Shares of Criteo (CRTO +6.03%) opened Wednesday's trading 8.7% higher. The Paris-based digital advertising specialist reported strong third-quarter results early in the morning, and the company also announced a two-step relocation plan.
NASDAQ: CRTO
Key Data Points
Criteo's Q3 numbers and relocation
Criteo's Q3 contribution excluding traffic acquisition costs (ex-TAC), a non-GAAP revenue measurement commonly used in the advertising industry, rose 8% year over year to $288 million. Adjusted earnings jumped 36% higher, landing at $1.31 per diluted share. The average Wall Street analyst would have settled for contribution ex-TAC of $281.3 million and earnings in the neighborhood of $0.93 per share.
On top of the rock-solid results, Criteo will move its corporate domicile from Paris to Luxembourg in 2026, with the option to then relocate to the United States in the future.
The move to Luxembourg helps Criteo move its American stock listing from the current American depositary shares (ADS) to a direct listing on the Nasdaq (NDAQ 2.91%) stock exchange. That move makes Criteo's stock easier to trade on the massive U.S. stock market. Along with the potential cross-Atlantic move of corporate headquarters, Criteo could even be eligible for inclusion in the S&P 500 (SNPINDEX: ^GSPC) market index someday.
Why Criteo is packing its corporate bags
Moving your entire company to America just to pursue index membership may sound silly, but management explained this idea on the earnings call:
"We believe it would expand our access to passive capital, triggering associated benchmarking from actively managed funds and broadening our shareholder base," CFO Sarah Glickman said.
