Cardlytics (NASDAQ:CDLX) Posts Earnings Results

Cardlytics (NASDAQ:CDLX) issued its earnings results on Wednesday, August 5th. The company reported ($1.50) earnings per share for the quarter, topping analysts’ consensus estimates of ($2.30) by $0.80, Zacks reports. Cardlytics had a negative return on equity of 956.56% and a negative net margin of 55.92%.The company had revenue of $36.88 million for the quarter, compared to analyst estimates of $37.00 million.

Here are the key takeaways from Cardlytics’ conference call:

• Advertiser momentum improved: active advertisers rose 18% sequentially, new-logo volume increased 59%, and advertiser churn declined 50% by count and 88% by dollar impact.
• Cardlytics reported Q2 Adjusted EBITDA of $1.7 million, above the high end of its guidance, while adjusted operating expenses fell 31% year over year and contribution margin improved to 57.7%.
• The company cited progress in bank partnerships, local offers, AI-powered campaign tools and purchase intelligence, including expanded card-linked offers for Monzo in the U.K. and early partners responding positively to its Cardlytics Rewards Platform.
• Q2 billings fell 34% year over year to $65.5 million, revenue declined 36% to $36.9 million, and monthly qualified users dropped to 185 million from 224 million due to changes in bank-partner relationships.
• Free cash flow was negative $10.7 million and operating cash flow was negative $8.6 million; the company ended the quarter with $28 million in cash and approximately $20 million available under its credit facility.
• Q3 guidance calls for billings of $61 million-$67 million, revenue of $34 million-$39 million and Adjusted EBITDA between breakeven and $3 million, implying a broadly comparable quarter as management focuses on stabilizing the business before renewed growth.

Cardlytics Price Performance

Shares of CDLX opened at $4.13 on Friday. The company has a market capitalization of $24.00 million, a price-to-earnings ratio of -0.22 and a beta of 0.67. Cardlytics has a fifty-two week low of $3.49 and a fifty-two week high of $32.80. The business’s 50-day moving average is $4.02 and its 200-day moving average is $6.37.

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. Wall Street Zen upgraded shares of Cardlytics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Needham & Company LLC restated a “hold” rating on shares of Cardlytics in a research note on Thursday, June 18th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Cardlytics in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Sell” and a consensus price target of $10.00.

Insider Buying and Selling

In other news, CEO Amit Gupta sold 9,640 shares of the company’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $4.39, for a total transaction of $42,319.60. Following the transaction, the chief executive officer directly owned 113,850 shares in the company, valued at approximately $499,801.50. This represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders have sold a total of 31,750 shares of company stock worth $134,129 in the last three months. 5.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cardlytics

Several institutional investors have recently made changes to their positions in the stock. Virtu Financial LLC acquired a new stake in Cardlytics during the 4th quarter worth approximately $39,000. Invesco Ltd. increased its stake in Cardlytics by 38.1% in the fourth quarter. Invesco Ltd. now owns 170,122 shares of the company’s stock valued at $196,000 after acquiring an additional 46,973 shares during the last quarter. Barclays PLC increased its holdings in shares of Cardlytics by 31,167.6% in the fourth quarter. Barclays PLC now owns 55,969 shares of the company’s stock worth $64,000 after buying an additional 55,790 shares during the period. Renaissance Technologies LLC bought a new stake in Cardlytics in the 4th quarter worth $62,000. Finally, Goldman Sachs Group Inc. boosted its holdings in Cardlytics by 15.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 109,001 shares of the company’s stock valued at $125,000 after acquiring an additional 14,273 shares in the last quarter. 68.10% of the stock is currently owned by institutional investors.

Cardlytics Company Profile

Cardlytics, Inc operates a purchase intelligence and marketing platform that connects advertisers with consumers through bank and credit card transaction data. The company partners with financial institutions to analyze anonymized purchase information, enabling brands to deliver highly targeted offers and rewards directly to customers’ online and mobile banking channels. By leveraging real-time insights into consumer spending habits, Cardlytics helps marketers optimize campaign performance and measure return on ad spend more accurately than traditional digital advertising methods.

At the core of Cardlytics’ offering is its proprietary purchase intelligence engine, which aggregates and anonymizes transaction data from partner banks and credit unions.