Cardlytics(US:CDLX)2025-11-05 21:19Financial Performance - Cardlytics reported a revenue of $52.031 million for the three months ended September 30, 2025, a decrease of 22.4% compared to $67.057 million for the same period in 2024[133]. - The total billings for Cardlytics were $89.193 million for the three months ended September 30, 2025, a decline of 20.4% from $111.958 million in the prior year[133]. - Revenue for the three months ended September 30, 2025, was $52.0 million, down from $67.1 million in 2024, representing a decrease of $15.0 million (22.3%)[146]. - Revenue for the nine months ended September 30, 2025, was $177.178 million, down $27.123 million (13%) from $204.301 million in the same period of 2024[169]. - The Cardlytics platform generated revenue of $46.9 million for the three months ended September 30, 2025, down from $61.1 million in 2024[146]. User Metrics - The number of Cardlytics Monthly Qualified Users (MQUs) increased by 40.1 million, reaching 230.329 million for the three months ended September 30, 2025, representing a 21% growth year-over-year[130]. Losses and Adjusted Metrics - The net loss for Cardlytics was $72.673 million for the three months ended September 30, 2025, compared to a net loss of $145.182 million for the same period in 2024[133]. - Adjusted EBITDA for Cardlytics was $3.204 million for the three months ended September 30, 2025, compared to an adjusted EBITDA loss of $1.816 million in the same period of 2024[133]. - Adjusted Net Loss for the three months ended September 30, 2025, was $(3.8) million, compared to $(7.5) million in the same period of 2024[149]. Cost Management - The company plans to reduce its workforce by approximately 90 full-time employees, representing about 24% of its workforce, as part of a broader cost-reduction initiative[151]. - The estimated non-recurring charges related to the workforce reduction are approximately $2.3 million, expected to be incurred primarily in Q4 2025[152]. - Sales and marketing expense for the three months ended September 30, 2025, decreased by $5.298 million (40%) to $7.865 million compared to $13.163 million in 2024[175]. - General and administrative expense decreased by $1.2 million during the three months ended September 30, 2025, compared to the same period in 2024, with a 10% decrease in total G&A expense[179]. Impairments and Charges - The company recorded an impairment of goodwill and intangible assets of $58.843 million for the three months ended September 30, 2025, consistent with the same amount in 2024[167]. - The company recognized a $58.8 million impairment to goodwill and intangible assets during the three months ended September 30, 2025, compared to a $131.6 million impairment in the same period in 2024[190]. Cash Flow and Financing - Free Cash Flow for Cardlytics was negative $2.703 million for the three months ended September 30, 2025, an improvement from negative $3.869 million in the same period of 2024[133]. - As of September 30, 2025, the company had cash and cash equivalents of $43.96 million, down from $65.59 million at the end of 2024, and working capital decreased to $17.01 million from $29.03 million[198]. - The company issued $172.5 million principal amount of 4.25% Convertible Senior Notes due in 2029, with net proceeds of $166.8 million used to repurchase a portion of the 2020 Convertible Senior Notes[209]. Market and Operational Outlook - The company expects Billings to decrease in the near term due to restrictions from its largest FI partner affecting marketing budgets for select advertisers[145]. - Future capital requirements will depend on growth rate, R&D spending, M&A efforts, and market acceptance of solutions, with expectations of additional operating losses in the near term[203].