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** |

Priority Technology (PRTH) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.18, delivering a surprise of 200%.Over the last four quarters, the company has s ...

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]