EuroBusiness Media (EBM): Criteo, the performance marketing technology company has just announced its third-quarter results. I'm joined by Criteo's CFO Benoit Fouilland, Benoit, thanks for being with us.
You've just closed another strong quarter, tell us more.
Benoît Fouilland: Yes Q3 was another strong quarter of profitable growth. We continued to execute on our operational plans. Our results exceeded our guidance for the twelfth consecutive quarter. Revenue ex-TAC grew 30% at constant currency, while adjusted EBIDTA grew 51% at constant currency.
EBM: What were your main achievements this third quarter?
Benoît Fouilland: In fact we performed well across our businesses. First, we rolled out technology innovations, driving 15% growth in revenue ex-TAC from existing live clients. Our target cost of sales engine feature is now live, and customers started deploying it. Adoption of our universal match technology remains strong. And we generated 52% of revenue ex-TAC from match users. The beta version of our user graph as a service received very positive feedback. We continued to invest, to take advantage of fast changes in the publisher landscape, making smart adjustments to our bidding strategy and launching an updated version of our header-bidding adapter. Mobile in-apps is growing over 300% and is now a meaningful part of our business. Second, we expanded direct publisher relationships. In native we launched a new partnership with native advertising platform Outbrain. Our direct native offering is now live with close to 400 publishers. Revenue ex-TAC from native, excluding Facebook grew 80% quarter over quarter. Close to 7,000 clients are now live on dynamic ads on Facebook, on the Facebook audience network, on both mobile and desktop. A similar number of advertisers is live on Instagram. And we broaden our mobile in-apps inventory, especially in Asia in-apps markets. Third, we added over 1,000 net new clients while maintaining 90%+ client retention for now 21 quarters in a row. Mid-market is now representing 26% of our revenue ex-TAC and remains a huge opportunity. We continued to roll out our set of automation tools to accelerate campaign launch in mid-market.
EBM: A month ago you announced the acquisition of HookLogic, tell us more about it.
Benoît Fouilland: This acquisition is one of the key milestones in the execution of our long-term strategy. HookLogic allows brand manufacturers to advertise their products on a performance basis on the world's largest retailer sites. What does it mean? It means a new source of advertising dollars from brand manufacturers for us, while bringing new advertising revenue to the retailers. HookLogic is a perfect match and it will make us more strategic to retailers.
EBM: You've also announced the launch of a search product, tell us more about it.
Benoît Fouilland: So our Criteo predictive search product provides a sophisticated end-to-end automated solution to retailers to deliver significant performance improvements for their Google shopping campaigns. So this search brings three important changes. First a disruptive approach to search, based on our unique machine learning approach, to drive up to 49% more sales to retailers. Two: a large opportunity for us, almost as big as our core business today. Third: this makes our solution even more relevant to retailers.
EBM: So, Criteo is going from strength to strength?
Benoît Fouilland: Absolutely! To summarize, we continue our journey to deliver relevant, accountable, seamless marketing to advertisers. HookLogic, predictive search and our cross-device graph, strengthen our ecosystem and provide large opportunity for future growth. We look forward to updating you in the coming quarters.
EBM: Benoit Fouilland, CFO of Criteo, thanks very much for being with us.
Benoît Fouilland: Thank you.
