Cardlytics Announces Fourth Quarter and Fiscal Year 2019 Financial Results

Atlanta, GA – March 3, 2020 – Cardlytics, Inc., (NASDAQ: CDLX), a purchase intelligence platform that makes marketing more relevant and measurable, today announced financial results for the fourth quarter and fiscal year ended December 31, 2019. Supplemental information is available on the Investor Relations section of the Cardlytics’ website at http://ir.cardlytics.com/.

“We experienced strong growth in 2019, as illustrated by our excellent fourth quarter results that exceeded our prior guidance,” said Scott Grimes, CEO & Co-Founder of Cardlytics. “Our team’s efforts, coupled with our investments in the platform, will support the opportunity to deliver sustained growth for years to come.”

“We have seen strong early engagement with our program at Wells Fargo, which was launched during the fourth quarter and will continue to roll out through the first half of 2020,” said Lynne Laube, COO & Co-Founder of Cardlytics. “Our 2019 results reaffirm our belief that we will see increased logos and spend in 2020 as marketers fully understand the impact we can have on their business.”

Fourth Quarter 2019 Financial Results

•         Total revenue was $69.3 million, an increase of 44.9% year-over-year, compared to $47.8 million in the fourth quarter of 2018.

•         Net income attributable to common stockholders was $3.4 million, or $0.12 per diluted share, based on 26.1 million weighted-average common shares outstanding, compared to a net loss attributable to common stockholders of $(11.6) million, or $(0.53) per diluted share, based on 21.8 million weighted-average common shares outstanding in the fourth quarter of 2018.

•         Non-GAAP net income was $5.2 million, or $0.18 per diluted share, based on 28.1 million non-GAAP weighted-average common shares outstanding, compared to a non-GAAP net loss of $(1.3) million, or $(0.06) per diluted share, based on 21.8 million non-GAAP weighted-average common shares outstanding in the fourth quarter of 2018.

•         Billings, a non-GAAP metric, was $100.9 million, an increase of 43.7% year-over-year, compared to $70.2 million in the fourth quarter of 2018.

•         Adjusted contribution, a non-GAAP metric, was $31.0 million, an increase of 40.4% year-over-year, compared to $22.1 million in the fourth quarter of 2018.

•         Adjusted EBITDA, a non-GAAP metric, was a gain of $6.9 million, an increase of $6.6 million year-over-year, compared to a gain of $0.3 million in the fourth quarter of 2018.

Fiscal Year 2019 Financial Results

•         Total revenue was $210.4 million, an increase of 39.6%, compared to $150.7 million in 2018.

•         Net loss attributable to common stockholders was $(17.1) million, or $(0.72) per diluted share, based on 23.7 million weighted-average common shares outstanding, compared to a net loss attributable to common stockholders of $(53.2) million, or $(2.79) per diluted share, based on 19.1 million weighted-average common shares outstanding in 2018.

•         Non-GAAP net income was $(1.9) million, or $(0.08) per diluted share, based on 23.7 million non-GAAP weighted-average common shares outstanding, compared to a loss of $(14.8) million, or $(0.73) per diluted share, based on 20.2 million non-GAAP weighted-average common shares outstanding in 2018.

•         Billings, a non-GAAP metric, was $316.1 million, an increase of 44.3%, compared to $219.0 million in 2018.

•         Adjusted contribution, a non-GAAP metric, was $95.2 million, an increase of 37.1%, compared to $69.5 million in 2018.

•         Adjusted EBITDA, a non-GAAP metric, was a gain of $6.1 million, an increase of $12.6 million, compared to a loss of $(6.6) million in 2018.

“We are pleased with the incremental budget expansions that contributed to the acceleration we saw in the fourth quarter and back half of the year,” said David Evans, CFO of Cardlytics. “We are confident that strong execution against our key growth strategies will enable us to reach our long-term operational and financial goals.”

Key Metrics

•         Average FI MAUs in the quarter were 133.4 million, an increase of 60.3%, compared to 83.2 million in the fourth quarter of 2018. For full year 2019, average FI MAUs were 122.6 million, an increase of 88.6%, compared to 65.0 million in 2018.

•         ARPU in the quarter was $0.52, a decrease of (8.8)%, compared to $0.57 in the fourth quarter of 2018. For full year 2019, ARPU was $1.72, an decrease of (25.1)%, compared to $2.30 in 2018.

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

First Quarter 2020 Financial Expectations

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

 

Q1 2020 Guidance

Billings(1)

 $64.0 – $69.0

Revenue

 $43.5 – $46.5

Adjusted contribution(2)

 $19.0 – $20.5

Adjusted EBITDA(3)

 ($4.5) – ($3.0)

(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 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)     A reconciliation of adjusted EBITDA to GAAP 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 fourth quarter and fiscal year 2019 financial results during a teleconference today, March 3, 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# 8886276. A replay of the conference call will be available through 8:00 PM ET / 5:00 PM PT on March 17, 2020 at (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay passcode is 8886276. 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.

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 first quarter of 2020, future growth, the roll-out of Wells Fargo, growth in marketers and marketer spend, 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: our financial performance, including our revenue, margins, costs, expenditures, growth rates and operating expenses, and our ability to sustain revenue growth, generate positive cash flow and become profitable; our substantial dependence on our Cardlytics Direct product; 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 institutions (“FIs”) partners; our ability to successfully implement Cardlytics Direct for Wells Fargo customers and 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 FIs; our ability to attract new 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 FIs and retailers, and develop and launch new services and features; and other risks detailed in the “Risk Factors” section of our Form 10-K filed with the Securities and Exchange Commission on March 3, 2020 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, adjusted FI Share and other third party costs, non-GAAP net income (loss) and non-GAAP income (loss) per share as well as certain other performance metrics, such as FI monthly active users (“FI 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 FI Share and other third party costs, non-GAAP net income (loss) and non-GAAP net income (loss) per share as non-GAAP financial measures in this press release. Billings represents the gross amount billed to marketers for advertising campaigns in order to generate revenue. Billings is reported gross of both Consumer Incentives and FI Share. Our GAAP revenue is recognized net of Consumer Incentives and gross of FI Share. We define adjusted contribution as a measures by which revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our FI partners. Adjusted contribution demonstrates how incremental marketing spend on our platform 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 FI Share and other third-party costs exclusive of a non-cash equity expense and amortization of deferred FI implementation costs, which are non-cash 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. We define adjusted EBITDA as our net loss before income tax benefit; interest expense (income), net; depreciation and amortization expense; stock-based compensation expense; foreign currency (gain) loss; amortization of deferred FI implementation costs; costs associated with financing events; loss on extinguishment of debt; change in fair value of warrant liabilities, net; and a non-cash equity expense recognized in FI Share. We define non-GAAP net loss (income) as our net loss (income) before stock-based compensation expense; change in fair value of warrant liabilities; change in fair value of convertible promissory notes; foreign currency loss (gain); loss on extinguishment of debt; costs associated with financing events; and non-cash equity expense recognized in FI Share. Notably, any impacts related to minimum FI Share commitments in connection with agreements with certain FI partners are not added back to net loss in order to calculate adjusted EBITDA. We define non-GAAP net loss per share as non-GAAP net loss divided by non-GAAP weighted-average common shares outstanding, diluted, which includes our GAAP weighted-average common shares outstanding, diluted, and our weighted-average preferred shares outstanding, assuming conversion.

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 FI MAUs as targetable customers or accounts of our FI partners that logged in and visited the online or mobile banking applications of, or opened an email containing our offers from, our FI partners during a monthly period. We then calculate a monthly average of these FI MAUs for the periods presented. We define ARPU as the total Cardlytics Direct revenue generated in the applicable period calculated in accordance with GAAP, divided by the average number of FI MAUs in the applicable period.


CARDLYTICS, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)

 

December 31,

 

2019

 

2018

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

104,458

 

 

$

39,623

 

Restricted cash

129

 

 

20,247

 

Accounts receivable, net

81,452

 

 

58,125

 

Other receivables

3,908

 

 

2,417

 

Prepaid expenses and other assets

5,783

 

 

3,956

 

Total current assets

195,730

 

 

124,368

 

Long-term assets:

 

 

 

Property and equipment, net

14,290

 

 

10,230

 

Intangible assets, net

389

 

 

370

 

Capitalized software development costs, net

3,815

 

 

1,625

 

Deferred FI implementation costs, net

8,383

 

 

15,877

 

Other long-term assets, net

1,706

 

 

1,293

 

Total assets

$

224,313

 

 

$

153,763

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,229

 

 

$

2,099

 

Accrued liabilities:

 

 

 

Accrued compensation

8,186

 

 

5,936

 

Accrued expenses

6,018

 

 

4,388

 

FI Share liability

41,956

 

 

27,656

 

Consumer Incentive liability

19,861

 

 

11,476

 

Deferred revenue

1,127

 

 

346

 

Current portion of long-term debt

24

 

 

21

 

Total current liabilities

78,401

 

 

51,922

 

Long-term liabilities:

 

 

 

Deferred liabilities

2,632

 

 

3,173

 

Long-term debt, net of current portion

13

 

 

46,693

 

Total liabilities

81,046

 

 

101,788

 

Stockholders’ equity:

 

 

 

Common stock

8

 

 

7

 

Additional paid-in capital

480,578

 

 

371,463

 

Accumulated other comprehensive income

1,312

 

 

1,992

 

Accumulated deficit

(338,631

)

 

(321,487

)

Total stockholders’ equity

143,267

 

 

51,975

 

Total liabilities and stockholders’ equity

$

224,313

 

 

$

153,763

 


CARDLYTICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share amounts)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2019

 

2018

 

2019

 

2018

Revenue

$

69,293

 

 

$

47,819

 

 

$

210,430

 

 

$

150,684

 

Costs and expenses:

 

 

 

 

 

 

 

FI Share and other third-party costs

38,986

 

 

26,222

 

 

118,080

 

 

85,371

 

Delivery costs

3,207

 

 

3,123

 

 

12,893

 

 

10,632

 

Sales and marketing expense

12,370

 

 

13,963

 

 

43,828

 

 

41,878

 

Research and development expense

2,958

 

 

3,766

 

 

11,699

 

 

16,210

 

General and administration expense

9,162

 

 

10,742

 

 

36,720

 

 

34,228

 

Depreciation and amortization expense

1,354

 

 

811

 

 

4,535

 

 

3,282

 

Total costs and expenses

68,037

 

 

58,627

 

 

227,755

 

 

191,601

 

Operating income (loss)

1,256

 

 

(10,808

)

 

(17,325

)

 

(40,917

)

Non-operating income (expense):

 

 

 

 

 

 

 

Interest income (expense), net

312

 

 

(269

)

 

(548

)

 

(3,264

)

Change in fair value of warrant liabilities, net

 

 

 

 

 

 

(6,760

)

Other income (expense), net

1,859

 

 

(489

)

 

729

 

 

(2,101

)

Total non-operating income (expense)

2,171

 

 

(758

)

 

181

 

 

(12,125

)

Income (loss) before income taxes

3,427

 

 

(11,566

)

 

(17,144

)

 

(53,042

)

Income tax benefit

 

 

 

 

 

 

 

Net income (loss)

3,427

 

 

(11,566

)

 

(17,144

)

 

(53,042

)

Adjustments to the carrying value of redeemable convertible preferred stock

 

 

 

 

 

 

(157

)

Net income (loss) attributable to common stockholders

$

3,427

 

 

$

(11,566

)

 

$

(17,144

)

 

$

(53,199

)

Net income (loss) per share attributable to common stockholders, basic

$

0.13

 

 

$

(0.53

)

 

$

(0.72

)

 

$

(2.79

)

Net income (loss) per share attributable to common stockholders, diluted

$

0.12

 

 

$

(0.53

)

 

$

(0.72

)

 

$

(2.79

)

 

 CARDLYTICS, INC.
STOCK-BASED COMPENSATION EXPENSE
(Amounts in thousands)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2019

 

2018

 

2019

 

2018

Delivery costs

$

172

 

 

$

162

 

 

$

711

 

 

$

633

 

Sales and marketing expense

1,157

 

 

3,808

 

 

4,248

 

 

9,358

 

Research and development expense

415

 

 

946

 

 

1,619

 

 

4,087

 

General and administration expense

1,841

 

 

4,906

 

 

9,273

 

 

12,712

 

Total stock-based compensation expense

$

3,585

 

 

$

9,822

 

 

$

15,851

 

 

$

26,790

 

 

CARDLYTICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)

 

Year Ended December 31,

 

2019

 

2018

Operating activities

 

 

 

Net loss

$

(17,144

)

 

$

(53,042

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

4,535

 

 

3,282

 

Amortization of financing costs charged to interest expense

95

 

 

282

 

Accretion of debt discount and non-cash interest expense

 

 

2,326

 

Stock-based compensation expense

15,851

 

 

26,790

 

Change in the fair value of warrant liabilities, net

 

 

6,760

 

Other non-cash expense, net

631

 

 

4,771

 

Amortization and impairment of deferred FI implementation costs

2,869

 

 

1,618

 

Settlement of paid-in-kind interest

 

 

(8,353

)

Change in operating assets and liabilities:

 

 

 

Accounts receivable

(26,018

)

 

(9,426

)

Prepaid expenses and other assets

(2,224

)

 

(2,275

)

Deferred FI implementation costs

 

 

(9,250

)

Recovery of deferred FI implementation costs

4,625

 

 

5,380

 

Accounts payable

(601

)

 

911

 

Other accrued expenses

6,152

 

 

3,255

 

FI Share liability

14,301

 

 

3,742

 

Customer Incentive liability

8,385

 

 

4,234

 

Net cash provided by (used in) operating activities

11,457

 

 

(18,995

)

Investing activities

 

 

 

Acquisition of property and equipment

(8,277

)

 

(5,920

)

Acquisition of patents

(31

)

 

(23

)

Capitalized software development costs

(2,712

)

 

(1,399

)

Net cash used in investing activities

(11,020

)

 

(7,342

)

Financing activities

 

 

 

Proceeds from issuance of debt

 

 

47,435

 

Principal payments of debt

(46,698

)

 

(52,581

)

Proceeds from issuance of common stock

91,216

 

 

72,334

 

Equity issuance costs

(196

)

 

(1,949

)

Debt issuance costs

(143

)

 

(48

)

Net cash provided by financing activities

44,179

 

 

65,191

 

Effect of exchange rates on cash, cash equivalents and restricted cash

101

 

 

(246

)

Net increase in cash, cash equivalents and restricted cash

44,717

 

 

38,608

 

Cash, cash equivalents, and restricted cash — Beginning of period

59,870

 

 

21,262

 

Cash, cash equivalents, and restricted cash — End of period

$

104,587

 

 

$

59,870

 

 

CARDLYTICS, INC.
SUMMARY OF GAAP AND NON-GAAP RESULTS
(Dollars in thousands)

 

Three Months Ended December 31,

 

Change

 

Year Ended December 31,

 

Change

 

2019

 

2018

 

$

 

%

 

2019

 

2018

 

$

 

%

Billings(1)

$

100,935

 

 

$

70,216

 

 

$

30,719

 

 

44

%

 

$

316,053

 

 

$

218,980

 

 

$

97,073

 

 

44

%

Consumer Incentives

31,642

 

 

22,397

 

 

9,245

 

 

41

 

 

105,623

 

 

68,296

 

 

37,327

 

 

55

 

Revenue

69,293

 

 

47,819

 

 

21,474

 

 

45

 

 

210,430

 

 

150,684

 

 

59,746

 

 

40

 

Adjusted FI Share and other third-party costs(1)(2)(3)

38,290

 

 

25,740

 

 

12,550

 

 

49

 

 

115,211

 

 

81,234

 

 

33,977

 

 

42

 

Adjusted contribution(1)(3)

$

31,003

 

 

$

22,079

 

 

$

8,924

 

 

40

%

 

$

95,219

 

 

$

69,450

 

 

$

25,769

 

 

37

%

  • (1) Billings, adjusted FI share and other third-party costs and adjusted contribution 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” and “Reconciliation of GAAP Gross Profit to Adjusted Contribution.”
  • (2) Adjusted FI Share and other third-party costs excludes a non-cash equity expense included in FI Share and amortization of deferred FI implementation costs, as detailed below under the heading “Reconciliation of GAAP Gross Profit to Adjusted Contribution.”
  • (3) Adjusted FI Share and other third-party costs and adjusted contribution include the impact of a $0.8 million gain during 2018 related to the renewal of our agreement with an FI partner, which contains certain amendments that are retroactively applied as of January 1, 2018. 


CARDLYTICS, INC.
RECONCILIATION OF GAAP REVENUE TO BILLINGS
(Amounts in thousands)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2019

 

2018

 

2019

 

2018

Revenue

$

69,293

 

 

$

47,819

 

 

$

210,430

 

 

$

150,684

 

Plus:

 

 

 

 

 

 

 

Consumer Incentives

31,642

 

 

22,397

 

 

105,623

 

 

68,296

 

Billings

$

100,935

 

 

$

70,216

 

 

$

316,053

 

 

$

218,980

 

CARDLYTICS, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED CONTRIBUTION
(Amounts in thousands)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2019

 

2018

 

2019

 

2018

Revenue

$

69,293

 

 

$

47,819

 

 

$

210,430

 

 

$

150,684

 

Minus:

 

 

 

 

 

 

 

FI Share and other third-party costs(1)

38,986

 

 

26,222

 

 

118,080

 

 

85,371

 

Delivery costs(2)

3,207

 

 

3,123

 

 

12,893

 

 

10,632

 

Gross profit(1)

27,100

 

 

18,474

 

 

79,457

 

 

54,681

 

Plus:

 

 

 

 

 

 

 

Delivery costs(2)

3,207

 

 

3,123

 

 

12,893

 

 

10,632

 

Non-cash equity expense included in FI Share(3)

 

 

 

 

 

 

2,519

 

Amortization of deferred FI implementation costs(3)

696

 

 

482

 

 

2,869

 

 

1,618

 

Adjusted contribution(1)

$

31,003

 

 

$

22,079

 

 

$

95,219

 

 

$

69,450

 

  • (1) FI Share and other third-party costs, gross profit and adjusted contribution include the impact of a $0.8 million gain during 2018 related to the renewal of our agreement with an FI partner, which contains certain amendments that are retroactively applied as of January 1, 2018.
  • (2) Stock-based compensation expense recognized in delivery costs totaled $0.2 million during the three months ended December 31, 2018 and 2019, respectively. Stock-based compensation expense recognized in delivery costs totaled $0.6 million and $0.7 million during the twelve months ended December 31, 2018 and 2019, respectively.
  • (3) Non-cash equity expense included in FI Share and amortization of deferred FI implementation costs are excluded from adjusted FI Share and other third party costs as shown below (in thousands):

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2019

 

2018

 

2019

 

2018

FI Share and other third-party costs

$

38,986

 

 

$

26,222

 

 

$

118,080

 

 

$

85,371

 

Minus:

 

 

 

 

 

 

 

Non-cash equity expense included in FI Share

 

 

 

 

 

 

2,519

 

Amortization of deferred FI implementation costs

696

 

 

482

 

 

2,869

 

 

1,618

 

Adjusted FI Share and other third-party costs

$

38,290

 

 

$

25,740

 

 

$

115,211

 

 

$

81,234

 

 

CARDLYTICS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
(Amounts in thousands)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2019

 

2018

 

2019

 

2018

Net income (loss)(1)

$

3,427

 

 

$

(11,566

)

 

$

(17,144

)

 

$

(53,042

)

Plus:

 

 

 

 

 

 

 

Income tax benefit

 

 

 

 

 

 

 

Interest (income) expense net

(312

)

 

269

 

 

548

 

 

3,264

 

Depreciation and amortization

1,354

 

 

811

 

 

4,535

 

 

3,282

 

Stock-based compensation expense

3,585

 

 

9,822

 

 

15,851

 

 

26,790

 

Foreign currency (gain) loss

(1,859

)

 

490

 

 

(781

)

 

1,172

 

Amortization of deferred FI implementation costs

696

 

 

482

 

 

2,869

 

 

1,618

 

Loss on extinguishment of debt

 

 

 

 

51

 

 

924

 

Change in fair value of warrant liability

 

 

 

 

 

 

6,760

 

Non-cash equity expense included in FI Share

 

 

 

 

 

 

2,519

 

Costs associated with financing events

 

 

 

 

123

 

 

118

 

Adjusted EBITDA(1)

$

6,891

 

 

$

308

 

 

$

6,052

 

 

$

(6,595

)

  • (1) Net loss and adjusted EBITDA include the impact of a $0.8 million gain during 2018 related to the renewal of our agreement with an FI partner, which contains certain amendments that are retroactively applied as of January 1, 2018.

 

CARDLYTICS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) AND NON-GAAP NET INCOME (LOSS) PER SHARE
(Amounts in thousands except per share amounts)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2019

 

2018

 

2019

 

2018

Net income (loss)(1)

$

3,427

 

 

$

(11,566

)

 

$

(17,144

)

 

$

(53,042

)

Plus:

 

 

 

 

 

 

 

Stock-based compensation expense

3,585

 

 

9,822

 

 

15,851

 

 

26,790

 

Foreign currency (gain) loss

(1,859

)

 

490

 

 

(781

)

 

1,172

 

Loss on extinguishment of debt

 

 

 

 

51

 

 

924

 

Change in fair value of warrant liabilities

 

 

 

 

 

 

6,760

 

Non-cash equity expense included in FI Share

 

 

 

 

 

 

2,519

 

Costs associated with financing events

 

 

 

 

123

 

 

118

 

Non-GAAP net income (loss)(1)

5,153

 

 

(1,254

)

 

(1,900

)

 

(14,759

)

Weighted-average number of shares of common stock used in computing non-GAAP net loss per share:

 

 

 

 

 

 

 

GAAP weighted-average common shares outstanding, diluted

28,083

 

 

21,760

 

 

23,746

 

 

19,060

 

Weighted-average preferred shares, assuming conversion

 

 

 

 

 

 

1,108

 

Non-GAAP weighted-average common shares outstanding, diluted

28,083

 

 

21,760

 

 

23,746

 

 

20,168

 

Non-GAAP net income (loss) per share, diluted

$

0.18

 

 

$

(0.06

)

 

$

(0.08

)

 

$

(0.73

)

  • (1) Net income (loss) and non-GAAP net income (loss) include the impact of a $0.8 million gain during 2018 related to the renewal of our agreement with an FI partner, which contains certain amendments that are retroactively applied as of January 1, 2018.

 

CARDLYTICS, INC.
RECONCILIATION OF FORECASTED GAAP REVENUE TO BILLINGS
(Amounts in millions)

 

Q1 2020 Guidance

Revenue

 $43.5 – $46.5

Plus:

 

Consumer Incentives

$17.5 – $25.5

Billings

 $64.0 – $69.0