Criteo disclosed its retail media revenue for the first time, earning $50.2 million in Q1 from its retail media unit, Commerce Max. This is an increase from $37.4 million in the same period last year. Performance Media, Criteo's legacy retargeting business, generated $399.2 million in Q1, slightly down from $407 million a year ago.
Criteo's total Q1 revenue improved modestly year over year from $445 million to $450 million. Profitability also improved, going from a $12 million loss in Q1 2023 to a $9 million net gain this year. This is attributed to a reduction in headcount and a decrease in traffic acquisition costs (TAC) from $224.4 million a year ago to $196.2 million in Q1.
CEO Megan Clarken stated that Criteo's TAC will continue to decrease as retail media overtakes retargeting. Despite forecasting a $35 million loss this year due to Google's third-party cookie deprecation plan for Chrome, Criteo is repurchasing shares, having spent $62 million on buybacks in Q1.
Criteo's total ad revenue growth rate was 3%, with its Retail Media segment growing by 33%. The company has a leading market footprint with more than 200 retailers and 2,700 brands. The growth in retail media is attributed to a shift in how brands spend their retail media budgets, moving from direct in-store marketing to agency media buyers running national campaigns tied to in-store and online purchases.
