Cardlytics Announces First Quarter 2020 Financial Results

Atlanta, GA – May 11, 2020 – Cardlytics, Inc. (NASDAQ: CDLX), a purchase intelligence platform that makes marketing more relevant and measurable, today announced financial results for the first quarter ended March 31, 2020. Supplemental information is available on the Investor Relations section of the Cardlytics' website at http://ir.cardlytics.com/.

“We delivered solid first quarter results, with billings, revenue and adjusted contribution in the upper half of our prior guidance,” said Scott Grimes, CEO & Co-Founder of Cardlytics. “Our team remains positive about the future and, despite the difficult nature of the COVID-19 crisis for our advertising partners, we have seen encouraging signs in our business.”

“Our key long term priorities of increasing the number of marketers working with us, bringing our solution to new industries, evolving the Cardlytics platform, and continuing to demonstrate operating leverage in our business still remain,” said Lynne Laube, COO & Co-Founder of Cardlytics. “With our clients facing severe swings in spend - both up and down - the value of our purchase intelligence and our ability to reach the right consumers with cash-back rewards is more important than it has ever been.”

First Quarter 2020 Financial Results

• Revenue was $45.5 million, an increase of 26% year-over-year, compared to $36.0 million in the first quarter of 2019.
• Billings, a non-GAAP metric, was $67.8 million, an increase of 16% year-over-year, compared to $58.6 million in the first quarter of 2019.
• Gross profit was $16.0 million, an increase of 16% year-over-year, compared to $13.7 million in the first quarter of 2019.
• Adjusted contribution, a non-GAAP metric, was $20.4 million, an increase of 16% year-over-year, compared to $17.6 million in the first quarter of 2019.
• Net loss attributable to common stockholders was $(13.5) million, or $(0.51) per diluted share, based on 26.7 million weighted-average common shares outstanding, compared to a net loss attributable to common stockholders of $(6.3) million, or $(0.28) per diluted share, based on 22.5 million weighted-average common shares outstanding in the first quarter of 2019.
• Non-GAAP net loss was $(7.0) million, or $(0.26) per diluted share, based on 26.7 million weighted-average common shares outstanding, compared to a non-GAAP net loss of $(5.1) million, or $(0.23) per diluted share, based on 22.5 million weighted-average common shares outstanding in the first quarter of 2019.
• Adjusted EBITDA, a non-GAAP metric, was a loss of $(4.0) million compared to a loss of $(3.2) million in the first quarter of 2019.

“We’re comfortable that our current capitalization and liquidity will provide us the financial flexibility to weather the economic downturn triggered by COVID-19 and continue with some prudent, strategic investments,” said Andy Christiansen, CFO of Cardlytics. “While there’s a lot of near-term uncertainty, we’re focused on achieving our long-term operational and financial goals and remain optimistic about seizing the opportunities in front of us.”

Key Metrics

• FI MAUs were 140.8 million, an increase of 30%, compared to 108.5 million in the first quarter of 2019.
• ARPU was $0.32, a decrease of (3)%, compared to $0.33 in the first quarter of 2019.

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

Earnings Teleconference Information

Cardlytics will discuss its first quarter 2020 financial results during a teleconference today, May 11, 2020, at 5:00 PM ET / 2:00 PM PT. The conference call can be accessed at (866) 385-4179 (domestic) or (210) 874-7775 (international), conference ID# 5355829. A replay of the conference call will be available through 8:00 PM ET / 5:00 PM PT on May 18, 2020 at (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay passcode is 5355829. The call will also be broadcast simultaneously 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) uses purchase intelligence to make marketing more relevant and measurable. 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 London, New York, San Francisco and Visakhapatnam. Learn more at www.cardlytics.com.