[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) Cardlytics reported Q1 2025 revenue of $61.9 million and billings of $97.6 million, both down, while significantly narrowing net loss and improving free cash flow - Management highlighted progress in 'platformizing' Cardlytics to become a leading commerce media platform, supported by an expanding ecosystem and tech investments[3](index=3&type=chunk) - The company is also focused on strengthening its balance sheet and implementing a disciplined approach to cost management while investing in growth areas[3](index=3&type=chunk) Q1 2025 Key Financial Metrics (YoY Comparison, in millions) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $61.9 | $67.6 | -8% | | Billings (Non-GAAP) | $97.6 | $105.2 | -7% | | Adjusted Contribution (Non-GAAP) | $32.4 | $37.1 | -12% | | Net Loss | $(13.3) | $(24.3) | 45% improvement | | Adjusted EBITDA (Non-GAAP) | $(4.4) | $0.2 | N/A | | Net Loss per Diluted Share | $(0.26) | $(0.56) | 54% improvement | | Free Cash Flow (Non-GAAP) | $(10.8) | $(22.4) | 52% improvement | [Key Operating Metrics](index=1&type=section&id=Key%20Metrics) For Q1 2025, Cardlytics saw a 12% year-over-year increase in Monthly Qualified Users (MQUs) to 214.9 million, though monetization per user (ACPU) declined to $0.13 - Cardlytics Monthly Qualified Users (MQUs) increased by **12% year-over-year** to **214.9 million**[6](index=6&type=chunk) - Cardlytics Adjusted Contribution Per User (ACPU) decreased to **$0.13** in Q1 2025, compared to **$0.17** in Q1 2024[6](index=6&type=chunk) Historical Monthly Qualified Users (MQUs) (in thousands) | Period | MQUs | | :--- | :--- | | Mar 31, 2023 | 181,720 | | Jun 30, 2023 | 186,225 | | Sep 30, 2023 | 189,126 | | Dec 31, 2023 | 191,865 | | Mar 31, 2024 | 191,206 | | Jun 30, 2024 | 188,816 | | Sep 30, 2024 | 190,233 | | Dec 31, 2024 | 191,674 | Historical Adjusted Contribution Per User (ACPU) | Period | ACPU | | :--- | :--- | | Mar 31, 2023 | $0.17 | | Jun 30, 2023 | $0.14 | | Sep 30, 2023 | $0.20 | | Dec 31, 2023 | $0.21 | | Mar 31, 2024 | $0.17 | | Jun 30, 2024 | $0.16 | | Sep 30, 2024 | $0.16 | | Dec 31, 2024 | $0.18 | [Second Quarter 2025 Financial Expectations](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Expectations) Cardlytics projects continued year-over-year declines for the second quarter of 2025, with Billings expected between $100.0 million and $108.0 million and Revenue between $61.0 million and $67.0 million Q2 2025 Guidance (in millions) | Metric | Q2 2025 Guidance | YoY Change | | :--- | :--- | :--- | | Billings | $100.0 - $108.0 | (9%) - (2%) | | Revenue | $61.0 - $67.0 | (12%) - (4%) | | Adjusted Contribution | $32.5 - $36.5 | (11%) - 0% | | Adjusted EBITDA | ($4.0) - $1.0 | ($1.7) - $3.3 | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the period ended March 31, 2025, including the Balance Sheets, Statements of Operations, and Statements of Cash Flows, providing a detailed view of the company's financial position and performance [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS%20%28UNAUDITED%29) This section details Cardlytics' financial position, presenting assets, liabilities, and equity as of March 31, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $52,046 | $65,594 | | Total current assets | $156,829 | $177,983 | | Total assets | $369,073 | $392,711 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $131,851 | $148,955 | | Total liabilities | $304,983 | $322,718 | | Total stockholders' equity | $64,090 | $69,993 | | Total liabilities and stockholders' equity | $369,073 | $392,711 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20%28UNAUDITED%29) This section outlines Cardlytics' financial performance for Q1 2025, detailing revenue, expenses, and net loss Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $61,898 | $67,608 | | Total costs and expenses | $75,977 | $90,434 | | Operating Loss | $(14,079) | $(22,826) | | Net Loss | $(13,282) | $(24,275) | | Net Loss per share, basic and diluted | $(0.26) | $(0.56) | | Weighted-average common shares outstanding | 51,863 | 43,248 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20%28UNAUDITED%29) This section details Cardlytics' cash flows from operating, investing, and financing activities for Q1 2025 Condensed Consolidated Statements of Cash Flows (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(6,706) | $(17,617) | | Net cash used in investing activities | $(3,903) | $(4,747) | | Net cash (used in) provided by financing activities | $(3,034) | $28,321 | | Net (decrease) increase in cash and cash equivalents | $(13,548) | $5,936 | | Cash and cash equivalents — End of period | $52,046 | $97,766 | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines the non-GAAP metrics used by Cardlytics, such as Billings, Adjusted Contribution, and Adjusted EBITDA, to supplement GAAP results, and provides detailed reconciliations to their most directly comparable GAAP counterparts [Definitions of Non-GAAP Measures and Other Performance Metrics](index=3&type=section&id=Non-GAAP%20Measures%20and%20Other%20Performance%20Metrics) This section defines Cardlytics' key non-GAAP financial measures and operational metrics, including Billings, Adjusted Contribution, and MQUs - Billings represents the gross amount billed to customers for services[17](index=17&type=chunk) - Adjusted Contribution is Revenue less Partner Share and other third-party costs, viewed by management as a key metric for financial performance[17](index=17&type=chunk) - Adjusted EBITDA excludes items like interest, depreciation, amortization, and stock-based compensation from Net Loss[17](index=17&type=chunk) - MQUs (Monthly Qualified Users) are defined as targetable customers who made a transaction with a partner in a given month[19](index=19&type=chunk) - ACPU (Adjusted Contribution Per User) is the platform's Adjusted Contribution divided by the average MQUs for the period[19](index=19&type=chunk) [Reconciliation of GAAP Revenue to Billings](index=8&type=section&id=RECONCILIATION%20OF%20GAAP%20REVENUE%20TO%20BILLINGS%20%28UNAUDITED%29) This section reconciles Cardlytics' GAAP revenue to its non-GAAP billings for the three months ended March 31, 2025 and 2024 Reconciliation of Revenue to Billings (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $61,898 | $67,608 | | Plus: Consumer Incentives | $35,681 | $37,608 | | **Billings** | **$97,579** | **$105,216** | [Reconciliation of GAAP Gross Profit to Adjusted Contribution](index=8&type=section&id=RECONCILIATION%20OF%20GAAP%20GROSS%20PROFIT%20TO%20ADJUSTED%20CONTRIBUTION%20%28UNAUDITED%29) This section reconciles Cardlytics' GAAP gross profit to its non-GAAP adjusted contribution for Q1 2025 and Q1 2024 Reconciliation of Gross Profit to Adjusted Contribution (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Gross Profit | $25,160 | $30,892 | | Plus: Delivery costs | $7,288 | $6,173 | | **Adjusted Contribution** | **$32,448** | **$37,065** | [Reconciliation of GAAP Net Loss to Adjusted EBITDA](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20LOSS%20TO%20ADJUSTED%20EBITDA%20%28UNAUDITED%29) This section reconciles Cardlytics' GAAP net loss to its non-GAAP adjusted EBITDA for Q1 2025 and Q1 2024 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Loss | $(13,282) | $(24,275) | | Plus: Interest expense, net | $1,830 | $819 | | Plus: Depreciation and amortization | $6,291 | $6,250 | | Plus: Stock-based compensation expense | $8,694 | $10,985 | | Plus: Other adjustments | $(7,917) | $6,447 | | **Adjusted EBITDA** | **$(4,384)** | **$226** | [Reconciliation of GAAP Net Loss to Adjusted Net Loss](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20LOSS%20TO%20ADJUSTED%20NET%20LOSS%20AND%20ADJUSTED%20NET%20LOSS%20PER%20SHARE%20%28UNAUDITED%29) This section reconciles Cardlytics' GAAP net loss to its non-GAAP adjusted net loss and per share amounts for Q1 2025 and Q1 2024 Reconciliation of Net Loss to Adjusted Net Loss (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Loss | $(13,282) | $(24,275) | | Plus: Stock-based compensation expense | $8,694 | $10,985 | | Plus: Other adjustments | $(6,468) | $9,236 | | **Adjusted Net Loss** | **$(11,050)** | **$(4,054)** | [Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow](index=10&type=section&id=RECONCILIATION%20OF%20NET%20CASH%20USED%20IN%20OPERATING%20ACTIVITIES%20TO%20FREE%20CASH%20FLOW%20%28UNAUDITED%29) This section reconciles Cardlytics' net cash used in operating activities to its non-GAAP free cash flow for Q1 2025 and Q1 2024 Reconciliation to Free Cash Flow (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(6,706) | $(17,617) | | Plus: Acquisition of property and equipment | $(119) | $(651) | | Plus: Capitalized software development costs | $(3,984) | $(4,096) | | **Free Cash Flow** | **$(10,809)** | **$(22,364)** | [Reconciliation of Forecasted GAAP Revenue to Billings](index=10&type=section&id=RECONCILIATION%20OF%20FORECASTED%20GAAP%20REVENUE%20TO%20BILLINGS%20%28UNAUDITED%29) This section reconciles Cardlytics' forecasted GAAP revenue to its non-GAAP billings for Q2 2025 guidance Q2 2025 Forecasted Reconciliation (in millions) | Account | Q2 2025 | | :--- | :--- | | Revenue | $61.0 - $67.0 | | Plus: Consumer Incentives | $33.0 - $47.0 | | **Billings** | **$100.0 - $108.0** |

NEW YORK, March 21, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Cardlytics, Inc. ("Cardlytics" or the "Company") (NASDAQ: CDLX) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Cardlytics investors who were adversely affected by alleged securities fraud between March 14, 2024 and August 7, 2024. Follow the link below to get more information and be contacted by a member of our team:https://zlk.com/pslra-1/cardlytics-lawsuit-submissio ...

Group 1: ESSA Pharma Inc. (NASDAQ:EPIX) - The class period for the lawsuit is from December 12, 2023, to October 31, 2024, with a lead plaintiff deadline of March 25, 2025 [2] - The complaint alleges that defendants made materially false and misleading statements regarding the efficacy of masofaniten in combination with enzalutamide for treating prostate cancer [2] - Key allegations include that the combination treatment had no clear efficacy benefit over enzalutamide alone and that the M-E Combination Study was unlikely to meet its primary endpoint [2] Group 2: Cardlytics, Inc. (NASDAQ:CDLX) - The class period for the lawsuit is from March 14, 2024, to August 7, 2024, with a lead plaintiff deadline of March 25, 2025 [3] - The lawsuit claims that defendants made false statements regarding the company's ability to increase billings in line with rising consumer engagement [3] - Allegations include that changes to Cardlytics' Ads Decision Engine led to "underdelivery" of budgets and customer billing estimates, resulting in misleading positive statements about the company's prospects [3] Group 3: Novo Nordisk A/S (NYSE:NVO) - The class period for the lawsuit is from November 2, 2022, to December 19, 2024, with a lead plaintiff deadline of March 25, 2025 [4] - The complaint alleges that defendants created a false impression of reliable information regarding the success of the phase 3 CagriSema study on obesity [4] - Key points include that the optimistic claims about achieving at least 25% weight loss were misleading and that the study's flexible protocol limited its ability to provide effective weight loss data [4] Group 4: Crocs, Inc. (NASDAQ:CROX) - The class period for the lawsuit is from November 3, 2022, to October 28, 2024, with a lead plaintiff deadline of March 24, 2025 [6] - The lawsuit alleges that defendants misrepresented the revenue growth of HEYDUDE, claiming it was driven by management's decision to stock wholesalers aggressively, regardless of retail demand [6]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Cardlytics, Inc. regarding a class action lawsuit due to alleged misleading statements and omissions during a specified class period [1][2]. Group 1: Class Action Details - The class period for the lawsuit is from March 14, 2024, to August 7, 2024 [2]. - Allegations include that the company failed to disclose that increased consumer engagement led to higher consumer incentives, and that it could not increase billings in line with this engagement [2]. - There is a significant risk that revenue growth would slow or decline due to these factors, and the changes to the Ads Decision Engine resulted in "under-delivery" of budgets and customer billing estimates [2]. Group 2: Shareholder Actions - Shareholders are encouraged to register for the class action by March 25, 2025, to potentially be appointed as lead plaintiff [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's status [3]. - Participation in the case incurs no cost or obligation for shareholders [3]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit and fraud [4]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [4].

NEW YORK, March 18, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Cardlytics, Inc. ("Cardlytics" or the "Company") (NASDAQ: CDLX) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Cardlytics investors who were adversely affected by alleged securities fraud between March 14, 2024 and August 7, 2024. Follow the link below to get more information and be contacted by a member of our team:https://zlk.com/pslra-1/cardlytics-lawsuit-submissio ...

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Cardlytics, Inc. regarding a class action lawsuit due to alleged misleading statements and omissions during a specified class period [1]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from March 14, 2024, to August 7, 2024 [3]. - Allegations include that the defendants made materially false and misleading statements, failed to disclose that: - Increasing consumer engagement resulted in higher consumer incentives [3]. - The company could not increase its billings in line with the increased consumer engagement [3]. - There was a significant risk of slowing or declining revenue growth [3]. - Changes to the Ads Decision Engine caused "under-delivery" of budgets and customer billing estimates [3]. - Positive statements about the company's business and prospects were materially misleading and lacked a reasonable basis [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by March 25, 2025, to potentially become lead plaintiffs [4]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case [4]. Law Firm's Mission - The Gross Law Firm aims to protect investors' rights against deceit, fraud, and illegal business practices [5]. - The firm is committed to ensuring companies engage in responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [5].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Cardlytics, Inc. regarding a class action lawsuit due to alleged misleading statements and omissions during a specified class period [1][2]. Group 1: Class Action Details - The class period for the lawsuit is from March 14, 2024, to August 7, 2024 [2]. - Allegations include that the company failed to disclose that increased consumer engagement led to higher consumer incentives, and that it could not increase billings in line with this engagement [2]. - There is a significant risk that revenue growth would slow or decline due to these factors, and the changes to the Ads Decision Engine resulted in "under-delivery" of budgets and billing estimates [2]. Group 2: Shareholder Actions - Shareholders are encouraged to register for the class action by March 25, 2025, to potentially be appointed as lead plaintiff [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's progress [3]. Group 3: Law Firm's Mission - The Gross Law Firm aims to protect investors' rights against deceit and fraud, ensuring companies adhere to responsible business practices [4]. - The firm seeks recovery for investors who suffered losses due to misleading statements or omissions that inflated the company's stock price [4].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Cardlytics, Inc. due to alleged violations of federal securities laws, encouraging affected investors to seek legal recourse [2][4]. Group 1: Legal Investigation and Class Action - The law firm is reminding investors of the March 25, 2025 deadline to seek the role of lead plaintiff in a federal securities class action against Cardlytics [2]. - The complaint alleges that Cardlytics and its executives made false or misleading statements regarding consumer engagement and revenue growth, which misled investors [4]. - The firm is also encouraging anyone with information regarding Cardlytics' conduct to come forward, including whistleblowers and former employees [8]. Group 2: Financial Performance and Stock Impact - Cardlytics reported an 8% year-over-year revenue increase for Q1 2024, but this was overshadowed by a 20.2% increase in consumer incentives, leading to a stock price drop of $5.33, or 36.5%, to $9.27 per share [5]. - In Q2 2024, Cardlytics experienced a 9% year-over-year revenue decrease to $69.6 million, with a 3% decline in adjusted contribution to $36.4 million, resulting in a stock price fall of $3.94, or 57.1%, to $2.96 per share [6].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Cardlytics, Inc. due to alleged violations of federal securities laws, encouraging affected investors to come forward [2][4]. Group 1: Legal Investigation and Claims - The law firm is urging investors who suffered losses exceeding $50,000 in Cardlytics between March 14, 2024, and August 7, 2024, to discuss their legal rights [1]. - A federal securities class action has been filed against Cardlytics, with a deadline of March 25, 2025, for investors to seek the role of lead plaintiff [2][7]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [3]. Group 2: Allegations Against Cardlytics - The complaint alleges that Cardlytics and its executives made false or misleading statements and failed to disclose critical information regarding consumer engagement and revenue growth [4]. - Specific allegations include the inability to increase billings in line with consumer engagement and the risk of slowing or declining revenue growth [4]. Group 3: Financial Performance and Stock Impact - On May 8, 2024, Cardlytics reported an 8% year-over-year revenue increase, which was overshadowed by a 20.2% rise in consumer incentives, leading to a stock price drop of $5.33 (36.5%) to $9.27 per share [5]. - Following the release of second quarter 2024 results on August 7, 2024, which showed a 9% year-over-year revenue decrease to $69.6 million, the stock price fell by $3.94 (57.1%) to $2.96 per share [6].

Financial Data and Key Metrics Changes - In full year 2024, total billings decreased by 0.7% year over year, while annual adjusted EBITDA was $2.5 million positive for the second time on a full year basis [20] - In Q4, total billings were $116.3 million, an 11.2% decrease year over year, but exceeded guidance due to improvements in delivery and pipeline wins [21][22] - Revenue decreased by 16% to $74 million in Q4, with U.S. revenue down 19.9% due to lower billings and higher redemptions [24][25] Business Line Data and Key Metrics Changes - The UK business saw a 27.2% revenue growth in Q4, marking the fourth consecutive quarter of double-digit growth [24] - Bridge revenue declined by 12.7% compared to the prior year due to the loss of key accounts [24] - Adjusted contribution was $40.7 million, down 12%, but the adjusted contribution margin improved by 2.5 points due to a more favorable partner mix [25] Market Data and Key Metrics Changes - MAUs were 167.3 million for Q4, a decrease of 0.4%, primarily driven by winding down DASH and a smaller FI partner [26] - ARPU was $0.44, down 16.7% as a result of increased consumer incentives [26] - The company expects Q1 to represent the trough in performance, with billings guidance indicating a negative growth of 10% to 13% [27][29] Company Strategy and Development Direction - The company is focused on a turnaround plan to return to growth, divesting non-core businesses and investing in partnerships and data engineering capabilities [7][8] - A new office in Taiwan is being established to leverage local talent aligned with growth priorities [8] - The company aims to strengthen its competitive position by enhancing its commerce media platform and expanding its network [6][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged executional challenges in 2024 but expressed confidence in the company's unique value proposition and the potential for growth in 2025 [20][19] - The company anticipates a transformative year in 2025, focusing on product and tech stack innovation, expanding its network, and improving execution [19][32] - Management noted a consumer pullback in discretionary spending but highlighted strength in everyday spend categories [60] Other Important Information - The company ended Q4 with $65.6 million in cash and cash equivalents, providing over $100 million in liquidity [26] - Operating cash flow was positive at $3 million, while free cash flow was negative $1.5 million, showing sequential improvement [25] - The company is committed to maintaining cost discipline while making strategic investments in key areas [31] Q&A Session Summary Question: Delivery performance improvements - Management confirmed sequential improvements in delivery, with campaigns now hitting ROAS goals and under delivery continuing to improve [36][37] Question: Significance of new NeoBank partnership - Management emphasized the importance of every partner, noting that the new neobank will add diverse demographic segments and is expected to be fully ramped up shortly [40][42] Question: Future operating expenses outlook - Management expects operating expenses to remain below $40 million for the rest of the year, normalizing from Q4 levels due to reduced incentive compensation [44][45] Question: Stability of consumer incentives - Management indicated that consumer incentives should remain stable in the low 60% range as engagement improves [50][52] Question: Impact of Dosh on profitability - Management clarified that Dosh's closure would not have a significant impact on profitability, allowing the team to refocus on more critical initiatives [53][55] Question: Advertiser mentality amidst economic uncertainties - Management noted a consumer pullback in discretionary spending but highlighted the strength of everyday spend categories and the diversified advertiser base [60][62] Question: Potential of micro-targeting solutions - Management expressed optimism about the unique capability of combining datasets to unlock new CPG budgets and provide more value to consumers [63][64] Question: Contribution of new large U.S. FI partner - Management stated that the new partner would not significantly contribute to Q1 numbers but is expected to ramp throughout the year [67][68] Question: Drivers of pipeline strength - Management highlighted improvements in delivery and supply as key drivers of pipeline strength, with a focus on expanding partnerships beyond financial institutions [69][70]