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NEW YORK - Criteo S.A. (NASDAQ: CRTO), a prominent commerce media company, announced today that CEO Megan Clarken plans to retire within the next year. Clarken will maintain her role until a successor is appointed and will also resign from the Board of Directors at that time. Following the transition, she will serve as a senior advisor to the company.
The Board has initiated a search for Clarken's replacement, employing the services of executive search firm Heidrick & Struggles to identify potential candidates. The search will consider both internal and external prospects for the leadership position.
Rachel Picard, Chair of Criteo's Board, expressed the Board's appreciation for Clarken's contributions, highlighting her role in Criteo's growth and transformation into a leading end-to-end AdTech platform in Retail and Commerce Media. Picard assured stakeholders of the Board's confidence in the current strategy and leadership team, emphasizing the goal to appoint a new CEO who will advance the company's vision.
Clarken reflected on her tenure, noting the company's evolution into a Commerce and Retail Media powerhouse and its position as a global leader in the AdTech space. She committed to leading Criteo with focus until her departure and to a seamless succession process.
This announcement comes as Criteo continues to connect marketers and media owners through its Commerce Media Platform, fostering impactful advertising and supporting an open internet ecosystem.
The information in this article is based on a press release statement from Criteo S.A.
In other recent news, Criteo S.A. has been receiving positive attention from analysts, following a strong Q2 earnings report. DA Davidson upgraded Criteo's stock to 'Buy' from 'Neutral', setting a new price target of $58.00. This upgrade reflects the firm's renewed confidence in Criteo's performance, particularly after the company's Q2 earnings demonstrated its financial health and ability to outperform amidst market fluctuations.
Similarly, BMO Capital Markets maintained its 'Outperform' rating on Criteo, increasing its price target to $55.00. This followed Criteo's impressive Q2 results, where the company's Revenue Contribution ex-TAC surpassed consensus estimates by 1%, and adjusted EBITDA beat estimates by 29%.
In the same vein, Criteo reported robust growth in its Q2 2024 earnings call, marking the third consecutive quarter of double-digit organic growth. The company reported Q2 revenue of $471 million and adjusted EBITDA of $93 million, reflecting a 14% growth at constant currency and a 67% increase year-over-year, respectively.
These recent developments highlight the positive trajectory of Criteo, with both DA Davidson and BMO Capital Markets expressing confidence in the company's future prospects.
InvestingPro Insights
As Criteo S.A. (NASDAQ: CRTO) prepares for a leadership transition, the company's financial health and market performance remain critical for investors monitoring the situation. According to InvestingPro data, Criteo holds a market capitalization of $2.76 billion, with an adjusted price-to-earnings (P/E) ratio of 23.34 for the last twelve months as of Q2 2024. This suggests a valuation that takes into account the company's earnings relative to its share price.
InvestingPro Tips for Criteo highlight two notable aspects of the company's financial strategy and outlook. Firstly, management has been actively engaged in share buybacks, a move that can reflect confidence in the company's value and prospects. Secondly, Criteo is in a solid financial position, holding more cash than debt on its balance sheet, which provides a cushion for operations and strategic initiatives during the CEO transition period.
Furthermore, the company's net income is expected to grow this year, according to InvestingPro analysts who have revised their earnings upwards for the upcoming period. This optimism is bolstered by the fact that Criteo has been profitable over the last twelve months, with a return on assets of 4.9%. Such financial stability could be a key factor in attracting a high-caliber successor to lead the company forward.
For investors seeking a deeper dive into Criteo's performance and potential, InvestingPro offers additional insights, including a total of 16 InvestingPro Tips that can be accessed for more comprehensive analysis.
The upcoming earnings date on October 30, 2024, will be another pivotal moment for the company, providing further clarity on its financial trajectory and the effectiveness of its commerce media strategies. With a fair value estimation by analysts at $56 and an InvestingPro Fair Value at $49.69, the market will be watching closely to see how the company's stock responds to its ongoing initiatives and leadership changes.
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