25 slides from Cardlytics, Inc. Common Stock's earnings presentation, Aug 2, 2022
Slide 1: Cardlytics Q2 2022 Earnings Presentation
CARDLYTICS Q2 2022 Earnings Presentation August 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
© 2021 Cardlytics 4 We power a native ad platform in our partners’ digital channels.
Slide 5: Scaled solution based on purchase intelligence
Cardlytics provides a scaled solution based on purchase intelligence 179M+ Monthly Active Users(1) $3.9T+ in Annual Spend(2) 1 in 2 U.S. Purchase Transactions(3) Distinctive benefits for marketers + Reach valuable banking customers + Operate in a brand-safe, privacy-protected, trusted digital channe
Slide 6: Five strategic initiatives to create shareholder value
Cardlytics is focused on five strategic initiatives to create shareholder value + Connecting 50% of MAUs to new Ad Server by end of 2022 + Increasing adoption by agency, middle market and SMB clients Drive long-term growth & operating leverage + Upgraded UI / UX for more content and better offer con
Slide 7: Financial information & operating metrics
02 Financial information & operating metrics
Slide 8: Trended consolidated results
$20.4 $12.4 $19.7 $29.7 $24.3 $29.6 $31.6 $44.0 $32.8 $35.1 $45.5 $28.2 $46.1 $67.1 $53.2 $58.9 $65.0 $90.0 $67.9 $75.4 $67.8 $39.5 $62.1 $94.0 $76.3 $85.3 $98.4 $134.0 $98.2 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Trended consolidated results Q2 Adj. Contribution 18.5% y/y Q2 Re
Slide 9: Billings and adjusted contribution best reflect performance
Billings and adjusted contribution best reflect performance Billings Total in aggregate paid by marketers Consumer incentive Set by CDLX to achieve marketing objectives; can fluctuate based on desired outcome Enhanced consumer incentive Additional Consumer Incentives funded by our Partners GAAP reve
Slide 10: Q2 2022 year-over-year consolidated results
Q2 2022 year-over-year consolidated results Consumer Incentives $26,484 $32,339 Adjusted Partner Share $40,280 $29,630 $35,125 BILLINGS REVENUE ADJ. CONTRIBUTION Adjusted Contribution 26.3% 28.1% 18.5% Q2 2021 Q2 2022 $29,223 Three Months Ended June 30 Change 2021 2022 $ % Billings(1) $85,337 $107,7
Slide 11: Platform advertiser spend by industry
Cardlytics platform advertiser spend by industry Advertising spend from agency accounts grew >35% during the second quarter of 2022 compared to the second quarter of 2021. Agency accounts represented >10% of total advertising spend during the second quarter of 2022 compared to >5% during the second
Slide 12: Cardlytics platform engagement metrics
Cardlytics platform engagement metrics(1) There may be variation in future quarters due to factors such as global economic events, bank launches, new advertisers with significant spend, and growth in nascent or new verticals. Monthly log-in days(2) show that MAUs logged in 10 days per month in Q2 20
Slide 13: 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 ARPU(1)MAUs(1) 140.8 157.2 161.6 163.6 168.6 167.6 170.6 175.4 178.5 179.9 $0.32 $0.18 $0.29 $0.41 $0.32 $0.34 $0.36 $0.49 $0.36 $0.38 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Slide 14: Bridg Gross Margin
Bridg Gross Margin Bridg incurs higher expenses during onboarding + Processing of several years’ worth of historical data initially versus steady state processing of data on a daily basis + Implementation costs are also incurred upfront + New data lake and data warehouse costs + Data transfer costs
Slide 15: Appendix
03 Appendix
Slide 16: Q2 2022 results
Q2 2022 results Three Months Ended June 30, Change Six Months Ended June 30, Change 2022 2021 AMT % 2022 2021 AMT % Revenue $75,405 $58,853 $16,552 28.1% $143,333 $112,083 $31,250 27.9% Billings(1) 107,744 85,337 22,407 26.3% 205,969 161,654 44,315 27.4% Gross Profit 26,963 23,152 3,811 16.5% 53,203
Slide 17: Reconciliation of GAAP revenue to billings
Reconciliation of GAAP revenue to billings Cardlytics Platform Revenue $45,509 $28,222 $46,079 $67,082 $53,230 $56,763 $62,075 $86,686 $63,983 $69,270 Plus: Consumer Incentives 22,267 11,299 16,014 26,883 23,087 26,484 33,464 43,924 30,297 32,339 Billings $67,776 $39,521 $62,093 $93,965 $76,317 $83,
Slide 18: Reconciliation of GAAP gross profit to adjusted contribution
Reconciliation of GAAP gross profit to adjusted contribution Cardlytics Platform Revenue $45,509 $28,222 $46,079 $67,082 $53,230 $56,763 $62,075 $86,686 $63,986 $69,270 Minus: Partner Share and other third-party costs 26,138 16,811 27,971 38,388 29,771 29,890 33,929 47,274 35,027 39,403 Delivery cos
Slide 19: 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, 2020 Jun 30, 2020 Sept 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sept 30, 2021 Dec 31, 2021 Mar 31, 2022 Jun 30, 2022Cardlytics Platform Partner Sha
Slide 20: Reconciliation of GAAP net loss to adjusted EBITDA
(Amounts in thousands) Reconciliation of GAAP net (loss) income to adjusted EBITDA Net (loss) income ($13,531) ($19,758) ($15,356) ($6,777) ($24,895) ($47,306) ($44,529) ($11,834) $33,038 ($126,290) Plus: Income tax benefit - - - - - - - (7,864) - (1,446) Interest expense (income), net (284) 10 283
Slide 21: Reconciliation of adjusted contribution to adjusted EBITDA
Reconciliation of adjusted contribution to adjusted EBITDA (Amounts in thousands) Three Months Ended Mar 31, 2020 Jun 30, 2020 Sept 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sept 30, 2021 Dec 31, 2021 Mar 31, 2022 Jun 30, 2022 Cardlytics Platform Adjusted Contribution $20,379 $12,402 $19,749 $
Slide 22: Reconciliation of GAAP net loss to non-GAAP net loss
Reconciliation of GAAP net loss to non-GAAP net loss and non-GAAP net loss per share Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net income (loss) ($128,228) ($47,306) ($95,190) ($72,201) Plus: Stock-based compensation expense 12,842 13,337 26,427 20,585 Foreign currenc
Slide 23: 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 24: Industry and account definitions
Industry and account definitions Segment Segment Constituents DTC Direct to consumer Entertainment Amusement Parks, Cinema/Video, Concerts/Theater, Gaming, Golf, Miscellaneous Recreation Services, Museums/Parks, Radio, Sporting & Sporting Venues/Other, Ticket Providers Grocery Convenience, Grocery O
Slide 25: In] cardlytics
In] cardlytics