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Cardlytics Announces Second Quarter 2022 Financial Results

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Cardlytics, Inc.
Cardlytics, Inc.

ATLANTA, Aug. 02, 2022 (GLOBE NEWSWIRE) -- Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the second quarter ended June 30, 2022. Supplemental information is available on the Investor Relations section of Cardlytics' website at http://ir.cardlytics.com/.

“I am pleased with our growth in the first half of the year despite the growing pressure macro conditions are having on consumer spending and ad budgets,” said Lynne Laube, CEO & Co-Founder of Cardlytics. “We are also pleased with the progress we are seeing in the Bridg acquisition and expect to see further proof points in future quarters. The combination of the Cardlytics and Bridg data sets has us on the cusp of being able to scale the business beyond our core platform, while our focus on financial goals will allow us to control our own destiny moving forward.”

“We are committed to meeting our adjusted EBITDA and free cash flow goals in 2023, and we’re taking several proactive steps to reduce our cost structure in recognition of the lower-growth environment we are entering,” said Andy Christiansen, CFO of Cardlytics. “We expect year-over-year growth of approximately 10 to 15% in the back half of 2022, and I believe we can navigate a lower growth environment with minimal impact on the long-term prospects of the business.”

Second Quarter 2022 Financial Results

  • Revenue was $75.4 million, an increase of 28% year-over-year, compared to $58.9 million in the second quarter of 2021.

  • Billings, a non-GAAP metric, was $107.7 million, an increase of 26% year-over-year, compared to $85.3 million in the second quarter of 2021.

  • Gross profit was $27.0 million, an increase of 16% year-over-year, compared to $23.2 million in the second quarter of 2021.

  • Adjusted contribution, a non-GAAP metric, was $35.1 million, an increase of 19% year-over-year, compared to $29.6 million in the second quarter of 2021.

  • Net loss attributable to common stockholders was $(126.3) million, or $(3.75) per diluted share, based on 33.6 million fully diluted weighted-average common shares, compared to a net loss attributable to common stockholders of $(47.3) million, or $(1.43) per diluted share, based on 33.0 million fully diluted weighted-average common shares in the second quarter of 2021.

  • Non-GAAP net loss was $(21.7) million, or $(0.65) per diluted share, based on 33.6 million fully diluted weighted-average common shares, compared to non-GAAP net loss of $(12.8) million, or $(0.39) per diluted share, based on 33.0 million fully diluted weighted-average common shares in the second quarter of 2021.

  • Adjusted EBITDA, a non-GAAP metric, was a loss of $(15.8) million compared to a loss of $(5.7) million in the second quarter of 2021.

Key Metrics

  • Cardlytics MAUs were 179.9 million, an increase of 7%, compared to 167.6 million in the second quarter of 2021.

  • Cardlytics ARPU was $0.38, an increase of 12%, compared to $0.34 in the second quarter of 2021.

  • Bridg ARR was $21.8 million in the second quarter of 2022.

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

Earnings Teleconference Information

Cardlytics will discuss its second quarter 2022 financial results during a teleconference today, August 2, 2022, at 5:00 PM ET / 2:00 PM PT. A live dial-in will be available after registering at this link. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on August 9, 2022 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 rewards programs that promote customer loyalty and deepen 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, Los Angeles, San Francisco, Austin, Detroit 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, 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 the uncertain impacts that COVID-19 may have on our business, financial condition, results of operations; 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 the integration of Dosh, Bridg and Entertainment with our company; 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 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 August 2, 2022 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 Partner Share and other third party costs, 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, adjusted Partner Share and other third-party costs, 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, 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. We define adjusted EBITDA as our income (loss) before income taxes; interest expense, net; depreciation and amortization expense; stock-based compensation expense; foreign currency loss (gain); deferred implementation costs; restructuring costs, acquisition and integration (benefit) costs, change in fair value of contingent consideration and goodwill impairment. We define adjusted Partner Share and other third-party costs as our Partner Share and other third-party costs excluding non-cash equity expense and amortization of deferred implementation costs. We define non-GAAP net loss as our net loss before stock-based compensation expense; foreign currency loss (gain); acquisition and integration (benefit) costs; amortization of acquired intangibles; change in fair value of contingent consideration; and restructuring costs. Notably, any impacts related to minimum Partner Share commitments in connection with agreements with certain partners are not added back to net income (loss) 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, basic and 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)

 

 

 

 

 

June 30, 2022

 

December 31, 2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

157,038

 

 

$

233,467

 

Restricted cash

 

81

 

 

 

95

 

Accounts receivable and contract assets, net

 

92,206

 

 

 

111,085

 

Other receivables

 

4,955

 

 

 

6,097

 

Prepaid expenses and other assets

 

9,658

 

 

 

7,981

 

Total current assets

 

263,938

 

 

 

358,725

 

Long-term assets:

 

 

 

Property and equipment, net

 

8,619

 

 

 

11,273

 

Right-of-use assets under operating leases, net

 

10,304

 

 

 

10,196

 

Intangible assets, net

 

121,047

 

 

 

125,550

 

Goodwill

 

665,813

 

 

 

742,516

 

Capitalized software development costs, net

 

16,680

 

 

 

13,131

 

Other long-term assets, net

 

3,106

 

 

 

2,406

 

Total assets

$

1,089,507

 

 

$

1,263,797

 

Liabilities and stockholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,810

 

 

$

4,619

 

Accrued liabilities:

 

 

 

Accrued compensation

 

9,634

 

 

 

12,136

 

Accrued expenses

 

20,963

 

 

 

19,620

 

Partner Share liability

 

42,176

 

 

 

46,595

 

Consumer Incentive liability

 

42,923

 

 

 

52,602

 

Deferred revenue

 

4,654

 

 

 

3,280

 

Current operating lease liabilities

 

6,091

 

 

 

6,028

 

Current contingent consideration

 

164,277

 

 

 

182,470

 

Total current liabilities

 

293,528

 

 

 

327,350

 

Long-term liabilities:

 

 

 

Convertible senior notes, net

 

225,314

 

 

 

184,398

 

Deferred liabilities

 

98

 

 

 

173

 

Long-term operating lease liabilities

 

6,382

 

 

 

6,801

 

Long-term contingent consideration

 

 

 

 

49,825

 

Other long-term liabilities

 

28

 

 

 

4,550

 

Total liabilities

 

525,350

 

 

 

573,097

 

Stockholders’ equity:

 

 

 

Common stock, $0.0001 par value—100,000 shares authorized and 32,883 and 33,534 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.

 

9

 

 

 

9

 

Additional paid-in capital

 

1,163,126

 

 

 

1,212,823

 

Accumulated other comprehensive income

 

5,580

 

 

 

486

 

Accumulated deficit

 

(604,558

)

 

 

(522,618

)

Total stockholders’ equity

 

564,157

 

 

 

690,700

 

Total liabilities and stockholders’ equity

$

1,089,507

 

 

$

1,263,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

$

75,405

 

 

$

58,853

 

 

$

143,333

 

 

$

112,083

 

Costs and expenses:

 

 

 

 

 

 

 

Partner Share and other third-party costs

 

40,280

 

 

 

29,953

 

 

 

75,433

 

 

 

59,724

 

Delivery costs

 

8,162

 

 

 

5,748

 

 

 

14,695

 

 

 

9,686

 

Sales and marketing expense

 

21,983

 

 

 

17,063

 

 

 

39,631

 

 

 

30,265

 

Research and development expense

 

13,581

 

 

 

8,934

 

 

 

25,872

 

 

 

15,152

 

General and administration expense

 

20,984

 

 

 

16,888

 

 

 

41,409

 

 

 

29,063

 

Acquisition and integration (benefit) costs

 

2,197

 

 

 

14,182

 

 

 

(2,401

)

 

 

21,212

 

Change in fair value of contingent consideration

 

(2,968

)

 

 

1,480

 

 

 

(68,018

)

 

 

1,480

 

Goodwill impairment

 

83,149

 

 

 

 

 

 

83,149

 

 

 

 

Depreciation and amortization expense

 

10,356

 

 

 

8,833

 

 

 

20,227

 

 

 

11,898

 

Total costs and expenses

 

197,724

 

 

 

103,081

 

 

 

229,997

 

 

 

178,480

 

Operating loss

 

(122,319

)

 

 

(44,228

)

 

 

(86,664

)

 

 

(66,397

)

Other (expense) income:

 

 

 

 

 

 

 

Interest expense, net

 

(879

)

 

 

(3,078

)

 

 

(1,826

)

 

 

(6,123

)

Foreign currency (loss) gain

 

(4,538

)

 

 

 

 

 

(6,208

)

 

 

319

 

Total other expense

 

(5,417

)

 

 

(3,078

)

 

 

(8,034

)

 

 

(5,804

)

Loss before income taxes

 

(127,736

)

 

 

(47,306

)

 

 

(94,698

)

 

 

(72,201

)

Income tax benefit

 

1,446

 

 

 

 

 

 

1,446

 

 

 

 

Net loss

 

(126,290

)

 

 

(47,306

)

 

 

(93,252

)

 

 

(72,201

)

Net loss attributable to common stockholders

$

(126,290

)

 

$

(47,306

)

 

$

(93,252

)

 

$

(72,201

)

Net loss per share attributable to common stockholders, basic and diluted

$

(3.75

)

 

$

(1.43

)

 

$

(2.77

)

 

$

(2.32

)

Weighted-average common shares outstanding, basic and diluted

 

33,635

 

 

 

32,977

 

 

 

33,688

 

 

 

31,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Delivery costs

$

914

 

$

521

 

$

1,496

 

$

830

Sales and marketing

 

3,633

 

 

3,655

 

 

7,337

 

 

6,087

Research and development

 

4,247

 

 

2,448

 

 

7,451

 

 

3,962

General and administration

 

4,048

 

 

6,713

 

 

10,143

 

 

9,706

Total stock-based compensation

$

12,842

 

$

13,337

 

$

26,427

 

$

20,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

Operating activities

 

 

 

Net Loss

$

(93,252

)

 

$

(72,201

)

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

 

 

 

Credit loss expense

 

1,041

 

 

 

1,156

 

Depreciation and amortization

 

20,227

 

 

 

11,898

 

Amortization of financing costs charged to interest expense

 

790

 

 

 

448

 

Accretion of debt discount and non-cash interest expense

 

 

 

 

4,680

 

Amortization of right-of-use assets

 

2,939

 

 

 

2,354

 

Stock-based compensation expense

 

26,427

 

 

 

20,585

 

Change in fair value of contingent consideration

 

(68,018

)

 

 

1,480

 

Goodwill impairment

 

83,149

 

 

 

 

Other non-cash expense (income), net

 

6,087

 

 

 

(279

)

Deferred implementation costs

 

 

 

 

1,612

 

Change in operating assets and liabilities:

 

 

 

Accounts receivable

 

19,663

 

 

 

10,209

 

Prepaid expenses and other assets

 

(1,885

)

 

 

(1,896

)

Accounts payable

 

(1,821

)

 

 

2,021

 

Other accrued expenses

 

(5,770

)

 

 

2,021

 

Partner Share liability

 

(4,821

)

 

 

(8,768

)

Consumer Incentive liability

 

(9,679

)

 

 

(2,830

)

Net cash used in operating activities

 

(26,369

)

 

 

(27,510

)

Investing activities

 

 

 

Acquisition of property and equipment

 

(889

)

 

 

(1,790

)

Acquisition of patents

 

(57

)

 

 

(58

)

Capitalized software development costs

 

(6,083

)

 

 

(4,431

)

Business acquisition, net of cash acquired

 

(2,274

)

 

 

(494,131

)

Net cash used in investing activities

 

(9,303

)

 

 

(500,410

)

Financing activities

 

 

 

Principal payments of debt

 

(21

)

 

 

(11

)

Proceeds from issuance of common stock

 

393

 

 

 

485,690

 

Repurchase of common stock

 

(40,000

)

 

 

 

Deferred equity issuance costs

 

 

 

 

(190

)

Debt issuance costs

 

(174

)

 

 

(86

)

Net cash (used in) received from financing activities

 

(39,802

)

 

 

485,403

 

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

 

(969

)

 

 

(118

)

Net decrease in cash, cash equivalents and restricted cash

 

(76,443

)

 

 

(42,635

)

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

 

233,562

 

 

 

293,349

 

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

$

157,119

 

 

$

250,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

Change

 

Six Months Ended
June 30,

 

Change

 

 

2022

 

 

 

2021

 

 

$

 

%

 

 

2022

 

 

 

2021

 

 

$

 

%

Billings(1)

$

107,744

 

 

$

85,337

 

 

$

22,407

 

 

26

%

 

$

205,969

 

 

$

161,654

 

 

$

44,315

 

 

27

%

Consumer Incentives

 

32,339

 

 

 

26,484

 

 

 

5,855

 

 

22

 

 

 

62,636

 

 

 

49,571

 

 

 

13,065

 

 

26

 

Revenue

 

75,405

 

 

 

58,853

 

 

 

16,552

 

 

28

 

 

 

143,333

 

 

 

112,083

 

 

 

31,250

 

 

28

 

Adjusted Partner Share and other third-party costs(1)

 

40,280

 

 

 

29,223

 

 

 

11,057

 

 

38

 

 

 

75,433

 

 

 

58,112

 

 

 

17,321

 

 

30

 

Adjusted contribution(1)

 

35,125

 

 

 

29,630

 

 

 

5,495

 

 

19

 

 

 

67,900

 

 

 

53,971

 

 

 

13,929

 

 

26

 

Delivery costs

 

8,162

 

 

 

5,748

 

 

 

2,414

 

 

42

 

 

 

14,695

 

 

 

9,686

 

 

 

5,009

 

 

52

 

Deferred implementation costs

 

 

 

 

730

 

 

 

(730

)

 

(100

)

 

 

 

 

 

1,612

 

 

 

(1,612

)

 

(100

)

Gross profit

$

26,963

 

 

$

23,152

 

 

$

3,811

 

 

16

%

 

$

53,205

 

 

$

42,673

 

 

$

10,532

 

 

25

%

Net loss

$

(126,290

)

 

$

(47,306

)

 

$

(78,984

)

 

(167

)%

 

$

(93,252

)

 

$

(72,201

)

 

$

(21,051

)

 

29

%

Adjusted EBITDA(1)

$

(15,785

)

 

$

(5,666

)

 

$

(10,119

)

 

(179

)%

 

$

(26,322

)

 

$

(9,610

)

 

$

(16,712

)

 

174

%

(1) Billings, adjusted Partner Share and other third-party costs, 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."

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

 

 

 

 

 

Three Months Ended
June 30, 2022

 

Three Months Ended
June 30, 2021

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

Revenue

$

69,270

 

$

6,135

 

$

75,405

 

$

56,763

 

$

2,090

 

$

58,853

Plus:

 

 

 

 

 

 

 

 

 

 

 

Consumer Incentives

 

32,339

 

 

 

 

32,339

 

 

26,484

 

 

 

 

26,484

Billings

$

101,609

 

$

6,135

 

$

107,744

 

$

83,247

 

$

2,090

 

$

85,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

Six Months Ended
June 30, 2022

 

Six Months Ended
June 30, 2021

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

Revenue

$

133,253

 

$

10,080

 

$

143,333

 

$

109,993

 

$

2,090

 

$

112,083

Plus:

 

 

 

 

 

 

 

 

 

 

 

Consumer Incentives

 

62,636

 

 

 

 

62,636

 

 

49,571

 

 

 

 

49,571

Billings

$

195,889

 

$

10,080

 

$

205,969

 

$

159,564

 

$

2,090

 

$

161,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Three Months Ended
June 30, 2022

 

Three Months Ended
June 30, 2021

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

Revenue

$

69,270

 

$

6,135

 

$

75,405

 

$

56,763

 

$

2,090

 

$

58,853

Minus:

 

 

 

 

 

 

 

 

 

 

 

Partner Share and other third-party costs

 

39,403

 

 

877

 

 

40,280

 

 

29,890

 

 

63

 

 

29,953

Delivery costs(1)

 

6,311

 

 

1,851

 

 

8,162

 

 

4,837

 

 

911

 

 

5,748

Gross profit

 

23,556

 

 

3,407

 

 

26,963

 

 

22,036

 

 

1,116

 

 

23,152

Plus:

 

 

 

 

 

 

 

 

 

 

 

Delivery costs(1)

 

6,311

 

 

1,851

 

 

8,162

 

 

4,837

 

 

911

 

 

5,748

Deferred implementation costs(2)

 

 

 

 

 

 

 

730

 

 

 

 

730

Adjusted contribution

$

29,867

 

$

5,258

 

$

35,125

 

$

27,603

 

$

2,027

 

$

29,630

(1) Stock-based compensation expense recognized in consolidated delivery costs totaled $0.9 million and $0.5 million for the three months ended June 30, 2022 and 2021, respectively.

(2) Deferred implementation costs is excluded from adjusted Partner Share and other third-party costs as follows (in thousands):

 

 

 

 

 

Three Months Ended
June 30, 2022

 

Three Months Ended
June 30, 2021

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

Partner Share and other third-party costs

$

39,403

 

$

877

 

$

40,280

 

$

29,890

 

$

63

 

$

29,953

Minus:

 

 

 

 

 

 

 

 

 

 

 

Deferred implementation costs

 

 

 

 

 

 

 

730

 

 

 

 

730

Adjusted Partner Share and other third-party costs

$

39,403

 

$

877

 

$

40,280

 

$

29,160

 

$

63

 

$

29,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

Six Months Ended
June 30, 2022

 

Six Months Ended
June 30, 2021

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

Revenue

$

133,253

 

$

10,080

 

$

143,333

 

$

109,993

 

$

2,090

 

$

112,083

Minus:

 

 

 

 

 

 

 

 

 

 

 

Partner Share and other third-party costs

 

74,431

 

 

1,002

 

 

75,433

 

 

59,661

 

 

63

 

 

59,724

Delivery costs(1)

 

11,218

 

 

3,477

 

 

14,695

 

 

8,775

 

 

911

 

 

9,686

Gross profit

 

47,604

 

 

5,601

 

 

53,205

 

 

41,557

 

 

1,116

 

 

42,673

Plus:

 

 

 

 

 

 

 

 

 

 

 

Delivery costs(1)

 

11,218

 

 

3,477

 

 

14,695

 

 

8,775

 

 

911

 

 

9,686

Non-cash equity expense included in FI Share(2)

 

 

 

 

 

 

 

 

 

 

 

Deferred implementation costs(2)

 

 

 

 

 

 

 

1,612

 

 

 

 

1,612

Adjusted contribution

$

58,822

 

$

9,078

 

$

67,900

 

$

51,944

 

$

2,027

 

$

53,971

(1) Stock-based compensation expense recognized in consolidated delivery costs totaled and $1.5 million and $0.8 million for the six months ended June 30, 2022 and 2021, respectively.

(2) Deferred implementation costs is excluded from adjusted Partner Share and other third-party costs as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
June 30, 2022

 

Six Months Ended
June 30, 2021

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

Partner Share and other third-party costs

$

74,431

 

$

1,002

 

$

75,433

 

$

59,661

 

$

63

 

$

59,724

Minus:

 

 

 

 

 

 

 

 

 

 

 

Deferred implementation costs

 

 

 

 

 

 

 

1,612

 

 

 

 

1,612

Adjusted Partner Share and other third-party costs

$

74,431

 

$

1,002

 

$

75,433

 

$

58,049

 

$

63

 

$

58,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net loss

$

(126,290

)

 

$

(47,306

)

 

$

(93,252

)

 

$

(72,201

)

Plus:

 

 

 

 

 

 

 

Income tax benefit

 

(1,446

)

 

 

 

 

 

(1,446

)

 

 

 

Interest expense - net

 

879

 

 

 

3,078

 

 

 

1,826

 

 

 

6,123

 

Depreciation and amortization

 

10,356

 

 

 

8,833

 

 

 

20,227

 

 

 

11,898

 

Stock-based compensation expense

 

12,842

 

 

 

13,337

 

 

 

26,427

 

 

 

20,585

 

Foreign currency loss (gain)

 

4,538

 

 

 

 

 

 

6,208

 

 

 

(319

)

Deferred implementation costs

 

 

 

 

730

 

 

 

 

 

 

1,612

 

Acquisition and integration costs (benefit)

 

2,197

 

 

 

14,182

 

 

 

(2,401

)

 

 

21,212

 

Change in fair value of contingent consideration

 

(2,968

)

 

 

1,480

 

 

 

(68,018

)

 

 

1,480

 

Goodwill impairment

 

83,149

 

 

 

 

 

 

83,149

 

 

 

 

Restructuring costs

 

958

 

 

 

 

 

 

958

 

 

 

 

Adjusted EBITDA

$

(15,785

)

 

$

(5,666

)

 

$

(26,322

)

 

$

(9,610

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CARDLYTICS, INC.
RECONCILIATION OF ADJUSTED CONTRIBUTION TO ADJUSTED EBITDA (UNAUDITED)
(Amounts in thousands)

 

 

 

 

 

Three Months Ended
June 30, 2022

 

Three Months Ended
June 30, 2021

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

Adjusted Contribution

$

29,867

 

 

$

5,258

 

 

$

35,125

 

 

$

27,603

 

 

$

2,027

 

 

$

29,630

 

Minus:

 

 

 

 

 

 

 

 

 

 

 

Delivery costs

 

6,311

 

 

 

1,851

 

 

 

8,162

 

 

 

4,837

 

 

 

911

 

 

 

5,748

 

Sales and marketing expense

 

20,908

 

 

 

1,075

 

 

 

21,983

 

 

 

16,665

 

 

 

398

 

 

 

17,063

 

Research and development expense

 

11,936

 

 

 

1,645

 

 

 

13,581

 

 

 

8,481

 

 

 

453

 

 

 

8,934

 

General and administration expense

 

21,232

 

 

 

(248

)

 

 

20,984

 

 

 

16,454

 

 

 

434

 

 

 

16,888

 

Stock-based compensation expense

 

(13,944

)

 

 

1,102

 

 

 

(12,842

)

 

 

(13,179

)

 

 

(158

)

 

 

(13,337

)

Restructuring costs

 

(958

)

 

 

 

 

 

(958

)

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

(15,618

)

 

$

(167

)

 

$

(15,785

)

 

$

(5,655

)

 

$

(11

)

 

$

(5,666

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

Six Months Ended
June 30, 2022

 

Six Months Ended
June 30, 2021

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

 

Cardlytics Platform

 

Bridg Platform

 

Consolidated

Adjusted Contribution

$

58,822

 

 

$

9,078

 

 

$

67,900

 

 

$

51,944

 

 

$

2,027

 

$

53,971

 

Minus:

 

 

 

 

 

 

 

 

 

 

 

Delivery costs

 

11,218

 

 

 

3,477

 

 

 

14,695

 

 

 

9,686

 

 

 

 

 

9,686

 

Sales and marketing expense

 

36,816

 

 

 

2,815

 

 

 

39,631

 

 

 

28,524

 

 

 

1,741

 

 

30,265

 

Research and development expense

 

22,895

 

 

 

2,977

 

 

 

25,872

 

 

 

14,994

 

 

 

158

 

 

15,152

 

General and administration expense

 

40,441

 

 

 

968

 

 

 

41,409

 

 

 

29,063

 

 

 

 

 

29,063

 

Stock-based compensation expense

 

(25,879

)

 

 

(548

)

 

 

(26,427

)

 

 

(20,585

)

 

 

 

 

(20,585

)

Restructuring costs

 

(958

)

 

 

 

 

 

(958

)

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

(25,711

)

 

$

(611

)

 

$

(26,322

)

 

$

(9,738

)

 

$

128

 

$

(9,610

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net loss

$

(126,290

)

 

$

(47,306

)

 

$

(93,252

)

 

$

(72,201

)

Plus:

 

 

 

 

 

 

 

Stock-based compensation expense

 

12,842

 

 

 

13,337

 

 

 

26,427

 

 

 

20,585

 

Foreign currency loss

 

4,538

 

 

 

 

 

 

6,208

 

 

 

(319

)

Acquisition and integration costs (benefit)

 

2,197

 

 

 

14,182

 

 

 

(2,401

)

 

 

21,212

 

Amortization of acquired intangibles

 

7,207

 

 

 

5,522

 

 

 

14,353

 

 

 

6,511

 

Change in fair value of contingent consideration

 

(2,968

)

 

 

1,480

 

 

 

(68,018

)

 

 

1,480

 

Goodwill impairment

 

83,149

 

 

 

 

 

 

83,149

 

 

 

 

Restructuring costs

 

(958

)

 

 

 

 

 

(958

)

 

 

 

Income tax benefit

 

(1,446

)

 

 

 

 

 

(1,446

)

 

 

 

Non-GAAP net loss

$

(21,729

)

 

$

(12,785

)

 

$

(35,938

)

 

$

(22,732

)

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

 

33,635

 

 

 

32,977

 

 

 

33,688

 

 

 

31,145

 

Non-GAAP net loss per share attributable to common stockholders, diluted

$

(0.65

)

 

$

(0.39

)

 

$

(1.07

)

 

$

(0.73

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contacts:

Public Relations:
Angie Amberg
Cardlytics, Inc.
aamberg@cardlytics.com

Investor Relations:
Robert Robinson
Corporate Development & IR
ir@cardlytics.com