27 slides from Cardlytics, Inc. Common Stock's earnings presentation, Nov 1, 2022
Slide 1: Cardlytics Q3 2022 Earnings Presentation
CARDLYTICS Q3 2022 Earnings Presentation November 1, 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
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: Cardlytics provides a scaled solution based on purchase intelligence
Cardlytics provides a scaled solution based on purchase 184M+ Monthly Active Users(1) 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: Cardlytics is focused on five strategic initiatives to create shareholder value
Cardlytics is focused on five strategic initiatives to create shareholder value Ad Server and Ads Manager adoption + Connecting 100% of MAUs to new Ad Server by the end of 2023 + Increasing adoption by agency, middle market and SMB clients + Upgraded UI / UX for more content and better offer constru
Slide 7: Financial information & operating metrics
Financial information & operating metrics
Slide 8: Trended consolidated results
Trended consolidated results Revenue Adj. Contribution(1) Billings(1) Q3 Billings 12.1% y/y $134.0 $107.7 Q3 Revenue $110.4 11.9% y/y $107.7 $94.0 $98.4 $98.2 $85.3 $90.0 $72.7 $76.3 $75.4 $67.8 $67.9 $62.1 $67.1 $65.0 $58.9 Q3 Adj. $53.2 $45.5 $46.1 Contribution $39.5 11.1% y/y $28.2 $44.0 $29.7 $2
Slide 9: Billings and adjusted contribution best reflect performance
Billings and adjusted contribution best reflect performance Billings Consumer incentive Enhanced consumer GAAP revenue Partner share Adjusted contribution Total in aggregate paid Set by CDLX to achieve incentive Recognized as Revenue; to Portion of Revenue shared Amount retained by CDLX; net by mark
Slide 10: Q3 2022 year-over-year consolidated results
Q3 2022 year-over-year consolidated results Three Months Ended Change September 30 2021 2022 $ % Billings(1) $98,448 $110,392 $11,944 12.1% Consumer Incentives 33,464 37,686 4,222 12.6% 12.1% $37,686 Revenue $64,984 $72,706 $7,722 11.9% BILLINGS Adjusted Partner Share and other third-party costs(1)
Slide 11: Cardlytics platform advertiser spend by industry
Cardlytics platform advertiser spend by industry % Change % of Advertiser Spend Three Months Ended Three Months Ended Industry September 30, September 30, vs 2021 vs 2020 vs 2019 2019 2020 2021 2022 Grocery & Gas > (10%) > 30% >53 % < 10% > 10% > 10% < 10% Restaurant < (15%) > 20% < 10% < 30% > 30%
Slide 12: Cardlytics platform engagement metrics
Cardlytics platform Offer Activation Rates by Industry 7.30% 6.99% Q3 2021 Q3 2022 engagement metrics(1) 5.25% 4.32% 3.66% There may be variation in future quarters due to factors such as global 2.91% 2.92% 2.73% 2.76% 2.54% 2.83% 2.66% 2.34% economic events, bank launches, new advertisers with sign
Slide 13: Significant MAU increase precedes opportunity for expected 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) 184.7 175.4 178.5 179.9 168.6 170.6 163.6 167.6 161.6 157.2 $0.49 140.8 $0.29 $0.41 $0.38 $0.36 $0.36 $0.36 $0.32 $0.34 $0.32 $0.18 Q1 20 Q2 20 Q3 20 Q4 20
Slide 14: Bridg Gross Margin
Bridg Gross Margin Margin improvement for company over time as more clients scale beyond proof of concept and data costs normalize Total Revenue Bridg incurs higher expenses during onboarding + Processing of several years’ worth of historical data initially versus steady state processing of data on
Slide 15: Appendix
15 Appendix
Slide 16: Q3 2022 results
Q3 2022 results Three Months Ended Nine Months Ended Change Change September 30, September 30, 2022 2021 AMT % 2022 2021 AMT % Revenue $72,706 $64,984 $7,722 11.9% $216,039 $177,067 $38,972 22.0% Billings(1) 110,392 98,448 11,944 12.1% 316,361 260,102 56,259 21.6% Gross Profit 26,018 24,504 1,514 6.
Slide 17: Guidance
Guidance Q4 2022 Guidance Billings(1) $120.0 - $132.0 Revenue $80.0 - $90.0 Adjusted Contribution(1) $38.0 - $44.0
Slide 18: 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, Jun 30, Sept 30, 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Cardlytics Platform Revenue $45,509 $28,222 $46,079 $67,082 $53,230 $56,763 $62,075 $86,686
Slide 19: 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, Jun 30, Sept 30, Cardlytics Platform 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Revenue $45,509 $28,222 $46,079 $67,082 $53,230 $56,76
Slide 20: Reconciliation of GAAP partner share and other third-party costs to adjusted
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, Jun 30, Sept 30, 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Cardlytics Platf
Slide 21: 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, Jun 30, Sept 30, 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Net (loss) income ($13,531) ($19,758) ($15,356) ($6,
Slide 22: Reconciliation of adjusted contribution to adjusted EBITDA
Reconciliation of adjusted contribution 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, Jun 30, Sept 30, 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Cardlytics Platform Adjusted Contribution $20,379 $12
Slide 23: 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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net income (loss) $6,267 ($44,529) ($86,985) ($116,730) Plus: Stock-based compensation expense 5,767 16,830 32,194 37,415
Slide 24: Reconciliation of forecasted GAAP revenue to billings
Reconciliation of forecasted GAAP revenue to billings Q4 2022 Guidance Revenue $80.0 - $90.0 Plus: Consumer Incentives $40.0 - $42.0 Billings $120.0 - $132.0
Slide 25: 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 26: 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 27: Cardlytics
fa] cardlytics