Cardlytics Announces Third Quarter 2024 Financial Results

GlobeNewswire Inc.

November 06, 2024 9:01PM GMT

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 EndedSeptember 30,

 

Nine Months EndedSeptember 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 EndedSeptember 30,

 

Nine Months EndedSeptember 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 EndedSeptember 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 EndedSeptember 30,

 

Nine Months EndedSeptember 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 EndedSeptember 30,

 

Nine Months EndedSeptember 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 EndedSeptember 30,

 

Nine Months EndedSeptember 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 EndedSeptember 30,

 

Nine Months EndedSeptember 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 EndedSeptember 30,

 

Nine Months EndedSeptember 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 EndedSeptember 30,

 

Nine Months EndedSeptember 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