Criteo S.A. (NASDAQ: CRTO) has reported its financial results for the first quarter ended March 31, 2025. The company's revenue for Q1 2025 was $451 million, representing a marginal increase of 0.3% compared to the same period in 2024. However, at constant currency, the revenue increased by 3%.
Gross profit for the quarter stood at $237 million, marking a significant 9% increase from Q1 2024. The gross profit margin also saw an improvement, rising to 52% from 48% in the prior year.
The company's net income for Q1 2025 surged to $40 million, a substantial increase compared to $9 million in Q1 2024. This translated to a diluted earnings per share (EPS) of $0.66, up from $0.12 in the same period last year.
Criteo's non-GAAP metrics also demonstrated positive trends. The contribution ex-tac increased by 4% to reach $264 million, while the adjusted EBITDA surged by 30% to $92 million. The adjusted diluted EPS showed a notable increase of 38%, reaching $1.10 compared to $0.80 in Q1 2024.
The company's cash flow from operating activities for Q1 2025 was reported at $62 million, a significant rise from $14 million in Q1 2024. Free cash flow also saw a substantial increase, reaching $45 million, up from $1 million in the same period last year.
As of March 31, 2025, Criteo held $329 million in cash and marketable securities on its balance sheet, reflecting a decrease of $3 million compared to December 31, 2024, after the company deployed $56 million for share repurchases in the first three months of 2025.
In terms of operational highlights, Criteo reported growth in its retail media and performance media segments. Retail media contribution ex-tac grew by 18% year-over-year at constant currency, while the same-retailer contribution ex-tac retention for retail media was reported at 120%.
The company's strong financial performance was accompanied by notable developments, including the appointment of Frederik van der Kooi as the chairperson of the board of directors and the nomination of Stefanie Jay for election to the board of directors at the 2025 annual meeting of shareholders.
Criteo's resilience in an uncertain macro-economic environment and its robust financial foundation position the company well to drive results for its clients while protecting margins and cash flow.
Additionally, the update on Google's decision to maintain its current approach for offering users control over third-party cookies in the Chrome browser is expected to have implications for Criteo's operations, as the company continues to future-proof its approach to privacy protecting addressability.
However, the company also faces challenges, as its largest retail media client has notified Criteo of its intention to curtail the scope of services provided, which is anticipated to reduce expected revenue from November 1, 2025, onwards.
Looking ahead, Criteo remains optimistic about its 2025 business outlook, leveraging its capabilities to drive performance across the buyer journey and its diversified global client base.
Today the company's shares have moved -10.4% to a price of $29.95. For the full picture, make sure to review Criteo's 8-K report.
