Criteo S.A. (NASDAQ: CRTO) reported Q4 EPS of $1.08, $0.17 better than the analyst estimate of $0.91. Revenue for the quarter came in at $266 million versus the consensus estimate of $258.71 million.

Q4 2019

• Revenue decreased 3% year-over-year, or 2% at constant currency1, to $653 million.
• Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC2, decreased 2% year-over-year, or 1% at constant currency, to $266 million, representing 41% of revenue.
• Net income decreased 2% year-over-year to $41 million, representing 6% of revenue.
• Adjusted EBITDA2 increased 5% to $109 million, representing 41% of Revenue ex-TAC.
• Diluted EPS increased 14% to $0.65 and Adjusted diluted EPS2 increased 29% to $1.08.
• Cash flow from operating activities was $59 million and Free Cash Flow2 was $42 million.
• Our cash position was $419 million as of December 31, 2019, up $54 million year-over-year.

"Megan has already demonstrated her impactful leadership," said JB Rudelle, Chairman. "She has the full support of the Board and we're all confident in her success in driving Criteo forward."

"I am thrilled to lead Criteo into its next chapter," said Megan Clarken, CEO. "We have unbelievable assets and compelling opportunities. I'm confident in our strategic priorities and determined to deliver on them."

"We've delivered on our margin and cash generation targets in a challenging year," said Benoit Fouilland, CFO. "We're committed to maintaining solid profitability and cash flows to support the business in the long run."

Q4 2019 Operating Highlights

• New solutions, which include all solutions outside of retargeting, grew 44% year-over-year to 16% of total Revenue ex-TAC.
• One quarter after beta launch, 800 clients were already live with our Consideration products priced on cost-per-impression (or CPM) basis.
• 23% of our live clients purchased more than one Criteo product, up from 13% in Q4 last year.
• We added 280 net new clients and maintained high client retention at 90% for all products.
• Same-client Revenue ex-TAC3 decreased 3% year-over-year at constant currency, up from -4% in Q3.
• Our direct header-bidding technology now connects to over 4,500 publishers across Web and App.
• We launched Criteo Certified Partner Program (CCP) in our go-to-market for small midmarket clients.

GUIDANCE:

Criteo S.A. sees Q1 2020 revenue of $209-212 million, versus the consensus of $230 million.

The following forward-looking statements reflect Criteo's expectations as of February 11, 2020.

First quarter 2020 guidance:

• We expect Revenue ex-TAC to be between $209 million and $212 million, implying constant-currency growth of approximately -10% to -9%.
• We expect Adjusted EBITDA to be between $58 million and $62 million.

Fiscal year 2020 guidance:

• We expect Revenue ex-TAC to decline by approximately 10% at constant currency.
• We expect Adjusted EBITDA margin of approximately 30% of Revenue ex-TAC.

The above guidance for the first quarter and the fiscal year ending December 31, 2020, assumes the following exchange rates for the main currencies impacting our business: a U.S. dollar-euro rate of 0.901, a U.S. dollar-Japanese Yen rate of 110.0, a U.S. dollar-British pound rate of 0.775 and a U.S. dollar-Brazilian real rate of 4.050.

The above guidance assumes no acquisitions are completed during the first quarter and the fiscal year ending December 31, 2020.

For earnings history and earnings-related data on Criteo S.A. (CRTO) click here.