Cardlytics Announces Partial Drawdown of Line of Credit in Response to Uncertainty in the Financial Sector
On March 14, 2023, Cardlytics (NASDAQ: CDLX) announced borrowing $30 million from its $60 million line of credit with Pacific Western Bank. CEO Karim Temsamani emphasized this move as a proactive measure amid financial sector uncertainties. The company is also implementing a multi-bank deposit program to reduce dependence on single institutions and maximize FDIC insurance coverage. Cardlytics aims for liquidity and long-term profitability, while its advertising platform continues to enhance customer loyalty for financial partners. Further details can be found in its latest Annual Report.
- Borrowed $30 million from a $60 million line of credit, strengthening liquidity.
- Proactive financial strategy to mitigate risks amid market uncertainty.
- Multi-bank deposit program enhances security and insurance of funds.
- None.
ATLANTA, March 14, 2023 (GLOBE NEWSWIRE) -- Cardlytics (NASDAQ: CDLX), an advertising platform in banks’ digital channels, announced today that the company borrowed
“While we are confident in meeting our liquidity and profitability goals, proactively drawing down on our line of credit is prudent given recent uncertainty in the financial sector,” said Karim Temsamani, Chief Executive Officer. “Additionally, we are utilizing a multi-bank deposit program that allows us to minimize our exposure to any single financial institution and maximize our FDIC insurance. Our strategy remains unchanged, and these are just two of the many ways we are positioning the company for long-term growth and profitability.”
For additional information on the terms and conditions of the line of credit with Pacific Western Bank, see Cardlytics’ Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 1, 2023.
About Cardlytics
Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Palo Alto, New York, Los Angeles, and London. Learn more at www.cardlytics.com.
Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our ability to achieve liquidity, long-term growth and profitability. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control.
Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: risks related to unfavorable conditions in the global economy and the industries that we serve; our quarterly operating results have fluctuated and may continue to vary from period to period; our ability to sustain our revenue growth and billings; risks related to the integration of Dosh, Bridg and Entertainment with our company; potential payments under the Merger Agreement with Bridg; risks related to our substantial dependence on our Cardlytics platform; risks related to our substantial dependence on JPMorgan Chase Bank, National Association (“Chase”), Bank of America, National Association ("Bank of America"), Wells Fargo Bank, National Association (“Wells Fargo”) and a limited number of other financial institution (“FI”) partners; risks related to our ability to maintain relationships with Chase, Wells Fargo and Bank of America; the amount and timing of budgets by marketers, which are affected by budget cycles, economic conditions and other factors, including the impact of the COVID-19 pandemic; our ability to generate sufficient revenue to offset contractual commitments to FIs; our ability to attract new partners, including FI partners, and maintain relationships with bank processors and digital banking providers; our ability to maintain relationships with marketers; our ability to adapt to changing market conditions, including our ability to adapt to changes in consumer habits, negotiate fee arrangements with new and existing partners and retailers, and develop and launch new services and features; and other risks detailed in the “Risk Factors” section of our Form 10-K filed with the Securities and Exchange Commission on March 1, 2023 and in subsequent periodic reports that we file with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results.
The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Contacts:
Public Relations:
Robert Robinson
pr@cardlytics.com
Investor Relations:
Robert Robinson
ir@cardlytics.com
FAQ
What is the significance of Cardlytics borrowing $30 million?
How does Cardlytics' multi-bank deposit program work?
What are Cardlytics' financial goals?
What is Cardlytics' strategy in the current financial climate?
