29 slides from Cardlytics, Inc. Common Stock's earnings presentation, May 2, 2022
Slide 1: Q1 2022 Earnings Presentation
CARDLYTICS Q1 2022 Earnings Presentation May 2, 2022
Slide 2: Disclaimer
Disclaimer This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding expectations about future financial performance or results of Cardlytics, Inc. (“Cardlytics,” “we,” “us,” or “our)
Slide 3: Company overview
01 Company overview
Slide 4: We power a native ad platform in our partners' digital channels
We power a native ad platform in our partners’ digital channels. © 2021 Cardlytics 4
Slide 5: Scaled purchase intelligence solution with 178M+ MAUs
Cardlytics provides a scaled solution based on 178M+ Monthly Active Users(1) purchase intelligence $3.9T+ Distinctive benefits for marketers + Reach valuable banking customers + Operate in a brand-safe, privacy-protected, in Annual Spend(2) trusted digital channel + Market to the most valuable custo
Slide 6: Five strategic initiatives to create shareholder value
Cardlytics is focused on five strategic initiatives to create shareholder value Ad Server and Ads Manager + Connecting 50% of MAUs to new Ad Server by end of 2022 + Increasing adoption by agency, middle market and SMB clients adoption + Upgraded UI / UX for more content and better offer constructs,
Slide 7: Dosh overview
Dosh Innovative platform + Dosh’s technology complements Cardlytics’ product and technology roadmap overview + Modern, efficient platform that can quickly integrate with neo-banks, fintechs, smaller banks, and consumer-facing organizations Founded: 2016 | HQ: Austin, TX Partnerships with + Dosh brin
Slide 8: Bridg overview
Bridg Product-level Insights that differentiate from + + Access to SKU and UPC data through its client relationships Connects to merchant’s point-of-sale through proprietary technology overview CDP peers + Capable of connecting to most point-of-sale systems in the U.S. + Able to ingest, clean and ca
Slide 9: Bridg Gross Margin
Bridg Gross Margin Margin improvement for company over time as more clients scale beyond proof of concept and data costs normalize Bridg incurs higher expenses during onboarding Total Revenue + Processing of several years’ worth of historical data initially versus steady state processing of data on
Slide 10: Entertainment overview
Entertainment New offer capabilities + + High-value middle market and local business content Merchants located in nearly every U.S. MSA covering ~95% of overview the population + Offers available after banks launch the Ad Server and evolve the user experience Founded: 1962 | HQ: Detroit, MI Engageme
Slide 11: Financial information & operating metrics
02 Financial information & operating metrics
Slide 12: Trended consolidated results
Trended consolidated results Revenue Adj. Contribution(1) Billings(1) Q1 Billings 28.7% y/y $134.0 Q1 Revenue $98.4 27.6% y/y $98.2 $94.0 $85.3 $90.0 $76.3 $67.8 $67.1 $67.9 $62.1 $65.0 $58.9 $53.2 Q1 Adj. $45.5 $39.5 $46.1 Contribution $44.0 34.6% y/y $28.2 $32.8 $29.7 $29.6 $31.6 $20.4 $19.7 $24.3
Slide 13: Billings and adjusted contribution best reflect performance
Billings and adjusted contribution best reflect performance Billings Consumer incentive Enhanced consumer GAAP revenue Partner share Adjusted Total in aggregate Set by CDLX to achieve incentive Recognized as Revenue; Portion of Revenue contribution paid by marketers marketing objectives; Additional
Slide 14: Q1 2022 year-over-year consolidated results
Q1 2022 year-over-year consolidated results Three Months Ended Change March 31 2021 2022 $ % Billings(1) $76,317 $98,225 $21,908 28.7% Consumer Incentives 23,087 30,297 7,210 31.2% $30,297 28.7% Revenue $53,230 $67,928 $14,698 27.6% Adjusted Partner Share and other third- BILLINGS 28,889 35,153 6,26
Slide 15: Cardlytics platform advertiser spend by industry
Cardlytics platform advertiser spend by industry % Change % of Total Advertiser Spend Three Months Ended Three Months Ended March 31, 2022 March 31, Industry vs 2021 vs 2020 vs 2019 2019 2020 2021 2022 Grocery & Gas < 50% < 5% > 75% > 5% < 15% < 10% < 10% Restaurant < (15)% > 25% > 50% > 25% < 30% >
Slide 16: Cardlytics platform engagement metrics
Cardlytics platform Offer Activation Rates by Industry Q1 2021 Q1 2022 engagement metrics(1) 6.45% 5.97% 4.57% 4.06% 3.62% 3.49% 3.19% 2.69% 2.77% There may be variation in future quarters due to factors such as 2.41% 1.86% 2.24% 2.14% 2.12% 2.10%2.12% global economic events, bank launches, new adve
Slide 17: MAU increase precedes billings growth and ARPU expansion
Significant MAU increase precedes opportunity for expected billings growth and future ARPU expansion for the Cardlytics platform MAUs(1) ARPU(1) 175.4 178.5 168.6 170.6 163.6 167.6 161.6 157.2 $0.49 140.8 $0.41 $0.29 $0.36 $0.36 $0.34 $0.32 $0.32 $0.18 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21
Slide 18: Appendix
03 Appendix
Slide 19: Q1 2022 results
Q1 2022 results Three Months Ended Change March 31, 2022 2021 AMT % Revenue $67,928 $53,230 $14,698 27.6% Billings(1) 98,225 76,317 21,908 28.7% Gross Profit 26,242 19,521 6,721 34.4% Adjusted contribution(1) 32,775 24,341 8,434 34.6% Net income (loss) attributable to common stockholders 33,038 (24,
Slide 20: Guidance
Guidance Q2 2022 Guidance Billings(1) $106.0 - $116.0 Revenue $73.0 - $80.0 Adjusted Contribution(1) $36.5 - $40.5
Slide 21: Reconciliation of GAAP revenue to billings
Reconciliation of GAAP revenue to billings Three Months Ended Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, 2020 2020 2020 2020 2021 2021 2021 2021 2022 Cardlytics Platform Revenue $45,509 $28,222 $46,079 $67,082 $53,230 $56,763 $62,075 $86,686 $63,983 Plus: Consumer Ince
Slide 22: Reconciliation of GAAP gross profit to adjusted contribution
Reconciliation of GAAP gross profit to adjusted contribution Three Months Ended Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Cardlytics Platform 2020 2020 2020 2020 2021 2021 2021 2021 2022 Revenue $45,509 $28,222 $46,079 $67,082 $53,230 $56,763 $62,075 $86,686 $63,986 M
Slide 23: Reconciliation of GAAP partner share and other third-party costs
Reconciliation of GAAP partner share and other third-party costs to adjusted partner share and other third-party costs Three Months Ended Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, 2020 2020 2020 2020 2021 2021 2021 2021 2022 Cardlytics Platform Partner Share and other
Slide 24: Reconciliation of GAAP net (loss) income to adjusted EBITDA
Reconciliation of GAAP net (loss) income to adjusted EBITDA (Amounts in thousands) Three Months Ended Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Cardlytics Platform 2020 2020 2020 2020 2021 2021 2021 2021 2022 Net (loss) income ($13,531) ($19,758) ($15,356) ($6,777) ($
Slide 25: Reconciliation of GAAP net income (loss) to non-GAAP net loss
Reconciliation of GAAP net income (loss) to non-GAAP net loss and non-GAAP net loss per share Three Months Ended March 31, 2022 2021 Net income (loss) $33,038 ($24,895) Plus: Stock-based compensation expense 13,585 7,248 Foreign currency loss (gain) 1,671 (319) Acquisition and integration (benefit)
Slide 26: Reconciliation of forecasted GAAP revenue to billings
Reconciliation of forecasted GAAP revenue to billings Q2 2022 Guidance Revenue $73.0 - $80.0 Plus: Consumer Incentives $33.0 - $36.0 Billings $106.0 - $116.0
Slide 27: Definitions
Definitions Adjusted contribution: We define adjusted contribution measures of the degree by which revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our partners. Adjusted contribution demonstrates how incremental marketing spend
Slide 28: Industry and account definitions
Industry and account definitions Segment Segment Constituents Agency Accounts Merchants on the Cardlytics platform in which we interact with an advertising agency that we believe holds significant influence over the decision-making process as it relates to the design and management of advertising ca
Slide 29: Cardlytics
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