Criteo SA (NASDAQ: CRTO) announced its expected impact of Apple Inc. (NASDAQ: AAPL) Intelligent Tracking Prevention (ITP), as well as reiterating its fourth quarter guidance. Criteo shares plunged over 27 percent on Thursday, reaching a new all time low of $22.00.
Earlier in the month, Apple launched a new software update, iOS 11.2, which disabled the solution that some companies in the advertising industry use to target Safari users.
As a result, Criteo expects a net impact decrease of 9 percent to 13 percent ex-TAC revenue for the fourth quarter and a 22 percent ex-TAC revenue decrease for the 2018 fiscal year. Now, due to the Apple software update, Criteo now says that the projections previously provided is no longer valid.
In the third quarter, Criteo expected revenue ex-TAC to be between $260 million and $263 million and an adjusted EBITDA to be between $106 million and $109 million for the fourth quarter.
Although Apple’s update severely impacts Criteo, the company is now looking into developing a new alternative long term solution to meet the interests of both Apple users, publishers, and advertisers.
Criteo will provide its 2018 fiscal year guidance in mid-February 2018 when it reports it fourth quarter financial results.