Leading digital advertising and financial technology company, Cardlytics (NASDAQ:CDLX), reported its fourth-quarter results after market closing yesterday. Although the company missed analysts’ EPS and revenue expectations by $0.03 and $0.35 million, respectively, its stock jumped over 37% post-market buoyed by optimistic guidance for Q1 2024.From bullish peaks to bearish strugglesCopy link to sectionFollowing a remarkable bull run between 2019 and 2020 that saw the stock reach highs above $160 in early 202 ...

Financial Data and Key Metrics - The company generated $453.4 million in billings in 2023, representing 2% growth YoY, and $309.2 million in revenue, up 4% YoY [41] - Adjusted EBITDA was positive for the first time since 2019 at $3.8 million, nearly $50 million better than in 2022 [41] - Q4 billings reached $131.9 million, a 5% increase YoY, driven by success in everyday spend and travel categories [42] - Q4 revenue was $89.2 million, up 8% YoY, partially due to a one-time revenue-related benefit of $2.2 million [42] - Adjusted contribution in Q4 increased 18% to $47.3 million, with a margin of 53% compared to 48% a year ago [43] - Free cash flow for the year improved by nearly $55 million compared to 2022, though Q4 free cash flow was negative $0.8 million [45] - Adjusted EBITDA exceeded guidance at positive $10 million in Q4, the largest in the company's history [22] Business Line Performance - The U.S. revenue increased 8% YoY, while the U.K. showed growth for the first time in several quarters at 4% [21] - The restaurant category turned slightly positive in Q4, with efforts to rebuild the sales team beginning to pay off [42] - Bridge, the company's retail media and data network, was profitable for the third consecutive quarter [22] - Bridge revenue grew 12% in Q4 due to an existing customer expanding its contract and a new large restaurant joining the platform [66] - The company signed a new large bank partner in the U.S., with promising discussions ongoing with additional banks in the U.S. and U.K. [9] Market Performance - The company re-signed Lloyds to a three-year contract and implemented an auto-enrollment program, which has allowed the sales team to sell and deliver larger budgets [21] - The company's new technology, ADE (Ads Decision Engine), has seen 80% of the network traffic now on AWS, with 40% on the latest version [11] - Banks on ADE have seen a 23% increase in redemption rates compared to a 9% increase across the whole network [11] - The company's Ripple platform has attracted leading retailers like Wegmans and Giant Eagle, with a national footprint of around 70 million profiles [62] Strategic Direction and Industry Competition - The company has made fundamental changes to its cost structure, including renegotiating partner contracts and rightsizing expenses [8] - The company is focusing on four key pillars to drive engagement: content and insights, customizable tools for merchants, easier offer discovery, and differentiated offerings for each bank [33][36][37][16] - The company is leveraging its tech and network size to create differentiated offerings such as featured offers, increased curations, and proximity offers [16] - The company is working towards a broader and deeper dataset, more sophisticated audience targeting, better analytics, and a variety of ad formats to drive increased engagement [18] Management Commentary on Operating Environment and Future Outlook - The company resolved the SRS dispute and rebalanced its cost structure, allowing it to focus on execution and growth [7][30] - The company expects 12% to 16% billings growth in Q1 2024, excluding entertainment, which was resolved in Q4 [30] - The company is confident in its long-term growth prospects, with a focus on driving consumer engagement, top-line growth, and adjusted EBITDA [47] - The company expects double-digit billings growth for 2024 and to be operating cash flow positive on an annual basis [47] Other Important Information - The company added a new non-GAAP metric, free cash flow, to its 10-K, which it believes is useful for measuring funds available to invest in the business [23] - The company ended Q4 with $91.8 million in cash and cash equivalents and $16.7 million of unused available borrowings under its line of credit [67] - The company amended its line of credit in February, allowing it to borrow up to 75% of its eligible accounts receivable, up from 50% previously [67] Q&A Session Summary Question: Timing and expenses related to the new FI partner - The company cannot provide specific timing details beyond what was referenced in the 8-K, but there are no major upfront expenses expected [50][75] Question: Upside to billings growth and drivers - The company is confident in its initiatives to re-accelerate revenue, with a focus on increased customer spend and engagement [52] Question: Progress on ADE adoption and challenges - 80% of the network is on ADE, with 20% not yet migrated due to larger tech changes required for some partners [82] Question: Multi-tier offers program rollout - The company is testing multi-tier offers with several clients and will update the market on the broader rollout when more data is available [86] Question: Return of larger marketers to the platform - The company has reinvested in its sales teams and introduced new product initiatives, which have helped bring back larger marketers [87] Question: Discovery and consumer activation improvements - The company is working with bank partners to improve offer placements and has seen a 5x higher activation rate for offers placed on line-item transactions in bank statements [84][90]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File Number: 001-38386 CARDLYTICS, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 26-3039436 (State or o ...

Shares of digital advertising company Cardlytics (CDLX 26.52%) skyrocketed on Monday after the company settled a lawsuit and reported preliminary financial results for the fourth quarter of 2023. As of 9:50 a.m. ET, Cardlytics stock was up about 34%. That said, it's still down 95% from its high set in 2021.Are things looking up for Cardlytics?Cardlytics works with financial institutions to manage their reward programs. It then takes this information to help marketers better target consumers. Even though the ...

ATLANTA, Jan. 02, 2024 (GLOBE NEWSWIRE) -- Cardlytics, Inc. (NASDAQ:CDLX), an advertising platform in banks' digital channels, is excited to announce the appointment of Andre Fernandez and Jon Francis to its Board of Directors. Additionally, John Balen and David Adams have retired from the Board effective as of January 1, 2024. In connection with these Board changes, Jack Klinck has assumed the role of Chairperson of the Board. "We are proud to welcome Andre and Jon to our Board of Directors. Andre's expert ...

Disclaimer | --- | --- | --- | --- | |-----------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | We power a native ad platform in our partners' digital | | | | | channels. | | | | $3.9T+ in Annual Spend(2) 1 in 2 U.S. Purchase Transactions(3) (2) Based on data from our partners during the three months ended September 30, 202 (3) Based on aggregated data of our current partners from the June 2022 Nielson Repor Adj. Contribution(1) 7 | --- | --- | --- | --- | -- ...

Cardlytics, Inc. (NASDAQ:CDLX) Q3 2023 Earnings Conference Call November 8, 2023 12:00 PM ET Company Participants Nick Lynton - Chief, Legal and Privacy Officer Karim Temsamani - CEO Alexis DeSieno - CFO Conference Call Participants Kyle Peterson - Needham Jason Kreyer - Craig-Hallum Operator Good day and thank you for standing by. Welcome to the Q3 2023 Cardlytics, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a ques ...

Table of Contents 4. GOODWILL AND ACQUIRED INTANGIBLES There have been no changes to the carrying amounts of goodwill since December 31, 2022. The carrying amounts of goodwill as of September 30, 2023 are as follows (in thousands): | --- | --- | --- | --- | --- | --- | --- | |---------------------------|----------------|--------------------|-------|------------------------------|-------|------------------------| | Gross goodwill | Cardlytics \n$ | Platform \n210,692 | \n$ | Bridg Platform \n538,271 | $ | Co ...

Financial Data and Key Metrics - Adjusted EBITDA improved by $11.7 million year-over-year in Q2, with operating cash flow positive at $5.7 million [5] - Billings increased 1.6% year-over-year to $109.4 million, with U.S. billings up 7% [6] - Revenue increased 1.7% year-over-year to $76.7 million, while adjusted contribution rose 6.8% to $37.5 million [6] - Bridg revenue decreased 3% year-over-year to $6 million, in line with expectations [6] - Adjusted EBITDA loss narrowed to $4.1 million in Q2 2023 from $15.8 million in Q2 2022 [14] - Cash and cash equivalents stood at $92.1 million at the end of Q2, down from $139.2 million at the end of Q1 2022 [35] - MAUs increased 4.6% year-over-year to 188.1 million, while ARPU remained flat at $0.38 [36] Business Line Performance - The company's focus on the Bridge Retail Media Network products is driving short-term viability, with billings up 1.6% year-over-year [6] - Enhanced targeting through ADE (Ad Decisioning Engine) led to a 10% increase in billings, 6.5% in activations, and 5.7% in redemptions [25] - Multi-tier offers, which provide variable incentives, shifted purchase channel behavior, increasing in-store channels from 34% to 71% of total spend in a 21-day pilot [25] - The company launched receipt-level reporting, which is expected to drive incremental demand from CPGs and retailers [11] Market Performance - U.S. revenue increased 7% year-over-year, while U.K. revenue decreased 35% due to the loss of a bank partner [59] - Consumer spend in multiline retail declined 1.3% year-over-year but increased 6.1% quarter-over-quarter to $67 billion [29] - Travel spend growth slowed to 1% year-over-year, while restaurant and retail spend grew 1% and declined 3%, respectively [55] - California accounted for 16% of multiline retail spend, followed by Texas at 11% and Florida at 9% [54] Strategic Initiatives and Industry Competition - The company is transitioning to a product-led organization, with a focus on new ad server, user experience, and cloud migration initiatives [24] - Chase is now 100% live on the new user experience, with other major U.S. banks expected to migrate by mid-2024 [9][24] - The company is diversifying its business, with retail media network pilots receiving positive feedback from major CPG brands [27] - The company is investing in new capabilities, such as target return on spending pricing pilots, which are expected to improve financial efficiency in the long term [12] Management Commentary on Operating Environment and Future Outlook - The near-term economy and advertising environment remain uncertain, but the company is focused on long-term success [13] - The company expects to achieve positive operating cash flow and adjusted EBITDA on an annual basis starting in 2024 [35] - Consumer confidence increased for the third consecutive month in July, reaching its highest level in two years, despite softening labor markets and declining inflation [31] - The company expects some variability in quarter-to-quarter results but remains committed to achieving consistent growth and profitability [34][56] Other Important Information - The company renegotiated contracts and implemented cost optimizations across AWS and Snowflake, improving efficiency [7] - The company is in discussions with multiple top 20 U.S. banks and fintechs, with confidence in signing at least one major partner by the end of 2023 [8] - The company launched its first campaign with receipt-level reporting, which is expected to drive incremental demand from CPGs and retailers [11] - The company paid $50.1 million in cash related to the Bridg earnout and had $7 million of unused available borrowings under its line of credit at the end of Q2 [60] Q&A Session Summary Question: How did ad budgets progress throughout the quarter across core verticals? - Consumer spending slowed overall, with retail spend down 3% and travel spend up slightly, impacting advertising budgets [39] - Despite consumer slowdown, some areas like travel and restaurants are showing positive trends for the company [40] Question: What are the expectations for ad budgets in the back half of the year? - The company expects some choppiness but sees positive signs from clients looking to drive additional spend in the back half of the year [41] Question: What new products or services are encouraging bank partners to renegotiate contracts? - The company is focused on providing tech and services that meet partner needs, such as receipt-level offers and target return on spending pricing pilots [43][44] Question: How are product improvements manifesting in the numbers? - Product improvements, such as UI changes and new product constructs, are driving engagement and activation, with early signs of impact in the numbers [45][46] Question: What assumptions are behind the EBITDA guidance for Q3? - The EBITDA guidance assumes continued discipline in expenses and cautious optimism about the advertising market, with potential for improvement as new products scale [70][74] Question: What has been the impact of Chase being fully rolled out on the new user experience? - Chase's full rollout has led to improved engagement, activations, and redemptions, signaling positive changes in the business [68][73]

| --- | --- | |-------------------------------------------|-------| | | | | | | | CARDLYTICS Q2 2023 Earnings Presentation | | | | | | August 1, 2023 | | Disclaimer This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding expectations about future financial performance or results of Cardlytics, Inc. ("Cardlytics," "we," "us," or "our), such as including becoming cash flow positive, earnings ...