Cardlytics, Inc. Common Stock · NASDAQ:CDLX
Cardlytics, Inc. Common Stock — Q3 2020 Earnings Presentation
24 slides from Cardlytics, Inc. Common Stock's earnings presentation, Nov 2, 2020
Slide 1: Earnings Presentation Q3 2020
November 2, 2020 Earnings Presentation Q3 2020 ia! Cardlytics
Slide 2: Disclaimer
Disclaimer ‘This presentation includes forward-looking statements. All statements contained inthis presentation other than statements of historical facts, including statements regarding expectations about future financial performance or results of Cardlytics, Ine. (*Cardlytics,” *we,” “us,” of “our)
Slide 3: Power a native
@ power a native
Slide 4: COVID-19 Continuity Plan
COVID-19 Continuity Plan We are committed to helping our partners weather this pandemic and come out ahead on the other side. Our clients’ profitable success is the lifeblood of what we do, and we're very proud to provide a connection between advertisers, banks and their mutual customers in these un
Slide 5: Cardlytics provides a scaled solution based on purchase intelligence
Cardlytics provides a scaled solution based on purchase intelligence 208 »161M Fl Monthly Active Users“ ema > $3T in Annual Spend® 1IN2 U.S. Purchase Transactions® | MAUs") during the three ‘ended September 30, 2020. Please see appendix for definitions, the April 2019 Nielson Report Distinctive Bene
Slide 6: Q3 2020 U.S. Engagement Metrics
Q3 2020 U.S. Engagement Metrics Establishing baseline engagement metrics post-Wells Fargo launch. Note that bank launches, COVID-19, new logos and verticals all impact these metrics and there may be variation in future quarters before stabilization. Offer Activation Rates by Industry Campaign Spend
Slide 7: Despite the challenging environment, we remain focused on our strategic initiatives
Despite the challenging environment, we remain focused on our strategic initiatives Drive Long-term Revenue Growth * Continued Fl MAU expansion both organically and through new bank partnerships. * Materially expand budgets with existing advertisers while penetrating new advertisers and verticals. D
Slide 8: Financial Information & Operating Metrics
Financial Information & Operating Metrics
Slide 9: Q3 2020 year-over-year results
Q3 2020 year-over-year results © 2020 Cardlytics ig Q218 () Adjusted contribution and bi he appendix to this present tex] 18 ais aig Q219 319 Qa19 nciliations of these non-GAAP measures to the most compara 1on- GAAP » gal during the third quarter af 2018 related to the renewal of our of January , 20
Slide 10: Billings and Adjusted Contribution best reflect performance
Billings and Adjusted Contribution best reflect performance Tl eames Billings Total in aggregate paid by marketers Consumer Incentive Set by COLK to. achieve marketing objectives; can fluctuate based on desired outcome Enhanced Consumer Incentive Additional ‘Consumer Incentives funded by Fl partners
Slide 11: Q3 2020 Results
Q3 2020 Results Consumer Incentives (25.0%) Adjusted (18.3%) FiShare Adjusted Contribution 32019 $19,749 @3 2020 Three Months Ended ‘September 30 2019 2020 $ % $82,792 $62,093 ($20,699) (25.0%) Consumer Incentives 26573 16,014 (10,359) (89.3) Revenue $56,419 $46,079 ($10,340) (18.3) Adjusted Fl Shar
Slide 12: Significant FI MAU increase precedes opportunity for expected Billings growth and future ARPU expansion
Significant Fl MAU increase precedes opportunity for expected Billings growth and future ARPU expansion (FI MAUs in millions) $0.55 108.5 59.3 aie Q2 18 Q3 18 Q4i8 Qi19 Q219 Q319 Q419 (1) Please see appendix for definitions, (] eama owe @ Fimause Qi20 Q220 om ARPUN Q320 12
Slide 13: Appendix
Appendix
Slide 14: Q3 2020 Results (unaudited)
Appendix Q3 2020 Results (unaudited) (Amounts in thousands, except ARPU and per sha Three Menthe Ended Nine Months Ended September 30, Change September 30, Change 2020 2019 AMT % 2020 2019 AMT % Revenue $46,079 $56,419 ($10,340) (18.3%) ‘$119,810 $141137, ($21,327) (15.1%) 62,093 82,792 (20,698) (25
Slide 15: Guidance
Appendix TR] © 2020 caratytcs Guidance Billings” Revenue Q4 2020 Guidance __ FY 2020 Guidance $79.0 - $89.0 $248.4 - $258.4 $55.0 - $62.0 $174.8 - $181.8 is presented below under 15
Slide 16: Reconciliation of GAAP Revenue to Billings
Appendix Reconcilation of GAAP Revenue to Billings (unaudited) “Amoi ‘Three Months Ended Mar 31, Jun30, Sept30, Dec 31, Mar 31, Jun30, Sept30, Dec3t, Mar3i, Jun 30, Sep 30, 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Revenue $32,713 $35,570 $34,582 $47,819 $35,988 $48,730 $56,419 «$69,293
Slide 17: Reconciliation of GAAP Gross Profit to Adjusted Contribution
Appendix Reconciliation of GAAP Gross Profit to Adjusted Contribution (unaudited) Amount usands ‘Three Months Ended Marst, Jun 50, Sept30, Dect, MarSt, Jun30, Sept 30, Decst, MarSt, Jun30, Sept 30, 201 2018S 2018 ~=—S 2018S 2019 201920192019 2020» 20202020 Revenue $527 $85,570 $34,582 $47,819 $35,98
Slide 18: Reconciliation of GAAP FI Share and Other Third-Party Costs to Adjusted FI Share
Appendix Reconciliation of GAAP Fl Share and Other Third-Party Costs to Adjusted Fl Share and Other Third-Party Costs (unaudited) ‘Three Months Ended Mar3i, Jun30, Sept30, Dec1, Mart, Jun30, Sept30, Dec 31, Mart, Jun 30, Sept 30, zoe = 20208, 2018 20192019 2019 2019 2020 2020-2020 $21420 $19,747 $17
Slide 19: Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA
Appendix Reconcilation of GAAP Net (Loss) Income to Adjusted EBITDA (unaudited) “Three Months Ended Marsi, Jun80, Sept30,Dec31,. Margi, Jun30, Sept30, Dect, «Mart, Jun30, Sept 30, 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 ($20,055) ($18,053) ($4,368) ($1,566) ($6,514) ($6,510) (7,747) «
Slide 20: Reconciliation of GAAP Net Loss to Non-GAAP Net (Loss) Income and Per Share
Appendix Reconciliation of GAAP Net Loss to Non-GAAP Net (Loss) Income and Non-GAAP Net (Loss) Income Per Share (unaudited) (Amounts in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net loss (15,356) ($7,747) ($48,645) ($20,
Slide 21: Reconciliation of Forecasted GAAP Revenue to Billings
Appendix TR] © 2020 caratytcs Reconcilation of Forecasted GAAP Revenue to Billings (unaudited) (Amounts in millions Q4 2020 Guidance FY 2020 Guidance Revenue $55.0 - $62.0 $174.8 - $181.8 Plus: Consumer Incentives $17.0- $34.0 $66.6 - $83.6 Billings $79.0 - $89.0 $248.4 - $258.4 21
Slide 22: Definitions
Appendix Definitions ‘Adjusted contribution: We define adjusted contribution as the measure by which revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our Fl partners. Adjusted contribution demonstrates how incremental markating
Slide 23: Industry Definitions
Appendix Industry Definitions Industry E-Comm Entertainment Grocery Other Restaurant Retail Subscription Travel Exclusions Segment Families E-Commerce Amusement Parks, Cinema/ Video, Concerts/ Theater, Gaming, Golf, Miscellaneous Recreation Services, Museums/ Parks, Radio, Sporting & Sporting Venues
Slide 24: Cardlytics
Ly] cardlytics