“We had our largest Q1 ever and delivered results above our expectations,” said
“This was a solid quarter and we are pleased with the execution despite issues in the global economy,” said
First Quarter 2022 Financial Results
- Revenue was
$67.9 million , an increase of 28% year-over-year, compared to$53.2 million in the first quarter of 2021. - Billings, a non-GAAP metric, was
$98.2 million , an increase of 29% year-over-year, compared to$76.3 million in the first quarter of 2021. - Gross profit was
$26.2 million , an increase of 34% year-over-year, compared to$19.5 million in the first quarter of 2021. - Adjusted contribution, a non-GAAP metric, was
$32.8 million , an increase of 35% year-over-year, compared to$24.3 million in the first quarter of 2021. - Net income attributable to common stockholders was
$33.0 million , or$0.91 per diluted share, based on 37.2 million fully diluted weighted-average common shares, compared to a net loss attributable to common stockholders of$(24.9) million , or$(0.85) per diluted share, based on 29.3 million fully diluted weighted-average common shares in the first quarter of 2021. - Non-GAAP net loss was
$(14.2) million , or$(0.38) per diluted share, based on 37.2 million fully diluted weighted-average common shares, compared to non-GAAP net loss of$(9.9) million , or$(0.34) per diluted share, based on 29.3 million fully diluted weighted-average common shares in the first quarter of 2021. - Adjusted EBITDA, a non-GAAP metric, was a loss of
$(10.5) million compared to a loss of$(3.9) million in the first quarter of 2021.
Key Metrics
- Cardlytics MAUs were 178.5 million, an increase of 6%, compared to 168.6 million in the first quarter of 2021.
- Cardlytics ARPU was
$0.36 , an increase of 13%, compared to$0.32 in the first quarter of 2021. - Bridg ARR was
$14.0 million in the first quarter of 2022.
Definitions of MAUs, ARPU and ARR are included below under the caption “Non-GAAP Measures and Other Performance Metrics.”
Second Quarter 2022 Financial Expectations
Q2 2022 Guidance | |
Billings(1) | |
Revenue | |
Adjusted contribution(2) |
(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 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
About
Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our financial guidance for the second quarter of 2022, future growth and achievement of long-range goals. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control.
Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: risks related to the uncertain impacts that COVID-19 may have on our business, financial condition, results of operations; unfavorable conditions in the global economy and the industries that we serve; our quarterly operating results have fluctuated and may continue to vary from period to period; our ability to sustain our revenue growth and billings; risks related to the integration of Dosh,
The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Non-GAAP Measures and Other Performance Metrics
To supplement the financial measures presented in our press release and related conference call or webcast in accordance with generally accepted accounting principles in
A “non-GAAP financial measure” refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies.
We have presented billings, adjusted contribution, adjusted EBITDA, adjusted Partner Share and other third-party costs, non-GAAP net loss and non-GAAP net loss per share as non-GAAP financial measures in this press release. Billings represents the gross amount billed to customers and marketers for advertising campaigns in order to generate revenue.
We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance.
We define MAUs as targetable customers or accounts that have logged in and visited online or mobile applications containing offers, opened an email containing an offer, or redeemed an offer from the
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands, except par value amounts)
2022 | 2021 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 208,293 | $ | 233,467 | |||
Restricted cash | 92 | 95 | |||||
Accounts receivable and contract assets, net | 96,529 | 111,085 | |||||
Other receivables | 5,717 | 6,097 | |||||
Prepaid expenses and other assets | 8,809 | 7,981 | |||||
Total current assets | 319,440 | 358,725 | |||||
Long-term assets: | |||||||
Property and equipment, net | 9,909 | 11,273 | |||||
Right-of-use assets under operating leases, net | 9,249 | 10,196 | |||||
Intangible assets, net | 128,250 | 125,550 | |||||
747,578 | 742,516 | ||||||
Capitalized software development costs, net | 14,115 | 13,131 | |||||
Other long-term assets, net | 2,638 | 2,406 | |||||
Total assets | $ | 1,231,179 | $ | 1,263,797 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,839 | $ | 4,619 | |||
Accrued liabilities: | |||||||
Accrued compensation | 7,910 | 12,136 | |||||
Accrued expenses | 14,631 | 19,620 | |||||
Partner Share liability | 36,995 | 46,595 | |||||
Consumer Incentive liability | 45,098 | 52,602 | |||||
Deferred revenue | 3,122 | 3,280 | |||||
Current operating lease liabilities | 6,249 | 6,028 | |||||
Current contingent consideration | 128,941 | 182,470 | |||||
Total current liabilities | 246,785 | 327,350 | |||||
Long-term liabilities: | |||||||
Convertible senior notes, net | 224,948 | 184,398 | |||||
Deferred liabilities | 167 | 173 | |||||
Long-term operating lease liabilities | 5,268 | 6,801 | |||||
Long-term contingent consideration | 38,304 | 49,825 | |||||
Other long-term liabilities | 4,037 | 4,550 | |||||
Total liabilities | 519,509 | 573,097 | |||||
Stockholders’ equity: | |||||||
Common stock, | 9 | 9 | |||||
Additional paid-in capital | 1,188,076 | 1,212,823 | |||||
Accumulated other comprehensive income | 1,853 | 486 | |||||
Accumulated deficit | (478,268 | ) | (522,618 | ) | |||
Total stockholders’ equity | 711,670 | 690,700 | |||||
Total liabilities and stockholders’ equity | $ | 1,231,179 | $ | 1,263,797 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands, except per share amounts)
Three Months Ended | |||||||
2022 | 2021 | ||||||
Revenue | $ | 67,928 | $ | 53,230 | |||
Costs and expenses: | |||||||
Partner Share and other third-party costs | 35,153 | 29,771 | |||||
Delivery costs | 6,533 | 3,938 | |||||
Sales and marketing expense | 17,648 | 13,202 | |||||
Research and development expense | 12,291 | 6,218 | |||||
General and administration expense | 20,425 | 12,175 | |||||
Acquisition and integration (benefit) costs | (4,599 | ) | 7,030 | ||||
Change in fair value of contingent consideration | (65,050 | ) | — | ||||
Depreciation and amortization expense | 9,871 | 3,065 | |||||
Total costs and expenses | 32,272 | 75,399 | |||||
Operating income (loss) | 35,656 | (22,169 | ) | ||||
Other (expense) income: | |||||||
Interest expense, net | (947 | ) | (3,045 | ) | |||
Foreign currency (loss) gain | (1,671 | ) | 319 | ||||
Total other expense | (2,618 | ) | (2,726 | ) | |||
Income (loss) before income taxes | 33,038 | (24,895 | ) | ||||
Income tax benefit | — | — | |||||
Net income (loss) | 33,038 | (24,895 | ) | ||||
Net income (loss) attributable to common stockholders | $ | 33,038 | $ | (24,895 | ) | ||
Net income (loss) per share attributable to common stockholders | |||||||
Basic | $ | 0.98 | $ | (0.85 | ) | ||
Diluted | $ | 0.91 | $ | (0.85 | ) | ||
Weighted-average common shares outstanding | |||||||
Basic | 33,741 | 29,313 | |||||
Diluted | 37,185 | 29,313 |
STOCK-BASED COMPENSATION EXPENSE (UNAUDITED)
(Amounts in thousands)
Three Months Ended | |||||
2022 | 2021 | ||||
Delivery costs | $ | 582 | $ | 309 | |
Sales and marketing | 3,704 | 2,432 | |||
Research and development | 3,204 | 1,514 | |||
General and administration | 6,095 | 2,993 | |||
Total stock-based compensation | $ | 13,585 | $ | 7,248 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
Three Months Ended | |||||||
2022 | 2021 | ||||||
Operating activities | |||||||
Net income (loss) | $ | 33,038 | $ | (24,895 | ) | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||
Credit loss expense | 346 | 1,004 | |||||
Depreciation and amortization | 9,871 | 3,065 | |||||
Amortization of financing costs charged to interest expense | 402 | 219 | |||||
Accretion of debt discount and non-cash interest expense | — | 2,321 | |||||
Amortization of right-of-use assets | 1,516 | 1,073 | |||||
Stock-based compensation expense | 13,585 | 7,248 | |||||
Change in fair value of contingent consideration | (65,050 | ) | — | ||||
Other non-cash expense (income), net | 1,574 | (141 | ) | ||||
Deferred implementation costs | — | 882 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 15,279 | 7,867 | |||||
Prepaid expenses and other assets | (725 | ) | (1,845 | ) | |||
Accounts payable | (855 | ) | 495 | ||||
Other accrued expenses | (11,569 | ) | 996 | ||||
Partner Share liability | (9,600 | ) | (6,749 | ) | |||
Consumer Incentive liability | (7,503 | ) | (4,072 | ) | |||
Net cash used in operating activities | (19,691 | ) | (12,532 | ) | |||
Investing activities | |||||||
Acquisition of property and equipment | (397 | ) | (1,377 | ) | |||
Acquisition of patents | (49 | ) | (28 | ) | |||
Capitalized software development costs | (2,314 | ) | (1,923 | ) | |||
Business acquisition, net of cash acquired | (2,274 | ) | (148,634 | ) | |||
Net cash used in investing activities | (5,034 | ) | (151,962 | ) | |||
Financing activities | |||||||
Principal payments of debt | (13 | ) | (6 | ) | |||
Proceeds from issuance of common stock | 195 | 484,713 | |||||
Debt issuance costs | — | (42 | ) | ||||
Net cash received from financing activities | 182 | 484,665 | |||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (634 | ) | 139 | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (25,177 | ) | 320,310 | ||||
Cash, cash equivalents, and restricted cash — Beginning of period | 233,562 | 293,349 | |||||
Cash, cash equivalents, and restricted cash — End of period | $ | 208,385 | $ | 613,659 |
SUMMARY OF GAAP AND NON-GAAP RESULTS (UNAUDITED)
(Dollars in thousands)
Three Months Ended | Change | |||||||||||||
2022 | 2021 | $ | % | |||||||||||
Billings(1) | $ | 98,225 | $ | 76,317 | $ | 21,908 | 29 | % | ||||||
Consumer Incentives | 30,297 | 23,087 | 7,210 | 31 | ||||||||||
Revenue | 67,928 | 53,230 | 14,698 | 28 | ||||||||||
Adjusted Partner Share and other third-party costs(1) | 35,153 | 28,889 | 6,264 | 22 | ||||||||||
Adjusted contribution(1) | 32,775 | 24,341 | 8,434 | 35 | ||||||||||
Delivery costs | 6,533 | 3,938 | 2,595 | 66 | ||||||||||
Deferred implementation costs | — | 882 | (882 | ) | (100 | ) | ||||||||
Gross profit | $ | 26,242 | $ | 19,521 | $ | 6,721 | 34 | % | ||||||
Net income (loss) | $ | 33,038 | $ | (24,895 | ) | $ | 57,933 | 233 | % | |||||
Adjusted EBITDA(1) | $ | (10,537 | ) | $ | (3,944 | ) | $ | (6,593 | ) | (167 | )% |
(1) Billings, adjusted Partner Share and other third-party costs, adjusted contribution and adjusted EBITDA are non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are presented below under the headings "Reconciliation of GAAP Revenue to Billings", "Reconciliation of GAAP Gross Profit to Adjusted Contribution" and "Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA."
RECONCILIATION OF GAAP REVENUE TO BILLINGS (UNAUDITED)
(Amounts in thousands)
Three Months Ended | Three Months Ended | ||||||||||||||||
Platform | Bridg Platform | Consolidated | Platform | Bridg Platform | Consolidated | ||||||||||||
Revenue | $ | 63,983 | $ | 3,945 | $ | 67,928 | $ | 53,230 | $ | — | $ | 53,230 | |||||
Plus: | |||||||||||||||||
Consumer Incentives | 30,297 | — | 30,297 | 23,087 | — | 23,087 | |||||||||||
Billings | $ | 94,280 | $ | 3,945 | $ | 98,225 | $ | 76,317 | $ | — | $ | 76,317 |
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED CONTRIBUTION (UNAUDITED)
(Amounts in thousands)
Three Months Ended | Three Months Ended | ||||||||||||||||
Platform | Bridg Platform | Consolidated | Platform | Bridg Platform | Consolidated | ||||||||||||
Revenue | $ | 63,983 | $ | 3,945 | $ | 67,928 | $ | 53,230 | $ | — | $ | 53,230 | |||||
Minus: | |||||||||||||||||
Partner Share and other third-party costs | 35,027 | 126 | 35,153 | 29,771 | — | 29,771 | |||||||||||
Delivery costs(1) | 4,907 | 1,626 | 6,533 | 3,938 | — | 3,938 | |||||||||||
Gross profit | 24,049 | 2,193 | 26,242 | 19,521 | — | 19,521 | |||||||||||
Plus: | |||||||||||||||||
Delivery costs(1) | 4,907 | 1,626 | 6,533 | 3,938 | — | 3,938 | |||||||||||
Deferred implementation costs(2) | — | — | — | 882 | — | 882 | |||||||||||
Adjusted contribution | $ | 28,956 | $ | 3,819 | $ | 32,775 | $ | 24,341 | $ | — | $ | 24,341 |
(1) Stock-based compensation expense recognized in consolidated delivery costs totaled
(2) Deferred implementation costs is excluded from adjusted Partner Share and other third-party costs as follows (in thousands):
Three Months Ended | Three Months Ended | ||||||||||||||||
Platform | Bridg Platform | Consolidated | Platform | Bridg Platform | Consolidated | ||||||||||||
Partner Share and other third-party costs | $ | 35,027 | $ | 126 | $ | 35,153 | $ | 29,771 | $ | — | $ | 29,771 | |||||
Minus: | |||||||||||||||||
Deferred implementation costs | — | — | — | 882 | — | 882 | |||||||||||
Adjusted Partner Share and other third-party costs | $ | 35,027 | $ | 126 | $ | 35,153 | $ | 28,889 | $ | — | $ | 28,889 |
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED)
(Amounts in thousands)
Three Months Ended | Three Months Ended | |||||||||||||||||||||
Platform | Bridg Platform | Consolidated | Platform | Bridg Platform | Consolidated | |||||||||||||||||
Net income (loss) | $ | 32,853 | $ | 185 | $ | 33,038 | $ | (24,895 | ) | $ | — | $ | (24,895 | ) | ||||||||
Plus: | ||||||||||||||||||||||
Interest expense, net | 947 | — | 947 | 3,045 | — | 3,045 | ||||||||||||||||
Depreciation and amortization expense | 7,044 | 2,827 | 9,871 | 3,065 | — | 3,065 | ||||||||||||||||
Stock-based compensation expense | 11,935 | 1,650 | 13,585 | 7,248 | — | 7,248 | ||||||||||||||||
Foreign currency loss (gain) | 1,671 | — | 1,671 | (319 | ) | — | (319 | ) | ||||||||||||||
Deferred implementation costs | — | — | — | 882 | — | 882 | ||||||||||||||||
Acquisition and integration (benefit) costs | 508 | (5,107 | ) | (4,599 | ) | 7,030 | — | 7,030 | ||||||||||||||
Change in fair value of contingent consideration | (65,050 | ) | — | (65,050 | ) | — | — | — | ||||||||||||||
Adjusted EBITDA | $ | (10,092 | ) | $ | (445 | ) | $ | (10,537 | ) | $ | (3,944 | ) | $ | — | $ | (3,944 | ) |
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET LOSS
AND NON-GAAP NET LOSS PER SHARE (UNAUDITED)
(Amounts in thousands, except per share amounts)
Three Months Ended | |||||||
2022 | 2021 | ||||||
Net income (loss) | $ | 33,038 | $ | (24,895 | ) | ||
Plus: | |||||||
Stock-based compensation expense | 13,585 | 7,248 | |||||
Foreign currency loss (gain) | 1,671 | (319 | ) | ||||
Acquisition and integration (benefit) costs | (4,599 | ) | 7,030 | ||||
Amortization of acquired intangibles | 7,145 | 998 | |||||
Change in fair value of contingent consideration | (65,050 | ) | — | ||||
Non-GAAP net loss | $ | (14,210 | ) | $ | (9,938 | ) | |
Weighted-average number of shares of common stock used in computing non-GAAP net loss per share: | |||||||
GAAP weighted-average common shares outstanding, diluted | 37,185 | 29,313 | |||||
Non-GAAP net loss per share attributable to common stockholders, diluted | $ | (0.38 | ) | $ | (0.34 | ) |
RECONCILIATION OF FORECASTED GAAP REVENUE TO BILLINGS (UNAUDITED)
(Amounts in thousands)
Q2 2022 Guidance | |
Revenue | |
Plus: | |
Consumer Incentives | |
Billings |
Contacts:
Public Relations:
aamberg@cardlytics.com
Investor Relations:
ir@cardlytics.com
Source:
2022 GlobeNewswire, Inc., source