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Shares of Criteo SA (NASDAQ:CRTO) jumped 20% Wednesday following the performance marketing specialist's better-than-expected third-quarter results.
Why it's happening
Quarterly revenue excluding traffic acquisition costs climbed 68.5% (or 66.5% at constant currency) to €77.6 million. That translated to adjusted net income of €16.7 million, or roughly €0.27 per share. Criteo's number of clients also grew by 450 in Q3 to a total of 6,581, representing an increase of 42% over the same year-ago period. Meanwhile, Analysts were modeling earnings of just €0.08 per share on sales of €72.66 million.
For the current quarter, Criteo expects revenue ex-TAC to be between €89 million and €91 million. As a result, Criteo boosted is revenue ex-TAC outlook for the full -year 2014 to be between €296 million and €298 million. Analysts, on average, were expecting fourth-quarter and full-year revenue of just €81 million and €285.2 million, respectively.
As technologically advanced as Criteo's smart digital ad network might be, I enjoy company co-founder and CEO JB Rudelle's succinct explanation for their success: "We delivered another record quarter exceeding our expectations. Performance is the cornerstone of our company and we remain focused on our single goal of generating more sales for our clients."
Steve Symington owns shares of Apple. The Motley Fool recommends Apple and Criteo. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.