Criteo reports record profits as retail media drives fourth quarter growth
Fourth quarter results exceed expectations with retail media revenue reaching $250 million milestone in 2024.
Criteo SA announced strong financial results for the fourth quarter and full year 2024, as reported in its earnings release published on February 5, 2025. The company's transformation from a single-product retargeting solution to a multi-functional commerce media platform continued to show momentum, with retail media emerging as a key growth driver.
According to Criteo's financial statements, fourth quarter revenue reached $553 million, while contribution ex-TAC (a key business metric similar to gross profit) grew 7% at constant currency to $334 million, surpassing analyst expectations of $328.8 million. The retail media segment demonstrated particular strength, growing 23% at constant currency to reach $90 million in contribution ex-TAC for the quarter.
For the full year 2024, Criteo reported revenue of $1.93 billion and contribution ex-TAC of $1.12 billion, marking the third consecutive year of double-digit growth. The company achieved an adjusted EBITDA margin of 35%, representing a 500 basis point improvement from the previous year.
The company's retail media business exceeded $250 million in annual revenue, establishing Criteo as a significant player in the fast-growing retail media sector. According to company data, media spend through its platform grew 31% year-over-year to surpass $1.5 billion in 2024.
In a significant leadership change, Criteo announced the appointment of Michael Komasinski as Chief Executive Officer, effective February 15, 2025. Komasinski, who brings over two decades of AdTech expertise, will succeed retiring CEO Megan Clarken. Prior to joining Criteo, Komasinski served in leadership positions at dentsu, including roles as CEO of the Americas and President of Global Data & Technology.
The company expanded its retail partnerships significantly during the quarter. Criteo disclosed new agreements with Harrods in the UK and announced five additional retailer partnerships through its Microsoft Advertising collaboration, expected to launch in the first half of 2025. The company now serves approximately 225 retailers and 3,500 brands globally.
Sarah Glickman, Chief Financial Officer at Criteo, noted in the earnings call that the strong performance was driven by "significant media spend coming into our network, including about 46% increase year-on-year in the Americas." During the critical Cyber 6 peak shopping period, media spend grew 37% across Criteo's ten largest retailers.
Looking ahead to 2025, Criteo provided guidance for mid-single-digit growth in contribution ex-TAC at constant currency. The retail media segment is expected to grow 20% to 22% at constant currency, while performance media is projected to show low-single-digit growth. The company anticipates maintaining an adjusted EBITDA margin between 33% and 34%.
Criteo's board of directors approved an increase in the share repurchase authorization to up to $200 million, demonstrating confidence in the company's financial position. In 2024, Criteo deployed $225 million for share repurchases, representing 124% of its free cash flow.
The financial community responded positively to the results. The reported numbers exceeded the analyst consensus, which had projected fourth quarter contribution ex-TAC of $328.8 million and an adjusted EBITDA margin of 35.7%.
The results reflect Criteo's strategic shift toward becoming a comprehensive commerce media platform. The company reported that retargeting, which represented close to 90% of revenue in early 2020, now accounts for 40% of the business, demonstrating successful diversification of revenue streams.
Commerce audience solutions showed strong momentum, growing 32% in 2024, while the company maintained client retention rates near 90%. Criteo's agency business outpaced overall company growth in 2024, supported by expanded partnerships with major holding companies.
The company faces some headwinds in 2025, including an estimated negative foreign exchange impact of $15 million to $20 million on contribution ex-TAC. Additionally, Criteo noted that first quarter 2025 comparisons would be affected by the absence of leap day and Easter timing benefits that added approximately two percentage points to growth in the first quarter of 2024.