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]

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]