When Criteo first broke out the non-retargeting revenue in 2017, the company set a goal to grow to 30% of overall business in three years. The new solutions grew from 9% of revenue at the end of 2017 to 13% last quarter. “We realize we have a long way to go. But as of today, those different product lines are showing very solid velocity,” CEO JB Rudelle told an investor.
Rudelle doesn’t believe other browsers like Google Chrome, which controls about two-thirds of the browser market, will enforce ITP-like policies.
“Google is under a high level of scrutiny regarding their business practices, both in the United States and in Europe,” he said. “Given all of this, and although we cannot guarantee, of course, we believe it's highly unlikely that Google will take advantage of its control over Chrome to restrict the ability of other digital advertising players.”
And if browser restrictions of data and advertising are limited to Safari, then the retargeting business should be stable enough to support the slow growth of Criteo’s newer products.
The company also has $364 million in cash on hand, $50 million less than the end of 2017, but still enough to weather tough times, or a regulatory fine. Criteo shares jumped 10% after its earnings report, so investors at least are comforted that Criteo stemmed its losses in 2018 and will grow out of its retargeting roots.
Criteo faced immense scrutiny last year over GDPR implementation and mobile browser policies, but has emerged healthy, Fouilland said, though not entirely unscathed. “Our business has demonstrated its strong resilience despite heavy headwinds.”