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Cardlytics Announces Third Quarter 2024 Financial Results

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Cardlytics (NASDAQ: CDLX) reported Q3 2024 financial results showing revenue of $67.1 million, down 15% year-over-year. The company posted a net loss of $(145.2) million, or $(2.90) per share, compared to a net loss of $(24.0) million in Q3 2023. Monthly Active Users increased 2% to 166.4 million, while ARPU decreased to $0.40 from $0.49. Adjusted EBITDA was a loss of $(1.8) million versus a gain of $3.9 million last year. For Q4 2024, the company expects revenue between $62.0-$67.0 million, representing a 30-25% year-over-year decline.

Cardlytics (NASDAQ: CDLX) ha riportato i risultati finanziari del Q3 2024, mostrando un fatturato di 67,1 milioni di dollari, in diminuzione del 15% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di (145,2 milioni di dollari), ovvero $(2,90) per azione, rispetto a una perdita netta di (24,0 milioni di dollari) nel Q3 2023. Gli Utenti Attivi Mensili sono aumentati del 2% a 166,4 milioni, mentre l’ARPU è diminuito a $0,40 da $0,49. L'EBITDA rettificato ha mostrato una perdita di (1,8 milioni di dollari) rispetto a un guadagno di 3,9 milioni di dollari dell’anno scorso. Per il Q4 2024, l'azienda prevede un fatturato tra $62,0 e $67,0 milioni, con un declino del 30-25% rispetto all'anno precedente.

Cardlytics (NASDAQ: CDLX) informó los resultados financieros del Q3 2024, mostrando ingresos de $67.1 millones, una disminución del 15% en comparación con el año anterior. La compañía registró una pérdida neta de $(145.2) millones, o $(2.90) por acción, en comparación con una pérdida neta de $(24.0) millones en el Q3 2023. Los Usuarios Activos Mensuales aumentaron un 2% a 166.4 millones, mientras que el ARPU disminuyó a $0.40 de $0.49. El EBITDA ajustado fue una pérdida de $(1.8) millones en comparación con una ganancia de $3.9 millones el año pasado. Para el Q4 2024, la compañía espera ingresos entre $62.0 y $67.0 millones, lo que representa una caída del 30-25% en comparación con el año anterior.

Cardlytics (NASDAQ: CDLX)는 2024년 3분기 재무 결과를 발표하며 6710만 달러의 수익을 보고했으며, 이는 전년 대비 15% 감소한 수치입니다. 이 회사는 순손실을 (1억 4520만 달러)로 기록했으며, 주당 $(2.90)으로, 이는 2023년 3분기 순손실 $(2400만 달러)와 비교됩니다. 월간 활성 사용자 수는 2% 증가하여 1억 6640만에 이르렀으며, ARPU는 $0.49에서 $0.40으로 감소했습니다. 조정 EBITDA는 (180만 달러)의 손실을 기록하며, 지난해 390만 달러의 이익과 비교됩니다. 2024년 4분기를 위해 회사는 수익을 $6200만에서 $6700만 사이로 예상하며, 이는 전년 대비 30-25% 감소합니다.

Cardlytics (NASDAQ: CDLX) a rapporté des résultats financiers pour le T3 2024, montrant des revenus de 67,1 millions de dollars, en baisse de 15% par rapport à l'année précédente. L'entreprise a affiché une perte nette de (145,2 millions de dollars), soit $(2,90) par action, contre une perte nette de (24,0 millions de dollars) au T3 2023. Les Utilisateurs Actifs Mensuels ont augmenté de 2% pour atteindre 166,4 millions, tandis que l'ARPU a diminué à 0,40 $ contre 0,49 $. L'EBITDA ajusté a subi une perte de (1,8 million de dollars) par rapport à un gain de 3,9 millions de dollars l'année dernière. Pour le T4 2024, l'entreprise s'attend à des revenus compris entre 62,0 et 67,0 millions de dollars, représentant une baisse de 30 à 25% par rapport à l'année précédente.

Cardlytics (NASDAQ: CDLX) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht und berichtet von einem Umsatz von 67,1 Millionen Dollar, was einem Rückgang von 15% im Jahresvergleich entspricht. Das Unternehmen verzeichnete einen Nettoverlust von (145,2 Millionen Dollar), oder $(2,90) pro Aktie, verglichen mit einem Nettoverlust von (24,0 Millionen Dollar) im 3. Quartal 2023. Die monatlich aktiven Nutzer stiegen um 2% auf 166,4 Millionen, während der ARPU von $0,49 auf $0,40 sank. Das bereinigte EBITDA wies einen Verlust von (1,8 Millionen Dollar) auf, gegenüber einem Gewinn von 3,9 Millionen Dollar im letzten Jahr. Für das 4. Quartal 2024 erwartet das Unternehmen einen Umsatz von 62,0 bis 67,0 Millionen Dollar, was einem Rückgang von 30-25% im Jahresvergleich entspricht.

Positive
  • Monthly Active Users (MAUs) increased 2% year-over-year to 166.4 million
  • Operating cash flow improved slightly to $1.4 million from $1.2 million year-over-year
Negative
  • Revenue declined 15% year-over-year to $67.1 million
  • Net loss significantly widened to $(145.2) million from $(24.0) million year-over-year
  • Adjusted EBITDA turned negative to $(1.8) million from positive $3.9 million
  • ARPU decreased to $0.40 from $0.49 year-over-year
  • Q4 2024 guidance projects 25-30% revenue decline
  • Free Cash Flow worsened to $(3.9) million from $(2.0) million

Insights

The Q3 2024 results reveal significant challenges for Cardlytics, with concerning financial metrics across the board. Revenue declined by 15% year-over-year to $67.1 million, while the net loss substantially widened to $145.2 million compared to $24.0 million in the prior year. The adjusted EBITDA swung to a loss of $1.8 million from a gain of $3.9 million.

Particularly worrying is the decline in ARPU (Average Revenue Per User) to $0.40 from $0.49, despite a 2% increase in MAUs. The Q4 guidance suggests continued pressure, projecting revenue declines of 25-30%. The company's cash position remains concerning, with negative free cash flow of $3.9 million.

The digital advertising platform's performance indicates structural market challenges beyond cyclical factors. The 20% increase in consumer incentives against declining revenue suggests aggressive promotional activity to maintain user engagement, potentially eroding long-term profitability. The decline in billings (4% YoY) and adjusted contribution (15% YoY) points to weakening advertiser demand and pricing pressure in the digital advertising space.

The forward guidance implies further deterioration in core metrics, raising questions about the effectiveness of the company's transformation strategy and its competitive position in the digital advertising ecosystem.

ATLANTA, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the third quarter ended September 30, 2024.

"Our third quarter results beat the high end of our guidance, which reflects our relentless focus on addressing our short-term challenges," said Amit Gupta, CEO of Cardlytics. "We maintain that our business transformation will take time, but we believe our priorities to build a more performant network and scale our partnerships will maximize consumer engagement and rewards."

Third Quarter 2024 Financial Results

  • Revenue was $67.1 million, a decrease of (15)% year-over-year, or (13)% excluding Entertainment.
  • Billings, a non-GAAP metric, was $112.0 million, a decrease of (4)% year-over-year, or (2)% excluding Entertainment.
  • Adjusted Contribution, a non-GAAP metric, was $36.4 million, a decrease of (15)% year-over-year, (11)% excluding Entertainment.
  • Net Loss was $(145.2) million, or $(2.90) per diluted share, based on 50.0 million fully diluted weighted-average common shares, compared to a Net Loss of $(24.0) million, or $(0.63) per diluted share, based on 38.0 million fully diluted weighted-average common shares in the third quarter of 2023.
  • Adjusted EBITDA, a non-GAAP metric, was a loss of $(1.8) million compared to a gain of $3.9 million in the third quarter of 2023.
  • Adjusted Net Loss was $(7.5) million, or $(0.15) per diluted share, based on 50.0 million fully diluted weighted-average common shares, compared to Adjusted Net Income of $0.5 million, or $0.01 per diluted share, based on 38.0 million fully diluted weighted-average common shares in the third quarter of 2023.
  • Net cash provided by operating activities was $1.4 million, an increase of $0.2 million compared to $1.2 million in the third quarter of 2023.
  • Free Cash Flow, a non-GAAP metric, was $(3.9) million, a decrease of $1.9 million compared to $(2.0) million in the third quarter of 2023.

Key Metrics

  • Cardlytics MAUs were 166.4 million, an increase of 2% year-over-year, compared to 162.5 million in the third quarter of 2023.
  • Cardlytics ARPU was $0.40 compared to $0.49 in the third quarter of 2023.

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


CARDLYTICS, INC.

SUMMARY OF GAAP AND NON-GAAP RESULTS (UNAUDITED)
(Dollars in thousands)

 Three Months Ended September 30,  
  2024   2023  2023 Results
Excluding
Entertainment
(2)
 Change %  Change %
Excluding
Entertainment
(2)
Billings(1)$111,958  $116,430  $114,276  (4)% (2)%
Consumer Incentives 44,901   37,425   37,425  20% 20%
Revenue 67,057   79,005   76,851  (15)% (13)%
Partner Share and other third-party costs 30,675   36,144   36,105  (15)% (15)%
Adjusted Contribution(1) 36,382   42,861   40,746  (15)% (11)%
Delivery costs 7,830   7,012   7,012  12% 12%
Gross Profit$28,552  $35,849  $33,734  (20)% (15)%
Net Loss$(145,182) $(23,966) $(23,638) n/a n/a
Adjusted EBITDA(1)$(1,816) $3,946  $3,593  n/a n/a
          
Adjusted Contribution         
% of Billings 32.5%  36.8%  35.7%    
% of Revenue 54.3%  54.3%  53.0%    
Adjusted EBITDA         
% of Billings(1.6)%  3.4%  3.1%    
% of Revenue(2.7)%  5.0%  4.7%    
(1)  Billings, 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."
(2)  The column excludes results from the Entertainment business. We sold and transferred substantially all of the assets of Entertainment in December 2023.


Fourth Quarter 2024 Financial Expectations

Cardlytics anticipates Billings, Revenue, Adjusted Contribution and Adjusted EBITDA to be in the following ranges (in millions, except for percentage change rates):

 Q4 2024
Guidance
 YoY Change YoY Change
Excluding
Entertainment
(3)
Billings(1)$102.0 - $108.0 (23%) - (18%) (22%) - (18%)
Revenue$62.0 - $67.0 (30%) - (25%) (30%) - (24%)
Adjusted Contribution(2)$33.0 - $36.0 (30%) - (24%) (29%) - (22%)
Adjusted EBITDA(2)($5.0) - ($1.0) ($15.0) - ($11.0) ($15.3) - ($11.3)
(1)  A reconciliation of Billings to GAAP Revenue on a forward-looking basis is presented below under the heading "Reconciliation of Forecasted GAAP Revenue to Billings."
(2)  A reconciliation of Adjusted Contribution to GAAP Gross Profit and a reconciliation of Adjusted EBITDA to Net Loss on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from this non-GAAP measure.
(3)  The column excludes results from the Entertainment business. We sold and transferred substantially all of the assets of Entertainment in December 2023.


Earnings Teleconference Information

Cardlytics will discuss its third quarter 2024 financial results during a live audio webcast today, November 6, 2024, at 5:00 PM ET / 2:00 PM PT. 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 approximately 1 of every 2 card-based transactions in the U.S., allowing us to see 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 Menlo Park, Los Angeles, New York, 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, statements related to our growth opportunity, our ability to deliver stronger execution and shareholder value and our financial guidance for the fourth quarter of 2024. 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 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; our ability to generate sufficient revenue to offset contractual commitments to FI partners; 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-Q filed with the Securities and Exchange Commission on November 6, 2024 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 in this press release: Billings, Adjusted Contribution, Adjusted EBITDA, Adjusted Net (Loss) Income, Adjusted Net (Loss) Income per share and Free Cash Flow, as well as certain other performance metrics, such as monthly active users (“MAUs”) and average revenue per user (“ARPU”).

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 Net (Loss) Income and Adjusted Net (Loss) Income per share as non-GAAP financial measures in this press release. Billings represents the gross amount billed to customers and marketers for services 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. Adjusted Contribution measures the degree 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 Revenue 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. Management views Adjusted Contribution as the most relevant metric to measure the financial performance as it reflects the dollars we keep after all of our partners are paid. Adjusted EBITDA represents our Net Loss before interest expense, net; depreciation and amortization; stock-based compensation expense; foreign currency (gain) loss; gain on debt extinguishment; acquisition, integration and divestiture costs (benefit); change in contingent consideration; and impairment of goodwill and intangible assets and, in applicable periods, certain other income and expense items, such as loss on divestiture; restructuring and reduction of force; income tax benefit; and deferred implementation costs. Adjusted Net (Loss) Income as our Net Loss before stock-based compensation expense; foreign currency (gain) loss; gain on debt extinguishment; acquisition, integration and divestiture costs (benefit); amortization of acquired intangibles; change in contingent consideration; and impairment of goodwill and intangible assets and, in applicable periods, certain other income and expense items, such as loss on divestiture; restructuring and reduction of force; and income tax benefit. We define Adjusted Net (Loss) Income per share as Adjusted Net (Loss) Income divided by our weighted-average common shares outstanding, diluted. We define Free Cash Flow as net cash used in operating activities, plus acquisition of property and equipment and capitalized software development costs and, in applicable periods, acquisition of patents. We believe free cash flow is useful to measure the funds generated in a given period that are available for distribution or to sustain the business. We believe this supplemental information enhances stockholders' ability to evaluate our performance.

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 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 believe that MAUs is an indicator of the Cardlytics platform's ability to drive engagement and is reflective of the marketing base that we offer to marketers. 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.

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

 September 30,
2024
 December 31,
2023
Assets   
Current assets:   
Cash and cash equivalents$66,988  $91,830 
Accounts receivable and contract assets, net 105,587   120,622 
Other receivables 3,968   5,379 
Prepaid expenses and other assets 6,787   6,097 
Total current assets 183,330   223,928 
Long-term assets:   
Property and equipment, net 2,847   3,323 
Right-of-use assets under operating leases, net 6,933   7,310 
Intangible assets, net 12,826   35,003 
Goodwill 159,429   277,202 
Capitalized software development costs, net 31,859   24,643 
Other long-term assets, net 2,169   2,735 
Total assets$399,393  $574,144 
Liabilities and stockholders' equity   
Current liabilities:   
Accounts payable$3,927  $4,425 
Accrued liabilities:   
Accrued compensation 8,250   11,662 
Accrued expenses 8,359   9,587 
Short-term debt 45,789    
Partner Share liability 30,783   48,867 
Consumer Incentive liability 49,912   52,678 
Deferred revenue 2,064   2,405 
Current operating lease liabilities 2,361   2,127 
Current contingent consideration 4,463   39,398 
Total current liabilities 155,908   171,149 
Long-term liabilities:   
Convertible senior notes, net 167,448   227,504 
Long-term operating lease liabilities 6,323   6,391 
Long-term deferred revenue    67 
Line of Credit    30,000 
Long-term contingent consideration    4,162 
Other long-term liabilities 17   73 
Total liabilities$329,696  $439,346 
Stockholders’ equity:   
Common stock, $0.0001 par value—100,000 shares authorized, 50,342 and 39,728 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively$9  $9 
Additional paid-in capital 1,356,173   1,243,594 
Accumulated other comprehensive (loss) income (1,498)  2,467 
Accumulated deficit (1,284,987)  (1,111,272)
Total stockholders’ equity 69,697   134,798 
Total liabilities and stockholders’ equity$399,393  $574,144 


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

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Revenue$67,057  $79,005  $204,301  $220,037 
Costs and expenses:       
Partner Share and other third-party costs 30,675   36,144   94,476   108,698 
Delivery costs 7,830   7,012   21,664   20,451 
Sales and marketing expense 13,163   14,161   41,306   43,314 
Research and development expense 13,194   12,430   39,712   38,841 
General and administration expense 12,076   15,561   42,712   44,907 
Acquisition, integration and divestiture costs (benefit)    78   162   (8,146)
Change in contingent consideration 100   8,281   110   (15,045)
Impairment of goodwill and intangible assets 131,595      131,595    
Depreciation and amortization expense 6,970   5,990   19,749   19,765 
Total costs and expenses 215,603   99,657   391,486   252,785 
Operating Loss (148,546)  (20,652)  (187,185)  (32,748)
Other (expense) income:       
Interest expense, net (1,479)  (915)  (3,859)  (1,497)
Foreign currency gain (loss) 4,843   (2,399)  4,312   379 
Gain on debt extinguishment       13,017    
Total other income (expense) 3,364   (3,314)  13,470   (1,118)
Loss before income taxes (145,182)  (23,966)  (173,715)  (33,866)
Net Loss$(145,182) $(23,966) $(173,715) $(33,866)
Net Loss per share, basic and diluted$(2.90) $(0.63) $(3.66) $(0.95)
Weighted-average common shares outstanding, basic and diluted 50,028   37,982   47,469   35,502 


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

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024  2023  2024  2023
Delivery costs$675 $667 $2,039 $1,800
Sales and marketing expense 2,096  2,683  8,140  9,487
Research and development expense 3,448  3,661  12,031  12,248
General and administration expense 1,846  3,238  9,484  6,421
Total stock-based compensation expense$8,065 $10,249 $31,694 $29,956


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

 Nine Months Ended
September 30,
  2024   2023 
Operating activities   
Net Loss$(173,715) $(33,866)
Adjustments to reconcile net loss to net cash used in operating activities:   
Credit loss expense 3,980   1,153 
Depreciation and amortization 19,749   19,765 
Amortization of financing costs charged to interest expense 1,235   1,234 
Amortization of right-of-use assets 1,627   2,807 
Gain on debt extinguishment (13,017)   
Stock-based compensation expense 31,694   29,956 
Impairment of goodwill and intangible assets 131,595    
Change in contingent consideration 110   (15,044)
Other non-cash income, net (4,136)  (613)
Change in operating assets and liabilities:   
Accounts receivable 12,909   10,991 
Prepaid expenses and other assets (229)  1,114 
Accounts payable 820   (265)
Other accrued expenses (3,192)  (10,282)
Partner Share liability (18,330)  (4,994)
Consumer Incentive liability (2,903)  (5,075)
Net cash used in operating activities (11,803)  (3,119)
Investing activities   
Acquisition of property and equipment (1,439)  (393)
Capitalized software development costs (13,423)  (8,302)
Business divestiture 202    
Net cash used in investing activities (14,660)  (8,695)
Financing activities   
Proceeds from issuance of debt 172,500   30,000 
Settlement of contingent consideration (14,167)  (50,050)
Principal payment of debt (199,291)  (21)
Proceeds from termination of capped calls related to convertible notes 115    
Proceeds from issuance of common stock 48,634   55 
Equity issuance costs (309)  (58)
Debt issuance costs (5,836)   
Net cash provided by (used in) financing activities 1,646   (20,074)
Effect of exchange rates on cash, cash equivalents and restricted cash (25)  43 
Net decrease in cash, cash equivalents and restricted cash (24,842)  (31,845)
Cash, cash equivalents, and restricted cash — Beginning of period 91,830   121,985 
Cash, cash equivalents, and restricted cash — End of period$66,988  $90,140 


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

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024  2023  2024  2023
Consolidated       
Revenue$67,057 $79,005 $204,301 $220,037
Plus:       
Consumer Incentives 44,901  37,425  123,260  101,443
Billings$111,958 $116,430 $327,561 $321,480
Cardlytics platform       
Revenue$61,110 $73,064 $187,345 $202,820
Plus:       
Consumer Incentives 44,901  37,425  123,260  101,443
Billings$106,011 $110,489 $310,605 $304,263
Bridg platform       
Revenue$5,947 $5,941 $16,956 $17,217
Plus:       
Consumer Incentives       
Billings$5,947 $5,941 $16,956 $17,217


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

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024  2023  2024  2023
Consolidated       
Revenue$67,057 $79,005 $204,301 $220,037
Minus:       
Partner Share and other third-party costs 30,675  36,144  94,476  108,698
Delivery costs(1) 7,830  7,012  21,664  20,451
Gross Profit 28,552  35,849  88,161  90,888
Plus:       
Delivery costs(1) 7,830  7,012  21,664  20,451
Adjusted Contribution$36,382 $42,861 $109,825 $111,339
Cardlytics platform       
Revenue$61,110 $73,064 $187,345 $202,820
Minus:       
Partner Share and other third-party costs 30,292  36,011  93,569  108,272
Delivery costs(1) 6,011  5,510  16,837  15,420
Gross Profit 24,807  31,543  76,939  79,128
Plus:       
Delivery costs(1) 6,011  5,510  16,837  15,420
Adjusted Contribution$30,818 $37,053 $93,776 $94,548
Bridg platform       
Revenue$5,947 $5,941 $16,956 $17,217
Minus:       
Partner Share and other third-party costs 383  133  907  426
Delivery costs(1) 1,819  1,502  4,827  5,031
Gross Profit 3,745  4,306  11,222  11,760
Plus:       
Delivery costs(1) 1,819  1,502  4,827  5,031
Adjusted Contribution$5,564 $5,808 $16,049 $16,791
(1) Stock-based compensation expense recognized in consolidated delivery costs totaled $0.7 million for each the three months ended September 30, 2024 and 2023, respectively. Stock based compensation expense recognized in consolidated delivery costs totaled $2.0 million and $1.8 million for the nine months ended September 30, 2024 and 2023, respectively.


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

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Net Loss$(145,182) $(23,966) $(173,715) $(33,866)
Plus:       
Interest expense, net 1,479   915   3,859   1,497 
Depreciation and amortization 6,970   5,990   19,749   19,765 
Stock-based compensation expense 8,065   10,249   31,694   29,956 
Foreign currency (gain) loss (4,843)  2,399   (4,312)  (379)
Gain on debt extinguishment       (13,017)   
Acquisition, integration and divestiture costs (benefit)    78   162   (8,146)
Change in contingent consideration 100   8,281   110   (15,045)
Impairment of goodwill and intangible assets 131,595      131,595    
Adjusted EBITDA$(1,816) $3,946  $(3,875) $(6,218)


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

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Consolidated       
Adjusted Contribution$36,382  $42,861  $109,825  $111,339 
Minus:       
Delivery costs 7,830   7,012   21,664   20,451 
Sales and marketing expense 13,163   14,161   41,306   43,314 
Research and development expense 13,194   12,430   39,712   38,841 
General and administration expense 12,076   15,561   42,712   44,907 
Stock-based compensation expense (8,065)  (10,249)  (31,694)  (29,956)
Adjusted EBITDA$(1,816) $3,946  $(3,875) $(6,218)
Cardlytics platform       
Adjusted Contribution$30,818  $37,053  $93,776  $94,549 
Minus:       
Delivery costs 6,011   5,510   16,837   15,420 
Sales and marketing expense 11,047   12,041   34,082   36,422 
Research and development expense 11,153   11,046   33,519   34,772 
General and administration expense 11,312   14,874   39,516   43,321 
Stock-based compensation expense (7,066)  (9,127)  (27,912)  (27,835)
Adjusted EBITDA$(1,639) $2,709  $(2,266) $(7,551)
Bridg platform       
Adjusted Contribution$5,564  $5,808  $16,049  $16,790 
Minus:       
Delivery costs 1,819   1,502   4,827   5,031 
Sales and marketing expense 2,116   2,120   7,224   6,892 
Research and development expense 2,041   1,384   6,193   4,069 
General and administration expense 764   687   3,196   1,586 
Stock-based compensation expense (999)  (1,122)  (3,782)  (2,121)
Adjusted EBITDA$(177) $1,237  $(1,609) $1,334 


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

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Net Loss$(145,182) $(23,966) $(173,715) $(33,866)
Plus:       
Stock-based compensation expense 8,065   10,249   31,694   29,956 
Foreign currency (gain) loss (4,843)  2,399   (4,312)  (379)
Gain on debt extinguishment       (13,017)   
Acquisition, integration and divestiture costs (benefit)    78   162   (8,146)
Amortization of acquired intangibles 2,785   3,433   8,355   10,333 
Change in contingent consideration 100   8,281   110   (15,045)
Impairment of goodwill and intangible assets 131,595      131,595    
Adjusted Net (Loss) Income$(7,480) $474  $(19,128) $(17,147)
Weighted-average number of shares of common stock used in computing Adjusted Net (Loss) Income per share:       
Weighted-average common shares outstanding, diluted 50,028   37,982   47,469   35,502 
Adjusted Net (Loss) Income per share, diluted$(0.15) $0.01  $(0.40) $(0.48)


CARDLYTICS, INC.
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)
(Amounts in thousands)

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Net cash provided by (used in) operating activities$1,388  $1,194  $(11,803) $(3,119)
Plus:       
Acquisition of property and equipment (507)  (51)  (1,439)  (393)
Capitalized software development costs (4,750)  (3,094)  (13,423)  (8,302)
Free Cash Flow$(3,869) $(1,951) $(26,665) $(11,814)


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

 Q4 2024
Revenue$62.0 - $67.0
Plus: 
Consumer Incentives$40.0 - $41.0
Billings$102.0 - $108.0


Contacts:

Public Relations:
pr@cardlytics.com 

Investor Relations:
ir@cardlytics.com 


FAQ

What was Cardlytics (CDLX) revenue in Q3 2024?

Cardlytics reported revenue of $67.1 million in Q3 2024, representing a 15% decrease year-over-year.

What was Cardlytics (CDLX) net loss per share in Q3 2024?

Cardlytics reported a net loss of $(2.90) per diluted share in Q3 2024, based on 50.0 million fully diluted weighted-average common shares.

How many monthly active users does Cardlytics (CDLX) have in Q3 2024?

Cardlytics reported 166.4 million monthly active users (MAUs) in Q3 2024, a 2% increase from 162.5 million in Q3 2023.

What is Cardlytics (CDLX) Q4 2024 revenue guidance?

Cardlytics expects Q4 2024 revenue to be between $62.0 million and $67.0 million, representing a year-over-year decline of 25-30%.

Cardlytics, Inc.

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