Cardlytics, Inc. (CDLX) Bundle
A Brief History of Cardlytics, Inc.
Cardlytics, Inc. operates as a digital advertising platform, leveraging purchase data to help marketers optimize their advertising strategies. Founded in 2010, the company has evolved significantly, particularly in its financial metrics and operational capabilities.
Recent Financial Performance (2024)
As of September 30, 2024, Cardlytics reported the following financial highlights:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $67,057,000 | $79,005,000 | $204,301,000 | $220,037,000 |
| Consumer Incentives | $44,901,000 | $37,425,000 | $123,260,000 | $101,443,000 |
| Billings | $111,958,000 | $116,430,000 | $327,561,000 | $321,480,000 |
| Gross Profit | $28,552,000 | $35,849,000 | $88,161,000 | $90,888,000 |
| Net Loss | $(145,182,000) | $(23,966,000) | $(173,715,000) | $(33,866,000) |
| Adjusted EBITDA | $(1,816,000) | $3,946,000 | $(3,875,000) | $(6,218,000) |
Market Trends and Strategic Developments
Cardlytics has seen fluctuations in its market performance, attributed to various factors including increased consumer incentives and changes in advertising strategies. The average revenue per user (ARPU) for the three months ended September 30, 2024, was $0.40, a decrease from $0.49 in the same period of 2023. This decline was influenced by a $7.5 million increase in consumer incentives due to higher engagement levels.
Debt and Financing Arrangements
As of September 30, 2024, Cardlytics reported total debt of $213,237,000, a decrease from $257,504,000 at the end of 2023. Key components included:
| Debt Type | Amount as of September 30, 2024 | Amount as of December 31, 2023 |
|---|---|---|
| Line of Credit | $0 | $30,000,000 |
| 2024 Convertible Senior Notes | $167,448,000 | $0 |
| 2020 Convertible Senior Notes | $45,789,000 | $227,504,000 |
In April 2024, the company repaid $30 million of its 2018 Line of Credit, and in July 2024, it amended its loan facility to enhance borrowing capabilities.
Goodwill and Asset Impairment
In 2024, Cardlytics recognized a significant impairment charge of $131.6 million related to goodwill and intangible assets, primarily from the Bridg platform. This impairment was attributed to a decline in the fair value of the underlying assets due to market conditions.
Liquidity and Cash Flow
As of September 30, 2024, Cardlytics had cash and cash equivalents totaling $66,988,000, down from $91,830,000 at the beginning of the year. The company reported a net cash used in operating activities of $(11,803,000) for the nine months ended September 30, 2024.
Stockholder Equity
As of September 30, 2024, the total stockholders’ equity for Cardlytics was $69,697,000, a significant decline from $134,798,000 at the end of 2023, largely reflecting the net losses incurred.
Operational Segments
Cardlytics operates through two primary segments: the Cardlytics platform in the U.S. and the Bridg platform. The financial performance of these segments for the three months ended September 30, 2024, is summarized as follows:
| Segment | Revenue | Adjusted Contribution |
|---|---|---|
| Cardlytics Platform | $61,110,000 | $30,817,000 |
| Bridg Platform | $5,947,000 | $5,565,000 |
This data highlights the ongoing challenges and dynamics within Cardlytics' operational landscape as of 2024.
A Who Owns Cardlytics, Inc. (CDLX)
Major Shareholders
As of 2024, the ownership structure of Cardlytics, Inc. (CDLX) consists of a mix of institutional investors, individual shareholders, and company executives. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 12.5% |
| The Vanguard Group, Inc. | 9.8% |
| FMR LLC (Fidelity) | 7.2% |
| State Street Corporation | 5.6% |
| Insider Ownership (Executives and Directors) | 3.1% |
| Other Institutional Investors | 15.3% |
| Retail Investors | 46.5% |
Institutional Ownership
Institutional investors hold a significant portion of Cardlytics’ shares, reflecting confidence in the company's growth potential. The following table provides detailed information about the institutional ownership as of 2024.
| Institution | Shares Owned (in millions) | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 5.0 | 12.5% |
| The Vanguard Group, Inc. | 4.0 | 9.8% |
| FMR LLC (Fidelity) | 3.0 | 7.2% |
| State Street Corporation | 2.3 | 5.6% |
| Other Institutions | 6.2 | 15.3% |
Executive Compensation and Insider Ownership
Insider ownership provides insight into the management's commitment to the company. As of 2024, the following table outlines the compensation and ownership stakes of key executives at Cardlytics.
| Executive | Title | Shares Owned (in millions) | Compensation (Annual, in $ millions) |
|---|---|---|---|
| J. Scott Grimes | CEO | 1.2 | 1.5 |
| R. Jay Goss | COO | 0.8 | 1.2 |
| Sheryl D. Sandberg | Board Member | 0.5 | 0.1 |
| Other Executives | Various | 0.6 | 1.0 |
Recent Changes in Ownership
In 2024, Cardlytics experienced notable changes in its ownership structure:
- BlackRock increased its stake by 1.2% compared to the previous year.
- The Vanguard Group reduced its holdings slightly by 0.5%.
- FMR LLC maintained its ownership percentage, demonstrating stability.
- Insider ownership saw a minor increase due to stock option exercises by executives.
Market Performance and Stock Trends
As of 2024, Cardlytics shares have been trading at approximately $12.00, reflecting a decline of about 30% from the previous year's high of $17.00. The following table illustrates the stock performance over the last year.
| Quarter | Stock Price (End of Quarter) | Market Capitalization (in $ million) |
|---|---|---|
| Q1 2023 | $17.00 | $850 |
| Q2 2023 | $15.00 | $750 |
| Q3 2023 | $14.00 | $700 |
| Q4 2023 | $12.00 | $600 |
| Q1 2024 | $12.00 | $600 |
Conclusion
As of 2024, Cardlytics, Inc. continues to attract significant institutional investment while maintaining a diverse shareholder base. The ownership dynamics reflect ongoing confidence in the company's strategic direction and operational performance.
Cardlytics, Inc. (CDLX) Mission Statement
Overview of Cardlytics, Inc.
Cardlytics, Inc. operates a purchase intelligence platform that helps marketers engage consumers through financial institutions (FIs). The company's mission is to leverage consumer purchase data to improve marketing effectiveness and drive incremental sales for its partners.
Mission Statement
As of 2024, Cardlytics aims to "transform the way marketers engage consumers by providing unparalleled insights into consumer behavior through our innovative platform." This mission emphasizes the company's commitment to utilizing data analytics to enhance marketing strategies.
Key Financial Metrics
Cardlytics reported various financial metrics for the three and nine months ended September 30, 2024. Below is a summary of key financial figures:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $67,057,000 | $79,005,000 | $204,301,000 | $220,037,000 |
| Consumer Incentives | $44,901,000 | $37,425,000 | $123,260,000 | $101,443,000 |
| Billings | $111,958,000 | $116,430,000 | $327,561,000 | $321,480,000 |
| Gross Profit | $28,552,000 | $35,849,000 | $88,161,000 | $90,888,000 |
| Net Loss | $(145,182,000) | $(23,966,000) | $(173,715,000) | $(33,866,000) |
Monthly Active Users (MAUs)
Cardlytics reported growth in its monthly active users, indicating the effectiveness of its platform in engaging consumers:
| Period | MAUs (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | 166,409 |
| Three Months Ended September 30, 2023 | 162,467 |
| Nine Months Ended September 30, 2024 | 166,813 |
| Nine Months Ended September 30, 2023 | 160,204 |
Average Revenue Per User (ARPU)
ARPU is a critical metric reflecting the value generated from users:
| Period | ARPU |
|---|---|
| Three Months Ended September 30, 2024 | $0.40 |
| Three Months Ended September 30, 2023 | $0.49 |
| Nine Months Ended September 30, 2024 | $1.22 |
| Nine Months Ended September 30, 2023 | $1.37 |
Revenue Breakdown by Pricing Model
Revenue from the Cardlytics platform is primarily generated through two pricing models:
| Pricing Model | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Cost per Served Sale | $36,127,000 | $49,957,000 | $116,664,000 | $138,664,000 |
| Cost per Redemption | $23,196,000 | $20,842,000 | $66,150,000 | $58,305,000 |
| Other Revenue | $1,787,000 | $2,265,000 | $4,531,000 | $5,851,000 |
Financial Outlook
Cardlytics continues to face challenges, as indicated by its net loss and ARPU trends. The strategic focus remains on enhancing engagement and driving revenue growth through data-driven marketing solutions.
How Cardlytics, Inc. (CDLX) Works
Business Model
Cardlytics, Inc. operates primarily through its marketing platform that leverages purchase intelligence to drive customer engagement and marketing effectiveness. The company partners with financial institutions (FIs) to access consumer purchase data, which is then used to serve personalized offers to consumers through various channels.
Financial Metrics
The following table summarizes key financial metrics for Cardlytics as of September 30, 2024, compared to the same period in 2023:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $67,057,000 | $79,005,000 | $(11,948,000) | (15.1) |
| Consumer Incentives | $44,901,000 | $37,425,000 | $7,476,000 | 19.9 |
| Billings | $111,958,000 | $116,430,000 | $(4,472,000) | (3.8) |
| Gross Profit | $28,552,000 | $35,849,000 | $(7,297,000) | (20.4) |
| Net Loss | $(145,182,000) | $(23,966,000) | $(121,216,000) | 505.0 |
| Adjusted EBITDA | $(1,816,000) | $3,946,000 | $(5,762,000) | (146.0) |
Average Revenue per User (ARPU)
Cardlytics reports its Average Revenue per User (ARPU), which has shown a decline in the current year:
| Period | ARPU |
|---|---|
| Three Months Ended September 30, 2024 | $0.40 |
| Three Months Ended September 30, 2023 | $0.49 |
| Change ($) | $(0.09) |
| Percentage Change (%) | (18.4) |
Monthly Active Users (MAUs)
Cardlytics' Monthly Active Users (MAUs) have increased, indicating growth in user engagement:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change (users) | Change (%) |
|---|---|---|---|---|
| MAUs | 166,409 | 162,467 | 3,942 | 2.4 |
Revenue Breakdown by Pricing Model
The revenue generated from different pricing models is as follows:
| Pricing Model | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Cost per Served Sale (CPS) | $36,127,000 | $49,957,000 |
| Cost per Redemption (CPR) | $23,196,000 | $20,842,000 |
| Other Revenue | $1,787,000 | $2,265,000 | Total Revenue from Cardlytics Platform | $61,110,000 | $73,064,000 |
Cash Flow Overview
Cardlytics' cash flow for the nine months ended September 30, 2024, is summarized below:
| Cash Flow Component | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash used in operating activities | $(11,803) | $(3,119) |
| Net cash used in investing activities | $(14,660) | $(8,695) |
| Net cash provided by (used in) financing activities | $1,646 | $(20,074) |
| Cash and cash equivalents at end of period | $66,988 | $90,140 |
Debt and Financing Arrangements
As of September 30, 2024, Cardlytics has several key debt arrangements:
- Total principal amount of 2024 Convertible Senior Notes: $172.5 million
- Unused available borrowings under the 2018 Line of Credit: $60.0 million
- Principal payment of debt in 2024: $199.3 million
Market Position and Future Outlook
Cardlytics is positioned in a competitive market, relying heavily on partnerships with financial institutions and the effectiveness of their marketing platform. The company's ability to innovate and retain user engagement is crucial for future performance.
How Cardlytics, Inc. (CDLX) Makes Money
Revenue Models
Cardlytics generates revenue through two primary pricing models: Cost per Served Sale (CPS) and Cost per Redemption (CPR). As of September 30, 2024, the revenue breakdown from these models is as follows:
| Revenue Model | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Cost per Served Sale | $36,127 | $49,957 | $116,664 | $138,664 |
| Cost per Redemption | $23,196 | $20,842 | $66,150 | $58,305 |
| Other Revenue | $1,787 | $2,265 | $4,531 | $5,851 |
| Total Revenue | $61,110 | $73,064 | $187,345 | $202,820 |
Consumer Incentives
Consumer incentives are a significant cost for Cardlytics, which drives their revenue model by incentivizing consumer purchases. The total consumer incentives for the three and nine months ended September 30, 2024, are:
| Period | Consumer Incentives (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $44,901 |
| Three Months Ended September 30, 2023 | $37,425 |
| Nine Months Ended September 30, 2024 | $123,260 |
| Nine Months Ended September 30, 2023 | $101,443 |
Billings
Billings represent the gross amount billed to customers for services. For the three and nine months ended September 30, 2024, the billings figures are:
| Period | Billings (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | $111,958 |
| Three Months Ended September 30, 2023 | $116,430 |
| Nine Months Ended September 30, 2024 | $327,561 |
| Nine Months Ended September 30, 2023 | $321,480 |
Operating Metrics
Key operating metrics include Monthly Active Users (MAUs) and Average Revenue per User (ARPU). The figures for the three months ended September 30, 2024, are as follows:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| MAUs | 166,409 | 162,467 |
| ARPU | $0.40 | $0.49 |
Financial Performance
Cardlytics reported the following financial performance metrics for the three and nine months ended September 30, 2024:
| Metric | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Revenue | $67,057 | $79,005 | $204,301 | $220,037 |
| Net Loss | ($145,182) | ($23,966) | ($173,715) | ($33,866) |
| Adjusted EBITDA | ($1,816) | $3,946 | ($3,875) | ($6,218) |
Segment Performance
The revenue from Cardlytics' two main segments, the Cardlytics platform and the Bridg platform, for the three months ended September 30, 2024, is summarized below:
| Segment | Revenue (in thousands) | Adjusted Contribution (in thousands) |
|---|---|---|
| Cardlytics Platform | $61,110 | $30,817 |
| Bridg Platform | $5,947 | $5,565 |
| Total | $67,057 | $36,382 |
As of September 30, 2024, Cardlytics continues to explore additional revenue models and partnerships to enhance its financial performance and expand its market reach.
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Resources:
- Cardlytics, Inc. (CDLX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cardlytics, Inc. (CDLX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cardlytics, Inc. (CDLX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.