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Navigating today's fast-changing marketing landscape requires brands to be more agile than ever. Success favors those who can quickly make sense of the moment-to-moment conditions and execute the right decisions to adapt to the changes.

Brands must iterate faster on campaigns, glean insights rapidly, and pivot with swift responses—all in a highly uncertain marketplace that seems to be moving under our feet. Traditional marketing channels can only go so far; they weren't cut out for this kind of agility. But Cardlytics is designed for it.

With exclusive access to customer purchase data, Cardlytics can help you to see the market from a whole new angle. Our native ad platform works within banks' digital channels and offers unrivaled insight into consumer behavior across categories and industries. And our innovative services are especially effective at enhancing marketing agility. Backed up by Cardlytics, you'll have the knowledge you need to make smart decisions and take the bold actions that will drive your brand to new heights.

Make smarter budgeting decisions

Making business decisions during a recession or economic downturn is never easy. Often a company's first instinct is to slash marketing budgets. But that's exactly what you shouldn't do. Instead, it pays to pivot and adapt. During difficult times, it is critical to view marketing activities as a "must have" versus a "nice to have." 

Rather than reduce or eliminate marketing funds, a better long-term strategy is to reallocate resources. That's where marketing agility comes in. But in order to know where to invest your budget, you need access to customer purchase data. Cardlytics' Purchase Intelligence™ allows you to eliminate the guesswork by identifying opportunities and driving results. With powerful AI and dozens of analysts taking a fresh look at where and when customers buy, we answer critical questions that inform business decisions such as:

• Where are you gaining and losing share?
• Where else do your customers spend?
• What is your real headroom for growth?

Then we link those insights to actionable marketing strategies. Just set a goal, and we will deliver compelling offers to your best prospects and customers. It's that simple.

Turn market research into actionable data

When thinking about how to turn market research into actionable data, begin by asking yourself where you can leverage analytics to make the biggest impact. For marketing, it all starts with driving incremental sales by changing the way people buy. Cardlytics helps you identify these opportunities by using Purchase Intelligence™ to help you target the right customers in the right places. 

A key benefit is our ability to use transaction data to reach individuals with highly targeted ads within their banks' digital channels. With our precise targeting, you can reach consumers as they manage where they'll spend and save. In addition, we allow you to easily access the data you need, including where, when, and how consumers shop, so you can react quickly and win the next sale. And the best part—our powerful purchase insights will help inform your future business decisions so you can succeed in dynamic market conditions.

React faster to real-world events

As we all know, the world can change in an instant. Brand responses need to be just as swift to capture the zeitgeist and meet their audience at the moment. Decision-making moves fast. Cardlytics' customer purchase data empowers you to make those choices with confidence, clarity, and efficiency. The insights we provide can inform numerous facets of your marketing efforts, including:

• Determine your marketing spend by channel and audience.
• Adjust to seasonal changes and fluctuations in demand.
• Allocate more resources where opportunities are greater (quickly "turn on and off the spigot" of marketing spend as needed).
• Retain and grow your audience by targeting only the customers that drive your specific business goals forward.

With agile digital marketing tactics backed by relevant data, brands can generate provable, predictable sales revenue—no matter what changes are happening in the world.

Identify industry trends earlier

Spotting tomorrow's trends today can have a massive impact on businesses that want to get a jump on the action. Cardlytics' unique reporting and measurement offer a much broader view of the marketing landscape, which enables brands to see future trends on the horizon before everybody else.

No matter what your industry is, Cardlytics' fresh perspective that is especially beneficial for trendspotting:

1. See customer purchase data for your entire industry, including your competitors. With these insights, we can tell if consumers' preferences and purchases are changing across your category as a whole or only in one area or for one brand.
2. See consumers' spending behavior across all categories, which is called a "whole wallet" view. How much are shoppers spending? When? Where? How often? This comprehensive approach offers a deeper, more holistic understanding of your audience so you can more accurately identify trends.
3. See your performance assumptions validated—or not. For example, you may think you're doing a fantastic job with your most loyal segment of customers. But what if you discovered they were still shopping at your biggest competitor? Only Cardlytics data gives you the full story.

Spend more efficiently

Keeping your marketing expenditure as smart and streamlined as possible will give you a wider range of options and greater opportunities for success. Miscues in ad placement or targeting can cause brands to waste time and money. But with our innovative insights, you'll be equipped with powerful tools to enhance your campaigns' efficiency:

• Ultra-precise audience targeting based on actual transaction data.
• Pricing based on actual performance, not just impressions.
• Ad placements designed to drive specific business goals such as growth, customer retention, or loyalty.

Be ready for whatever's next

Changes are always on the horizon of the marketplace, from tiny pop-up trends to tidal-wave challenges like the pandemic. Our data-driven approach keeps you better informed, so you'll be prepared to face these changes and quickly adjust your marketing strategy.

When you partner with Cardlytics, you'll stay ahead of the curve:

• Benefit from exclusive access to consumer transaction data on1 out of every 2  card swipes in the U.S., giving you a unique perspective on spending behavior in your industry and the overall market.
• Gain valuable insight from expert reports on consumer spending and the state of industries.
• Track your marketing performance with customized campaign reports that make it easy to understand what the data means on a human level.
• Tap into insights from other industries to reach new customers and stay in front of changing consumer behaviors.
• See changes over time with in-depth market share analysis so you can understand where your business ranks and where you should focus your marketing efforts.

Make data-backed decisions with confidence

Marketing is an ever-changing arena where agility is essential for brands that want to respond to fluctuations and foresee future trends. It's both a science and an art, and success requires an equally deft approach that combines eye-opening data with expert understanding—and that's exactly what Cardlytics provides.

Technological advances are accelerating, and the needs of consumers continue to evolve. The brands that stay one step ahead of the curve are the ones that will be able to connect with their audiences and change their lives for the better. And that's what it's all about: making sure that everybody wins in a world that's moving faster and faster, whether you're saving shoppers money or showing them a new product to enhance their daily routine.Would you like to learn more? Contact us today to discover just how nimble your marketing team can be when you partner with Cardlytics.

When thinking about dining options, convenience stores don’t automatically come to mind, but industry data shows this might be changing. According to Bluedot, 59% of customers consider purchasing a meal from a convenience store when stopping for fast food. So, we dug into our data to see if our data agreed... and surprise, it did! Here is what we found: 

Convenience is stealing trip share from quick service

Since 2019 convenience share has increased 2 points. We know this increase is due to meal-like food share instead of normal convenience snacking because (1) we excluded all pay at pump transactions and (2) gas stations with more extensive menus (pizza, burgers) have higher walk-in rates than gas stations with “standard” offerings (soda, chips).  

Customers are using convenience mobile ordering channels

Convenience mobile ordering customer penetration has increased, growing from 0.5% in Q1 2019 to 1.1% in Q2 2022. 

Quick service is losing trips to convenience and full service restaurants

Consumer convenience trip share increased 0.05% from July 2021 to July 2022.  During that same period QSR trip share went down 1.2%. FSR was the largest share stealer, shifting 1.2% from QSR.

QSR is losing loyal customers

QSR’s lost trip share comes from loyal and frequent customers. Loyal customers’ QSR trip share went down 2.3% while frequent customers’ share went down 0.4%.  Interestingly, one-timers, light & Infrequent customers altogether grew their QSR trip share by 2.1%. 

What does this mean for you?

Our data tells us that QSR needs to pay close attention to both conventional and non-conventional competitors. Specifically, special attention needs paid to maintaining loyal customers via reducing churn and boosting retention. Luckily Cardlytics can help you do just that!  Sign up to get our insights delivered to your inbox, early, and get ahead of what's happening in the restaurant industry

Today is my first day at Cardlytics, and I am raring to get started!  

The outpouring of support and warm welcomes I have received to date from clients, partners, employees, and investors has been nothing short of amazing, and I look forward to connecting with everyone personally in the coming days.  

In terms of how I plan to spend my time in these initial few days and weeks, I plan to concentrate on two things. First and foremost, I plan to listen. Listen to our customers. Listen to our employees. And listen to the many other stakeholders that have worked tirelessly to make Cardlytics into the purchase intelligence leader it is today.  

Second, I plan to immerse myself into the finer details of the business. I’m excited to dive into not only the many legacy offerings of business, but also the exciting opportunities presented by some of our newest divisions like Bridg, Dosh, and Entertainment.  

At the end of the day, my leadership philosophy is pretty simple: 

• Employees are the most valuable assets of an organization. Build a culture of inclusion and embrace cognitive diversity, which allows for different perspectives and experiences that can’t be replicated.  

• Make decisions that are rooted in data.  It saves time, holds us accountable, and challenges us to continuously innovate.   

• Take calculated risks and invest in change. Stay ahead of the curve on the things that we know will change, not those that will stay the same. 

I remain as excited as ever with the opportunity in front of us. And I know many of our partners share this same sentiment.  There’s so much potential to unlock continued growth for our business and our customers, and I am eager to hit the ground running for the next chapter of Cardlytics. 

ATLANTA, GA – May 10, 2022 – Cardlytics (NASDAQ: CDLX) (the “Company”), a digital advertising platform, today announced that its Board of Directors has approved the repurchase of up to an aggregate of $40.0 million of its Common Stock.

“We believe that the repurchase program is a good investment of available funds and underscores our commitment to enhancing shareholder value,” said Cardlytics CFO, Andy Christiansen.

The repurchases will be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. The repurchase program is expected to continue through the end of the current fiscal year unless extended or shortened by the Board of Directors.

The repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.

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.

Direct-to-consumer (DTC) brands are often referred to as disruptors because they use digital and mobile channels to sell directly to consumers. By bypassing distributors and third parties, DTC brands can deliver a more convenient shopping experience while building a more direct relationship with customers. 

The movement toward DTC gained even more momentum during the pandemic. In fact, direct-to-consumer trends show that US DTC ecommerce sales have more than tripled in the past six years. Experts estimate that by the end of 2024, the market will grow to over $212 billion.

But how will DTC continue innovating and expanding to compete against traditional retailers? Let's review the key factors influencing the next evolution of direct-to-consumer disruption.

Key takeaways:

• Direct-to-consumer brands use emotionally charged messaging to build one-on-one customer relationships.
• Most DTC brands find success, meet consumer needs, and accelerate growth using a single channel.
• Successful DTC brands know how to maintain emotional connections by expanding customer loyalty programs.

How Has DTC Disrupted Traditional Retail?

With the rise of digital commerce, the modern consumer prefers personalization and direct engagement with the brands they buy from. The DTC model is built on relationships, and that's one of the main reasons these brands have seen so much success in recent years. DTC brands also offer other advantages over traditional retailers, which gives them a competitive edge.

These include:

• Emotional storytelling: according to direct-to-consumer trends, companies in the DTC space are pivoting to "ethos" as a competitive differentiator. Instead of focusing on manufacturing and distribution, the focus is on building one-to-one relationships through emotionally charged messaging on mobile and social media platforms.
• More attractive pricing: DTC brands enjoy more profits by eliminating the middleman. This approach provides more control over pricing and discounts, leading to better margins and perception of product value.
• Better customer experience: having access to detailed customer data is a huge advantage for DTC companies. That's because customer insights give brands visibility into who their ideal buyer is so they can deliver a personalized customer experience.

However, while direct-to-consumer trends indicate incredible growth, traditional retailers and wholesalers are catching up. So, how do DTC brands evolve to remain competitive? The answer is embracing an omnichannel marketing strategy.

DTC Embraces Omnichannel

Most DTC brands reached success by leveraging a single channel. Think about these hypothetical scenarios where that's the case:

A mattress company launched its website featuring one model at an affordable price delivered directly to a customer's home. That company reached $100 million in sales in less than two years. In another scenario, an eyewear brand launched its website in 2010. The goal is to deliver high-quality frames to a customer at a low price. Five years later, that company's value reached $1.2 billion.

But these companies have had to embrace an omnichannel marketing strategy to accelerate growth and meet new consumer demands. That means relinquishing control over some areas of distribution. For example, the mattress company sells its products through stores and conventional retailers.

That takes us to another hypothetical scenario. A men's razor company launched its website in 2013. But, today, these products are sold primarily in large retailers. As a result, the meaning of D2C has expanded. It no longer describes brands that only sell through their own direct online channel. Today you can find small D2C brands on Amazon that also have their own website. And then you have big brands that have their own online presence.

Expansion of Customer Loyalty Programs

D2C brands rely on the power of marketing much more than typical brands. Specifically, top-of-funnel branding activities are crucial in helping launch a product successfully. Then, as those brands grow, they must find ways to carry the emotional connection they have established to customer retention models. Retention is a powerful growth lever. For one thing, loyal customers spend 67% more than new customers. Then combine that with the fact that it costs five to 25 times less to retain a customer than acquire a new one.

D2C brands must evolve, or they'll perish over time. That means leaning into omnichannel marketing strategies and leveraging customer loyalty programs. Fortunately, those elements align with emotional storytelling and connection components that propelled D2C companies early on. With a view into 1 in 2 U.S card transactions, Cardlytics' Purchase Intelligence offers powerful insights that help brands shape their omnichannel marketing strategy. Contact us today for an analysis and campaign strategy customized for your brand.

The face of retail is changing. Over the last few years, spending with direct-to-consumer (DTC) brands has nearly doubled. While the retail industry suffered pandemic-driven setbacks, DTC ecommerce steadily grew. According to Cardlytics first-party data, DTC spending jumped from 8% in 2020 to 14% in 2021.

The growth in DTC eCommerce spending reveals bountiful opportunities for retail brands to improve sales performance by taking a page out of the DTC playbook.

Key takeaways:

• DTC companies capitalize on the tech-enabled service model, abandoning traditional retail outlets.
• As the demand for online purchase power increased during the pandemic, DTC ecommerce brands met that need effortlessly.
• DTC brands know how to build authentic customer relationships by delivering consistent and honest messaging.

How Has the Direct-to-Consumer Model Transformed ecommerce?

Direct-to-consumer companies cut out the middleman to save consumers money. But this business model is much deeper than a cost-saving ploy. Direct-to-consumer trends feature niche companies that embrace a digital-first operating model, appealing to younger adult audiences with significant buying power. 

Successful DTC ecommerce brands leverage technology to enable a complete product lifecycle feedback loop. These brands maximize their value proposition by providing simple solutions to common consumer complaints. When the cost of disposable razors had reached a fever pitch with shoppers in the retail market, DTC brands, like Dollar Shave Club, offered a solution–quality razors at affordable prices, delivered to your door.

What Can the Retail Industry Learn from DTC Brands?

Consumers flocked to DTC ecommerce, and while the easy success seen with these models began with a good value, there's a little more to it. These disruptors are doing more than filling a need. They're breathing new life into stale business models by abandoning traditional retail outlets for a tech-enabled service model. 

DTC companies are capitalizing on the digital experience by focusing on user-friendly design to create a simple, effortless shopping experience. And, with quality products and genuine interactions – all things the modern consumer craves, DTC brands are going beyond marketing claims to build authenticity.

DTC Marketing Abandons Outdated Systems for Reimagined Service Models

The idea that manufacturers don't need to rely on retailers to distribute their products fuels the entire direct-to-consumer market. The retail market, ranging from mom-and-pop shops to big box stores, might be the clear winner of the one-stop-shop experience; but there's something more convenient out there–home delivery.DTC brands are keen on data-driven strategies with nimble agility. They wholeheartedly embrace the idea of riding life on the leading edge of change. For example, when Warby Parker closed its 160+ physical locations during the pandemic, its tech-friendly, digital-first strategy paid off big. The brand effortlessly slid back into its eCommerce roots with the right technology in place to meet the needs of those looking for prescription glasses from a safe distance.

Capitalizing on a Mobile-First Experience

The customer experience is the top priority in DTC marketing. These disruptive brands understand that consumers want quick, simple, endlessly personalized interactions to their specific needs – something that's hard to achieve without technology. 

According to Salesforce, over three-quarters (76%) of consumers think companies should understand their expectations and needs. And as of 2020, Gartner says that over 40% of all data analytics projects are geared toward improving the customer experience. Retail is making headway, but this is one area where DTC brands are gaining the most ground.

These companies have built their service model based on the tech-friendly culture of millennial and Gen Z consumers, investing most of their resources into building a simple and efficient customer experience. Ordering products and services with user-friendly apps and AI integrations feels almost effortless.

Focusing on User Design & the Customer Experience

We've also noticed many DTC models obsessively prioritize the customer experience. It's not a coincidence that these brands favor clean, simplistic web design with intuitive features. Sure, the business model of providing just one specialized product or service helps keep the clutter down. Still, it's more than that – these brands are hyper-focused on delivering a seamless customer journey filled with big promises, bigger follow-throughs, and effortless upkeep.

While some retailers might shy away from the scaled-down product catalogs serving as the cornerstone of DTC ecommerce, there's something to be said for offering too many options. Decision paralysis, fueled by an overabundance of choices, often leads to abandoned carts. The feature of the traditional retail business model might be what stands in the way of future success as direct-to-consumer commerce gains a foothold, eating up competition across multiple categories.

Living and Breathing Brand Authenticity Through Social Media

Another cornerstone of successful DTC ecommerce is authenticity. Consumers are more driven than ever before to spend their money with values-aligned services and providers. In the last few years, hot-button topics like sustainability, diversity and inclusion, and employee culture have made news headlines. Many retail brands have been quick to take note of how important these issues are to consumers.

DTC brands seem to already be in the know, placing authenticity high on the company values list. Given the small, curated audience and built-in need for strong loyalty, the DTC business model is rooted in building authentic relationships. These brands are very hands-on with their customer communications, weaving between an active social media presence and a strong customer relations approach. Wherever customers are in their journey, the DTC business model is there, delivering a consistent and honest message.

Retail Brands Can Adopt a Similar Approach, Meeting Consumers Where They Are

Direct-to-consumer marketing trends and business models have laid out a clear path for the retail industry to follow suit. Instead of relying on convenience or bargain prices to get foot traffic, retail brands must adapt to modern consumerism with technology and a passion for customer-driven simplicity. This change requires the courage to try new things and a willingness to engage with customers on an authentic level. Change begins with quality insights, from reimagining the customer experience to embracing a digital-first approach. Cardlytics purchase intelligence can provide meaningful insights to help retail brands harness the same level of loyalty and engagement that direct-to-consumer brands have found. Imagine a future where weekly groceries arrive on auto-delivery and smartphones become personal shoppers, finding and previewing curated collections of new retail merchandise. Cardlytics first-party data insights can help transform your retail strategy.

Analysis offers insight from previous back-to-school seasons ahead of the second-largest shopping event of the year

ATLANTA – August 1, 2022 – Cardlytics (NASDAQ: CDLX) released its annual back-to-school (BTS) trend analysis, which underscores the importance of providing consumers with an omnichannel shopping experience to maximize consumer loyalty. The analysis, which comes as 62 percent of consumers start their back-to-school shopping this month, examines previous BTS spending behaviors for a sense of what to expect during the 2022 BTS shopping season amid the backdrop of rising inflation.

Key Takeaway

Notably, the analysis found that consumers who shop across channels (e.g., in-store, online, apps, etc.) spend more. In 2021, shoppers using just one channel spent an average of $900 during the back-to-school shopping season, but those who purchased items across multiple channels spent over $1,000. Even as customers spent more across both on and offline channels in 2022, in-store shopping remains the preferred method for most. It also shows that in-store sales are slowly returning to pre-COVID levels at 63 percent of total spend in 2021, compared to 61 percent in 2020, and 73 percent in 2019.

As shoppers gear up for the 2022 season, inflation may drive these figures higher due to spend per purchase, but that does not necessarily equate to increased purchases in any given category. Cardlytics’ Q1 2022 State of Spend report saw a slowdown in spending toward the end of Q1 as consumers made adjustments to accommodate increased costs in goods, food, gas, and housing brought on by the highest inflation seen since the 1980s. This could continue into the BTS and holiday 2022 seasons as customers focus on purchasing essentials and possibly engage in more one-stop shopping.

“Convincing your customers to convert on both online and offline channels is essential to maximizing incremental sales and customer loyalty,” said Nate Bucholz, Cardlytics’ vice president of DTC, Subscription, and Retail. “Our insights continue to show that people shopping across a brand’s available channels spend more than those who shop in only one channel. And they are more likely to return. Looking at your customer base through the lens of the channel they shop can help you get the most impact from your marketing spend. I would encourage brands to offer the best sales and cashback rewards now to acquire and retain customers as they head into the holidays, which is the last big shopping season of the year.”

_{Click here or on the image above to open the full-size infographic in a new window.}

Additional Trend Highlights

The back-to-school season is the second largest shopping event of the year behind the December holiday season, making up 15 percent of annual consumer spending. The analysis includes sales for apparel, home décor, office supplies, sporting goods, shoes, and mass merchandiser, finding that:  

• Overall spend was flat with only a 1.2 percent increase between 2020 and 2021.  This is likely due to declines in customer volume and total purchases – defined as the number of actual customers making purchases in these categories. This trend may continue through the 2022 BTS season with minimal growth as customers tighten their wallets and only increase their spending in response to increased prices.

• Apparel had a strong 2021 back-to-school season as parents rushed to refresh wardrobes for in-person schooling. The data showed that spend increased by 24.3 percent year-over-year in this category, driven by strong customer and purchase growth. Spend increases in this category were due to genuine growth and are not a byproduct of current inflation. It is predicted that due to tightening economic conditions and the fact that people spent significantly more last year than the year before, it is likely that there will be a flat or negative spend growth for 2022.

• Shoes and children’s apparel saw significant increases as well last year. Shoes had a nearly 30 percent year-over-year increase while children’s apparel saw a 13.2 percent jump. But, shoe companies are bracing for weaker sales for the latter half of this year, which could impact overall growth for this category in 2022.

• Consumers cut back on home and office supplies in 2021, and this trend has a strong chance of continuing as more children return to classrooms in 2022. Home and office supply spending was down 8 and 8.8 percent, respectively, as fewer purchases were needed for homeschooling and to counterbalance heavy spending in previous years.

• Department stores also experienced greater sales with increases across volume of shoppers, number of purchases, and spend per purchase. Year-over-year spend went up by 22.4 percent. Spending in this category may also feel the impact of inflation, particularly when it comes to spend per purchase – while consumers may have less items in their cart, this may be offset by increased costs for each item.

The review covers an eight-week period beginning the second weekend of July and lasting through Labor Day. Early insights from the first two weeks of July 2022 show that spend is down 8.4 percent YoY as customers brace for economic uncertainty. This points to a decline in the number of customers and purchases resulting in a sluggish start this season across all categories. To view the full trend analysis, visit: https://www.cardlytics.com/blog/customer-loyalty-is-the-battleground-for-back-to-school/

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.

Atlanta, GA – August 2, 2022 – 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 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 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.

Lynne Laube to Retire, Serve as Strategic Advisor During Transition

ATLANTA, July 20, 2022 -- Cardlytics, (NASDAQ: CDLX), an advertising platform in banks’ digital channels, today announced that its Board of Directors has named Karim Temsamani as Chief Executive Officer of the company, effective September 1, 2022. Temsamani will also be joining the Board of Directors. He will succeed co-founder and current CEO, Lynne Laube, who has announced her intention to retire. Laube will continue to serve on the Board until its 2023 annual meeting of stockholders and will remain a strategic advisor until May 2024 to ensure a smooth transition.

Temsamani joins Cardlytics from Stripe where he most recently served as Head of Global Partnerships. Prior to that role, he served as Head of Banking and Financial Products, leading the strategic vision and execution across product and engineering, including Stripe Treasury, Issuing, Capital and Connections. Preceding Stripe, Temsamani spent nearly 12 years at Google, where he oversaw all of Google’s sales and operations across the Asia-Pacific region, determining the strategy for Google products including AdWords, AdMob, Google Maps, Google Apps for Business, DoubleClick Ad Exchange, YouTube, and AdSense. While at Google, he also established its mobile advertising business as its Global Head of Mobile, overseeing the growth of the business worldwide.

“I am honored to take the helm of this amazing company that Lynne, Scott, and the team have built – an industry leader that creates undeniable impact for its brands and partners while delivering real value to people,” said Temsamani. “There is so much potential for further growth following the company’s recent acquisitions and solid progression against its strategic initiatives, and I look forward to leveraging the strong foundation that has been developed.”

“After nearly 15 years of leading the company, I am truly thrilled to hand the reigns over to Karim as I know he is the right leader for our next generation of growth,” said Laube. “Karim brings a fresh perspective, coupled with deep expertise that is perfectly suited to expand our partnerships and enhance our platform. I can’t express the gratitude I have for the people who have worked so hard to make the Cardlytics vision into a reality. I remain as energized as ever and look forward to helping Karim and the entire team with this seamless transition.”

“After an extensive and lengthy search, I am pleased to announce that Karim is joining Cardlytics as CEO in September,” said Scott Grimes, Executive Chairman and Co-Founder of Cardlytics. “Karim brings a wealth of experience and a strategic vision to lead Cardlytics into its next chapter. He is a dynamic leader with a tremendous background in advertising alongside a keen understanding of the FinTech world. On behalf of the Board, I want to thank Lynne for her strong leadership and partnership. Her continued commitment to building and growing the company in the months ahead as she looks to retire will serve as a capstone to her highly successful and ground-breaking career.”

Second Quarter 2022   

On July 20, 2022, Cardlytics, Inc. (the “Company”) updated its billings, revenue, and adjusted contribution guidance for the quarter ended June 30, 2022 to be in the following ranges (in millions):

 Q2 2022 GuidanceBillings⁽¹⁾$106.5 - $108.5Revenue$74.5 - $76.5Adjusted contribution⁽²⁾$34.0 - $36.0

(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."

(2)   A reconciliation of adjusted contribution to GAAP gross profit on a forward-looking basis is presented below under the heading "Reconciliation of Forecasted GAAP gross profit to adjusted contribution."

Reconciliation of Forecasted GAAP Revenue to Billings

 Q2 2022 Guidance
(amounts in millions)Revenue$74.5 - $76.5Plus: Consumer Incentives31.0 - 33.0Billings$106.5 - $108.5

Reconciliation of Forecasted GAAP Gross Profit to Adjusted Contribution

 Q2 2022 Guidance
(amounts in millions)Revenue$74.5 - $76.5Minus: Partner Share and other third-party costs39.5 - 41.5Delivery costs7.0 - 9.0Gross profit$25.5 - $27.5Plus: Delivery costs7.0 - 9.0Adjusted contribution$34.0 - $36.0

About Karim Temsamani

Karim Temsamani joined Stripe in April 2019 to lead strategic vision and execution across product and engineering for Financial Products (Stripe Capital, Stripe Treasury and Stripe Issuing). In November 2021, Karim transitioned to running Global Partnerships for Stripe across banks, networks, and technology companies.

Prior to Stripe, he spent 12 years at Google where he oversaw, for the last six years, all of Google’s sales and operations across the Asia-Pacific region, determining the strategy for 16 offices and the regional business strategy for Google products including AdWords, AdMob, Google Maps, Google Apps for Business, DoubleClick Ad Exchange, YouTube and AdSense.

Prior to this, he established Google’s mobile advertising business as its Global Head of Mobile. He oversaw the growth of Google’s mobile advertising business worldwide, leading the teams charged with providing advertising services and solutions to thousands of advertisers, developers, and publishers.

From 2007 to 2010, Karim was Managing Director, Google Australia and New Zealand, leading its business and strategic partnerships in those countries. Karim joined Google from Fairfax Media, where he was Commercial Director for Newspapers (responsible for agency and group sales, trade marketing and business development) and Group Director, Fairfax General Magazines.

He started his career in the media and publishing industries and graduated in International Affairs at the European Business School Paris. With a family background from Morocco, he was born and raised in France.  

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, Detroit and Visakhapatnam. Learn more at www.cardlytics.com.