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Cardlytics Inc (CDLX)
NASDAQ:CDLX
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Cardlytics
(NASDAQ:CDLX)
41Neutral
Positive Factors
Client Wins and Revenue
Cardlytics' Q4 revenue was ahead of consensus on billings, revenue, and adj. EBITDA, driven by better new client wins and lower operating expenses.
Pricing Model Transition
The adoption of engagement-based pricing increased to 61% of advertisers, up from 51% last quarter, with 90%+ new brands adopting this model in Q4, showing improved visibility.
Negative Factors
Financial Outlook
Q1 guidance was below the street as billings are expected to be down, although sequential growth is anticipated throughout 2025.
Cardlytics (CDLX) vs. S&P 500 (SPY)
Market Cap
$102.66M
Dividend YieldN/A
Average Volume (3M)968.33K
Price to Earnings (P/E)―
Beta (1Y)2.95
Revenue Growth-3.00%
EPS Growth50.03%
CountryUS
Employees434
SectorCommunication Services
Sector Strength82
IndustryTraditional Media
Share Statistics
EPS (TTM)-6.11
Shares Outstanding50,822,440
10 Day Avg. Volume1,287,934
30 Day Avg. Volume968,331
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.35
Price to Cash Flow (P/CF)18.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside69.08% Upside
Rating ConsensusHold
Number of Analyst Covering5
Cardlytics Business Overview & Revenue Model
Company DescriptionCardlytics, Inc. engages in the development of marketing solutions through its purchase intelligence platform. It operates through the Cardlytics Direct and Other Platform Solutions segments. The Cardlytics Direct segment represents its proprietary native bank advertising channel. The Other Platform Solutions segment includes solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded by Scott D. Grimes, Lynne M. Laube, and Hans Theisen on June 26, 2008 and is headquartered in Atlanta, GA.
How the Company Makes MoneyCardlytics makes money by partnering with financial institutions to use their purchase data to create targeted marketing campaigns. These campaigns are funded by advertisers who pay Cardlytics to deliver personalized offers to consumers based on their purchasing behavior. Cardlytics earns revenue by charging advertisers a fee for each transaction that occurs as a result of a consumer redeeming an offer. Additionally, they may have revenue-sharing agreements with their banking partners, where they share a portion of the fees collected from advertisers. Key partnerships with major banks are significant contributors to the company's earnings, as they provide access to a large and diverse consumer base.
Cardlytics Financial Statement Overview
Summary
Cardlytics is facing significant financial challenges with declining revenue, negative profitability, and cash flow issues. While the balance sheet shows some stability, increasing leverage and declining equity pose financial risks.Income Statement
Cardlytics shows a declining revenue trend with a significant drop from $309.2M to $293.5M in TTM, resulting in a negative revenue growth rate. The company is also facing substantial losses, as indicated by a negative net profit margin and EBIT margin, with both EBIT and EBITDA margins deeply negative, reflecting operational challenges.30
Negative
Balance Sheet
The debt-to-equity ratio has increased, indicating rising leverage. Equity has significantly decreased from previous periods, suggesting financial risk. However, the company maintains a modest equity ratio, which provides some cushion against liabilities.40
Negative
Cash Flow
Cardlytics has negative free cash flow, and the growth rate is adverse, indicating cash flow struggles. Operating cash flow is negative, and the ratio of operating cash flow to net income suggests inefficiencies in converting earnings into cash.35
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 293.47M | 309.20M | 298.54M | 267.12M | 186.89M | 210.43M | Gross Profit |
| 129.81M | 130.38M | 112.63M | 103.34M | 63.27M | 79.46M | EBIT |
| -194.75M | -135.67M | -135.54M | -96.85M | -53.92M | -17.32M | EBITDA |
| -238.92M | -99.00M | -418.98M | -89.91M | -39.51M | -12.79M | Net Income Common Stockholders |
| -274.55M | -134.70M | -465.26M | -128.56M | -58.47M | -17.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 39.62M | 91.83M | 121.91M | 233.47M | 293.24M | 104.46M | Total Assets |
| 153.76M | 574.14M | 691.24M | 1.26B | 422.54M | 224.31M | Total Debt |
| 46.71M | 266.11M | 235.26M | 197.23M | 188.12M | 37.00K | Net Debt |
| 7.09M | 174.28M | 113.36M | -36.24M | -105.12M | -104.42M | Total Liabilities |
| 101.79M | 439.35M | 479.63M | 573.10M | 265.35M | 81.05M | Stockholders Equity |
| 51.98M | 134.80M | 211.60M | 690.70M | 157.19M | 143.27M |
| Cash Flow | Free Cash Flow | ||||
| -27.43M | -12.58M | -67.39M | -51.09M | -17.71M | 437.00K | Operating Cash Flow |
| -8.87M | -185.00K | -53.90M | -38.52M | -7.60M | 11.46M | Investing Cash Flow |
| -16.03M | -10.06M | -15.76M | -506.69M | -10.12M | -11.02M | Financing Cash Flow |
| 1.69M | -20.03M | -39.99M | 486.00M | 206.43M | 44.18M |
Cardlytics Technical Analysis
Negative
2.07
Price Trends
3.05
Negative
3.49
Negative
4.77
Negative
Market Momentum
-0.34
Positive
33.94
Neutral
26.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDLX, the sentiment is Negative. The current price of 2.07 is below the 20-day moving average (MA) of 2.60, below the 50-day MA of 3.05, and below the 200-day MA of 4.77, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 33.94 is Neutral, neither overbought nor oversold. The STOCH value of 26.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDLX.
Cardlytics Risk Analysis
Cardlytics disclosed 57 risk factors in its most recent earnings report. Cardlytics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cardlytics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $29.86B | 69.03 | 15.37% | ― | 25.63% | 118.49% | |
68 Neutral | $1.78B | 89.55 | 3.10% | ― | 7.82% | ― | |
67 Neutral | $398.80M | 33.70 | 1.75% | ― | -32.95% | -89.11% | |
67 Neutral | $468.77M | 41.64 | 4.36% | ― | 9.08% | 43.58% | |
66 Neutral | $302.42M | ― | -101.69% | ― | -15.51% | -54.09% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
41 Neutral | $102.66M | ― | -186.12% | ― | -3.00% | 50.03% |
* Communication Services Sector Average
Performance Comparison
CDLX
Cardlytics
2.07
-6.11
-74.69%
PERI
Perion Network
8.39
-13.83
-62.24%
MGNI
Magnite
12.08
0.83
7.38%
APPS
Digital Turbine
3.18
0.38
13.57%
TTD
Trade Desk
53.88
-23.65
-30.50%
PUBM
PubMatic
9.09
-14.49
-61.45%
Cardlytics Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 4.55% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
Cardlytics demonstrated strong improvements in platform delivery and formed new partnerships, contributing to exceeding Q4 guidance. However, the company faced challenges with declining revenues and advertiser churn, particularly affecting Bridg revenue. Despite a positive adjusted EBITDA for the full year, negative growth expectations for Q1 2025 indicate continuing challenges. Overall sentiment is mixed, with significant achievements offset by notable setbacks.Highlights
Exceeding High End of Q4 Guidance
Cardlytics exceeded the high end of their guidance across all metrics for Q4 2024 due to higher-than-expected pipeline wins and improved platform delivery.
New Partnerships and Market Expansion
Signed a new Neobank partner in Q4, one of the fastest growing fintechs in the U.S., and expanded with a large FI partner in the U.S., reaching all eligible card members.
UK Market Growth
The UK market showed strong double-digit revenue growth at 27.2% in Q4, driven by increased module supply and consumer engagement.
Platform Delivery Improvements
Sequential improvements in delivery from Q3, with campaign budgets being consumed more predictably and improved platform efficiency.
Positive Adjusted EBITDA for Full Year
Annual adjusted EBITDA was $2.5 million positive for the second time on a full-year basis despite top-line billings being negative 0.7% year-over-year.
Improved Financial Management
Operating cash flow was positive $3 million in Q4, with free cash flow improving by $2.4 million from the prior quarter.
Lowlights
Revenue and Billings Decline
Q4 total billings were $116.3 million, an 11.2% decrease year-over-year, and revenue decreased 16% to $74.0 million.
Challenges with Large Advertisers
Increase in churn and reduced budgets with a small number of large U.S. advertisers due to organizational changes and broader macro factors.
Bridg Revenue Decline
Bridg revenue declined 12.7% compared to the prior year due to the loss of key accounts in early 2024.
Negative Q1 2025 Growth Expectations
Q1 2025 billings guidance represents negative 13% to negative 10% growth with expectations for Q1 to be the lowest billing quarter in 2025.
Company Guidance
During the Cardlytics fourth quarter fiscal year 2024 earnings call, the company provided guidance indicating a transformative outlook for 2025. They expect billings for Q1 2025 to range between $91.5 million and $94.5 million, with revenue anticipated between $57 million and $60 million. Adjusted contribution is projected to be between $30 million and $32.5 million, while adjusted EBITDA is expected to be between negative $7.5 million and negative $4.0 million. The company plans to exit the year with positive adjusted EBITDA, driven by improved execution in the U.S., continued growth in the UK, and growth from Bridg. The guidance reflects a focus on delivering sustainable profitability and free cash flow, with operating expenses expected to remain below $40 million, excluding stock-based compensation. Additionally, Cardlytics aims to enhance its network and capitalize on growth opportunities through partnerships and technological advancements, such as micro-targeting solutions and a new office in Taiwan for data engineering capabilities.Cardlytics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Cardlytics Appoints Srishti Gupta to Board of Directors
Positive
Nov 4, 2024
Cardlytics, Inc. has appointed Srishti Gupta as a new director and member of its nominating and corporate governance committee, marking a strategic move for the company. With an impressive background as Chief Product Officer at Integral Ad Science and previous roles at Rokt, Amazon, and IRI, Gupta brings extensive experience to the table. Her compensation includes restricted stock units and annual retainers, aligning her interests with shareholders. This appointment is poised to enhance Cardlytics’ governance and product strategy, drawing interest from investors keen on strong leadership in the financial markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.