26 slides from Cardlytics, Inc. Common Stock's earnings presentation, Aug 1, 2023
Slide 1: Cardlytics Q2 2023 Earnings Presentation
CARDLYTICS Q2 2023 Earnings Presentation August 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 188M+ 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 nearly all 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 c
Slide 7: Financial information & operating metrics
Financial information & operating metrics
Slide 8: Trended consolidated results
Trended consolidated results Revenue Adj. Contribution(1) Billings(1) Q2 Billings 1.6% y/y $134.0 $126.1 $126.1 Q2 Revenue $110.4 1.7% y/y $107.7 $110.4 $109.4 $98.4 $107.7 $98.2 $95.6 $90.0 $85.3 $82.5 $76.3 $75.4 $76.7 $72.7 $67.9 $64.3 Q2 Adj. $58.9 $65.0 $53.2 Contribution 6.8% y/y $44.0 $40.0 $
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: Q2 2023 year-over-year consolidated results
Q2 2023 year-over-year consolidated results Three Months Ended Change June 30, 2022 2023 $ % BILLINGS 1.6% Billings(1) $107,744 $109,424 $1,680 1.6% $ 32,723 Consumer Consumer Incentives 32,339 32,723 384 1.2% $32,339 Incentives Revenue $75,405 $76,701 $1,296 1.7% REVENUE 1.7% Partner Share and othe
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 June 30, June 30, vs 2022 vs 2021 2023 2022 2021 Grocery & Gas > (5%) < 180% > 10% > 10% > 0% Restaurant > (10%) > (30%) > 15% > 20% > 30% Retail > (5%) < 15% > 30% < 35% <
Slide 12: Cardlytics platform engagement metrics
Cardlytics platform Offer Activation Rates by Industry Q2 2022 Q2 2023 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 future ARPU expansion
Significant MAU increase precedes opportunity for expected billings growth and future ARPU expansion for the Cardlytics platform MAUs(1) ARPU(1) $0.45 $0.49 188.8 188.1 $0.38 $0.36 184.7 186.7 179.9 $0.38 $0.36 $0.36 $0.34 178.5 $0.34 $0.32 175.4 170.6 168.6 167.6 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22
Slide 14: Appendix
14 Appendix
Slide 15: Q2 2023 results
Q2 2023 results Three Months Ended Six Months Ended Change Change June 30, June 30, 2023 2022 AMT % 2023 2022 AMT % Revenue $76,701 $75,405 $1,296 1.7% $141,032 $143,333 ($2,301) (1.6%) Billings(1) 109,424 107,744 1,680 1.6% 205,050 205,969 (919) (0.4%) Gross Profit 30,516 26,963 3,553 13.2% 55,039
Slide 16: Guidance
Guidance Q3 2023 Guidance Billings(1) $111.0 - $123.0 Revenue $75.0 - $84.0 Adjusted Contribution(1) $39.0 - 45.0 Adjusted EBITDA(1) ($2.0) - $2.0
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, 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Cardlytics Platform Revenue $53,230 $56,763 $62,075 $86,686 $63,983 $69,270 $67,285 $76,647 $59,030 $70,72
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, Cardlytics Platform 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Revenue $53,230 $56,763 $62,075 $86,686 $63,983 $69,270 $67,285 $76,
Slide 19: 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, Mar 31, Jun 30, 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 Cardlytics Platfo
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, 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Net (loss) income ($24,895) ($47,306) ($44,529) ($11,834) $33,038
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, 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Cardlytics Platform Adjusted Contribution $24,341 $27,603 $28,877 $
Slide 22: Reconciliation of GAAP net income to non-GAAP net loss and per share
Reconciliation of GAAP net income to non-GAAP net loss and non-GAAP net loss per share Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net loss ($23,508) ($126,290) ($9,900) ($93,252) Plus: Stock-based compensation expense 11,739 12,842 19,707 26,427 Foreign currency (gain)
Slide 23: Reconciliation of forecasted GAAP revenue to billings
Reconciliation of forecasted GAAP revenue to billings Q3 2023 Guidance Revenue $75.0 - $84.0 Plus: Consumer Incentives $36.0 - $39.0 Billings $111.0 - $123.0
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: fy] cardlytics
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