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Atlanta, GA – January 6, 2021 – Cardlytics, Inc., (NASDAQ: CDLX), an advertising platform in banks' digital channels, today announced it will present at the 23^rd Annual Needham Virtual Growth Conference.

Chief Executive Officer and Co-Founder, Lynne Laube, will present on Wednesday, January 13, 2021 at 12:30 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 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. 

ATLANTA, GA – December 16, 2020 – Cardlytics (NASDAQ: CDLX), an advertising platform in banks’ digital channels, today filed Form 8-K with the SEC, announcing a multi-year contract renewal with Lloyds Bank Plc.

On December 16, 2020, Cardlytics UK Limited, a wholly owned subsidiary of Cardlytics, Inc., renewed its Spending Rewards Agreement with Lloyds Bank Plc. Under the agreement, Cardlytics UK Limited will continue to provide Cardlytics Direct to Lloyds customers through December 31, 2023.

The 8-K, along with all other Cardlytics filings, is available on the Cardlytics Investor Relations site, ir.cardlytics.com.

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.  

*All data is for week ending 12/2/2020, unless otherwise indicated. 

Who else is ready for 2021? As we close the year, 2020 keeps rearing its ugly head as virus cases surge around the country. With it, spend is regressing to where we were earlier in the pandemic. For the week of December 2, we saw overall spend down -3.4% week-over-week (WoW) dropping it to –10.5% year-over year (YoY), in line with where we were back in May.  

Over the last few weeks, we’ve been following a trend in our Recovery Leading Indicator (RLI), which tracks discretionary spend, such as in-restaurant dining and salons. RLI declined to -24% YoY driven primarily by decreases in restaurant and in-store retail spend. These RLI categories are still struggling to get back to pre-pandemic levels as consumers continue to move their spend to alternative channels.  

Bottom line: we’re seeing a shift in consumer behavior. But which categories are seeing the biggest changes? 

Dine Out or Home Cooked? 

When lockdowns began in March, there was a clear correlation between grocery and restaurant spend, with grocery increasing as restaurant decreased. As lockdowns were lifted, the correlation became less obvious as restaurant sales rebounded quite quickly, while grocery sales started to slowly decline.  

For the week of December 2, both restaurant (-23.5%) and restaurant delivery (-17.4%) saw declines WoW. While restaurant delivery was up YoY, consistent with previous week trends (~118% Y/Y), full-service restaurant was down -36% YoY, indicating many people switched from eating in restaurants to eating at home. Overall grocery was only up 0.2% YoY, indicating spend trends were exactly in line. 

How About Hoarding? 

While grocery sales were up 5-8% in the months of October and November, this is significantly lower than the 12-20% (and up to 83%) YoY growth that we saw during the peak of COVID lockdowns.  In conjunction, we are seeing a basket size increase of 16-21% the past couple of weeks, but this is again down from the 20-25% increase in basket size we saw over the summer.  This shows that while we are not seeing the hoarding behaviors come back, consumers are still looking to the grocery category to replace the meals they aren’t buying at restaurants.  

Black Friday Exhaustion 

Too many sales? This year, that may be the case as holiday spend is up nearly 10% YoY, but Black Friday spend was down –22% (in the 48 hours following Thanksgiving), implying a bit of Black Friday exhaustion this year. This is likely due to the longer runway we had for the holiday shopping season, beginning with Prime Day in October. Additional store closures on Thanksgiving Day also played a role in the decrease. Spend is shifting online as well, with ~6 pts of spend share moving online this holiday, with online brick-and-mortars winning more of that share than online-only retailers. 

As we close out 2020 and look ahead to 2021, the New Year promises to reveal new spend trends as consumers settle into a post-pandemic life with different values, habits, and behaviors. Our insights into one in two card swipes in the U.S. allow us to help marketers navigate and respond to these changes and quickly adapt as they become lasting behaviors in 2021 and beyond. 

With an advertising platform that reaches more than 160 million bank customers, Cardlytics can help marketers create targeted campaigns that answer:   

• When and where are customers starting to make in-store purchases? 

• How quickly am I gaining or losing share versus my industry? 

• How is my eCommerce channel performing against my category?  

• Are my newly acquired customers likely to churn?  

Contact us today for an analysis and a campaign strategy customized for your brand. 

The Coronavirus has disproportionately impacted the restaurant industry. The onset of the virus followed by restrictions and closures caused restaurants of all sizes to evaluate and redesign their services to meet the customers’ needs. Restaurants that are positioned well are those who recognize that the future is omni-channel, take the time to know their customers, and leverage technology and data to best serve their customers.

The term omni-channel has long been used in the retail space to describe the varied range of options given to consumers to collect their purchases (in-store, online, drive-up, app) but restaurants have typically only needed to engage with customers on one or two channels – dine in and carry out – to prosper. That is, until Coronavirus hit. With safety and convenience at a premium, today’s customers expect to be able to order and pay for food from an app, have it delivered, see a menu and order online, pick up with no contact, and dine in.  

Know your technology

Restaurants have quickly invested in technology to help build the omni experience. From fast-food apps that let you to order and pay from your phone or allow quick, contactless pick-up, to connecting with third party delivery, restaurants have an opportunity to attract and retain customers by expanding ordering and service options. This is critical as total online restaurant spending has been trending 90%+ YOY since mid-April.

Now is the time to retain customers by catering to their personal preferences and using their purchase history to anticipate how they’ll spend in the future."

Know your customer

With the expectation for an omni-experience now a given, restaurants must know their customers better than ever, and personalized, relevant marketing is key. For example, a national chain promoting dine-in to Covid-restricted markets will get little from their efforts. Similarly, serving a delivery ad to someone who has never used delivery likely won’t generate a response, but serving a delivery ad & reward to a high-frequent delivery user will have a much higher success rate.  Restaurants need to pursue the current purchase behavior in the marketplace. Now is the time to retain customers by catering to their personal preferences and using their purchase history to anticipate how they’ll spend in the future.

Know your opportunity

Understanding your restaurant’s individual opportunity is also critical when considering how to market, and having the right data is an essential part of identifying where there is room to grow. A great example is the third-party delivery space, which is not surprisingly on the rise. Spend in third-party restaurant delivery reached an astounding. As of 7/30, delivery spend was up 173% year over year—its highest increase so far in 2020. Year to date, consumers have already spent over $180M more on delivery than they spent in all of 2019. But is this lift sustainable, and if so, should restaurants continue investing in newly acquired customers beyond the pandemic?

The data says, yes. Cardlytics can see a wide range of valuable purchase insights through our advertising platform, which is built in banks’ digital channels. Our data shows that even as on-premise dining had a resurgence in mid-April in regions where infection rates were on the decline, Online purchases remained constant. For instance, consumer spending at physical restaurants increased nearly 40 points between mid-April and late August (from -55% to -15% YOY), but Online spend maintained increases of 90%-130% YOY during the same time period, demonstrating that there’s enough consumer demand to maintain both dining choices.

But is this being propped up with new customers, larger check sizes, or more frequent purchases? Our data shows there is growth in all three categories, which means restaurants should focus their marketing on acquiring new customers, enticing diners to spend more per occasion, and retaining customers to build frequency & loyalty.

The bottom line is: What consumers want – quality, convenience, and value – hasn’t changed, but the way restaurants deliver this experience has, and technology is enabling the purchase behaviors. The good news is, more and more customers are using technology as part of their restaurant experience, and it’s sticking. Add a renewed industry focus on personalization and convenience, and you get a bright future for consumers and restaurants alike.

Last March, without warning, companies and employees around the world instantly transitioned to working remotely. What was seen as a privilege just the week before, suddenly became mandatory and we felt the strain immediately. While we cobbled together workspaces on kitchen counters, couches, porches, etc., we quickly learned how much we missed office life. That short stroll to the copy machine or to grab a cup of coffee now seemed like a luxury. Even the commutes so many of us complained about were missed as we no longer had time to unwind with podcasts or the radio as we transitioned from work to home.

To make things even more complicated, many of us, including me, were forced to be students again as we helped our kids with virtual school. And let me tell you that third grade math today looks nothing like what we learned when I was in school (why don’t you carry the one?!?). Not to mention the technology issues that come with online school (mute all!). It’s enough to try to balance work and school while working full time, but we also have to worry about keeping ourselves and our families safe while we try to predict what will happen next during the pandemic. In short, it’s A LOT.

When we first started working from, I thought “this will only be a few months” and by the summer we would be back to “normal.” Now as we sit just weeks away from the end of the year, I have a feeling that this “…is the song that never ends…” Or at least doesn’t end anytime soon.

If there is a silver lining in all this, it is that moments like these force us to look inward. We all know that our greatest challenges often bring our greatest learnings, so to that end, I want to reflect on what I’ve learned over the last few months.

• How to create new operating rhythms, professionally and personally. As we left the office in March, my well-formed routines and rhythms were all tossed out the window. I’ll use an analogy that is fitting for 2020: Imagine someone taking your favorite puzzle and sliding it off the coffee table. Early on, that’s what COVID felt like. Typically, I was up early to work out in the gym, then off to the office with meetings for most of the day. A few days a week, I’d leave quickly to get my son from school, then dinner, family time, sleep, and the next day repeat. While recreating “my puzzle” I learned to give grace to myself and others. Now instead of gym in the morning, I can run at lunch. Without rushing out of the office to pick up my son from school, I could use the time to schedule a check- in with a colleague to catch up. And I must say it’s been really cool to actually sit down and eat breakfast each morning. On the professional side, I have created team huddles a few times a week to stay connected and scheduled 1:1’s with key partners to ensure the cascade of communication continued. I brought in a little more structure and began with more deliberate goals for meetings to increase my effectiveness.

• The significance of clear communication. With an abrupt change from office interactions to zooms, emails, slacks, text, and whatever other platforms that surfaced during this period, the significance of clear communication grew exponentially. I now attempt to remove as much ambiguity and “fuzziness” from my communications and try to paint a vivid picture of my expectations, thoughts, etc. I often think “slow down to speed up”. Slowing down at the beginning of a communication allows for effective execution.

• Don’t take for granted the smiles and positive energy of our team. Positive energy is contagious, and unknowingly, many times propelled me through my day. The face-to-face interaction with my fellow Cardlytians, the smiles, the laughs, jokes, and kindhearted barbs are priceless. In the first few months of working from home it was a huge gap in my day. Now after nine months of working remotely I am intentional about scheduling at least one 15-minute meeting each day to get my positive energy fix. It’s always well worth it and fuels my tank.

I think I speak for the entire world when I say 2020 was not the year any of us expected. But there are moments of beauty we can absorb and teachings that we will take with us when we do get back to “normal.”  In between your Zoom meetings and teaching AP History to your child, try to find a minute to first congratulate yourself on making it this far(!!) and then reflect on what lessons you’ve learned the last nine months at home. Some will be good. Some not so good. But all are valuable as we move forward.

While I don’t know when we’ll be back together, I am energized by the idea of one day getting back to face-to-face work with an entirely new appreciation for my “puzzle” and all those who help create it.

Happy Thanksgiving week! We’ve officially made it to the holidays and in 2020 that is something to celebrate. As with everything else this year, the holiday season is looking a lot different than in previous years. With COVID surging again in much of the country, retailers in all industries are buckling in for what is sure to be a holiday season unlike any other. In this week’s State of Spend, we look at:

• Where we’re seeing changes in spend.
• What Thanksgiving in a pandemic means for Grocery.
• How a national grocery chain has doubled down on loyalty

Overall Spend

_{*All data referenced is for the week of Oct. 29 through Nov. 4., unless otherwise indicated.*}

Overall spend grew week-over-week (WoW) but was still down -4.7% vs last year, a good bit lower than what we’ve seen in recent weeks. We will keep an eye on next week’s spend to determine if this week is an anomaly or the beginning of another downward trend.

Our Recovery Leading Indicator (RLI) tracks spend in select discretionary categories to help brands measure consumer confidence throughout the recovery. It compares weekly spend in categories such as Salons, Apparel Retailers, Casual Dining and QSR restaurants, among others. For the week of Oct. 29, the RLI is down -19.3% YoY, the worst we’ve seen since late August.

As you might expect, states with the highest rates of positive COVID cases (Illinois, Colorado, North Dakota, among others) that are starting to put controls back in place tend to have the most regression in RLI since September.

Grocery

With Thanksgiving this week, we can expect to see an uptick in grocery spend as more than 70% of Americans say they plan to maintain or increase spend compared to last year. For now, Grocery spend remains strong leading into the holidays, up 8% YoY for the week of Oct. 29.  

The average number of in-store grocery brands customers shopped declined once lockdowns started. However, throughout the summer into the end of October, shoppers have steadily added more in-store grocery brands. Additionally, their basket size remains high, yet they are making fewer trips, which is driving YoY sales spikes.  While we aren’t yet seeing the large-scale stocking-up that occurred back in the Spring, retailers are beginning to see pantry loading for specific items.  We will continue to monitor over the coming weeks to determine the impact of updated guidelines for travel and indoor gatherings on overall spend.

Trends we’re watching

• How is another surge in COVID cases impacting overall spend?
• Will traditional behaviors (i.e. in-store shopping) prevail during the traditional holiday season?
• As some areas begin increasing restrictions due to virus upticks, will stocking up start again in grocery and retail?
• What will more, yet smaller, Thanksgiving gatherings do to Grocery spend as households celebrate independently?
• Will colder weather freeze restaurant spending as diners no can longer eat outside?
• Is an uptick in apparel and shoes a sign of an earlier than usual holiday shopping season?

With an advertising platform that reaches nearly 160 million bank customers, Cardlytics can help marketers create targeted campaigns that help answer: 

• When & where are customers starting to make in-store purchases?

• How quickly am I gaining or losing share vs. my industry?

• How is my eCommerce channel performing against my category?

• Are my newly acquired customers likely to churn?

Whether marketers are experiencing ups or downs in consumer spend, Cardlytics is focused on helping our clients navigate the times and drive measurable sales. Contact us today for an analysis and a campaign strategy customized for your brand.

Atlanta, GA – November 24, 2020 – Cardlytics, Inc., (NASDAQ: CDLX), an advertising platform in banks' digital channels, today announced it will present at two upcoming conferences: the Wells Fargo Securities Virtual TMT Summit and the Raymond James 2020 Virtual Technology Investors Conference.

• Chief Executive Officer and Co-Founder, Lynne Laube, and Chief Financial Officer, Andy Christiansen, will present at the Wells Fargo conference on Tuesday, December 1, 2020 at 10:40 a.m. Eastern Time and will be webcast live.

• Ms. Laube and Mr. Christiansen will also present at the Raymond James conference on Tuesday, December 8, 2020 at 4:10 p.m. Eastern Time and will be webcast live.

A live audio webcast of each event will be available on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. After the events, an archive of the webcasts will also be available for a limited time on the Cardlytics Investor Relations 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.

Atlanta, GA – October 19, 2020 – Cardlytics, Inc., (NASDAQ: CDLX), an advertising platform in banks’ digital channels, today announced that its third quarter ended September 30, 2020 financial results will be released on Monday, November 2, 2020, after market close. The company will host a conference call and webcast at 5:00 PM (ET) / 2:00 PM (PT) to discuss the company’s financial results.

A live audio webcast of the event will be available on the Cardlytics Investor Relations website at http://ir.cardlytics.com/.

A live dial-in will be available at (866) 385-4179 (domestic) or (210) 874-7775 (international).  The conference ID number is 7132159. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on November 9, 2020 at (855) 859-2056 (domestic) or (404) 537-3406 (international).  The replay passcode is 7132159. 

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.

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.