Good day and welcome to the Criteo Q2 2014 Earnings Conference Call. Today’s conference is being recorded. Please be advised that the media will be partaking in today’s call on a listen-only mode. At this time I would like to turn the conference over to Edouard Lassalle, Head of IR. Please go ahead sir.

Thank you, Leon. Good afternoon to all of your and welcome to Criteo’s financial results for the second quarter ended June 30, 2014. Joining us on the call today are JB Rudelle, Criteo’s Co-founder and CEO and Benoit Fouilland, Chief Financial Officer. Please note that this call is being broadcast live on our Investor Relations website at ir.criteo.com. A replay of the call along with the earnings release issued after the close of the U.S. market today will also be available on our Investor Relations website. Before we begin discussing our earnings I would like to remind you that some of our discussion today will contain forward-looking statements which may include projected financial results, our operating metrics, business strategies, anticipated future product and services, anticipated investment and expansion, anticipated market demand or opportunities and other forward-looking statements. As always these statements are subject to risks, uncertainties and assumptions. Actual results and the timing of certain events may differ materially from the results or timing predicated or implied by such forward-looking statements and reported results should not be considered as an indication of future performance. Also I would like to remind you that during this course of this call we will discuss non-IFRS measures of our performance. Reconciliation to the most directly comparable IFRS financial measures are provided in the tables in the earnings press release published earlier today. Unless otherwise said all comparisons made in the course of this call are against the same period in the prior year. Now with this in mind let me turn the call over to JB Rudelle, Criteo Co-Founder and Chief Executive Officer. JB the line is all yours.

Thank you Edouard. I am delighted to share our second quarter results with all of you today. We close another record quarter of profitable growth, while exceeding the high end of our guidance, both on revenue ex-TAC and adjusted EBITDA. In the second quarter our revenue, ex-TAC increased 72% year-over-year at constant currency to €67 million. At the same time we grew adjusted EBITDA from €0.7 million in Q2 last year to €13.2 million in Q2 this year, an increase of more than 15x. Overall we continue to strengthen our position as the Performers Advertising Technology Company. Our solid performance in the second quarter was driven by three big trends. First, we further improved the performance delivered by our technology. In particular, the performance of our engine and our mobile solutions. Second, we continue to grow our clients and significantly accelerated acquisition of mid-market clients. Third, we delivered strong execution across the board in all geos. Our business rests on direct relationships with advertisers who pay us based on the measurable per-click performance we deliver. The big trends of better performance combined with broader and deeper relationships as well as focus on business execution drove our success in the quarter. In parallel with the 72% growth in revenue ex-TAC compare to last year we grew per-clicks sales for our clients by 88%, illustrating the acceleration of value delivered to clients by our products during the period. As this quarter result indicates our recurring investments in improving our technology are paying off. And we made significant progress on the rolling out our product sets. Earlier this year we announced a major breakthrough to our core underlying technology, the Criteo Engine. This is based on three years of extensive R&D in analyzing actual purchase behavior from billions of impressions, users and clicks.…

Thank you JB. I am also very pleased to report another strong quarter today. I will walk you through our quarterly financial performance in detail as well as our guidance for the third quarter and full year 2014. I will then open up the call to your questions. We delivered another record quarter of profitable growth, which exceed our revenue ex-TAC and adjusted EBIDTA expectation. Let start with our revenue for the quarter, which increased 66% or 72% at constant currency to €165.3 million compared with €99.4 million second quarter 2013. In the Americas our Q2 revenue grew 63% or 73% at constant currency to €46.9 million. In EMEA, Q2 revenue increased 58% or 57% at constant currency to €84.2 million. In Asia Pacific Q2 revenue increased 99% year-over-year or 114% at constant currency to €34.2 million. As we have repeated in the past while we view revenue as a useful indicator of our actual client spend we consider revenue ex-TAC excluding the traffic acquisition paid to our publisher as a key financial measure to evaluate and monitor our business performance. As JB highlighted, our strong performance in the second quarter reflects our continued technology improvement, our success in growing our client base and our focused execution across all geographies. Our global revenue ex-TAC grew 67% or 72% at constant currency to €67 million in the second quarter, compared to €40 million in the second quarter 2013. Our revenue ex-TAC margin in the quarter was 40.5% consistent with recent quarters and increasing 0.2 percentage points over Q2 last year. Looking at our revenue ex-TAC performance from a geo standpoint, in the Americas our revenue ex-TAC growth accelerated from 66% in Q1 to 78% in Q2 at constant currency to €18.6 million. In EMEA our revenue ex-TAC grew 61% or 60%…

Thank you (Operator Instructions). We will now take our first question from Deb Schwartz from Goldman Sachs. Please go ahead.

Great thanks. So you saw an acceleration and growth in revenue per customer in the quarter. I was wondering if you could just help us understand the drivers of that, whether it moving little bit upper funnel from an old product perspective or it's new products. And then second as it relates to mid-market opportunity, can you frame out for us a little bit from the standpoint of what are the verticals that you're seeing the most success with and how should we think about the size and online penetration of the advertisers that you're targeting with that product.

So thank very much. So when it comes to the different products contributing to our growth it's really a combination of, I mean we've been announcing in the last six to 12 months lot of new products combining mid-funnel, combining mobile e-mail marketing and many others and also the improvements, major improvement of our engine with this commercial optimizer, which is huge boost because before we're optimizing mostly on clicks and now we optimizing on conversion, which ultimately which really matters for the client. And it's really combination of all of this which creates a lot of leverage. So we still in the rolling phase of all of those products. We have enriched 100% penetration for all of them. As you know we've more than 6,000 times and up selling them with our full product suite is a long process. But it creates also the stronger tailwind into our business into increasing the contribution of our existing client base and we think this is a big strength of our model. Yeah, regarding verticals on mid-market it's very similar to Q1, It’s just that the size of the account is smaller and we realize that in each market, rather than targeting just 100 or 200 big clients which obviously are very strategic for us, there is also huge potential in the top, where you're talking more about thousands of potential clients. So it's very different go-to-market because to address this segment you need to have a very different sales organization, very different processes with a lot of automation. There are many things that have to be done automatically or with self-serve interface from the client side and this requires specifically technology investment that we've been doing in the past 18 months. And now we have the platform in place we can high aggressively the sales team, the [inaudible] team and we have three big hubs, we are concentrating those teams; one in London for Europe, one in Boston for the U.S. which is now our biggest team in the U.S. is now at Boston office and one in Tokyo for APAC. And we're very excited about this market opportunity, transforming our several or thousands of clients to potentially a much bigger number in the future.

Great, thank you.

We will now take our next question from Douglas Anmuth from JPMorgan. Please go ahead.

Thanks for taking the question. Two things, I just wanted to focus on, I know you may have hit on a little bit just now but JB. can you provide some more color on the new engine and in particular what you think sort of a key enhancements are versus the previous technology? And also what makes up the 40% where the new engine is not rolled out yet? Is that based on specific geographies or type of clients or some other characterization? And then secondly on mobile, I may have missed it, but did you give the overall percentage of the business that is mobile now and also the percentage in Japan? And can you talk about the progress with AD-X and how you're doing in terms of moving into apps and when we can see that start to impact more? Thanks.

Sure. So, first to engine, so, we have a cost per click model so we're charging our clients per click and there is strong correlation with a click to rate and conversion rate. So as you improve the click-through you improve ultimately our revenue for our clients. Now ultimately to make the best possible performance for our clients you want to optimize on conversions. Conversion is a much harder problem than clicks because you have much less conversion than clicks so you need a much more complex predictive technology to predict conversation and per click and it took us probably two years of development to full year to have the full conversion optimizer into the model which is very important because it’s ultimately obviously what clients are looking for. They are not buying clicks for clicks, they're buying clicks because only those clicks are conversing into revenues. The reason why we are -- there is still so-called only 60% of our client that are with this conversation optimizer that it's requires some change in the technical settings of our clients and this is something we do client by client where we have also to expand this to each client that it's a different bidding strategy for them and we took to discuss with them about the – target. So, it's an ongoing process. As I said we have a very large client base. So it takes time. But this is something we’re pushing aggressively across all our geographies. So we are pushing this conversation optimizer obviously in the U.S. and also in Europe and APAC at the same time. And it's been a very strong contributor to the growth of this quarter and a big part of why we've been exceeding our guidance this second quarter. Moving to Mobile, it's…

Just to add Doug, Benoit, speaking with respect to I think you asked about two geographies, I think Japan we are about 28% in Japan I mean it’s also worth noting that the UK very high during the quarter pretty much at the same levels in Japan. So we see a very strong momentum there.

Yeah, UK is pretty amazing how quickly e-commerce is shifting to mobile devices.

So now we are not planning to continue reporting that metric because we believe that it becomes less and less relevant as JB was explaining this is now a continuum. But we are happy to share the momentum with you today.

Okay. Thanks JB and Benoit.

We will now take our next question from Ross Sandler from Deutsche Bank. Please go ahead. Ross Sandler – Deutsche Bank: Thanks guys. I just had one question for Benoit on the numbers and then one for JB on product. So on the APAC growth rate, so ex-FX it was very strong, decelerated a little bit in the quarter. Can you just give some additional color on what was driving the growth, deceleration in APAC? And did the increase of the Japan VAT have an impact on consumer purchases and potentially on your ecommerce business in that country? And then JB, the product question would be around social. Facebook is now saying that they control about 25% of mobile traffic out of the China. And from what we understand they are acquiring a PMD token to buy this mobile inventory and website customer audiences are somewhat unique to them. So how do you guys access that channel? Do you feel like you need to acquire PMD to have exposure in social? And how successful do you think mobile can become as a channel for Criteo if Facebook inventory isn’t available, thanks.

So with respect to Asia Pac we are very satisfied with the growth in Asia Pac. I mean we are 100%. Yes, it’s a small deceleration sequentially but it’s a very strong momentum. It’s true that the tax change in Japan at the very 1st of April had an impact, boosting retail during the last -- at the end of Q1 and that had some impact. So we’ve seen some softness at the beginning of the quarter in retail. But we see the momentum pretty much back now.

Yeah. It’s really one off event and I was in Japan, it’s JB, I was in Japan 10 days ago and all the times we were saying the two first week of April had been a very slow compared to end of March but by May and June it’s completely recover the normal trends yeah. So moving to Facebook, I mean Facebook is very successful partner of us and we are working very nicely with them and we have been working with them for long-term. Their mobile inventory, as you know, they have a specific technical set-up. As a matter of fact they also a very specific technical set up for desktop and took us a long time to build together with Facebook the right technical protocol. It was not only -- I mean not only Facebook had a specific way to connect to the inventory but Criteo has have also a specific requirements because we have a very unique to connect to our publishers because we have liability to target each individual person with a specific bidding request and specific real time customized add-up. So this is why and we have the some discussions with all our publishers, we need to have a specific step-up. With Facebook it’s probably a little more complex than the average publisher so it’s taking a longer time on average, it took us a longer time on the desktop that we are confident as they recognize we are a very strategic partner for them and we are one of the biggest buyer on the buyer Facebook exchange that we are making progress with them on how to this do on the mobile piece that but as we explained in the previous quarters it’s taking time, it’s not entirely in our control. There is technical road map on both sides where I think there is very good positive spirit on both sides to make it work and with the right way that both the Facebook constrain are taking into account and what is unique about the way Criteo is connecting to publishers is also into the picture. Ross Sandler – Deutsche Bank: Thanks guys. That’s very helpful and great quarter.

Thank you.

Thank you.

(Operator Instructions). We will now take our next question from Brian Fitzgerald from Jefferies. Please go ahead. Brian Fitzgerald - Jefferies & Co.: Thanks guys. Maybe a quick follow-up on Facebook. Did you see it -- you said it might take longer to implement the plug in to the mobile side of things. Do you see it ramping on the same trajectory once it’s plugged in as desktop or FBX and then can you differentiate between what you are seeing in terms of preferred inventory in the Americas versus maybe compared to Europe or some of your older cohorts? Thanks.

So I mean clearly once we connected we should see the same pattern on mobile then on desktop meaning that it’s not going to be overnight, it should increase because once we are connected on Facebook as it happened on desktop you have to reach for each line one-by-one and what’s more we have more than 6,000 plus clients. So it’s a good product to have but we have a very large, very long work to do with contact clients and when I look at the desktop piece we still have -- we don’t have -- we are not at 100% coverage we are above 80% but there is a lot of work to upgrade client by clients for the Facebook inventory bid. Obviously the reward is very big once you have done this and now it’s a very significant piece of our business. In term of GOs I mean our two area, our key area of focus are U.S. and Europe, in APAC as I’m you know Facebook has a lower penetration then you know the markets and we are in discussion with equivalent or Facebook in the local Asian market I have in mind in particular, Japan, China and Korea where you have very strong alterative to Facebook and an much more diversified landscape when it comes to social inventory. Brian Fitzgerald - Jefferies & Co.: And then quickly on the preferred inventory, do you see any real differentiation between the caliber of deferred inventory you are seeing in the Americas versus Europe or maybe versus some of your older publishers versus newer ones?

Well at the end of the day the quality inventory for us is highly related to the price. Generally speaking, in the U.S. the inventory costs more, it’s more expensive. And at the same time the conversion rate of clients for ecommerce is higher in the U.S. So there is a very good balance and it’s pretty normal in a very mature advanced market we would see much more sophisticated clients on one side, much more sophisticated publisher on the other side. So all numbers are higher. While in more, I would say emerging geographies you would see a lower cost of inventory for the same quality but also lower conversion rate on the client side. So there is a very good balance in each market, which is very much related to the maturity of the market when it comes to ecommerce and that sophistication in general. Brian Fitzgerald - Jefferies & Co.: Great. Thanks guys.

As there are no more questions in the queue that will conclude today’s Q&A session. And I would now like to the turn the call back to Mr. Edouard Lassalle.

Thank you very much everyone. And we look forward to continue to update in the coming quarters. Thank you.