Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform,
today announced financial results for the first quarter ended March
31, 2025.
"We've made marked progress across our key business pillars,
which continue to underpin our journey to 'platformize' Cardlytics
and position ourselves as the leading commerce media platform,"
said Amit Gupta, CEO of Cardlytics. "Our expanding ecosystem, depth
and breadth of our data, and ongoing tech investments are
strengthening our position and providing differentiated value to
our partners and advertisers."
"We’ve built a resilient platform and are making strategic
decisions as we look to future-proof our business," said Alexis
DeSieno, CFO of Cardlytics. "With recent actions to strengthen our
balance sheet, we’re taking a targeted, disciplined approach to
cost management while continuing to invest in key areas for
growth.”
First Quarter 2025 Financial Results
- Revenue was $61.9 million, a decrease of 8% year-over-year
compared to $67.6 million in the first quarter of 2024.
- Billings, a non-GAAP metric, was $97.6 million, a decrease of
7% year-over-year compared to $105.2 million in the first quarter
of 2024.
- Adjusted Contribution, a non-GAAP metric, was $32.4 million, a
decrease of 12% year-over-year compared to $37.1 million in the
first quarter of 2024.
- Net Loss was $(13.3) million, or $(0.26) per diluted share,
based on 51.9 million fully diluted weighted-average common shares,
compared to a Net Loss of $(24.3) million, or $(0.56) per diluted
share, based on 43.2 million fully diluted weighted-average common
shares in the first quarter of 2024.
- Adjusted EBITDA, a non-GAAP metric, was $(4.4) million compared
to $0.2 million in the first quarter of 2024.
- Adjusted Net Loss was $(11.1) million, or $(0.21) per diluted
share, based on 51.9 million fully diluted weighted-average common
shares, compared to Adjusted Net Loss of $(4.1) million, or $(0.09)
per diluted share, based on 43.2 million fully diluted
weighted-average common shares in the first quarter of 2024.
- Net cash used in operating activities was $(6.7) million,
compared to $(17.6) million in the first quarter of 2024.
- Free Cash Flow, a non-GAAP metric, was $(10.8) million,
compared to $(22.4) million in the first quarter of 2024.
Key Metrics
- Cardlytics monthly qualified users ("MQUs") were 214.9 million,
an increase of 12% year-over-year, compared to 191.2 million in the
first quarter of 2024.
- Cardlytics adjusted contribution per user ("ACPU") was $0.13
compared to $0.17 in the first quarter of 2024.
Definitions of MQUs and ACPU are included below under the
caption “Other Performance Metrics."
The following table presents MQUs for the historical periods
indicated:
Three Months Ended
in thousands
March 31, 2023
June 30, 2023
September 30, 2023
December 31, 2023
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
Cardlytics MQUs
181,720
186,225
189,126
191,865
191,206
188,816
190,233
191,674
The following table presents ACPU for the historical periods
indicated:
Three Months Ended
March 31, 2023
June 30, 2023
September 30, 2023
December 31, 2023
March 31, 2024
June 30, 2024
September 30, 2024
December 31, 2024
Cardlytics ACPU
$
0.14
$
0.17
$
0.20
$
0.21
$
0.17
$
0.16
$
0.16
$
0.18
CARDLYTICS, INC.
SUMMARY OF GAAP AND NON-GAAP
RESULTS (UNAUDITED)
(Dollars in thousands)
Three Months Ended
March 31,
2025
2024
Change %
Billings(1)
$
97,579
$
105,216
(7
)%
Consumer Incentives
35,681
37,608
(5
)%
Revenue
61,898
67,608
(8
)%
Partner Share and other third-party
costs
29,450
30,543
(4
)%
Adjusted Contribution(1)
32,448
37,065
(12
)%
Delivery costs
7,288
6,173
18
%
Gross Profit
$
25,160
$
30,892
(19
)%
Net Loss
$
(13,282
)
$
(24,275
)
(45
)%
Adjusted EBITDA(1)
$
(4,384
)
$
226
na
Adjusted Contribution
% of Billings
33.3
%
35.2
%
% of Revenue
52.4
%
54.8
%
Adjusted EBITDA
% of Billings
(4.5
)%
0.2
%
% of Revenue
(7.1
)%
0.3
%
(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."
Second Quarter 2025 Financial Expectations
Cardlytics anticipates Billings, Revenue, Adjusted Contribution
and Adjusted EBITDA to be in the following ranges (in millions,
except for percentage change rates):
Q2 2025 Guidance
YoY Change
Billings(1)
$100.0 - 108.0
(9%) - (2%)
Revenue
$61.0 - $67.0
(12%) - (4%)
Adjusted Contribution(2)
$32.5 - $36.5
(11%) - 0%
Adjusted EBITDA(2)
($4.0) - $1.0
($1.7) - $3.3
(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.
Earnings Teleconference Information
Cardlytics will discuss its first quarter 2025 financial results
during a live audio webcast today, May 7, 2025, 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 strategic initiatives to strengthen
our business and market position and our financial guidance for the
second quarter of 2025. 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, including, but not limited to, inflationary pressure or
the imposition of tariffs and other trade protection measures, 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”), American Express Travel
Related Services Company, Inc. (“American Express”) 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;
risks related to our competitive market, including our ability to
compete successfully with our current or future competitors; 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 May 7, 2025 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, Adjusted Net Loss
per share and Free Cash Flow, as well as certain other performance
metrics, such as MQUs and ACPU.
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 and Adjusted Net Loss 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 administrative and other investments.
Adjusted Contribution is calculated by taking our total Revenue
less our Partner Share and other third-party costs. 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; loss (gain) on disposal or
divestiture; and change in contingent consideration; and, in
applicable periods, certain other income and expense items, such as
impairment of goodwill and intangible assets; gain on debt
extinguishment; acquisition, integration and divestiture costs
(benefit); restructuring and reduction of force; income tax
benefit; and deferred implementation costs. Adjusted Net Loss as
our Net Loss before stock-based compensation expense; foreign
currency (gain) loss; amortization of acquired intangibles; loss
(gain) on disposal or divestiture; change in contingent
consideration; and, in applicable periods, certain other income and
expense items, such as gain on debt extinguishment; acquisition,
integration and divestiture costs (benefit); restructuring and
reduction of force; impairment of goodwill and intangible assets
and income tax benefit. We define Adjusted Net Loss per share as
Adjusted Net Loss 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 MQUs as targetable customers that have made a
transaction using their account with an FI Partner or non-FI
Partner in a given month, excluding pilot supply during the ramp up
period, and whose transaction data was shared with Cardlytics. We
then calculate a monthly average of these MQUs for the periods
presented. We believe that the number of MQUs is an indicator of
the Cardlytics platform's ability to drive engagement and is
reflective of the consumer base and insights that we offer to
marketers. As of January 1, 2025, we will no longer report
Cardlytics Monthly Active Users given we do not receive equivalent
user data from our newer bank partners. We define ACPU as the
Cardlytics platform Adjusted Contribution generated in the
applicable period, divided by Cardlytics average MQUs in the
applicable period. We believe that Adjusted Contribution is the
most relevant metric as it reflects the value Cardlytics keeps
after subtracting out rewards, Partner Share and other third-party
costs. We believe that ACPU measures the Cardlytics platform's
efficiency in converting marketer budgets into the value generated
by customer engagement. Beginning on March 31, 2025, we will no
longer report Cardlytics Average Revenue per User.
CARDLYTICS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(Amounts in thousands, except
par value amounts)
March 31, 2025
December 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
52,046
$
65,594
Accounts receivable and contract assets,
net
96,094
103,252
Other receivables
3,358
3,801
Prepaid expenses and other assets
5,331
5,336
Total current assets
156,829
177,983
Long-term assets:
Property and equipment, net
2,466
2,596
Right-of-use assets under operating
leases, net
5,062
6,341
Intangible assets, net
9,916
11,371
Goodwill
159,429
159,429
Capitalized software development costs,
net
33,867
33,341
Other long-term assets, net
1,504
1,650
Total assets
$
369,073
$
392,711
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
4,445
$
3,689
Accrued liabilities:
Accrued compensation
6,442
5,494
Accrued expenses
8,378
7,175
Partner Share liability
28,759
32,479
Consumer Incentive liability
31,800
45,513
Short-term debt
45,936
45,863
Deferred revenue
2,608
2,154
Current operating lease liabilities
1,658
2,025
Current contingent consideration
1,825
4,563
Total current liabilities
131,851
148,955
Long-term liabilities:
Convertible senior notes, net
168,009
167,729
Long-term operating lease liabilities
5,123
6,034
Total liabilities
$
304,983
$
322,718
Stockholders’ equity:
Common stock, $0.0001 par value—100,000
shares authorized, 52,175 and 51,257 shares issued and outstanding
as of March 31, 2025 and December 31, 2024, respectively
$
10
$
10
Additional paid-in capital
1,376,692
1,366,958
Accumulated other comprehensive income
1,246
3,601
Accumulated deficit
(1,313,858
)
(1,300,576
)
Total stockholders’ equity
64,090
69,993
Total liabilities and stockholders’
equity
$
369,073
$
392,711
CARDLYTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands, except
per share amounts)
Three Months Ended
March 31,
2025
2024
Revenue
$
61,898
$
67,608
Costs and expenses:
Partner Share and other third-party
costs
29,450
30,543
Delivery costs
7,288
6,173
Sales and marketing expense
12,754
14,118
Research and development expense
11,706
13,048
General and administrative expense
13,778
14,485
Change in contingent consideration
60
5,817
Loss (gain) on disposal or divestiture
(5,350
)
—
Depreciation and amortization expense
6,291
6,250
Total costs and expenses
75,977
90,434
Operating Loss
(14,079
)
(22,826
)
Other income (expense):
Interest expense, net
(1,830
)
(819
)
Foreign currency gain (loss)
2,627
(630
)
Total other income (expense)
797
(1,449
)
Loss before income taxes
(13,282
)
(24,275
)
Net Loss
$
(13,282
)
$
(24,275
)
Net Loss per share, basic and diluted
$
(0.26
)
$
(0.56
)
Weighted-average common shares
outstanding, basic and diluted
51,863
43,248
CARDLYTICS, INC.
STOCK-BASED COMPENSATION
EXPENSE (UNAUDITED)
(Amounts in thousands)
Three Months Ended
March 31,
2025
2024
Delivery costs
$
537
$
643
Sales and marketing expense
2,078
3,141
Research and development expense
2,774
3,950
General and administrative expense
3,305
3,251
Total stock-based compensation expense
$
8,694
$
10,985
CARDLYTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
Three Months Ended
March 31,
2025
2024
Operating activities
Net Loss
$
(13,282
)
$
(24,275
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Credit loss expense
643
1,570
Depreciation and amortization
6,291
6,250
Amortization of financing costs charged to
interest expense
405
445
Amortization of right-of-use assets
632
549
Loss (gain) on disposal or divestiture
(5,350
)
—
Stock-based compensation expense
8,694
10,985
Change in contingent consideration
60
5,817
Other non-cash (income) expense, net
(2,620
)
667
Change in operating assets and
liabilities:
Accounts receivable
7,536
13,323
Prepaid expenses and other assets
(56
)
(3,450
)
Accounts payable
551
125
Other accrued expenses
1,895
(7,634
)
Partner Share liability
(3,860
)
(13,291
)
Consumer Incentive liability
(8,245
)
(8,698
)
Net cash used in operating activities
(6,706
)
(17,617
)
Investing activities
Acquisition of property and equipment
(119
)
(651
)
Capitalized software development costs
(3,984
)
(4,096
)
Business divestiture
200
—
Net cash used in investing activities
(3,903
)
(4,747
)
Financing activities
Settlement of contingent consideration
(3,000
)
(20,074
)
Proceeds from issuance of common stock
—
48,634
Debt issuance costs
(34
)
(239
)
Net cash (used in) provided by financing
activities
(3,034
)
28,321
Effect of exchange rates on cash and cash
equivalents
95
(21
)
Net (decrease) increase in cash and cash
equivalents
(13,548
)
5,936
Cash and cash equivalents — Beginning of
period
65,594
91,830
Cash and cash equivalents — End of
period
$
52,046
$
97,766
CARDLYTICS, INC.
RECONCILIATION OF GAAP REVENUE
TO BILLINGS (UNAUDITED)
(Amounts in thousands)
Three Months Ended
March 31,
2025
2024
Consolidated
Revenue
$
61,898
$
67,608
Plus:
Consumer Incentives
35,681
37,608
Billings
$
97,579
$
105,216
Cardlytics platform
Revenue
$
56,435
$
62,233
Plus:
Consumer Incentives
35,681
37,608
Billings
$
92,116
$
99,841
Bridg platform
Revenue
$
5,463
$
5,375
Plus:
Consumer Incentives
—
—
Billings
$
5,463
$
5,375
CARDLYTICS, INC.
RECONCILIATION OF GAAP GROSS
PROFIT TO ADJUSTED CONTRIBUTION (UNAUDITED)
(Amounts in thousands)
Three Months Ended
March 31,
2025
2024
Revenue
$
61,898
$
67,608
Minus:
Partner Share and other third-party
costs
29,450
30,543
Delivery costs(1)
7,288
6,173
Gross Profit
25,160
30,892
Plus:
Delivery costs(1)
7,288
6,173
Adjusted Contribution
$
32,448
$
37,065
(1)
Stock-based compensation expense
recognized in consolidated delivery costs totaled $0.5 million and
$0.6 million during the three months ended March 31, 2025 and 2024,
respectively.
CARDLYTICS, INC.
RECONCILIATION OF GAAP NET
LOSS TO ADJUSTED EBITDA (UNAUDITED)
(Amounts in thousands)
Three Months Ended
March 31,
2025
2024
Net Loss
$
(13,282
)
$
(24,275
)
Plus:
Interest expense, net
1,830
819
Depreciation and amortization
6,291
6,250
Stock-based compensation expense
8,694
10,985
Foreign currency (gain) loss
(2,627
)
630
Loss (gain) on disposal or divestiture
(5,350
)
—
Change in contingent consideration
60
5,817
Adjusted EBITDA
$
(4,384
)
$
226
CARDLYTICS, INC.
RECONCILIATION OF GAAP NET
LOSS TO ADJUSTED NET LOSS
AND ADJUSTED NET LOSS PER
SHARE (UNAUDITED)
(Amounts in thousands, except
per share amounts)
Three Months Ended
March 31,
2025
2024
Net Loss
$
(13,282
)
$
(24,275
)
Plus:
Stock-based compensation expense
8,694
10,985
Foreign currency (gain) loss
(2,627
)
630
Amortization of acquired intangibles
1,455
2,789
Loss (gain) on disposal or divestiture
(5,350
)
—
Change in contingent consideration
60
5,817
Adjusted Net Loss
$
(11,050
)
$
(4,054
)
Weighted-average number of shares of
common stock used in computing Adjusted Net Loss per share:
Weighted-average common shares
outstanding, diluted
51,863
43,248
Adjusted Net Loss per share, diluted
$
(0.21
)
$
(0.09
)
CARDLYTICS, INC.
RECONCILIATION OF NET CASH
USED IN OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)
(Amounts in thousands)
Three Months Ended
March 31,
2025
2024
Net cash used in operating activities
$
(6,706
)
$
(17,617
)
Plus:
Acquisition of property and equipment
(119
)
(651
)
Capitalized software development costs
(3,984
)
(4,096
)
Free Cash Flow
$
(10,809
)
$
(22,364
)
CARDLYTICS, INC.
RECONCILIATION OF FORECASTED
GAAP REVENUE TO BILLINGS (UNAUDITED)
(Amounts in thousands)
Q2 2025
Revenue
$61.0 - $67.0
Plus:
Consumer Incentives
$33.0 - $47.0
Billings
$100.0 - 108.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250507247318/en/
Public Relations: pr@cardlytics.com
Investor Relations: ir@cardlytics.com
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