Cardlytics Announces Third Quarter 2020 Financial Results

Atlanta, GA – November 2, 2020 – Cardlytics, Inc. (NASDAQ: CDLX), an advertising platform in banks' digital channels, today announced financial results for the third quarter ended September 30, 2020. Supplemental information is available on the Investor Relations section of the Cardlytics' website at http://ir.cardlytics.com/.

“During the third quarter we were pleased to see increased momentum in both long-standing and new areas of our business,” said Lynne Laube, CEO & Co-Founder of Cardlytics. “We are also excited about the incremental strides we have made towards the future version of our platform, and we see great opportunity for our clients, both directly and via agencies.”

“Despite the challenging environment, we continue to see our business track in the right direction month after month,” said Andy Christiansen, CFO of Cardlytics. “In addition to our improving results, we also completed a $230 million convertible notes offering, which will support general corporate purposes, as well as potential acquisitions and strategic transactions to further the growth of our business.”

Third Quarter 2020 Financial Results

• Revenue was $46.1 million, a decrease of (18)% year-over-year, compared to $56.4 million in the third quarter of 2019.
• Billings, a non-GAAP metric, was $62.1 million, a decrease of (25)% year-over-year, compared to $82.8 million in the third quarter of 2019.
• Gross profit was $14.6 million, a decrease of (30)% year-over-year, compared to $20.9 million in the third quarter of 2019.
• Adjusted contribution, a non-GAAP metric, was $19.7 million, a decrease of (20)% year-over-year, compared to $24.7 million in the third quarter of 2019.
• Net loss attributable to common stockholders was $(15.4) million, or $(0.56) per diluted share, based on 27.3 million weighted-average common shares outstanding, compared to a net loss attributable to common stockholders of $(7.7) million, or $(0.33) per diluted share, based on 23.6 million weighted-average common shares outstanding in the third quarter of 2019.
• Non-GAAP net loss was $(4.5) million, or $(0.16) per diluted share, based on 27.3 million weighted-average common shares outstanding, compared to a non-GAAP net income of $0.8 million, or $0.03 per diluted share, based on 23.6 million weighted-average common shares outstanding in the third quarter of 2019.
• Adjusted EBITDA, a non-GAAP metric, was a loss of $(0.6) million compared to a gain of $3.0 million in the third quarter of 2019.

Key Metrics

• FI MAUs were 161.6 million, an increase of 26%, compared to 128.3 million in the third quarter of 2019.
• ARPU was $0.29, a decrease of (34)%, compared to $0.44 in the third quarter of 2019.

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

Fourth Quarter 2020 Financial Expectations

Cardlytics anticipates billings and revenue to be in the following ranges (in millions):

 Q4 2020 Guidance FY 2020 GuidanceBillings⁽¹⁾ $79.0 - $89.0 $248.4 - $258.4Revenue $55.0 - $62.0 $174.8 - $181.8

(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."

Earnings Teleconference Information

Cardlytics will discuss its third quarter 2020 financial results during a teleconference today, November 2, 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# 7132159. A replay of the conference call will be available through 8:00 PM ET / 5:00 PM PT on November 9, 2020 at (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay passcode is 7132159. 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.