• Cardlytics Announces First Quarter 2023 Financial Results

    Источник: Nasdaq GlobeNewswire / 04 май 2023 16:05:02   America/New_York

    ATLANTA, May 04, 2023 (GLOBE NEWSWIRE) -- Cardlytics Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the first quarter ended March 31, 2023. Supplemental information is available on the Investor Relations section of Cardlytics' website at http://ir.cardlytics.com/.

    "We are excited to move past the determination of the First Anniversary Earnout Payment." said Karim Temsamani, Chief Executive Officer. "As I have said in prior quarters, our success hinges on our ability to execute with a disciplined approach. It also hinges on our teams being laser focused on supporting our product initiatives and the needs of our partners. We are not stopping in our journey to create the best possible version of Cardlytics."

    "While the economy is still uncertain, I am confident there is tremendous opportunity in front of Cardlytics," said Andy Christiansen, Chief Financial Officer." There is more work to be done, but I know the current team is in control of the business and correctly prioritizing our strategic goals. Our renewed focus on product leadership and partnership is positioning Cardlytics for a bright future, and our cost-discipline and responsible investments will allow my successor to hit the ground running."

    First Quarter 2023 Financial Results

    • Revenue was $64.3 million, a decrease of (5)% year-over-year, compared to $67.9 million in the first quarter of 2022.
    • Billings, a non-GAAP metric, was $95.6 million, a decrease of (3)% year-over-year, compared to $98.2 million in the first quarter of 2022.
    • Gross profit was $24.5 million, a decrease of (7)% year-over-year, compared to $26.2 million in the first quarter of 2022.
    • Adjusted contribution, a non-GAAP metric, was $30.9 million, a decrease of (6)% year-over-year, compared to $32.8 million in the first quarter of 2022.
    • Net income attributable to common stockholders was $13.6 million, or $0.40 per diluted share, based on 36.7 million fully diluted weighted-average common shares, compared to a net income attributable to common stockholders of $33.0 million, or $0.91 per diluted share, based on 37.2 million fully diluted weighted-average common shares in the first quarter of 2022.
    • Non-GAAP net loss was $(9.2) million, or $(0.25) per diluted share, based on 36.7 million fully diluted weighted-average common shares, compared to non-GAAP net loss of $(14.2) million, or $(0.38) per diluted share, based on 37.2 million fully diluted weighted-average common shares in the first quarter of 2022.
    • Adjusted EBITDA, a non-GAAP metric, was a loss of $(6.1) million compared to a loss of $(10.5) million in the first quarter of 2022.

    Key Metrics

    • Cardlytics MAUs were 188.8 million, an increase of 6% year-over-year, compared to 178.5 million in the first quarter of 2022.
    • Cardlytics ARPU was $0.34 and $0.36 in the first quarter of 2023 and 2022, respectively.
    • Bridg ARR was $21.8 million in the first quarter of 2023.

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

    Second Quarter 2023 Financial Expectations

    Cardlytics anticipates billings, revenue, adjusted contribution and adjusted EBITDA to be in the following ranges (in millions):

     Q2 2023 Guidance
    Billings(1)$98.0 - $109.0
    Revenue$65.0 - $74.0
    Adjusted contribution(2)$32.0 - 38.0
    Adjusted EBITDA(2)($10.0) - ($6.0)

    (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 2023 financial results during a teleconference today, May 4, 2023, at 5:00 PM ET / 2:00 PM PT. A live dial-in will be available after registering at http://ir.cardlytics.com/. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on May 11, 2023 on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website.

    About Cardlytics

    Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Menlo Park, New York, Los Angeles, 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, our financial guidance for the second quarter of 2023, future growth and achievement of long-range goals. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control.

    Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: risks related to unfavorable conditions in the global economy and the industries that we serve; risks related to the fact that our quarterly operating results have fluctuated and may continue to vary from period to period; our ability to sustain our revenue growth and billings; risks related to the integration of Dosh, Bridg and Entertainment with our company; potential payments under the Merger Agreement with Bridg; risks related to our substantial dependence on our Cardlytics platform; risks related to our substantial dependence on JPMorgan Chase Bank, National Association (“Chase”), Bank of America, National Association ("Bank of America"), Wells Fargo Bank, National Association (“Wells Fargo”) and a limited number of other financial institution (“FI”) partners; risks related to our ability to maintain relationships with Chase, Wells Fargo and Bank of America; the amount and timing of budgets by marketers, which are affected by budget cycles, economic conditions and other factors, including the impact of the COVID-19 pandemic; our ability to generate sufficient revenue to offset contractual commitments to FIs; our ability to attract new partners, including FI partners, and maintain relationships with bank processors and digital banking providers; our ability to maintain relationships with marketers; our ability to 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 4, 2023 and in subsequent periodic reports that we file with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. 

    The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

    Non-GAAP Measures and Other Performance Metrics

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

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

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

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

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



    CARDLYTICS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (Amounts in thousands, except par value amounts)
     
     March 31, 2023 December 31, 2022
    Assets   
    Current assets:   
    Cash and cash equivalents$139,194  $121,905 
    Restricted cash 82   80 
    Accounts receivable and contract assets, net 93,707   115,609 
    Other receivables 5,143   4,470 
    Prepaid expenses and other assets 8,261   7,978 
    Total current assets 246,387   250,042 
    Long-term assets:   
    Property and equipment, net 4,755   5,916 
    Right-of-use assets under operating leases, net 7,295   6,571 
    Intangible assets, net 50,006   53,475 
    Goodwill 352,721   352,721 
    Capitalized software development costs, net 20,811   19,925 
    Other long-term assets, net 2,621   2,586 
    Total assets$684,596  $691,236 
    Liabilities and stockholders' equity   
    Current liabilities:   
    Accounts payable$2,073  $3,765 
    Accrued liabilities:   
    Accrued compensation 7,457   10,486 
    Accrued expenses 21,990   21,335 
    Partner Share liability 38,950   48,593 
    Consumer Incentive liability 43,354   53,983 
    Deferred revenue 2,769   1,751 
    Current operating lease liabilities 4,713   4,910 
    Current contingent consideration 69,537   104,121 
    Total current liabilities 190,843   248,944 
    Long-term liabilities:   
    Convertible senior notes, net 226,407   226,047 
    Deferred liabilities 93   334 
    Long-term operating lease liabilities 4,933   4,306 
    Long-term debt 30,000   — 
    Total liabilities 452,276   479,631 
    Stockholders’ equity:   
    Common stock, $0.0001 par value—100,000 shares authorized and 33,671 and 33,477 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively. 9   9 
    Additional paid-in capital 1,190,949   1,182,568 
    Accumulated other comprehensive income 4,324   5,598 
    Accumulated deficit (962,962)  (976,570)
    Total stockholders’ equity 232,320   211,605 
    Total liabilities and stockholders’ equity$684,596  $691,236 



    CARDLYTICS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    (Amounts in thousands, except per share amounts)
     
     Three Months Ended
    March 31,
      2023   2022 
    Revenue$64,331  $67,928 
    Costs and expenses:   
    Partner Share and other third-party costs 33,384   35,153 
    Delivery costs 6,424   6,533 
    Sales and marketing expense 13,948   17,648 
    Research and development expense 11,564   12,291 
    General and administration expense 13,070   20,425 
    Acquisition and integration cost (benefit) 1,723   (4,599)
    Change in fair value of contingent consideration (34,584)  (65,050)
    Depreciation and amortization expense 6,575   9,871 
    Total costs and expenses 52,104   32,272 
    Operating income (loss) 12,227   35,656 
    Other expense (income):   
    Interest expense, net (8)  (947)
    Foreign currency gain (loss) 1,389   (1,671)
    Total other expense (income) 1,381   (2,618)
    Income before income taxes 13,608   33,038 
    Income tax benefit —   — 
    Net income 13,608   33,038 
    Net income attributable to common stockholders$13,608  $33,038 
    Net income per share attributable to common stockholders, basic$0.41  $0.98 
    Net income per share attributable to common stockholders, diluted$0.40  $0.91 
    Weighted-average common shares outstanding, basic 33,595   33,741 
    Weighted-average common shares outstanding, diluted 36,727   37,185 



    CARDLYTICS, INC.
    STOCK-BASED COMPENSATION EXPENSE (UNAUDITED)
    (Amounts in thousands)
     
     Three Months Ended
    March 31,
      2023   2022 
    Delivery costs$568  $582 
    Sales and marketing 3,053   3,704 
    Research and development 4,085   3,204 
    General and administration 262   6,095 
    Total stock-based compensation$7,968  $13,585 



    CARDLYTICS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
    (Amounts in thousands)
     
     Three Months Ended
    March 31,
      2023   2022 
    Operating activities   
    Net income$13,608  $33,038 
    Adjustments to reconcile net income to net cash used in operating activities:   
    Credit (gain) loss expense (246)  346 
    Depreciation and amortization 6,575   9,871 
    Amortization of financing costs charged to interest expense 407   402 
    Amortization of right-of-use assets 1,235   1,516 
    Stock-based compensation expense 7,968   13,585 
    Change in fair value of contingent consideration (34,584)  (65,050)
    Other non-cash (income) expense, net (905)  1,574 
    Change in operating assets and liabilities:   
    Accounts receivable 21,405   15,279 
    Prepaid expenses and other assets (369)  (725)
    Accounts payable (1,691)  (855)
    Other accrued expenses (3,136)  (11,569)
    Partner Share liability (9,701)  (9,600)
    Consumer Incentive liability (10,630)  (7,503)
    Net cash used in operating activities (10,064)  (19,691)
    Investing activities   
    Acquisition of property and equipment (360)  (397)
    Acquisition of patents —   (49)
    Capitalized software development costs (2,442)  (2,314)
    Business acquisitions, net of cash acquired —   (2,274)
    Net cash used in investing activities (2,802)  (5,034)
    Financing activities   
    Proceeds from issuance of debt 30,000   — 
    Principal payments of debt (4)  (13)
    Proceeds from issuance of common stock —   195 
    Deferred debt costs (15)  — 
    Net cash provided for by financing activities 29,981   182 
    Effect of exchange rates on cash, cash equivalents and restricted cash 176   (634)
    Net increase (decrease) in cash, cash equivalents and restricted cash 17,291   (25,177)
    Cash, cash equivalents, and restricted cash — Beginning of period 121,985   233,562 
    Cash, cash equivalents, and restricted cash — End of period$139,276  $208,385 


    CARDLYTICS, INC.
    SUMMARY OF GAAP AND NON-GAAP RESULTS (UNAUDITED)
    (Dollars in thousands)
     
     Three Months Ended
    March 31,    		 Change
      2023   2022  $ %
    Billings(1)$95,626  $98,225  $(2,599)  (3)%
    Consumer Incentives 31,295   30,297   998   3 
    Revenue 64,331   67,928   (3,597)  (5)
    Partner Share and other third-party costs(1) 33,384   35,153   (1,769)  (5)
    Adjusted contribution(1) 30,947   32,775   (1,828)  (6)
    Delivery costs 6,424   6,533   (109)  (2)
    Gross profit$24,523  $26,242  $(1,719)  (7)%
    Net income$13,608  $33,038  $(19,430)  59%
    Adjusted EBITDA(1)$(6,091) $(10,537) $4,446   42%

    (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 Income to Adjusted EBITDA."

     


    CARDLYTICS, INC.
    RECONCILIATION OF GAAP REVENUE TO BILLINGS (UNAUDITED)
    (Amounts in thousands)
     
     Three Months Ended
    March 31, 2023    		 Three Months Ended
    March 31, 2022
     Cardlytics Platform Bridg Platform Consolidated Cardlytics Platform Bridg Platform Consolidated
    Revenue$59,030  $5,301  $64,331  $63,983  $3,945  $67,928 
    Plus:           
    Consumer Incentives 31,295   —   31,295   30,297   —   30,297 
    Billings$90,325  $5,301  $95,626  $94,280  $3,945  $98,225 



    CARDLYTICS, INC.
    RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED CONTRIBUTION (UNAUDITED)
    (Amounts in thousands)
     
     Three Months Ended
    March 31, 2023    		 Three Months Ended
    March 31, 2022
     Cardlytics Platform Bridg Platform Consolidated Cardlytics Platform Bridg Platform Consolidated
    Revenue$59,030  $5,301  $64,331  $63,983  $3,945  $67,928 
    Minus:           
    Partner Share and other third-party costs 33,175   209   33,384   35,027   126   35,153 
    Delivery costs(1) 4,693   1,731   6,424   4,907   1,626   6,533 
    Gross profit 21,162   3,361   24,523   24,049   2,193   26,242 
    Plus:           
    Delivery costs(1) 4,693   1,731   6,424   4,907   1,626   6,533 
    Adjusted contribution$25,855  $5,092  $30,947  $28,956  $3,819  $32,775 

    (1)  Stock-based compensation expense recognized in consolidated delivery costs totaled $0.6 million and $0.6 million for the three months ended March 31, 2023 and 2022, respectively.



    CARDLYTICS, INC.
    RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA (UNAUDITED)
    (Amounts in thousands)
     
     Three Months Ended
    March 31,
      2023   2022 
    Net income$13,608  $33,038 
    Plus:   
    Income tax benefit —   — 
    Interest expense, net 8   947 
    Depreciation and amortization 6,575   9,871 
    Stock-based compensation expense 7,968   13,585 
    Foreign currency (gain) loss (1,389)  1,671 
    Acquisition and integration cost (benefit) 1,723   (4,599)
    Change in fair value of contingent consideration (34,584)  (65,050)
    Adjusted EBITDA$(6,091) $(10,537)



    CARDLYTICS, INC.
    RECONCILIATION OF ADJUSTED CONTRIBUTION TO ADJUSTED EBITDA (UNAUDITED)
    (Amounts in thousands)
        
     Three Months Ended
    March 31, 2023    		 Three Months Ended
    March 31, 2022
     Cardlytics Platform Bridg Platform Consolidated Cardlytics Platform Bridg Platform Consolidated
    Adjusted Contribution$25,855  $5,092  $30,947  $28,956  $3,819  $32,775 
    Minus:           
    Delivery costs 4,693   1,731   6,424   4,907   1,626   6,533 
    Sales and marketing expense 11,547   2,401   13,948   16,384   1,264   17,648 
    Research and development expense 10,327   1,237   11,564   11,313   978   12,291 
    General and administration expense 13,330   (260)  13,070   19,391   1,034   20,425 
    Stock-based compensation expense (8,103)  135   (7,968)  (12,382)  (1,203)  (13,585)
    Adjusted EBITDA$(5,939) $(152) $(6,091) $(10,657) $120  $(10,537)



    CARDLYTICS, INC.
    RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET LOSS
    AND NON-GAAP NET LOSS PER SHARE (UNAUDITED)
    (Amounts in thousands, except per share amounts)
      
     Three Months Ended
    March 31,
      2023   2022 
    Net income$13,608  $33,038 
    Plus:   
    Stock-based compensation expense 7,968   13,585 
    Foreign currency (gain) loss (1,389)  1,671 
    Acquisition and integration cost (benefit) 1,723   (4,599)
    Amortization of acquired intangibles 3,458   7,145 
    Change in fair value of contingent consideration (34,584)  (65,050)
    Non-GAAP net loss$(9,216) $(14,210)
    Weighted-average number of shares of common stock used in computing non-GAAP net loss per share:   
    Non-GAAP weighted-average common shares outstanding, diluted 36,727   37,185 
    Non-GAAP net loss per share attributable to common stockholders, diluted$(0.25) $(0.38)



    CARDLYTICS, INC.
    RECONCILIATION OF FORECASTED GAAP REVENUE TO BILLINGS (UNAUDITED)
    (Amounts in thousands)
      
      
    Revenue$65.0 - $74.0
    Plus: 
    Consumer Incentives$33.0 - $35.0
    Billings$98.0 - $109.0


    Contacts:

    Public Relations:
    Robert Robinson
    pr@cardlytics.com

    Investor Relations:
    Robert Robinson
    ir@cardlytics.com


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