Cardlytics(CDLX) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Highlights 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] - The company is also focused on strengthening its balance sheet and implementing a disciplined approach to cost management while investing in growth areas[3] 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 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] - Cardlytics Adjusted Contribution Per User (ACPU) decreased to $0.13 in Q1 2025, compared to $0.17 in Q1 2024[6] 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 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 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 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 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 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 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 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] - Adjusted Contribution is Revenue less Partner Share and other third-party costs, viewed by management as a key metric for financial performance[17] - Adjusted EBITDA excludes items like interest, depreciation, amortization, and stock-based compensation from Net Loss[17] - MQUs (Monthly Qualified Users) are defined as targetable customers who made a transaction with a partner in a given month[19] - ACPU (Adjusted Contribution Per User) is the platform's Adjusted Contribution divided by the average MQUs for the period[19] Reconciliation of GAAP Revenue to Billings 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 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 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 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 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 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 |