10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

for the quarterly period ended March 31, 2018

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from _________ to _________

Commission file number: 001-36153

Criteo S.A.

(Exact name of registrant as specified in its charter)

France	Not Applicable
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
32, rue Blanche, Paris-France	75009
(Address of principal executive offices)	(Zip Code)

+33 1 40 40 22 90

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 day Yes x  No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x    No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	x	Accelerated Filer	¨
Non-accelerated Filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has not elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes ¨    No x

          As of April 30, 2018, the registrant had 66,343,573 ordinary shares, nominal value €0.025 per share, outstanding.

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION	2
Item 1	Financial Statements	2
	Condensed Consolidated Statements of Financial Position (Unaudited)	3
	Condensed Consolidated Statements of Income (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4	Controls and Procedures	46
PART II	OTHER INFORMATION	47
Item 1	Legal Proceedings	47
Item 1A	Risk Factors	47
Item 6	Exhibits	49
Signatures		50

General

Except where the context otherwise requires, all references in this Quarterly Report on Form 10-Q ("Form 10-Q") to the "Company," "Criteo," "we," "us," "our" or similar words or phrases are to Criteo S.A. and its subsidiaries, taken together. In this Form 10-Q, references to "$" and "US$" are to United States dollars. Our unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or "U.S. GAAP."

Trademarks

“Criteo,” the Criteo logo and other trademarks or service marks of Criteo appearing in this Form 10-Q are the property of Criteo. Trade names, trademarks and service marks of other companies appearing in this Form 10-Q are the property of their respective holders.

Special Note Regarding Forward-Looking Statements

This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are based on our management’s beliefs and assumptions and on information currently available to our management. All statements other than present and historical facts and conditions contained in this Form 10-Q , including statements regarding our future results of operations and financial position, business strategy, plans and objectives for future operations, are forward-looking statements. When used in this Form 10-Q, the words “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “intend,” “is designed to,” “may,” “might,” “plan,” “potential,” “predict,” “objective,” “should,” or the negative of these and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

• the ability of the Criteo Engine to accurately predict engagement by a user;

• our ability to predict and adapt to changes in widely adopted industry platforms and other new technologies;

• our ability to continue to collect and utilize data about user behavior and interaction with advertisers;

• our ability to acquire an adequate supply of advertising inventory from publishers on terms that are favorable to us;

• our ability to meet the challenges of a growing and international company in a rapidly developing and changing industry, including our ability to forecast accurately;

• our ability to maintain an adequate rate of revenue growth and sustain profitability;

• our ability to manage our international operations and expansion and the integration of our acquisitions;

• the effects of increased competition in our market;

• our ability to adapt to regulatory, legislative or self-regulatory developments regarding internet privacy matters;

• our ability to protect users’ information and adequately address privacy concerns;

• our ability to enhance our brand;

• our ability to enter new marketing channels and new geographies;

• our ability to effectively scale our technology platform;

• our ability to attract and retain qualified employees and key personnel;

• our ability to maintain, protect and enhance our brand and intellectual property; and

• failures in our systems or infrastructure.

You should refer to Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2017, and to Part II, Item 1A "Risk Factors" of this Form 10-Q, for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this Form 10-Q will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame or at all. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

You should read this Form 10-Q and the documents that we reference in this Form 10-Q and have filed as exhibits to this Form 10-Q completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

This Form 10-Q may contain market data and industry forecasts that were obtained from industry publications. These data and forecasts involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such information. We have not independently verified any third-party information. While we believe the market position, market opportunity and market size information included in this Form 10-Q is generally reliable, such information is inherently imprecise.

PART I

Item 1. Financial Statements.

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CRITEO S.A.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

	Notes	December 31, 2017			March 31, 2018
		(in thousands)
Assets
Current assets:
Cash and cash equivalents	4	$	414,111		483,874
Trade receivables, net of allowances	5	484,101			395,707
Income taxes		8,882			7,646
Other taxes		58,346			52,557
Other current assets	6	26,327			26,463
Total current assets		991,767			966,247
Property, plant and equipment, net		161,738			153,252
Intangible assets, net	7	96,223			92,384
Goodwill	7	236,826			237,757
Non-current financial assets		19,525			21,137
Deferred tax assets		25,221			28,583
Total non-current assets		539,533			533,113
Total assets		$	1,531,300		$	1,499,360
Liabilities and shareholders' equity
Current liabilities:
Trade payables		$	417,032		$	359,296
Contingencies	14	1,798			836
Income taxes		9,997			10,403
Financial liabilities - current portion	9	1,499			1,747
Other taxes		58,783			52,342
Employee - related payables		66,219			65,646
Other current liabilities	8	65,677			29,851
Total current liabilities		621,005			520,121
Deferred tax liabilities		2,497			2,552
Retirement benefit obligation		5,149			5,748
Financial liabilities - non current portion	9	2,158			2,022
Other non-current liabilities		2,793			5,246
Total non-current liabilities		12,597			15,568
Total liabilities		633,602			535,689
Commitments and contingencies
Shareholders' equity:
Common shares, €0.025 par value, 66,085,097 and 66,248,351 shares authorized, issued and outstanding at December 31, 2017 and March 31, 2018, respectively.		2,152			2,157
Additional paid-in capital		591,404			610,281
Accumulated other comprehensive (loss)		(12,241		)	12,710
Retained earnings		300,210			320,020
Equity-attributable to shareholders of Criteo S.A.		881,525			945,168
Non-controlling interests		16,173			18,503
Total equity		897,698			963,671
Total equity and liabilities		$	1,531,300		$	1,499,360

The accompanying notes form an integral part of these unaudited condensed consolidated financial statements.

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CRITEO S.A.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

			Three Months Ended
	Notes		March 31, 2017			March 31, 2018
		(in thousands, except share per data)
Revenue	2		$	516,667		$	564,164
Cost of revenue:
Traffic acquisition costs			(306,693		)	(323,746		)
Other cost of revenue			(27,155		)	(30,059		)
Gross profit			182,819			210,359
Operating expenses:
Research and development expenses			(39,521		)	(45,318		)
Sales and operations expenses			(90,730		)	(95,649		)
General and administrative expenses			(31,516		)	(34,591		)
Total operating expenses			(161,767		)	(175,558		)
Income from operations			21,052			34,801
Financial income (expense)	11		(2,333		)	(1,325		)
Income before taxes			18,719			33,476
Provision for income taxes	12		(4,201		)	(12,386		)
Net income			$	14,518		$	21,090
Net income available to shareholders of Criteo S.A.			$	12,442		$	19,809
Net income available to non-controlling interests			$	2,076		$	1,281
Net income allocated to shareholders of Criteo S.A. per share:
Basic	13		$	0.19		$	0.30
Diluted	13		$	0.18		$	0.29
Weighted average shares outstanding used in computing per share amounts:
Basic	13		64,189,194			66,160,375
Diluted	13		67,283,012			67,469,738

The accompanying notes form an integral part of these unaudited condensed consolidated financial statements.

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CRITEO S.A.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended
	March 31, 2017			March 31, 2018
	(in thousands)
Net income	$	14,518		$	21,090
Foreign currency translation differences, net of taxes	9,092			25,884
Foreign currency translation differences	9,092			25,884
Income tax effect	—			—
Actuarial (losses) gains on employee benefits, net of taxes	253			—
Actuarial gains on employee benefits	297			—
Income tax effect	(44		)	—
Comprehensive income (loss)	$	23,863		$	46,974
Attributable to shareholders of Criteo S.A.	$	21,293		$	44,756
Attributable to non-controlling interests	$	2,570		$	2,218

The accompanying notes form an integral part of these unaudited condensed consolidated financial statements.

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CRITEO S.A.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended
	March 31, 2017			March 31, 2018
Net income	$	14,518		$	21,090
Non-cash and non-operating items	41,473			53,966
- Amortization and provisions	22,316			26,050
- Equity awards compensation expense (1)	14,940			18,829
- Interest accrued and non-cash financial income and expenses	16			23
- Change in deferred taxes	(6,870		)	(3,146		)
- Income tax for the period	11,071			15,532
- Other (2)	—			(3,322		)
Changes in working capital related to operating activities	(70		)	23,687
- Decrease in trade receivables	59,569			91,292
- Decrease in trade payables	(75,030		)	(62,945		)
- Decrease in other current assets	8,253			7,958
- Increase/(decrease) in other current liabilities (2)	7,138			(12,618		)
Income taxes paid	(11,683		)	(14,216		)
CASH FROM OPERATING ACTIVITIES	44,238			84,527
Acquisition of intangible assets, property, plant and equipment	(23,267		)	(7,413		)
Change in accounts payable related to intangible assets, property, plant and equipment	(4,939		)	(25,154		)
Disposal of business, net of cash disposed	—			(10,811		)
Change in other non-current financial assets	(431		)	(112		)
CASH USED FOR INVESTING ACTIVITIES	(28,637		)	(43,490		)
Issuance of long-term borrowings	—			—
Repayment of borrowings	(2,053		)	(238		)
Proceeds from capital increase	12,937			166
Change in other financial liabilities (2)	119			16,845
CASH FROM FINANCING ACTIVITIES	11,003			16,773
CHANGE IN NET CASH AND CASH EQUIVALENTS	26,604			57,810
Net cash and cash equivalents at beginning of period	270,317			414,111
Effect of exchange rates changes on cash and cash equivalents (2)	6,892			11,953
Net cash and cash equivalents at end of period	$	303,813		$	483,874

⁽¹⁾ Of which $14.6 million and $18.4 million of equity awards compensation expense consisted of share-based compensation expense according to ASC 718 Compensation - stock compensation for the three months ended March 31, 2017 and 2018, respectively.

⁽²⁾ During the three months ended March 31, 2018, the Company reported the cash impact of the settlement of hedging derivatives related to financing activities in cash from (used for) financing activities in the unaudited consolidated statements of cash flows.

The accompanying notes form an integral part of these unaudited condensed consolidated financial statements.

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CRITEO S.A.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Criteo S.A. is a global commerce marketing technology company. We help commerce companies and brand manufacturers acquire, convert and re-engage their customers, using shopping data, predictive technology and large consumer reach. We strive to deliver post-click sales at scale to our clients across different marketing objectives to meet their targeted return on investment. Our data is pooled among our clients and offers deep insights into consumer intent and purchasing habits. To drive sales for our clients, we activate our data assets through proprietary machine-learning algorithms to engage consumers in real time through the pricing and delivery of highly relevant digital advertisements, across devices and environments. By pricing our offering on a cost-per-click and measuring our value based on post-click sales, we make the return on investment transparent and easy to measure for our clients. In these notes, Criteo S.A. is referred to as the "Parent" company and together with its subsidiaries, collectively, as "Criteo," the "Company," the "Group," or "we".

Note 1. Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements included herein (the "Unaudited Condensed Consolidated Financial Statements") have been prepared by Criteo S.A. pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year.

Conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses in the condensed consolidated financial statements and accompanying notes. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. Our actual results may differ from these estimates. U.S. GAAP requires us to make estimates and judgments in several areas, including, but not limited to: (1) the recognition of revenue and particularly, the determination as to whether revenue should be reported on a gross or a net basis; (2) the evaluation of our trade receivables and the recognition of a valuation allowance for doubtful accounts; (3) the recognition of our deferred tax assets considering the subsidiaries projected taxable profit for future years (4) the evaluation of uncertain tax positions considering our transfer pricing policies and research tax credits in the United States and France; (5) the recognition and measurement of income tax positions considering the 2017 Tax Cuts and Jobs Act enacted in December 2017 in the U.S., and particularly the measurement of the base erosion anti-avoidance tax ("BEAT"); (6) the recognition and measurement of goodwill and intangible assets and particularly costs capitalized in relation to our customized internal-use software; and (7) the measurement of share-based compensation and related expenses.

There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, except for the accounting pronouncements adopted below.

Accounting Pronouncements adopted in 2018

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires the Company to recognize revenue when control of promised services is transferred to our customers in an amount that reflects the consideration to which we expect to be entitled to in

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exchange for those services. We adopted the new standard effective January 1, 2018 using the modified retrospective method. The new standard had no significant impact on our Unaudited Condensed Consolidated Financial Statements, except for related disclosures (see Note 2 for further details).

8

In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01) “Business Combinations (Topic 805): Clarifying the Definition of a Business.” ASU 2017-01 provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. We adopted ASU 2017-01 as of January 1, 2018 on a prospective basis and it did not have a material impact on our financial position, results of operations or cash flows.

In May 2017, the FASB issued ASU 2017-09 Compensation - Stock Compensation (Topic 718). ASU 2017-09 was issued to provide clarity and reduce diversity in practice and complexity when applying the guidance in Topic 718 to a change in terms or conditions of a share based payment award. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. We adopted ASU 2017-09 as of January 1, 2018 on a prospective basis and it did not have a material impact on our financial position, results of operations or cash flows.

In March 2017, FASB issued ASU 2017-07 Compensation-Retirements Benefits (Topic 715). ASU 2017-07 requires that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. We adopted ASU 2017-07 as of January 1, 2018 and it did not have a material impact on our financial position, results of operations or cash flows.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). Among other clarifications, ASU 2016-15 clarifies certain items, including the classification of payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, which will now be included in the Financing Activities section in the Consolidated Statement of Cash Flows. We adopted ASU 2016 - 15 as of January 1, 2018 and it did not have a material impact on our financial position, results of operations or cash flows, including classification as operating, financing, or investing activities.

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers Other than Inventory (ASU 2016-16), which requires companies to recognize the income-tax consequences of an intra-entity transfer of an asset other than inventory. We adopted ASU 2016-16 as of January 1, 2018 on a modified retrospective basis. It did not have a material impact on our Consolidated Financial Statements.

Recently Issued Accounting Pronouncements not yet adopted

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), which generally requires companies to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet for operating leases with terms of more than 12 months, in addition to those currently recorded. We are in the process of implementing changes to our systems and processes in conjunction with our review of existing lease agreements. We will adopt Topic 842 effective January 1, 2019 and expect to elect certain available transitional practical expedients. We anticipate this standard will have a material impact on our financial position and results of operations. While we are continuing to assess all potential impacts of the new standard, we currently believe the most significant impact relates to the accounting for office and datacenter operating leases.

9

In January 2017, the FASB issued ASU 2017-04 Goodwill and Other (Topic 350). ASU 2017-04 simplifies the subsequent measurement of goodwill and reduces the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this amendment, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. This update will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of ASU 2017-04 is not expected to have a material impact on our financial position or results of operations.

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Note 2. Revenue

Adoption of ASC Topic 606, “Revenue from contracts with customers”

On January 1, 2018, we adopted Topic 606 using the modified retrospective method. The new standard had no significant impact on our Consolidated Financial Statements, except for related disclosures which are presented under Topic 606 for reporting periods beginning after January 1, 2018, while prior period disclosures are reported in accordance with previous Topic 605.

Nature of services

We generate revenues from our performance marketing service portfolio currently comprised of the following services:

• Criteo Dynamic Retargeting drives post-click sales for our commerce clients by engaging consumers with personalized advertisements offering products or services for which they have already expressed shopping intent.

• Criteo Sponsored Products drives post-click sales for our brand clients by pricing and delivering in real time sponsored product advertisements to consumers demonstrating intent, or actively searching for a specific product or product category, on the websites of retailers selling such brand product.

• Criteo Customer Acquisition ^BETAdrives post-click sales for our commerce clients by helping them to acquire new prospective customers, using intent information across a large pool of retailers and engaging such prospective customers with personalized advertisements offering products or services that are predicted to be of interest to them.

• Criteo Audience Match ^BETAdrives more post-click sales for our commerce clients by accurately targeting and re-engaging their existing customers with personalized advertisements offering new products or services that they have not yet purchased.

Excluding our core product, Criteo Dynamic Retargeting, no other product accounted for more than 10% of total consolidated revenue for the periods presented.

Disaggregation of revenue

The following table presents our revenues disaggregated by geographical area:

	Americas		EMEA		Asia-Pacific		Total
For the three months ended	(in thousands)
March 31, 2017	$	208,013	$	189,092	$	119,562	$	516,667
March 31, 2018	$	212,695	$	222,611	$	128,858	$	564,164

Revenue recognition accounting policies

We recognize revenues when we transfer control of promised services directly to our clients or to advertising agencies, which we collectively refer to as our clients, in an amount that reflects the consideration to which we expect to be entitled to in exchange for those services.

All our services consist mainly in serving relevant advertising and banner to clients’ users, using Criteo’s technology, when client’s users are surfing on the web. Our contracts typically include a single promise to stand ready, to display the advertising or banner until a client’s user clicks. This represents a series of distinct repetitive services (units of time) that are substantially the same, with the same pattern of transfer to the client. Accordingly, the promise to stand ready is accounted for as a single performance obligation.

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Each performance obligation is satisfied over time as the client continuously receives and consumes the benefits of the services in continue. We generally price our advertising campaigns on a cost per click basis (CPC) model based on the number of clicks generated by users on each advertisement we deliver in our advertising campaigns (variable consideration). Which means that we have a right to invoice our clients when a user clicks on an advertisement displayed by us. Advertising campaigns are billed and paid on a monthly basis. This amount is representative of the value of the service delivered to the client and therefore, applying the right-to-bill practical expedient, we recognize revenue over time based on the users’ clicks.

We act as principal in our arrangements because (i) we control the advertising inventory (spaces on websites) before it is transferred to our clients; (ii) we bear sole responsibility for fulfillment of the advertising promise and inventory risks and (iii) we have full discretion in establishing prices. Therefore, based on these factors, we report revenue earned and the costs incurred related on a gross basis.

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

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Note 3. Restructuring

Restructuring of our China Operations

In May 2017, the Company announced it would no longer continue to serve the domestic market in China and would refocus its China operations entirely on the export business. As of December 31, 2017, we had a restructuring liability of $0.4 million included in other current liabilities on the consolidated statement of financial position. No additional expenses were recorded related to this restructuring in the three months ended March 31, 2018 and the remaining $0.4 million was paid during the period resulting in the extinguishment of the restructuring liability as of March 31, 2018.

Discontinuation of Criteo Predictive Search

On October 31, 2017, the Company announced that it had decided to discontinue the Criteo Predictive Search product. $4.1 million was recognized as restructuring charges in 2017. For the three months ended March 31, 2018, we recognized a gain of $0.3 million. This gain was due to employees being relocated within the company rather than being terminated, and to the reduction of share based compensation expenses which was partially offset by additional charges for facilities.

	Three Months Ended
	March 31, 2018
	(in thousands)
Severance costs	$	(195	)
Facility exit costs	420
Other	(477		)
Total restructuring costs / (gain)	$	(252	)

For the three months ended March 31, 2018, $0.1 million was included in Sales and Operations expenses and $(0.4) million in Research and Development expenses. Other costs relate to a reduction of share based compensation expenses of $(0.5) million due to forfeitures.

The following table summarizes restructuring activities as of March 31, 2018 included in other current liabilities on the balance sheet:

	Restructuring Liability
	(in thousands)
Restructuring liability - January 1, 2018	$	2,351
Restructuring costs / (gain)	(252		)
Amounts paid	(1,402		)
Other	477
Restructuring liability - March 31, 2018	$	1,174

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Note 4. Financial Instruments

Credit Risk

The maximum exposure to credit risk at the end of each reported period is represented by the carrying amount of financial assets, and summarized in the following table:

	December 31, 2017		March 31, 2018
	(in thousands)
Cash and cash equivalents	$	414,111	$	483,874
Trade receivables, net of allowance	484,101		395,707
Other taxes	58,346		52,557
Other current assets	26,327		26,463
Non-current financial assets	19,525		21,137
Total	$	1,002,410	$	979,738

As of December 31, 2017 and March 31, 2018, no customer accounted for 10% or more of trade receivables.

We perform ongoing credit evaluations of our customers and do not require collateral. We maintain an allowance for estimated credit losses. During the year ended December 31, 2017 and the three-month period ended March 31, 2018, our allowance for doubtful accounts increased by $9.2 million and $3.2 million, respectively.

For our financial assets, the fair value approximates the carrying amount, given the nature of the financial assets and the maturity of the expected cash flows.

Trade Receivables

Credit risk is defined as an unexpected loss in cash and earnings if the client is unable to pay its obligations in due time. We perform internal ongoing credit risk evaluations of our clients. When a possible risk exposure is identified, we require prepayments.

For each period presented, the aging of trade receivables and allowances for potential losses is as follows:

	December 31, 2017									March 31, 2018
	Gross value		%		Allowance			%		Gross value		%		Allowance			%
	(in thousands)				(in thousands)					(in thousands)				(in thousands)
Not yet due	$	304,233	60.3	%	$	(168	)	0.8	%	$	260,922	62.3	%	$	(236	)	1.0	%
0 - 30 days	121,957		24.2	%	—			—	%	93,522		22.3	%	(508		)	2.1	%
31 - 60 days	29,325		5.8	%	(21		)	0.1	%	24,697		5.9	%	(62		)	0.3	%
61 - 90 days	7,498		1.5	%	(35		)	0.2	%	3,423		0.8	%	(124		)	0.5	%
> 90 days	41,906		8.3	%	(20,594		)	98.9	%	37,103		8.8	%	(23,030		)	96.1	%
Total	$	504,919	100	%	$	(20,818	)	100	%	$	419,667	100	%	$	(23,960	)	100	%

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Financial Liabilities

	December 31, 2017		March 31, 2018
	(in thousands)
Trade payables	$	417,032	$	359,296
Other taxes	58,783		52,342
Employee-related payables	66,219		65,646
Other current liabilities	65,677		29,851
Financial liabilities	3,657		3,769
Total	$	611,368	$	510,904

For our financial liabilities, the fair value approximates the carrying amount, given the nature of the financial liabilities and the maturity of the expected cash flows.

Fair Value Measurements     

We measure the fair value of our cash equivalents, which include money market funds and interest bearing deposits, as level 1 and level 2 measurements because they are valued using quoted market prices and observable market data, respectively.

Financial assets or liabilities include derivative financial instruments used to manage our exposure to the risk of exchange rate fluctuations. These instruments are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

Derivative Financial Instruments

Derivatives consist of foreign currency forward contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the local currency of a subsidiary. We recognize gains and losses on these contracts in financial income (expense), and their position on the balance sheet is based on their fair value at the end of each respective period. These instruments are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

	December 31, 2017		March 31, 2018
	(in thousands)
Derivative Assets:
Included in other current assets	$	5,159	$	—
Derivative Liabilities:
Included in financial liabilities - current portion	$	—	$	573

For our derivative financial instruments, the fair value approximates the carrying amount, given the nature of the derivative financial instruments and the maturity of the expected cash flows.

15

Cash and Cash Equivalents

Cash and cash equivalents include investments in money market funds and interest–bearing bank deposits which meet ASC 230—Statement of Cash flows criteria: short-term, highly liquid investments, for which the risks of changes in value are considered to be insignificant. Money market funds are considered level 1 financial instruments as they are valued using quoted market prices. Interest-bearing bank deposits are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

	December 31, 2017		March 31, 2018
	(in thousands)
Cash and cash equivalents	$	267,236	$	302,060
Money market funds	—		—
Interest-bearing bank deposits	146,875		181,814
Total cash and cash equivalents	$	414,111	$	483,874

For our cash and cash equivalents, the fair value approximates the carrying amount, given the nature of the cash and cash equivalents and the maturity of the expected cash flows.

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Note 5. Trade Receivables

The following table shows the breakdown in trade receivables net book value for the presented periods:

	December 31, 2017			March 31, 2018
	(in thousands)
Trade accounts receivables	$	504,919		$	419,667
(Less) Allowance for doubtful accounts	(20,818		)	(23,960		)
Net book value at end of period	$	484,101		$	395,707

Changes in allowance for doubtful accounts are summarized below:

	2017			2018
	(in thousands)
Balance at January 1	$	(11,598	)	$	(20,818	)
Allowance for doubtful accounts	(3,686		)	(4,436		)
Reversal of provision	2,142			1,460
Currency translation adjustment	(87		)	(166		)
Balance at March 31	$	(13,229	)	$	(23,960	)

The change in allowance for doubtful accounts during the first three months of 2018 related mainly to increased business with categories of clients associated with a higher credit risk.

Note 6. Other Current Assets

The following table shows the breakdown in other current assets net book value for the presented periods:

	December 31, 2017		March 31, 2018
	(in thousands)
Prepayments to suppliers	$	3,244	$	3,833
Other debtors	5,694		5,389
Prepaid expenses	12,230		17,241
Derivative instruments	5,159		—
Gross book value at end of period	26,327		26,463
Net book value at end of period	$	26,327	$	26,463

Prepaid expenses mainly consist of office rental advance payments.

Derivative financial instruments include foreign currency swaps or forward purchases or sales contracts used to manage our exposure to the risk of exchange rate fluctuations. These instruments are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

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Note 7. Intangible assets and Goodwill

There have been no significant changes in intangible assets or goodwill since December 31, 2017. In addition, no triggering events have occurred that would indicate impairment in the balance of either intangible assets or goodwill.

The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows:

	Software		Technology and customer relationships		Total
From April 1 to December 31, 2018	$	7,013	$	10,338	$	17,351
2019	4,775		13,728		18,503
2020	2,876		8,700		11,576
2021	1,401		8,700		10,101
2022	781		8,700		9,481
Thereafter	—		25,372		25,372
Total	$	16,846	$	75,538	$	92,384

Note 8. Other Current Liabilities

Other current liabilities are presented in the following table:

	December 31, 2017		March 31, 2018
	(in thousands)
Clients' prepayments	$	33,495	$	21,473
Accounts payable relating to capital expenditures	30,736		6,261
Other creditors	740		1,451
Deferred revenue	706		666
Total	$	65,677	$	29,851

The changes in "Client's prepayments" mainly related to the customers' cash advances for the Criteo Sponsored Products travel business. The changes in "accounts payable relating to capital expenditures" relate to significant data centers equipment and leasehold improvements acquisitions in 2017 paid during the three-month period ended March 31, 2018.

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Note 9. Financial Liabilities

The changes in current and non-current financial liabilities during the period ended March 31, 2018 are illustrated in the following schedules:

	As of January 1, 2018		New borrowings		Repayments			Change in scope		Other (1)			Currency translation adjustment		As of March 31, 2018
	(in thousands)
Borrowings	$	982	$	—	$	(238	)	$	—	$	184		$	27	$	955
Other financial liabilities	517		—		(312		)	—		—			14		219
Derivative instruments	—		—		—			—		573			—		573
Current portion	1,499		—		(550		)	—		757			41		1,747
Borrowings	1,798		—		—			—		(184		)	48		1,662
Other financial liabilities	360		—		—			—		—			—		360
Non current portion	2,158		—		—			—		(184		)	48		2,022
Borrowings	2,780		—		(238		)	—		—			75		2,617
Other financial liabilities	877		—		(312		)	—		—			14		579
Derivative instruments	—		—		—			—		573			—		573
Total	$	3,657	$	—	$	(550	)	$	—	$	573		$	89	$	3,769

⁽¹⁾ Includes reclassification from non-current to current portion based on maturity of the financial liabilities.

Borrowings are financial liabilities at amortized cost and are measured using level 2 fair value measurements.

We are party to several loan agreements and revolving credit facilities, or RCF, with third-party financial institutions. There have been no significant changes from what was disclosed in Note 13 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

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Note 10. Share-Based Compensation

The board of directors has been authorized by the general meeting of the shareholders to grant employee warrants (Bons de Souscription de Parts de Créateur d’Entreprise or "BSPCEs"), share options (Options de Souscription d'Actions or "OSAs"), restricted share units ("RSUs") and non-employee warrants (Bons de Souscription d'Actions or "BSAs").

During the three months ended March 31, 2018, there were two grants of RSUs and one grant of OSAs under the Employee Share Option Plan 10 as defined in Note 18 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017.

• On March 1, 2018, 122,448 RSUs were granted to Criteo employees subject to continued employment.

• On March 16, 2018, 1,295,513 RSUs were granted to Criteo employees subject to continued employment.

• On March 16, 2018, 794,733 OSAs were granted to senior management subject to continued employment.

There have been no changes in the vesting and method of valuation of the BSPCEs, OSAs, RSUs, or BSAs from what was disclosed in Note 18 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018, except for one grant of OSAs to a member of senior management which will vest as follows:

• up to a half of OSAs at the expiration of a two (2) year period from the date hereof,

• as from the expiration of the initial aforementioned two (2) year period, in increments of 1/16th at the end of each elapsed quarter (i.e., per successive three-month periods), for 2 years from that date.

Change in Number of BSPCE/OSA/RSU/BSA

	OSA/BSPCE		RSU		BSA	Total
Balance at January 1, 2018	3,192,708		4,212,508		186,276	7,591,492
Granted	794,732		1,417,961		—	2,212,693
Exercised (OSA/BSPCE/BSA)	(36,957	)	—		—	(36,957	)
Vested (RSU)	—		(126,456	)	—	(126,456	)
Forfeited	(68,515	)	(201,714	)	—	(270,229	)
Expired	—		—		—	—
Balance at March 31, 2018	3,881,968		5,302,299		186,276	9,370,543

Breakdown of the Closing Balance

	OSA/BSPCE		RSU	BSA
Number outstanding	3,881,968		5,302,299	186,276
Weighted-average exercise price	€	27.51	NA	€	23.93
Number vested	2,072,722		NA	103,272
Weighted-average exercise price	€	23.75	NA	€	19.08
Weighted-average remaining contractual life of options outstanding, in years	7.39		NA	7.34

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Reconciliation with the Unaudited Consolidated Statements of Income

	Three Months Ended
	March 31, 2017												March 31, 2018
	(in thousands)
	R&D			S&O			G&A			Total			R&D			S&O			G&A			Total
RSUs	$	(3,472	)	$	(6,260	)	$	(2,728	)	$	(12,460	)	$	(4,617	)	$	(6,872	)	$	(5,147	)	$	(16,636	)
Share options / BSPCE	(444		)	(450		)	(1,229		)	(2,123		)	(65		)	(359		)	(1,336		)	(1,760		)
Total share-based compensation	(3,916		)	(6,710		)	(3,957		)	(14,583		)	(4,682		)	(7,231		)	(6,483		)	(18,396		)
BSAs	—			—			(357		)	(357		)	—			—			(433		)	(433		)
Total equity awards compensation expense	$	(3,916	)	$	(6,710	)	$	(4,314	)	$	(14,940	)	$	(4,682	)	$	(7,231	)	$	(6,916	)	$	(18,829	)

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Note 11. Financial Income and Expenses

The condensed consolidated statements of income line item “Financial income (expense)” can be broken down as follows:

	Three Months Ended
	March 31, 2017			March 31, 2018
	(in thousands)
Financial income from cash equivalents	$	248		$	225
Interest and fees	(757		)	(556		)
Interest on debt	(568		)	(487		)
Fees	(189		)	(69		)
Foreign exchange gain (loss)	(1,808		)	(972		)
Other financial expense	(16		)	(22		)
Total financial income (expense)	$	(2,333	)	$	(1,325	)

The $1.3 million financial expense for the three months ended March 31, 2018 was driven by the non-utilization costs incurred as part of our available RCF financing and hedging costs related to an intra-group position between Criteo S.A. and its U.S. subsidiary in the context of the funding of the HookLogic acquisition. As of February 2018, this position qualified as a net investment in a foreign operation and no longer requires hedging, resulting in reduced costs compared to the three months ended March 31, 2017. The $2.3 million financial expense for the three months ended March 31, 2017 was driven by the interest accrued as a result of drawing on the revolving credit facility entered into in September 2015 and the hedging cost related to the intra-group position between Criteo S.A. and its U.S. subsidiary, both in the context of the funding of HookLogic acquisition in November 2016.

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Note 12. Income Taxes

Breakdown of Income Taxes

Our tax provision for interim periods is determined using an estimate of our annual effective tax rate (“AETR”), adjusted for discrete items arising in that quarter. To calculate our estimated AETR, we estimate our income before taxes and the related tax expense or benefit for the full fiscal year (total of expected current and deferred tax provisions), excluding the effect of significant unusual or infrequently occurring items or comprehensive income items not recognized in the statement of income. Each quarter, we update our estimate of the annual effective tax rate, and if our estimated annual tax rate does change, we make a cumulative adjustment in that quarter. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, are subject to significant volatility due to several factors including our ability to accurately predict our income (loss) before provision for income taxes in multiple jurisdictions and the changes in foreign exchange rates. Our effective tax rate in the future will depend on the portion of our profits earned within and outside of France.

The condensed consolidated statements of income line item “Provision for income taxes” can be broken down as follows:

	Three Months Ended
	March 31, 2017			March 31, 2018
	(in thousands)
Current income tax	$	(11,071	)	$	(15,532	)
Net change in deferred taxes	6,870			3,146
Provision for income taxes	$	(4,201	)	$	(12,386	)

For the three months ended March 31, 2017 and 2018, we used an annual estimated tax rate of 29% and 37%, respectively, to calculate the provision for income taxes. The effective tax rate was 22% and 37% for the three months ended March 31, 2017 and 2018, respectively. The difference between the annual estimated tax rate and the effective tax rate for three months ended March 31, 2017 was due to the tax impact of discrete items such as share-based compensation in the United States. Discrete items were immaterial for the three months ended March 31, 2018 resulting in no difference between the annual estimated tax rate and the effective tax rate.

Our estimated annual effective tax rate includes our preliminary estimates for the impact of the U.S. Tax Cuts and Jobs Act (the "Tax Act") which was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. federal income tax rate from 35% to 21% and creates new taxes on certain related-party payments, referred to as a base erosion anti-avoidance tax, or “BEAT”. The BEAT provisions in the Tax Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Tax Act also modifies the limitation on the amount of deductible interest expense and the limitation on the deductibility of certain executive compensation. Our estimates are preliminary, and our effective tax rate may be impacted as more information becomes available regarding the tax reform.

Current tax assets and liabilities

The total amount of current tax assets consists mainly of prepayments of income taxes and credits of Criteo Corp., Criteo do Brasil LTDA, and Criteo B.V.. The current tax liabilities refers mainly to the net corporate tax payables of Criteo S.A., K.K. and Criteo Deutschland.

Ongoing tax inspection in the United States

On September 27, 2017, we received a draft notice of proposed adjustment "NOPA" from the Internal Revenue Service ("IRS") audit of Criteo Corp. for the year ended December 31, 2014, confirmed by the definitive notice dated February 8, 2018. If the IRS prevails in its position, it could result in an additional federal tax liability of an estimated maximum aggregate amount of approximately $15.0 million, excluding related fees, interest and penalties. We strongly disagree with the IRS's position as asserted in the notice of proposed adjustment and intend to contest it.

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Note 13. Earnings Per Share

Basic Earnings Per Share

We calculate basic earnings per share by dividing the net income for the period attributable to shareholders of the Parent by the weighted average number of shares outstanding.

	Three Months Ended
	March 31, 2017		March 31, 2018
Net income attributable to shareholders of Criteo S.A.	$	12,442	$	19,809
Weighted average number of shares outstanding	64,189,194		66,160,375
Basic earnings per share	$	0.19	$	0.30

Diluted Earnings Per Share

We calculate diluted earnings per share by dividing the net income attributable to shareholders of the Parent by the weighted average number of shares outstanding plus any potentially dilutive shares not yet issued from share-based compensation plans (see Note 11). There were no other potentially dilutive instruments outstanding as of March 31, 2017 and 2018. Consequently, all potential dilutive effects from shares are considered.

For each period presented, a contract to issue a certain number of shares (i.e. share option, non-employee warrant ("BSA"), restricted share unit ("RSU") or non-employee warrant ("BSPCE") is assessed as potentially dilutive if it is “in the money” (i.e., the exercise or settlement price is lower than the average market price).

	Three Months Ended
	March 31, 2017		March 31, 2018
Net income attributable to shareholders of Criteo S.A.	$	12,442	$	19,809
Weighted average number of shares outstanding of Criteo S.A.	64,189,194		66,160,375
Dilutive effect of :
Restricted share awards ("RSUs")	1,277,928		865,039
Share options and BSPCE	1,722,009		407,806
Share warrants	93,881		36,518
Weighted average number of shares outstanding used to determine diluted earnings per share	67,283,012		67,469,738
Diluted earnings per share	$	0.18	$	0.29

24

The weighted average number of securities that were anti-dilutive for diluted EPS for the periods presented but which could potentially dilute EPS in the future are as follows:

	Three Months Ended
	March 31, 2017	March 31, 2018
Restricted share awards	229,730	1,901,128
Share options and BSPCE	442,910	—
Weighted average number of anti-dilutive securities excluded from diluted earnings per share	672,640	1,901,128

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Note 14. Commitments and contingencies

Commitments

Leases

We are party to various contractual commitments mainly related to our offices as well as hosting services. There have been no significant changes in future payment obligations for these contractual commitments from what was disclosed in Note 22 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Certain of these arrangements have free rent periods or escalating rent payment provisions, and we recognize rent expense under such arrangements on a straight-line basis.

Rent expenses relating to our offices totaled $8.8 million and $9.7 million for the three-month period ended March 31, 2017 and 2018, respectively.

Hosting costs totaled $13.9 million and $12.3 million for the three-month period ended March 31, 2017 and 2018, respectively.

Revolving Credit Facilities, Credit Line Facilities and Bank Overdrafts

As mentioned in Note 9, we are party to one RCF with a syndicate of banks which allow us to draw up to €350.0 million ($431.2 million). As of March 31, 2018, there was no amount drawn on the RCF.

This credit facility is unsecured and contains customary events of default and contains covenants, including compliance with a total net debt to adjusted EBITDA ratio and restrictions on incurring additional indebtedness. As of March 31, 2018, we were in compliance with the required leverage ratio.

Contingencies

Changes in provisions during the presented periods are summarized below:

	Provision for employee-related litigation			Other provisions			Total
	(in thousands)
Balance at January 1, 2018	$	545		$	1,253		$	1,798
Increase							—
Provision used	(370		)	(170		)	(540		)
Provision released not used	—			(456		)	(456		)
Currency translation adjustments	12			22			34
Balance at March 31, 2018	$	187		$	649		$	836
- of which current	187			649			836

The amount of the provisions represent management’s best estimate of the future outflow. As of March 31, 2018, provisions are mainly in relation to employee-related litigations and other operating provisions.

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Note 15. Breakdown of Revenue and Non-Current Assets by Geographical Areas

The Company operates in the following three geographical markets:

• Americas (North and South America);

• EMEA (Europe, Middle-East and Africa); and

• Asia-Pacific.

The following tables disclose our consolidated revenue for each geographical area for each of the reported periods. Revenue by geographical area is based on the location of advertisers’ campaigns.

	Americas		EMEA		Asia-Pacific		Total
For the three months ended:	(in thousands)
March 31, 2017	$	208,013	$	189,092	$	119,562	$	516,667
March 31, 2018	$	212,695	$	222,611	$	128,858	$	564,164

Revenue generated in France, the country of incorporation of the Parent, amounted to $37.5 million and $41.5 million for the three months ended March 31, 2017 and 2018, respectively.

    Revenue generated in other significant countries where we operate is presented in the following table:

	Three Months Ended
	March 31, 2017		March 31, 2018
	(in thousands)
Americas
United States	$	179,663	$	186,052
EMEA
Germany	$	42,614	$	54,515
United Kingdom	$	28,197	$	26,234
Asia-Pacific
Japan	$	85,310	$	92,263

As of March 31, 2017 and 2018, our largest client represented 1.9% and 2.2%, respectively, of our consolidated revenue.

Other Information

For each reported period, non-current assets (corresponding to the net book value of tangible and intangible assets) are presented in the table below. The geographical information results from the locations of legal entities.

					Of which						Of which		Of which
	Holding		Americas		United States		EMEA		Asia-Pacific		Japan		Singapore		Total
(in thousands)
December 31, 2017	$	100,819	$	113,272	$	112,685	$	18,850	$	25,020	$	10,141	$	10,085	$	257,961
March 31, 2018	$	97,792	$	106,530	$	106,067	$	18,859	$	22,455	$	9,296	$	8,333	$	245,636

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Note 16. Related Parties

There were no significant related-party transactions during the period nor any change in the nature of the transactions as described in Note 23 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

Note 17. Subsequent Events

The Company evaluated all subsequent events that occurred after March 31, 2018 through the date of issuance of the unaudited condensed consolidated financial statements and determined there are no significant events that require adjustments or disclosure.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission, or "SEC", on March 1, 2018.

Critical Accounting Policies and Estimates

There have been no material changes to our critical accounting policies and estimates from the information provided in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," included in our Annual Report filed on Form 10-K for the year ended December 31, 2017, except for the adoption of ASC 606 as of January 1, 2018. Please refer to Note 1,"Summary of Significant Accounting Policies," of the Notes to Unaudited Condensed Consolidated Financial Statements for a discussion of the changes in accounting policies due to the adoption of this standard.

Recently Issued Pronouncements

See "Recently Issued Accounting Standards" under Note 1, "Summary of Significant Accounting Policies," of the Notes to Unaudited Condensed Consolidated Financial Statements for a discussion of certain accounting standards that have been issued during 2018.

Use of Non-GAAP Financial Measures

This Form 10-Q includes the following financial measures defined as non-GAAP financial measures by the SEC: Revenue ex-TAC, Adjusted EBITDA and Adjusted Net Income. These measures are not calculated in accordance with U.S. GAAP.

Revenue ex-TAC is our revenue excluding Traffic Acquisition Costs ("TAC") generated over the applicable measurement period and Revenue ex-TAC by Region reflects our Revenue ex-TAC by our core geographies. Revenue ex-TAC, Revenue ex-TAC by Region and Revenue ex-TAC margin are key measures used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue can provide a useful measure for period-to-period comparisons of our core business and across our core geographies. Accordingly we believe that Revenue ex-TAC, Revenue ex-TAC by Region and Revenue ex-TAC margin provide useful information to investors and the market generally in understanding and evaluating our operating results in the same manner as our management and board of directors.

Adjusted EBITDA is our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. Adjusted EBITDA is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short‑ and long-term operational plans. In particular, we believe that by eliminating equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration, Adjusted EBITDA can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

29

Adjusted Net Income is our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring costs, acquisition-related costs and deferred price consideration, and the tax impact of these adjustments. Adjusted Net Income and Adjusted Net Income per diluted share are key measures used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that by eliminating equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring costs, acquisition-related costs and deferred price consideration and the tax impact of these adjustments, Adjusted Net Income and Adjusted Net Income per diluted share can provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted Net Income and Adjusted Net Income per diluted share provide useful information to investors and the market generally in understanding and evaluating our results of operations in the same manner as our management and board of directors.

Please refer to the supplemental financial tables provided for a reconciliation of Revenue ex-TAC to revenue, Adjusted EBITDA to net income, and Adjusted Net Income to net income in each case, the most comparable U.S. GAAP measurement. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (1)other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; and (2)other companies may report Revenue ex-TAC, Adjusted EBITDA, Adjusted Net Income, or similarly titled measures but calculate them differently or over different regions, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider these measures alongside our U.S. GAAP financial results, including revenue and net income.

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Condensed Consolidated Statements of Income Data (Unaudited):

		Three Months Ended
		March 31, 2017			March 31, 2018
	(in thousands, except share and per share data) (unaudited)
Revenue		$	516,667		$	564,164
Cost of revenue (2):
Traffic acquisition costs		(306,693		)	(323,746		)
Other cost of revenue		(27,155		)	(30,059		)
Gross profit		182,819			210,359
Operating expenses
Research and development expenses (2)		(39,521		)	(45,318		)
Sales and operations expenses (2)		(90,730		)	(95,649		)
General and administrative expenses (2)		(31,516		)	(34,591		)
Total operating expenses		(161,767		)	(175,558		)
Income from operations		21,052			34,801
Financial income (expense)		(2,333		)	(1,325		)
Income before taxes		18,719			33,476
Provision for income taxes		(4,201		)	(12,386		)
Net income		$	14,518		$	21,090
Net income available to shareholders of Criteo S.A. (1)		$	12,442		$	19,809
Net income available to shareholders of Criteo S.A. per share:
Basic		$	0.19		$	0.30
Diluted		$	0.18		$	0.29
Weighted average shares outstanding used in computing per share amounts:
Basic		64,189,194			66,160,375
Diluted		67,283,012			67,469,738

⁽¹⁾ For the three months ended March 31, 2017 and 2018, this excludes $2.1 million and $1.3 million, respectively, of net income attributable to non-controlling interests held by Yahoo! Japan in our Japanese subsidiary Criteo KK.

⁽²⁾Cost of revenue and operating expenses include equity awards compensation expense, pension service costs, depreciation and amortization expense, restructuring costs, acquisition-related costs and deferred price consideration as follows:

31

Detailed Information on Selected Items:

		Three Months Ended
		March 31, 2017		March 31, 2018
	(in thousands) (unaudited)
Equity awards compensation expense
Research and development expenses		$	3,916	$	4,555
Sales and operations expenses		6,710		7,832
General and administrative expenses		4,314		6,916
Total equity awards compensation expense		$	14,940	$	19,303
Pension service costs
Research and development expenses		146		220
Sales and operations expenses		59		79
General and administrative expenses		85		135
Total pension service costs (a)		$	290	$	434
Depreciation and amortization expense
Cost of revenue		11,091		15,249
Research and development expenses (b)		2,944		2,221
Sales and operations expenses (c)		4,961		4,454
General and administrative expenses		1,171		1,722
Total depreciation and amortization expense		$	20,167	$	23,646
Acquisition-related costs
General and administrative expenses		6		—
Total acquisition-related costs		$	6	$	—
Restructuring
Cost of revenue		—		—
Research and development expenses		—		(348		)
Sales and operations expenses		—		107
General and administrative expenses		—		(11		)
Total Restructuring		$	—	$	(252	)

(a) Effective January 1, 2012, actuarial gains and losses are recognized in other comprehensive income.

(b) Includes acquisition-related amortization of intangible assets of $2.2 million and $1.3 million for the three months ended March 31, 2017 and 2018, respectively.

(c) Includes acquisition-related amortization of intangible assets of $2.5 million and $2.2 million for the three months ended March 31, 2017 and 2018, respectively.

32

Consolidated Statements of Financial Position Data (Unaudited):

	December 31, 2017		March 31, 2018
	(in thousands) (unaudited)
Cash and cash equivalents	$	414,111	$	483,874
Total assets	1,531,300		1,499,360
Trade receivables, net of allowances for doubtful accounts	484,101		395,707
Total financial liabilities	3,657		3,769
Total liabilities	633,602		535,689
Total equity	$	897,698	$	963,671

OtherFinancial and Operating Data (Unaudited):

		Three Months Ended
		March 31, 2017		March 31, 2018
	(in thousands, except client data) (unaudited)
Number of clients		15,423		18,528
Revenue ex-TAC (3)		$	209,974	$	240,418
Adjusted Net Income (4)		$	30,821	$	40,519
Adjusted EBITDA (5)		$	56,454	$	77,932

⁽³⁾ We define Revenue ex-TAC (Traffic Acquisition Costs) as our revenue excluding traffic acquisition costs, or TAC, generated over the applicable measurement period. Revenue ex-TAC is not a measure calculated in accordance with U.S. GAAP. We have included Revenue ex-TAC in this Form 10-Q because it is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of TAC from revenue can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Revenue ex-TAC provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Our use of Revenue ex-TAC has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; (b) other companies may report Revenue ex-TAC or similarly titled measures but calculate them differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Revenue ex-TAC alongside our other U.S. GAAP financial results, including revenue. The following table presents a reconciliation of Revenue ex-TAC to revenue, the most directly comparable U.S. GAAP measure, for each of the periods indicated:

		Three Months Ended
		March 31, 2017			March 31, 2018
	(in thousands) (unaudited)
Revenue		$	516,667		$	564,164
Adjustment:
Traffic acquisition costs		(306,693		)	(323,746		)
Revenue ex-TAC		$	209,974		$	240,418

33

⁽⁴⁾ We define Adjusted Net Income as our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring costs, acquisition-related costs and deferred price consideration, and the tax impact of the foregoing adjustments. Adjusted Net Income is not a measure calculated in accordance with U.S. GAAP. We have included Adjusted Net Income in this Form 10-Q because it is a key measure used by our management and board of directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, we believe that the elimination of equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring costs, acquisition-related costs and deferred price consideration, and the tax impact of the foregoing adjustments in calculating Adjusted Net Income can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted Net Income provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Our use of Adjusted Net Income has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) Adjusted Net Income does not reflect the potentially dilutive impact of equity-based compensation or the impact of certain acquisition related costs; and (b) other companies, including companies in our industry, may calculate Adjusted Net Income or similarly titled measures differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Adjusted Net Income alongside our other U.S. GAAP financial results, including net income. The following table presents a reconciliation of Adjusted Net Income to net income, the most directly comparable U.S. GAAP measure, for each of the periods indicated:

		Three Months Ended
		March 31, 2017			March 31, 2018
	(in thousands) (unaudited)
Net income		$	14,518		$	21,090
Adjustments:
Equity awards compensation expense		14,940			19,303
Amortization of acquisition-related intangible assets		4,674			3,457
Acquisition-related costs		6			—
Restructuring		—			(252		)
Tax impact of the above adjustments		(3,317		)	(3,079		)
Adjusted Net Income		$	30,821		$	40,519

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⁽⁵⁾We define Adjusted EBITDA as our consolidated earnings before financial income (expense), income taxes, depreciation and amortization, adjusted to eliminate the impact of equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration. Adjusted EBITDA is not a measure calculated in accordance with U.S. GAAP. We have included Adjusted EBITDA in this Form 10-Q because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the elimination of equity awards compensation expense, pension service costs, restructuring costs, acquisition-related costs and deferred price consideration in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (b) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (c) Adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (d) Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and (e) other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Adjusted EBITDA alongside our other U.S. GAAP financial results, including net income. The following table presents a reconciliation of Adjusted EBITDA to net income, the most directly comparable U.S. GAAP measure, for each of the periods indicated:

	Three Months Ended
	March 31, 2017		March 31, 2018
	(in thousands)
Net income	$	14,518	$	21,090
Adjustments:
Financial expense (income)	2,333		1,325
Provision for income taxes	4,201		12,386
Equity awards compensation expense	14,940		19,303
Pension service costs	290		434
Depreciation and amortization expense	20,167		23,646
Acquisition-related costs	6		—
Restructuring	—		(252		)
Total net adjustments	41,936		56,842
Adjusted EBITDA	$	56,454	$	77,932

35

Results of Operations for the Periods Ended March 31, 2017 and 2018 (Unaudited)

Revenue

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

	Three Months Ended
	March 31, 2017		March 31, 2018			2017 vs 2018
	(in thousands)
Revenue as reported	$	516,667	$	564,164		9	%
Conversion impact U.S dollar/other currencies			(31,086		)
Revenue at constant currency (1)	516,667		533,078			3	%
Americas
Revenue as reported	208,013		212,695			2	%
Conversion impact U.S dollar/other currencies			203
Revenue at constant currency (1)	208,013		212,898			2	%
EMEA
Revenue as reported	189,092		222,611			18	%
Conversion impact U.S dollar/other currencies			(25,686		)
Revenue at constant currency (1)	189,092		196,925			4	%
Asia-Pacific
Revenue as reported	119,562		128,858			8	%
Conversion impact U.S dollar/other currencies			(5,604		)
Revenue at constant currency(1)	$	119,562	$	123,254		3	%

⁽¹⁾ Growth at constant currency excludes the impact of foreign currency fluctuations and is computed by applying the 2017 average exchange rates for the relevant period to 2018 figures. We have included revenue at constant currency in this Form 10-Q because it is a key measure used by our management and board of directors to evaluate operating performance. Management reviews and analyzes business results excluding the effect of foreign currency translation because they believe this better represents our underlying business trends.

Revenue for the three months ended March 31, 2018increased to $564.2 million, growing 9% (or 3% on a constant currency basis), compared to the three months ended March 31, 2017. Revenue from new clients contributed 85.4% to the year-over-year revenue growth, while revenue from existing clients contributed 14.6% to the year-over-year revenue growth. This increase in revenue was primarily driven by continued technology innovation, our broader product portfolio, improved access to publisher inventory, and the addition of over 3,100 net new clients across regions, sizes and products. Our ability to convert and maintain a large portion of our clients to uncapped budgets continued to be a driver of the increase in our revenue.

The year-over-year increase was the result of our growth across all regions. Revenue in the Americas region increased2% (or 2% on a constant currency basis) to $212.7 million for the three months ended March 31, 2018 compared to the three months ended March 31, 2017. Growth was driven by increased spend and the adoption of a broader number of products from U.S. clients added in 2017, somewhat offset by more difficult market conditions in Latin America, in particular in Brazil. Revenue in EMEA increased18% (or 4% on a constant currency basis) to $222.6 million for the three months ended March 31, 2018 compared to the three months ended March 31, 2017. This was largely driven by solid growth in Germany and Middle-East and Africa, as well as the higher adoption of our more recent beta products, Criteo Customer Acquisition, Criteo Audience Match, as well as Criteo Sponsored Products, across the main markets in the region. Revenue in the Asia-Pacific region increased8% (or 3% on a constant currency basis) to $128.9 million for the three months ended March 31, 2018 compared to the three months ended March 31, 2017. This growth continued to be largely led by existing Tier-1 clients and new midmarket clients in Japan, as well as the introduction of Criteo Customer Acquisition in some markets across the region.

36

    Additionally, our $564.2 million of revenue for the three months ended March 31, 2018 was positively impacted by $31.1 million as a result of changes in foreign currency against the U.S. dollar compared to the three months ended March 31, 2017.

The year-over-year growth in revenue on a constant currency basis is primarily attributable to an increased number of clicks delivered on the advertising banners displayed by us.

Cost of Revenue

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

	Three Months Ended						% change
	March 31, 2017			March 31, 2018			2017 vs 2018
	(in thousands, except percentages)
Traffic acquisition costs	$	(306,693	)	$	(323,746	)	6%
Other cost of revenue	$	(27,155	)	$	(30,059	)	11%
Total Cost of Revenue	$	(333,848	)	$	(353,805	)	6%
% of revenue	(65		)%	(63		)%
Gross profit %	35		%	37		%

Cost of revenue for the three months ended March 31, 2018increased$20.0 million, or 6%, compared to the three months ended March 31, 2017. This increase was primarily the result of an increase of $17.1 million, or 6% (or 0.1% on a constant currency basis), in traffic acquisition costs and a $2.9 million, or 11% (or 8% on a constant currency basis), increase in other cost of revenue.

The increase in traffic acquisition costs related primarily to an increase of 10% in the number of impressions we purchased, driven by both publishers with whom we have direct relationships, including through our Criteo Direct Bidder, the main real-time bidding exchanges, both global and local, as well as large retailers working with Criteo Sponsored Products. Over the period, the average cost per thousand impressions (or "CPM"), decreased by 4.1% (or 9.1% on a constant currency basis), in large part due to the growing share, in our overall business, of inventory purchased in mobile applications, which tend to come at lower price per unit or CPM, relative to web-based inventory.

The year-over year growth in traffic acquisition costs was the result of our strong growth across all geographies. Traffic acquisition costs in the Americas region increased 2% (or 2% on a constant currency basis) to $131.5 million for the three months ended March 31, 2018 compared to the three months ended March 31, 2017, as we deployed our Criteo Direct Bidder solution with new large publishers, maintained direct relationships with large premium publishers and also increased purchases of impressions from the main real-time bidding exchanges. Traffic acquisition costs in EMEA increased 11% (or decreased by (1)% on a constant currency basis) to $119.9 million for the three months ended March 31, 2018 compared to the three months ended March 31, 2017. In EMEA, we significantly increased our purchases of mobile app inventory, through the main real-time bidding exchanges, and our purchases of impressions from both large publishers with whom we have direct relationships, including through Criteo Direct Bidder, also increased across markets in the region. Traffic acquisition costs in the Asia-Pacific region increased 3% (or decreased by (2)% on a constant currency basis) to $72.3 million for the three months ended March 31, 2018 compared to the three months ended March 31, 2017, as we continued to deploy Criteo Direct Bidder in the region, increased our purchases of impressions from global and local real-time bidding exchanges and maintained strong relationships with large premium publishers in the region, in particular in Japan.

The increase in other cost of revenue includes a $1.6 million decrease in hosting costs, a $4.2 million increase in allocated depreciation and amortization expense and a $0.4 million increase in other cost of sales, including additional purchases of third-party data.

37

We consider Revenue ex-TAC as a key measure of our business activity. Our strategy focuses on maximizing the growth of our Revenue ex-TAC on an absolute basis over maximizing our near-term gross margin. We believe this focus builds sustainable long-term value for our business by fortifying a number of our competitive strengths, including access to advertising inventory, breadth and depth of data and continuous improvement of the Criteo Engine’s performance, allowing it to deliver more relevant advertisements at scale. As a part of this focus, we continue to invest in building relationships with direct publishers and pursuing access to leading advertising exchanges. Our performance-based business model provides us with significant control over our level of Revenue ex-TAC margin, which we seek to optimize in order to maximize Revenue ex-TAC growth on an absolute basis in accordance with our strategic focus.

Research and Development Expenses

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

	Three Months Ended						% change
	March 31, 2017			March 31, 2018			2017 vs 2018
	(in thousands, except percentages)
Research and development expenses	$	(39,521	)	$	(45,318	)	15%
% of revenue	(8		)%	(8		)%

Research and development expenses for the three months ended March 31, 2018increased$5.8 million, or 15%, compared to the three months ended March 31, 2017. This increase was the result of a growth in headcount to 673 employees resulting in $5.9 million of additional headcount related costs and a $1.0 million increase in rent and facilities costs, partially offset by a $0.7 million decrease in amortization and depreciation of assets and an increase in the French Research Tax Credit of $0.4 million.

Sales and Operations Expenses

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

	Three Months Ended						% change
	March 31, 2017			March 31, 2018			2017 vs 2018
	(in thousands, except percentages)
Sales and operations expenses	$	(90,730	)	$	(95,649	)	5%
% of revenue	(18		)%	(17		)%

Sales and operations expenses for the three months ended March 31, 2018increased$4.9 million, or 5%, compared to the three months ended March 31, 2017. This increase was the result of a growth in headcount to 1,536 employees resulting in $4.5 million of additional headcount-related costs, a $0.3 million increase in other operating taxes and an increase of $1.4 million in provisions for doubtful receivables and bad debts, partially offset by a $0.5 million decrease in allocated depreciation and amortization expense, a $0.1 million decrease in allocated rent and facilities costs, and a $0.7 million decrease in other costs.

38

General and Administrative Expenses

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

	Three Months Ended						% change
	March 31, 2017			March 31, 2018			2017 vs 2018
	(in thousands, except percentages)
General and administrative expenses	$	(31,516	)	$	(34,591	)	10%
% of revenue	(6		)%	(6		)%

General and administrative expenses for the three months ended March 31, 2018increased$3.1 million, or 10%, compared to the three months ended March 31, 2017. This increase was the result of a growth in headcount to 466 employees resulting in $4.0 million of additional headcount related costs, a $0.4 million increase in allocated rent and facilities costs, a $0.5 million increase in allocated depreciation and amortization expense. This was partially offset by a $1.3 million decrease in consulting and professional fees and a $0.5 million decrease in other costs.

Financial Income (Expense)

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

	Three Months Ended						% change
	March 31, 2017			March 31, 2018			2017 vs 2018
	(in thousands,  except percentages)
Financial income (expense)	$	(2,333	)	$	(1,325	)	(43)%
% of revenue	—		%	—		%

Financial expense for the three months ended March 31, 2018 decreased by $(1.0) million, or (43)%, compared to the three months ended March 31, 2017. The $1.3 million financial expense for the three months ended March 31, 2018 was driven by the non-utilization costs incurred as part of our available RCF financing and hedging costs related to an intra-group position between Criteo S.A. and its U.S. subsidiary in the context of the funding of the HookLogic acquisition. As of February 2018, this position qualified as a net investment in a foreign operation and no longer requires hedging resulting in reduced costs compared to the three months ended March 31, 2017. The $2.3 million financial expense for the three months ended March 31, 2017 was driven by the interest accrued as a result of drawing on the revolving credit facility entered into in September 2015 and the hedging cost related to the intra-group position between Criteo S.A. and its U.S. subsidiary, both in the context of the funding of HookLogic acquisition in November 2016.

39

Provision for Income Taxes

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

	Three Months Ended						% change
	March 31, 2017			March 31, 2018			2017 vs 2018
	(in thousands, except percentages)
Provision for income taxes	$	(4,201	)	$	(12,386	)	195%
% of revenue	(1		)%	(2		)%
Effective tax rate	22		%	37		%

For the three months ended March 31, 2017 and March 31, 2018, we used an annual estimated tax rate of 29% and 37% respectively to calculate the provision for income taxes. The effective tax rate was 22% and 37% for the three months ended March 31, 2017 and 2018, respectively. The difference between the annual estimated tax rate and the effective tax rate for three months ended March 31, 2017 was due to the tax impact of discrete items such as share-based compensation in the United States. Discrete items were immaterial for the three months ended March 31, 2018 resulting in no difference between the annual estimated tax rate and the effective tax rate.

Our estimated annual effective tax rate includes our preliminary estimates for the impact of the U.S. Tax Cuts and Jobs Act (the "Tax Act") which was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. federal income tax rate from 35% to 21% and creates new taxes on certain related-party payments, referred to as a base erosion anti-avoidance tax, or “BEAT”. The BEAT provisions in the Tax Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Tax Act also modifies the limitation on the amount of deductible interest expense and the limitation on the deductibility of certain executive compensation. Our estimates are preliminary, and our effective tax rate may be impacted as more information becomes available regarding the tax reform.

Net Income

Three months ended March 31, 2018 compared to the three months ended March 31, 2017

	Three Months Ended					% change
	March 31, 2017			March 31, 2018		2017 vs 2018
	(in thousands,  except percentages)
Net income	$	14,518		21,090		45%
% of revenue	3		%	4	%

Net income for the three months ended March 31, 2018increased$6.6 million, or 45%, compared to the three months ended March 31, 2017. This increase was the result of the factors discussed above, in particular, a $13.7 million increase in income from operations and a $1.0 million decrease in financial expense partially offset by a $8.3 million increase in provision for income taxes compared to the three months ended March 31, 2017.

40

Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region

The following table sets forth our revenue, traffic acquisition costs and Revenue ex-TAC by geographic region, including the Americas (North and South America), Europe, Middle East and Africa, or EMEA, and Asia-Pacific.

		Three Months Ended
	Region	March 31, 2017			March 31, 2018			Year over Year Change
Revenue:		(amounts in thousands, except percentages)
	Americas	$	208,013		$	212,695		2	%
	EMEA	189,092			222,611			18	%
	Asia-Pacific	119,562			128,858			8	%
	Total	516,667			564,164			9	%
Traffic acquisition costs:
	Americas	(128,867		)	(131,521		)	2	%
	EMEA	(107,583		)	(119,893		)	11	%
	Asia-Pacific	(70,243		)	(72,332		)	3	%
	Total	(306,693		)	(323,746		)	6	%
Revenue ex-TAC (1):
	Americas	79,146			81,174			3	%
	EMEA	81,509			102,718			26	%
	Asia-Pacific	49,319			56,526			15	%
	Total	$	209,974		$	240,418		14	%

⁽¹⁾ We define Revenue ex-TAC as our revenue excluding traffic acquisition costs generated over the applicable measurement period. Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region are not measures calculated in accordance with U.S. GAAP. We have included Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region in this Form 10-Q because they are key measures used by our management and board of directors to evaluate operating performance and generate future operating plans. In particular, we believe that the elimination of TAC from revenue and review of these measures by region can provide useful measures for period-to-period comparisons of our core business. Accordingly, we believe that Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region provides useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management and board of directors. Our use of Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are: (a) other companies, including companies in our industry which have similar business arrangements, may address the impact of TAC differently; (b) other companies may report Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region or similarly titled measures but define the regions differently, which reduces their effectiveness as a comparative measure; and (c) other companies may report Revenue ex-TAC or similarly titled measures but calculate them differently, which reduces their usefulness as a comparative measure. Because of these and other limitations, you should consider Revenue ex-TAC and Revenue, Traffic Acquisition Costs and Revenue ex-TAC by Region alongside our other U.S. GAAP financial results, including revenue. The above table provides a reconciliation of revenue ex-TAC by region to revenue by region. Please also refer to footnote 3 to the Other Financial and Operating Data table in "Item 2—Management's Discussion and Analysis" of this Form 10-Q for a reconciliation of revenue ex-TAC to revenue, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

41

Constant Currency Reconciliation

Information in this Form 10-Q with respect to results presented on a constant currency basis was calculated by applying the 2017 average exchange rates for the relevant period to 2018 figures. We have included information with respect to our results presented on a constant currency basis because it is a key measure used by our management and board of directors to evaluate operating performance. Management reviews and analyzes business results excluding the effect of foreign currency translation because they believe this better represents our underlying business trends. Below is a table which reconciles the actual results presented in this section with the results presented on a constant currency basis:

	Three Months Ended
	March 31, 2017			March 31, 2018			YoY Change
	(amounts in thousands, except percentages)
Revenue as reported	$	516,667		$	564,164		9	%
Conversion impact U.S. dollar/other currencies				(31,086		)
Revenue at constant currency	$	516,667		$	533,078		3	%
Traffic acquisition costs as reported	$	(306,693	)	$	(323,746	)	6	%
Conversion impact U.S. dollar/other currencies				16,869
Traffic Acquisition Costs at constant currency	$	(306,693	)	$	(306,877	)	—	%
Revenue ex-TAC as reported	$	209,974		$	240,418		14	%
Conversion impact U.S. dollar/other currencies				(14,217		)
Revenue ex-TAC at constant currency	$	209,974		$	226,201		8	%
Revenue ex-TAC/Revenue as reported	41		%	43		%
Other cost of revenue as reported	$	(27,155	)	$	(30,059	)	11	%
Conversion impact U.S. dollar/other currencies				676
Other cost of revenue at constant currency	$	(27,155	)	$	(29,383	)	8	%
Adjusted EBITDA as reported	$	56,454		$	77,932		38	%
Conversion impact U.S. dollar/other currencies				(9,313		)
Adjusted EBITDA at constant currency	$	56,454		$	68,619		22	%

42

Liquidity and Capital Resources

Our principal sources of liquidity are our cash and cash equivalents and cash generated from operating activities. We also benefited to a much lesser extent from the proceeds of the exercise of share options and warrants and expect to continue to do so in the future, as such securities are exercised by holders. We have never declared or paid any cash dividends on our ordinary shares. We do not anticipate paying cash dividends on our equity securities in the foreseeable future and intend to retain all available funds and any future earnings to fund our growth. As discussed in Note 9 to the unaudited condensed consolidated financial statements in Item 1 to this Form 10-Q, we are party to several loan agreements and revolving credit facilities with third-party financial institutions.

Our cash and cash equivalents are invested primarily in demand deposit accounts that are currently providing only a minimal return. Our cash and cash equivalents at March 31, 2018 were held for working capital and general corporate purposes, which could include acquisitions, and amounted to $483.9 million as of March 31, 2018. The $69.8 million increase in cash and cash equivalents compared with December 31, 2017 primarily resulted from $84.5 million in cash from operating activities and $16.8 million in cash from financing activities. This was offset by $43.5 million used for investing activities over the period. The cash used for investing activities is mainly related to $32.6 million in capital expenditures and $10.8 million upon disposal of an activity. The cash used for financing activities is primarily related to $17.1 million cash impact of the settlement of hedging derivatives related to financing activities. In addition, the increase in cash includes a $12.0 million positive impact of changes in foreign exchange rates on our cash position over the period. We do not enter into investments for trading or speculative purposes. Our policy is to invest any cash in excess of our immediate requirements in investments designed to preserve the principal balance and provide liquidity. Accordingly, our cash and cash equivalents are invested primarily in demand deposit accounts that are currently providing only a minimal return.

Operating and Capital Expenditure Requirements

For the three months ended March 31, 2017 and 2018, our capital expenditures were $28.2 million and $32.6 million, respectively. In 2018, these capital expenditures were primarily related to the acquisition of data center and server equipment for our data centers in Amsterdam as well as furnishing and leasehold improvements of new offices and office expansions. We believe our existing cash balances will be sufficient to meet our anticipated cash requirements through at least the next 12 months. Our future working capital requirements will depend on many factors, including the rate of our revenue growth, the amount and timing of our investments in personnel and capital equipment, and the timing and extent of our introduction of new products and product enhancements. If our cash and cash equivalents balances and cash flows from operating activities are insufficient to satisfy our liquidity requirements, we may need to raise additional funds through equity, equity-linked or debt financings to support our operations, and such financings may not be available to us on acceptable terms, or at all. We may also need to raise additional funds in the event we determine in the future to effect one or more acquisitions of businesses, technologies, assets or products. If we are unable to raise additional funds when needed, our operations and ability to execute our business strategy could be adversely affected. If we raise additional funds through the incurrence of indebtedness, such indebtedness would have rights that are senior to holders of our equity securities and could contain covenants that restrict our operations. Any additional equity financing could be dilutive to our shareholders.

Off-Balance Sheet Arrangements

We do not have any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. In addition, we do not engage in trading activities involving non-exchange traded contracts. We therefore believe that we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in these relationships.

43

Historical Cash Flows

The following table sets forth our cash flows for the nine month period ended September 30, 2016 and 2017:

	Three Months Ended
	March 31, 2017			March 31, 2018
	(in thousands)
Cash from operating activities	$	44,238		$	84,527
Cash used in investing activities	$	(28,637	)	$	(43,490	)
Cash from (used for) financing activities	$	11,003		$	16,773

Operating Activities

Cash provided by operating activities is primarily impacted by the increase in the number of clients using our solution and by the amount of cash we invest in personnel and infrastructure to support the anticipated growth of our business. Cash provided by operating activities has typically been generated from net income and by changes in our operating assets and liabilities, particularly in the areas of accounts receivable and accounts payable and accrued expenses, adjusted for certain non-cash and non-operating items such as depreciation, amortization and share-based compensation, deferred tax assets and income taxes.

For the three months ended March 31, 2018, net cash provided by operating activities was $84.5 million and consisted of net income of $21.1 million, $54.0 million in adjustments for certain non-cash and non-operating items and changes in working capital of $23.7 million partially offset by $14.2 million of income taxes paid during the first three months of 2018. Adjustments for certain operating items primarily consisted of depreciation and amortization expense of $26.1 million, equity awards compensation expense of $18.8 million, $15.5 million of accrued income taxes partially offset by $3.3 million for other items and by $3.1 million of changes in deferred tax assets. The $23.7 million increase in cash from changes in working capital primarily consisted of a $91.3 million decrease in trade receivables, a $7.9 million decrease in other current assets including prepaid expenses and VAT receivables partially offset by a $62.9 million decrease in trade payables and a $12.6 million decrease in other current liabilities such as payroll and payroll related expenses and value-added tax ("VAT") payables.

Investing Activities

Our investing activities to date have consisted primarily of purchases of property and equipment and business acquisitions.

For the three months ended March 31, 2018, net cash used in investing activities was $43.5 million and consisted of $32.6 million for purchases of property and equipment and $10.8 million for the disposal of an activity.

Financing Activities

For the three months ended March 31, 2018, net cash from financing activities was $16.8 million resulting from the $17.1 million cash impact of the settlement of hedging derivatives related to financing activities and $0.2 million of share option exercises, partially offset by $0.2 million in repayments of borrowings and a $0.3 million change in other financial liabilities.

44

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market Risk

We are mainly exposed to foreign currency exchange rate fluctuations. There have been no material changes to our exposure to market risk during the first three months of 2018.

For a description of our foreign exchange risk, please see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - B. Liquidity and Capital Resources" in our Annual Report on Form 10-K for the year ended December 31, 2017.

A 10% increase or decrease of the Pound Sterling, the Euro, the Japanese yen or the Brazilian real against the U.S. dollar would have impacted the Condensed Consolidated Statements of Income as follows:

	Three Months Ended
	March 31, 2017					March 31, 2018
	(in thousands)
GBP/USD	+10%		-10%			+10%			-10%
Net income impact	$	9	$	(9	)	$	(212	)	$	212

	Three Months Ended
	March 31, 2017					March 31, 2018
	(in thousands)
BRL/USD	+10%		-10%			+10%		-10%
Net income impact	$	54	$	(54	)	$	15	$	(15	)

	Three Months Ended
	March 31, 2017					March 31, 2018
	(in thousands)
JPY/USD	+10%		-10%			+10%		-10%
Net income impact	$	403	$	(403	)	$	249	$	(249	)

	Three Months Ended
	March 31, 2017					March 31, 2018
	(in thousands)
EUR/USD	+10%		-10%			+10%		-10%
Net income impact	$	2,401	$	(2,401	)	$	2,864	$	(2,864	)

Credit Risk and Trade receivables

For a description of our credit risk and trade receivables, please see "Note 4. Financial instruments" in the Notes to the Consolidated Financial Statements.

45

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Based on their evaluation as of March 31, 2018, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective to provide reasonable assurance that (i) the information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and (ii) such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting identified in management's evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the period covered by this Quarterly Report on Form 10-Q that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitation on Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Criteo have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies and procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error of fraud may occur and not be detected.

46

PART II

Item 1.    Legal Proceedings.

From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business, financial condition, results of operations or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

Item 1A. Risk Factors.

You should carefully consider the risks described below and under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017. These risks and uncertainties are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, also may become important factors that affect us. If any such risks materialize, our business, financial condition and results of operations could be materially harmed and the trading price of our ADSs could decline. These risks are not exclusive and additional risks and uncertainties that we are unaware of, or that we currently believe are not material, also may become important factors that affect us. There have been no material changes to the Risk Factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 except as follows.

The third parties upon which we rely for access to data and revenue opportunities may implement technical restrictions that impede our access to such data and revenue opportunities, which could materially impact our business and results of operations.

A substantial portion of the data we rely on comes from our publisher partners and other third parties, including advertising exchange platforms (including supply-side platforms, or “SSPs”, such as Google's DoubleClick Ad Exchange). Similarly, we rely on our publisher partners, advertising exchange platforms and other third parties for opportunities to serve advertisements through which we generate our revenue. Our ability to successfully leverage such data and successfully generate revenue from such opportunities could be impacted by restrictions imposed by or on our publisher partners or other third parties, including restrictions on our ability to use or read cookies or other tracking features or our ability to use real-time bidding networks or other bidding networks.

In light of the General Data Protection Regulation, or GDPR, which comes into effect on May 25, 2018, SSPs may impose restrictions on our ability to bid on opportunities to serve ads. For example, third-party publishers are responsible under GDPR for gathering necessary user consents and indicating to SSPs that Criteo has been approved by the applicable users. However, we cannot predict or control how these third-party publishers will solicit, gather or transmit these consents. As part of their efforts to comply with their understanding of the requirements of the GDPR, which are subject to interpretation, SSPs that run advertising exchanges may require actions from such third party publishers with respect to such consents that are stricter than what the regulations require. To the extent third-party publishers do not or are not able to gather and transmit such consents in the manner required by the SSP, or if their solutions have not been implemented by May 25, 2018, we will lose the ability to bid on these opportunities, which may have a substantial impact on our revenue.

Further, after obtaining a user’s consent, these third-party publishers will need to transmit these consent flags through advertising exchanges to us to allow us to bid on opportunities to serve ads to consenting users. However, we cannot know at this point how publishers will transmit these consent flags, how SSPs, through which we purchase the majority of our digital ad space and thereby generate the majority of our revenue, will interpret these flags and how these consent flags will be passed along to us. To the extent we cannot use or interpret these consent flags, our access to opportunities that would otherwise be available to us will be reduced, which could have a substantial impact on our revenue.

47

48

Item 6. Exhibits.

Exhibit Index

		Incorporated by Reference
Exhibit	Description	Schedule/ Form	File Number	Exhibit	File Date
31.1#	Certificate of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended
31.2#	Certificate of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended
32.1*	Certificate of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

#    Filed herewith.

*    Furnished herewith.

49

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		CRITEO S.A.
		(Registrant)
	By:	/s/ Benoit Fouilland
Date: May 4, 2018	Name:	Benoit Fouilland
	Title:	Chief Financial Officer
		(Principal financial officer and duly authorized signatory)

50

EX-31.1

Exhibit 31.1

Certification by the Chief Executive Officer pursuant to

Securities Exchange Act Rules 13a-14(a) and 15d-14(a)

as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jean-Baptiste Rudelle, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Criteo S.A.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 4, 2018

/s/ Jean-Baptiste Rudelle

Jean-Baptiste Rudelle

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification by the Chief Financial Officer pursuant to

Securities Exchange Act Rules 13a-14(a) and 15d-14(a)

as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Benoit Fouilland, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Criteo S.A.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 4, 2018

/s/ Benoit Fouilland

Benoit Fouilland

Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

Certification by the Chief Executive Officer and Chief Financial Officer pursuant to

18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350), Jean-Baptiste Rudelle, Chief Executive Officer of Criteo S.A. (the “Company”), and Benoit Fouilland, Chief Financial Officer of the Company, each hereby certifies that, to the best of his knowledge:

1. The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2018, to which this Certification is attached as Exhibit 32.1 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act, and

2. The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 4, 2018

/s/ Jean-Baptiste Rudelle	/s/ Benoit Fouilland
Jean-Baptiste Rudelle	Benoit Fouilland
Chief Executive Officer	Chief Financial Officer

This certification accompanies the Quarterly Report, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act (whether made before or after the date of the Quarterly Report), irrespective of any general incorporation language contained in such filing.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Criteo S.A.
Entity Central Index Key	0001576427
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Entity Common Stock, Shares Outstanding		66,343,573

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 483,874	$ 414,111
Trade receivables, net of allowances	395,707	484,101
Income taxes	7,646	8,882
Other taxes	52,557	58,346
Other current assets	26,463	26,327
Total current assets	966,247	991,767
Property, plant and equipment, net	153,252	161,738
Intangible assets, net	92,384	96,223
Goodwill	237,757	236,826
Non-current financial assets	21,137	19,525
Deferred tax assets	28,583	25,221
Total non-current assets	533,113	539,533
Total assets	1,499,360	1,531,300
Current liabilities:
Trade payables	359,296	417,032
Contingencies	836	1,798
Income taxes	10,403	9,997
Financial liabilities - current portion	1,747	1,499
Other taxes	52,342	58,783
Employee - related payables	65,646	66,219
Other current liabilities	29,851	65,677
Total current liabilities	520,121	621,005
Deferred tax liabilities	2,552	2,497
Retirement benefit obligation	5,748	5,149
Financial liabilities - non current portion	2,022	2,158
Other non-current liabilities	5,246	2,793
Total non-current liabilities	15,568	12,597
Total liabilities	535,689	633,602
Commitments and contingencies
Shareholders' equity:
Common shares, €0.025 par value, 66,085,097 and 66,248,351 shares authorized, issued and outstanding at December 31, 2017 and March 31, 2018, respectively.	2,157	2,152
Additional paid-in capital	610,281	591,404
Accumulated other comprehensive (loss)	12,710	(12,241)
Retained earnings	320,020	300,210
Equity-attributable to shareholders of Criteo S.A.	945,168	881,525
Non-controlling interests	18,503	16,173
Total equity	963,671	897,698
Total equity and liabilities	$ 1,499,360	$ 1,531,300

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (PARENTHETICAL) - € / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common shares, par value (in Euro per share)	€ 0.025	€ 0.025
Common shares authorized (in shares)	66,248,351	66,085,097
Common shares issued (in shares)	66,248,351	66,085,097
Common shares outstanding (in shares)	66,248,351	66,085,097

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenue	$ 564,164	$ 516,667
Cost of revenue:
Traffic acquisition costs	(323,746)	(306,693)
Other cost of revenue	(30,059)	(27,155)
Gross profit	210,359	182,819
Operating expenses:
Research and development expenses	(45,318)	(39,521)
Sales and operations expenses	(95,649)	(90,730)
General and administrative expenses	(34,591)	(31,516)
Total operating expenses	(175,558)	(161,767)
Income from operations	34,801	21,052
Financial income (expense)	(1,325)	(2,333)
Income before taxes	33,476	18,719
Provision for income taxes	(12,386)	(4,201)
Net income	21,090	14,518
Net income available to shareholders of Criteo S.A.	19,809	12,442
Net income available to non-controlling interests	$ 1,281	$ 2,076
Net income allocated to shareholders of Criteo S.A. per share:
Basic (in USD per share)	$ 0.30	$ 0.19
Diluted (in USD per share)	$ 0.29	$ 0.18
Weighted average shares outstanding used in computing per share amounts:
Basic (in shares)	66,160,375	64,189,194
Diluted (in shares)	67,469,738	67,283,012

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 21,090	$ 14,518
Foreign currency translation differences, net of taxes	25,884	9,092
Foreign currency translation differences	25,884	9,092
Income tax effect	0	0
Actuarial (losses) gains on employee benefits, net of taxes	0	253
Actuarial gains on employee benefits	0	297
Income tax effect	0	(44)
Comprehensive income (loss)	46,974	23,863
Comprehensive income (loss), Attributable to shareholders of Criteo S.A	44,756	21,293
Comprehensive income, Attributable to non-controlling interests	$ 2,218	$ 2,570

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
CASH FROM OPERATING ACTIVITIES
Net income		$ 21,090	$ 14,518
Non-cash and non-operating items		53,966	41,473
- Amortization and provisions		26,050	22,316
- Equity awards compensation expense	[1]	18,829	14,940
- Interest accrued and non-cash financial income and expenses		23	16
- Change in deferred taxes		(3,146)	(6,870)
- Income tax for the period		15,532	11,071
- Other	[2]	(3,322)	0
Changes in working capital related to operating activities		23,687	(70)
- Decrease in trade receivables		91,292	59,569
- Decrease in trade payables		(62,945)	(75,030)
- Decrease in other current assets		7,958	8,253
- Increase/(decrease) in other current liabilities	[2]	(12,618)	7,138
Income taxes paid		(14,216)	(11,683)
CASH FROM OPERATING ACTIVITIES		84,527	44,238
CASH USED FOR INVESTING ACTIVITIES
Acquisition of intangible assets, property, plant and equipment		(7,413)	(23,267)
Change in accounts payable related to intangible assets, property, plant and equipment		(25,154)	(4,939)
Disposal of assets, net of cash disposed		(10,811)	0
Change in other non-current financial assets		(112)	(431)
CASH USED FOR INVESTING ACTIVITIES		(43,490)	(28,637)
CASH FROM FINANCING ACTIVITIES
Issuance of long-term borrowings		0	0
Repayment of borrowings		(238)	(2,053)
Proceeds from capital increase		166	12,937
Change in other financial liabilities	[2]	16,845	119
CASH FROM FINANCING ACTIVITIES		16,773	11,003
CHANGE IN NET CASH AND CASH EQUIVALENTS		57,810	26,604
Net cash and cash equivalents at beginning of period		414,111	270,317
Effect of exchange rates changes on cash and cash equivalents	[2]	11,953	6,892
Net cash and cash equivalents at end of period		$ 483,874	$ 303,813

[1] Of which $14.6 million and $18.4 million of equity awards compensation expense consisted of share-based compensation expense according to ASC 718 Compensation - stock compensation for the three months ended March 31, 2017 and 2018, respectively

[2] During the three months ended March 31, 2018, the Company reported the cash impact of the settlement of hedging derivatives related to financing activities in cash from (used for) financing activities in the unaudited consolidated statements of cash flows.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Cash Flows [Abstract]
Share-based compensation expense	$ 18,396	$ 14,583

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Criteo S.A. is a global commerce marketing technology company. We help commerce companies and brand manufacturers acquire, convert and re-engage their customers, using shopping data, predictive technology and large consumer reach. We strive to deliver post-click sales at scale to our clients across different marketing objectives to meet their targeted return on investment. Our data is pooled among our clients and offers deep insights into consumer intent and purchasing habits. To drive sales for our clients, we activate our data assets through proprietary machine-learning algorithms to engage consumers in real time through the pricing and delivery of highly relevant digital advertisements, across devices and environments. By pricing our offering on a cost-per-click and measuring our value based on post-click sales, we make the return on investment transparent and easy to measure for our clients. In these notes, Criteo S.A. is referred to as the "Parent" company and together with its subsidiaries, collectively, as "Criteo," the "Company," the "Group," or "we".

Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements included herein (the "Unaudited Condensed Consolidated Financial Statements") have been prepared by Criteo S.A. pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year.

Conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses in the condensed consolidated financial statements and accompanying notes. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. Our actual results may differ from these estimates. U.S. GAAP requires us to make estimates and judgments in several areas, including, but not limited to: (1) the recognition of revenue and particularly, the determination as to whether revenue should be reported on a gross or a net basis; (2) the evaluation of our trade receivables and the recognition of a valuation allowance for doubtful accounts; (3) the recognition of our deferred tax assets considering the subsidiaries projected taxable profit for future years (4) the evaluation of uncertain tax positions considering our transfer pricing policies and research tax credits in the United States and France; (5) the recognition and measurement of income tax positions considering the 2017 Tax Cuts and Jobs Act enacted in December 2017 in the U.S., and particularly the measurement of the base erosion anti-avoidance tax ("BEAT"); (6) the recognition and measurement of goodwill and intangible assets and particularly costs capitalized in relation to our customized internal-use software; and (7) the measurement of share-based compensation and related expenses.

There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, except for the accounting pronouncements adopted below.

Accounting Pronouncements adopted in 2018

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires the Company to recognize revenue when control of promised services is transferred to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. We adopted the new standard effective January 1, 2018 using the modified retrospective method. The new standard had no significant impact on our Unaudited Condensed Consolidated Financial Statements, except for related disclosures (see Note 2 for further details).

In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01) “Business Combinations (Topic 805): Clarifying the Definition of a Business.” ASU 2017-01 provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. We adopted ASU 2017-01 as of January 1, 2018 on a prospective basis and it did not have a material impact on our financial position, results of operations or cash flows.

In May 2017, the FASB issued ASU 2017-09 Compensation - Stock Compensation (Topic 718). ASU 2017-09 was issued to provide clarity and reduce diversity in practice and complexity when applying the guidance in Topic 718 to a change in terms or conditions of a share based payment award. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. We adopted ASU 2017-09 as of January 1, 2018 on a prospective basis and it did not have a material impact on our financial position, results of operations or cash flows.

In March 2017, FASB issued ASU 2017-07 Compensation-Retirements Benefits (Topic 715). ASU 2017-07 requires that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. We adopted ASU 2017-07 as of January 1, 2018 and it did not have a material impact on our financial position, results of operations or cash flows.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). Among other clarifications, ASU 2016-15 clarifies certain items, including the classification of payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, which will now be included in the Financing Activities section in the Consolidated Statement of Cash Flows. We adopted ASU 2016 - 15 as of January 1, 2018 and it did not have a material impact on our financial position, results of operations or cash flows, including classification as operating, financing, or investing activities.

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers Other than Inventory (ASU 2016-16), which requires companies to recognize the income-tax consequences of an intra-entity transfer of an asset other than inventory. We adopted ASU 2016-16 as of January 1, 2018 on a modified retrospective basis. It did not have a material impact on our Consolidated Financial Statements.

Recently Issued Accounting Pronouncements not yet adopted

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), which generally requires companies to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet for operating leases with terms of more than 12 months, in addition to those currently recorded. We are in the process of implementing changes to our systems and processes in conjunction with our review of existing lease agreements. We will adopt Topic 842 effective January 1, 2019 and expect to elect certain available transitional practical expedients. We anticipate this standard will have a material impact on our financial position and results of operations. While we are continuing to assess all potential impacts of the new standard, we currently believe the most significant impact relates to the accounting for office and datacenter operating leases.

In January 2017, the FASB issued ASU 2017-04 Goodwill and Other (Topic 350). ASU 2017-04 simplifies the subsequent measurement of goodwill and reduces the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this amendment, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. This update will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of ASU 2017-04 is not expected to have a material impact on our financial position or results of operations.

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Revenue

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Adoption of ASC Topic 606, “Revenue from contracts with customers”

On January 1, 2018, we adopted Topic 606 using the modified retrospective method. The new standard had no significant impact on our Consolidated Financial Statements, except for related disclosures which are presented under Topic 606 for reporting periods beginning after January 1, 2018, while prior period disclosures are reported in accordance with previous Topic 605.

Nature of services

We generate revenues from our performance marketing service portfolio currently comprised of the following services:

• Criteo Dynamic Retargeting drives post-click sales for our commerce clients by engaging consumers with personalized advertisements offering products or services for which they have already expressed shopping intent.

• Criteo Sponsored Products drives post-click sales for our brand clients by pricing and delivering in real time sponsored product advertisements to consumers demonstrating intent, or actively searching for a specific product or product category, on the websites of retailers selling such brand product.

• Criteo Customer Acquisition ^BETAdrives post-click sales for our commerce clients by helping them to acquire new prospective customers, using intent information across a large pool of retailers and engaging such prospective customers with personalized advertisements offering products or services that are predicted to be of interest to them.

• Criteo Audience Match ^BETAdrives more post-click sales for our commerce clients by accurately targeting and re-engaging their existing customers with personalized advertisements offering new products or services that they have not yet purchased.

Excluding our core product, Criteo Dynamic Retargeting, no other product accounted for more than 10% of total consolidated revenue for the periods presented.

Disaggregation of revenue

The following table presents our revenues disaggregated by geographical area:

	Americas		EMEA		Asia-Pacific		Total
For the three months ended	(in thousands)
March 31, 2017	$	208,013	$	189,092	$	119,562	$	516,667
March 31, 2018	$	212,695	$	222,611	$	128,858	$	564,164

Revenue recognition accounting policies

We recognize revenues when we transfer control of promised services directly to our clients or to advertising agencies, which we collectively refer to as our clients, in an amount that reflects the consideration to which we expect to be entitled to in exchange for those services.

All our services consist mainly in serving relevant advertising and banner to clients’ users, using Criteo’s technology, when client’s users are surfing on the web. Our contracts typically include a single promise to stand ready, to display the advertising or banner until a client’s user clicks. This represents a series of distinct repetitive services (units of time) that are substantially the same, with the same pattern of transfer to the client. Accordingly, the promise to stand ready is accounted for as a single performance obligation.

Each performance obligation is satisfied over time as the client continuously receives and consumes the benefits of the services in continue. We generally price our advertising campaigns on a cost per click basis (CPC) model based on the number of clicks generated by users on each advertisement we deliver in our advertising campaigns (variable consideration). Which means that we have a right to invoice our clients when a user clicks on an advertisement displayed by us. Advertising campaigns are billed and paid on a monthly basis. This amount is representative of the value of the service delivered to the client and therefore, applying the right-to-bill practical expedient, we recognize revenue over time based on the users’ clicks.

We act as principal in our arrangements because (i) we control the advertising inventory (spaces on websites) before it is transferred to our clients; (ii) we bear sole responsibility for fulfillment of the advertising promise and inventory risks and (iii) we have full discretion in establishing prices. Therefore, based on these factors, we report revenue earned and the costs incurred related on a gross basis.

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

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Restructuring

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

Restructuring of our China Operations

In May 2017, the Company announced it would no longer continue to serve the domestic market in China and would refocus its China operations entirely on the export business. As of December 31, 2017, we had a restructuring liability of $0.4 million included in other current liabilities on the consolidated statement of financial position. No additional expenses were recorded related to this restructuring in the three months ended March 31, 2018 and the remaining $0.4 million was paid during the period resulting in the extinguishment of the restructuring liability as of March 31, 2018.

Discontinuation of Criteo Predictive Search

On October 31, 2017, the Company announced that it had decided to discontinue the Criteo Predictive Search product. $4.1 million was recognized as restructuring charges in 2017. For the three months ended March 31, 2018, we recognized a gain of $0.3 million. This gain was due to employees being relocated within the company rather than being terminated, and to the reduction of share based compensation expenses which was partially offset by additional charges for facilities.

	Three Months Ended
	March 31, 2018
	(in thousands)
Severance costs	$	(195	)
Facility exit costs	420
Other	(477		)
Total restructuring costs / (gain)	$	(252	)

For the three months ended March 31, 2018, $0.1 million was included in Sales and Operations expenses and $(0.4) million in Research and Development expenses. Other costs relate to a reduction of share based compensation expenses of $(0.5) million due to forfeitures.

The following table summarizes restructuring activities as of March 31, 2018 included in other current liabilities on the balance sheet:

	Restructuring Liability
	(in thousands)
Restructuring liability - January 1, 2018	$	2,351
Restructuring costs / (gain)	(252		)
Amounts paid	(1,402		)
Other	477
Restructuring liability - March 31, 2018	$	1,174

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Financial Instruments

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Financial Instruments

Financial Instruments

Credit Risk

The maximum exposure to credit risk at the end of each reported period is represented by the carrying amount of financial assets, and summarized in the following table:

	December 31, 2017		March 31, 2018
	(in thousands)
Cash and cash equivalents	$	414,111	$	483,874
Trade receivables, net of allowance	484,101		395,707
Other taxes	58,346		52,557
Other current assets	26,327		26,463
Non-current financial assets	19,525		21,137
Total	$	1,002,410	$	979,738

As of December 31, 2017 and March 31, 2018, no customer accounted for 10% or more of trade receivables.

We perform ongoing credit evaluations of our customers and do not require collateral. We maintain an allowance for estimated credit losses. During the year ended December 31, 2017 and the three-month period ended March 31, 2018, our allowance for doubtful accounts increased by $9.2 million and $3.2 million, respectively.

For our financial assets, the fair value approximates the carrying amount, given the nature of the financial assets and the maturity of the expected cash flows.

Trade Receivables

Credit risk is defined as an unexpected loss in cash and earnings if the client is unable to pay its obligations in due time. We perform internal ongoing credit risk evaluations of our clients. When a possible risk exposure is identified, we require prepayments.

For each period presented, the aging of trade receivables and allowances for potential losses is as follows:

	December 31, 2017									March 31, 2018
	Gross value		%		Allowance			%		Gross value		%		Allowance			%
	(in thousands)				(in thousands)					(in thousands)				(in thousands)
Not yet due	$	304,233	60.3	%	$	(168	)	0.8	%	$	260,922	62.3	%	$	(236	)	1.0	%
0 - 30 days	121,957		24.2	%	—			—	%	93,522		22.3	%	(508		)	2.1	%
31 - 60 days	29,325		5.8	%	(21		)	0.1	%	24,697		5.9	%	(62		)	0.3	%
61 - 90 days	7,498		1.5	%	(35		)	0.2	%	3,423		0.8	%	(124		)	0.5	%
> 90 days	41,906		8.3	%	(20,594		)	98.9	%	37,103		8.8	%	(23,030		)	96.1	%
Total	$	504,919	100	%	$	(20,818	)	100	%	$	419,667	100	%	$	(23,960	)	100	%

Financial Liabilities

	December 31, 2017		March 31, 2018
	(in thousands)
Trade payables	$	417,032	$	359,296
Other taxes	58,783		52,342
Employee-related payables	66,219		65,646
Other current liabilities	65,677		29,851
Financial liabilities	3,657		3,769
Total	$	611,368	$	510,904

For our financial liabilities, the fair value approximates the carrying amount, given the nature of the financial liabilities and the maturity of the expected cash flows.

Fair Value Measurements     

We measure the fair value of our cash equivalents, which include money market funds and interest bearing deposits, as level 1 and level 2 measurements because they are valued using quoted market prices and observable market data, respectively.

Financial assets or liabilities include derivative financial instruments used to manage our exposure to the risk of exchange rate fluctuations. These instruments are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

Derivative Financial Instruments

Derivatives consist of foreign currency forward contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the local currency of a subsidiary. We recognize gains and losses on these contracts in financial income (expense), and their position on the balance sheet is based on their fair value at the end of each respective period. These instruments are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

	December 31, 2017		March 31, 2018
	(in thousands)
Derivative Assets:
Included in other current assets	$	5,159	$	—
Derivative Liabilities:
Included in financial liabilities - current portion	$	—	$	573

For our derivative financial instruments, the fair value approximates the carrying amount, given the nature of the derivative financial instruments and the maturity of the expected cash flows.

Cash and Cash Equivalents

Cash and cash equivalents include investments in money market funds and interest–bearing bank deposits which meet ASC 230—Statement of Cash flows criteria: short-term, highly liquid investments, for which the risks of changes in value are considered to be insignificant. Money market funds are considered level 1 financial instruments as they are valued using quoted market prices. Interest-bearing bank deposits are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

	December 31, 2017		March 31, 2018
	(in thousands)
Cash and cash equivalents	$	267,236	$	302,060
Money market funds	—		—
Interest-bearing bank deposits	146,875		181,814
Total cash and cash equivalents	$	414,111	$	483,874

For our cash and cash equivalents, the fair value approximates the carrying amount, given the nature of the cash and cash equivalents and the maturity of the expected cash flows.

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Trade Receivables

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Trade Receivables

Trade Receivables

The following table shows the breakdown in trade receivables net book value for the presented periods:

	December 31, 2017			March 31, 2018
	(in thousands)
Trade accounts receivables	$	504,919		$	419,667
(Less) Allowance for doubtful accounts	(20,818		)	(23,960		)
Net book value at end of period	$	484,101		$	395,707

Changes in allowance for doubtful accounts are summarized below:

	2017			2018
	(in thousands)
Balance at January 1	$	(11,598	)	$	(20,818	)
Allowance for doubtful accounts	(3,686		)	(4,436		)
Reversal of provision	2,142			1,460
Currency translation adjustment	(87		)	(166		)
Balance at March 31	$	(13,229	)	$	(23,960	)

The change in allowance for doubtful accounts during the first three months of 2018 related mainly to increased business with categories of clients associated with a higher credit risk.

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Other Current Assets

3 Months Ended

Mar. 31, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

Other Current Assets

The following table shows the breakdown in other current assets net book value for the presented periods:

	December 31, 2017		March 31, 2018
	(in thousands)
Prepayments to suppliers	$	3,244	$	3,833
Other debtors	5,694		5,389
Prepaid expenses	12,230		17,241
Derivative instruments	5,159		—
Gross book value at end of period	26,327		26,463
Net book value at end of period	$	26,327	$	26,463

Prepaid expenses mainly consist of office rental advance payments.

Derivative financial instruments include foreign currency swaps or forward purchases or sales contracts used to manage our exposure to the risk of exchange rate fluctuations. These instruments are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

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Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets and Goodwill

Intangible assets and Goodwill

There have been no significant changes in intangible assets or goodwill since December 31, 2017. In addition, no triggering events have occurred that would indicate impairment in the balance of either intangible assets or goodwill.

The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows:

	Software		Technology and customer relationships		Total
From April 1 to December 31, 2018	$	7,013	$	10,338	$	17,351
2019	4,775		13,728		18,503
2020	2,876		8,700		11,576
2021	1,401		8,700		10,101
2022	781		8,700		9,481
Thereafter	—		25,372		25,372
Total	$	16,846	$	75,538	$	92,384

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Other Current Liabilities

3 Months Ended

Mar. 31, 2018

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Other Current Liabilities

Other current liabilities are presented in the following table:

	December 31, 2017		March 31, 2018
	(in thousands)
Clients' prepayments	$	33,495	$	21,473
Accounts payable relating to capital expenditures	30,736		6,261
Other creditors	740		1,451
Deferred revenue	706		666
Total	$	65,677	$	29,851

The changes in "Client's prepayments" mainly related to the customers' cash advances for the Criteo Sponsored Products travel business. The changes in "accounts payable relating to capital expenditures" relate to significant data centers equipment and leasehold improvements acquisitions in 2017 paid during the three-month period ended March 31, 2018.

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Financial Liabilities

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Financial Liabilities

Financial Liabilities

The changes in current and non-current financial liabilities during the period ended March 31, 2018 are illustrated in the following schedules:

	As of January 1, 2018		New borrowings		Repayments			Change in scope		Other (1)			Currency translation adjustment		As of March 31, 2018
	(in thousands)
Borrowings	$	982	$	—	$	(238	)	$	—	$	184		$	27	$	955
Other financial liabilities	517		—		(312		)	—		—			14		219
Derivative instruments	—		—		—			—		573			—		573
Current portion	1,499		—		(550		)	—		757			41		1,747
Borrowings	1,798		—		—			—		(184		)	48		1,662
Other financial liabilities	360		—		—			—		—			—		360
Non current portion	2,158		—		—			—		(184		)	48		2,022
Borrowings	2,780		—		(238		)	—		—			75		2,617
Other financial liabilities	877		—		(312		)	—		—			14		579
Derivative instruments	—		—		—			—		573			—		573
Total	$	3,657	$	—	$	(550	)	$	—	$	573		$	89	$	3,769

⁽¹⁾ Includes reclassification from non-current to current portion based on maturity of the financial liabilities.

Borrowings are financial liabilities at amortized cost and are measured using level 2 fair value measurements.

We are party to several loan agreements and revolving credit facilities, or RCF, with third-party financial institutions. There have been no significant changes from what was disclosed in Note 13 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

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Share-Based Compensation

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

The board of directors has been authorized by the general meeting of the shareholders to grant employee warrants (Bons de Souscription de Parts de Créateur d’Entreprise or "BSPCEs"), share options (Options de Souscription d'Actions or "OSAs"), restricted share units ("RSUs") and non-employee warrants (Bons de Souscription d'Actions or "BSAs").

During the three months ended March 31, 2018, there were two grants of RSUs and one grant of OSAs under the Employee Share Option Plan 10 as defined in Note 18 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017.

• On March 1, 2018, 122,448 RSUs were granted to Criteo employees subject to continued employment.

• On March 16, 2018, 1,295,513 RSUs were granted to Criteo employees subject to continued employment.

• On March 16, 2018, 794,733 OSAs were granted to senior management subject to continued employment.

There have been no changes in the vesting and method of valuation of the BSPCEs, OSAs, RSUs, or BSAs from what was disclosed in Note 18 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018, except for one grant of OSAs to a member of senior management which will vest as follows:

• up to a half of OSAs at the expiration of a two (2) year period from the date hereof,

• as from the expiration of the initial aforementioned two (2) year period, in increments of 1/16th at the end of each elapsed quarter (i.e., per successive three-month periods), for 2 years from that date.

Change in Number of BSPCE/OSA/RSU/BSA

	OSA/BSPCE		RSU		BSA	Total
Balance at January 1, 2018	3,192,708		4,212,508		186,276	7,591,492
Granted	794,732		1,417,961		—	2,212,693
Exercised (OSA/BSPCE/BSA)	(36,957	)	—		—	(36,957	)
Vested (RSU)	—		(126,456	)	—	(126,456	)
Forfeited	(68,515	)	(201,714	)	—	(270,229	)
Expired	—		—		—	—
Balance at March 31, 2018	3,881,968		5,302,299		186,276	9,370,543

Breakdown of the Closing Balance

	OSA/BSPCE		RSU	BSA
Number outstanding	3,881,968		5,302,299	186,276
Weighted-average exercise price	€	27.51	NA	€	23.93
Number vested	2,072,722		NA	103,272
Weighted-average exercise price	€	23.75	NA	€	19.08
Weighted-average remaining contractual life of options outstanding, in years	7.39		NA	7.34

Reconciliation with the Unaudited Consolidated Statements of Income

	Three Months Ended
	March 31, 2017												March 31, 2018
	(in thousands)
	R&D			S&O			G&A			Total			R&D			S&O			G&A			Total
RSUs	$	(3,472	)	$	(6,260	)	$	(2,728	)	$	(12,460	)	$	(4,617	)	$	(6,872	)	$	(5,147	)	$	(16,636	)
Share options / BSPCE	(444		)	(450		)	(1,229		)	(2,123		)	(65		)	(359		)	(1,336		)	(1,760		)
Total share-based compensation	(3,916		)	(6,710		)	(3,957		)	(14,583		)	(4,682		)	(7,231		)	(6,483		)	(18,396		)
BSAs	—			—			(357		)	(357		)	—			—			(433		)	(433		)
Total equity awards compensation expense	$	(3,916	)	$	(6,710	)	$	(4,314	)	$	(14,940	)	$	(4,682	)	$	(7,231	)	$	(6,916	)	$	(18,829	)

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Financial Income and Expenses

3 Months Ended

Mar. 31, 2018

Other Income and Expenses [Abstract]

Financial Income and Expenses

Financial Income and Expenses

The condensed consolidated statements of income line item “Financial income (expense)” can be broken down as follows:

	Three Months Ended
	March 31, 2017			March 31, 2018
	(in thousands)
Financial income from cash equivalents	$	248		$	225
Interest and fees	(757		)	(556		)
Interest on debt	(568		)	(487		)
Fees	(189		)	(69		)
Foreign exchange gain (loss)	(1,808		)	(972		)
Other financial expense	(16		)	(22		)
Total financial income (expense)	$	(2,333	)	$	(1,325	)

The $1.3 million financial expense for the three months ended March 31, 2018 was driven by the non-utilization costs incurred as part of our available RCF financing and hedging costs related to an intra-group position between Criteo S.A. and its U.S. subsidiary in the context of the funding of the HookLogic acquisition. As of February 2018, this position qualified as a net investment in a foreign operation and no longer requires hedging, resulting in reduced costs compared to the three months ended March 31, 2017. The $2.3 million financial expense for the three months ended March 31, 2017 was driven by the interest accrued as a result of drawing on the revolving credit facility entered into in September 2015 and the hedging cost related to the intra-group position between Criteo S.A. and its U.S. subsidiary, both in the context of the funding of HookLogic acquisition in November 2016.

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Breakdown of Income Taxes

Our tax provision for interim periods is determined using an estimate of our annual effective tax rate (“AETR”), adjusted for discrete items arising in that quarter. To calculate our estimated AETR, we estimate our income before taxes and the related tax expense or benefit for the full fiscal year (total of expected current and deferred tax provisions), excluding the effect of significant unusual or infrequently occurring items or comprehensive income items not recognized in the statement of income. Each quarter, we update our estimate of the annual effective tax rate, and if our estimated annual tax rate does change, we make a cumulative adjustment in that quarter. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, are subject to significant volatility due to several factors including our ability to accurately predict our income (loss) before provision for income taxes in multiple jurisdictions and the changes in foreign exchange rates. Our effective tax rate in the future will depend on the portion of our profits earned within and outside of France.

The condensed consolidated statements of income line item “Provision for income taxes” can be broken down as follows:

	Three Months Ended
	March 31, 2017			March 31, 2018
	(in thousands)
Current income tax	$	(11,071	)	$	(15,532	)
Net change in deferred taxes	6,870			3,146
Provision for income taxes	$	(4,201	)	$	(12,386	)

For the three months ended March 31, 2017 and 2018, we used an annual estimated tax rate of 29% and 37%, respectively, to calculate the provision for income taxes. The effective tax rate was 22% and 37% for the three months ended March 31, 2017 and 2018, respectively. The difference between the annual estimated tax rate and the effective tax rate for three months ended March 31, 2017 was due to the tax impact of discrete items such as share-based compensation in the United States. Discrete items were immaterial for the three months ended March 31, 2018 resulting in no difference between the annual estimated tax rate and the effective tax rate.

Our estimated annual effective tax rate includes our preliminary estimates for the impact of the U.S. Tax Cuts and Jobs Act (the "Tax Act") which was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. federal income tax rate from 35% to 21% and creates new taxes on certain related-party payments, referred to as a base erosion anti-avoidance tax, or “BEAT”. The BEAT provisions in the Tax Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Tax Act also modifies the limitation on the amount of deductible interest expense and the limitation on the deductibility of certain executive compensation. Our estimates are preliminary, and our effective tax rate may be impacted as more information becomes available regarding the tax reform.

Current tax assets and liabilities

The total amount of current tax assets consists mainly of prepayments of income taxes and credits of Criteo Corp., Criteo do Brasil LTDA, and Criteo B.V.. The current tax liabilities refers mainly to the net corporate tax payables of Criteo S.A., K.K. and Criteo Deutschland.

Ongoing tax inspection in the United States

On September 27, 2017, we received a draft notice of proposed adjustment "NOPA" from the Internal Revenue Service ("IRS") audit of Criteo Corp. for the year ended December 31, 2014, confirmed by the definitive notice dated February 8, 2018. If the IRS prevails in its position, it could result in an additional federal tax liability of an estimated maximum aggregate amount of approximately $15.0 million, excluding related fees, interest and penalties. We strongly disagree with the IRS's position as asserted in the notice of proposed adjustment and intend to contest it.

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Earnings Per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic Earnings Per Share

We calculate basic earnings per share by dividing the net income for the period attributable to shareholders of the Parent by the weighted average number of shares outstanding.

	Three Months Ended
	March 31, 2017		March 31, 2018
Net income attributable to shareholders of Criteo S.A.	$	12,442	$	19,809
Weighted average number of shares outstanding	64,189,194		66,160,375
Basic earnings per share	$	0.19	$	0.30

Diluted Earnings Per Share

We calculate diluted earnings per share by dividing the net income attributable to shareholders of the Parent by the weighted average number of shares outstanding plus any potentially dilutive shares not yet issued from share-based compensation plans (see Note 11). There were no other potentially dilutive instruments outstanding as of March 31, 2017 and 2018. Consequently, all potential dilutive effects from shares are considered.

For each period presented, a contract to issue a certain number of shares (i.e. share option, non-employee warrant ("BSA"), restricted share unit ("RSU") or non-employee warrant ("BSPCE") is assessed as potentially dilutive if it is “in the money” (i.e., the exercise or settlement price is lower than the average market price).

	Three Months Ended
	March 31, 2017		March 31, 2018
Net income attributable to shareholders of Criteo S.A.	$	12,442	$	19,809
Weighted average number of shares outstanding of Criteo S.A.	64,189,194		66,160,375
Dilutive effect of :
Restricted share awards ("RSUs")	1,277,928		865,039
Share options and BSPCE	1,722,009		407,806
Share warrants	93,881		36,518
Weighted average number of shares outstanding used to determine diluted earnings per share	67,283,012		67,469,738
Diluted earnings per share	$	0.18	$	0.29

The weighted average number of securities that were anti-dilutive for diluted EPS for the periods presented but which could potentially dilute EPS in the future are as follows:

	Three Months Ended
	March 31, 2017	March 31, 2018
Restricted share awards	229,730	1,901,128
Share options and BSPCE	442,910	—
Weighted average number of anti-dilutive securities excluded from diluted earnings per share	672,640	1,901,128

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Commitments and contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies

Commitments

Leases

We are party to various contractual commitments mainly related to our offices as well as hosting services. There have been no significant changes in future payment obligations for these contractual commitments from what was disclosed in Note 22 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Certain of these arrangements have free rent periods or escalating rent payment provisions, and we recognize rent expense under such arrangements on a straight-line basis.

Rent expenses relating to our offices totaled $8.8 million and $9.7 million for the three-month period ended March 31, 2017 and 2018, respectively.

Hosting costs totaled $13.9 million and $12.3 million for the three-month period ended March 31, 2017 and 2018, respectively.

Revolving Credit Facilities, Credit Line Facilities and Bank Overdrafts

As mentioned in Note 9, we are party to one RCF with a syndicate of banks which allow us to draw up to €350.0 million ($431.2 million). As of March 31, 2018, there was no amount drawn on the RCF.

This credit facility is unsecured and contains customary events of default and contains covenants, including compliance with a total net debt to adjusted EBITDA ratio and restrictions on incurring additional indebtedness. As of March 31, 2018, we were in compliance with the required leverage ratio.

Contingencies

Changes in provisions during the presented periods are summarized below:

	Provision for employee-related litigation			Other provisions			Total
	(in thousands)
Balance at January 1, 2018	$	545		$	1,253		$	1,798
Increase							—
Provision used	(370		)	(170		)	(540		)
Provision released not used	—			(456		)	(456		)
Currency translation adjustments	12			22			34
Balance at March 31, 2018	$	187		$	649		$	836
- of which current	187			649			836

The amount of the provisions represent management’s best estimate of the future outflow. As of March 31, 2018, provisions are mainly in relation to employee-related litigations and other operating provisions.

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Breakdown of Revenue and Non-Current Assets by Geographical Areas

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Breakdown of Revenue and Non-Current Assets by Geographical Areas

Breakdown of Revenue and Non-Current Assets by Geographical Areas

The Company operates in the following three geographical markets:

• Americas (North and South America);

• EMEA (Europe, Middle-East and Africa); and

• Asia-Pacific.

The following tables disclose our consolidated revenue for each geographical area for each of the reported periods. Revenue by geographical area is based on the location of advertisers’ campaigns.

	Americas		EMEA		Asia-Pacific		Total
For the three months ended:	(in thousands)
March 31, 2017	$	208,013	$	189,092	$	119,562	$	516,667
March 31, 2018	$	212,695	$	222,611	$	128,858	$	564,164

Revenue generated in France, the country of incorporation of the Parent, amounted to $37.5 million and $41.5 million for the three months ended March 31, 2017 and 2018, respectively.

    Revenue generated in other significant countries where we operate is presented in the following table:

	Three Months Ended
	March 31, 2017		March 31, 2018
	(in thousands)
Americas
United States	$	179,663	$	186,052
EMEA
Germany	$	42,614	$	54,515
United Kingdom	$	28,197	$	26,234
Asia-Pacific
Japan	$	85,310	$	92,263

As of March 31, 2017 and 2018, our largest client represented 1.9% and 2.2%, respectively, of our consolidated revenue.

Other Information

For each reported period, non-current assets (corresponding to the net book value of tangible and intangible assets) are presented in the table below. The geographical information results from the locations of legal entities.

					Of which						Of which		Of which
	Holding		Americas		United States		EMEA		Asia-Pacific		Japan		Singapore		Total
(in thousands)
December 31, 2017	$	100,819	$	113,272	$	112,685	$	18,850	$	25,020	$	10,141	$	10,085	$	257,961
March 31, 2018	$	97,792	$	106,530	$	106,067	$	18,859	$	22,455	$	9,296	$	8,333	$	245,636

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Related Parties

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Related Parties

Related Parties

There were no significant related-party transactions during the period nor any change in the nature of the transactions as described in Note 23 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

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Subsequent Events

3 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company evaluated all subsequent events that occurred after March 31, 2018 through the date of issuance of the unaudited condensed consolidated financial statements and determined there are no significant events that require adjustments or disclosure.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements included herein (the "Unaudited Condensed Consolidated Financial Statements") have been prepared by Criteo S.A. pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018. The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year.

Conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses in the condensed consolidated financial statements and accompanying notes. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. Our actual results may differ from these estimates. U.S. GAAP requires us to make estimates and judgments in several areas, including, but not limited to: (1) the recognition of revenue and particularly, the determination as to whether revenue should be reported on a gross or a net basis; (2) the evaluation of our trade receivables and the recognition of a valuation allowance for doubtful accounts; (3) the recognition of our deferred tax assets considering the subsidiaries projected taxable profit for future years (4) the evaluation of uncertain tax positions considering our transfer pricing policies and research tax credits in the United States and France; (5) the recognition and measurement of income tax positions considering the 2017 Tax Cuts and Jobs Act enacted in December 2017 in the U.S., and particularly the measurement of the base erosion anti-avoidance tax ("BEAT"); (6) the recognition and measurement of goodwill and intangible assets and particularly costs capitalized in relation to our customized internal-use software; and (7) the measurement of share-based compensation and related expenses.

There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, except for the accounting pronouncements adopted below.

Recently Issued Accounting Standards

Accounting Pronouncements adopted in 2018

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires the Company to recognize revenue when control of promised services is transferred to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. We adopted the new standard effective January 1, 2018 using the modified retrospective method. The new standard had no significant impact on our Unaudited Condensed Consolidated Financial Statements, except for related disclosures (see Note 2 for further details).

In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01) “Business Combinations (Topic 805): Clarifying the Definition of a Business.” ASU 2017-01 provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. We adopted ASU 2017-01 as of January 1, 2018 on a prospective basis and it did not have a material impact on our financial position, results of operations or cash flows.

In May 2017, the FASB issued ASU 2017-09 Compensation - Stock Compensation (Topic 718). ASU 2017-09 was issued to provide clarity and reduce diversity in practice and complexity when applying the guidance in Topic 718 to a change in terms or conditions of a share based payment award. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. We adopted ASU 2017-09 as of January 1, 2018 on a prospective basis and it did not have a material impact on our financial position, results of operations or cash flows.

In March 2017, FASB issued ASU 2017-07 Compensation-Retirements Benefits (Topic 715). ASU 2017-07 requires that an employer disaggregate the service cost component from the other components of net benefit cost. The amendments also provide explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. We adopted ASU 2017-07 as of January 1, 2018 and it did not have a material impact on our financial position, results of operations or cash flows.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). Among other clarifications, ASU 2016-15 clarifies certain items, including the classification of payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, which will now be included in the Financing Activities section in the Consolidated Statement of Cash Flows. We adopted ASU 2016 - 15 as of January 1, 2018 and it did not have a material impact on our financial position, results of operations or cash flows, including classification as operating, financing, or investing activities.

In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers Other than Inventory (ASU 2016-16), which requires companies to recognize the income-tax consequences of an intra-entity transfer of an asset other than inventory. We adopted ASU 2016-16 as of January 1, 2018 on a modified retrospective basis. It did not have a material impact on our Consolidated Financial Statements.

Recently Issued Accounting Pronouncements not yet adopted

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), which generally requires companies to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet for operating leases with terms of more than 12 months, in addition to those currently recorded. We are in the process of implementing changes to our systems and processes in conjunction with our review of existing lease agreements. We will adopt Topic 842 effective January 1, 2019 and expect to elect certain available transitional practical expedients. We anticipate this standard will have a material impact on our financial position and results of operations. While we are continuing to assess all potential impacts of the new standard, we currently believe the most significant impact relates to the accounting for office and datacenter operating leases.

In January 2017, the FASB issued ASU 2017-04 Goodwill and Other (Topic 350). ASU 2017-04 simplifies the subsequent measurement of goodwill and reduces the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this amendment, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. This update will be effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of ASU 2017-04 is not expected to have a material impact on our financial position or results of operations.

Revenue Recognition

Adoption of ASC Topic 606, “Revenue from contracts with customers”

On January 1, 2018, we adopted Topic 606 using the modified retrospective method. The new standard had no significant impact on our Consolidated Financial Statements, except for related disclosures which are presented under Topic 606 for reporting periods beginning after January 1, 2018, while prior period disclosures are reported in accordance with previous Topic 605.

Revenue recognition accounting policies

We recognize revenues when we transfer control of promised services directly to our clients or to advertising agencies, which we collectively refer to as our clients, in an amount that reflects the consideration to which we expect to be entitled to in exchange for those services.

All our services consist mainly in serving relevant advertising and banner to clients’ users, using Criteo’s technology, when client’s users are surfing on the web. Our contracts typically include a single promise to stand ready, to display the advertising or banner until a client’s user clicks. This represents a series of distinct repetitive services (units of time) that are substantially the same, with the same pattern of transfer to the client. Accordingly, the promise to stand ready is accounted for as a single performance obligation.

Each performance obligation is satisfied over time as the client continuously receives and consumes the benefits of the services in continue. We generally price our advertising campaigns on a cost per click basis (CPC) model based on the number of clicks generated by users on each advertisement we deliver in our advertising campaigns (variable consideration). Which means that we have a right to invoice our clients when a user clicks on an advertisement displayed by us. Advertising campaigns are billed and paid on a monthly basis. This amount is representative of the value of the service delivered to the client and therefore, applying the right-to-bill practical expedient, we recognize revenue over time based on the users’ clicks.

We act as principal in our arrangements because (i) we control the advertising inventory (spaces on websites) before it is transferred to our clients; (ii) we bear sole responsibility for fulfillment of the advertising promise and inventory risks and (iii) we have full discretion in establishing prices. Therefore, based on these factors, we report revenue earned and the costs incurred related on a gross basis.

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

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Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents our revenues disaggregated by geographical area:

	Americas		EMEA		Asia-Pacific		Total
For the three months ended	(in thousands)
March 31, 2017	$	208,013	$	189,092	$	119,562	$	516,667
March 31, 2018	$	212,695	$	222,611	$	128,858	$	564,164

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Restructuring (Tables)

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table summarizes restructuring activities as of March 31, 2018 included in other current liabilities on the balance sheet:

	Restructuring Liability
	(in thousands)
Restructuring liability - January 1, 2018	$	2,351
Restructuring costs / (gain)	(252		)
Amounts paid	(1,402		)
Other	477
Restructuring liability - March 31, 2018	$	1,174

	Three Months Ended
	March 31, 2018
	(in thousands)
Severance costs	$	(195	)
Facility exit costs	420
Other	(477		)
Total restructuring costs / (gain)	$	(252	)

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Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Schedules of concentration of risk

For each period presented, the aging of trade receivables and allowances for potential losses is as follows:

	December 31, 2017									March 31, 2018
	Gross value		%		Allowance			%		Gross value		%		Allowance			%
	(in thousands)				(in thousands)					(in thousands)				(in thousands)
Not yet due	$	304,233	60.3	%	$	(168	)	0.8	%	$	260,922	62.3	%	$	(236	)	1.0	%
0 - 30 days	121,957		24.2	%	—			—	%	93,522		22.3	%	(508		)	2.1	%
31 - 60 days	29,325		5.8	%	(21		)	0.1	%	24,697		5.9	%	(62		)	0.3	%
61 - 90 days	7,498		1.5	%	(35		)	0.2	%	3,423		0.8	%	(124		)	0.5	%
> 90 days	41,906		8.3	%	(20,594		)	98.9	%	37,103		8.8	%	(23,030		)	96.1	%
Total	$	504,919	100	%	$	(20,818	)	100	%	$	419,667	100	%	$	(23,960	)	100	%

The maximum exposure to credit risk at the end of each reported period is represented by the carrying amount of financial assets, and summarized in the following table:

	December 31, 2017		March 31, 2018
	(in thousands)
Cash and cash equivalents	$	414,111	$	483,874
Trade receivables, net of allowance	484,101		395,707
Other taxes	58,346		52,557
Other current assets	26,327		26,463
Non-current financial assets	19,525		21,137
Total	$	1,002,410	$	979,738

Schedule of financial liabilities

Financial Liabilities

	December 31, 2017		March 31, 2018
	(in thousands)
Trade payables	$	417,032	$	359,296
Other taxes	58,783		52,342
Employee-related payables	66,219		65,646
Other current liabilities	65,677		29,851
Financial liabilities	3,657		3,769
Total	$	611,368	$	510,904

Schedule of derivative financial instruments

	December 31, 2017		March 31, 2018
	(in thousands)
Derivative Assets:
Included in other current assets	$	5,159	$	—
Derivative Liabilities:
Included in financial liabilities - current portion	$	—	$	573

Schedule of assets and liabilities carried at fair value

	December 31, 2017		March 31, 2018
	(in thousands)
Cash and cash equivalents	$	267,236	$	302,060
Money market funds	—		—
Interest-bearing bank deposits	146,875		181,814
Total cash and cash equivalents	$	414,111	$	483,874

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Trade Receivables (Tables)

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Schedules of trade receivables net book value and Changes in allowance for doubtful accounts

The following table shows the breakdown in trade receivables net book value for the presented periods:

	December 31, 2017			March 31, 2018
	(in thousands)
Trade accounts receivables	$	504,919		$	419,667
(Less) Allowance for doubtful accounts	(20,818		)	(23,960		)
Net book value at end of period	$	484,101		$	395,707

Changes in allowance for doubtful accounts are summarized below:

	2017			2018
	(in thousands)
Balance at January 1	$	(11,598	)	$	(20,818	)
Allowance for doubtful accounts	(3,686		)	(4,436		)
Reversal of provision	2,142			1,460
Currency translation adjustment	(87		)	(166		)
Balance at March 31	$	(13,229	)	$	(23,960	)

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Other Current Assets (Tables)

3 Months Ended

Mar. 31, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of other current assets net book value

The following table shows the breakdown in other current assets net book value for the presented periods:

	December 31, 2017		March 31, 2018
	(in thousands)
Prepayments to suppliers	$	3,244	$	3,833
Other debtors	5,694		5,389
Prepaid expenses	12,230		17,241
Derivative instruments	5,159		—
Gross book value at end of period	26,327		26,463
Net book value at end of period	$	26,327	$	26,463

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Intangible Assets and Goodwill (Tables)

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of estimated future amortization expense related to intangible assets

The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows:

	Software		Technology and customer relationships		Total
From April 1 to December 31, 2018	$	7,013	$	10,338	$	17,351
2019	4,775		13,728		18,503
2020	2,876		8,700		11,576
2021	1,401		8,700		10,101
2022	781		8,700		9,481
Thereafter	—		25,372		25,372
Total	$	16,846	$	75,538	$	92,384

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Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Other Liabilities Disclosure [Abstract]

Other current liabilities

Other current liabilities are presented in the following table:

	December 31, 2017		March 31, 2018
	(in thousands)
Clients' prepayments	$	33,495	$	21,473
Accounts payable relating to capital expenditures	30,736		6,261
Other creditors	740		1,451
Deferred revenue	706		666
Total	$	65,677	$	29,851

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Financial Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of changes in current and non-current financial liabilities

The changes in current and non-current financial liabilities during the period ended March 31, 2018 are illustrated in the following schedules:

	As of January 1, 2018		New borrowings		Repayments			Change in scope		Other (1)			Currency translation adjustment		As of March 31, 2018
	(in thousands)
Borrowings	$	982	$	—	$	(238	)	$	—	$	184		$	27	$	955
Other financial liabilities	517		—		(312		)	—		—			14		219
Derivative instruments	—		—		—			—		573			—		573
Current portion	1,499		—		(550		)	—		757			41		1,747
Borrowings	1,798		—		—			—		(184		)	48		1,662
Other financial liabilities	360		—		—			—		—			—		360
Non current portion	2,158		—		—			—		(184		)	48		2,022
Borrowings	2,780		—		(238		)	—		—			75		2,617
Other financial liabilities	877		—		(312		)	—		—			14		579
Derivative instruments	—		—		—			—		573			—		573
Total	$	3,657	$	—	$	(550	)	$	—	$	573		$	89	$	3,769

⁽¹⁾ Includes reclassification from non-current to current portion based on maturity of the financial liabilities.

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of share-based compensation by share-based payment award

Change in Number of BSPCE/OSA/RSU/BSA

	OSA/BSPCE		RSU		BSA	Total
Balance at January 1, 2018	3,192,708		4,212,508		186,276	7,591,492
Granted	794,732		1,417,961		—	2,212,693
Exercised (OSA/BSPCE/BSA)	(36,957	)	—		—	(36,957	)
Vested (RSU)	—		(126,456	)	—	(126,456	)
Forfeited	(68,515	)	(201,714	)	—	(270,229	)
Expired	—		—		—	—
Balance at March 31, 2018	3,881,968		5,302,299		186,276	9,370,543

Breakdown of the Closing Balance

	OSA/BSPCE		RSU	BSA
Number outstanding	3,881,968		5,302,299	186,276
Weighted-average exercise price	€	27.51	NA	€	23.93
Number vested	2,072,722		NA	103,272
Weighted-average exercise price	€	23.75	NA	€	19.08
Weighted-average remaining contractual life of options outstanding, in years	7.39		NA	7.34

Schedule of share-based compensation reconciliation with the Consolidated Statements of Income

Reconciliation with the Unaudited Consolidated Statements of Income

	Three Months Ended
	March 31, 2017												March 31, 2018
	(in thousands)
	R&D			S&O			G&A			Total			R&D			S&O			G&A			Total
RSUs	$	(3,472	)	$	(6,260	)	$	(2,728	)	$	(12,460	)	$	(4,617	)	$	(6,872	)	$	(5,147	)	$	(16,636	)
Share options / BSPCE	(444		)	(450		)	(1,229		)	(2,123		)	(65		)	(359		)	(1,336		)	(1,760		)
Total share-based compensation	(3,916		)	(6,710		)	(3,957		)	(14,583		)	(4,682		)	(7,231		)	(6,483		)	(18,396		)
BSAs	—			—			(357		)	(357		)	—			—			(433		)	(433		)
Total equity awards compensation expense	$	(3,916	)	$	(6,710	)	$	(4,314	)	$	(14,940	)	$	(4,682	)	$	(7,231	)	$	(6,916	)	$	(18,829	)

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Financial Income and Expenses (Tables)

3 Months Ended

Mar. 31, 2018

Other Income and Expenses [Abstract]

Schedule of financial income (expense)

The condensed consolidated statements of income line item “Financial income (expense)” can be broken down as follows:

	Three Months Ended
	March 31, 2017			March 31, 2018
	(in thousands)
Financial income from cash equivalents	$	248		$	225
Interest and fees	(757		)	(556		)
Interest on debt	(568		)	(487		)
Fees	(189		)	(69		)
Foreign exchange gain (loss)	(1,808		)	(972		)
Other financial expense	(16		)	(22		)
Total financial income (expense)	$	(2,333	)	$	(1,325	)

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Provision for income taxes

The condensed consolidated statements of income line item “Provision for income taxes” can be broken down as follows:

	Three Months Ended
	March 31, 2017			March 31, 2018
	(in thousands)
Current income tax	$	(11,071	)	$	(15,532	)
Net change in deferred taxes	6,870			3,146
Provision for income taxes	$	(4,201	)	$	(12,386	)

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule of basic earnings per share

	Three Months Ended
	March 31, 2017		March 31, 2018
Net income attributable to shareholders of Criteo S.A.	$	12,442	$	19,809
Weighted average number of shares outstanding	64,189,194		66,160,375
Basic earnings per share	$	0.19	$	0.30

Schedule of diluted earnings per share

	Three Months Ended
	March 31, 2017		March 31, 2018
Net income attributable to shareholders of Criteo S.A.	$	12,442	$	19,809
Weighted average number of shares outstanding of Criteo S.A.	64,189,194		66,160,375
Dilutive effect of :
Restricted share awards ("RSUs")	1,277,928		865,039
Share options and BSPCE	1,722,009		407,806
Share warrants	93,881		36,518
Weighted average number of shares outstanding used to determine diluted earnings per share	67,283,012		67,469,738
Diluted earnings per share	$	0.18	$	0.29

Schedule of weighted average number of anti-dilutive securities

The weighted average number of securities that were anti-dilutive for diluted EPS for the periods presented but which could potentially dilute EPS in the future are as follows:

	Three Months Ended
	March 31, 2017	March 31, 2018
Restricted share awards	229,730	1,901,128
Share options and BSPCE	442,910	—
Weighted average number of anti-dilutive securities excluded from diluted earnings per share	672,640	1,901,128

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Commitments and contingencies (Tables)

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Changes in provisions for contingencies

Changes in provisions during the presented periods are summarized below:

	Provision for employee-related litigation			Other provisions			Total
	(in thousands)
Balance at January 1, 2018	$	545		$	1,253		$	1,798
Increase							—
Provision used	(370		)	(170		)	(540		)
Provision released not used	—			(456		)	(456		)
Currency translation adjustments	12			22			34
Balance at March 31, 2018	$	187		$	649		$	836
- of which current	187			649			836

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Breakdown of Revenue and Non-Current Assets by Geographical Areas (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Schedule of consolidated revenue for each geographical area

The following tables disclose our consolidated revenue for each geographical area for each of the reported periods. Revenue by geographical area is based on the location of advertisers’ campaigns.

	Americas		EMEA		Asia-Pacific		Total
For the three months ended:	(in thousands)
March 31, 2017	$	208,013	$	189,092	$	119,562	$	516,667
March 31, 2018	$	212,695	$	222,611	$	128,858	$	564,164

Schedule of revenue generated in other significant countries

Revenue generated in other significant countries where we operate is presented in the following table:

	Three Months Ended
	March 31, 2017		March 31, 2018
	(in thousands)
Americas
United States	$	179,663	$	186,052
EMEA
Germany	$	42,614	$	54,515
United Kingdom	$	28,197	$	26,234
Asia-Pacific
Japan	$	85,310	$	92,263

Schedule of non-current assets by geographical area and country

For each reported period, non-current assets (corresponding to the net book value of tangible and intangible assets) are presented in the table below. The geographical information results from the locations of legal entities.

					Of which						Of which		Of which
	Holding		Americas		United States		EMEA		Asia-Pacific		Japan		Singapore		Total
(in thousands)
December 31, 2017	$	100,819	$	113,272	$	112,685	$	18,850	$	25,020	$	10,141	$	10,085	$	257,961
March 31, 2018	$	97,792	$	106,530	$	106,067	$	18,859	$	22,455	$	9,296	$	8,333	$	245,636

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Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 564,164	$ 516,667
Americas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	212,695	208,013
EMEA
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	222,611	189,092
Asia-Pacific
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 128,858	$ 119,562

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Restructuring - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Restructuring of China Operations
Restructuring Cost and Reserve [Line Items]
Restructuring liability		$ 400,000
Restructuring charges	$ 0
Payments for restructuring	400,000
Criteo Predictive Search Discontinuation
Restructuring Cost and Reserve [Line Items]
Restructuring liability	1,174,000	2,351,000
Restructuring charges	(252,000)	$ 4,100,000
Payments for restructuring	1,402,000
Criteo Predictive Search Discontinuation | R&D
Restructuring Cost and Reserve [Line Items]
Restructuring charges	100,000
Criteo Predictive Search Discontinuation | S&O
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(400,000)
Criteo Predictive Search Discontinuation | Share-based Compensation Expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ (500,000)

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Restructuring - Components of Restructuring Charges (Details) - Criteo Predictive Search Discontinuation - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Severance costs	$ (195)
Facility exit costs	420
Other	(477)
Total restructuring costs / (gain)	$ (252)	$ 4,100

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Restructuring - Restructuring Liability (Details) - Criteo Predictive Search Discontinuation - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Restructuring Reserve [Roll Forward]
Restructuring liability - January 1, 2018	$ 2,351
Restructuring costs / (gain)	(252)	$ 4,100
Amounts paid	(1,402)
Other	477
Restructuring liability - March 31, 2018	$ 1,174	$ 2,351

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Financial Instruments - Credit Risks (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Concentration Risk [Line Items]
Allowance for doubtful accounts receivable, period increase (decrease)	$ 3,200	$ 9,200
Credit Concentration Risk
Concentration Risk [Line Items]
Maximum exposure	979,738	1,002,410
Carrying Value | Cash and cash equivalents
Concentration Risk [Line Items]
Maximum exposure	483,874	414,111
Carrying Value | Trade receivables, net of allowances
Concentration Risk [Line Items]
Maximum exposure	395,707	484,101
Carrying Value | Other taxes
Concentration Risk [Line Items]
Maximum exposure	52,557	58,346
Carrying Value | Other current assets
Concentration Risk [Line Items]
Maximum exposure	26,463	26,327
Carrying Value | Non-current financial assets
Concentration Risk [Line Items]
Maximum exposure	$ 21,137	$ 19,525

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Financial Instruments - Trade Receivables (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Gross value	$ 419,667	$ 504,919
Allowance	(23,960)	(20,818)
Not yet due
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Gross value	260,922	304,233
Allowance	(236)	(168)
0 - 30 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Gross value	93,522	121,957
Allowance	(508)	0
31 - 60 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Gross value	24,697	29,325
Allowance	(62)	(21)
61 - 90 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Gross value	3,423	7,498
Allowance	(124)	(35)
Greater than 90 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Gross value	37,103	41,906
Allowance	$ (23,030)	$ (20,594)
Accounts Receivable
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	100.00%	100.00%
Accounts Receivable | Not yet due
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	62.30%	60.30%
Accounts Receivable | 0 - 30 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	22.30%	24.20%
Accounts Receivable | 31 - 60 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	5.90%	5.80%
Accounts Receivable | 61 - 90 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	0.80%	1.50%
Accounts Receivable | Greater than 90 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	8.80%	8.30%
Allowance for Doubtful Accounts
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	100.00%	100.00%
Allowance for Doubtful Accounts | Not yet due
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	1.00%	0.80%
Allowance for Doubtful Accounts | 0 - 30 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	2.10%	0.00%
Allowance for Doubtful Accounts | 31 - 60 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	0.30%	0.10%
Allowance for Doubtful Accounts | 61 - 90 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	0.50%	0.20%
Allowance for Doubtful Accounts | Greater than 90 days
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Concentration risk, percentage	96.10%	98.90%

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Financial Instruments - Financial Liabilities (Details) - Fair value - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trade payables	$ 359,296	$ 417,032
Other taxes	52,342	58,783
Employee-related payables	65,646	66,219
Other current liabilities	29,851	65,677
Financial liabilities	3,769	3,657
Total	$ 510,904	$ 611,368

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Financial Instruments - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Derivative Liabilities:
Included in financial liabilities - current portion	$ 573	$ 0
Fair Value, Inputs, Level 2 | Fair value
Derivative Assets:
Included in other current assets	0	5,159
Derivative Liabilities:
Included in financial liabilities - current portion	$ 573	$ 0

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Financial Instruments - Cash and Cash Equivalents (Details) - Fair Value, Inputs, Level 2 - Fair value - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 483,874	$ 414,111
Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	302,060	267,236
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Interest-bearing bank deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 181,814	$ 146,875

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Trade Receivables - Breakdown in Trade Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade accounts receivables	$ 419,667	$ 504,919
(Less) Allowance for doubtful accounts	(23,960)	(20,818)	$ (13,229)	$ (11,598)
Net book value at end of period	$ 395,707	$ 484,101

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Trade Receivables - Allowance for Doubtful Accounts Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at January 1	$ (20,818)	$ (11,598)
Allowance for doubtful accounts	(4,436)	(3,686)
Reversal of provision	1,460	2,142
Currency translation adjustment	(166)	(87)
Balance at March 31	$ (23,960)	$ (13,229)

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Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepayments to suppliers	$ 3,833	$ 3,244
Other debtors	5,389	5,694
Prepaid expenses	17,241	12,230
Derivative instruments	0	5,159
Gross book value at end of period	26,463	26,327
Net book value at end of period	$ 26,463	$ 26,327

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Intangible Assets and Goodwill - Estimated Amortization Expense (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Estimated Amortization Expense Maturity
From April 1 to December 31, 2018	$ 17,351
2019	18,503
2020	11,576
2021	10,101
2022	9,481
Thereafter	25,372
Total	92,384
Software
Estimated Amortization Expense Maturity
From April 1 to December 31, 2018	7,013
2019	4,775
2020	2,876
2021	1,401
2022	781
Thereafter	0
Total	16,846
Technology and customer relationships
Estimated Amortization Expense Maturity
From April 1 to December 31, 2018	10,338
2019	13,728
2020	8,700
2021	8,700
2022	8,700
Thereafter	25,372
Total	$ 75,538

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Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Clients' prepayments	$ 21,473	$ 33,495
Accounts payable relating to capital expenditures	6,261	30,736
Other creditors	1,451	740
Deferred revenue	666	706
Total	$ 29,851	$ 65,677

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Financial Liabilities - Changes in Current and Non-Current Financial Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Financial Liabilities Activity [Roll Forward]
Borrowings, Current portion, Beginning balance	$ 982
Other financial liabilities, Current portion, Beginning balance	517
Derivative instruments, Current portion, Beginning balance	0
Financial liabilities, Current portion, Beginning balance	1,499
Borrowings, Non current portion, Beginning balance	1,798
Other financial liabilities, Non current portion, Beginning balance	360
Financial liabilities, Non current portion, Beginning balance	2,158
Borrowings, Beginning balance	2,780
Other financial liabilities, Beginning balance	877
Derivative instruments, Beginning balance	0
Financial liabilities, Beginning balance	3,657
New borrowings	0
Repayments of financial liabilities	(550)
Change in scope	0
Other	573
Currency translation adjustment	89
Borrowings, Current portion, Ending balance	955
Other financial liabilities, Current portion, Ending balance	219
Derivative instruments, Current portion, Ending balance	573
Financial liabilities, Current portion, Ending balance	1,747
Borrowings, Non current portion, Ending balance	1,662
Other financial liabilities, Non current portion, Ending balance	360
Financial liabilities, Non current portion, Ending balance	2,022
Borrowings, Ending balance	2,617
Other financial liabilities, Ending balance	579
Derivative instruments, Ending balance	573
Financial liabilities, Ending balance	3,769
Borrowings
Financial Liabilities Activity [Roll Forward]
New borrowings	0
Repayments of borrowings	(238)
Change in scope	0
Other	0
Currency translation adjustment	75
Other financial liabilities
Financial Liabilities Activity [Roll Forward]
New borrowings	0
Repayments of other financial liabilities	(312)
Change in scope	0
Other	0
Currency translation adjustment	14
Derivative instruments
Financial Liabilities Activity [Roll Forward]
Change in scope	0
Other	573
Currency translation adjustment	0
Financial liabilities, Current portion
Financial Liabilities Activity [Roll Forward]
New borrowings	0
Repayments of financial liabilities	(550)
Change in scope	0
Other	757
Currency translation adjustment	41
Financial liabilities, Current portion | Borrowings
Financial Liabilities Activity [Roll Forward]
New borrowings	0
Repayments of borrowings	(238)
Change in scope	0
Other	184
Currency translation adjustment	27
Financial liabilities, Current portion | Other financial liabilities
Financial Liabilities Activity [Roll Forward]
New borrowings	0
Repayments of other financial liabilities	(312)
Change in scope	0
Other	0
Currency translation adjustment	14
Financial liabilities, Current portion | Derivative instruments
Financial Liabilities Activity [Roll Forward]
Change in scope	0
Other	573
Currency translation adjustment	0
Financial liablities, Non current portion
Financial Liabilities Activity [Roll Forward]
New borrowings	0
Repayments of financial liabilities	0
Change in scope	0
Other	(184)
Currency translation adjustment	48
Financial liablities, Non current portion | Borrowings
Financial Liabilities Activity [Roll Forward]
New borrowings	0
Repayments of borrowings	0
Change in scope	0
Other	(184)
Currency translation adjustment	48
Financial liablities, Non current portion | Other financial liabilities
Financial Liabilities Activity [Roll Forward]
New borrowings	0
Repayments of other financial liabilities	0
Change in scope	0
Other	0
Currency translation adjustment	$ 0

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Share-Based Compensation - Narrative (Details) - shares			3 Months Ended
	Mar. 16, 2018	Mar. 01, 2018	Mar. 31, 2018
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)	1,295,513	122,448	1,417,961
OSAs | Senior management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	794,733
Vesting period			2 years

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Share-Based Compensation - Change in Number of BSPCE/OSA/RSU/BSA (Details) - shares			3 Months Ended
	Mar. 16, 2018	Mar. 01, 2018	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Vested, options (in shares)			0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward]
Beginning balance (in shares)			7,591,492
Granted (in shares)			2,212,693
Exercised (in shares)			(36,957)
Vested (in shares)			(126,456)
Forfeited (in shares)			(270,229)
Expired (in shares)			0
Ending balance (in shares)			9,370,543
OSA/BSPCE
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, options (in shares)			3,192,708
Granted, options (in shares)			794,732
Exercised, options (in shares)			(36,957)
Vested, options (in shares)			0
Forfeited, options (in shares)			(68,515)
Expired, options (in shares)			0
Ending balance, options (in shares)			3,881,968
RSU
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares)			4,212,508
Granted (in shares)	1,295,513	122,448	1,417,961
Exercised (in shares)			0
Vested (in shares)			(126,456)
Forfeited (in shares)			(201,714)
Expired (in shares)			0
Ending balance (in shares)			5,302,299
BSAs
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, options (in shares)			186,276
Granted, options (in shares)			0
Exercised, options (in shares)			0
Forfeited, options (in shares)			0
Expired, options (in shares)			0
Ending balance, options (in shares)			186,276

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Share-Based Compensation - Breakdown of the Closing Balance (Details) - € / shares	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
OSA/BSPCE
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number outstanding, options (in shares)	3,881,968	3,192,708
Weighted-average exercise price, options (in Euro per share)	€ 27.51
Number vested, options (in shares)	2,072,722
Weighted-average exercise price, options (in Euro per share)	€ 23.75
Weighted-average remaining contractual life of options outstanding	7 years 4 months 21 days
RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number outstanding (in shares)	5,302,299	4,212,508
BSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number outstanding, options (in shares)	186,276	186,276
Weighted-average exercise price, options (in Euro per share)	€ 23.93
Number vested, options (in shares)	103,272
Weighted-average exercise price, options (in Euro per share)	€ 19.08
Weighted-average remaining contractual life of options outstanding	7 years 4 months 2 days

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Share-Based Compensation - Share-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ (18,396)	$ (14,583)
Total equity awards compensation expense	(18,829)	(14,940)
R&D
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(4,682)	(3,916)
Total equity awards compensation expense	(4,682)	(3,916)
S&O
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(7,231)	(6,710)
Total equity awards compensation expense	(7,231)	(6,710)
G&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(6,483)	(3,957)
Total equity awards compensation expense	(6,916)	(4,314)
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(16,636)	(12,460)
RSUs | R&D
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(4,617)	(3,472)
RSUs | S&O
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(6,872)	(6,260)
RSUs | G&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(5,147)	(2,728)
Share options / BSPCE
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(1,760)	(2,123)
Share options / BSPCE | R&D
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(65)	(444)
Share options / BSPCE | S&O
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(359)	(450)
Share options / BSPCE | G&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	(1,336)	(1,229)
BSAs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Issuance of Stock and Warrants for Services or Claims	(433)	(357)
BSAs | R&D
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Issuance of Stock and Warrants for Services or Claims	0	0
BSAs | S&O
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Issuance of Stock and Warrants for Services or Claims	0	0
BSAs | G&A
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Issuance of Stock and Warrants for Services or Claims	$ (433)	$ (357)

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Financial Income and Expenses - Financial income (expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Income and Expenses [Abstract]
Financial income from cash equivalents	$ 225	$ 248
Interest and fees	(556)	(757)
Interest on debt	(487)	(568)
Fees	(69)	(189)
Foreign exchange gain (loss)	(972)	(1,808)
Other financial expense	(22)	(16)
Total financial income (expense)	$ (1,325)	$ (2,333)

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Financial Income and Expenses - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Income and Expenses [Abstract]
Financial income (expense)	$ (1,325)	$ (2,333)

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Income Taxes - Breakdown of Income Taxes (Details) - USD ($) $ in Thousands		3 Months Ended
	Sep. 27, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Tax Examination [Line Items]
Current income tax		$ (15,532)	$ (11,071)
Net change in deferred taxes		3,146	6,870
Provision for income taxes		$ (12,386)	$ (4,201)
Estimated tax rate		37.00%	29.00%
Effective tax rate		37.00%	22.00%
Internal Revenue Service (IRS)
Income Tax Examination [Line Items]
Estimate of possible loss	$ 15,000

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Earnings Per Share - Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income attributable to shareholders of Criteo S.A.	$ 19,809	$ 12,442
Weighted average number of shares outstanding (in shares)	66,160,375	64,189,194
Basic earnings per share (in USD per share)	$ 0.30	$ 0.19

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Earnings Per Share - Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income attributable to shareholders of Criteo S.A.	$ 19,809	$ 12,442
Weighted average number of shares outstanding (in shares)	66,160,375	64,189,194
Dilutive effect of :
Restricted share awards (RSU's) (in shares)	865,039	1,277,928
Share options and (BSPCEs) (in shares)	407,806	1,722,009
Share warrants (in shares)	36,518	93,881
Weighted average number of shares outstanding used to determine diluted earnings per share (in shares)	67,469,738	67,283,012
Diluted earnings per share (in USD per share)	$ 0.29	$ 0.18

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Earnings Per Share - Weighted Average Number of Anti-Dilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of anti-dilutive securities excluded from diluted earnings per share (in shares)	1,901,128	672,640
Restricted share awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of anti-dilutive securities excluded from diluted earnings per share (in shares)	1,901,128	229,730
Share options / BSPCE
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of anti-dilutive securities excluded from diluted earnings per share (in shares)	0	442,910

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Commitments and contingencies - Commitments (Details)	3 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 EUR (€)	Mar. 31, 2018 USD ($)
Revolving credit facility | RCF | Bank syndicate RCF
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity			€ 350,000,000.0	$ 431,200,000
Long-term line of credit				$ 0
Property Leases
Debt Instrument [Line Items]
Operating lease expenses	$ 9,700,000	$ 8,800,000
Hosting Services
Debt Instrument [Line Items]
Operating lease expenses	$ 12,300,000	$ 13,900,000

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Commitments and contingencies - Contingencies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Loss Contingency Accrual [Roll Forward]
Contingencies accrual, beginning balance	$ 1,798
Increase	0
Provision used	(540)
Provision released not used	(456)
Currency translation adjustments	34
Contingencies accrual, ending balance	836
Contingencies accrual, of which current	836
Provision for employee-related litigation
Loss Contingency Accrual [Roll Forward]
Contingencies accrual, beginning balance	545
Increase
Provision used	(370)
Provision released not used	0
Currency translation adjustments	12
Contingencies accrual, ending balance	187
Contingencies accrual, of which current	187
Other provisions
Loss Contingency Accrual [Roll Forward]
Contingencies accrual, beginning balance	1,253
Increase
Provision used	(170)
Provision released not used	(456)
Currency translation adjustments	22
Contingencies accrual, ending balance	649
Contingencies accrual, of which current	$ 649

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Breakdown of Revenue and Non-Current Assets by Geographical Areas - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) market	Mar. 31, 2017 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of geographical markets | market	3
Revenue from contract with customer	$ 564,164	$ 516,667
Sales Revenue, Net
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	2.20%	1.90%
France
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	$ 41,500	$ 37,500

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Breakdown of Revenue and Non-Current Assets by Geographical Areas - Revenue by Geographical Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	$ 564,164	$ 516,667
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	212,695	208,013
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	222,611	189,092
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	$ 128,858	$ 119,562

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Breakdown of Revenue and Non-Current Assets by Geographical Areas - Revenue by Significant Other Countries (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	$ 564,164	$ 516,667
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	186,052	179,663
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	54,515	42,614
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	26,234	28,197
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from contract with customer	$ 92,263	$ 85,310

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Breakdown of Revenue and Non-Current Assets by Geographical Areas - Other Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	$ 245,636	$ 257,961
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	106,530	113,272
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	106,067	112,685
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	18,859	18,850
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	22,455	25,020
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	9,296	10,141
Singapore
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	8,333	10,085
Holding
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	$ 97,792	$ 100,819