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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."