10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

for the quarterly period ended September 30, 2021

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)

Securities registered pursuant to Section 12(b) of the Act

Title of each class		Trading Symbol(s)	Name of each exchange on which registered
American Depositary Shares, each representing one Ordinary Share, nominal value €0.025 per share		CRTO	Nasdaq Global Select Market
Ordinary Shares, nominal value €0.025 per share	*		Nasdaq Global Select Market	*

* Not for trading, but only in connection with the registration of the American Depositary Shares.

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 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).  Yes  ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth 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	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not 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 Act).   Yes  ☐      No x

          As of October 29, 2021, the registrant had 60,722,263 ordinary shares, nominal value €0.025 per share, outstanding.

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION	2
Item 1	Unaudited Financial Statements as of September 30, 2021	2
	Condensed Consolidated Statements of Financial Position (Unaudited)	2
	Condensed Consolidated Statements of Income (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	4
	Condensed Consolidated Statements of Shareholder's Equity (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3	Quantitative and Qualitative Disclosures About Market Risk	58
Item 4	Controls and Procedures	59
PART II	OTHER INFORMATION	60
Item 1	Legal Proceedings	60
Item 1A	Risk Factors	60
Item 6	Exhibits	61
Signatures		62

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 ongoing effect of the COVID-19 pandemic, including its macroeconomic effects, on our business, operations, and financial results, and the effect of governmental restrictions and regulations on our operations and processes;

•the ability of the Criteo Artificial Intelligence (AI) 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, including without limitation the proposed changes to and enhancements of the Chrome browser announced by Google;

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

•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 also refer to Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020, and to Part II, Item 1A "Risk Factors" of our subsequent quarterly reports on 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 factors.

     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

CRITEO S.A. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

	Notes	September 30, 2021		December 31, 2020
		(in thousands)
Assets
Current assets:
Cash and cash equivalents	3	$	497,458	$	488,011
Trade receivables, net of allowances of $44.7 million and $39.9 million at September 30, 2021 and December 31, 2020, respectively	4	439,493		474,055
Income taxes		14,276		11,092
Other taxes		75,214		69,987
Other current assets	5	23,185		21,405
Marketable securities - current portion	3	46,311		—
Total current assets		1,095,937		1,064,550
Property, plant and equipment, net		150,112		189,505
Intangible assets, net		89,288		79,744
Goodwill		330,561		325,805
Right of use assets - operating lease	7	117,273		114,012
Marketable securities - non current portion	3	10,000		41,809
Non-current financial assets		7,371		18,109
Deferred tax assets		13,951		19,876
Total non-current assets		718,556		788,860
Total assets		$	1,814,493	$	1,853,410
Liabilities and shareholders' equity
Current liabilities:
Trade payables	3	$	349,985	$	367,025
Contingencies	14	2,828		2,250
Income taxes		489		2,626
Financial liabilities - current portion	3	489		2,889
Lease liability - operating - current portion	7	31,309		48,388
Other taxes		53,249		58,491
Employee - related payables		72,679		85,272
Other current liabilities	6	38,818		33,390
Total current liabilities		549,846		600,331
Deferred tax liabilities		4,138		5,297
Defined benefit plans	8	6,167		6,167
Financial liabilities - non current portion	3	367		386
Lease liability - operating - non current portion	7	92,859		83,007
Other non-current liabilities		9,864		5,535
Total non-current liabilities		113,395		100,392
Total liabilities		663,241		700,723
Commitments and contingencies
Shareholders' equity:
Common shares, €0.025 par value, 66,315,019 and 66,272,106 shares authorized, issued and outstanding at September 30, 2021, and December 31, 2020, respectively.		2,162		2,161
Treasury stock, 5,544,527 and 5,632,536 shares at cost as of September 30, 2021 and December 31, 2020, respectively.		(122,390)		(85,570)
Additional paid-in capital		727,613		693,164
Accumulated other comprehensive income (loss)		(25,349)		16,028
Retained earnings		534,320		491,359
Equity-attributable to shareholders of Criteo S.A.		1,116,356		1,117,142
Non-controlling interests		34,896		35,545
Total equity		1,151,252		1,152,687
Total equity and liabilities		$	1,814,493	$	1,853,410

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

2

CRITEO S.A.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

			Three Months Ended				Nine Months Ended
	Notes		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
		(in thousands, except share per data)
Revenue	9		$	508,580	$	470,345	$	1,600,968	$	1,411,335
Cost of revenue:
Traffic acquisition costs			(297,619)		(284,401)		(956,364)		(839,463)
Other cost of revenue			(34,935)		(34,608)		(107,011)		(102,328)
Gross profit			176,026		151,336		537,593		469,544
Operating expenses:
Research and development expenses			(33,345)		(30,954)		(106,957)		(99,716)
Sales and operations expenses			(75,619)		(83,659)		(235,724)		(244,414)
General and administrative expenses			(34,877)		(28,672)		(108,779)		(83,772)
Total operating expenses			(143,841)		(143,285)		(451,460)		(427,902)
Income from operations			32,185		8,051		86,133		41,642
Financial expense	11		(154)		(491)		(1,391)		(1,828)
Income before taxes			32,031		7,560		84,742		39,814
Provision for income taxes	12		(7,801)		(2,267)		(22,033)		(11,943)
Net income			$	24,230	$	5,293	$	62,709	$	27,871
Net income available to shareholders of Criteo S.A.			$	23,481	$	5,227	$	60,691	$	26,402
Net income available to non-controlling interests			$	749	$	66	$	2,018	$	1,469
Weighted average shares outstanding used in computing per share amounts:
Basic	13		60,873,594		60,080,598		60,759,613		61,059,345
Diluted	13		64,197,686		61,027,795		64,313,526		61,644,827
Net income allocated to shareholders per share:
Basic	13		$	0.39	$	0.09	$	1.00	$	0.43
Diluted	13		$	0.37	$	0.09	$	0.94	$	0.43

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

3

CRITEO S.A.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Net income	$	24,230	$	5,293	$	62,709	$	27,871
Foreign currency translation differences, net of taxes	(18,394)		25,660		(44,934)		21,312
Actuarial (losses) gains on employee benefits, net of taxes	25		(377)		683		—
Other comprehensive income (loss)	$	(18,369)	$	25,283	$	(44,251)	$	21,312
Total comprehensive income	$	5,861	$	30,576	$	18,458	$	49,183
Attributable to shareholders of Criteo S.A.	$	5,569	$	29,866	$	19,314	$	46,849
Attributable to non-controlling interests	$	292	$	710	$	(856)	$	2,334

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

4

CRITEO S.A.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

	Share capital		Treasury Stock		Additional paid-in capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Equity - attributable to shareholders of Criteo S.A.	Non controlling interest	Total equity
	Common shares		Shares
	(in thousands, except share amounts )
Balance at December 31, 2019	66,197,181	$2,158	(3,903,673)	$(74,900)	$668,389	$(40,105)	$451,725	$1,007,267	$30,721	$1,037,988
Net income	—	—	—	—	—	—	15,459	15,459	969	16,428
Other comprehensive income (loss)	—	—	—	—	—	(14,178)	—	(14,178)	(20)	(14,198)
Issuance of ordinary shares	5,700	—	—	—	39	—	—	39	—	39
Change in treasury stocks	—	—	(629,977)	(4,934)	—	—	(13,305)	(18,239)	—	(18,239)
Share-Based Compensation	—	—	—	—	8,082	—	—	8,082	49	8,131
Other changes in equity (*)	—	—	—	—	—	—	(3,399)	(3,399)	(142)	(3,541)
Balance at March 31, 2020	66,202,881	$2,158	(4,533,650)	$(79,834)	$676,510	$(54,283)	$450,480	$995,031	$31,577	$1,026,608
Net income	—	—	—	—	—	—	5,716	5,716	434	6,150
Other comprehensive income (loss)	—	—	—	—	—	9,986	—	9,986	241	10,227
Issuance of ordinary shares	2,000	—	—	—	13	—	—	13	—	13
Change in treasury stocks	—	—	(1,055,758)	(10,880)	—	—	(3,981)	(14,861)	—	(14,861)
Share-Based Compensation	—	—	—	—	6,765	—	—	6,765	39	6,804
Other changes in equity	—	—	—	—	—	—	32	32	24	56
Balance at June 30, 2020	66,204,881	$2,158	(5,589,408)	$(90,714)	$683,288	$(44,297)	$452,247	$1,002,682	$32,315	$1,034,997
Net income	—	—	—	—	—	—	5,227	5,227	66	5,293
Other comprehensive income (loss)	—	—	—	—	—	24,639	—	24,639	644	25,283
Issuance of ordinary shares	35,150	—	—	—	167	—	—	167	—	167
Change in treasury stocks	—	—	(399,850)	(5,636)	—	—	(4,851)	(10,487)	—	(10,487)
Share-Based Compensation	—	—	—	—	6,391	—	—	6,391	67	6,458
Other changes in equity (**)	(156,859)	(3)	—	3,900	(4,005)	—	309	201	—	201
Balance at September 30, 2020	66,083,172	$2,155	(5,989,258)	$(92,450)	$685,841	$(19,658)	$452,932	$1,028,820	$33,092	$1,061,912

(*) From January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost issued by the Financial Accounting Standards Board (FASB).

(**) Deferred consideration in the context of Storetail Marketing SAS acquisition in 2018.

5

	Share capital		Treasury Stock		Additional paid-in capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Equity - attributable to shareholders of Criteo S.A.	Non controlling interest	Total equity
	Common shares		Shares
	(in thousands, except share amounts )
Balance at December 31, 2020	66,272,106	$2,161	(5,632,536)	$(85,570)	$693,164	$16,027	$491,359	$1,117,142	$35,545	$1,152,687
Net income	—	—	—	—	—	—	22,406	22,406	1,044	23,450
Other comprehensive income (loss)	—	—	—	—	—	(33,852)	—	(33,852)	(2,502)	(36,354)
Issuance of ordinary shares	119,800	3	—	—	2,148	—	—	2,151	—	2,151
Change in treasury stocks(*)	—	—	34,935	(1,693)	—	—	(3,237)	(4,930)	—	(4,930)
Share-Based Compensation	—	—	—	—	6,710	—	—	6,710	50	6,760
Balance at March 31, 2021	66,391,906	$2,164	(5,597,601)	$(87,263)	$702,022	$(17,825)	$510,528	$1,109,626	$34,137	$1,143,763
Net income	—	—	—	—	—	—	14,804	14,804	225	15,029
Other comprehensive income (loss)	—	—	—	—	—	10,387	—	10,387	85	10,472
Issuance of ordinary shares	305,454	9	—	—	7,568	—	—	7,577	—	7,577
Change in treasury stocks	—	—	(482,407)	(24,560)	—	—	(5,439)	(29,999)	—	(29,999)
Share-Based Compensation	—	—	—	—	11,172	—	—	11,172	55	11,227
Balance at June 30, 2021	66,697,360	$2,173	(6,080,008)	$(111,823)	$720,762	$(7,438)	$519,893	$1,123,567	$34,502	$1,158,069
Net income	—	—	—	—	—	—	23,481	23,481	749	24,230
Other comprehensive income (loss)	—	—	—	—	—	(17,911)	—	(17,911)	(458)	(18,369)
Issuance of ordinary shares	(382,341)	16	—	—	12,167	—	—	12,183	—	12,183
Change in treasury stocks	—	(27)	535,481	(10,567)	(18,036)	—	(9,054)	(37,684)	—	(37,684)
Share-Based Compensation	—	—	—	—	12,720	—	—	12,720	103	12,823
Balance at September 30, 2021	66,315,019	$2,162	(5,544,527)	$(122,390)	$727,613	$(25,349)	$534,320	$1,116,356	$34,896	$1,151,252

(*) On February 5, 2021, Criteo's Board of Directors authorized a share repurchase program of up to $100.0 million of the Company's outstanding American Depositary Shares. The change in treasury stocks is comprised of 1,923,860 shares repurchased at an average price of $37.9 offset by 1,144,982 treasury shares used for RSUs vesting and 866,887 treasury shares cancelled.

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

6

CRITEO S.A.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

		Nine Months Ended
		September 30, 2021		September 30, 2020
	(in thousands)
Net income		$	62,709	$	27,871
Non-cash and non-operating items		103,573		105,742
- Amortization and provisions		67,919		79,631
- Net gain or (loss) on disposal of non-current assets		4,694		2,734
- Equity awards compensation expense (1)		32,174		22,465
- Change in deferred taxes		4,568		(7,697)
- Change in income taxes		(5,820)		7,411
- Other		38		1,198
Changes in working capital related to operating activities		(11,381)		7,663
- (Increase) / Decrease in trade receivables		16,654		122,529
- Increase / (Decrease) in trade payables		(5,693)		(95,303)
- (Increase) / Decrease in other current assets		(12,710)		2,288
- Increase/ (Decrease) in other current liabilities		(5,774)		(20,145)
- Change in operating lease liabilities and right of use assets		(3,858)		(1,706)
Cash from operating activities		154,901		141,276
Acquisition of intangible assets, property, plant and equipment		(44,383)		(57,037)
Change in accounts payable related to intangible assets, property, plant and equipment		1,518		13,870
Payment for a business, net of cash acquired		(9,527)		(3)
Change in other non-current financial assets		(13,803)		(20,629)
Cash used for investing activities		(66,195)		(63,799)
Proceeds from borrowings under line-of-credit agreement		—		157,503
Repayment of borrowings		(1,262)		(181)
Proceeds from exercise of stock options		21,688		101
Repurchase of treasury stocks		(72,611)		(43,655)
Change in other financial liabilities		(3,636)		(2,010)
Cash (used for) from financing activities		(55,821)		111,758
Effect of exchange rates changes on cash and cash equivalents		(23,438)		18,746
Net increase in cash and cash equivalents		9,447		207,981
Net cash and cash equivalents at beginning of period		488,011		418,763
Net cash and cash equivalents at end of period		$	497,458	$	626,744
Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds		(23,285)		(12,229)
Cash paid for interest		(1,139)		(819)

(1) Of which $30.8 million and $21.4 million of equity awards compensation expense consisted of share-based compensation expense according to ASC 718 Compensation - stock compensation for the nine months ended September 30, 2021 and 2020, respectively.

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

7

CRITEO S.A.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Criteo S.A. was initially incorporated as a société par actions simplifiée, or S.A.S., under the laws of the French Republic on November 3, 2005, for a period of 99 years and subsequently converted to a société anonyme, or S.A.

We are a global technology company that enables marketers and media owners to drive better commerce outcomes through the world’s leading Commerce Media Platform. We bring richer experiences to every consumer by supporting a fair and open internet that enables discovery, innovation, and choice — powered by trusted and impactful advertising from the world’s marketers and media owners.

We are leading the way of commerce media—a new approach to advertising that combines commerce data and machine learning to target consumers throughout their shopping journey and help marketers and media owners drive commerce outcomes (sales, leads, advertising revenue).

We help marketers and media owners activate 1st-party, privacy-safe data and drive better commerce outcomes through our Commerce Media Platform, a suite of products:

•that offer marketers (brands, retailers, and agencies) the ability to activate and measure their advertising campaigns

•that offer media owners (publishers and retailers) the ability to sell their advertising and promotions inventory

•sitting on top of a dataset and technology that power our entire offering.

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".

8

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 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 on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021. 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) revenue recognition criteria, (2) allowances for credit losses, (3) research tax credits, (4) income taxes, including (i) recognition of deferred tax assets arising from the subsidiaries projected taxable profit for future years, (ii) evaluation of uncertain tax positions associated with our transfer pricing policy and (iii) recognition of income tax position in respect with tax reforms recently enacted in countries we operate, (5) assumptions used in valuing acquired assets and assumed liabilities in business combinations, (6) assumptions used in the valuation of goodwill, intangible assets and right of use assets - operating lease, and (7) assumptions used in the valuation model to determine the fair value of share-based compensation plan.

The severity, magnitude, duration and after-effects of the COVID-19 pandemic on general economic conditions increase uncertainty associated with these estimates, in particular those related to allowance for credit losses, assumptions used in the valuation of goodwill and estimates relating to income taxes.

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, 2020, except for the update to our existing accounting policy described below:

Revenue Recognition

Principal vs Agent:

For certain customer arrangements, related to transactions using our Retail Media Platform, a new self-service solution providing transparency, measurement and control to our brand and retailer customers, we act as agent, because we (i) do not control the advertising inventory before it is transferred to our clients, (ii) do not have inventory risks because we do not purchase the inventory upfront and (iii) have limited discretion in establishing prices as we charge a platform fee based on a percentage of the digital advertising inventory purchased through the use of the platform. Therefore, based on these and other factors, we report the revenue earned and related costs incurred by the Retail Media Platform solution on a net basis.

9

Accounting Pronouncements Adopted in 2021

Effective January 1, 2021, we have adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. The adoption of this new standard did not have a material impact on our consolidated financial statements.

Effective January 1, 2021, we have adopted the FASB ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General. The purpose of this update is to modify disclosure requirements for Defined Benefit Plans. It removes requirements to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year among others. It adds disclosure requirements for the items such as an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The adoption of this new standard did not have a material impact on our consolidated financial statements.

Recent Accounting Pronouncements

Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s Consolidated Financial Statements upon adoption.

10

Note 2. Significant Events and Transactions of the Period

Restructuring

On February 1, 2021, the Company announced a plan to restructure its workforce across functions and regions to better align with the Company's evolution. We expect the plan will be completed by the end of 2021. The Company recorded $4.6 million of restructuring charges for severance related to this plan during the nine months ended September 30, 2021. For the period ended September 30, 2021, $3.4 million was included in Sales and Operations expenses, $1.1 million was included in General and Administrative expenses and $0.1 million was included in Research and Development expenses.

The following table presents the breakdown of restructuring liability as of September 30, 2021, presented as part of employees related payables on the balance sheet:

	(in thousands)
Restructuring liability - January 1, 2021	$	510
Restructuring costs	4,637
Amount paid	(3,600)
Restructuring liability - September 30, 2021	1,547

Acquisition of Doobe In Site Ltd.

On May 18, 2021, we completed the acquisition of all of the outstanding shares of Doobe In Site Ltd. ("Mabaya"), a leading retail media technology company that powers sponsored products and retail media monetization for major ecommerce marketplaces globally. The total consideration paid was $9.9 million for the acquisition of shares. The acquisition was financed by available cash resources. The transaction has been accounted for as a business combination under the acquisition method of accounting. The purchase price allocation is in progress. A preliminary valuation of the fair value of Mabaya's assets acquired and liabilities assumed resulted in the identification of technology of $8.0 million, a $5.1 million employee related payable and a $2.5 million liability relating to a redemption fee payable to a governmental agency. Provisional goodwill amounted to $8.5 million, subject to post-closing purchase price adjustments. Once this valuation analysis is finalized, the estimate of the fair value of the assets acquired and liabilities assumed may be adjusted. The Company will finalize these amounts no later than one year from the acquisition date. In addition, acquisition costs amounting to $0.5 million were fully expensed as incurred.

11

Note 3. Financial Instruments

Financial assets

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:

	September 30, 2021		December 31, 2020
	(in thousands)
Trade receivables, net of allowances	439,493		474,055
Other taxes	75,214		69,987
Other current assets	23,185		21,405
Non-current financial assets	7,371		18,109
Marketable securities	56,311		41,809
Total	$	601,574	$	625,365

For our financial assets, other than trade receivables, net of allowances, the fair value approximates the carrying amount, given the nature of the financial assets and the maturity of the expected cash flows.

Financial Liabilities

	September 30, 2021		December 31, 2020
	(in thousands)
Trade payables	$	349,985	$	367,025
Other taxes	53,249		58,491
Employee-related payables	72,679		85,272
Other current liabilities	38,818		33,390
Financial liabilities	856		3,275
Total	$	515,587	$	547,453

The fair value of financial liabilities approximates the carrying amount, given the nature of the financial liabilities and the maturity of the expected cash outflows.

Fair Value Measurements     

We measure the fair value of our cash equivalents and marketable securities, which include interest-bearing bank deposits, as level 2 measurements because they are valued using observable market data.

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.

12

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.

	September 30, 2021		December 31, 2020
	(in thousands)
Derivative Liabilities:
Included in financial liabilities - current portion	$	(155)	$	925

The fair value of derivative financial instruments approximates the notional amount, given the nature of the derivative financial instruments and the maturity of the expected cash flows.

Cash and Cash Equivalents

The following table presents for each reporting period, the breakdown of cash and cash equivalents:

	September 30, 2021		December 31, 2020
	(in thousands)
Cash equivalents	$	116,834	$	162,457
Cash on hand	380,624		325,554
Total cash and cash equivalents	$	497,458	$	488,011

Cash equivalents are investments in 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. Interest-bearing bank deposits are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

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.

13

Marketable Securities

The following table presents for each reporting period, the breakdown of the fair value of marketable securities:

	September 30, 2021		December 31, 2020
	(in thousands)
Securities Available-for-sale
Term Deposits	$	23,158	$	24,538
Securities Held-to-maturity
Term Deposits	$	33,153	$	17,271
Total	$	56,311	$	41,809

The gross unrealized gains on our marketable securities were not material as of September 30, 2021.

Term deposits are considered a level 2 financial instrument as they are measured using valuation techniques based on observable market data.

The following table classifies our marketable securities by contractual maturities:

	Held-to-maturity		Available-for-sale
	September 30, 2021
	(in thousands)
Due in one year	$	23,153	$	23,158
Due in one to five years	$	10,000	$	—
Total	$	33,153	$	23,158

14

Note 4. Trade Receivables

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

	September 30, 2021		December 31, 2020
	(in thousands)
Trade accounts receivables	$	484,223	$	513,954
(Less) Allowance for credit losses	(44,730)		(39,899)
Net book value at end of period	$	439,493	$	474,055

Changes in allowance for credit accounts are summarized below:

	2021		2020
	(in thousands)
Balance at January 1	$	(39,899)	$	(16,068)
Allowance for credit losses through retained earnings (*)	—		(3,503)
Allowance for credit losses	(9,765)		(26,465)
Reversal of provision	3,895		7,944
Currency translation adjustment	1,039		(185)
Balance at September 30	$	(44,730)	$	(38,277)

(*) On January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost issued by the Financial Accounting Standards Board (FASB). ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. This results in earlier recognition of credit losses. We adopted ASU 2016-13 effective January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings.

We write off accounts receivable balances once the receivables are no longer deemed collectible. During the nine month period ended September 30, 2021, and September 30, 2020, the Company recovered $2.0 million, and $2.8 million, respectively, previously reserved for, and accounted for this as a reversal of provision.

As of September 30, 2021 and December 31, 2020 no customer accounted for 10% or more of trade receivables.

15

Note 5. Other Current Assets

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

	September 30, 2021		December 31, 2020
	(in thousands)
Prepayments to suppliers	$	8,151	$	5,613
Other debtors	4,785		5,991
Prepaid expenses	10,249		9,801
Net book value at end of period	$	23,185	$	21,405

Prepaid expenses mainly consist of costs related to SaaS arrangements.

16

Note 6. Other Current Liabilities

Other current liabilities are presented in the following table:

	September 30, 2021		December 31, 2020
	(in thousands)
Current liabilities to clients	$	15,144	$	12,234
Rebates	16,080		14,433
Accounts payable relating to capital expenditures	4,056		4,721
Other creditors	3,158		1,918
Deferred revenue	380		84
Total	$	38,818	$	33,390

17

Note 7. Leases

The components of lease expense are as follows:

	Three Months Ended
	September 30, 2021						September 30, 2020
	Offices		Data Centers		Total		Offices		Data Centers		Total
	(in thousands)
Lease expense	$	2,383	$	5,703	$	8,086	$	6,969	$	7,199	$	14,168
Short term lease expense	141		26		167		115		—		115
Variable lease expense	63		66		129		307		22		329
Sublease income	(233)		—		(233)		(338)		—		(338)
Total operating lease expense	$	2,354	$	5,795	$	8,149	$	7,053	$	7,221	$	14,274

	Nine Months Ended
	September 30, 2021						September 30, 2020
	Offices		Data Centers		Total		Offices		Data Centers		Total
	(in thousands)
Lease expense	$	15,800	$	18,561	$	34,361	$	20,770	$	20,519	$	41,289
Short term lease expense	342		40		382		332		—		332
Variable lease expense	307		268		575		320		110		430
Sublease income	(709)		—		(709)		(514)		—		(514)
Total operating lease expense	$	15,740	$	18,869	$	34,609	$	20,908	$	20,629	$	41,537

18

Note 8. Employee Benefits

Defined Benefit Plans

According to the French law and the Syntec Collective Agreement, French employees are entitled to compensation paid on retirement.

The following table summarizes the changes in the projected benefit obligation:

	Projected benefit obligation
	(in thousands)
Projected benefit obligation present value at January 1, 2020	$	8,485
Service cost	2,232
Interest cost	95
Actuarial losses (gains)	(5,214)
Currency translation adjustment	569
Projected benefit obligation present value at December 31, 2020	$	6,167
Service cost	1,005
Interest cost	38
Actuarial losses (gains)	(683)
Currency translation adjustment	(360)
Projected benefit obligation present value at September 30, 2021	$	6,167

The Company does not hold any plan assets for any of the periods presented.

The main assumptions used for the purposes of the actuarial valuations are listed below:

	Nine Months Ended	Year ended
	September 30, 2021	December 31, 2020
Discount rate (Corp AA)	1.25%	0.85%
Expected rate of salary increase	5%	5%
Expected rate of social charges	49% - 50%	49% - 50%
Expected staff turnover	—% - 17.8%	—% - 17.8%
Estimated retirement age	Progressive table	Progressive table
Life table	TH-TF 2000-2002 shifted	TH-TF 2000-2002 shifted

19

Defined Contribution Plans

The total expense represents contributions payable to these plans by us at specified rates.

In some countries, the Group’s employees are eligible for pension payments and similar financial benefits. The Group provides these benefits via defined contribution plans. Under defined contribution plans, the Group has no obligation other than to pay the agreed contributions, with the corresponding expense charged to income for the year. The main contributions concern France, the United States (for 401k plans), and the United Kingdom.

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Defined contributions plans included in personnel expenses	$	(3,638)	$	(3,637)	$	(12,638)	$	(11,508)

Note 9. Revenue

Disaggregation of revenue

The following table presents our disaggregated revenues:

	Marketing Solutions		Retail Media		Total
For the three months ended	(in thousands)
September 30, 2021	$	458,622	$	49,958	$	508,580
September 30, 2020	$	412,126	$	58,219	$	470,345

	Marketing Solutions		Retail Media		Total
For the nine months ended	(in thousands)
September 30, 2021	$	1,429,277	$	171,691	$	1,600,968
September 30, 2020	$	1,263,169	$	148,166	$	1,411,335

20

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 nine months ended September 30, 2021, there were five grants of RSUs under the Employee Share Option Plan 13 as defined in Note 19 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020.

On February 25, 2021, 96,450 RSUs were granted to Criteo employees subject to continued employment and 235,850 RSUs and 235,848 PSUs were granted to members of the management subject to continued employment.

On April 29, 2021, 758,979 RSUs were granted to Criteo employees subject to continued employment.

On June 14, 2021, 858,511 RSUs were granted to Criteo employees subject to continued employment and 14,421 PSUs were granted to members of the management subject to continued employment.

On June 24, 2021, 56,500 RSUs were granted to Criteo employees subject to continued employment.

On July 29, 2021, 75,080 RSUs were granted to Criteo employees 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 19 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.

Change in number of outstanding BSPCE / OSA / RSU / BSA

	OSA/BSPCE	RSU/PSU	BSA	Total
Balance at January 1, 2021	2,102,158	4,954,091	343,775	7,400,024
Granted	—	2,331,639	—	2,331,639
Exercised (OSA/BSPCE/BSA)	(898,627)	—	—	(898,627)
Vested (RSU)	—	(1,118,523)	—	(1,118,523)
Forfeited	(389,149)	(464,052)	—	(853,201)
Expired	—	—	—	—
Balance at September 30, 2021	814,382	5,703,155	343,775	6,861,312

Breakdown of the Closing Balance

	OSA/BSPCE		RSU	BSA
Number outstanding	814,382		5,703,155	343,775
Weighted-average exercise price	€	19.82	NA	€	15.12
Number vested	458,600		—	343,775
Weighted-average exercise price	€	24.38	NA	€	15.12
Weighted-average remaining contractual life of options outstanding, in years	6.07		NA	6.04

21

Reconciliation with the Unaudited Consolidated Statements of Income

	Three Months Ended
	September 30, 2021								September 30, 2020
	(in thousands)
	R&D		S&O		G&A		Total		R&D		S&O		G&A		Total
RSUs	$	(4,858)	$	(3,818)	$	(3,931)	$	(12,607)	$	(3,333)	$	(2,957)	$	(595)	$	(6,885)
Share options / BSPCE	—		(58)		(157)		(215)		—		(233)		661		428
Total share-based compensation	(4,858)		(3,876)		(4,088)		(12,822)		(3,333)		(3,190)		66		(6,457)
BSAs	—		—		(467)		(467)		—		—		(346)		(346)
Total equity awards compensation expense	$	(4,858)	$	(3,876)	$	(4,555)	$	(13,289)	$	(3,333)	$	(3,190)	$	(280)	$	(6,803)

	Nine Months Ended
	September 30, 2021								September 30, 2020
	(in thousands)
	R&D		S&O		G&A		Total		R&D		S&O		G&A		Total
RSUs	$	(11,572)	$	(9,026)	$	(9,402)	$	(30,000)	$	(7,771)	$	(8,092)	$	(5,168)	$	(21,031)
Share options / BSPCE	—		(240)		(568)		(808)		—		(288)		(73)		(361)
Total share-based compensation	(11,572)		(9,266)		(9,970)		(30,808)		(7,771)		(8,380)		(5,241)		(21,392)
BSAs	—		—		(1,366)		(1,366)		—		—		(1,073)		(1,073)
Total equity awards compensation expense	$	(11,572)	$	(9,266)	$	(11,336)	$	(32,174)	$	(7,771)	$	(8,380)	$	(6,314)	$	(22,465)

22

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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Financial income from cash equivalents	$	179	$	108	$	505	$	551
Interest and fees	(445)		(677)		(1,491)		(1,920)
Interest on debt	(361)		(437)		(1,242)		(1,455)
Fees	(84)		(240)		(249)		(465)
Foreign exchange gain (loss)	952		107		(367)		(389)
Other financial expense	(840)		(29)		(38)		(70)
Total financial expense	$	(154)	$	(491)	$	(1,391)	$	(1,828)

The $0.2 million and the $1.4 million financial expenses for the three and nine month periods ended September 30, 2021, respectively, were driven by the up-front fees amortization, the non-utilization costs, the financial expense relating to our available Revolving Credit Facility ("RCF") financing and the recognition of a negative impact of foreign exchange reevaluations net of related hedging. At September 30, 2021, our exposure to foreign currency risk was centralized at Criteo S.A. and hedged using foreign currency swaps or forward purchases or sales of foreign currencies.

23

Note 12. Income Taxes

Breakdown of Income Taxes

The tax provision for interim periods is determined using an estimate of our annual effective tax rate (“AETR”), adjusted for discrete items arising in the period. 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:

	Nine Months Ended
	September 30, 2021		September 30, 2020
	(in thousands)
Current income tax	$	(17,465)	$	(19,640)
Net change in deferred taxes	(4,568)		7,697
Provision for income taxes	$	(22,033)	$	(11,943)

For the nine months ended September 30, 2021 and September 30, 2020, we used an annual estimated tax rate of 26% and 30%, respectively, to calculate the provision for income taxes.

Current tax assets and liabilities

The total amount of current tax assets and liabilities consists mainly of prepayments of income taxes and credits of Criteo S.A, Criteo Corp, and Criteo GmbH.

24

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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income attributable to shareholders of Criteo S.A.	$	23,481	$	5,227	$	60,691	$	26,402
Weighted average number of shares outstanding	60,873,594		60,080,598		60,759,613		61,059,345
Basic earnings per share	$	0.39	$	0.09	$	1.00	$	0.43

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 10). There were no other potentially dilutive instruments outstanding as of September 30, 2021 and September 30, 2020. 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, 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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income attributable to shareholders of Criteo S.A.	$	23,481	$	5,227	$	60,691	$	26,402
Weighted average number of shares outstanding of Criteo S.A.	60,873,594		60,080,598		60,759,613		61,059,345
Dilutive effect of :
Restricted share awards ("RSUs")	2,865,581		811,136		3,074,241		440,835
Share options and BSPCE	334,028		128,291		375,211		133,865
Share warrants	124,483		7,770		104,461		10,782
Weighted average number of shares outstanding used to determine diluted earnings per share	64,197,686		61,027,795		64,313,526		61,644,827
Diluted earnings per share	$	0.37	$	0.09	$	0.94	$	0.43

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:

25

	Three Months Ended		Nine Months Ended
	September 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020
Restricted share awards	—	428,949	396,937	2,284,562
Share options and BSPCE	—	140,513	—	93,675
Weighted average number of anti-dilutive securities excluded from diluted earnings per share	—	569,462	396,937	2,378,237

Note 14. Commitments and contingencies

Commitments

Revolving Credit Facilities, Credit Line Facilities and Bank Overdrafts     

We are party to an RCF with a syndicate of banks which allows us to draw up to €350.0 million ($405.3 million).

We are also party to short-term credit lines and overdraft facilities with HSBC plc, BNP Paribas and LCL with an authorization to draw up to a maximum of €21.5 million ($24.9 million) in the aggregate under the short-term credit lines and overdraft facilities. As of September 30, 2021, we had not drawn on any of these facilities. Any loans or overdrafts under these short-term facilities bear interest based on the one month EURIBOR rate or three month EURIBOR rate. As these facilities are exclusively short-term credit and overdraft facilities, our banks have the ability to terminate such facilities on short notice.

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, 2021	$	1,179	$	1,071	$	2,250
Increase	739		785		1,524
Provision used	(388)		—		(388)
Provision released not used*	(398)		—		(398)
Currency translation adjustments	(69)		(91)		(160)
Balance at September 30, 2021	$	1,063	$	1,765	$	2,828
- of which current	1,063		1,765		2,828

*Due to changes in management's latest estimates

The amount of the provisions represents management’s latest estimate of the expected impact.

26

Regulatory matters

As indicated in our Annual Report on Form 10-K for the year ended December 31, 2020, in November 2018, Privacy International filed a complaint with certain data protection authorities, including France's Commission Nationale de l'Informatique et des Libertés ("CNIL"), against Criteo and a number of other similarly situated advertising technology companies, arguing that certain of these companies' practices do not comply with the European Union's General Data Protection Regulation ("GDPR"). In January 2020, CNIL opened a formal investigation into Criteo in response to this complaint, which is still ongoing as per CNIL’s notification to Criteo dated June 23, 2021, which notified the Company of the appointment of an investigator (rapporteur). There can be no assurance that actions by the Company will not be required as a result of the investigation. However, at the current phase of the investigation, due to the absence of any specific grievance or sanction and the lack of any legal grounds therefor, we consider this to be an unasserted claim for which an unfavorable outcome is only reasonably possible, and the amount of the potential loss cannot be reasonably estimated in accordance with "ASC 450 Contingencies”, therefore, we have not accrued a loss contingency.

27

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)
September 30, 2021	$	204,428	$	188,354	$	115,798	$	508,580
September 30, 2020	$	204,618	$	167,800	$	97,927	$	470,345

Revenue generated in France, the country of incorporation of the Parent, amounted to $33.5 million and $30.7 million for the three months ended September 30, 2021 and 2020, respectively.

	Americas		EMEA		Asia-Pacific		Total
For the nine months ended:	(in thousands)
September 30, 2021	$	629,555	$	609,753	$	361,660	$	1,600,968
September 30, 2020	$	582,037	$	517,535	$	311,763	$	1,411,335

Revenue generated in France amounted to $110.3 million and $90.0 million for the nine month ended September 30, 2021 and September 30, 2020, respectively.

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

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Americas
United States	$	179,302	$	185,547	$	559,965	$	528,453
EMEA
Germany	$	49,927	$	39,246	$	156,574	$	129,485
United Kingdom	$	18,936	$	21,597	$	64,340	$	63,274
Asia-Pacific
Japan	$	72,437	$	68,459	$	231,440	$	220,878

28

Other Information

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

					Of which						Of which
	Holding		Americas		United States		EMEA		Asia-Pacific		Japan		Total
(in thousands)
September 30, 2021	$	112,974	$	78,950	$	78,093	$	14,071	$	33,405	$	13,060	$	239,400
December 31, 2020	$	135,516	$	93,389	$	93,030	$	8,746	$	31,598	$	20,532	$	269,249

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 24 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

29

Note 17. Subsequent Events

The Company evaluated all subsequent events that occurred after September 30, 2021 through the date of issuance of the unaudited condensed consolidated financial statements and determined there are no significant events that require adjustments or disclosure.

30

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, 2020, filed with the Securities and Exchange Commission, or "SEC", on February 26, 2021.

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, 2020.

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 2021.

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 related and transformation costs and, acquisition-related costs. 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 related and transformation costs and, acquisition-related costs, 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.

Adjusted Net Income is our net income adjusted to eliminate the impact of equity awards compensation expense, amortization of acquisition-related intangible assets, restructuring related and transformation costs and, acquisition-related costs, 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 related and transformation costs and, acquisition-related costs 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.

31

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.

32

Condensed Consolidated Statements of Income Data (Unaudited):

		Three Months Ended				Nine Months Ended
		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands, except share and per share data)
Revenue		$	508,580	$	470,345	$	1,600,968	$	1,411,335
Cost of revenue (1)
Traffic acquisition costs		(297,619)		(284,401)		(956,364)		(839,463)
Other cost of revenue		(34,935)		(34,608)		(107,011)		(102,328)
Gross profit		176,026		151,336		537,593		469,544
Operating expenses
Research and development expenses (1)		(33,345)		(30,954)		(106,957)		(99,716)
Sales and operations expenses (1)		(75,619)		(83,659)		(235,724)		(244,414)
General and administrative expenses (1)		(34,877)		(28,672)		(108,779)		(83,772)
Total operating expenses		(143,841)		(143,285)		(451,460)		(427,902)
Income from operations		32,185		8,051		86,133		41,642
Financial expense		(154)		(491)		(1,391)		(1,828)
Income before taxes		32,031		7,560		84,742		39,814
Provision for income taxes		(7,801)		(2,267)		(22,033)		(11,943)
Net income		$	24,230	$	5,293	$	62,709	$	27,871
Net income available to shareholders of Criteo S.A.		$	23,481	$	5,227	$	60,691	$	26,402
Net income allocated to shareholders per share:
Basic		$	0.39	$	0.09	$	1.00	$	0.43
Diluted		$	0.37	$	0.09	$	0.94	$	0.43
Weighted average shares outstanding used in computing per share amounts:
Basic		60,873,594		60,080,598		60,759,613		61,059,345
Diluted		64,197,686		61,027,795		64,313,526		61,644,827

(1)Cost of revenue and operating expenses include equity awards compensation expense, pension service costs, depreciation and amortization expense, restructuring related and transformation costs, and acquisition-related costs:

33

Detailed Information on Selected Items (unaudited):

		Three Months Ended				Nine Months Ended
		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Equity awards compensation expense
Research and development expenses		$	4,858	$	3,333	$	11,572	$	7,771
Sales and operations expenses		3,875		3,190		9,880		8,380
General and administrative expenses		4,557		280		11,389		6,314
Total equity awards compensation expense		$	13,290	$	6,803	$	32,841	$	22,465
Pension service costs
Research and development expenses		170		286		520		824
Sales and operations expenses		52		101		158		291
General and administrative expenses		108		185		327		534
Total pension service costs (a)		$	330	$	572	$	1,005	$	1,649
Depreciation and amortization expense
Cost of revenue (data center equipment)		15,520		14,712		46,508		40,581
Research and development expenses (b)		2,557		1,721		6,517		9,029
Sales and operations expenses (c)		3,545		4,176		11,201		12,737
General and administrative expenses		679		1,143		2,420		3,751
Total depreciation and amortization expense		$	22,301	$	21,752	$	66,646	$	66,098
Acquisition-related costs
General and administrative expenses		2,091		112		5,138		112
Total acquisition-related costs		$	2,091	$	112	$	5,138	$	112
Restructuring related and transformation (gain) costs
Research and development expenses		(1,029)		1,985		5,238		3,493
Sales and operations expenses		(106)		5,357		8,812		6,793
General and administrative expenses		(632)		4,839		5,815		5,320
Total Restructuring related and transformation (gain) costs		$	(1,767)	$	12,181	$	19,865	$	15,606

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

(b) Includes acquisition-related amortization of intangible assets of $1.1 million and $0.7 million for the three months ended September 30, 2021 and 2020, respectively and $2.6 million and $6.1 million for the nine months ended September 2021 and, 2020, respectively.

(c) Includes acquisition-related amortization of intangible assets of $2.2 million and $2.2 million for the three months ended September 30, 2021 and 2020, respectively and $6.6 million and $6.5 million for the nine months ended September 30, 2021 and 2020, respectively.

34

Detailed Information on Restructuring related and Transformation costs (unaudited):

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
(Gain) from forfeitures of share-based compensation awards	—		—		(666)		—
Facilities related (gain) costs	(1,645)		7,023		14,692		8,817
Payroll related (gain) costs	(334)		2,858		4,637		4,489
Consulting costs related to transformation	212		2,300		1,202		2,300
Total restructuring related and transformation (gain) costs	$	(1,767)	$	12,181	$	19,865	$	15,606

The $(1.8) million restructuring related and transformation gain for the three month period ended September 30, 2021 almost entirely related to the reversal of certain expenses on the right-sizing of our office footprint.

For the three months ended and the nine months ended September 30, 2021 and September 30, 2020, respectively, the cash outflows related to restructuring related and transformation costs were $4.4 million and $ 6.2 million, and $20.9 million and $13.0 million respectively, and were mainly comprised of payroll costs, broker and termination penalties related to real-estate facilities and other consulting fees.

Consolidated Statements of Financial Position Data (unaudited):

	September 30, 2021		December 31, 2020
	(in thousands)
Cash and cash equivalents	$	497,458	$	488,011
Total assets	1,814,493		1,853,410
Trade receivables, net of credit losses	439,493		474,055
Total financial liabilities	856		3,275
Total liabilities	663,241		700,723
Total equity	$	1,151,252	$	1,152,687

Other Financial and Operating Data (unaudited):

		Three Months Ended				Nine Months Ended
		September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands, except client data)
Number of clients		21,747		20,565		21,747		20,565
Revenue ex-TAC (3)		$	210,961	$	185,944	$	644,604	$	571,872
Adjusted Net Income (4)		$	41,033	$	24,302	$	125,041	$	73,037
Adjusted EBITDA (5)		$	68,430	$	49,471	$	211,628	$	147,572

35

(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 Gross Profit to revenue, the most directly comparable U.S. GAAP measure, for each of the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Revenue	$	508,580	$	470,345	$	1,600,968	$	1,411,335
Adjustment:
Traffic acquisition costs	(297,619)		(284,401)		(956,364)		(839,463)
Revenue ex-TAC	$	210,961	$	185,944	$	644,604	$	571,872

36

(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 related and transformation costs and, acquisition-related costs, 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 related and transformation costs and, acquisition-related costs, 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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Net income	$	24,230	$	5,293	$	62,709	$	27,871
Adjustments:
Equity awards compensation expense	13,290		6,803		32,841		22,465
Amortization of acquisition-related intangible assets	3,303		2,899		9,174		12,594
Acquisition-related costs	2,091		112		5,138		112
Restructuring related and transformation (gain) costs	(1,767)		12,181		19,865		15,606
Tax impact of the above adjustments	(114)		(2,986)		(4,686)		(5,611)
Adjusted Net Income	$	41,033	$	24,302	$	125,041	$	73,037

37

(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 related and transformation costs and, acquisition-related costs. 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 related and transformation costs and, acquisition-related costs 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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Net income	$	24,230	$	5,293	$	62,709	$	27,871
Adjustments:
Financial expense	154		491		1,391		1,828
Provision for income taxes	7,801		2,267		22,033		11,943
Equity awards compensation expense	13,290		6,803		32,841		22,465
Pension service costs	330		572		1,005		1,649
Depreciation and amortization expense	22,301		21,752		66,646		66,098
Acquisition-related costs	2,091		112		5,138		112
Restructuring related and transformation (gain) costs	(1,767)		12,181		19,865		15,606
Total net adjustments	44,200		44,178		148,919		119,701
Adjusted EBITDA	$	68,430	$	49,471	$	211,628	$	147,572

38

Results of Operations for the Periods Ended September 30, 2021 and September 30, 2020 (Unaudited)

Revenue breakdown by region

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended
	September 30, 2021		September 30, 2020		2021 vs 2020
	(in thousands)
Revenue as reported	$	508,580	$	470,345	8	%
Conversion impact U.S. dollar/other currencies	$	1,050
Revenue at constant currency (1)	509,630		470,345		8	%
Americas
Revenue as reported	204,428		204,618		(0.1)	%
Conversion impact U.S. dollar/other currencies	$	(538)
Revenue at constant currency (1)	203,890		204,618		(0.4)	%
EMEA
Revenue as reported	188,354		167,800		12	%
Conversion impact U.S. dollar/other currencies	$	(686)
Revenue at constant currency (1)	187,668		167,800		12	%
Asia-Pacific
Revenue as reported	115,798		97,927		18	%
Conversion impact U.S. dollar/other currencies	$	2,274
Revenue at constant currency(1)	$	118,072	$	97,927	21	%

Revenue breakdown by solution

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended
	September 30, 2021		September 30, 2020		2021 vs 2020
	(in thousands)
Revenue as reported	$	508,580	$	470,345	8	%
Conversion impact U.S. dollar/other currencies	$	1,050
Revenue at constant currency (1)	$	509,630	$	470,345	8	%
Marketing Solutions as reported	$	458,622	$	412,126	11	%
Conversion impact U.S. dollar/other currencies	$	1,404
Marketing Solutions at constant currency (1)	460,026		412,126		12	%
Retail Media as reported (2)	49,958		58,219		(14)	%
Conversion impact U.S. dollar/other currencies	$	(354)
Retail Media at constant currency (1)	49,604		58,219		(15)	%

(1) Revenue at constant currency excludes the impact of foreign currency fluctuations and is computed by applying the 2020 average exchange rates for the relevant period to 2021 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.

39

(2) Criteo operates as one operating segment. From January 1,2021 we have disaggregated revenues between Marketing Solutions and Retail Media. A strategic building block of Criteo’s Commerce Media Platform, the Retail Media Platform, introduced in June 2020, is a self-service solution providing transparency, measurement and control to brands and retailers. In all arrangements running on this platform, Criteo recognizes revenue on a net basis, whereas revenue from arrangements running on legacy Retail Media solutions are accounted for on a gross basis. We expect most clients using Criteo’s legacy Retail Media solutions to transition to this platform by the second half of 2022. As new clients onboard and existing clients transition to the Retail Media Platform, Revenue may decline but Revenue ex-TAC margin will likely increase. Revenue ex-TAC will not be impacted by this transition.

Revenue for the three months ended September 30, 2021 increased 8% or (8% on a constant currency basis) to $508.6 million compared to the three months ended September 30, 2020.

In the quarter, 72% of the year-over-year revenue increase was driven by the higher contribution from our existing clients while 28% came from new client additions. We added 1,182 net new clients year-over-year across regions, while revenue from existing clients increased by 5% at constant currency over the period.

Revenue by region

Our revenue in the Americas region was flat (or declined (0.4)% on a constant currency basis), including a decrease of (3)% in the U.S., to $204.4 million for the three months ended September 30, 2021 compared to the three months ended September 30, 2020, reflecting the impact of recognizing revenue on a net basis for clients transitioning to the Retail Media Platform ("RMP"). On a Revenue ex-TAC basis, our Americas business was up 19% year-over-year (or 18% on a constant currency basis), driven by positive retail trends across Marketing Solutions with strong performance among strategic accounts and continued momentum in Omnichannel, as well as continued strength in Retail Media reflecting scaling of the RMP with large retailers and brands.

Our revenue in EMEA increased 12% (or 12% on a constant currency basis), to $188.4 million for the three months ended September 30, 2021 compared to the three months ended September 30, 2020, driven by strength in retail in our main markets, in particular in Germany, and solid traction in Retail Media, especially in the U.K. and France, offsetting continued softness from a well-known large travel client.

Our revenue in the Asia-Pacific region increased 18% (or 21% on a constant currency basis), to $115.8 million for the three months ended September 30, 2021 compared to the three months ended September 30, 2020, driven by the strong recovery of our retail business in the region, in particular among strategic accounts, and improving Classifieds trends.

Revenue by solution

Marketing Solutions revenue increased 11% (or 12% on a constant currency basis), to $458.6 million for the three months ended September 30, 2021, driven by healthy demand from retail clients, both on our retargeting and audience targeting solutions, partially offset by continued identity and privacy changes, as expected, and continued softness from a well-known large travel client.

Retail Media revenue decreased (14)% (or (15)% on a constant currency basis), to $50.0 million for the three months ended September 30, 2021, reflecting the impact of recognizing revenue on a net basis for clients transitioning to the RMP. Criteo's RMP accounts for a fast-growing share of Retail Media revenue, or about 62% in the third quarter of 2021, and its revenue is accounted for on a net basis. In the prior year period, less than 5% of retail media revenue was accounted for on a net basis, and as a result of this transition to a full RMP business, the growth of Retail Media revenue is temporarily impacted. Reflecting the underlying economic performance, Retail Media's Revenue ex-TAC increased 65% (or 65% on a constant currency basis) in the third quarter of 2021, driven by continued strength in Retail Media onsite, in particular in the U.S. market, and growing network effects of the RMP.

Additionally, our $508.6 million of revenue for the three months ended September 30, 2021 was negatively impacted by $1.1 million of currency fluctuations, particularly as a result of the depreciation of the Turkish Lira, Russian Ruble, Japanese Yen and the Brazilian real, partially offset by the appreciation of the Euro and the British pound sterling, compared to the U.S. dollar.

40

Revenue breakdown by region

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended
	September 30, 2021		September 30, 2020		2021 vs 2020
	(in thousands)
Revenue as reported	$	1,600,968	$	1,411,335	13	%
Conversion impact U.S. dollar/other currencies	$	(34,266)
Revenue at constant currency (1)	1,566,702		1,411,335		11	%
Americas
Revenue as reported	629,555		582,037		8	%
Conversion impact U.S. dollar/other currencies	$	1,156
Revenue at constant currency (1)	630,711		582,037		8	%
EMEA
Revenue as reported	609,753		517,535		18	%
Conversion impact U.S. dollar/other currencies	$	(31,004)
Revenue at constant currency (1)	578,749		517,535		12	%
Asia-Pacific
Revenue as reported	361,660		311,763		16	%
Conversion impact U.S. dollar/other currencies	$	(4,418)
Revenue at constant currency(1)	$	357,242	$	311,763	15	%

Revenue breakdown by solution

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended
	September 30, 2021		September 30, 2020		2021 vs 2020
	(in thousands)
Revenue as reported	$	1,600,968	$	1,411,335	13	%
Conversion impact U.S. dollar/other currencies	$	(34,266)
Revenue at constant currency (1)	$	1,566,702	$	1,411,335	11	%
Marketing Solutions as reported	$	1,429,277	$	1,263,169	13	%
Conversion impact U.S. dollar/other currencies	$	(31,096)
Marketing Solutions at constant currency (1)	1,398,181		1,263,169		11	%
Retail Media as reported (2)	171,691		148,166		16	%
Conversion impact U.S. dollar/other currencies	$	(3,170)
Retail Media at constant currency (1)	168,521		148,166		14	%

(1) Revenue at constant currency excludes the impact of foreign currency fluctuations and is computed by applying the 2020 average exchange rates for the relevant period to 2021 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.

41

(2) Criteo operates as one operating segment. From January 1,2021 we have disaggregated revenues between Marketing Solutions and Retail Media. A strategic building block of Criteo’s Commerce Media Platform, the Retail Media Platform, introduced in June 2020, is a self-service solution providing transparency, measurement and control to brands and retailers. In all arrangements running on this platform, Criteo recognizes revenue on a net basis, whereas revenue from arrangements running on legacy Retail Media solutions are accounted for on a gross basis. We expect most clients using Criteo’s legacy Retail Media solutions to transition to this platform by the second half of 2022. As new clients onboard and existing clients transition to the Retail Media Platform, Revenue may decline but Revenue ex-TAC margin will likely increase. Revenue ex-TAC will not be impacted by this transition.

Revenue for the nine months ended September 30, 2021 increased 13% (or 11% on a constant currency basis, as defined in footnote 1 above) to $1,601.0 million, compared to the nine months ended September 30, 2020.

In the first nine months of 2021, 84% of the year-over-year increase in revenue was driven by the higher contribution from our existing clients while 16% came from new client additions. We added 1,182 net new clients year-over-year across regions.

Revenue by region

Our revenue in the Americas region increased 8% (or 8% on a constant currency basis), including 6% in the U.S., to $629.6 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020, driven by positive retail trends, in particular with large customers across Marketing Solutions, and continued strong performance of Retail Media, as the RMP continues to scale with consumer brands and large retailers, and reflecting the impact of recognizing revenue on a net basis for clients transitioning to the RMP.

Our revenue in EMEA increased 18% (or 12% on a constant currency basis) to $609.8 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020, driven by positive retail trends in our main markets, in particular in Germany, positive traction with large customers across our retargeting and new solutions, and continued strong performance of Retail Media.

Our revenue in the Asia-Pacific region increased 16% (or 15% on a constant currency basis) to $361.7 million for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020, mainly driven by the recovery of retail accounts in the region.

Revenue by solution

Marketing Solutions revenue increased 13% (or 11% on a constant currency basis) to $1,429.3 million for the nine months ended September 30, 2021, reflecting increased spend from Retail clients, both on our retargeting and audience targeting solutions, partially offset by continued identity and privacy changes, as expected, and continued softness from a large travel client.

Retail Media revenue increased 16% (or 14% on a constant currency basis) to $171.7 million for the nine months ended September 30, 2021, driven by strong performance with large retailers across the U.S. and EMEA, partially offset by the technical and transitory impact related to the ongoing client migration to the RMP. Criteo's RMP accounts for a fast-growing share of Retail Media revenue, or about 39% for the first nine months ended September 30, 2021, and its revenue is accounted for on a net basis. In the prior year period, less than 5% of Retail Media revenue was accounted for on a net basis, and as a result of this transition to a full RMP business, the growth of Retail Media revenue is temporarily impacted. Reflecting the underlying economic performance, Retail Media's Revenue ex-TAC increased 73% (or 70% on a constant currency basis) in the nine months ended September 30, 2021, driven by continued strength in Retail Media onsite, in particular in the U.S. market, and growing network effects of the RMP.

Additionally, our $1,601.0 million of revenue for the nine months ended September 30, 2021 was positively impacted by $(34.3) of currency fluctuations, particularly as a result of the depreciation of the Turkish Lira, Russian Ruble, Japanese Yen and the Brazilian real, partially offset by the appreciation of the Euro and the British pound sterling, compared to the U.S. dollar.

42

Cost of Revenue

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Traffic acquisition costs*	$	(297,619)		$	(284,401)		5%
Other cost of revenue	$	(34,935)		$	(34,608)		1%
Total Cost of Revenue	$	(332,554)		$	(319,009)		4%
% of revenue	(65)		%	(68)		%
Gross profit %	35		%	32		%

*Traffic acquisition costs breakdown by solution:

	Three Months Ended				% change
	September 30, 2021		September 30, 2020		2021 vs 2020
	(in thousands, except percentages)
Marketing Solutions	$	(276,498)	$	(243,616)	13%
Retail Media (1)	$	(21,121)	$	(40,785)	(48)%
Traffic Acquisition Costs	$	(297,619)	$	(284,401)	5%

Cost of revenue for the three months ended September 30, 2021 increased $13.5 million, or 4%, compared to the three months ended September 30, 2020. This increase was primarily the result of an increase of $13.2 million, or 5% (or 5% on a constant currency basis) in traffic acquisition costs driven by higher volume, and an increase of $0.3 million, or 1% (or 2% on a constant currency basis) in other cost of revenue.

Traffic acquisition costs in Marketing Solutions increased by 13%. This was driven by an 8% increase (or 9% at constant currency) in the average cost per thousand impressions ("CPM") for inventory purchased, reflecting the year-over-year recovery in the digital advertising market following the trough of the pandemic-related recession in the second quarter of 2020 and our preferred relationships with media owners, and a 5% increase in the number of impressions we purchased, reflecting our expanding relationships with existing and new publisher partners, in particular through direct connections, to support client demand for advertising campaigns.

Traffic acquisition costs in Retail Media(1) decreased by (48)%, reflecting the technical and transitory impact related to the ongoing client migration due to the transitioning of our RMP. Because we recognize revenue on a net basis in all arrangements running on the RMP, we expect our Traffic acquisition costs for Retail Media to decrease over time as all of our clients are transitioned to the RMP.

The increase in other cost of revenue included a $(0.8) million increase in allocated depreciation and amortization expense following the acquisitions of servers and other equipment used in our data centers and a $(0.6) million increase in other costs of sales mainly due to the digital tax, offset by a $1.1 million decrease in hosting and data acquisition costs.

(1) Criteo operates as one operating segment. From January 1,2021 we have disaggregated revenues between Marketing Solutions and Retail Media. A strategic building block of Criteo’s Commerce Media Platform, the Retail Media Platform, introduced in June 2020, is a self-service solution providing transparency, measurement and control to brands and retailers. In all arrangements running on this platform, Criteo recognizes revenue on a net basis, whereas revenue from arrangements running on legacy Retail Media solutions are accounted for on a gross basis. We expect most clients using Criteo’s legacy Retail Media solutions to transition to this platform by the second half of 2022. As new clients onboard and existing clients transition to the Retail Media Platform, Revenue may decline but Revenue ex-TAC margin will likely increase. Revenue ex-TAC will not be impacted by this transition.

43

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 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 allows us to control our level of Revenue ex-TAC margin.

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Traffic acquisition costs*	$	(956,364)		$	(839,463)		14%
Other cost of revenue	$	(107,011)		$	(102,328)		5%
Total Cost of Revenue	$	(1,063,375)		$	(941,791)		13%
% of revenue	(66)		%	(67)		%
Gross profit %	34		%	33		%

*Traffic acquisition costs breakdown by solution:

	Nine Months Ended				% change
	September 30, 2021		September 30, 2020		2021 vs 2020
	(in thousands, except percentages)
Marketing Solutions	$	(861,503)	$	(735,663)	17%
Retail Media (1)	$	(94,861)	$	(103,800)	(9)%
Traffic Acquisition Costs	$	(956,364)	$	(839,463)	14%

Cost of revenue for the nine months ended September 30, 2021 increased $121.6 million, or 13%, compared to the nine months ended September 30, 2020. This increase was primarily the result of an increase of $116.9 million, or 14% (or 11% on a constant currency basis), in traffic acquisition costs and an increase of $4.7 million, or 5% (or 4% on a constant currency basis), in other cost of revenue.

Traffic acquisition costs in Marketing Solutions increased by 17%, driven by a 8% increase (or 6% at constant currency) in the average CPM for inventory purchased, reflecting the year-over-year recovery in the digital advertising market following the trough of the pandemic-related recession in the second quarter of 2020 and our preferred relationships with media owners, as well as a 8% increase in the number of impressions we purchased, reflecting our expanding relationships with existing and new publisher partners, in particular through direct connections, to support client demand for advertising campaigns.

(1) Criteo operates as one operating segment. From January 1,2021 we have disaggregated revenues between Marketing Solutions and Retail Media. A strategic building block of Criteo’s Commerce Media Platform, the Retail Media Platform, introduced in June 2020, is a self-service solution providing transparency, measurement and control to brands and retailers. In all arrangements running on this platform, Criteo recognizes revenue on a net basis, whereas revenue from arrangements running on legacy Retail Media solutions are accounted for on a gross basis. We expect most clients using Criteo’s legacy Retail Media solutions to transition to this platform by the second half of 2022. As new clients onboard and existing clients transition to the Retail Media Platform, Revenue may decline but Revenue ex-TAC margin will likely increase. Revenue ex-TAC will not be impacted by this transition.

44

Traffic acquisition costs in Retail Media(1) decreased by (9)%, reflecting the technical and transitory impact related to the ongoing client migration due to the transitioning of our RMP. Because we recognize revenue on a net basis in all arrangements running on the RMP, we expect our Traffic acquisition costs for Retail Media to decrease over time as all of our clients are transitioned to the RMP.

The increase in other cost of revenue included a $(5.9) million increase in allocated depreciation and amortization expense following the acquisitions of servers and other equipment used in our data centers, a $(3.2) million increase in other costs, including the provision for digital taxes offset by a $3.8 million decrease in hosting costs and a $0.8 million decrease in data acquisition costs.

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 allows us to control our level of Revenue ex-TAC margin.

(1) Criteo operates as one operating segment. From January 1,2021 we have disaggregated revenues between Marketing Solutions and Retail Media. A strategic building block of Criteo’s Commerce Media Platform, the Retail Media Platform, introduced in June 2020, is a self-service solution providing transparency, measurement and control to brands and retailers. In all arrangements running on this platform, Criteo recognizes revenue on a net basis, whereas revenue from arrangements running on legacy Retail Media solutions are accounted for on a gross basis. We expect most clients using Criteo’s legacy Retail Media solutions to transition to this platform by the second half of 2022. As new clients onboard and existing clients transition to the Retail Media Platform, Revenue may decline but Revenue ex-TAC margin will likely increase. Revenue ex-TAC will not be impacted by this transition.

45

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								Nine Months Ended
Region	September 30, 2021		September 30, 2020		YoY Change		YoY Change at Constant Currency		September 30, 2021		September 30, 2020		YoY Change		YoY Change at Constant Currency
Revenue	(amounts in thousands, except percentages)
Americas	$	204,428	$	204,618	—	%	—	%	$	629,555	$	582,037	8	%	8	%
EMEA	188,354		167,800		12	%	12	%	609,753		517,535		18	%	12	%
Asia-Pacific	115,798		97,927		18	%	21	%	361,660		311,763		16	%	15	%
Total	508,580		470,345		8	%	8	%	1,600,968		1,411,335		13	%	11	%
Traffic Acquisition Costs
Americas	(116,796)		(130,756)		(11)	%	(11)	%	(378,756)		(366,095)		3	%	4	%
EMEA	(111,869)		(97,272)		15	%	15	%	(363,264)		(295,822)		23	%	16	%
Asia-Pacific	(68,954)		(56,373)		22	%	25	%	(214,344)		(177,546)		21	%	19	%
Total	(297,619)		(284,401)		5	%	5	%	(956,364)		(839,463)		14	%	11	%
Revenue ex-TAC (1)
Americas	87,632		73,862		19	%	18	%	250,799		215,942		16	%	16	%
EMEA	76,485		70,528		8	%	8	%	246,489		221,713		11	%	6	%
Asia-Pacific	46,844		41,554		13	%	15	%	147,316		134,217		10	%	8	%
Total	$	210,961	$	185,944	13	%	14	%	$	644,604	$	571,872	13	%	10	%

	Three Months Ended								Nine Months Ended
Solution	September 30, 2021		September 30, 2020		YoY Change		YoY Change at Constant Currency		September 30, 2021		September 30, 2020		YoY Change		YoY Change at Constant Currency
Revenue	(amounts in thousands, except percentages)
Marketing Solutions	$	458,622	$	412,126	11	%	12	%	$	1,429,277	$	1,263,169	13	%	11	%
Retail Media	49,958		58,219		(14)	%	(15)	%	171,691		148,166		16	%	14	%
Total	508,580		470,345		8	%	8	%	1,600,968		1,411,335		13	%	11	%
Traffic Acquisition Costs
Marketing Solutions	(276,498)		(243,616)		13	%	14	%	(861,503)		(735,663)		17	%	15	%
Retail Media	(21,121)		(40,785)		(48)	%	(49)	%	(94,861)		(103,800)		(9)	%	(10)	%
Total	(297,619)		(284,401)		5	%	5	%	(956,364)		(839,463)		14	%	11	%
Revenue ex-TAC (1)
Marketing Solutions	182,124		168,510		8	%	8	%	567,774		527,506		8	%	5	%
Retail Media	28,837		17,434		65	%	65	%	76,830		44,366		73	%	70	%
Total	210,961		185,944		13	%	14	%	644,604		571,872		13	%	10	%

46

(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.

47

Constant Currency Reconciliation

Information in this Form 10-Q with respect to results presented on a constant currency basis was calculated by applying the 2020 average exchange rates for the relevant period to 2021 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								Nine Months Ended
	September 30, 2021			September 30, 2020			YoY Change		September 30, 2021			September 30, 2020			YoY Change
	(amounts in thousands, except percentages)
Revenue as reported	$	508,580		$	470,345		8	%	$	1,600,968		$	1,411,335		13	%
Conversion impact U.S. dollar/other currencies	1,050			—					(34,266)			—
Revenue at constant currency	$	509,630		$	470,345		8	%	$	1,566,702		$	1,411,335		11	%
Traffic acquisition costs as reported	$	(297,619)		$	(284,401)		5	%	$	(956,364)		$	(839,463)		14	%
Conversion impact U.S. dollar/other currencies	(771)			—					20,829			—
Traffic Acquisition Costs at constant currency	$	(298,390)		$	(284,401)		5	%	$	(935,535)		$	(839,463)		11	%
Revenue ex-TAC as reported	$	210,961		$	185,944		13	%	$	644,604		$	571,872		13	%
Conversion impact U.S. dollar/other currencies	279			—					(13,436)			—
Revenue ex-TAC at constant currency	$	211,240		$	185,944		14	%	$	631,168		$	571,872		10	%
Revenue ex-TAC/Revenue as reported	41		%	40		%			40		%	41		%
Other cost of revenue as reported	$	(34,935)		$	(34,608)		1	%	$	(107,011)		$	(102,328)		5	%
Conversion impact U.S. dollar/other currencies	(334)			—					547			—
Other cost of revenue at constant currency	$	(35,269)		$	(34,608)		2	%	$	(106,464)		$	(102,328)		4	%
Adjusted EBITDA as reported	$	68,430		$	49,471		38	%	$	211,628		$	147,572		43	%
Conversion impact U.S. dollar/other currencies	(674)			—					(9,698)			—
Adjusted EBITDA at constant currency	$	67,756		$	49,471		37	%	$	201,930		$	147,572		37	%

48

Research and Development Expenses

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Research and development expenses	$	(33,345)		$	(30,954)		8%
% of revenue	(7)		%	(7)		%

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Research and development expenses	$	(106,957)		$	(99,716)		7%
% of revenue	(7)		%	(7)		%

Research and development expenses for the three months ended and the nine months ended September 30, 2021, respectively, increased $(2.4) million and $(7.2) million or 8% and 7%, compared to the three months ended and the nine months ended September 30, 2020. This increase mainly relates to the negative impact of our increasing stock price on compensation expense.

49

Sales and Operations Expenses

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Sales and operations expenses	$	(75,619)		$	(83,659)		(10)%
% of revenue	(15)		%	(18)		%

Sales and operations expenses for the three months ended September 30, 2021 decreased $8.0 million or (10)% compared to the three months ended September 30, 2020. This decrease mainly related to a decrease of net bad debt expense, lower rent and facilities and depreciation and amortization costs, offset by a higher share-based compensation expense and marketing costs.

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Sales and operations expenses	$	(235,724)		$	(244,414)		(4)%
% of revenue	(15)		%	(17)		%

Sales and operations expenses for the nine months ended September 30, 2021, decreased $8.7 million or (4)%, compared to the nine months ended September 30, 2020. This decrease was mainly driven by lower net bad debt expense, lower depreciation and amortization costs and lower rent and facilities costs due to the right-sizing of our real estate footprint, partially offset by the reversal of a provision that was settled in 2020 and the negative impact of our increasing stock price on compensation expense.

50

General and Administrative Expenses

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
General and administrative expenses	$	(34,877)		$	(28,672)		22%
% of revenue	(7)		%	(6)		%

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
General and administrative expenses	$	(108,779)		$	(83,772)		30%
% of revenue	(7)		%	(6)		%

General and administrative expenses for the three months ended and the nine months ended September 30, 2021, respectively, increased $(6.2) million and $(25.0) million or 22% and 30%, compared to the three months ended and the nine months ended September 30, 2020. This increase was mainly related to an increase in third-party services as part of our on-going transformation program and an increase in headcount related costs including the negative impact of our increasing stock price on compensation expense.

51

Financial Expense

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Financial expense	$	(154)		$	(491)		(69)%
% of revenue	—		%	(0.1)		%

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Financial expense	$	(1,391)		$	(1,828)		(24)%
% of revenue	(0.1)		%	(0.1)		%

Financial expense for the three months ended and the nine months ended September 30, 2021, decreased by $(0.3) million and $(0.4) million or (69)% and (24)%, respectively, compared to the three months ended and the nine months ended period September 30, 2020. The $0.2 million and $1.4 million financial expense for the three months ended and nine months ended September 30, 2021, respectively, was driven by the up-front fees amortization, the non-utilization costs and the financial expense relating to our available Revolving Credit Facility financing and the negative impact of foreign exchange reevaluations net of related hedging. At September 30, 2021, our exposure to foreign currency risk was centralized at Criteo S.A. and hedged using foreign currency swaps or forward purchases or sales of foreign currencies.

52

Provision for Income Taxes

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Provision for income taxes	$	(7,801)		$	(2,267)		244%
% of revenue	(2)		%	(0.5)		%
Effective tax rate	24		%	30		%

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended						% change
	September 30, 2021			September 30, 2020			2021 vs 2020
	(in thousands, except percentages)
Provision for income taxes	$	(22,033)		$	(11,943)		84%
% of revenue	(1)		%	(1)		%
Effective tax rate	26		%	30		%

For the nine months ended September 30, 2021 and September 30, 2020, we used an annual estimated tax rate of 26% and 30%, respectively, to calculate the provision for income taxes.

53

Net Income

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

	Three Months Ended					% change
	September 30, 2021			September 30, 2020		2021 vs 2020
	(in thousands, except percentages)
Net income	$	24,230		5,293		358%
% of revenue	5		%	1	%

Net income for the three months ended September 30, 2021, increased $18.9 million, or 358%, compared to the three months ended September 30, 2020. This increase was the result of the business dynamics discussed above, in particular, a $24.1 million increase in income from operations and a $0.3 million decrease in financial expense, partially offset by a $(5.5) million increase in provision for income taxes compared to the three months ended September 30, 2020.

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

	Nine Months Ended					% change
	September 30, 2021			September 30, 2020		2021 vs 2020
	(in thousands, except percentages)
Net income	$	62,709		27,871		125%
% of revenue	4		%	2	%

Net income for the nine months ended September 30, 2021, increased $34.8 million, or 125%, compared to the nine months ended September 30, 2020. This increase was the result of the business dynamics discussed above, in particular, a $44.5 million increase in income from operations and a $0.4 million decrease in financial expense partially offset by a $(10.1) million increase in provision for income taxes compared to the nine months ended September 30, 2020.

54

Liquidity and Capital Resources

Our principal sources of liquidity are our cash and cash equivalents and cash generated from operating activities. 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. In 2018, we completed an $80 million share repurchase program. In July 2019, the Board of Directors authorized a new share repurchase program of up to $80 million of the Company’s outstanding American Depositary Shares, which we completed in February 2020. In April 2020, the Board of Directors authorized a new share repurchase program of up to $30 million of the Company's outstanding American Depositary Shares, which we completed in July 2020. In February 2021, the Board of Directors approved a new, long-term share repurchase program of up to $100 million of the Company's outstanding American Depositary Shares, for which the duration is estimated to be until December, 2021. Other than these repurchase programs, we intend to retain all available funds from any future earnings to fund our growth. As discussed in Note 14 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 currently provide only a minimal return. Our cash and cash equivalents at September 30, 2021 were held for working capital and general corporate purposes, which could include acquisitions, and amounted to $497.5 million as of September 30, 2021. The $9.4 million increase in cash and cash equivalents compared with December 31, 2020 primarily resulted from $154.9 million in cash from operating activities, partially offset by $(66.2) million in cash used for investing activities and $(55.8) million in cash used for financing activities over the period. The cash used for financing activities was mainly related to $(72.6) million in cash used for the share repurchase programs, partially offset by $21.7 million in proceeds from a capital increase following the exercises of stock options. In addition, the increase in cash includes an $(23.4) million negative 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.

Furthermore, the Company has immediate access to an additional €350 ($405.3 million) from the Revolving Credit Facility, which, combined with our cash position, marketable securities and treasury shares as of September 30, 2021, provides total liquidity in excess of $1.0 billion. Overall, we believe that our current financial liquidity, combined with our expected cash-flow generation in 2021, enables financial flexibility.

Operating and Capital Expenditure Requirements

For the nine months ended September 30, 2021 and 2020, our capital expenditures were $42.9 million and $43.2 million, respectively. During the nine months ended September 30, 2021, these capital expenditures were mainly comprised of purchases of servers and other data-center equipment and capitalized software development costs. We expect our capital expenditures to remain at, or slightly above, 3% of revenue for 2021, as we plan to continue to build and maintain additional data center equipment capacity in all regions and significantly increase our redundancy capacity to strengthen our infrastructure.

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.

55

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 will 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.

56

Historical Cash Flows

The following table sets forth our cash flows for the nine month period ended September 30, 2021 and September 30, 2020:

	Nine Months Ended
	September 30, 2021		September 30, 2020
	(in thousands)
Cash (used for) from operating activities	$	154,901	$	141,276
Cash (used for) from investing activities	$	(66,195)	$	(63,799)
Cash (used for) from financing activities	$	(55,821)	$	111,758

Operating Activities

Cash from operating activities is primarily impacted by the increase in the number of clients using our solutions and by the amount of cash we invest in personnel to support the anticipated growth of our business. Cash from 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, 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 nine months ended September 30, 2021, net cash provided by operating activities was $154.9 million and consisted of net income of $62.7 million, $103.6 million in adjustments for certain non-cash and non-operating items and changes in working capital of $(11.4) million. Adjustments for certain non-operating items primarily consisted of amortization and provision expense of $67.9 million, equity awards compensation expense of $32.2 million, $4.7 million on disposal of non-current assets and $4.6 million changes in deferred tax assets, partially offset by a $(5.8)million change in income taxes. The $(11.4) million decrease in cash used for changes in working capital primarily consisted of a $16.7 million decrease in trade receivables, partially offset by a $(12.7) million increase in other current assets including prepaid expenses and value-added tax ("VAT") receivables, a $(3.9) million change in lease liabilities and right of use assets, a $(5.7) million decrease in trade payables, and a $(5.8) million decrease in other current liabilities such as payroll and payroll related expenses and VAT payables and change in fair value of derivatives.

Investing Activities

Our investing activities to date have consisted primarily of purchases of servers and other data-center equipment. For the nine months ended September 30, 2021, net cash used for investing activities was $66.2 million and primarily consisted of $42.9 million in capital expenditures, mainly comprised of purchases of servers and other data-center equipment and capitalized software development costs, a $13.8 million negative change in other non-current financial assets resulting from the investments in Marketable Securities and a $9.5 million payment net of cash acquired for the Mabaya acquisition.

Financing Activities

For the nine months ended September 30, 2021, net cash used for financing activities was $55.8 million, resulting mainly from a $72.6 million payment for our share repurchase program, a $3.6 million change in other financial liabilities and a $1.3 million repayment of borrowings partially offset by $21.7 million of proceeds from capital increase following the exercises of stock options.

57

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 nine months ended September 30, 2021.

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, 2020.

A hypothetical 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:

	Nine Months Ended
	September 30, 2021				September 30, 2020
	(in thousands)
GBP/USD	+10%		-10%		+10%		-10%
Net income impact	$	(278)	$	278	$	(10)	$	10

	Nine Months Ended
	September 30, 2021				September 30, 2020
	(in thousands)
BRL/USD	+10%		-10%		+10%		-10%
Net income impact	$	180	$	(180)	$	(37)	$	37

	Nine Months Ended
	September 30, 2021				September 30, 2020
	(in thousands)
JPY/USD	+10%		-10%		+10%		-10%
Net income impact	$	392	$	(392)	$	302	$	(302)

	Nine Months Ended
	September 30, 2021				September 30, 2020
	(in thousands)
EUR/USD	+10%		-10%		+10%		-10%
Net income impact	$	8,075	$	(8,075)	$	7,416	$	(7,416)

Credit Risk and Trade receivables

For a description of our credit risk and trade receivables, please see "Note 3. Financial instruments" and "Note 4. Trade Receivables" in the Notes to the Consolidated Financial Statements.

58

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Based on their evaluation as of September 30, 2021, 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.

We have not experienced any material impact to our internal controls over financial reporting despite the fact that most of our employees are working remotely due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 situation on our internal controls to minimize the impact on their design and operating effectiveness.

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 may not be detected.

59

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 under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our subsequent quarterly reports on Form 10-Q. 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 American Depositary Shares 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, 2020.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Purchases of Equity Securities by the issuer and Affiliated Purchasers

The following table provides certain information with respect to our purchases of our ADSs during the third fiscal quarter of 2021:

Period	Total Number of Shares Purchased(1)	Average Price Paid per Share(2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(1)
July 1 to 31, 2021	310,220	$	42.07	310,220	$	52,027,085.50
August 1 to 31, 2021	328,373	$	38.01	328,373	$	39,541,084.50
September 1 to 30, 2021	341,775	$	35.63	341,775	$	27,388,888.50
Total	980,368	$	38.56	980,368	—

(1) On February 5, 2021, Criteo's Board of Directors authorized a share repurchase program of up to $100.0 million of the Company's outstanding American Depositary Shares. The Company intends to use repurchased shares to satisfy employee equity plan vesting in lieu of issuing new shares, and potentially in connection with M&A transactions. The repurchase program commenced in March 2021 and the duration is estimated to be until December 2021.

(2) Average price paid per share excludes any broker commissions paid.

60

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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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
104	Cover Page Interactive Data File, formatted in Inline XBRL and contained in Exhibit 101.

#    Filed herewith.

*    Furnished herewith.

61

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/ Sarah Glickman
Date: November 3, 2021	Name:	Sarah Glickman
	Title:	Chief Financial Officer
		(Principal financial officer and duly authorized signatory)

62

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, Megan Clarken, 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: November 3, 2021            

/s/ Megan Clarken

Megan Clarken

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, Sarah Glickman, 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 first 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: November 3, 2021                

/s/ Sarah Glickman

Sarah Glickman

Chief Financial 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), Megan Clarken, Chief Executive Officer of Criteo S.A. (the “Company”), and Sarah Glickman, Chief Financial Officer of the Company, each hereby certifies that, to the best of their knowledge:

1.    The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2021, 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: November 3, 2021

/s/ Megan Clarken	/s/ Sarah Glickman
Megan Clarken	Sarah Glickman
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

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-36153
Entity Registrant Name	Criteo S.A.
Entity Incorporation, State or Country Code	I0
Entity Address, Address Line One	32 Rue Blanche
Entity Address, City or Town	Paris
Entity Address, Country	FR
Entity Address, Postal Zip Code	75009
Country Region	33
City Area Code	40
Local Phone Number	40 22 90
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		60,722,263
Entity Central Index Key	0001576427
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
American Depositary Shares
Document Information [Line Items]
Title of 12(b) Security	American Depositary Shares, each representing one Ordinary Share,nominal value €0.025 per share
Trading Symbol	CRTO
Security Exchange Name	NASDAQ
Ordinary Shares
Document Information [Line Items]
Title of 12(b) Security	Ordinary Shares, nominal value €0.025 per share
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 497,458	$ 488,011
Trade receivables, net of allowances of $44.7 million and $39.9 million at September 30, 2021 and December 31, 2020, respectively	439,493	474,055
Income taxes	14,276	11,092
Other taxes	75,214	69,987
Other current assets	23,185	21,405
Marketable securities - current portion	46,311	0
Total current assets	1,095,937	1,064,550
Property, plant and equipment, net	150,112	189,505
Intangible assets, net	89,288	79,744
Goodwill	330,561	325,805
Right of use assets - operating lease	117,273	114,012
Marketable securities - non current portion	10,000	41,809
Non-current financial assets	7,371	18,109
Deferred tax assets	13,951	19,876
Total non-current assets	718,556	788,860
Total assets	1,814,493	1,853,410
Current liabilities:
Trade payables	349,985	367,025
Contingencies	2,828	2,250
Income taxes	489	2,626
Financial liabilities - current portion	489	2,889
Lease liability - operating - current portion	31,309	48,388
Other taxes	53,249	58,491
Employee - related payables	72,679	85,272
Other current liabilities	38,818	33,390
Total current liabilities	549,846	600,331
Deferred tax liabilities	4,138	5,297
Defined benefit plans	6,167	6,167
Financial liabilities - non current portion	367	386
Lease liability - operating - non current portion	92,859	83,007
Other non-current liabilities	9,864	5,535
Total non-current liabilities	113,395	100,392
Total liabilities	663,241	700,723
Commitments and contingencies
Shareholders' equity:
Common shares, €0.025 par value, 66,315,019 and 66,272,106 shares authorized, issued and outstanding at September 30, 2021, and December 31, 2020, respectively.	2,162	2,161
Treasury stock, 5,544,527 and 5,632,536 shares at cost as of September 30, 2021 and December 31, 2020, respectively.	(122,390)	(85,570)
Additional paid-in capital	727,613	693,164
Accumulated other comprehensive income (loss)	(25,349)	16,028
Retained earnings	534,320	491,359
Equity-attributable to shareholders of Criteo S.A.	1,116,356	1,117,142
Non-controlling interests	34,896	35,545
Total equity	1,151,252	1,152,687
Total equity and liabilities	$ 1,814,493	$ 1,853,410

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (Parenthetical) $ in Thousands	Sep. 30, 2021 € / shares	Sep. 30, 2021 USD ($) shares	Dec. 31, 2020 € / shares	Dec. 31, 2020 USD ($) shares
Statement of Financial Position [Abstract]
Trade receivables, allowances | $		$ 44,730		$ 39,899
Common shares, par value (in euro per share) | € / shares	€ 0.025		€ 0.025
Common shares authorized (in shares)		66,315,019		66,272,106
Common shares issued (in shares)		66,315,019		66,272,106
Common shares outstanding (in shares)		66,315,019		66,272,106
Treasury stock (in shares)		5,544,527		5,632,536

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenue	$ 508,580	$ 470,345	$ 1,600,968	$ 1,411,335
Cost of revenue:
Traffic acquisition costs	(297,619)	(284,401)	(956,364)	(839,463)
Other cost of revenue	(34,935)	(34,608)	(107,011)	(102,328)
Gross profit	176,026	151,336	537,593	469,544
Operating expenses:
Research and development expenses	(33,345)	(30,954)	(106,957)	(99,716)
Sales and operations expenses	(75,619)	(83,659)	(235,724)	(244,414)
General and administrative expenses	(34,877)	(28,672)	(108,779)	(83,772)
Total operating expenses	(143,841)	(143,285)	(451,460)	(427,902)
Income from operations	32,185	8,051	86,133	41,642
Financial expense	(154)	(491)	(1,391)	(1,828)
Income before taxes	32,031	7,560	84,742	39,814
Provision for income taxes	(7,801)	(2,267)	(22,033)	(11,943)
Net income	24,230	5,293	62,709	27,871
Net income available to shareholders of Criteo S.A.	23,481	5,227	60,691	26,402
Net income available to non-controlling interests	$ 749	$ 66	$ 2,018	$ 1,469
Weighted average shares outstanding used in computing per share amounts:
Basic (in shares)	60,873,594	60,080,598	60,759,613	61,059,345
Diluted (in shares)	64,197,686	61,027,795	64,313,526	61,644,827
Net income allocated to shareholders per share:
Basic (in USD per share)	$ 0.39	$ 0.09	$ 1.00	$ 0.43
Diluted (in USD per share)	$ 0.37	$ 0.09	$ 0.94	$ 0.43

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 24,230	$ 5,293	$ 62,709	$ 27,871
Foreign currency translation differences, net of taxes	(18,394)	25,660	(44,934)	21,312
Actuarial (losses) gains on employee benefits, net of taxes	25	(377)	683	0
Other comprehensive income (loss)	(18,369)	25,283	(44,251)	21,312
Total comprehensive income	5,861	30,576	18,458	49,183
Attributable to shareholders of Criteo S.A.	5,569	29,866	19,314	46,849
Attributable to non-controlling interests	$ 292	$ 710	$ (856)	$ 2,334

XML

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands		Total	Equity - attributable to shareholders of Criteo S.A.	Share capital	Treasury Stock	Additional paid-in capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Non controlling interest
Beginning balance (in shares) at Dec. 31, 2019				66,197,181	3,903,673
Beginning balance at Dec. 31, 2019		$ 1,037,988	$ 1,007,267	$ 2,158	$ (74,900)	$ 668,389	$ (40,105)	$ 451,725	$ 30,721
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		16,428	15,459					15,459	969
Other comprehensive income (loss)		(14,198)	(14,178)				(14,178)		(20)
Issuance of ordinary shares (in shares)				5,700
Issuance of ordinary shares		39	39			39
Change in treasury stocks (in shares)					(629,977)
Change in treasury stocks		(18,239)	(18,239)		$ (4,934)			(13,305)
Share-Based Compensation		8,131	8,082			8,082			49
Other changes in equity	[1]	(3,541)	(3,399)					(3,399)	(142)
Ending Balance (in shares) at Mar. 31, 2020				66,202,881	4,533,650
Ending Balance at Mar. 31, 2020		1,026,608	995,031	$ 2,158	$ (79,834)	676,510	(54,283)	450,480	31,577
Beginning balance (in shares) at Dec. 31, 2019				66,197,181	3,903,673
Beginning balance at Dec. 31, 2019		1,037,988	1,007,267	$ 2,158	$ (74,900)	668,389	(40,105)	451,725	30,721
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		27,871
Other comprehensive income (loss)		21,312
Ending Balance (in shares) at Sep. 30, 2020				66,083,172	5,989,258
Ending Balance at Sep. 30, 2020		1,061,912	1,028,820	$ 2,155	$ (92,450)	685,841	(19,658)	452,932	33,092
Beginning balance (in shares) at Mar. 31, 2020				66,202,881	4,533,650
Beginning balance at Mar. 31, 2020		1,026,608	995,031	$ 2,158	$ (79,834)	676,510	(54,283)	450,480	31,577
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		6,150	5,716					5,716	434
Other comprehensive income (loss)		10,227	9,986				9,986		241
Issuance of ordinary shares (in shares)				2,000
Issuance of ordinary shares		13	13			13
Change in treasury stocks (in shares)					(1,055,758)
Change in treasury stocks		(14,861)	(14,861)		$ (10,880)			(3,981)
Share-Based Compensation		6,804	6,765			6,765			39
Other changes in equity		56	32					32	24
Ending Balance (in shares) at Jun. 30, 2020				66,204,881	5,589,408
Ending Balance at Jun. 30, 2020		1,034,997	1,002,682	$ 2,158	$ (90,714)	683,288	(44,297)	452,247	32,315
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		5,293	5,227					5,227	66
Other comprehensive income (loss)		25,283	24,639				24,639		644
Issuance of ordinary shares (in shares)				35,150
Issuance of ordinary shares		167	167			167
Change in treasury stocks (in shares)					(399,850)
Change in treasury stocks		(10,487)	(10,487)		$ (5,636)			(4,851)
Share-Based Compensation		6,458	6,391			6,391			67
Other changes in equity (in shares)	[2]			(156,859)
Other changes in equity	[2]	201	201	$ (3)	$ 3,900	(4,005)		309
Ending Balance (in shares) at Sep. 30, 2020				66,083,172	5,989,258
Ending Balance at Sep. 30, 2020		1,061,912	1,028,820	$ 2,155	$ (92,450)	685,841	(19,658)	452,932	33,092
Beginning balance (in shares) at Dec. 31, 2020				66,272,106	5,632,536
Beginning balance at Dec. 31, 2020		1,152,687	1,117,142	$ 2,161	$ (85,570)	693,164	16,027	491,359	35,545
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		23,450	22,406					22,406	1,044
Other comprehensive income (loss)		(36,354)	(33,852)				(33,852)		(2,502)
Issuance of ordinary shares (in shares)				119,800
Issuance of ordinary shares		2,151	2,151	$ 3		2,148
Change in treasury stocks (in shares)	[3]				(34,935)
Change in treasury stocks	[3]	(4,930)	(4,930)		$ (1,693)			(3,237)
Share-Based Compensation		6,760	6,710			6,710			50
Ending Balance (in shares) at Mar. 31, 2021				66,391,906	5,597,601
Ending Balance at Mar. 31, 2021		1,143,763	1,109,626	$ 2,164	$ (87,263)	702,022	(17,825)	510,528	34,137
Beginning balance (in shares) at Dec. 31, 2020				66,272,106	5,632,536
Beginning balance at Dec. 31, 2020		1,152,687	1,117,142	$ 2,161	$ (85,570)	693,164	16,027	491,359	35,545
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		62,709
Other comprehensive income (loss)		$ (44,251)
Change in treasury stocks (in shares)		(1,923,860)
Ending Balance (in shares) at Sep. 30, 2021				66,315,019	5,544,527
Ending Balance at Sep. 30, 2021		$ 1,151,252	1,116,356	$ 2,162	$ (122,390)	727,613	(25,349)	534,320	34,896
Beginning balance (in shares) at Mar. 31, 2021				66,391,906	5,597,601
Beginning balance at Mar. 31, 2021		1,143,763	1,109,626	$ 2,164	$ (87,263)	702,022	(17,825)	510,528	34,137
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		15,029	14,804					14,804	225
Other comprehensive income (loss)		10,472	10,387				10,387		85
Issuance of ordinary shares (in shares)				305,454
Issuance of ordinary shares		7,577	7,577	$ 9		7,568
Change in treasury stocks (in shares)					(482,407)
Change in treasury stocks		(29,999)	(29,999)		$ (24,560)			(5,439)
Share-Based Compensation		11,227	11,172			11,172			55
Ending Balance (in shares) at Jun. 30, 2021				66,697,360	6,080,008
Ending Balance at Jun. 30, 2021		1,158,069	1,123,567	$ 2,173	$ (111,823)	720,762	(7,438)	519,893	34,502
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		24,230	23,481					23,481	749
Other comprehensive income (loss)		(18,369)	(17,911)				(17,911)		(458)
Issuance of ordinary shares (in shares)				382,341
Issuance of ordinary shares		12,183	12,183	$ 16		12,167
Change in treasury stocks (in shares)					(535,481)
Change in treasury stocks		(37,684)	(37,684)	$ (27)	$ (10,567)	(18,036)		(9,054)
Share-Based Compensation		12,823	12,720			12,720			103
Ending Balance (in shares) at Sep. 30, 2021				66,315,019	5,544,527
Ending Balance at Sep. 30, 2021		$ 1,151,252	$ 1,116,356	$ 2,162	$ (122,390)	$ 727,613	$ (25,349)	$ 534,320	$ 34,896

[1] From January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost issued by the Financial Accounting Standards Board (FASB).

[2] Deferred consideration in the context of Storetail Marketing SAS acquisition in 2018.

[3] On February 5, 2021, Criteo's Board of Directors authorized a share repurchase program of up to $100.0 million of the Company's outstanding American Depositary Shares. The change in treasury stocks is comprised of 1,923,860 shares repurchased at an average price of $37.9 offset by 1,144,982 treasury shares used for RSUs vesting and 866,887 treasury shares cancelled.

XML

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($)		9 Months Ended
	Feb. 05, 2021	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Authorized amount of share repurchase program	$ 100,000,000
Change in treasury stocks (in shares)		1,923,860
Treasury stock acquired, average cost per share (in dollars per share)		$ 37.9
Treasury shares used for RSUs vesting (in shares)	1,144,982
Treasury shares cancelled (in shares)	866,887
Share-based compensation expense		$ 30,808,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020
Cash from operating activities
Net income		$ 62,709	$ 27,871
Non-cash and non-operating items		103,573	105,742
- Amortization and provisions		67,919	79,631
- Net gain or (loss) on disposal of non-current assets		4,694	2,734
- Equity awards compensation expense	[1]	32,174	22,465
- Change in deferred taxes		4,568	(7,697)
- Change in income taxes		(5,820)	7,411
- Other		38	1,198
Changes in working capital related to operating activities		(11,381)	7,663
- (Increase) / Decrease in trade receivables		16,654	122,529
- Increase / (Decrease) in trade payables		(5,693)	(95,303)
- (Increase) / Decrease in other current assets		(12,710)	2,288
- Increase/ (Decrease) in other current liabilities		(5,774)	(20,145)
- Change in operating lease liabilities and right of use assets		(3,858)	(1,706)
Cash from operating activities		154,901	141,276
Cash used for investing activities
Acquisition of intangible assets, property, plant and equipment		(44,383)	(57,037)
Change in accounts payable related to intangible assets, property, plant and equipment		1,518	13,870
Payment for a business, net of cash acquired		(9,527)	(3)
Change in other non-current financial assets		(13,803)	(20,629)
Cash used for investing activities		(66,195)	(63,799)
Cash (used for) from financing activities
Proceeds from borrowings under line-of-credit agreement		0	157,503
Repayment of borrowings		(1,262)	(181)
Proceeds from exercise of stock options		21,688	101
Repurchase of treasury stocks		(72,611)	(43,655)
Change in other financial liabilities		(3,636)	(2,010)
Cash (used for) from financing activities		(55,821)	111,758
Effect of exchange rates changes on cash and cash equivalents		(23,438)	18,746
Net increase in cash and cash equivalents		9,447	207,981
Net cash and cash equivalents at beginning of period		488,011	418,763
Net cash and cash equivalents at end of period		497,458	626,744
Supplemental disclosures of cash flow information
Cash paid for taxes, net of refunds		(23,285)	(12,229)
Cash paid for interest		$ (1,139)	$ (819)

[1] Of which $30.8 million and $21.4 million of equity awards compensation expense consisted of share-based compensation expense according to ASC 718 Compensation - stock compensation for the nine months ended September 30, 2021 and 2020, respectively.

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Cash Flows [Abstract]
Share-based compensation expense	$ 12,822	$ 6,457	$ 30,808	$ 21,392

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

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 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 on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021. 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) revenue recognition criteria, (2) allowances for credit losses, (3) research tax credits, (4) income taxes, including (i) recognition of deferred tax assets arising from the subsidiaries projected taxable profit for future years, (ii) evaluation of uncertain tax positions associated with our transfer pricing policy and (iii) recognition of income tax position in respect with tax reforms recently enacted in countries we operate, (5) assumptions used in valuing acquired assets and assumed liabilities in business combinations, (6) assumptions used in the valuation of goodwill, intangible assets and right of use assets - operating lease, and (7) assumptions used in the valuation model to determine the fair value of share-based compensation plan.

The severity, magnitude, duration and after-effects of the COVID-19 pandemic on general economic conditions increase uncertainty associated with these estimates, in particular those related to allowance for credit losses, assumptions used in the valuation of goodwill and estimates relating to income taxes.

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, 2020, except for the update to our existing accounting policy described below:

Revenue Recognition

Principal vs Agent:

For certain customer arrangements, related to transactions using our Retail Media Platform, a new self-service solution providing transparency, measurement and control to our brand and retailer customers, we act as agent, because we (i) do not control the advertising inventory before it is transferred to our clients, (ii) do not have inventory risks because we do not purchase the inventory upfront and (iii) have limited discretion in establishing prices as we charge a platform fee based on a percentage of the digital advertising inventory purchased through the use of the platform. Therefore, based on these and other factors, we report the revenue earned and related costs incurred by the Retail Media Platform solution on a net basis.

Accounting Pronouncements Adopted in 2021

Effective January 1, 2021, we have adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. The adoption of this new standard did not have a material impact on our consolidated financial statements.

Effective January 1, 2021, we have adopted the FASB ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General. The purpose of this update is to modify disclosure requirements for Defined Benefit Plans. It removes requirements to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year among others. It adds disclosure requirements for the items such as an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The adoption of this new standard did not have a material impact on our consolidated financial statements.

Recent Accounting Pronouncements

Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s Consolidated Financial Statements upon adoption.

XML

Significant Events and Transactions of the Period

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Significant Events and Transactions of the Period

Significant Events and Transactions of the Period

Restructuring

On February 1, 2021, the Company announced a plan to restructure its workforce across functions and regions to better align with the Company's evolution. We expect the plan will be completed by the end of 2021. The Company recorded $4.6 million of restructuring charges for severance related to this plan during the nine months ended September 30, 2021. For the period ended September 30, 2021, $3.4 million was included in Sales and Operations expenses, $1.1 million was included in General and Administrative expenses and $0.1 million was included in Research and Development expenses.

The following table presents the breakdown of restructuring liability as of September 30, 2021, presented as part of employees related payables on the balance sheet:

	(in thousands)
Restructuring liability - January 1, 2021	$	510
Restructuring costs	4,637
Amount paid	(3,600)
Restructuring liability - September 30, 2021	1,547

Acquisition of Doobe In Site Ltd.

On May 18, 2021, we completed the acquisition of all of the outstanding shares of Doobe In Site Ltd. ("Mabaya"), a leading retail media technology company that powers sponsored products and retail media monetization for major ecommerce marketplaces globally. The total consideration paid was $9.9 million for the acquisition of shares. The acquisition was financed by available cash resources. The transaction has been accounted for as a business combination under the acquisition method of accounting. The purchase price allocation is in progress. A preliminary valuation of the fair value of Mabaya's assets acquired and liabilities assumed resulted in the identification of technology of $8.0 million, a $5.1 million employee related payable and a $2.5 million liability relating to a redemption fee payable to a governmental agency. Provisional goodwill amounted to $8.5 million, subject to post-closing purchase price adjustments. Once this valuation analysis is finalized, the estimate of the fair value of the assets acquired and liabilities assumed may be adjusted. The Company will finalize these amounts no later than one year from the acquisition date. In addition, acquisition costs amounting to $0.5 million were fully expensed as incurred.

XML

Financial Instruments

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Financial Instruments

Financial Instruments

Financial assets

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:

	September 30, 2021		December 31, 2020
	(in thousands)
Trade receivables, net of allowances	439,493		474,055
Other taxes	75,214		69,987
Other current assets	23,185		21,405
Non-current financial assets	7,371		18,109
Marketable securities	56,311		41,809
Total	$	601,574	$	625,365

For our financial assets, other than trade receivables, net of allowances, the fair value approximates the carrying amount, given the nature of the financial assets and the maturity of the expected cash flows.

Financial Liabilities

	September 30, 2021		December 31, 2020
	(in thousands)
Trade payables	$	349,985	$	367,025
Other taxes	53,249		58,491
Employee-related payables	72,679		85,272
Other current liabilities	38,818		33,390
Financial liabilities	856		3,275
Total	$	515,587	$	547,453

The fair value of financial liabilities approximates the carrying amount, given the nature of the financial liabilities and the maturity of the expected cash outflows.

Fair Value Measurements     

We measure the fair value of our cash equivalents and marketable securities, which include interest-bearing bank deposits, as level 2 measurements because they are valued using observable market data.

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.

	September 30, 2021		December 31, 2020
	(in thousands)
Derivative Liabilities:
Included in financial liabilities - current portion	$	(155)	$	925

The fair value of derivative financial instruments approximates the notional amount, given the nature of the derivative financial instruments and the maturity of the expected cash flows.

Cash and Cash Equivalents

The following table presents for each reporting period, the breakdown of cash and cash equivalents:

	September 30, 2021		December 31, 2020
	(in thousands)
Cash equivalents	$	116,834	$	162,457
Cash on hand	380,624		325,554
Total cash and cash equivalents	$	497,458	$	488,011

Cash equivalents are investments in 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. Interest-bearing bank deposits are considered level 2 financial instruments as they are measured using valuation techniques based on observable market data.

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.

Marketable Securities

The following table presents for each reporting period, the breakdown of the fair value of marketable securities:

	September 30, 2021		December 31, 2020
	(in thousands)
Securities Available-for-sale
Term Deposits	$	23,158	$	24,538
Securities Held-to-maturity
Term Deposits	$	33,153	$	17,271
Total	$	56,311	$	41,809

The gross unrealized gains on our marketable securities were not material as of September 30, 2021.

Term deposits are considered a level 2 financial instrument as they are measured using valuation techniques based on observable market data.

The following table classifies our marketable securities by contractual maturities:

	Held-to-maturity		Available-for-sale
	September 30, 2021
	(in thousands)
Due in one year	$	23,153	$	23,158
Due in one to five years	$	10,000	$	—
Total	$	33,153	$	23,158

XML

Trade Receivables

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Trade Receivables

Trade Receivables

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

	September 30, 2021		December 31, 2020
	(in thousands)
Trade accounts receivables	$	484,223	$	513,954
(Less) Allowance for credit losses	(44,730)		(39,899)
Net book value at end of period	$	439,493	$	474,055

Changes in allowance for credit accounts are summarized below:

	2021		2020
	(in thousands)
Balance at January 1	$	(39,899)	$	(16,068)
Allowance for credit losses through retained earnings (*)	—		(3,503)
Allowance for credit losses	(9,765)		(26,465)
Reversal of provision	3,895		7,944
Currency translation adjustment	1,039		(185)
Balance at September 30	$	(44,730)	$	(38,277)

(*) On January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost issued by the Financial Accounting Standards Board (FASB). ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. This results in earlier recognition of credit losses. We adopted ASU 2016-13 effective January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings.

We write off accounts receivable balances once the receivables are no longer deemed collectible. During the nine month period ended September 30, 2021, and September 30, 2020, the Company recovered $2.0 million, and $2.8 million, respectively, previously reserved for, and accounted for this as a reversal of provision.

As of September 30, 2021 and December 31, 2020 no customer accounted for 10% or more of trade receivables.

XML

Other Current Assets

9 Months Ended

Sep. 30, 2021

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:

	September 30, 2021		December 31, 2020
	(in thousands)
Prepayments to suppliers	$	8,151	$	5,613
Other debtors	4,785		5,991
Prepaid expenses	10,249		9,801
Net book value at end of period	$	23,185	$	21,405

Prepaid expenses mainly consist of costs related to SaaS arrangements.

XML

Other Current Liabilities

9 Months Ended

Sep. 30, 2021

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Other Current Liabilities Other current liabilities are presented in the following table:

	September 30, 2021		December 31, 2020
	(in thousands)
Current liabilities to clients	$	15,144	$	12,234
Rebates	16,080		14,433
Accounts payable relating to capital expenditures	4,056		4,721
Other creditors	3,158		1,918
Deferred revenue	380		84
Total	$	38,818	$	33,390

XML

Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

The components of lease expense are as follows:

	Three Months Ended
	September 30, 2021						September 30, 2020
	Offices		Data Centers		Total		Offices		Data Centers		Total
	(in thousands)
Lease expense	$	2,383	$	5,703	$	8,086	$	6,969	$	7,199	$	14,168
Short term lease expense	141		26		167		115		—		115
Variable lease expense	63		66		129		307		22		329
Sublease income	(233)		—		(233)		(338)		—		(338)
Total operating lease expense	$	2,354	$	5,795	$	8,149	$	7,053	$	7,221	$	14,274

	Nine Months Ended
	September 30, 2021						September 30, 2020
	Offices		Data Centers		Total		Offices		Data Centers		Total
	(in thousands)
Lease expense	$	15,800	$	18,561	$	34,361	$	20,770	$	20,519	$	41,289
Short term lease expense	342		40		382		332		—		332
Variable lease expense	307		268		575		320		110		430
Sublease income	(709)		—		(709)		(514)		—		(514)
Total operating lease expense	$	15,740	$	18,869	$	34,609	$	20,908	$	20,629	$	41,537

XML

Employee Benefits

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Employee Benefits

Employee Benefits

Defined Benefit Plans

According to the French law and the Syntec Collective Agreement, French employees are entitled to compensation paid on retirement.

The following table summarizes the changes in the projected benefit obligation:

	Projected benefit obligation
	(in thousands)
Projected benefit obligation present value at January 1, 2020	$	8,485
Service cost	2,232
Interest cost	95
Actuarial losses (gains)	(5,214)
Currency translation adjustment	569
Projected benefit obligation present value at December 31, 2020	$	6,167
Service cost	1,005
Interest cost	38
Actuarial losses (gains)	(683)
Currency translation adjustment	(360)
Projected benefit obligation present value at September 30, 2021	$	6,167

The Company does not hold any plan assets for any of the periods presented.

The main assumptions used for the purposes of the actuarial valuations are listed below:

	Nine Months Ended	Year ended
	September 30, 2021	December 31, 2020
Discount rate (Corp AA)	1.25%	0.85%
Expected rate of salary increase	5%	5%
Expected rate of social charges	49% - 50%	49% - 50%
Expected staff turnover	—% - 17.8%	—% - 17.8%
Estimated retirement age	Progressive table	Progressive table
Life table	TH-TF 2000-2002 shifted	TH-TF 2000-2002 shifted

Defined Contribution Plans

The total expense represents contributions payable to these plans by us at specified rates.

In some countries, the Group’s employees are eligible for pension payments and similar financial benefits. The Group provides these benefits via defined contribution plans. Under defined contribution plans, the Group has no obligation other than to pay the agreed contributions, with the corresponding expense charged to income for the year. The main contributions concern France, the United States (for 401k plans), and the United Kingdom.

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Defined contributions plans included in personnel expenses	$	(3,638)	$	(3,637)	$	(12,638)	$	(11,508)

XML

Revenue

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of revenue

The following table presents our disaggregated revenues:

	Marketing Solutions		Retail Media		Total
For the three months ended	(in thousands)
September 30, 2021	$	458,622	$	49,958	$	508,580
September 30, 2020	$	412,126	$	58,219	$	470,345

	Marketing Solutions		Retail Media		Total
For the nine months ended	(in thousands)
September 30, 2021	$	1,429,277	$	171,691	$	1,600,968
September 30, 2020	$	1,263,169	$	148,166	$	1,411,335

XML

Share-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [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 nine months ended September 30, 2021, there were five grants of RSUs under the Employee Share Option Plan 13 as defined in Note 19 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020.

On February 25, 2021, 96,450 RSUs were granted to Criteo employees subject to continued employment and 235,850 RSUs and 235,848 PSUs were granted to members of the management subject to continued employment.

On April 29, 2021, 758,979 RSUs were granted to Criteo employees subject to continued employment.

On June 14, 2021, 858,511 RSUs were granted to Criteo employees subject to continued employment and 14,421 PSUs were granted to members of the management subject to continued employment.

On June 24, 2021, 56,500 RSUs were granted to Criteo employees subject to continued employment.

On July 29, 2021, 75,080 RSUs were granted to Criteo employees 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 19 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.

Change in number of outstanding BSPCE / OSA / RSU / BSA

	OSA/BSPCE	RSU/PSU	BSA	Total
Balance at January 1, 2021	2,102,158	4,954,091	343,775	7,400,024
Granted	—	2,331,639	—	2,331,639
Exercised (OSA/BSPCE/BSA)	(898,627)	—	—	(898,627)
Vested (RSU)	—	(1,118,523)	—	(1,118,523)
Forfeited	(389,149)	(464,052)	—	(853,201)
Expired	—	—	—	—
Balance at September 30, 2021	814,382	5,703,155	343,775	6,861,312

Breakdown of the Closing Balance

	OSA/BSPCE		RSU	BSA
Number outstanding	814,382		5,703,155	343,775
Weighted-average exercise price	€	19.82	NA	€	15.12
Number vested	458,600		—	343,775
Weighted-average exercise price	€	24.38	NA	€	15.12
Weighted-average remaining contractual life of options outstanding, in years	6.07		NA	6.04

Reconciliation with the Unaudited Consolidated Statements of Income

	Three Months Ended
	September 30, 2021								September 30, 2020
	(in thousands)
	R&D		S&O		G&A		Total		R&D		S&O		G&A		Total
RSUs	$	(4,858)	$	(3,818)	$	(3,931)	$	(12,607)	$	(3,333)	$	(2,957)	$	(595)	$	(6,885)
Share options / BSPCE	—		(58)		(157)		(215)		—		(233)		661		428
Total share-based compensation	(4,858)		(3,876)		(4,088)		(12,822)		(3,333)		(3,190)		66		(6,457)
BSAs	—		—		(467)		(467)		—		—		(346)		(346)
Total equity awards compensation expense	$	(4,858)	$	(3,876)	$	(4,555)	$	(13,289)	$	(3,333)	$	(3,190)	$	(280)	$	(6,803)

	Nine Months Ended
	September 30, 2021								September 30, 2020
	(in thousands)
	R&D		S&O		G&A		Total		R&D		S&O		G&A		Total
RSUs	$	(11,572)	$	(9,026)	$	(9,402)	$	(30,000)	$	(7,771)	$	(8,092)	$	(5,168)	$	(21,031)
Share options / BSPCE	—		(240)		(568)		(808)		—		(288)		(73)		(361)
Total share-based compensation	(11,572)		(9,266)		(9,970)		(30,808)		(7,771)		(8,380)		(5,241)		(21,392)
BSAs	—		—		(1,366)		(1,366)		—		—		(1,073)		(1,073)
Total equity awards compensation expense	$	(11,572)	$	(9,266)	$	(11,336)	$	(32,174)	$	(7,771)	$	(8,380)	$	(6,314)	$	(22,465)

XML

Financial Income and Expenses

9 Months Ended

Sep. 30, 2021

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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Financial income from cash equivalents	$	179	$	108	$	505	$	551
Interest and fees	(445)		(677)		(1,491)		(1,920)
Interest on debt	(361)		(437)		(1,242)		(1,455)
Fees	(84)		(240)		(249)		(465)
Foreign exchange gain (loss)	952		107		(367)		(389)
Other financial expense	(840)		(29)		(38)		(70)
Total financial expense	$	(154)	$	(491)	$	(1,391)	$	(1,828)

The $0.2 million and the $1.4 million financial expenses for the three and nine month periods ended September 30, 2021, respectively, were driven by the up-front fees amortization, the non-utilization costs, the financial expense relating to our available Revolving Credit Facility ("RCF") financing and the recognition of a negative impact of foreign exchange reevaluations net of related hedging. At September 30, 2021, our exposure to foreign currency risk was centralized at Criteo S.A. and hedged using foreign currency swaps or forward purchases or sales of foreign currencies.

XML

Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Breakdown of Income Taxes

The tax provision for interim periods is determined using an estimate of our annual effective tax rate (“AETR”), adjusted for discrete items arising in the period. 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:

	Nine Months Ended
	September 30, 2021		September 30, 2020
	(in thousands)
Current income tax	$	(17,465)	$	(19,640)
Net change in deferred taxes	(4,568)		7,697
Provision for income taxes	$	(22,033)	$	(11,943)

For the nine months ended September 30, 2021 and September 30, 2020, we used an annual estimated tax rate of 26% and 30%, respectively, to calculate the provision for income taxes.

Current tax assets and liabilities

The total amount of current tax assets and liabilities consists mainly of prepayments of income taxes and credits of Criteo S.A, Criteo Corp, and Criteo GmbH.

XML

Earnings Per Share

9 Months Ended

Sep. 30, 2021

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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income attributable to shareholders of Criteo S.A.	$	23,481	$	5,227	$	60,691	$	26,402
Weighted average number of shares outstanding	60,873,594		60,080,598		60,759,613		61,059,345
Basic earnings per share	$	0.39	$	0.09	$	1.00	$	0.43

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 10). There were no other potentially dilutive instruments outstanding as of September 30, 2021 and September 30, 2020. 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, 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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income attributable to shareholders of Criteo S.A.	$	23,481	$	5,227	$	60,691	$	26,402
Weighted average number of shares outstanding of Criteo S.A.	60,873,594		60,080,598		60,759,613		61,059,345
Dilutive effect of :
Restricted share awards ("RSUs")	2,865,581		811,136		3,074,241		440,835
Share options and BSPCE	334,028		128,291		375,211		133,865
Share warrants	124,483		7,770		104,461		10,782
Weighted average number of shares outstanding used to determine diluted earnings per share	64,197,686		61,027,795		64,313,526		61,644,827
Diluted earnings per share	$	0.37	$	0.09	$	0.94	$	0.43

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		Nine Months Ended
	September 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020
Restricted share awards	—	428,949	396,937	2,284,562
Share options and BSPCE	—	140,513	—	93,675
Weighted average number of anti-dilutive securities excluded from diluted earnings per share	—	569,462	396,937	2,378,237

XML

Commitments and contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies

Commitments

Revolving Credit Facilities, Credit Line Facilities and Bank Overdrafts     

We are party to an RCF with a syndicate of banks which allows us to draw up to €350.0 million ($405.3 million).

We are also party to short-term credit lines and overdraft facilities with HSBC plc, BNP Paribas and LCL with an authorization to draw up to a maximum of €21.5 million ($24.9 million) in the aggregate under the short-term credit lines and overdraft facilities. As of September 30, 2021, we had not drawn on any of these facilities. Any loans or overdrafts under these short-term facilities bear interest based on the one month EURIBOR rate or three month EURIBOR rate. As these facilities are exclusively short-term credit and overdraft facilities, our banks have the ability to terminate such facilities on short notice.

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, 2021	$	1,179	$	1,071	$	2,250
Increase	739		785		1,524
Provision used	(388)		—		(388)
Provision released not used*	(398)		—		(398)
Currency translation adjustments	(69)		(91)		(160)
Balance at September 30, 2021	$	1,063	$	1,765	$	2,828
- of which current	1,063		1,765		2,828

*Due to changes in management's latest estimates

The amount of the provisions represents management’s latest estimate of the expected impact.

Regulatory matters

As indicated in our Annual Report on Form 10-K for the year ended December 31, 2020, in November 2018, Privacy International filed a complaint with certain data protection authorities, including France's Commission Nationale de l'Informatique et des Libertés ("CNIL"), against Criteo and a number of other similarly situated advertising technology companies, arguing that certain of these companies' practices do not comply with the European Union's General Data Protection Regulation ("GDPR"). In January 2020, CNIL opened a formal investigation into Criteo in response to this complaint, which is still ongoing as per CNIL’s notification to Criteo dated June 23, 2021, which notified the Company of the appointment of an investigator (rapporteur). There can be no assurance that actions by the Company will not be required as a result of the investigation. However, at the current phase of the investigation, due to the absence of any specific grievance or sanction and the lack of any legal grounds therefor, we consider this to be an unasserted claim for which an unfavorable outcome is only reasonably possible, and the amount of the potential loss cannot be reasonably estimated in accordance with "ASC 450 Contingencies”, therefore, we have not accrued a loss contingency.

XML

Breakdown of Revenue and Non-Current Assets by Geographical Areas

9 Months Ended

Sep. 30, 2021

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)
September 30, 2021	$	204,428	$	188,354	$	115,798	$	508,580
September 30, 2020	$	204,618	$	167,800	$	97,927	$	470,345

Revenue generated in France, the country of incorporation of the Parent, amounted to $33.5 million and $30.7 million for the three months ended September 30, 2021 and 2020, respectively.

	Americas		EMEA		Asia-Pacific		Total
For the nine months ended:	(in thousands)
September 30, 2021	$	629,555	$	609,753	$	361,660	$	1,600,968
September 30, 2020	$	582,037	$	517,535	$	311,763	$	1,411,335

Revenue generated in France amounted to $110.3 million and $90.0 million for the nine month ended September 30, 2021 and September 30, 2020, respectively.

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

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Americas
United States	$	179,302	$	185,547	$	559,965	$	528,453
EMEA
Germany	$	49,927	$	39,246	$	156,574	$	129,485
United Kingdom	$	18,936	$	21,597	$	64,340	$	63,274
Asia-Pacific
Japan	$	72,437	$	68,459	$	231,440	$	220,878

Other Information

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

					Of which						Of which
	Holding		Americas		United States		EMEA		Asia-Pacific		Japan		Total
(in thousands)
September 30, 2021	$	112,974	$	78,950	$	78,093	$	14,071	$	33,405	$	13,060	$	239,400
December 31, 2020	$	135,516	$	93,389	$	93,030	$	8,746	$	31,598	$	20,532	$	269,249

XML

Related Parties	9 Months Ended
	Sep. 30, 2021
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 24 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

XML

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company evaluated all subsequent events that occurred after September 30, 2021 through the date of issuance of the unaudited condensed consolidated financial statements and determined there are no significant events that require adjustments or disclosure.

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

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 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 on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021. 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) revenue recognition criteria, (2) allowances for credit losses, (3) research tax credits, (4) income taxes, including (i) recognition of deferred tax assets arising from the subsidiaries projected taxable profit for future years, (ii) evaluation of uncertain tax positions associated with our transfer pricing policy and (iii) recognition of income tax position in respect with tax reforms recently enacted in countries we operate, (5) assumptions used in valuing acquired assets and assumed liabilities in business combinations, (6) assumptions used in the valuation of goodwill, intangible assets and right of use assets - operating lease, and (7) assumptions used in the valuation model to determine the fair value of share-based compensation plan.

The severity, magnitude, duration and after-effects of the COVID-19 pandemic on general economic conditions increase uncertainty associated with these estimates, in particular those related to allowance for credit losses, assumptions used in the valuation of goodwill and estimates relating to income taxes.

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, 2020, except for the update to our existing accounting policy described below:

Revenue Recognition

Revenue Recognition

Principal vs Agent:

For certain customer arrangements, related to transactions using our Retail Media Platform, a new self-service solution providing transparency, measurement and control to our brand and retailer customers, we act as agent, because we (i) do not control the advertising inventory before it is transferred to our clients, (ii) do not have inventory risks because we do not purchase the inventory upfront and (iii) have limited discretion in establishing prices as we charge a platform fee based on a percentage of the digital advertising inventory purchased through the use of the platform. Therefore, based on these and other factors, we report the revenue earned and related costs incurred by the Retail Media Platform solution on a net basis.

Accounting Pronouncements Adopted in 2021 and Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2021

Effective January 1, 2021, we have adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. The adoption of this new standard did not have a material impact on our consolidated financial statements.

Effective January 1, 2021, we have adopted the FASB ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General. The purpose of this update is to modify disclosure requirements for Defined Benefit Plans. It removes requirements to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year among others. It adds disclosure requirements for the items such as an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The adoption of this new standard did not have a material impact on our consolidated financial statements.

Recent Accounting Pronouncements

Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s Consolidated Financial Statements upon adoption.

XML

Significant Events and Transactions of the Period (Tables)

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost

The following table presents the breakdown of restructuring liability as of September 30, 2021, presented as part of employees related payables on the balance sheet:

	(in thousands)
Restructuring liability - January 1, 2021	$	510
Restructuring costs	4,637
Amount paid	(3,600)
Restructuring liability - September 30, 2021	1,547

XML

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedules of concentration of 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:

	September 30, 2021		December 31, 2020
	(in thousands)
Trade receivables, net of allowances	439,493		474,055
Other taxes	75,214		69,987
Other current assets	23,185		21,405
Non-current financial assets	7,371		18,109
Marketable securities	56,311		41,809
Total	$	601,574	$	625,365

Schedule of financial liabilities

	September 30, 2021		December 31, 2020
	(in thousands)
Trade payables	$	349,985	$	367,025
Other taxes	53,249		58,491
Employee-related payables	72,679		85,272
Other current liabilities	38,818		33,390
Financial liabilities	856		3,275
Total	$	515,587	$	547,453

Schedule of derivative financial instruments

	September 30, 2021		December 31, 2020
	(in thousands)
Derivative Liabilities:
Included in financial liabilities - current portion	$	(155)	$	925

Schedule of assets and liabilities carried at fair value

The following table presents for each reporting period, the breakdown of cash and cash equivalents:

	September 30, 2021		December 31, 2020
	(in thousands)
Cash equivalents	$	116,834	$	162,457
Cash on hand	380,624		325,554
Total cash and cash equivalents	$	497,458	$	488,011

The following table presents for each reporting period, the breakdown of the fair value of marketable securities:

	September 30, 2021		December 31, 2020
	(in thousands)
Securities Available-for-sale
Term Deposits	$	23,158	$	24,538
Securities Held-to-maturity
Term Deposits	$	33,153	$	17,271
Total	$	56,311	$	41,809

Debt securities, available-for-sale

The following table classifies our marketable securities by contractual maturities:

	Held-to-maturity		Available-for-sale
	September 30, 2021
	(in thousands)
Due in one year	$	23,153	$	23,158
Due in one to five years	$	10,000	$	—
Total	$	33,153	$	23,158

XML

Trade Receivables (Tables)

9 Months Ended

Sep. 30, 2021

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:

	September 30, 2021		December 31, 2020
	(in thousands)
Trade accounts receivables	$	484,223	$	513,954
(Less) Allowance for credit losses	(44,730)		(39,899)
Net book value at end of period	$	439,493	$	474,055

Changes in allowance for credit accounts are summarized below:

	2021		2020
	(in thousands)
Balance at January 1	$	(39,899)	$	(16,068)
Allowance for credit losses through retained earnings (*)	—		(3,503)
Allowance for credit losses	(9,765)		(26,465)
Reversal of provision	3,895		7,944
Currency translation adjustment	1,039		(185)
Balance at September 30	$	(44,730)	$	(38,277)

(*) On January 1, 2020, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost issued by the Financial Accounting Standards Board (FASB). ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. This results in earlier recognition of credit losses. We adopted ASU 2016-13 effective January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings.

XML

Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2021

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:

	September 30, 2021		December 31, 2020
	(in thousands)
Prepayments to suppliers	$	8,151	$	5,613
Other debtors	4,785		5,991
Prepaid expenses	10,249		9,801
Net book value at end of period	$	23,185	$	21,405

XML

Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Other Liabilities Disclosure [Abstract]

Other current liabilities

Other current liabilities are presented in the following table:

	September 30, 2021		December 31, 2020
	(in thousands)
Current liabilities to clients	$	15,144	$	12,234
Rebates	16,080		14,433
Accounts payable relating to capital expenditures	4,056		4,721
Other creditors	3,158		1,918
Deferred revenue	380		84
Total	$	38,818	$	33,390

XML

Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Components of leases expense

The components of lease expense are as follows:

	Three Months Ended
	September 30, 2021						September 30, 2020
	Offices		Data Centers		Total		Offices		Data Centers		Total
	(in thousands)
Lease expense	$	2,383	$	5,703	$	8,086	$	6,969	$	7,199	$	14,168
Short term lease expense	141		26		167		115		—		115
Variable lease expense	63		66		129		307		22		329
Sublease income	(233)		—		(233)		(338)		—		(338)
Total operating lease expense	$	2,354	$	5,795	$	8,149	$	7,053	$	7,221	$	14,274

	Nine Months Ended
	September 30, 2021						September 30, 2020
	Offices		Data Centers		Total		Offices		Data Centers		Total
	(in thousands)
Lease expense	$	15,800	$	18,561	$	34,361	$	20,770	$	20,519	$	41,289
Short term lease expense	342		40		382		332		—		332
Variable lease expense	307		268		575		320		110		430
Sublease income	(709)		—		(709)		(514)		—		(514)
Total operating lease expense	$	15,740	$	18,869	$	34,609	$	20,908	$	20,629	$	41,537

XML

Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Schedule of Accumulated and Projected Benefit Obligations

The following table summarizes the changes in the projected benefit obligation:

	Projected benefit obligation
	(in thousands)
Projected benefit obligation present value at January 1, 2020	$	8,485
Service cost	2,232
Interest cost	95
Actuarial losses (gains)	(5,214)
Currency translation adjustment	569
Projected benefit obligation present value at December 31, 2020	$	6,167
Service cost	1,005
Interest cost	38
Actuarial losses (gains)	(683)
Currency translation adjustment	(360)
Projected benefit obligation present value at September 30, 2021	$	6,167

Schedule of Assumptions Used

The main assumptions used for the purposes of the actuarial valuations are listed below:

	Nine Months Ended	Year ended
	September 30, 2021	December 31, 2020
Discount rate (Corp AA)	1.25%	0.85%
Expected rate of salary increase	5%	5%
Expected rate of social charges	49% - 50%	49% - 50%
Expected staff turnover	—% - 17.8%	—% - 17.8%
Estimated retirement age	Progressive table	Progressive table
Life table	TH-TF 2000-2002 shifted	TH-TF 2000-2002 shifted

Defined Contribution Plan Disclosures

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Defined contributions plans included in personnel expenses	$	(3,638)	$	(3,637)	$	(12,638)	$	(11,508)

XML

Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents our disaggregated revenues:

	Marketing Solutions		Retail Media		Total
For the three months ended	(in thousands)
September 30, 2021	$	458,622	$	49,958	$	508,580
September 30, 2020	$	412,126	$	58,219	$	470,345

	Marketing Solutions		Retail Media		Total
For the nine months ended	(in thousands)
September 30, 2021	$	1,429,277	$	171,691	$	1,600,968
September 30, 2020	$	1,263,169	$	148,166	$	1,411,335

XML

Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

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

Change in number of outstanding BSPCE / OSA / RSU / BSA

	OSA/BSPCE	RSU/PSU	BSA	Total
Balance at January 1, 2021	2,102,158	4,954,091	343,775	7,400,024
Granted	—	2,331,639	—	2,331,639
Exercised (OSA/BSPCE/BSA)	(898,627)	—	—	(898,627)
Vested (RSU)	—	(1,118,523)	—	(1,118,523)
Forfeited	(389,149)	(464,052)	—	(853,201)
Expired	—	—	—	—
Balance at September 30, 2021	814,382	5,703,155	343,775	6,861,312

Breakdown of the Closing Balance

	OSA/BSPCE		RSU	BSA
Number outstanding	814,382		5,703,155	343,775
Weighted-average exercise price	€	19.82	NA	€	15.12
Number vested	458,600		—	343,775
Weighted-average exercise price	€	24.38	NA	€	15.12
Weighted-average remaining contractual life of options outstanding, in years	6.07		NA	6.04

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

Reconciliation with the Unaudited Consolidated Statements of Income

	Three Months Ended
	September 30, 2021								September 30, 2020
	(in thousands)
	R&D		S&O		G&A		Total		R&D		S&O		G&A		Total
RSUs	$	(4,858)	$	(3,818)	$	(3,931)	$	(12,607)	$	(3,333)	$	(2,957)	$	(595)	$	(6,885)
Share options / BSPCE	—		(58)		(157)		(215)		—		(233)		661		428
Total share-based compensation	(4,858)		(3,876)		(4,088)		(12,822)		(3,333)		(3,190)		66		(6,457)
BSAs	—		—		(467)		(467)		—		—		(346)		(346)
Total equity awards compensation expense	$	(4,858)	$	(3,876)	$	(4,555)	$	(13,289)	$	(3,333)	$	(3,190)	$	(280)	$	(6,803)

	Nine Months Ended
	September 30, 2021								September 30, 2020
	(in thousands)
	R&D		S&O		G&A		Total		R&D		S&O		G&A		Total
RSUs	$	(11,572)	$	(9,026)	$	(9,402)	$	(30,000)	$	(7,771)	$	(8,092)	$	(5,168)	$	(21,031)
Share options / BSPCE	—		(240)		(568)		(808)		—		(288)		(73)		(361)
Total share-based compensation	(11,572)		(9,266)		(9,970)		(30,808)		(7,771)		(8,380)		(5,241)		(21,392)
BSAs	—		—		(1,366)		(1,366)		—		—		(1,073)		(1,073)
Total equity awards compensation expense	$	(11,572)	$	(9,266)	$	(11,336)	$	(32,174)	$	(7,771)	$	(8,380)	$	(6,314)	$	(22,465)

XML

Financial Income and Expenses (Tables)

9 Months Ended

Sep. 30, 2021

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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Financial income from cash equivalents	$	179	$	108	$	505	$	551
Interest and fees	(445)		(677)		(1,491)		(1,920)
Interest on debt	(361)		(437)		(1,242)		(1,455)
Fees	(84)		(240)		(249)		(465)
Foreign exchange gain (loss)	952		107		(367)		(389)
Other financial expense	(840)		(29)		(38)		(70)
Total financial expense	$	(154)	$	(491)	$	(1,391)	$	(1,828)

XML

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

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:

	Nine Months Ended
	September 30, 2021		September 30, 2020
	(in thousands)
Current income tax	$	(17,465)	$	(19,640)
Net change in deferred taxes	(4,568)		7,697
Provision for income taxes	$	(22,033)	$	(11,943)

XML

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of basic earnings per share

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income attributable to shareholders of Criteo S.A.	$	23,481	$	5,227	$	60,691	$	26,402
Weighted average number of shares outstanding	60,873,594		60,080,598		60,759,613		61,059,345
Basic earnings per share	$	0.39	$	0.09	$	1.00	$	0.43

Schedule of diluted earnings per share

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income attributable to shareholders of Criteo S.A.	$	23,481	$	5,227	$	60,691	$	26,402
Weighted average number of shares outstanding of Criteo S.A.	60,873,594		60,080,598		60,759,613		61,059,345
Dilutive effect of :
Restricted share awards ("RSUs")	2,865,581		811,136		3,074,241		440,835
Share options and BSPCE	334,028		128,291		375,211		133,865
Share warrants	124,483		7,770		104,461		10,782
Weighted average number of shares outstanding used to determine diluted earnings per share	64,197,686		61,027,795		64,313,526		61,644,827
Diluted earnings per share	$	0.37	$	0.09	$	0.94	$	0.43

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		Nine Months Ended
	September 30, 2021	September 30, 2020	September 30, 2021	September 30, 2020
Restricted share awards	—	428,949	396,937	2,284,562
Share options and BSPCE	—	140,513	—	93,675
Weighted average number of anti-dilutive securities excluded from diluted earnings per share	—	569,462	396,937	2,378,237

XML

Commitments and contingencies (Tables)

9 Months Ended

Sep. 30, 2021

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, 2021	$	1,179	$	1,071	$	2,250
Increase	739		785		1,524
Provision used	(388)		—		(388)
Provision released not used*	(398)		—		(398)
Currency translation adjustments	(69)		(91)		(160)
Balance at September 30, 2021	$	1,063	$	1,765	$	2,828
- of which current	1,063		1,765		2,828

*Due to changes in management's latest estimates

XML

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

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of consolidated revenue for each geographical area

Revenue by geographical area is based on the location of advertisers’ campaigns.

	Americas		EMEA		Asia-Pacific		Total
For the three months ended:	(in thousands)
September 30, 2021	$	204,428	$	188,354	$	115,798	$	508,580
September 30, 2020	$	204,618	$	167,800	$	97,927	$	470,345

	Americas		EMEA		Asia-Pacific		Total
For the nine months ended:	(in thousands)
September 30, 2021	$	629,555	$	609,753	$	361,660	$	1,600,968
September 30, 2020	$	582,037	$	517,535	$	311,763	$	1,411,335

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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in thousands)
Americas
United States	$	179,302	$	185,547	$	559,965	$	528,453
EMEA
Germany	$	49,927	$	39,246	$	156,574	$	129,485
United Kingdom	$	18,936	$	21,597	$	64,340	$	63,274
Asia-Pacific
Japan	$	72,437	$	68,459	$	231,440	$	220,878

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, excluding right of use assets related to lease agreements) are presented in the table below. The geographical information includes results from the locations of legal entities.

					Of which						Of which
	Holding		Americas		United States		EMEA		Asia-Pacific		Japan		Total
(in thousands)
September 30, 2021	$	112,974	$	78,950	$	78,093	$	14,071	$	33,405	$	13,060	$	239,400
December 31, 2020	$	135,516	$	93,389	$	93,030	$	8,746	$	31,598	$	20,532	$	269,249

XML

Significant Events and Transactions of the Period - Restructuring (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 4,637
S&O
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3,400
G&A
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,100
R&D
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 100

XML

Significant Events and Transactions of the Period - Summary of Restructuring Reserve (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	$ 510
Restructuring costs	4,637
Amount paid	(3,600)
Restructuring liability, ending balance	$ 1,547

XML

Significant Events and Transactions of the Period - Acquisition of Doobe In Site Ltd. (Details) - USD ($) $ in Thousands	May 18, 2021	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Provisional goodwill		$ 330,561	$ 325,805
Doobe In Site Inc.
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 9,900
Business combination, technology	8,000
Business combination, employee related payable	5,100
Business combination, redemption fee payable	2,500
Provisional goodwill	8,500
Business combination, acquisition related costs	$ 500

XML

Financial Instruments - Financial Assets and Credit Risk (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Maximum exposure	$ 601,574	$ 625,365
Trade receivables, net of allowances
Concentration Risk [Line Items]
Maximum exposure	439,493	474,055
Other taxes
Concentration Risk [Line Items]
Maximum exposure	75,214	69,987
Other current assets
Concentration Risk [Line Items]
Maximum exposure	23,185	21,405
Non-current financial assets
Concentration Risk [Line Items]
Maximum exposure	7,371	18,109
Marketable securities
Concentration Risk [Line Items]
Maximum exposure	$ 56,311	$ 41,809

XML

Financial Instruments - Financial Liabilities (Details) - Fair value - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trade payables	$ 349,985	$ 367,025
Other taxes	53,249	58,491
Employee-related payables	72,679	85,272
Other current liabilities	38,818	33,390
Financial liabilities	856	3,275
Total	$ 515,587	$ 547,453

XML

Financial Instruments - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Inputs, Level 2 | Fair value
Derivative Liabilities:
Included in financial liabilities - current portion	$ (155)	$ 925

XML

Financial Instruments - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Cash equivalents	$ 116,834	$ 162,457
Cash on hand	380,624	325,554
Total cash and cash equivalents	$ 497,458	$ 488,011

XML

Financial Instruments - Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities - non current portion	$ 10,000	$ 41,809
Fair value | Term Deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt securities, available-for-sale, noncurrent	23,158	24,538
Debt securities, held-to-maturity, noncurrent	33,153	17,271
Marketable securities - non current portion	$ 56,311	$ 41,809

XML

Financial Instruments - Marketable Securities Maturities (Details) - Term Deposits $ in Thousands	Sep. 30, 2021 USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Due in one year	$ 23,153
Due in one to five years	10,000
Debt securities, held-to-maturity, fair value	33,153
Debt Securities, Available-for-sale [Line Items]
Due in one year	23,158
Due in one to five years	0
Debt securities, available-for-sale, fair value	$ 23,158

XML

Trade Receivables - Breakdown in Trade Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Trade accounts receivables	$ 484,223	$ 513,954
(Less) Allowance for credit losses	(44,730)	(39,899)	$ (38,277)	$ (16,068)
Net book value at end of period	$ 439,493	$ 474,055

XML

Trade Receivables - Allowance for Doubtful Accounts Rollforward (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, at beginning of the period	$ (39,899)	$ (16,068)
Allowance for credit losses	(9,765)	(26,465)
Reversal of provision	3,895	7,944
Currency translation adjustment	1,039	(185)
Balance, at end of the period	$ (44,730)	(38,277)
Cumulative effect, period of adoption, adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, at beginning of the period		$ (3,503)

XML

Trade Receivables - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Receivables [Abstract]
Accounts receivable, previously written off, recovered	$ 2.0	$ 2.8

XML

Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepayments to suppliers	$ 8,151	$ 5,613
Other debtors	4,785	5,991
Prepaid expenses	10,249	9,801
Net book value at end of period	$ 23,185	$ 21,405

XML

Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Current liabilities to clients	$ 15,144	$ 12,234
Rebates	16,080	14,433
Accounts payable relating to capital expenditures	4,056	4,721
Other creditors	3,158	1,918
Deferred revenue	380	84
Total	$ 38,818	$ 33,390

XML

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lessee, Lease, Description [Line Items]
Lease expense	$ 8,086	$ 14,168	$ 34,361	$ 41,289
Short term lease expense	167	115	382	332
Variable lease expense	129	329	575	430
Sublease income	(233)	(338)	(709)	(514)
Total operating lease expense	8,149	14,274	34,609	41,537
Offices
Lessee, Lease, Description [Line Items]
Lease expense	2,383	6,969	15,800	20,770
Short term lease expense	141	115	342	332
Variable lease expense	63	307	307	320
Sublease income	(233)	(338)	(709)	(514)
Total operating lease expense	2,354	7,053	15,740	20,908
Data Centers
Lessee, Lease, Description [Line Items]
Lease expense	5,703	7,199	18,561	20,519
Short term lease expense	26	0	40	0
Variable lease expense	66	22	268	110
Sublease income	0	0	0	0
Total operating lease expense	$ 5,795	$ 7,221	$ 18,869	$ 20,629

XML

Employee Benefits - Changes in the projected benefit obligation (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Projected benefit obligation present value at beginning of period	$ 6,167	$ 8,485
Service cost	1,005	2,232
Interest cost	38	95
Actuarial losses (gains)	(683)	(5,214)
Currency translation adjustment	(360)	569
Projected benefit obligation present value at ending of period	$ 6,167	$ 6,167

XML

Employee Benefits - Schedule of Assumptions Used for Actuarial Valuations (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Discount rate (Corp AA)	1.25%	0.85%
Expected rate of salary increase	5.00%	5.00%
Minimum
Defined Benefit Plan Disclosure [Line Items]
Expected rate of social charges	49.00%	49.00%
Expected staff turnover	0.00%	0.00%
Maximum
Defined Benefit Plan Disclosure [Line Items]
Expected rate of social charges	50.00%	50.00%
Expected staff turnover	17.80%	17.80%

XML

Employee Benefits - Schedule of Defined Contribution Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Retirement Benefits [Abstract]
Defined contributions plans included in personnel expenses	$ (3,638)	$ (3,637)	$ (12,638)	$ (11,508)

XML

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 508,580	$ 470,345	$ 1,600,968	$ 1,411,335
Marketing Solutions
Disaggregation of Revenue [Line Items]
Revenue	458,622	412,126	1,429,277	1,263,169
Retail Media
Disaggregation of Revenue [Line Items]
Revenue	$ 49,958	$ 58,219	$ 171,691	$ 148,166

XML

Share-Based Compensation - Narrative (Details) - Plan 13						9 Months Ended
	Jul. 29, 2021 shares	Jun. 24, 2021 shares	Jun. 14, 2021 shares	Apr. 29, 2021 shares	Feb. 25, 2021 shares	Sep. 30, 2021 grant
RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of grants in period | grant						5
Number of RSUs granted (in shares)	75,080	56,500	858,511	758,979	96,450
RSU | Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs granted (in shares)					235,850
PSUs | Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs granted (in shares)			14,421		235,848

XML

Share-Based Compensation - Change in Number of BSPCE/OSA/RSU/BSA (Details)	9 Months Ended
	Sep. 30, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward]
Beginning balance (in shares)	7,400,024
Granted (in shares)	2,331,639
Exercised (in shares)	(898,627)
Vested (in shares)	(1,118,523)
Forfeited (in shares)	(853,201)
Expired (in shares)	0
Ending balance (in shares)	6,861,312
OSA/BSPCE
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, options (in shares)	2,102,158
Granted, options (in shares)	0
Exercised, options (in shares)	(898,627)
Vested, options (in shares)	0
Forfeited, options (in shares)	(389,149)
Expired, options (in shares)	0
Ending balance, options (in shares)	814,382
RSU/PSU
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares)	4,954,091
Granted (in shares)	2,331,639
Exercised (in shares)	0
Vested (in shares)	(1,118,523)
Forfeited (in shares)	(464,052)
Expired (in shares)	0
Ending balance (in shares)	5,703,155
BSA
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, options (in shares)	343,775
Granted, options (in shares)	0
Exercised, options (in shares)	0
Vested, options (in shares)	0
Forfeited, options (in shares)	0
Expired, options (in shares)	0
Ending balance, options (in shares)	343,775

XML

Share-Based Compensation - Breakdown of the Closing Balance (Details) - € / shares	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
OSA/BSPCE
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number outstanding, options (in shares)	814,382	2,102,158
Weighted-average exercise price, options (in euro per share)	€ 19.82
Number vested, options (in shares)	458,600
Weighted-average exercise price, options (in euro per share)	€ 24.38
Weighted-average remaining contractual life of options outstanding, in years	6 years 25 days
RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number outstanding (in shares)	5,703,155
Number vested, options (in shares)	0
BSA
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number outstanding, options (in shares)	343,775	343,775
Weighted-average exercise price, options (in euro per share)	€ 15.12
Number vested, options (in shares)	343,775
Weighted-average exercise price, options (in euro per share)	€ 15.12
Weighted-average remaining contractual life of options outstanding, in years	6 years 14 days

XML

Share-Based Compensation - Share-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	$ (12,822)	$ (6,457)	$ (30,808)	$ (21,392)
Total equity awards compensation expense	(13,289)	(6,803)	(32,174)	(22,465)
R&D
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(4,858)	(3,333)	(11,572)	(7,771)
Total equity awards compensation expense	(4,858)	(3,333)	(11,572)	(7,771)
S&O
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(3,876)	(3,190)	(9,266)	(8,380)
Total equity awards compensation expense	(3,876)	(3,190)	(9,266)	(8,380)
G&A
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(4,088)	66	(9,970)	(5,241)
Total equity awards compensation expense	(4,555)	(280)	(11,336)	(6,314)
RSU
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(12,607)	(6,885)	(30,000)	(21,031)
RSU | R&D
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(4,858)	(3,333)	(11,572)	(7,771)
RSU | S&O
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(3,818)	(2,957)	(9,026)	(8,092)
RSU | G&A
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(3,931)	(595)	(9,402)	(5,168)
OSA/BSPCE
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(215)	428	(808)	(361)
OSA/BSPCE | R&D
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	0	0	0	0
OSA/BSPCE | S&O
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(58)	(233)	(240)	(288)
OSA/BSPCE | G&A
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation	(157)	661	(568)	(73)
BSA
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
BSAs	(467)	(346)	(1,366)	(1,073)
BSA | R&D
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
BSAs	0	0	0	0
BSA | S&O
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
BSAs	0	0	0	0
BSA | G&A
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
BSAs	$ (467)	$ (346)	$ (1,366)	$ (1,073)

XML

Financial Income and Expenses - Financial income (expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Income and Expenses [Abstract]
Financial income from cash equivalents	$ 179	$ 108	$ 505	$ 551
Interest and fees	(445)	(677)	(1,491)	(1,920)
Interest on debt	(361)	(437)	(1,242)	(1,455)
Fees	(84)	(240)	(249)	(465)
Foreign exchange gain (loss)	952	107	(367)	(389)
Other financial expense	(840)	(29)	(38)	(70)
Total financial expense	$ (154)	$ (491)	$ (1,391)	$ (1,828)

XML

Financial Income and Expenses - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Income and Expenses [Abstract]
Financial expense	$ 154	$ 491	$ 1,391	$ 1,828

XML

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Current income tax			$ (17,465)	$ (19,640)
Net change in deferred taxes			(4,568)	7,697
Provision for income taxes	$ (7,801)	$ (2,267)	$ (22,033)	$ (11,943)

XML

Income Taxes - Narrative (Details)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Estimated tax rate	26.00%	30.00%

XML

Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income attributable to shareholders of Criteo S.A.	$ 23,481	$ 5,227	$ 60,691	$ 26,402
Weighted average number of shares outstanding (in shares)	60,873,594	60,080,598	60,759,613	61,059,345
Basic earnings per share (in USD per share)	$ 0.39	$ 0.09	$ 1.00	$ 0.43

XML

Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income attributable to shareholders of Criteo S.A.	$ 23,481	$ 5,227	$ 60,691	$ 26,402
Weighted average number of shares outstanding (in shares)	60,873,594	60,080,598	60,759,613	61,059,345
Dilutive effect of :
Restricted share awards (RSU's) (in shares)	2,865,581	811,136	3,074,241	440,835
Share options and BSPCE (in shares)	334,028	128,291	375,211	133,865
Share warrants (in shares)	124,483	7,770	104,461	10,782
Weighted average number of shares outstanding used to determine diluted earnings per share (in shares)	64,197,686	61,027,795	64,313,526	61,644,827
Diluted earnings per share (in USD per share)	$ 0.37	$ 0.09	$ 0.94	$ 0.43

XML

Earnings Per Share - Anti-Dilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
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	569,462	396,937	2,378,237
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)	0	428,949	396,937	2,284,562
Share options and 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	140,513	0	93,675

XML

Commitments and contingencies - Commitments (Details) - Sep. 30, 2021 - Revolving credit facility - Line of credit € in Millions, $ in Millions	EUR (€)	USD ($)
Bank syndicate RCF
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	€ 350.0	$ 405.3
HSBC and LCL facilities
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	€ 21.5	$ 24.9

XML

Commitments and contingencies - Contingencies (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Loss Contingency Accrual [Roll Forward]
Contingencies accrual, beginning balance	$ 2,250
Increase	1,524
Provision used	(388)
Provision released not used	(398)
Currency translation adjustments	(160)
Contingencies accrual, ending balance	2,828
Contingencies accrual, of which current	2,828
Provision for employee-related litigation
Loss Contingency Accrual [Roll Forward]
Contingencies accrual, beginning balance	1,179
Increase	739
Provision used	(388)
Provision released not used	(398)
Currency translation adjustments	(69)
Contingencies accrual, ending balance	1,063
Contingencies accrual, of which current	1,063
Other provisions
Loss Contingency Accrual [Roll Forward]
Contingencies accrual, beginning balance	1,071
Increase	785
Provision used	0
Provision released not used	0
Currency translation adjustments	(91)
Contingencies accrual, ending balance	1,765
Contingencies accrual, of which current	$ 1,765

XML

Breakdown of Revenue and Non-Current Assets by Geographical Areas - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($) market	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) market	Sep. 30, 2020 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of geographical markets | market	3		3
Revenue	$ 508,580	$ 470,345	$ 1,600,968	$ 1,411,335
France
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 33,500	$ 30,700	$ 110,300	$ 90,000

XML

Breakdown of Revenue and Non-Current Assets by Geographical Areas - Revenue by Geographical Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 508,580	$ 470,345	$ 1,600,968	$ 1,411,335
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	204,428	204,618	629,555	582,037
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	188,354	167,800	609,753	517,535
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 115,798	$ 97,927	$ 361,660	$ 311,763

XML

Breakdown of Revenue and Non-Current Assets by Geographical Areas - Revenue by Significant Other Countries (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 508,580	$ 470,345	$ 1,600,968	$ 1,411,335
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	179,302	185,547	559,965	528,453
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	49,927	39,246	156,574	129,485
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	18,936	21,597	64,340	63,274
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 72,437	$ 68,459	$ 231,440	$ 220,878

XML

Breakdown of Revenue and Non-Current Assets by Geographical Areas - Other Information (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	$ 239,400	$ 269,249
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	78,950	93,389
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	78,093	93,030
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	14,071	8,746
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	33,405	31,598
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	13,060	20,532
Holding
Revenues from External Customers and Long-Lived Assets [Line Items]
Non-current assets	$ 112,974	$ 135,516