• Total Billings: $116.3 million in Q4, an 11.2% decrease year-over-year.
• Revenue: $74.0 million in Q4, a 16% decrease year-over-year.
• Adjusted EBITDA: $6.4 million in Q4, down from $10.3 million in the previous year.
• Adjusted Contribution Margin: 55%, up 2.5 points year-over-year.
• Operating Cash Flow: Positive $3 million in Q4.
• Free Cash Flow: Negative $1.5 million in Q4, a sequential improvement of $2.4 million.
• Cash and Cash Equivalents: $65.6 million at the end of Q4.
• UK Revenue Growth: 27.2% increase in Q4, marking the fourth consecutive quarter of double-digit growth.
• Bridg Revenue: Declined 12.7% year-over-year in Q4.
• Consumer Incentives: Decreased by 1.2% to $42.3 million in Q4.
• MAUs: 167.3 million in Q4, a decrease of 0.4%.
• ARPU: $0.44, down 16.7% year-over-year.
• Q1 2025 Guidance: Billings between $91.5 million and $94.5 million; Revenue between $57 million and $60 million; Adjusted EBITDA between negative $7.5 million and negative $4.0 million.

• Warning! GuruFocus has detected 5 Warning Signs with CDLX.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cardlytics Inc (NASDAQ:CDLX) exceeded the high end of their guidance across all metrics in Q4 2024, driven by higher-than-expected pipeline wins and improved platform delivery.
• The company signed a new neobank partner in Q4, one of the fastest-growing fintechs in the US, and expects to be at scale with them by the end of Q1 2025.
• Cardlytics Inc (NASDAQ:CDLX) saw strong double-digit growth in the UK, particularly in the everyday spend, retail, and travel industries.
• The company is making progress on its turnaround plan, including divesting noncore businesses like Dosh and reinvesting in areas such as partnerships and data engineering.
• Cardlytics Inc (NASDAQ:CDLX) has a strong liquidity position with over $100 million available, ensuring the ability to fund operations and meet debt obligations.

Negative Points

• Cardlytics Inc (NASDAQ:CDLX) faced a 11.2% decrease in total billings in Q4 2024 compared to the previous year, primarily due to reductions in key accounts.
• The company's US revenue decreased by 19.9% due to lower billings and higher redemptions.
• Bridg revenue declined by 12.7% compared to the prior year due to the loss of key accounts in early 2024.
• Adjusted EBITDA declined from $10.3 million to $6.4 million, reflecting challenges in maintaining profitability.
• The company anticipates Q1 2025 to represent the lowest billings quarter and growth rate, indicating ongoing challenges in the transitional period.

Q & A Highlights

Q: Can you provide an update on delivery performance and any improvements made since last quarter? A: Amit Gupta, Chief Operating Officer, stated that they have made sequential improvements in delivery from Q3, with delivery now within acceptable parameters. The network is performing well, delivering budgets predictably, and campaigns are hitting ROAS goals. Over delivery issues have been addressed, and under delivery continues to improve with a focus on targeting and relevancy.

Q: How significant is the new partnership with the neobank in the US, and when do you expect to be fully live with them? A: Amit Gupta emphasized that every partner is significant, regardless of size. The neobank is one of the fastest-growing fintechs with a diversified customer base. They plan to be fully ramped up with the partner within a few weeks, adding interesting new demographic segments to their mix.

Q: What are your expectations for operating expenses throughout 2025? A: Alexis Desieno, Chief Financial Officer, mentioned that operating expenses are expected to be below $40 million for the rest of the year, normalizing to levels seen in Q3. They are optimizing costs and making deliberate decisions, such as launching a hub in Taiwan while pulling back in other areas.

Q: Is the current level of consumer incentives a stable run rate moving forward? A: Alexis Desieno indicated that consumer incentives should remain in the low 60% range of revenue to billings. The focus is on driving value to consumers and engagement while maintaining margins within an acceptable range.

Q: How are advertisers reacting to economic uncertainties, and what impact does this have on your business? A: Amit Gupta noted that they see consumer pullback in discretionary spend areas like travel and restaurants, while everyday spend remains strong. The diversified advertiser base helps, and consumers becoming more deal-focused plays to their strengths. They are working closely with advertisers to navigate uncertainties.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.