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Which industry will take the bulk of consumer spend? 

What used to be considered two separate household budgets, one for groceries and one for dining out, has morphed into one overall food budget, thanks to pandemic-led shifts in how people eat. More dinners are being eaten at home causing restaurants to expand into delivery and take-out options. Meanwhile, grocery stores braced for a surge in traffic as more consumers requested delivery or curbside pick-up. While all industries faced upheaval during the pandemic, there’s no doubt that restaurants and grocery stores were among the most affected, with consumers’ eating habits and routines changing overnight. Both grocery and restaurant industries now face similar challenges in an uncertain marketplace - how to grow revenue and defend wallet share in the face of emerging third-party players.

But instead of working in competition with one another, Cardlytics’ Mike Novosel, industry lead for grocery, gas, and convenience and Matt Drewes, industry lead for restaurant, share how the two industries can peacefully coexist by answering these questions:

• What is your occasion share? Do you know how much you’re losing, gaining, and what you need to defend it?
• How do you want your customers to shop with you?
• What is your biggest opportunity?

In our first ever B2C Marketing Showdown, brands will learn how working with a partner like Cardlytics can help them retain their customers, regain lapsed customers, and perhaps most important to growth, earn customers that shop in-store and online.  

Watch this free webinar to knockout the competition and grow incremental revenue across categories.

https://youtu.be/6dbbXzX4zA4

Recently a coworker and I were discussing the many ways in which our jobs have drastically changed over the last year. As head of People for a global company with more than 600 employees, I have directly seen how the entire world has taken a collective step back to reassess the things that matter most, especially as it relates to the workplace. Employees are looking for fulfillment, something more than “just a job.”  

As I thought more specifically about how my job is different now than it was 12 months ago, I realized that last year, while we were doing a really good job at caring for our employees’ needs with great pay, insurance, and vacation policies it’s no longer enough.  This year, while we still offer great pay, insurance, and vacation, it’s less about just meeting needs, and more about anticipating the needs and wants of our employees. In short: how can Cardlytics help make life better, easier, and more fulfilling for our employees?  

This year, I now find myself waking up every morning thinking about how to make Cardlytics a great place where great people want to be. And while it’s only the second month of the year, I think we are off to a great start.  

Last year, we offered a gym membership discount.  This year, we realized gyms aren’t the only way to address wellness. If nothing else, the past two years have taught us that overall wellness is a priority. So, we are now reimbursing employees up to $1,000 for things like art classes, counseling, massages, financial wellness classes, and so much more. 

Last year, we launched tuition reimbursement for continuing education. This year, we’ve recognized that many people can’t think about continuing education because they are too saddled with existing student loan debt. So now we’re helping employees pay down their student loans with monthly contributions.  

As far as a vacation policy, we have always been quite flexible, allowing for unlimited time off, but in the second half of 2021 we learned that this wasn’t enough because even if you are on vacation your work is not. So, we began scheduling “company-wide days off" throughout the year for the entire organization to rest and recharge as a team. We even closed the office for an entire week between Christmas and the New Year.  No more worrying about missing a meeting or playing catch up on an important email. This has been such a success that we will continue this practice into the new year. 

While these are just a few of the ways we’re showing our employees that we value their time and contribution, it doesn’t stop there. I’m excited to continue this journey and discover more opportunities to support our employees in the years ahead.  

So, although the last year has been challenging to say the least - I wouldn’t want to do virtual school with my son again for any amount of money (kudos to the educators!) -  it’s reminded us to return our focus to our greatest asset: our people.  

Work will never be the same. And for Cardlytics, that is a wonderful thing.  

Want to come work with us? Check out our careers here. 

We’re in an era of enormous change, from shopper behavior and tech innovation to the business environment itself—and those in the gas, grocery, and convenience store markets are particularly feeling the upheaval. Caused by the convergence of multiple factors, the turbulence in the marketplace is expected to continue through 2022 and beyond.

Navigating these evolving trends is essential for the distributors, owners, and franchisees who keep our shelves stocked—and for the marketers with their eyes on the numbers. By understanding the changes and finding the opportunities they present, brands can do more than adapt: They can come out on top.

Four Top Trends for Gas, Grocery & Convenience Stores

Even before a global pandemic turned the world upside down, dramatic changes were pressing upon these industries. Each trend creates novel challenges, just as it produces new opportunities.

Trend #1: The Rise of Electric Vehicles & Alternative Fuels

Around 1.8 million electric vehicles (EVs) were registered in the U.S. as of 2020, up from 300,000 in 2016. EV ownership will no doubt increase as more Americans want cleaner cars and lower fuel costs. Gas stations are ideal locations for EV charging facilities, and many are adding electric plugs to their forecourts. And since charging a car takes longer than pumping gas (about 30 minutes), drivers have more time to relax inside the store. Savvy retailers are catering to these customers with enhanced opportunities for shopping, dining, and entertainment. The push toward greener vehicles is also boosting the demand for gas stations to provide other alternative fuels such as biodiesel and ethanol.

Trend #2: Shifting Public Policy & Gas Prices

Eco-aware consumers aren’t just affecting the automobile market, they’re also shaping public policies that will affect the gas, grocery, and convenience store industries. As concerns over climate change continue to mount, so does the likelihood of new legislation that’s designed to combat its environmental influence. Laws to reduce emissions, develop clean energy, and cope with climate change could greatly impact the prices that people pay for gasoline—and for everything else. ​​Because of regulatory and policy changes like these, fuel marketers have started adapting their marketing strategy to focus on more innovative opportunities, such as rewards partnerships with auto parts stores, or increased investments in biofuels.

Trend #3: Ongoing Supply Chain Issues

Since the pandemic began, we’ve all noticed the empty shelves and out-of-stock items at our local stores. Large-scale bottlenecks, the recent omicron variant spike, and other problems with the supply chain have disrupted the global flow of goods, causing record shortages on everything from toilet paper to refrigerators to bicycles. The result: higher prices, annoyed customers, and stressed-out retailers. And it’s not expected to end anytime soon. While covid spawned the supply chain crisis, it’s being exacerbated by the Great Resignation—the record number of Americans quitting their jobs, which topped 4.3 million this past November. Many of them are the minimum-wage earners who kept the wheels of commerce turning, like the warehouse workers and truck drivers that supply chains depend on. They’ll need to be lured back with higher wages and better benefits, which will increase consumer prices even more.

Trend #4: Limited-Assortment Grocers

Months of cooking at home on tight budgets has led to home-chef burnout, and led supermarkets to accelerate and expand their offerings of “limited assortments”—a smaller variety of grocery items and/or pre-prepared meals at lower prices. Discount food stores like ALDI, Save-A-Lot, Lidl, and Grocery Outlet are flourishing by selling their own private label products while eschewing most (or all) perishables like meat and produce. Service and staffing levels are significantly reduced, but shoppers don’t mind when the prices are around 40% less than traditional supermarkets. Inflation will likely drive more Americans to limited-assortment grocers, but supply chain woes may take a bite out of the bargains they offer.

Localized Markets Need Local Solutions

What does all this mean for gas, grocery, and convenience stores? Unlike some industries, these markets are highly fragmented and franchised. Numerous local and regional companies compete in a landscape that looks quite different depending on where you find yourself in America. The distinct, location-based focus of these industries means having localized marketing strategies can be a big step ahead in competitiveness. For brands where hyper-localization isn’t an option, grocery and convenience retailers should focus on minimizing friction for their customers and providing a much smoother and more positive purchase experience, which serves much the same end goal as hyper-localized campaigns. Brand messaging must connect with consumers—and offer specialized benefits that speak to this specialized audience.

National Distributors Feel the Impact

The effects of localization trickle up to national distributors, who sell directly to the retailers in these fragmented markets. To appeal to franchise operators, distributors must position themselves as value-creating entities with novel solutions. In the end, retailers must continue to find ways to create and showcase value to their customers; some may invest more in local, others in expanded partnerships, others in tech all in service of creating value. But change is happening rapidly with incredible tech innovations that are transforming the future of marketing—like Cardlytics.

How Cardlytics Helps Brands Navigate New Trends

Massive fluctuations are pressing on businesses today, from the broadest global trends to the tiniest local details. In a complex marketplace where each little snack purchase is connected to the worldwide economy, the right knowledge—and the right partnerships—can make all the difference. That’s where Cardlytics comes in. Our native ad platform works within banks’ digital channels to provide our partners with purchase insights, a powerful tool for driving marketing results. Together, we can pilot the seas of change and drive the results that bring success. Want to know more about Cardlytics? Please contact us today.

Atlanta, GA – November 2, 2021 – Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the third quarter ended September 30, 2021. Supplemental information is available on the Investor Relations section of Cardlytics' website at http://ir.cardlytics.com/.

“We had a solid quarter and delivered results above our guidance,” said Lynne Laube, CEO & Co-Founder of Cardlytics. “Execution remains our primary focus, and we have the team and resources to achieve our financial goals, be a strategic partner for our banks and continue our progress on our product and technology initiatives.”

“We saw the core business strengthen through the quarter as we achieved sequential billings growth each month,” said Andy Christiansen, CFO of Cardlytics. “We remain focused on the things we can control — developing and maintaining strong relationships with all of our partners and developing a technology platform that will unlock the massive potential of our channel.”

Third Quarter 2021 Financial Results

• Revenue was $65.0 million, an increase of 41% year-over-year, compared to $46.1 million in the third quarter of 2020.
• Billings, a non-GAAP metric, was $98.4 million, an increase of 59% year-over-year, compared to $62.1 million in the third quarter of 2020.
• Gross profit was $24.5 million, an increase of 68% year-over-year, compared to $14.6 million in the third quarter of 2020.
• Adjusted contribution, a non-GAAP metric, was $31.6 million, an increase of 60% year-over-year, compared to $19.7 million in the third quarter of 2020.
• Net loss attributable to common stockholders was $(44.5) million, or $(1.35) per diluted share, based on 33.1 million weighted-average common shares outstanding, compared to a net loss attributable to common stockholders of $(15.4) million, or $(0.56) per diluted share, based on 27.3 million weighted-average common shares outstanding in the third quarter of 2020.
• Non-GAAP net loss was $(11.0) million, or $(0.33) per diluted share, based on 33.1 million weighted-average common shares outstanding, compared to a non-GAAP net loss of $(4.5) million, or $(0.16) per diluted share, based on 27.3 million weighted-average common shares outstanding in the third quarter of 2020.
• Adjusted EBITDA, a non-GAAP metric, was a loss of $(5.2) million compared to a loss of $(0.6) million in the third quarter of 2020.

Key Metrics

• Cardlytics MAUs were 170.6 million, an increase of 6%, compared to 161.6 million in the third quarter of 2020.
• Cardlytics ARPU was $0.36, an increase of 24%, compared to $0.29 in the third quarter of 2020.
• Bridg ARR was $12.7 million in the third quarter of 2021.

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

Fourth Quarter 2021 Financial Expectations

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

 Q4 2021 Guidance FY 2021 GuidanceBillings⁽¹⁾$105.0 - $120.0  $365.1 - $380.1Revenue$70.0 - $80.0  $247.1 - $257.1Adjusted contribution⁽²⁾$33.0 - $38.0  $118.6 - $123.6

• 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."
• 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.

Earnings Teleconference Information

Cardlytics will discuss its third quarter 2021 financial results during a teleconference today, November 2, 2021, 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# 2781489. A replay of the conference call will be available through 8:00 PM ET / 5:00 PM PT on November 9, 2021 at (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay passcode is 2781489. 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 a digital advertising platform. 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, we have offices in London, New York, San Francisco, Austin and Visakhapatnam. In March 2021, we acquired Dosh, a transaction-based advertising platform, and in May 2021 we acquired Bridg, a customer data platform. Learn more at www.cardlytics.com.

Rising cases of Omicron at the end of 2021 spelled a muted festive period for restaurants and pubs in the UK. Instead, diners opted for takeaways on the sofa over drinks at their local pub, meaning delivery platforms celebrated a record holiday season. 

Government guidance to limit social distancing just before ‘Mad Friday’ – the day hospitality businesses expect the biggest takings of the festive season – dented consumer confidence and left many restaurants and pubs facing a deluge of cancelled bookings and excess stock.   

Our latest spend data, based on the purchasing habits of over 22 million UK bank cards, found that  December 2021 spend at pubs and restaurants was down 18% compared to December 2019. 

This follows a year of uphill battles for the restaurant sector, which faced inflationary pressures, a skills shortage, and supply chain issues leading to a lack of many key ingredients. This cocktail of misfortune meant that spend in restaurants fell 9% overall in 2021 and is yet to return to pre-pandemic levels. 

On the other hand, consumers choosing to stay home and limit socialising signalled a stellar Christmas for delivery platforms like Just Eat, Deliveroo and Uber Eats, which saw spend up 102% since December 2019, as demand for door-to-door delivery continues to soar.  

But what does this shift in consumer behaviour mean for hospitality brands? 

Restaurants should find ways to incentivize a return to dining out 

If there’s one lesson to learn from how consumers spent in December, it is that restaurants and pubs need to build consumer confidence in dining out safely.   

It is worth remembering that there’s much to gain from driving consumers to restaurants. In May 2021, when hospitality fully reopened, we saw first-hand how much Britons love eating out. In the space of a month, from April to May 2021, restaurant spend was up 98%. 

But, without any ‘Eat Out to Help Out’ support this time around, restaurants and pubs should consider introducing their own offers and incentives. Whether it is rewarding repeat visits with sensible discounts or free add-on items to a meal, restaurants should personalise offers for their customers to build loyalty and drive spend. 

Invest in the dining experience 

From reassuring customers with Covid-19 hygiene measures, to building an enjoyable atmosphere in restaurant, enhancing the in-restaurant experience is key to reminding consumers of what they love about heading out for a meal. 

But if restaurants and pubs are to emerge from the pandemic stronger than before, they should consider expanding into home delivery (as long as they have a strong go-to-market plan rather than just jumping on the bandwagon). Even before the pandemic, delivery platforms were seeing astronomic growth, which has only intensified in the last 18 months as consumers adapted to at-home delivery as a viable option.   

Delivery continues to grow and is a dining trend that may outlast the pandemic 

Overall, takeaway platforms enjoyed healthy growth in the last year, with spend increasing by 72%. On average, consumers are also using takeaway platforms 46% more often than during the pandemic¹, showing that certain lockdown habits are here to stay.  

For those brands that want to maximise the delivery space, the challenge is how to move their loyal customers to new ordering platforms. They will need to create an omnichannel experience that offers delivery incentives to their most engaged customers. And that’s where Cardlytics can help by finding your most successful path forward. With insight into 1 out of every 4 UK transactions, Cardlytics puts purchase insights into action every day for our advertisers through banks’ digital channels. Contact us today to learn more! 

Post-holiday shopping reached new peaks in January as a flurry of gift cards descended in December. Retailers that positioned themselves well for the sales surge have been reaping its rewards, launching into 2022 with a hearty slice of the holiday shopping pie. 

COVID-19 and now, the omicron variant, continues to affect many facets of our lives, including how we shop. Discover the factors that are fueling post-holiday spend and learn how to continue capitalizing on the opportunity it provides. 

Supply chain pains push people to purchase gift cards  

Major issues in the international supply chain erupted with the arrival of the pandemic as factories closed and transportation routes were disrupted. The supply chain crisis has continued ever since, exacerbated by worker shortages and record-setting bottlenecks at American ports. Empty store shelves, out-of-stock items, and shipping delays have become much more common. To avoid these hassles during the holiday season, many Americans filled their stockings with gift cards instead of physical presents. 

Gift cards fill the gap & boost post-holiday shopping 

The popularity of giving gift cards for the holidays has been growing for years, but the trend skyrocketed in 2021 with an estimated 27% increase in gift card sales during the holiday season.  

With a blizzard of new gift cards in circulation, retailers saw increased spending in January. These gift card shoppers end up spending 40% more than the value of their gift cards (an average of $59) during their post-holiday shopping sprees. This effectively extended the traditional holiday shopping season, which no longer ends at Christmas but carries on well into the New Year. 

How Cardlytics partners can make the most of gift card trends 

The beginning of the year has historically been a slow season for marketing campaigns. But our insights show this is no longer the case. January is not the time to ramp down advertising budgets. Here’s why:  

• Retailers that do not run holiday gift card promotions miss out on 37% of annual sales volume. 
• Gift cards sales take advantage of “payment shift,” avoiding credit card fees by driving sales onto gift cards. 

For retailers that want to leverage this new holiday shopping trends, connecting with shoppers is essential—and a partnership with Cardlytics makes it easy. Our native ad platform works within banks’ digital channels, providing brands with consumer purchase data for precise, personalized targeting. Such unparalleled insight on buying behavior drives powerful marketing results, whether you want to attract new shoppers, engage your existing fans, or improve customer retention. Contact us today to learn how Cardlytics can help you meet your 2022 marketing goals. 

As the pandemic raged through 2020, apparel sales plummeted a record 77% while we all stayed home in our comfortable old clothes.  But the slump began to turn around in early 2021 as vaccines unleashed restless shoppers from quarantine. We were finally going out—and were ready to trade in those baggy sweatpants for a new look. 

4 Key Takeaways for 2021 Apparel Trends 

• Customers are coming back to retail and apparel spending is slowly returning, hitting pre-pandemic levels for the first time in April 2021. 

• Recovery is uneven, brand name stores, athleisure, and discount store subcategories performed well in 2021, increasing their share as well as spend. 

• Customers are making fewer trips to shop, but they are spending more per trip. 

• Many women (40%) are wearing a different size than they were when the pandemic started, which means that shoppers are ready for a wardrobe refresh. 

Let’s dig into some of the data and discover which shopping trends are growing fastest – and how they’re creating new opportunities for brands. 

 2021 Recap: Apparel Bounces Back 

After one of the most challenging years on record, the apparel industry saw sales begin to recover to 2019 levels as early as April 2021. This growth was primarily driven by increases in basket size. Customer counts and number of purchases still lag 2019 levels, but there are a few exceptions. 

Winners for overall spend growth in 2021 included brand name stores, discount, and athleisure apparel subcategories. All three have also increased their sales over 2019 levels: 

• Branded: +2% over 2019 
• Discount:  +7% over 2019 
• Athleisure:  +21% over 2019 

But when it comes to attracting new customers, athleisure and footwear were the stand-out performers this year: 

•  62% of athleisure customers were new 
•  69% of footwear customers were new 

Apparel Shopping Trends: Subcategory Spotlight 

What’s behind the consumer behavior that’s pushing these subcategories forward—and what does it mean for your brand? 

Athleisure: Comfort & Practicality 

It’s easy to understand why we reached for joggers and sweatshirts during the early days of the pandemic. But the athleisure trend was going strong long before lockdown. In fact, the ‘casualization’ of America is nothing new. Athletic fashions boomed through the 80s and in the early 2000s. 

This is no flash-in-the-pan fad—and our insights back this up. Athleisure did not see a sales decline in 2020, in part due to the growing popularity of on-demand workouts for exercising at home during the lockdown, which saw 21% growth in sales over the same time period in 2021 vs 2019.  

Unlike most other subcategories, athleisure spend was fueled by growth in the number of customers, purchases, and basket size: 

2021 YTD vs 2019 YTD 

• Customers: +6.4% 
• Purchases: + 12.1% 
• Basket: + 7.8% 

Discount Stores: Hungry for Deals 

After a rough year for the economy, many Americans are still tightening their belts and looking for deals—and they’re finding them at discount stores like Nordstrom Rack, Marshall’s, and TJ Maxx. Consumer spending growth in this subcategory is driven by basket size growth over previous years, despite fewer customers and purchases. 

2021 YTD vs 2019 YTD 

• Customers:  -8.7% 
• Purchases: -2.6% 
• Basket:   +5.7% 

Department Stores: Catching Up 

With sprawling footprints and sizable overhead, department stores are struggling to adapt to the online shopping era. A shrinking middle class that’s feeling the squeeze is heading to discount stores instead. While overall spend has increased since 2020, the numbers still haven’t returned to their year to date (YTD) pre-pandemic levels. 

Like most subcategories, basket size for department stores is up since 2019, but customer counts and purchases are down: 

2021 YTD vs 2019 YTD 

• Customers:  -13.7% 
• Trips:  -18.7% 
• Basket:  +11.4 

Children’s Apparel: Growing Strong 

There’s a strong overlap between people who purchase children’s apparel and those who shop in department stores, and these two subcategories share similar data trends. Children’s apparel sales have increased year-over-year but haven’t fully recovered to 2019 levels. 

Basket size shows an impressive improvement, yet customer counts and purchases are far below 2019 through the same period: 

2021 YTD vs 2019 YTD 

• Customers: -23.1% 
• Purchases: -32.8 
• Basket: +21.0% 

So, what does this mean for retailers?  

People are willing to buy more than they need to reduce the frequency of in-store visits. Brands should focus on continuing to improve their overall experience and lean into omnichannel marketing for sustained growth. 

The takeaway 

2021 ended strong with sales matching or exceeding 2019 levels, and we can expect these sales rates to continue as long as retailers are able to contend with supply chain issues. 

Partner with Cardlytics to Leverage Insight into New Spending Habits 

The state of the apparel industry is never static, but the changes over the past two years have been especially dramatic. Every shift and every new trend creates another opportunity for brands to grow, but only if they can learn how to change, too. 

Cardlytics’ offers a brand-safe, fraud-free advertising platform that allows our partners to reach real people at the right time, all while helping them save money on their purchases. Learn how we deliver guaranteed incremental return on ad spend by contacting us today!  

Atlanta, GA – December 2, 2021 – Cardlytics, Inc., (NASDAQ: CDLX), one of the largest digital advertising platforms, today announced it will present at the Raymond James 2021 Technology Investors Conference.

Chief Executive Officer and Co-Founder, Lynne Laube, and Chief Financial Officer, Andy Christiansen, will present on Monday, December 6, 2021 at 4:00 p.m. Eastern Time and it will be webcast live. The live audio webcast will be available on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. After the event, an archive of the webcast will also be available for a limited time on the Cardlytics Investor Relations website.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. 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, Los Angeles, San Francisco, Austin and Visakhapatnam. In March 2021, Cardlytics acquired Dosh, a transaction-based advertising platform. In May 2021, Cardlytics acquired Bridg, a customer data platform. Learn more at www.cardlytics.com.