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CI

Cardlytics, Inc. (CDLX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 exceeded guidance and topped Wall Street consensus: revenue $61.9M vs $58.0M consensus and Primary EPS (adjusted) -$0.21 vs -$0.27 consensus, while GAAP net loss narrowed year over year; management cited improved delivery and pipeline wins offset by macro caution and travel weakness . Revenue Consensus Mean $58.012M*, Primary EPS Consensus Mean -$0.2667*.
  • Sequentially softer seasonally (Q4→Q1), but year-over-year net loss improved to -$13.3M from -$24.3M; Adjusted EBITDA was -$4.4M, reflecting mix and performance pressures even as U.K. remained a bright spot and Bridg grew slightly .
  • Q2 2025 guidance brackets consensus: revenue $61–$67M vs consensus $64.0M*; rev/billings expected in low 60% and adjusted contribution margin in the mid‑50% range, with OpEx cut to < $35M per quarter (ex‑SBC) following a 15% workforce reduction targeting ~$16M annualized savings .
  • Strategic catalysts: launch of Cardlytics Rewards Platform (CRP) with first non‑FI publisher, continued ramp of a new large U.S. FI partner to top‑5 billings run‑rate, and expanded data/targeting models; these broaden supply, diversify demand, and can re‑accelerate growth as macro improves .

What Went Well and What Went Wrong

  • What Went Well

    • Performed “above or at the top end” of guidance; beat revenue and adjusted EPS consensus; U.K. revenue grew +8.6% YoY and Bridg +1.6% YoY as new brands and improved delivery supported results . Q1 revenue $61.9M vs $58.0M consensus*, Primary EPS -$0.21 vs -$0.27 consensus* .
    • Supply expansion executed: new large FI partner fully launched to eligible users (now among top 5 banks by billings run‑rate) and first non‑FI publisher signed under CRP; faster integrations via SDK/APIs (4–8 week timelines) .
    • Cost discipline and liquidity: extended revolver to 2028, ended Q1 with $52M cash and $60M undrawn capacity; workforce reduced by ~15% for ~$16M annualized savings; OpEx run‑rate guided to < $35M/quarter (ex‑SBC) .

  • What Went Wrong

    • Top‑line pressure persisted: revenue -8% YoY; adjusted contribution -12% YoY; adjusted EBITDA flipped to -$4.4M (from $0.2M) as partner mix and advertiser performance weighed on margins .
    • Monetization lag on new supply: ACPU fell 24% YoY as MQUs from the new large FI partner are not yet fully monetized; excluding that partner ACPU still -15% YoY, highlighting conversion/engagement ramp still in progress .
    • Macro and vertical headwinds: advertiser caution and travel softness; mix shift to legacy banks and engagement changes pressured adjusted contribution margin in Q1 (expected to normalize to mid‑50% of revenue in Q2) .

Financial Results

  • Summary P&L vs prior year and prior quarter
MetricQ1 2024Q4 2024Q1 2025
Revenue ($M)$67.6 $74.0 $61.9
Gross Profit ($M)$30.9 $32.7 $25.2
Adjusted Contribution ($M)$37.1 $40.7 $32.4
Net Income (Loss) ($M)$(24.3) $(15.6) $(13.3)
GAAP Diluted EPS$(0.56) $(0.31) $(0.26)
Adjusted EBITDA ($M)$0.2 $6.4 $(4.4)
Adjusted EPS (Primary EPS)$(0.09) $0.00 $(0.21)
  • Margins (GAAP and non‑GAAP)
MarginQ4 2024Q1 2025
Gross Profit Margin %44.24%*40.65%*
Net Income Margin %-21.07%*-21.46%*
EBITDA Margin %-3.07%*-21.13%*
EBIT Margin %-11.10%*-31.29%*
Adjusted Contribution as % of Revenue55.0% 52.4%

Values marked with * retrieved from S&P Global.

  • Segment breakdown (Revenue)
SegmentQ1 2024Q1 2025
Cardlytics Platform Revenue ($M)$62.2 $56.4
Bridg Platform Revenue ($M)$5.4 $5.5
Total Revenue ($M)$67.6 $61.9
  • KPIs
KPIQ1 2024Q1 2025
MQUs (Millions)191.2 214.9
ACPU ($)$0.17 $0.13

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Billings ($M)Q2 2025n/a$100–108 New
Revenue ($M)Q2 2025n/a$61–67 (YoY -12% to -4%) New
Adjusted Contribution ($M)Q2 2025n/a$32.5–36.5 New
Adjusted EBITDA ($M)Q2 2025n/a$(4)–$1 New
Revenue/Billings %Q2 2025Low 60% (Q1 guide) Low 60% (Q2 and FY) Maintained
Adjusted Contribution Margin (of rev)Q2 2025n/aMid‑50% New
Operating Expenses (ex‑SBC)Quarterly run‑rate< $40M (2025 view) < $35M (post RIF) Lowered
Capex2025 quarterlyMid‑ to high‑$4M Low‑$4M Lowered
Workforce2025n/a~15% reduction; ~$16M annualized savings New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Platform performance/deliveryAddressing over/under‑delivery; dynamic marketplace; move to engagement‑based pricing “Delivery issues largely resolved”; rev/billings low 60%; AC margin mid‑50% guided Improving execution, stabilizing
Supply expansion (FI/non‑FI)Launch large U.S. FI near year‑end; sign neobank; U.K. expansion New large FI is top‑5 by billings run‑rate; neobank live; first non‑FI CRP publisher signed Accelerating supply diversification
Data/targeting & InsightsMicro‑targeting; SKUs via Bridg; Insights portal adoption +50% in 2024 Models for relevancy/geo‑targeting; Insights portal users +77% q/q; pilot CPG offers combining data Deeper analytics; productization
Macro and advertiser budgetsAdvertiser caution; travel/restaurant headwinds Caution persists; travel weak; everyday spend/specialty retail strong Mixed macro; selective strength
Cost/liquidityOpEx < $40M ex‑SBC; liquidity >$100M (Q4) Revolver extended to 2028; OpEx < $35M ex‑SBC; $87M liquidity (post covenant) Tighter cost control, de‑risking
Bridg/RipplIdentity growth; 100M+ shopper profiles; pipeline building 130M unique shoppers; new retailers/CPG traction; CPG pilot into Cardlytics Broadening use cases

Management Commentary

  • CEO: “We’ve made marked progress across our key business pillars… to ‘platformize’ Cardlytics and position ourselves as the leading commerce media platform.”
  • CEO on supply diversification: “We recently signed our first non‑FI partner agreement to run offers on a leading digital sports platform… CRP.” and “As of April, [new large FI partner is] now one of our top 5 banks in terms of billings run rate.”
  • CFO: “For the first quarter, we performed above or at the top end of our guidance across all metrics.”
  • CFO on margin outlook: “Revenue as a percentage of billings is expected to be in the low 60% range… [and] adjusted contribution as a percentage of revenue to be in the mid‑50% range.”
  • CFO on cost actions: “This reduction impacted approximately 15% of our workforce, which translates to $16 million in annualized savings… Operating expenses are expected to be sustained below $35 million per quarter, excluding stock-based compensation.”

Q&A Highlights

  • CRP scope/economics: CRP broadens publisher channels beyond banks (e.g., digital sports platform), enabling new advertiser categories (e.g., financial services) and likely engagement‑based pricing; early but management sees “positive economics” for CDLX and publishers .
  • Macro read: Underlying spend remains strong overall with weakness in travel; everyday spend and specialty retail are resilient; advertisers remain cautious and selective .
  • Monetization/ACPU: ACPU -24% YoY as new large FI partner is not fully monetized; management expects margin normalization (mid‑50% of revenue) as mix improves and supply diversifies .
  • Guidance clarifications: Q2 revenue/billings low‑60s; adjusted contribution mid‑50% of revenue; sequential improvement in adjusted EBITDA targeted through 2025 on execution and expense discipline .
  • U.K. and Bridg: U.K. momentum continues with new brands and higher supply; Bridg identity and Rippl audiences expanding, with pilots bringing CPG offers into the core platform .

Estimates Context

  • Q1 2025 vs S&P Global consensus: revenue $61.9M vs $58.0M consensus (beat); Primary EPS (adjusted) -$0.21 vs -$0.27 consensus (beat). Actuals from company filings; consensus from S&P Global .
  • Q2 2025: Company revenue guidance $61–$67M brackets consensus $64.0M*, implying roughly in‑line expectations if macro caution persists .
  • Q4 2024 for context: revenue $74.0M vs $63.6M consensus*, with Primary EPS actual $0.00 vs -$0.205 consensus* (non‑GAAP/Primary EPS), reflecting stronger holiday‑season pipeline and delivery improvements .
PeriodMetricConsensusActual
Q1 2025Revenue ($M)$58.012*$61.898
Q1 2025Primary EPS-$0.2667*-$0.21
Q4 2024Revenue ($M)$63.627*$74.0
Q4 2024Primary EPS-$0.2050*$0.00

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Q1 printed a clean top‑line and adjusted EPS beat with improved delivery, but mix/performance pressures and under‑monetized new supply kept Adjusted EBITDA negative; expect sequential improvement as new supply scales and cost actions flow through .
  • Q2 guide brackets consensus and embeds macro caution; upside hinges on continued delivery improvements, ramp of the large FI and the neobank, and initial CRP contribution (learning year, no 2025 impact assumed) .
  • Structural catalysts: CRP expands total addressable publisher base beyond banks; model/geo‑targeting upgrades and Insights adoption should raise monetization and retention over time .
  • Margin path: management targets low‑60s revenue/billings and mid‑50s adjusted contribution/revenue; watch partner mix normalization and engagement‑based pricing penetration for margin recovery .
  • Cost and liquidity posture de‑risks the story: OpEx < $35M (ex‑SBC), ~$87M liquidity capacity post‑covenant, and RIF savings support runway to 2025 exit Adjusted EBITDA target .
  • KPIs show scale (MQUs +12% YoY) but monetization lag (ACPU -24% YoY) on new FI; success depends on accelerating content and engagement on that partner in 2025 .
  • Near‑term trading setup: beats plus bracketed guide and cost cuts create a “show‑me” quarter in Q2; stock likely most sensitive to evidence of monetization at the large FI, CRP traction milestones, and signs of recovery in travel/restaurant verticals .

Notes:

  • All company actuals and quotations are sourced from the Q1 2025 8‑K/press release and earnings call, and prior quarters’ filings/calls as cited. Consensus figures and margin metrics marked with * are values retrieved from S&P Global.