Criteo SA Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rocco Strauss - Arete Research Services LLP - Analyst : Megan, I think you touched on IDFAs or the changes coming with iOS 14. Is there a way to size the share of inventory today that transacts on IDFAs in the core retargeting business as well as in the app installed business within new solutions? And how quickly are advertisers actually like able to shift targeting towards other IDs? And secondly, with the hiring of Todd from OpenX, the ID initiatives, the growing number of publisher integrations, it seems you're aiming more and more to cut out the SSPs and the exchanges fully from the equation, kind of becoming your own SSP. I guess the question here is, is there some thinking of opening Criteo's direct bidder to other third-party DSPs to enable like campaigns on those third-party DSPs to be enhanced by Criteo's ID graph?

Question: Daniel Salmon - BMO Capital Markets Equity Research - Analyst : All right. Great. Thanks for the comments on IDFA and trying to size it, as you noted, but it's complicated, Megan, and I think we'll probably not try to dig any more on sizing for it, but some of Dave's color on the 4Q impact was helpful. I guess what I'd like to dig in instead, you elaborated off the top on the Retail Media business, which is understandable why retargeting has gotten most of the focus with your business, it's the largest piece of the business. But Retail Media is really coming on strong. And what I'd like to ask a without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JULY 29, 2020 / 12:00PM, CRTO.OQ - Q2 2020 Criteo SA Earnings Call little bit more about is, I think, the role of the use of an outsourced ad tech stack, it's always made sense for small and midsized players who don't have the resources to build themselves. But I'd love to hear you just talk a little bit more about how the conversation works with larger retailers who may have some of their own resources but also tap into your offering and how you maintain strong relationships there.

Question: Daniel Salmon - BMO Capital Markets Equity Research - Analyst : That's great. And just if I could have 1 follow-up. You spoke, of course, about the high-level strategy around identity, and you come from Nielsen where the whole idea of a single source of truth is the foundation -- has always been the foundation of the business. And Dave obviously spent some time there as well. My question to you is, do you think that there can be a single source of truth in digital? And if not, what do you think the most important differences are and how an ecosystem works with multiple consented identities versus a singular one?

Question: Sarah Simon - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I've got a couple of questions. First one, on the client retention. Dave, you mentioned it went down. Can you talk about the causes of that? I mean do you think that's basically COVID and Classified and Travel guys simply not spending anymore? Or do you think there's a more materiality we need to be thinking about? The second one was a really small point. Can you just remind us again, what was the $4 million kind of one-off revenue that you were talking about? I didn't catch the explanation. And then as we think about the 4,700 publishers, you've directly integrated with, what's the gating fact -- I mean, obviously, that gives you first-party data. It addresses a lot of the issues people have around Chrome and cookies. So what's sort of holding back that number? Presumably, most publishers would want to integrate with you. So any kind of thoughts on how you speed that process up or why you wouldn't want to would be helpful.

Question: Sarah Simon - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. So basically, is it fair to say that you try and do these integrations more with those publishers that have first-party data than not? Or would you be trying to drive direct integrations regardless? Because obviously there are the economics of header bidding take into account as well.