“Our results in the first quarter reflect the progress we have made at delivering more value to both consumers and our advertising partners,” said
"Q1 was a good start to the year. We are seeing strong momentum in our international business and are making progress on our longer-term initiatives,” said
First Quarter 2024 Financial Results
- Revenue was
$67.6 million , an increase of 5% year-over-year, or 8% excluding Entertainment. - Billings, a non-GAAP metric, was
$105.2 million , an increase of 10% year-over-year, or 12% excluding Entertainment. - Adjusted Contribution, a non-GAAP metric, was
$37.1 million , an increase of 20% year-over-year, or 27% excluding Entertainment. - Net Loss was
$(24.3) million , or$(0.56) per diluted share, based on 43.2 million fully diluted weighted-average common shares, compared to a Net Income of$13.6 million , or$0.40 per diluted share, based on 36.7 million fully diluted weighted-average common shares in the first quarter of 2023. - Adjusted EBITDA, a non-GAAP metric, was a gain of
$0.2 million compared to a loss of$(6.1) million in the first quarter of 2023. - Adjusted Net Loss was
$(4.1) million , or$(0.09) per diluted share, based on 43.2 million fully diluted weighted-average common shares, compared to Adjusted Net Loss of$(9.2) million , or$(0.25) per diluted share, based on 36.7 million fully diluted weighted-average common shares in the first quarter of 2023. - Net cash used in operating activities was
$(17.6) million , a decrease of$7.6 million compared to net cash used in operating activities of$(10.1) million in the first quarter of 2023. - Free Cash Flow, a non-GAAP metric, was
$(22.4) million , a decrease of$9.5 million compared to$(12.9) million in the first quarter of 2023.
Key Metrics
- Cardlytics MAUs were 168.5 million, an increase of 7% year-over-year, compared to 158.1 million in the first quarter of 2023.
- Cardlytics ARPU was
$0.40 compared to$0.41 in the first quarter of 2023.
Definitions of MAUs and ARPU are included below under the caption “Non-GAAP Measures and Other Performance Metrics."
SUMMARY OF GAAP AND NON-GAAP RESULTS (UNAUDITED) (Dollars in thousands) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
2024 | 2023 | 2023 | Change % | Change % | |||||||||||||
Billings(1) | $ | 105,216 | $ | 95,626 | $ | 93,876 | 10.0 | % | 12.1 | % | |||||||
Consumer Incentives | 37,608 | 31,295 | 31,295 | 20.2 | % | 20.2 | % | ||||||||||
Revenue | 67,608 | 64,331 | 62,581 | 5.1 | % | 8.0 | % | ||||||||||
Partner Share and other third-party costs | 30,543 | 33,384 | 33,358 | (8.5 | )% | (8.4 | )% | ||||||||||
Adjusted Contribution(1) | 37,065 | 30,947 | 29,223 | 19.8 | % | 26.8 | % | ||||||||||
Delivery costs | 6,173 | 6,424 | 6,424 | (3.9 | )% | (3.9 | )% | ||||||||||
Gross Profit | $ | 30,892 | $ | 24,523 | $ | 22,799 | 26.0 | % | 35.5 | % | |||||||
Net (Loss) Income | $ | (24,275 | ) | $ | 13,608 | $ | 14,751 | n/a | n/a | ||||||||
Adjusted EBITDA(1) | $ | 226 | $ | (6,091 | ) | $ | (5,639 | ) | n/a | n/a | |||||||
Adjusted Contribution | |||||||||||||||||
% of Billings | 35.2 | % | 32.4 | % | 31.1 | % | |||||||||||
% of Revenue | 54.8 | % | 48.1 | % | 46.7 | % | |||||||||||
Adjusted EBITDA | |||||||||||||||||
% of Billings | 0.2 | % | (6.4 | )% | (6.0 | )% | |||||||||||
% of Revenue | 0.3 | % | (9.5 | )% | (9.0 | )% | |||||||||||
(1) Billings, 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 (Loss) Income to Adjusted EBITDA." | |||||||||||||||||
(2) The column excludes results from the Entertainment business. We sold and transferred substantially all of the assets of Entertainment in |
Second Quarter 2024 Financial Expectations
Q2 2024 Guidance | YoY Change % | YoY Change % | |||
Billings(1) | 5% - 15% | 7% - 17% | |||
Revenue | (5%) - 6% | (3%) - 8% | |||
Adjusted Contribution(2) | 7% - 20% | 12% - 25% | |||
Adjusted EBITDA(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 and a reconciliation of Adjusted EBITDA to Net (Loss) Income 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. | |||||
(3) The column excludes results from the Entertainment business. We sold and transferred substantially all of the assets of Entertainment in | |||||
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, the potential for higher Billings growth in the future and our financial guidance for the second quarter of 2024. 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 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 our substantial dependence on our
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 Net Loss and Adjusted Net Loss per share as non-GAAP financial measures in this press release. Billings represents the gross amount billed to customers and marketers for services 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 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) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 97,766 | $ | 91,830 | |||
Accounts receivable and contract assets, net | 105,164 | 120,622 | |||||
Other receivables | 5,834 | 5,379 | |||||
Prepaid expenses and other assets | 9,491 | 6,097 | |||||
Total current assets | 218,255 | 223,928 | |||||
Long-term assets: | |||||||
Property and equipment, net | 2,906 | 3,323 | |||||
Right-of-use assets under operating leases, net | 8,342 | 7,310 | |||||
Intangible assets, net | 32,218 | 35,003 | |||||
277,202 | 277,202 | ||||||
Capitalized software development costs, net | 27,005 | 24,643 | |||||
Other long-term assets, net | 3,023 | 2,735 | |||||
Total assets | $ | 568,951 | $ | 574,144 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,974 | $ | 4,425 | |||
Accrued liabilities: | |||||||
Accrued compensation | 8,091 | 11,662 | |||||
Accrued expenses | 4,317 | 9,587 | |||||
Partner Share liability | 35,536 | 48,867 | |||||
Consumer Incentive liability | 43,964 | 52,678 | |||||
Deferred revenue | 1,994 | 2,405 | |||||
Current operating lease liabilities | 2,079 | 2,127 | |||||
Current contingent consideration | 2,595 | 39,398 | |||||
Total current liabilities | 102,550 | 171,149 | |||||
Long-term liabilities: | |||||||
Convertible senior notes, net | 227,870 | 227,504 | |||||
Long-term operating lease liabilities | 7,652 | 6,391 | |||||
Long-term deferred revenue | 51 | 67 | |||||
Long-term debt | 30,024 | 30,073 | |||||
Long-term contingent consideration | 1,667 | 4,162 | |||||
Total liabilities | $ | 369,814 | $ | 439,346 | |||
Stockholders’ equity: | |||||||
Common stock, | $ | 9 | $ | 9 | |||
Additional paid-in capital | 1,331,628 | 1,243,594 | |||||
Accumulated other comprehensive income | 3,047 | 2,467 | |||||
Accumulated deficit | (1,135,547 | ) | (1,111,272 | ) | |||
Total stockholders’ equity | 199,137 | 134,798 | |||||
Total liabilities and stockholders’ equity | $ | 568,951 | $ | 574,144 | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in thousands, except per share amounts) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenue | $ | 67,608 | $ | 64,331 | |||
Costs and expenses: | |||||||
Partner Share and other third-party costs | 30,543 | 33,384 | |||||
Delivery costs | 6,173 | 6,424 | |||||
Sales and marketing expense | 14,118 | 13,948 | |||||
Research and development expense | 13,048 | 11,564 | |||||
General and administration expense | 14,485 | 13,070 | |||||
Acquisition, integration and divestiture cost | — | 1,723 | |||||
Change in contingent consideration | 5,817 | (34,584 | ) | ||||
Depreciation and amortization expense | 6,250 | 6,575 | |||||
Total costs and expenses | 90,434 | 52,104 | |||||
Operating (Loss) Income | (22,826 | ) | 12,227 | ||||
Other expense (income): | |||||||
Interest expense, net | (819 | ) | (8 | ) | |||
Foreign currency (loss) gain | (630 | ) | 1,389 | ||||
Total other (expense) income | (1,449 | ) | 1,381 | ||||
(Loss) Income before income taxes | (24,275 | ) | 13,608 | ||||
Net (Loss) Income | $ | (24,275 | ) | $ | 13,608 | ||
Net (Loss) Income per share, basic | $ | (0.56 | ) | $ | 0.41 | ||
Net (Loss) Income per share, diluted | $ | (0.56 | ) | $ | 0.40 | ||
Weighted-average common shares outstanding, basic | 43,248 | 33,595 | |||||
Weighted-average common shares outstanding, diluted | 43,248 | 36,727 | |||||
STOCK-BASED COMPENSATION EXPENSE (UNAUDITED) (Amounts in thousands) | |||||
Three Months Ended | |||||
2024 | 2023 | ||||
Delivery costs | $ | 643 | $ | 568 | |
Sales and marketing expense | 3,141 | 3,053 | |||
Research and development expense | 3,950 | 4,085 | |||
General and administration expense | 3,251 | 262 | |||
Total stock-based compensation expense | $ | 10,985 | $ | 7,968 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Operating activities | |||||||
Net (Loss) Income | $ | (24,275 | ) | $ | 13,608 | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Credit loss expense (gain) | 1,570 | (246 | ) | ||||
Depreciation and amortization | 6,250 | 6,575 | |||||
Amortization of financing costs charged to interest expense | 445 | 407 | |||||
Amortization of right-of-use assets | 549 | 1,235 | |||||
Stock-based compensation expense | 10,985 | 7,968 | |||||
Change in contingent consideration | 5,817 | (34,584 | ) | ||||
Other non-cash expense (income), net | 667 | (905 | ) | ||||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 13,323 | 21,405 | |||||
Prepaid expenses and other assets | (3,450 | ) | (369 | ) | |||
Accounts payable | 125 | (1,691 | ) | ||||
Other accrued expenses | (7,634 | ) | (3,136 | ) | |||
Partner Share liability | (13,291 | ) | (9,701 | ) | |||
Consumer Incentive liability | (8,698 | ) | (10,630 | ) | |||
Net cash used in operating activities | (17,617 | ) | (10,064 | ) | |||
Investing activities | |||||||
Acquisition of property and equipment | (651 | ) | (360 | ) | |||
Capitalized software development costs | (4,096 | ) | (2,442 | ) | |||
Net cash used in investing activities | (4,747 | ) | (2,802 | ) | |||
Financing activities | |||||||
Proceeds from issuance of debt | — | 30,000 | |||||
Settlement of contingent consideration | (20,074 | ) | — | ||||
Principal payments of debt | — | (4 | ) | ||||
Proceeds from issuance of common stock | 48,634 | — | |||||
Deferred financing costs | (239 | ) | (15 | ) | |||
Net cash provided by financing activities | 28,321 | 29,981 | |||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (21 | ) | 176 | ||||
Net increase in cash, cash equivalents and restricted cash | 5,936 | 17,291 | |||||
Cash, cash equivalents, and restricted cash — Beginning of period | 91,830 | 121,985 | |||||
Cash, cash equivalents, and restricted cash — End of period | $ | 97,766 | $ | 139,276 | |||
RECONCILIATION OF GAAP REVENUE TO BILLINGS (UNAUDITED) (Amounts in thousands) | |||||
Three Months Ended | |||||
2024 | 2023 | ||||
Consolidated | |||||
Revenue | $ | 67,608 | $ | 64,331 | |
Plus: | |||||
Consumer Incentives | 37,608 | 31,295 | |||
Billings | $ | 105,216 | $ | 95,626 | |
Revenue | $ | 62,233 | $ | 59,030 | |
Plus: | |||||
Consumer Incentives | 37,608 | 31,295 | |||
Billings | $ | 99,841 | $ | 90,325 | |
Bridg platform | |||||
Revenue | $ | 5,375 | $ | 5,301 | |
Plus: | |||||
Consumer Incentives | — | — | |||
Billings | $ | 5,375 | $ | 5,301 | |
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED CONTRIBUTION (UNAUDITED) (Amounts in thousands) | |||||
Three Months Ended | |||||
2024 | 2023 | ||||
Consolidated | |||||
Revenue | $ | 67,608 | $ | 64,331 | |
Minus: | |||||
Partner Share and other third-party costs | 30,543 | 33,384 | |||
Delivery costs(1) | 6,173 | 6,424 | |||
Gross Profit | 30,892 | 24,523 | |||
Plus: | |||||
Delivery costs(1) | 6,173 | 6,424 | |||
Adjusted Contribution | $ | 37,065 | $ | 30,947 | |
Revenue | $ | 62,233 | $ | 59,030 | |
Minus: | |||||
Partner Share and other third-party costs | 30,412 | 33,175 | |||
Delivery costs(1) | 4,723 | 4,693 | |||
Gross Profit | 27,098 | 21,162 | |||
Plus: | |||||
Delivery costs(1) | 4,723 | 4,693 | |||
Adjusted Contribution | $ | 31,821 | $ | 25,855 | |
Bridg platform | |||||
Revenue | $ | 5,375 | $ | 5,301 | |
Minus: | |||||
Partner Share and other third-party costs | 131 | 209 | |||
Delivery costs(1) | 1,450 | 1,731 | |||
Gross Profit | 3,794 | 3,361 | |||
Plus: | |||||
Delivery costs(1) | 1,450 | 1,731 | |||
Adjusted Contribution | $ | 5,244 | $ | 5,092 | |
(1) Stock-based compensation expense recognized in consolidated delivery costs totaled |
RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED EBITDA (UNAUDITED) (Amounts in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net (Loss) Income | $ | (24,275 | ) | $ | 13,608 | ||
Plus: | |||||||
Interest expense, net | 819 | 8 | |||||
Depreciation and amortization | 6,250 | 6,575 | |||||
Stock-based compensation expense | 10,985 | 7,968 | |||||
Foreign currency loss (gain) | 630 | (1,389 | ) | ||||
Acquisition, integration and divestiture cost | — | 1,723 | |||||
Change in contingent consideration | 5,817 | (34,584 | ) | ||||
Adjusted EBITDA | $ | 226 | $ | (6,091 | ) | ||
RECONCILIATION OF ADJUSTED CONTRIBUTION TO ADJUSTED EBITDA (UNAUDITED) (Amounts in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Consolidated | |||||||
Adjusted Contribution | $ | 37,065 | $ | 30,947 | |||
Minus: | |||||||
Delivery costs | 6,173 | 6,424 | |||||
Sales and marketing expense | 14,118 | 13,948 | |||||
Research and development expense | 13,048 | 11,564 | |||||
General and administration expense | 14,485 | 13,070 | |||||
Stock-based compensation expense | (10,985 | ) | (7,968 | ) | |||
Adjusted EBITDA | $ | 226 | $ | (6,091 | ) | ||
Adjusted Contribution | $ | 31,821 | $ | 25,855 | |||
Minus: | |||||||
Delivery costs | 4,723 | 4,693 | |||||
Sales and marketing expense | 11,414 | 11,547 | |||||
Research and development expense | 11,115 | 10,327 | |||||
General and administration expense | 13,427 | 13,330 | |||||
Stock-based compensation expense | (9,779 | ) | (8,103 | ) | |||
Adjusted EBITDA | $ | 921 | $ | (5,939 | ) | ||
Bridg platform | |||||||
Adjusted Contribution | $ | 5,244 | $ | 5,092 | |||
Minus: | |||||||
Delivery costs | 1,450 | 1,731 | |||||
Sales and marketing expense | 2,704 | 2,401 | |||||
Research and development expense | 1,933 | 1,237 | |||||
General and administration expense | 1,058 | (260 | ) | ||||
Stock-based compensation expense | (1,206 | ) | 135 | ||||
Adjusted EBITDA | $ | (695 | ) | $ | (152 | ) | |
RECONCILIATION OF GAAP NET (LOSS) INCOME TO ADJUSTED NET LOSS AND ADJUSTED NET LOSS PER SHARE (UNAUDITED) (Amounts in thousands, except per share amounts) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net (Loss) Income | $ | (24,275 | ) | $ | 13,608 | ||
Plus: | |||||||
Stock-based compensation expense | 10,985 | 7,968 | |||||
Foreign currency loss (gain) | 630 | (1,389 | ) | ||||
Acquisition, integration and divestiture costs | — | 1,723 | |||||
Amortization of acquired intangibles | 2,789 | 3,458 | |||||
Change in contingent consideration | 5,817 | (34,584 | ) | ||||
Adjusted Net Loss | $ | (4,054 | ) | $ | (9,216 | ) | |
Weighted-average number of shares of common stock used in computing Adjusted Net Loss per share: | |||||||
Weighted-average common shares outstanding, diluted | 43,248 | 36,727 | |||||
Adjusted Net Loss per share, diluted | $ | (0.09 | ) | $ | (0.25 | ) | |
RECONCILIATION OF (Amounts in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net cash used in operating activities | $ | (17,617 | ) | $ | (10,064 | ) | |
Plus: | |||||||
Acquisition of property and equipment | (651 | ) | (360 | ) | |||
Capitalized software development costs | (4,096 | ) | (2,442 | ) | |||
Free Cash Flow | $ | (22,364 | ) | $ | (12,866 | ) | |
RECONCILIATION OF FORECASTED GAAP REVENUE TO BILLINGS (UNAUDITED) (Amounts in thousands) | |
Q2 2024 | |
Revenue | |
Plus: | |
Consumer Incentives | |
Billings |
Contacts:
Public Relations:
pr@cardlytics.com
Investor Relations:
ir@cardlytics.com
Source:
2024 GlobeNewswire, Inc., source