Criteo announced their quarter earnings and, as far as I am a real fan of such media companies, I would like to pay more attention to this company. Basically, Criteo is a re-targeting platform - it helps publishers to monetize their traffic and advertisers to get the right client (or get the motivated traffic). Criteo announced the following numbers: As you can see, the average traffic acquisition cost is almost 60%, which is quite high number. Criteo's business model is a pure arbitrage, so we can assume that their CTR is around 0.3-0.4% (based on $3 CPM and $1.5 CPC). Hubspot wrote in their blog, that the average CTR through the different ad formats is around 0.06% (Source: Hubspot blog). So it means that Criteo's algorithms are working awesome as of now. We'll see how they can improve it. The company showed terrific trends in operating metrics. Here is what they said about their clients base:"we added over 3,000 clients and crossed the 10,000-client mark. We maintained client retention at over 90%, while growing clients 42%." Moreover, they published their customer base changes in a press-release. After some calculation we get that the average customer acquisition cost grew up by just 9% - from $63K last year to $68.5K this year and their ARPA crew up by 11.4%. As we can see, Criteo's management is working with current clients very efficiently and if they continue doing it this way, I am not worried about the company's future over the next several years. Some other important facts:Criteo increased their net income, however net income margin increased just from 4.7% to 4.8%;Cash from operating activities +50%FCF increased from $52.3M to $56.6M To be honest, I am considering of buying this stock. Their operating metrics are really good, CTR is more than 5 times higher that the average, their financials are going up. Sounds reasonable. Criteo's business model is the following: Criteo has more than 11,000 websites in their network (basically, publishers that want to monetize their traffic) -> Criteo buys the banner places on their website based on CPM (cost-per-thousand) -> due to a high number of websites and a huge number of traffic (they gather this traffic, analyze, make the customer patterns etc.) they are able to sell these banners to advertisers based on CPC (cost-per-click) rates. As you can see, here they have some kind of an arbitrage - they buy advertising based on a number of impressions and sell it based on a number of clicks. The most important fact here is their algorithms. As far as they are efficient, they keep earning lots of money. For example, an average CPM for a different types of publishers varies from $2.8 to $5, CPC for high-motivated traffic could be up to $1.5-$1.6. So basically, if the CTR is higher than 1% then Criteo gets more than 300% of ROI. (source: monetizepros.com) So as I've already mentioned, Criteo's CTR right now is around $0.3-0.4, which is quite high.