Shares of Criteo (CRTO -3.00%) have soared today, up by 16% as of 12:30 p.m. EDT, after the company provided an interim update on its second-quarter results. Things weren't as bad as investors had feared.
The advertising tech company said that the guidance provided at the end of April assumed "a continued decline of revenues through the month of May due to COVID-19." Fortunately, that decline did not materialize, and market conditions have improved meaningfully in May compared to April. "Therefore, as of May 29, 2020, overall revenue trends have been better than were expected at the time of the Company's April 29, 2020 guidance for the second quarter 2020," Criteo said.
Meanwhile, the company still expects to hit its goals for cost savings that it had outlined as part of its efforts to weather the crisis.
Criteo had previously guided revenue excluding traffic acquisition costs (ex-TAC) in the second quarter to $140 million to $147 million, which would have represented a decline of 32% to 35% on a constant currency basis. Adjusted EBITDA was forecast at breakeven to $7 million due to COVID-19 impacts. For reference, revenue ex-TAC in the second quarter of 2019 was $224 million.
Criteo had already withdrawn its full-year guidance due to ongoing uncertainty. The company did not elaborate further on its second-quarter financial performance or provide any other specific details.