26 slides from Cardlytics, Inc. Common Stock's earnings presentation, Mar 1, 2023
Slide 1: Cardlytics Q4 2022 Earnings Presentation
CARDLYTICS Q4 2022 Earnings Presentation March 1, 2023
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 186M+ Monthly Active Users(1) intelligence $4.1T+ 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) Q4 Billings (5.9%) y/y $126.1 Q4 Revenue (8.4%) y/y $110.4 $107.7 Q4 Adj. Contribution (9.2%) y/y
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: Q4 2022 year-over-year consolidated results
Q4 2022 year-over-year consolidated results Three Months Ended Change December 31, BILLINGS 2021 2022 $ % Billings(1) $133,973 $126,116 ($7,857) (5.9%) Consumer $43,924 (5.9%) Incentives Consumer Incentives 43,924 43,613 (311) (0.7%) REVENUE Revenue $90,049 $82,503 ($7,546) (8.4%) $43,613 Adjusted P
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 December 31, December 31, vs 2021 vs 2020 vs 2019 2019 2020 2021 2022 Grocery & Gas > (10%) > 50% < 35 % < 10% > 10% > 10% > 5% Restaurant > (40%) > (35%) > (35%) < 30% < 30
Slide 12: Cardlytics platform engagement metrics
Cardlytics platform Offer Activation Rates by Industry Q4 2021 Q4 2022 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)
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)
Slide 14: Appendix
14 Appendix
Slide 15: Q4 2022 results
Q4 2022 results Three Months Ended Year Ended Change Change December 31, December 31, 2022 2021 AMT % 2022 2021 AMT % Revenue $82,503 $90,049 ($7,546) (8.4%) $298,542 $267,116 $31,426 11.8% Billings(1) 126,116 133,973 (7,857) (5.9%) 442,477 394,075 48,402 12.3% Gross Profit 33,409 36,163 (2,754) (7.
Slide 16: Guidance
Guidance Q1 2023 Guidance Billings(1) $84.0 - $93.0 Revenue $54.0 - $63.0 Adjusted Contribution(1) $26.0 - $31.0 Adjusted EBITDA(1) ($17.0) - ($10.0)
Slide 17: 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, Dec 31, 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Cardlytics Platform Revenue $45,509 $28,222 $46,079 $67,082 $53,230 $56,763 $62
Slide 18: 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, Dec 31, Cardlytics Platform 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Revenue $45,509 $28,222 $46,079 $67,082 $
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, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sept 30, Dec 31, Mar 31, Jun 30, Sept 30, Dec 31, 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Car
Slide 20: 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, Dec 31, 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Net (loss) income ($13,531) ($19,758) (
Slide 21: 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, Dec 31, 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Cardlytics Platform Adjusted Contributio
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 Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 Net loss ($378,279) ($11,834) ($465,264) ($128,565) Plus: Stock-based compensation expense 12,492 12,849 44,686 50,264 Foreign cur
Slide 23: Reconciliation of forecasted GAAP revenue to billings
Reconciliation of forecasted GAAP revenue to billings Q1 2023 Guidance Revenue $54.0 - $63.0 Plus: Consumer Incentives $29.0 - $31.0 Billings $84.0- $93.0
Slide 24: 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 on ou
Slide 25: Industry and account definitions
Industry and account definitions Segment Segment Constituents Agency 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 campaigns A
Slide 26: Cardlytics
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