CRTO - Criteo slides after lower profit margins revenue miss

• Criteo ( NASDAQ: CRTO ) is down 6% on Friday after closely missing revenue estimates for the third quarter , impacted by macro headwinds and suspension of company's operations in Russia.
• The French marketing and advertising company Criteo reported Contribution Ex-TAC of $213M (+0.9% Y/Y), missing consensus by $11.77M. However, on constant currency basis Contribution ex-TAC rose by 14% year-over-year in Q3 2022.
• That takes into account the revenue of $447M, down 12% year-over-year or 3% at constant currency.
• Marketing Solutions revenue decreased 16%, or decreased 6% at constant currency, and Marketing Solutions Contribution ex-TAC decreased 13%, or increased 1% at constant currency. That reflects a rebound in travel, partially offset by a slowdown in retail, anticipated identity and privacy changes and the suspension of operations in Russia.
• Retail Media revenue decreased 18%, or 14% at constant currency, reflecting the impact related to the ongoing client migration to the company's platform. Retail Media Contribution ex-TAC increased 28%, or 32% at constant currency.
• "We delivered 14% growth in Contribution ex-TAC at constant currency, with solid organic growth and despite a challenging macro environment. We remain focused on executing on our growth strategy with rigorous financial discipline, while delivering value to shareholders with the acceleration of our share buyback program," commented CFO Sarah Glickman.
• Adjusted EBITDA for Q3 was $50M (-27% Y/Y). Adjusted EBITDA as a percentage of Contribution ex-TAC, or Adjusted EBITDA margin, was 24% (Q3 2021: 32%).
• Non-GAAP EPS of $0.53 beats by $0.05.
• Free Cash Flow was $21M in Q3 2022.
• The company ended the quarter with cash and cash equivalents, and marketable securities of $317M, following the spending of  ~$135M on the acquisition of AdTech platform Iponweb.
• Q4 2022 Guidance: The company said it expects Contribution ex-TAC between $275M and $280M (vs. consensus of $315.75M) , or year-over-year growth at constant-currency of +11% to +13%, including the contribution from Iponweb acquisition.
• Adjusted EBITDA forecasted between $90M and $95M.
• FY 2022 Guidance: Contribution ex-TAC expected to to grow by 10% to 11% at constant currency, including the contribution from IPONWEB acquisition.
• Adjusted EBITDA margin of approximately 28% to 29% of Contribution ex-TAC and a free cash flow conversion rate of about 45% of Adjusted EBITDA.

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