Cardlytics Announces Second Quarter 2020 Financial Results

Atlanta, GA – August 4, 2020 – Cardlytics, Inc. (NASDAQ: CDLX), an advertising platform in banks' digital channels, today announced financial results for the second quarter ended June 30, 2020. Supplemental information is available on the Investor Relations section of the Cardlytics' website at http://ir.cardlytics.com/.

“Despite the unprecedented environment in which we have been operating since mid-March, we have stayed focused and kept our foot on the accelerator, in terms of executing our plan for long-term revenue growth and profitability,” said Lynne Laube, CEO & Co-Founder of Cardlytics. “Consumer spending recovered throughout the quarter, and despite a slight pause in recent weeks, we are optimistic that we can narrow our year-over-year declines in the second half of 2020. We continue to see encouraging and exciting signs in our business that will support our long-term growth. These include the completed launch of Wells Fargo, which expands our reach to more than 150 million MAUs, as well as the extensive progress on our product development initiatives. We are also happy to announce that our self-service and automation platform is now being tested with several agencies. For these reasons, we believe we are extraordinarily well positioned over the long-term as the economy continues its recovery.”

"We remain committed to achieving our long-term goals and increasing shareholder value,” said Andy Christiansen, CFO of Cardlytics. “Our current capitalization and liquidity will provide us the financial flexibility to weather the economic downturn triggered by COVID-19 and continue with prudent, strategic investments.”

Second Quarter 2020 Financial Results

• Revenue was $28.2 million, a decrease of (42)% year-over-year, compared to $48.7 million in the second quarter of 2019.
• Billings, a non-GAAP metric, was $39.5 million, a decrease of (46)% year-over-year, compared to $73.8 million in the second quarter of 2019.
• Gross profit was $7.9 million, a decrease of (55)% year-over-year, compared to $17.7 million in the second quarter of 2019.
• Adjusted contribution, a non-GAAP metric, was $12.4 million, a decrease of (43)% year-over-year, compared to $21.8 million in the second quarter of 2019.
• Net loss attributable to common stockholders was $(19.8) million, or $(0.73) per diluted share, based on 27.1 million weighted-average common shares outstanding, compared to a net loss attributable to common stockholders of $(6.5) million, or $(0.29) per diluted share, based on 22.7 million weighted-average common shares outstanding in the second quarter of 2019.
• Non-GAAP net loss was $(10.2) million, or $(0.38) per diluted share, based on 27.1 million weighted-average common shares outstanding, compared to a non-GAAP net loss of $(2.7) million, or $(0.12) per diluted share, based on 22.7 million weighted-average common shares outstanding in the second quarter of 2019.
• Adjusted EBITDA, a non-GAAP metric, was a loss of $(7.7) million compared to a loss of $(0.6) million in the second quarter of 2019.

Key Metrics

• FI MAUs were 157.2 million, an increase of 31%, compared to 120.1 million in the second quarter of 2019.
• ARPU was $0.18, a decrease of (55)%, compared to $0.40 in the second 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 second quarter 2020 financial results during a teleconference today, August 4, 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# 4382929. A replay of the conference call will be available through 8:00 PM ET / 5:00 PM PT on August 11, 2020 at (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay passcode is 4382929. 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) is an advertising platform in banks’ digital channels. 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.