Cardlytics Announces Second Quarter 2022 Financial Results

Rhea-AI Summary

Cardlytics, Inc. (NASDAQ: CDLX) reported Q2 2022 financial results with revenue of $75.4 million, a 28% increase year-over-year. Billings rose 26% to $107.7 million, while gross profit grew 16% to $27.0 million. The company posted a net loss of $(126.3) million, up from $(47.3) million in Q2 2021. Adjusted EBITDA loss widened to $(15.8) million. The acquisition of Bridg is progressing, expected to enhance growth. Cardlytics anticipates a 10-15% revenue increase in H2 2022 despite economic pressures.

Positive

• Revenue increased by 28% year-over-year to $75.4 million.
• Billings rose by 26% year-over-year to $107.7 million.
• Gross profit grew by 16% to $27.0 million.
• MAUs increased by 7% to 179.9 million.
• ARPU improved by 12% to $0.38.

Negative

• Net loss increased to $(126.3) million from $(47.3) million YoY.
• Adjusted EBITDA loss widened to $(15.8) million from $(5.7) million YoY.

ATLANTA, Aug. 02, 2022 (GLOBE NEWSWIRE) -- Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the second quarter ended June 30, 2022. Supplemental information is available on the Investor Relations section of Cardlytics' website at http://ir.cardlytics.com/.

“I am pleased with our growth in the first half of the year despite the growing pressure macro conditions are having on consumer spending and ad budgets,” said Lynne Laube, CEO & Co-Founder of Cardlytics. “We are also pleased with the progress we are seeing in the Bridg acquisition and expect to see further proof points in future quarters. The combination of the Cardlytics and Bridg data sets has us on the cusp of being able to scale the business beyond our core platform, while our focus on financial goals will allow us to control our own destiny moving forward.”

“We are committed to meeting our adjusted EBITDA and free cash flow goals in 2023, and we’re taking several proactive steps to reduce our cost structure in recognition of the lower-growth environment we are entering,” said Andy Christiansen, CFO of Cardlytics. “We expect year-over-year growth of approximately 10 to 15% in the back half of 2022, and I believe we can navigate a lower growth environment with minimal impact on the long-term prospects of the business.”

Second Quarter 2022 Financial Results

• Revenue was $75.4 million, an increase of 28% year-over-year, compared to $58.9 million in the second quarter of 2021.
• Billings, a non-GAAP metric, was $107.7 million, an increase of 26% year-over-year, compared to $85.3 million in the second quarter of 2021.
• Gross profit was $27.0 million, an increase of 16% year-over-year, compared to $23.2 million in the second quarter of 2021.
• Adjusted contribution, a non-GAAP metric, was $35.1 million, an increase of 19% year-over-year, compared to $29.6 million in the second quarter of 2021.
• Net loss attributable to common stockholders was $(126.3) million, or $(3.75) per diluted share, based on 33.6 million fully diluted weighted-average common shares, compared to a net loss attributable to common stockholders of $(47.3) million, or $(1.43) per diluted share, based on 33.0 million fully diluted weighted-average common shares in the second quarter of 2021.
• Non-GAAP net loss was $(21.7) million, or $(0.65) per diluted share, based on 33.6 million fully diluted weighted-average common shares, compared to non-GAAP net loss of $(12.8) million, or $(0.39) per diluted share, based on 33.0 million fully diluted weighted-average common shares in the second quarter of 2021.
• Adjusted EBITDA, a non-GAAP metric, was a loss of $(15.8) million compared to a loss of $(5.7) million in the second quarter of 2021.
  

Key Metrics

• Cardlytics MAUs were 179.9 million, an increase of 7%, compared to 167.6 million in the second quarter of 2021.
• Cardlytics ARPU was $0.38, an increase of 12%, compared to $0.34 in the second quarter of 2021.
• Bridg ARR was $21.8 million in the second quarter of 2022.
  

Definitions of MAUs, ARPU and ARR are included below under the caption “Non-GAAP Measures and Other Performance Metrics.

Earnings Teleconference Information

Cardlytics will discuss its second quarter 2022 financial results during a teleconference today, August 2, 2022, at 5:00 PM ET / 2:00 PM PT. A live dial-in will be available after registering at this link. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on August 9, 2022 on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen 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 London, New York, Los Angeles, San Francisco, Austin, Detroit and Visakhapatnam. 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, future growth and achievement of long-range goals. 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 the uncertain impacts that COVID-19 may have on our business, financial condition, results of operations; 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; 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 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-Q filed with the Securities and Exchange Commission on August 2, 2022 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.

Non-GAAP Measures and Other Performance Metrics

To supplement the financial measures presented in our press release and related conference call or webcast in accordance with generally accepted accounting principles in the United States (“GAAP”), we also present the following non-GAAP measures of financial performance: billings, adjusted contribution, adjusted EBITDA, adjusted Partner Share and other third party costs, non-GAAP net loss and non-GAAP net loss per share as well as certain other performance metrics, such as monthly active users (“MAUs”), average revenue per user (“ARPU”) and annualized recurring revenue ("ARR").

A “non-GAAP financial measure” refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies.

We have presented billings, adjusted contribution, adjusted EBITDA, adjusted Partner Share and other third-party costs, non-GAAP net loss and non-GAAP net loss per share as non-GAAP financial measures in this press release. Billings represents the gross amount billed to customers and marketers for advertising campaigns in order to generate revenue. Cardlytics platform billings is recognized gross of both Consumer Incentives and Partner Share. Cardlytics platform GAAP revenue is recognized net of Consumer Incentives and gross of Partner Share. Bridg platform billings is the same as Bridg platform GAAP revenue. We define adjusted contribution as a measure by which revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our partners. Adjusted contribution demonstrates how incremental marketing spend on our platforms generates incremental amounts to support our sales and marketing, research and development, general and administration and other investments. Adjusted contribution is calculated by taking our total revenue less our Partner Share and other third-party costs exclusive of deferred implementation costs, which is a non-cash cost. Adjusted contribution does not take into account all costs associated with generating revenue from advertising campaigns, including sales and marketing expenses, research and development expenses, general and administrative expenses and other expenses, which we do not take into consideration when making decisions on how to manage our advertising campaigns. We define adjusted EBITDA as our income (loss) before income taxes; interest expense, net; depreciation and amortization expense; stock-based compensation expense; foreign currency loss (gain); deferred implementation costs; restructuring costs, acquisition and integration (benefit) costs, change in fair value of contingent consideration and goodwill impairment. We define adjusted Partner Share and other third-party costs as our Partner Share and other third-party costs excluding non-cash equity expense and amortization of deferred implementation costs. We define non-GAAP net loss as our net loss before stock-based compensation expense; foreign currency loss (gain); acquisition and integration (benefit) costs; amortization of acquired intangibles; change in fair value of contingent consideration; and restructuring costs. Notably, any impacts related to minimum Partner Share commitments in connection with agreements with certain partners are not added back to net income (loss) in order to calculate adjusted EBITDA, adjusted contribution and non-GAAP net loss. We define non-GAAP net loss per share as non-GAAP net loss divided by weighted-average common shares outstanding, basic and diluted.

We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance.

We define MAUs as targetable customers or accounts that have logged in and visited online or mobile applications containing offers, opened an email containing an offer, or redeemed an offer from the Cardlytics platform during a monthly period. We then calculate a monthly average of these MAUs for the periods presented. We define ARPU as the total revenue generated in the applicable period calculated in accordance with GAAP, divided by the average number of MAUs in the applicable period. We define ARR as the annualized GAAP revenue of the final month in the period presented for the Bridg platform. ARR should not be considered in isolation from, or as an alternative to, revenue prepared in accordance with GAAP. We believe that ARR is an indicator of the Bridg platform’s ability to generate future revenue from existing clients.

CARDLYTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands, except par value amounts)

	June 30, 2022				December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	157,038			$	233,467
Restricted cash		81				95
Accounts receivable and contract assets, net		92,206				111,085
Other receivables		4,955				6,097
Prepaid expenses and other assets		9,658				7,981
Total current assets		263,938				358,725
Long-term assets:
Property and equipment, net		8,619				11,273
Right-of-use assets under operating leases, net		10,304				10,196
Intangible assets, net		121,047				125,550
Goodwill		665,813				742,516
Capitalized software development costs, net		16,680				13,131
Other long-term assets, net		3,106				2,406
Total assets	$	1,089,507			$	1,263,797
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	2,810			$	4,619
Accrued liabilities:
Accrued compensation		9,634				12,136
Accrued expenses		20,963				19,620
Partner Share liability		42,176				46,595
Consumer Incentive liability		42,923				52,602
Deferred revenue		4,654				3,280
Current operating lease liabilities		6,091				6,028
Current contingent consideration		164,277				182,470
Total current liabilities		293,528				327,350
Long-term liabilities:
Convertible senior notes, net		225,314				184,398
Deferred liabilities		98				173
Long-term operating lease liabilities		6,382				6,801
Long-term contingent consideration		—				49,825
Other long-term liabilities		28				4,550
Total liabilities		525,350				573,097
Stockholders’ equity:
Common stock, $0.0001 par value—100,000 shares authorized and 32,883 and 33,534 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.		9				9
Additional paid-in capital		1,163,126				1,212,823
Accumulated other comprehensive income		5,580				486
Accumulated deficit		(604,558	)			(522,618	)
Total stockholders’ equity		564,157				690,700
Total liabilities and stockholders’ equity	$	1,089,507			$	1,263,797

CARDLYTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands, except per share amounts)

	Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Revenue	$	75,405			$	58,853			$	143,333			$	112,083
Costs and expenses:
Partner Share and other third-party costs		40,280				29,953				75,433				59,724
Delivery costs		8,162				5,748				14,695				9,686
Sales and marketing expense		21,983				17,063				39,631				30,265
Research and development expense		13,581				8,934				25,872				15,152
General and administration expense		20,984				16,888				41,409				29,063
Acquisition and integration (benefit) costs		2,197				14,182				(2,401	)			21,212
Change in fair value of contingent consideration		(2,968	)			1,480				(68,018	)			1,480
Goodwill impairment		83,149				—				83,149				—
Depreciation and amortization expense		10,356				8,833				20,227				11,898
Total costs and expenses		197,724				103,081				229,997				178,480
Operating loss		(122,319	)			(44,228	)			(86,664	)			(66,397	)
Other (expense) income:
Interest expense, net		(879	)			(3,078	)			(1,826	)			(6,123	)
Foreign currency (loss) gain		(4,538	)			—				(6,208	)			319
Total other expense		(5,417	)			(3,078	)			(8,034	)			(5,804	)
Loss before income taxes		(127,736	)			(47,306	)			(94,698	)			(72,201	)
Income tax benefit		1,446				—				1,446				—
Net loss		(126,290	)			(47,306	)			(93,252	)			(72,201	)
Net loss attributable to common stockholders	$	(126,290	)		$	(47,306	)		$	(93,252	)		$	(72,201	)
Net loss per share attributable to common stockholders, basic and diluted	$	(3.75	)		$	(1.43	)		$	(2.77	)		$	(2.32	)
Weighted-average common shares outstanding, basic and diluted		33,635				32,977				33,688				31,145

CARDLYTICS, INC.
STOCK-BASED COMPENSATION EXPENSE (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Delivery costs	$	914		$	521		$	1,496		$	830
Sales and marketing		3,633			3,655			7,337			6,087
Research and development		4,247			2,448			7,451			3,962
General and administration		4,048			6,713			10,143			9,706
Total stock-based compensation	$	12,842		$	13,337		$	26,427		$	20,585

CARDLYTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)

	Six Months Ended June 30,
		2022				2021
Operating activities
Net Loss	$	(93,252	)		$	(72,201	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Credit loss expense		1,041				1,156
Depreciation and amortization		20,227				11,898
Amortization of financing costs charged to interest expense		790				448
Accretion of debt discount and non-cash interest expense		—				4,680
Amortization of right-of-use assets		2,939				2,354
Stock-based compensation expense		26,427				20,585
Change in fair value of contingent consideration		(68,018	)			1,480
Goodwill impairment		83,149				—
Other non-cash expense (income), net		6,087				(279	)
Deferred implementation costs		—				1,612
Change in operating assets and liabilities:
Accounts receivable		19,663				10,209
Prepaid expenses and other assets		(1,885	)			(1,896	)
Accounts payable		(1,821	)			2,021
Other accrued expenses		(5,770	)			2,021
Partner Share liability		(4,821	)			(8,768	)
Consumer Incentive liability		(9,679	)			(2,830	)
Net cash used in operating activities		(26,369	)			(27,510	)
Investing activities
Acquisition of property and equipment		(889	)			(1,790	)
Acquisition of patents		(57	)			(58	)
Capitalized software development costs		(6,083	)			(4,431	)
Business acquisition, net of cash acquired		(2,274	)			(494,131	)
Net cash used in investing activities		(9,303	)			(500,410	)
Financing activities
Principal payments of debt		(21	)			(11	)
Proceeds from issuance of common stock		393				485,690
Repurchase of common stock		(40,000	)			—
Deferred equity issuance costs		—				(190	)
Debt issuance costs		(174	)			(86	)
Net cash (used in) received from financing activities		(39,802	)			485,403
Effect of exchange rates on cash, cash equivalents and restricted cash		(969	)			(118	)
Net decrease in cash, cash equivalents and restricted cash		(76,443	)			(42,635	)
Cash, cash equivalents, and restricted cash — Beginning of period		233,562				293,349
Cash, cash equivalents, and restricted cash — End of period	$	157,119			$	250,714

CARDLYTICS, INC.
SUMMARY OF GAAP AND NON-GAAP RESULTS (UNAUDITED)
(Dollars in thousands)

	Three Months Ended June 30,								Change							Six Months Ended June 30,								Change
		2022				2021			$				%				2022				2021			$				%
Billings(1)	$	107,744			$	85,337			$	22,407			26	%		$	205,969			$	161,654			$	44,315			27	%
Consumer Incentives		32,339				26,484				5,855			22				62,636				49,571				13,065			26
Revenue		75,405				58,853				16,552			28				143,333				112,083				31,250			28
Adjusted Partner Share and other third-party costs(1)		40,280				29,223				11,057			38				75,433				58,112				17,321			30
Adjusted contribution(1)		35,125				29,630				5,495			19				67,900				53,971				13,929			26
Delivery costs		8,162				5,748				2,414			42				14,695				9,686				5,009			52
Deferred implementation costs		—				730				(730	)		(100	)			—				1,612				(1,612	)		(100	)
Gross profit	$	26,963			$	23,152			$	3,811			16	%		$	53,205			$	42,673			$	10,532			25	%
Net loss	$	(126,290	)		$	(47,306	)		$	(78,984	)		(167	)%		$	(93,252	)		$	(72,201	)		$	(21,051	)		29	%
Adjusted EBITDA(1)	$	(15,785	)		$	(5,666	)		$	(10,119	)		(179	)%		$	(26,322	)		$	(9,610	)		$	(16,712	)		174	%

⁽¹⁾ Billings, adjusted Partner Share and other third-party costs, adjusted contribution and adjusted EBITDA are non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are presented below under the headings "Reconciliation of GAAP Revenue to Billings", "Reconciliation of GAAP Gross Profit to Adjusted Contribution" and "Reconciliation of GAAP Net Loss to Adjusted EBITDA."

CARDLYTICS, INC.
RECONCILIATION OF GAAP REVENUE TO BILLINGS (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30, 2022									Three Months Ended June 30, 2021
	Cardlytics Platform			Bridg Platform			Consolidated			Cardlytics Platform			Bridg Platform			Consolidated
Revenue	$	69,270		$	6,135		$	75,405		$	56,763		$	2,090		$	58,853
Plus:
Consumer Incentives		32,339			—			32,339			26,484			—			26,484
Billings	$	101,609		$	6,135		$	107,744		$	83,247		$	2,090		$	85,337

	Six Months Ended June 30, 2022									Six Months Ended June 30, 2021
	Cardlytics Platform			Bridg Platform			Consolidated			Cardlytics Platform			Bridg Platform			Consolidated
Revenue	$	133,253		$	10,080		$	143,333		$	109,993		$	2,090		$	112,083
Plus:
Consumer Incentives		62,636			—			62,636			49,571			—			49,571
Billings	$	195,889		$	10,080		$	205,969		$	159,564		$	2,090		$	161,654

CARDLYTICS, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED CONTRIBUTION (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30, 2022									Three Months Ended June 30, 2021
	Cardlytics Platform			Bridg Platform			Consolidated			Cardlytics Platform			Bridg Platform			Consolidated
Revenue	$	69,270		$	6,135		$	75,405		$	56,763		$	2,090		$	58,853
Minus:
Partner Share and other third-party costs		39,403			877			40,280			29,890			63			29,953
Delivery costs(1)		6,311			1,851			8,162			4,837			911			5,748
Gross profit		23,556			3,407			26,963			22,036			1,116			23,152
Plus:
Delivery costs(1)		6,311			1,851			8,162			4,837			911			5,748
Deferred implementation costs(2)		—			—			—			730			—			730
Adjusted contribution	$	29,867		$	5,258		$	35,125		$	27,603		$	2,027		$	29,630

⁽¹⁾ Stock-based compensation expense recognized in consolidated delivery costs totaled $0.9 million and $0.5 million for the three months ended June 30, 2022 and 2021, respectively.

⁽²⁾ Deferred implementation costs is excluded from adjusted Partner Share and other third-party costs as follows (in thousands):

	Three Months Ended June 30, 2022									Three Months Ended June 30, 2021
	Cardlytics Platform			Bridg Platform			Consolidated			Cardlytics Platform			Bridg Platform			Consolidated
Partner Share and other third-party costs	$	39,403		$	877		$	40,280		$	29,890		$	63		$	29,953
Minus:
Deferred implementation costs		—			—			—			730			—			730
Adjusted Partner Share and other third-party costs	$	39,403		$	877		$	40,280		$	29,160		$	63		$	29,223

	Six Months Ended June 30, 2022									Six Months Ended June 30, 2021
	Cardlytics Platform			Bridg Platform			Consolidated			Cardlytics Platform			Bridg Platform			Consolidated
Revenue	$	133,253		$	10,080		$	143,333		$	109,993		$	2,090		$	112,083
Minus:
Partner Share and other third-party costs		74,431			1,002			75,433			59,661			63			59,724
Delivery costs(1)		11,218			3,477			14,695			8,775			911			9,686
Gross profit		47,604			5,601			53,205			41,557			1,116			42,673
Plus:
Delivery costs(1)		11,218			3,477			14,695			8,775			911			9,686
Non-cash equity expense included in FI Share(2)		—			—			—			—			—			—
Deferred implementation costs(2)		—			—			—			1,612			—			1,612
Adjusted contribution	$	58,822		$	9,078		$	67,900		$	51,944		$	2,027		$	53,971

⁽¹⁾ Stock-based compensation expense recognized in consolidated delivery costs totaled and $1.5 million and $0.8 million for the six months ended June 30, 2022 and 2021, respectively.

⁽²⁾ Deferred implementation costs is excluded from adjusted Partner Share and other third-party costs as follows (in thousands):

	Six Months Ended June 30, 2022									Six Months Ended June 30, 2021
	Cardlytics Platform			Bridg Platform			Consolidated			Cardlytics Platform			Bridg Platform			Consolidated
Partner Share and other third-party costs	$	74,431		$	1,002		$	75,433		$	59,661		$	63		$	59,724
Minus:
Deferred implementation costs		—			—			—			1,612			—			1,612
Adjusted Partner Share and other third-party costs	$	74,431		$	1,002		$	75,433		$	58,049		$	63		$	58,112

CARDLYTICS, INC.
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Net loss	$	(126,290	)		$	(47,306	)		$	(93,252	)		$	(72,201	)
Plus:
Income tax benefit		(1,446	)			—				(1,446	)			—
Interest expense - net		879				3,078				1,826				6,123
Depreciation and amortization		10,356				8,833				20,227				11,898
Stock-based compensation expense		12,842				13,337				26,427				20,585
Foreign currency loss (gain)		4,538				—				6,208				(319	)
Deferred implementation costs		—				730				—				1,612
Acquisition and integration costs (benefit)		2,197				14,182				(2,401	)			21,212
Change in fair value of contingent consideration		(2,968	)			1,480				(68,018	)			1,480
Goodwill impairment		83,149				—				83,149				—
Restructuring costs		958				—				958				—
Adjusted EBITDA	$	(15,785	)		$	(5,666	)		$	(26,322	)		$	(9,610	)

CARDLYTICS, INC.
RECONCILIATION OF ADJUSTED CONTRIBUTION TO ADJUSTED EBITDA (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30, 2022												Three Months Ended June 30, 2021
	Cardlytics Platform				Bridg Platform				Consolidated				Cardlytics Platform				Bridg Platform				Consolidated
Adjusted Contribution	$	29,867			$	5,258			$	35,125			$	27,603			$	2,027			$	29,630
Minus:
Delivery costs		6,311				1,851				8,162				4,837				911				5,748
Sales and marketing expense		20,908				1,075				21,983				16,665				398				17,063
Research and development expense		11,936				1,645				13,581				8,481				453				8,934
General and administration expense		21,232				(248	)			20,984				16,454				434				16,888
Stock-based compensation expense		(13,944	)			1,102				(12,842	)			(13,179	)			(158	)			(13,337	)
Restructuring costs		(958	)			—				(958	)			—				—				—
Adjusted EBITDA	$	(15,618	)		$	(167	)		$	(15,785	)		$	(5,655	)		$	(11	)		$	(5,666	)

	Six Months Ended June 30, 2022												Six Months Ended June 30, 2021
	Cardlytics Platform				Bridg Platform				Consolidated				Cardlytics Platform				Bridg Platform			Consolidated
Adjusted Contribution	$	58,822			$	9,078			$	67,900			$	51,944			$	2,027		$	53,971
Minus:
Delivery costs		11,218				3,477				14,695				9,686				—			9,686
Sales and marketing expense		36,816				2,815				39,631				28,524				1,741			30,265
Research and development expense		22,895				2,977				25,872				14,994				158			15,152
General and administration expense		40,441				968				41,409				29,063				—			29,063
Stock-based compensation expense		(25,879	)			(548	)			(26,427	)			(20,585	)			—			(20,585	)
Restructuring costs		(958	)			—				(958	)			—				—			—
Adjusted EBITDA	$	(25,711	)		$	(611	)		$	(26,322	)		$	(9,738	)		$	128		$	(9,610	)

CARDLYTICS, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
AND NON-GAAP NET LOSS PER SHARE (UNAUDITED)
(Amounts in thousands, except per share amounts)

	Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Net loss	$	(126,290	)		$	(47,306	)		$	(93,252	)		$	(72,201	)
Plus:
Stock-based compensation expense		12,842				13,337				26,427				20,585
Foreign currency loss		4,538				—				6,208				(319	)
Acquisition and integration costs (benefit)		2,197				14,182				(2,401	)			21,212
Amortization of acquired intangibles		7,207				5,522				14,353				6,511
Change in fair value of contingent consideration		(2,968	)			1,480				(68,018	)			1,480
Goodwill impairment		83,149				—				83,149				—
Restructuring costs		(958	)			—				(958	)			—
Income tax benefit		(1,446	)			—				(1,446	)			—
Non-GAAP net loss	$	(21,729	)		$	(12,785	)		$	(35,938	)		$	(22,732	)
Weighted-average number of shares of common stock used in computing non-GAAP net loss per share:
Non-GAAP weighted-average common shares outstanding, diluted		33,635				32,977				33,688				31,145
Non-GAAP net loss per share attributable to common stockholders, diluted	$	(0.65	)		$	(0.39	)		$	(1.07	)		$	(0.73	)

Contacts:

Public Relations:
Angie Amberg
Cardlytics, Inc.
aamberg@cardlytics.com

Investor Relations:
Robert Robinson
Corporate Development & IR
ir@cardlytics.com

FAQ

What were Cardlytics' Q2 2022 financial results?

Cardlytics reported Q2 2022 revenue of $75.4 million, a 28% increase year-over-year.

How did Cardlytics' net loss change in Q2 2022?

The net loss in Q2 2022 was $(126.3) million, compared to $(47.3) million in Q2 2021.

What is the revenue growth outlook for Cardlytics in H2 2022?

Cardlytics expects a revenue increase of approximately 10 to 15% in the back half of 2022.

What progress has Cardlytics made with the Bridg acquisition?

Cardlytics is pleased with the progress on the Bridg acquisition and anticipates further developments in future quarters.

What was Cardlytics' adjusted EBITDA for Q2 2022?

Cardlytics reported an adjusted EBITDA loss of $(15.8) million for Q2 2022.