Retargeting company Criteo announced a strong overall performance across all areas in Q2, particularly in regards to market expansion and tech innovation.
With revenue rising 36% compared to Q2 2015, hitting $407 million, net income increased 240% in comparison to last year, reaching $13 million. Although it is substantial growth, the numbers are lower than in the second quarter in 2015, which saw figures jump 64% on Q2 2014.
The group has also reported a new record in its history by adding over 900 companies to its client roster during the second quarter. The overall number for the company is approaching 12000.
The results follow a strong start into 2016, where Q1 brought increased profitability and a 36% lift in revenue year on year, amounting to $401 million.
Driven mainly by tech innovation as well as new client acquisition, Criteo’s revenue excluding traffic acquisition costs (ex-TAC) grew 36% on last year to $166 million - a rise from $122 million in Q2 2015. The growth was particularly strong in the Asia Pacific region (61% year on year), with business in the Americas region increasing 36% and EMEA at 25% compared with last year. Just like in Q2 2015, ex-TAC amounted to 40.8% of Criteo’s revenue.
There was also a 66% rise in adjusted EBITDA to $39 million, representing 9.6% of revenue and 23.6% of revenue ex-TAC, while adjusted net income per diluted share increased 106% to $0.33.
"We deliver fast growth and expanding profitability," commented Benoit Fouilland, Criteo’s CFO.
Investing in tech
One of the key growth areas for the company has been innovation in technology. Reflecting the general trend of increased smartphone usage among customers, mobile has become crucial to Criteo and now represents over 50% of its revenue ex-TAC.
“And in particular there, the inner business grew over seven-fold versus last year,” Eric Eichmann, the company’s CEO, told EuroBusiness Media.
The financial results have also demonstrated a growing adoption of Criteo’s Universal Match, a product that seeks to enhance seamless cross-device and mobile advertising, as the users matched through the solution generated 47% of revenue ex-TAC in Q2.
In other news, continuing to broaden its sources of inventory on native social and mobile, Criteo expanded its offering to Instagram in Q2, although it has not yet been reported how many advertisers are live on the platform.
"Our performance marketing platform best positions us to offer advertisers the relevant, accountable and seamless marketing across all environments they are demanding," Eichmann commented.
Criteo is expecting more good news in Q3 and has forecasted revenue ex-TAC to reach between $170 million and $174 million, and adjusted EBITDA to stand between $42 million and $46 million.