Criteo Reports 0.3% Revenue Growth to $451.4 Million in Q1 2025

Criteo S.A. reported its financial results for the first quarter of 2025, revealing a slight increase in revenue to $451.4 million, up 0.3% from $450.1 million in the same period last year. The growth was primarily driven by a 17% increase in Retail Media revenue, which reached $59.5 million, while Performance Media revenue saw a decline of 2%, totaling $391.9 million. The company noted that at constant currency, revenue increased by 3%. Gross profit for the quarter rose by 9% to $237.0 million, attributed to lower traffic acquisition costs and other costs of revenue.

Criteo's net income surged by 367% to $40.0 million, compared to $8.6 million in the prior year, reflecting improved operational efficiency and reduced expenses. Adjusted EBITDA also increased by 30% to $92.1 million, driven by higher Contribution ex-TAC, which rose by 4% to $264.4 million. The company reported cash flow from operating activities of $62.3 million, a significant increase from $14.0 million in the same quarter last year.

In terms of operational metrics, Criteo's customer base remained stable, with 93% of revenue generated from existing clients. The company continues to focus on expanding its Commerce Media Platform, which integrates commerce data and machine learning to enhance advertising effectiveness. Criteo's strategic initiatives include a share repurchase program, with $56.2 million spent on repurchasing shares in the first quarter, part of a broader authorization of up to $805.0 million.

Geographically, Criteo's revenue in the Americas decreased by 3% to $192.9 million, while EMEA revenue increased by 1% to $164.9 million, and Asia-Pacific revenue grew by 5% to $93.7 million. The company is closely monitoring macroeconomic conditions, including inflation and geopolitical factors, which could impact advertising demand and consumer behavior.

Looking ahead, Criteo remains optimistic about its growth prospects, emphasizing the importance of retaining and scaling its client base while navigating the evolving digital advertising landscape. The company is committed to leveraging its unique commerce data and technology to capture a larger share of advertising budgets, despite the competitive pressures and regulatory challenges in the industry.