Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Cardlytics (CDLX) Analysis - Cardlytics (CDLX) has shown a four-week price change of 10.7%, indicating strong recent price momentum and growing investor interest [4] - Over the past 12 weeks, CDLX has gained 32.9%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - CDLX has a beta of 1.21, suggesting it moves 21% more than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of B, suggesting it is an opportune time to invest in CDLX to capitalize on its momentum [6] - CDLX has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.36, indicating it is undervalued, as investors pay only 36 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides CDLX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Group 1 - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research framework identifies companies with durable business models, mispriced cash flow potential, and intelligent capital allocation, emphasizing a structured and repeatable approach [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model and capital structure, prioritizing comparability, simplicity, and relevance [1] Group 2 - Research coverage focuses on underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] - Moretus Research aims to elevate the standard for independent investment research by providing professional-grade insights and actionable valuation [1]

Group 1 - Cardlytics reported a quarterly loss of $0.21 per share, better than the Zacks Consensus Estimate of a loss of $0.27, and compared to a loss of $0.09 per share a year ago, indicating an earnings surprise of 22.22% [1] - The company posted revenues of $61.9 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.46%, although this represents a decline from year-ago revenues of $67.61 million [2] - Cardlytics shares have declined approximately 42.1% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] Group 2 - The earnings outlook for Cardlytics is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend for estimate revisions for Cardlytics is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $67.9 million, and -$0.58 on revenues of $274.9 million for the current fiscal year [7] Group 3 - The Technology Services industry, to which Cardlytics belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Another company in the same industry, Inspired Entertainment, is expected to report a quarterly loss of $0.14 per share, reflecting a significant year-over-year change of -600% [9]

Financial Data and Key Metrics Changes - In Q1 2025, total billings were $97.6 million, a 7.3% decrease year-over-year, but above guidance due to pipeline wins in the U.S. and improved delivery [28][27] - Revenue decreased 8.4% to $61.9 million, driven by lower top-line billings and a mix of advertisers [31][27] - Adjusted EBITDA was negative $4.4 million, a decline of $4.6 million year-over-year [31] - Free cash flow improved by $11.6 million from the prior year, reaching negative $10.8 million [31] Business Line Data and Key Metrics Changes - U.S. revenue excluding Bridge decreased 10.9% due to lower billings [30] - In the UK, revenue grew by 8.6%, driven by higher billings and increased supply [30] - Bridge revenue increased 1.6% due to new client wins with two major retailers [31] Market Data and Key Metrics Changes - Consumer incentives decreased by 5.1% to $35.7 million [31] - The travel category saw a decline due to budget cuts from key accounts, while everyday spend and specialty retail categories showed strength, with specialty retail growing by 52% [28][27] Company Strategy and Development Direction - The company is focused on "platformizing" its business to become a differentiated commerce media platform, enhancing its ecosystem and data capabilities [9][10] - The introduction of the Cardlytics Rewards platform (CRP) aims to expand partnerships beyond financial institutions, allowing any merchant with digital properties to become a publisher partner [12][13] - The company is investing in technology to ease integration processes for partners, aiming for quicker onboarding [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is macroeconomic uncertainty, consumer spending remains strong, particularly in everyday categories [5][6] - The company expects continued caution among advertisers, leading to delays in ad spending commitments [37] - For Q2 2025, the company anticipates billings between $100 million and $108 million, reflecting a year-over-year decrease of 9% to 2% [36] Other Important Information - The company introduced a new metric, monthly qualified users (MQUs), which increased by 12% to 214.9 million in Q1 [32][33] - Adjusted contribution per MQU (ACPU) was down 24% year-over-year, reflecting the monetization challenges with the new large FI partner [35] Q&A Session Summary Question: Can you elaborate on the opportunity presented by the non-FI side of the business? - Management highlighted that the Cardlytics Rewards platform allows for redefining partnerships and expanding the publisher ecosystem, with potential for strong growth [49][50] Question: How does consumer spending compare to last year? - Management indicated that consumer spending remains strong, particularly in everyday categories, with some signs of front-running purchases ahead of tariffs [56][58] Question: What are the economics for Cardlytics with new partners? - Management stated that the platform is moving towards engagement-based pricing, with positive economics expected for both Cardlytics and its publisher partners [62][63] Question: How is the company assessing its billing space amid macro uncertainty? - Management noted that certain categories, like restaurants and retail, tend to perform better in downturns, and they are working closely with advertisers to navigate the environment [72] Question: Can you provide details on the mechanics of the Cardlytics Rewards platform? - Management explained that the CRP expands publishing supply from banks to non-bank merchants, enhancing consumer engagement and value [74]

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company reported decreased Q1 2025 revenue of $61.9 million but an improved net loss of $(13.3) million [Condensed Consolidated Balance Sheets (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets decreased to $369.1 million and stockholders' equity declined to $64.1 million as of March 31, 2025 Condensed Consolidated Balance Sheets (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $156,829 | $177,983 | | **Total assets** | $369,073 | $392,711 | | **Total current liabilities** | $131,851 | $148,955 | | **Total liabilities** | $304,983 | $322,718 | | **Total stockholders' equity** | $64,090 | $69,993 | [Condensed Consolidated Statements of Operations (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) Q1 2025 revenue fell to $61.9 million, while the net loss improved to $(13.3) million from $(24.3) million YoY Statement of Operations Highlights (in thousands, except per share amounts) | | 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) | [Condensed Consolidated Statements of Comprehensive Loss (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20(Unaudited)) Total comprehensive loss for Q1 2025 improved to $(15.6) million, including a $(2.4) million foreign currency loss Comprehensive Loss (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net Loss** | $(13,282) | $(24,275) | | **Foreign currency translation adjustments** | $(2,355) | $580 | | **Total Comprehensive Loss** | $(15,637) | $(23,695) | [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) Stockholders' equity decreased by $5.9 million to $64.1 million in Q1 2025, driven by the quarterly net loss - Total stockholders' equity decreased by **$5.9 million** during Q1 2025, from $69,993 thousand to $64,090 thousand[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash used in operations improved to $(6.7) million, while cash and equivalents ended the quarter at $52.0 million Cash Flow Summary (in thousands) | | 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** | $(13,548) | $5,936 | | **Cash and cash equivalents — End of period** | $52,046 | $97,766 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Key disclosures include a gain from the Dosh app decommissioning and the non-renewal notice from Bank of America - The Dosh app was decommissioned on February 28, 2025, resulting in a **gain on disposal of $5.4 million** from the derecognition of the associated wallet liability[29](index=29&type=chunk) - On January 25, 2024, the company settled outstanding disputes related to the Bridg acquisition, agreeing to pay **$25.0 million in cash and issue 3.6 million shares** of common stock[33](index=33&type=chunk) - The top three FI partners accounted for **over 80% of total Partner Share** in Q1 2025; the company received a non-renewal notice from Bank of America, effective July 31, 2025[112](index=112&type=chunk)[113](index=113&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses an 8% revenue decline, an improved net loss, and sufficient liquidity despite key partner risks [Non-GAAP Measures and Other Performance Metrics](index=27&type=section&id=Non-GAAP%20Measures%20and%20Other%20Performance%20Metrics) Key non-GAAP metrics show a 7% decrease in Billings and a decline in Adjusted EBITDA to negative $(4.4) million Key Performance Metrics | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Cardlytics MQUs (in thousands) | 214,891 | 191,206 | 12% | | Cardlytics ACPU | $0.13 | $0.17 | (24)% | Key Financial Metrics (Non-GAAP, in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Billings | $97,579 | $105,216 | | Adjusted Contribution | $32,448 | $37,065 | | Adjusted EBITDA | $(4,384) | $226 | | Free Cash Flow | $(10,809) | $(22,364) | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Revenue decreased 8% YoY due to lower Billings, while operating loss improved due to reduced expenses and a one-time gain - Revenue decreased by **$5.7 million (8%) YoY**, primarily due to a $7.6 million decrease in Billings[157](index=157&type=chunk) - Stock-based compensation expense decreased by **$2.3 million (21%) YoY**, primarily due to higher forfeitures related to executive departures[164](index=164&type=chunk) - A **gain of $5.4 million** was realized in Q1 2025 from the decommissioning of the Dosh app[166](index=166&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 with $52.0 million in cash and believes its liquidity is sufficient for the next 12 months Liquidity Position (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $52,046 | $65,594 | | Working capital | $24,978 | $29,028 | | Unused available borrowings | $60,000 | $60,000 | - In April 2024, the company issued **$172.5 million of 4.25% Convertible Senior Notes due 2029** and used the proceeds to repurchase $183.9 million of its 2020 Convertible Senior Notes[180](index=180&type=chunk) - The company has a commitment to spend **$17.0 million each year for three years** with a cloud hosting provider, starting in January 2024[177](index=177&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations on its credit line and foreign currency exchange risk - Interest rate risk is tied to the variable-rate 2018 Line of Credit; a **10% increase in the prime rate** would result in a $0.5 million annual increase in interest expense if fully drawn[199](index=199&type=chunk) - Foreign currency risk arises from UK operations; a **10% weakening of the British pound** in Q1 2025 would have decreased revenue by $0.6 million and operating expenses by $1.3 million[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's principal officers concluded that disclosure controls and procedures were effective as of March 31, 2025 - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[201](index=201&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) A securities class action lawsuit was voluntarily dismissed without prejudice by the plaintiff in March 2025 - A securities class action lawsuit filed in January 2025 was **voluntarily dismissed by the plaintiff without prejudice** in March 2025, meaning similar claims could be refiled in the future[204](index=204&type=chunk)[205](index=205&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from FI partner dependency, economic conditions, debt, and data privacy regulations [Risks Related to our Business and Industry](index=43&type=section&id=Risks%20Related%20to%20our%20Business%20and%20Industry) Major risks include heavy reliance on a few FI partners, the non-renewal by Bank of America, and economic sensitivity - The company is **substantially dependent on Chase, Bank of America, and Wells Fargo**; in April 2025, it received a non-renewal notice from Bank of America for agreements expiring July 31, 2025[217](index=217&type=chunk)[218](index=218&type=chunk)[220](index=220&type=chunk) - **Unfavorable economic conditions**, such as inflation and tariffs, could limit business growth and negatively affect operating results by causing marketers to reduce spending[208](index=208&type=chunk) - The loss of one or more of its top five marketers, who accounted for **19% of revenue in Q1 2025**, could adversely impact the business as there are no material long-term commitments[241](index=241&type=chunk)[242](index=242&type=chunk) [Risks Related to our Indebtedness](index=57&type=section&id=Risks%20Related%20to%20our%20Indebtedness) The company's ability to service its significant debt obligations, including its convertible notes, is a key risk - Servicing debt requires significant cash, and the company **may not have sufficient cash flow** from its business to pay its indebtedness, including the 2020 and 2024 Convertible Senior Notes[285](index=285&type=chunk) - Holders of the Notes can require the company to repurchase them upon a 'fundamental change,' and the company **may not have enough available cash** or be able to obtain financing to do so[287](index=287&type=chunk) [Risks Related to Regulatory and Intellectual Property Matters](index=59&type=section&id=Risks%20Related%20to%20Regulatory%20and%20Intellectual%20Property%20Matters) The business is subject to complex data privacy laws like CCPA and GDPR and risks related to protecting its IP - The company is subject to complex and evolving data privacy laws like the CCPA and GDPR; non-compliance could lead to **significant fines (up to 4% of annual global revenue under GDPR)**[293](index=293&type=chunk)[297](index=297&type=chunk)[300](index=300&type=chunk) - **Failure to protect proprietary technology** and intellectual property rights could harm the business, as legal protections provide only limited coverage[308](index=308&type=chunk) [Risks Related to Ownership of our Common Stock](index=64&type=section&id=Risks%20Related%20to%20Ownership%20of%20our%20Common%20Stock) The company's common stock price is highly volatile, and no dividends are expected in the foreseeable future - The market price of the common stock has been **highly volatile**, with an intraday price range from $1.22 to $161.47 since its IPO in February 2018[320](index=320&type=chunk) - The company **does not intend to pay dividends** in the foreseeable future, so returns on investment depend solely on stock price appreciation[322](index=322&type=chunk) - **Anti-takeover provisions** in the company's charter and under Delaware law may delay or prevent a change in control or changes in management[323](index=323&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales or issuer repurchases of equity securities occurred during the quarter ended March 31, 2025 - There were **no unregistered sales of equity securities or issuer repurchases** during the quarter[337](index=337&type=chunk)[338](index=338&type=chunk) [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) There was no information to be reported under this item for the quarter - None[339](index=339&type=chunk) [Item 6. Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including agreement amendments and officer certifications - The exhibits filed with the report include amendments to the Loan and Security Agreement, officer certifications required by the Sarbanes-Oxley Act, and XBRL data[341](index=341&type=chunk)

[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].

Core Viewpoint - A class action securities lawsuit has been filed against Cardlytics, Inc. for alleged securities fraud affecting investors between March 14, 2024, and August 7, 2024 [1] Group 1: Lawsuit Details - The lawsuit claims that Cardlytics made false statements regarding consumer engagement and its ability to increase billings, leading to a significant risk of revenue growth slowing or declining [2] - It is alleged that changes to the Ads Decision Engine resulted in "under-delivery" of budgets and customer billing estimates, making the company's positive statements materially misleading [2] Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until March 25, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require serving as lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the United States [4]