Cardlytics (CDLX) Q4 2024 earnings summary

Executive summary

• 2024 was a transitional year marked by executional challenges, network upgrades, increased competition, and foundational progress for future growth.

• Divestiture of non-core businesses like Dosh and investment in data engineering and new partnerships were key strategic moves.

• Q4 exceeded the high end of guidance across all metrics, driven by pipeline wins and improved platform delivery.

• Management is targeting sequential improvements and positive Adjusted EBITDA in 2025.

• The company is focused on a four-pillar turnaround plan: supply growth, advertiser demand, network performance, and Bridg acceleration.

Financial highlights

• Full year 2024 billings were down 0.7% year-over-year (excluding entertainment); adjusted EBITDA was $2.5 million, positive for the second consecutive year.

• Q4 2024 revenue was $74.0 million, down 17% year-over-year; full-year 2024 revenue was $278.3 million, down 10%.

• Q4 net loss was $(15.6) million, a significant improvement from $(100.8) million in Q4 2023; full-year net loss was $(189.3) million, wider than $(134.7) million in 2023.

• Adjusted EBITDA for Q4 was $6.4 million (down from $10.3 million); full-year Adjusted EBITDA was $2.5 million (down from $3.8 million).

• Free cash flow for 2024 was $(28.1) million, a decline from $(12.6) million in 2023.

Outlook and guidance

• Q1 2025 billings expected between $91.5 million and $94.5 million, revenue between $57 million and $60 million.

• Adjusted contribution for Q1 expected between $30 million and $32.5 million; adjusted EBITDA between negative $7.5 million and negative $4.0 million.

• Q1 is expected to be the lowest billings quarter and growth rate of 2025, with sequential improvement anticipated throughout the year.

• CapEx for 2025 expected in the mid to high $4 million range per quarter; free cash flow should improve sequentially.

• Targeting positive adjusted EBITDA exiting 2025, driven by U.S. execution, U.K. growth, and Bridg recovery.