Cardlytics (CDLX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $67.1M, down 15% year-over-year, with a net loss of $145.2M driven by $131.6M–$117.8M goodwill and $13.7M intangible asset impairments on the Bridg platform.

• Q3 billings were $112M, down 2–4% year-over-year, excluding the former Entertainment subsidiary.

• CEO Amit Gupta outlined four strategic pillars: supply, demand, network performance, and Bridg, focusing on partnerships, advertiser diversification, and platform performance.

• Engagement-based pricing adoption accelerated, with 38% of total billings in Q3 on this model and a majority expected by end of next year.

• Cardlytics MAUs grew 2% year-over-year to 166.4M, but ARPU declined 18% to $0.40 due to higher Consumer Incentives.

Financial highlights

• Gross profit for Q3 2024 was $28.6M, down 20% year-over-year.

• Adjusted contribution was $36.4M, margin 54%, and Adjusted EBITDA was $(1.8)M, down from $3.6M–$3.9M in Q3 2023.

• Free cash flow was negative $3.9M; operating cash flow was $1.4M.

• Cash and equivalents at quarter-end were $67.0M, with $60.0M in unused credit.

• Net loss for the nine months ended September 30, 2024 was $173.7M.

Outlook and guidance

• Q4 2024 billings expected between $102M–$108M, revenue $62M–$67M, and Adjusted EBITDA between a loss of $5M and $1M.

• Billings guidance reflects a year-over-year decline of 18–23%, driven by delivery and pipeline challenges.

• Management expects continued investment in R&D and sales, with operating losses anticipated in the near term.

• Sufficient liquidity is expected for at least the next 12 months, but additional capital may be needed if growth initiatives accelerate or macroeconomic conditions worsen.

• 2025 performance expected to accelerate with improved execution, scaling of new partners, and contributions from Ripple.