Cardlytics, Inc. (NASDAQ:CDLX) Q1 2024 Earnings Conference Call May 8, 2024 5:00 PM ET Company Participants Nick Lynton - Chief, Legal and Privacy Officer Karim Temsamani - CEO Alexis DeSieno - CFO Conference Call Participants Kyle Peterson - Needham Jason Kreyer - Craig Hallum Jacob Stephan - Lake Street Capital Markets Operator Good day and thank you for standing by. Welcome to the Cardlytics Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentati ...

Intellectual Property and Regulatory Compliance - The company had sixteen issued patents related to its software as of the filing date[106] - The California Consumer Privacy Act (CCPA) imposes civil penalties for violations, with damages of up to $7,500 per intentional violation[105] - The company is subject to increased scrutiny from regulators regarding data transfers from the EEA and U.K. to the U.S.[105] - The company relies on a combination of patent, trademark, copyright, and trade secret laws for intellectual property protection, which may not provide a competitive advantage[106] - The company may face fines of up to 20 million euros or 4% of annual global revenue under the EU GDPR for data processing violations[105] - The regulatory framework for online services and data privacy is rapidly evolving, increasing compliance costs for the company[105] - The company is subject to stringent privacy and data security laws, which could adversely affect its business operations and financial results[157] Financial Performance and Metrics - For the three months ended March 31, 2024, Cardlytics Billings increased by $9.6 million to $105.2 million, a 10% increase compared to the same period in 2023[123] - Consolidated Revenue for the same period was $67.6 million, up from $64.3 million, reflecting a growth of approximately 3.5%[125] - Cardlytics Monthly Active Users (MAUs) rose by 10.4 million to 168.5 million, representing a 7% increase year-over-year[133] - Average Revenue per User (ARPU) decreased by $0.01 to $0.40, a decline of 2% compared to the previous year[135] - Adjusted Contribution for the three months ended March 31, 2024, was $37.1 million, up from $30.9 million, indicating a growth of 19%[125] - Gross Profit for the same period increased to $30.9 million from $24.5 million, marking a 26% increase[125] - The company reported a net loss of $24.3 million for the three months ended March 31, 2024, compared to a net income of $13.6 million in the same period last year[135] - Adjusted EBITDA improved to $226,000 from a loss of $6.1 million year-over-year[135] - Free Cash Flow for the period was a negative $22.4 million, worsening from a negative $12.9 million in the same period last year[135] - The top five marketers accounted for 21% of revenue for the three months ended March 31, 2024, up from 16% in the same period in 2023[145] - The company’s revenue and accounts receivable are diversified among a large number of marketers, with no single marketer accounting for over 10% of revenue[145] Stock and Capital Management - The company does not intend to pay dividends for the foreseeable future, focusing instead on retaining earnings for business development[110] - The company may issue additional common stock to raise capital, which could significantly dilute existing shares[112] - The company has provisions in its charter that could make acquisitions more difficult and limit stockholder influence over management[110] - The company sold 3,907,600 shares of common stock at a weighted average price of $12.80, resulting in net proceeds of $48.3 million[184] - The company issued $172.5 million principal amount of 4.25% Convertible Senior Notes due in 2029, with net proceeds estimated at $166.8 million[148] - The company issued convertible senior notes totaling $172.5 million on April 1, 2024, with a net proceeds of approximately $166.8 million after expenses[254] - The company repurchased approximately $183.9 million in aggregate principal amount of the 2020 Convertible Senior Notes using net proceeds from the recent offering[254] Operational and Asset Management - The company has centralized operations in Atlanta, GA; Menlo Park, CA; and New York, NY, which may be vulnerable to natural or man-made disasters[111] - As of March 31, 2024, total assets decreased to $568,951,000 from $574,144,000 as of December 31, 2023, reflecting a decline of approximately 0.3%[171] - Current liabilities significantly reduced to $102,550,000 from $171,149,000, a decrease of approximately 40.2%[171] - Stockholders' equity increased to $199,137,000 as of March 31, 2024, compared to $134,798,000 at the end of 2023, representing an increase of approximately 47.7%[171] - Cash and cash equivalents rose to $97,766,000 from $91,830,000, an increase of approximately 6.5%[171] - The accumulated deficit increased to $(1,135,547,000) from $(1,111,272,000), indicating a worsening of approximately 2.2%[171] - Total liabilities decreased to $369,814,000 from $439,346,000, a reduction of approximately 15.8%[171] - The company has various non-cancellable operating and finance leases with periods expiring between 2024 and 2032, indicating a commitment to maintaining operational infrastructure[228] Research and Development - The company incurred research and development expenses of $13.0 million for the three months ended March 31, 2024, compared to $11.6 million for the same period in 2023, an increase of approximately 12.7%[201] - The company capitalized $1.3 million of stock-based compensation expense for software development during the three months ended March 31, 2024, compared to $0.4 million in the same period of 2023[261] Market and Economic Conditions - Macroeconomic conditions, including inflation and interest rate changes, may negatively impact business growth and advertising spending, affecting overall financial performance[240] - The company continues to focus on incremental revenue generation to support investments in sales and marketing, research and development, and general administration[297] - The financial results indicate a positive trend in revenue growth and improved profitability metrics, suggesting effective cost management strategies[297] - The company is likely to pursue further market expansion and product development initiatives based on the positive financial performance observed[297]

Exhibit 99.1 Key Metrics • Cardlytics MAUs were 168.5 million, an increase of 7% year-over-year, compared to 158.1 million in the first quarter of 2023. • Cardlytics ARPU was $0.40 compared to $0.41 in the first quarter of 2023. Definitions of MAUs and ARPU are included below under the caption "Non-GAAP Measures and Other Performance Metrics." Cardlytics anticipates Billings, Revenue, Adjusted Contribution and Adjusted EBITDA to be in the following ranges (in millions, except for percentage change rates): 2 ...

ATLANTA, April 09, 2024 (GLOBE NEWSWIRE) -- Cardlytics, Inc. (NASDAQ:CDLX), a digital advertising platform, is excited to announce the appointment of Liane Hornsey to its Board of Directors. In connection with her appointment to the Board of Directors, Hornsey was also appointed to the Board's Compensation Committee, and she will assume the role of Compensation Committee Chairperson upon Cardlytics' upcoming Annual Meeting of Stockholders in May 2024. Hornsey, who is currently Executive Vice President and A ...

The business is stabilizing, but it's still working through past mistakes.Shares of advertising-technology (adtech) company Cardlytics (CDLX -5.60%) skyrocketed 74.8% in March, according to data provided by S&P Global Market Intelligence. Investors had disregarded this company's prospects entirely. But its latest financial report surprisingly showed modest growth and improved financials.Cardlytics' partners are financial institutions, and the company's software helps these companies manage loyalty and rewar ...

Shares of advertising technology (adtech) company Cardlytics (CDLX 50.28%) absolutely skyrocketed on Friday after reporting its financial results for the fourth quarter of 2023. As of 10:15 a.m. ET, Cardlytics stock is up 51% and up more than 240% over the past year.Cardlytics is bucking the market's narrativeFor Cardlytics, I believe the market was overly pessimistic about its long-term prospects. For perspective, the stock traded at book value earlier this year -- highly unusual for a tech stock. And prio ...

Leading digital advertising and financial technology company, Cardlytics (NASDAQ:CDLX), reported its fourth-quarter results after market closing yesterday. Although the company missed analysts’ EPS and revenue expectations by $0.03 and $0.35 million, respectively, its stock jumped over 37% post-market buoyed by optimistic guidance for Q1 2024.From bullish peaks to bearish strugglesCopy link to sectionFollowing a remarkable bull run between 2019 and 2020 that saw the stock reach highs above $160 in early 202 ...

Financial Data and Key Metrics - The company generated $453.4 million in billings in 2023, representing 2% growth YoY, and $309.2 million in revenue, up 4% YoY [41] - Adjusted EBITDA was positive for the first time since 2019 at $3.8 million, nearly $50 million better than in 2022 [41] - Q4 billings reached $131.9 million, a 5% increase YoY, driven by success in everyday spend and travel categories [42] - Q4 revenue was $89.2 million, up 8% YoY, partially due to a one-time revenue-related benefit of $2.2 million [42] - Adjusted contribution in Q4 increased 18% to $47.3 million, with a margin of 53% compared to 48% a year ago [43] - Free cash flow for the year improved by nearly $55 million compared to 2022, though Q4 free cash flow was negative $0.8 million [45] - Adjusted EBITDA exceeded guidance at positive $10 million in Q4, the largest in the company's history [22] Business Line Performance - The U.S. revenue increased 8% YoY, while the U.K. showed growth for the first time in several quarters at 4% [21] - The restaurant category turned slightly positive in Q4, with efforts to rebuild the sales team beginning to pay off [42] - Bridge, the company's retail media and data network, was profitable for the third consecutive quarter [22] - Bridge revenue grew 12% in Q4 due to an existing customer expanding its contract and a new large restaurant joining the platform [66] - The company signed a new large bank partner in the U.S., with promising discussions ongoing with additional banks in the U.S. and U.K. [9] Market Performance - The company re-signed Lloyds to a three-year contract and implemented an auto-enrollment program, which has allowed the sales team to sell and deliver larger budgets [21] - The company's new technology, ADE (Ads Decision Engine), has seen 80% of the network traffic now on AWS, with 40% on the latest version [11] - Banks on ADE have seen a 23% increase in redemption rates compared to a 9% increase across the whole network [11] - The company's Ripple platform has attracted leading retailers like Wegmans and Giant Eagle, with a national footprint of around 70 million profiles [62] Strategic Direction and Industry Competition - The company has made fundamental changes to its cost structure, including renegotiating partner contracts and rightsizing expenses [8] - The company is focusing on four key pillars to drive engagement: content and insights, customizable tools for merchants, easier offer discovery, and differentiated offerings for each bank [33][36][37][16] - The company is leveraging its tech and network size to create differentiated offerings such as featured offers, increased curations, and proximity offers [16] - The company is working towards a broader and deeper dataset, more sophisticated audience targeting, better analytics, and a variety of ad formats to drive increased engagement [18] Management Commentary on Operating Environment and Future Outlook - The company resolved the SRS dispute and rebalanced its cost structure, allowing it to focus on execution and growth [7][30] - The company expects 12% to 16% billings growth in Q1 2024, excluding entertainment, which was resolved in Q4 [30] - The company is confident in its long-term growth prospects, with a focus on driving consumer engagement, top-line growth, and adjusted EBITDA [47] - The company expects double-digit billings growth for 2024 and to be operating cash flow positive on an annual basis [47] Other Important Information - The company added a new non-GAAP metric, free cash flow, to its 10-K, which it believes is useful for measuring funds available to invest in the business [23] - The company ended Q4 with $91.8 million in cash and cash equivalents and $16.7 million of unused available borrowings under its line of credit [67] - The company amended its line of credit in February, allowing it to borrow up to 75% of its eligible accounts receivable, up from 50% previously [67] Q&A Session Summary Question: Timing and expenses related to the new FI partner - The company cannot provide specific timing details beyond what was referenced in the 8-K, but there are no major upfront expenses expected [50][75] Question: Upside to billings growth and drivers - The company is confident in its initiatives to re-accelerate revenue, with a focus on increased customer spend and engagement [52] Question: Progress on ADE adoption and challenges - 80% of the network is on ADE, with 20% not yet migrated due to larger tech changes required for some partners [82] Question: Multi-tier offers program rollout - The company is testing multi-tier offers with several clients and will update the market on the broader rollout when more data is available [86] Question: Return of larger marketers to the platform - The company has reinvested in its sales teams and introduced new product initiatives, which have helped bring back larger marketers [87] Question: Discovery and consumer activation improvements - The company is working with bank partners to improve offer placements and has seen a 5x higher activation rate for offers placed on line-item transactions in bank statements [84][90]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File Number: 001-38386 CARDLYTICS, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 26-3039436 (State or o ...

Shares of digital advertising company Cardlytics (CDLX 26.52%) skyrocketed on Monday after the company settled a lawsuit and reported preliminary financial results for the fourth quarter of 2023. As of 9:50 a.m. ET, Cardlytics stock was up about 34%. That said, it's still down 95% from its high set in 2021.Are things looking up for Cardlytics?Cardlytics works with financial institutions to manage their reward programs. It then takes this information to help marketers better target consumers. Even though the ...