2016; 2) Internal Criteo assumptions

32 New products in acquisition marketing can bring significant opportunity Market data Ad Spend on Display ex. Video $88bn 2019 Estimated Net Market Opportunity in Acquisition Marketing: Criteo assumptions 2 Share of Acquisition Marketing* in Display 25% Revenue ex-tac margin 40% $9bn Revenue ex-tac * Customer Prospecting, App installs, Manufacturer spend 32 Copyright 2016 Criteo 1) Source: Zenith Optimedia, March 2016; 2) Internal Criteo (Share of acquisition marketing, Revenue ex-tac Margin)

33 We have exciting additional opportunities Video Offline 33 Copyright 2016 Criteo

34 Our DNA, strategy and proven execution will make us win DNA Technology Performance Scale Global Strategy Marketing Channels Search Offline Video Customer Lifecycle Prospecting App Installs Verticals Manufacturers Sustainable success Large-scale cross-device graph Successful Execution Seasoned leadership team Proven record of growing core business Consistently exceeding expectations 34 Copyright 2016 Criteo

35 The World s Performance Marketing Platform