CRTO
Criteo S.A.
TMT
05/16/2014
Presented
| Date | 05/14/2014 |
| Price | $33.50 |
| Market Cap | $1.93B |
| Ent Value | $1.62B |
| P/E Ratio | 69.38x |
| Book Value | $6.27 |
| Div Yield | N/A |
| Shares O/S | 57.70M |
| Ave Daily Vol | 540,000 |
| Short Int | 2.01% |
Current
| Price | $40.62 |
| Market Cap | $2.22B |
| Criteo S.A., together with its subsidiaries, operates as a technology company that provides Internet display advertising services in France and internationally. The company leverages large volumes of granular data to engage and convert customers on behalf of its advertiser clients. Its Criteo Engine solution includes prediction algorithms that predict the probability and nature of a user’s engagement with a given advertisement; and recommendation algorithms that create and tailor advertisements to specific user interest through modifying the advertisement’s creative content and presentation, and determining the specific products and services to include in the advertisement. The company’s Criteo Engine solution also comprises software systems and processes that enables data synchronization, storage, and analysis of distributed computing infrastructure in multiple geographies; bidding engine for executing campaigns based on objectives set by the clients; dynamic creative optimization; and experimentation platform, an offline platform to enhance the prediction abilities of its models. In addition, it provides data assets, which collects information about the interaction of users with its advertisers’ and publishers’ websites. Further, the company offers an integrated technology platform that enables comprehensive campaign management and execution, as well as includes a dashboard and a suite of software and services that automates key campaign processes; and access to advertising inventory. It serves companies in the online retail, classifieds, and travel segments. The company was founded in 2005 and is headquartered in Paris, France. |
Publicly traded companies mentioned herein: RetailMeNot, Inc. (SALE), Criteo SA (CRTO), AOL Inc. (AOL), Google Inc. (GOOG), Amazon.com (AMZN), Conversant, Inc. (CNVR), Coupons.com Incorporated (COUP), Facebook.com (FB)
Highlights
Google and AOL recently acquired Adometry and Convertro, respectively. These targeted firms both happen to be focused on ad attribution, and the ironically coincident moves (which were both announced on 5/6) represent a catalyst that the presenter believes is bearish for RetailMeNot (SALE), and Criteo (CRTO). While the exact timing of the impact on SALE and CRTO is difficult to gauge, the potential structural shift from last-click attribution to multi-click should pressure margins as the acquired businesses are integrated into the larger advertising platforms. “Less credit” will be given to SALE, and CRTO’s model may not be as effective at driving traffic over time because as the shift towards multi-click attribution unfolds, retailers will also focus on how they want to deliver coupons/ discounts to consumers (i.e., using better targeting, as opposed to “spraying”).
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