Cardlytics (NASDAQ:CDLX – Get Free Report) issued its quarterly earnings data on Wednesday. The company reported ($1.50) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($2.30) by $0.80, Zacks reports. Cardlytics had a negative return on equity of 956.56% and a negative net margin of 55.92%.The company had revenue of $36.88 million during the quarter, compared to analysts’ expectations of $37.00 million.
Here are the key takeaways from Cardlytics’ conference call:
- Advertiser momentum improved: active advertisers rose 18% sequentially, new-logo volume increased 59%, and advertiser churn declined 50% by count and 88% by dollar impact.
- Cardlytics reported Q2 Adjusted EBITDA of $1.7 million, above the high end of its guidance, while adjusted operating expenses fell 31% year over year and contribution margin improved to 57.7%.
- The company cited progress in bank partnerships, local offers, AI-powered campaign tools and purchase intelligence, including expanded card-linked offers for Monzo in the U.K. and early partners responding positively to its Cardlytics Rewards Platform.
- Q2 billings fell 34% year over year to $65.5 million, revenue declined 36% to $36.9 million, and monthly qualified users dropped to 185 million from 224 million due to changes in bank-partner relationships.
- Free cash flow was negative $10.7 million and operating cash flow was negative $8.6 million; the company ended the quarter with $28 million in cash and approximately $20 million available under its credit facility.
- Q3 guidance calls for billings of $61 million-$67 million, revenue of $34 million-$39 million and Adjusted EBITDA between breakeven and $3 million, implying a broadly comparable quarter as management focuses on stabilizing the business before renewed growth.
Cardlytics Stock Performance
CDLX traded up $0.07 during mid-day trading on Friday, reaching $3.59. The stock had a trading volume of 16,052 shares, compared to its average volume of 95,660. The firm’s fifty day simple moving average is $4.69 and its two-hundred day simple moving average is $7.42. The stock has a market capitalization of $20.85 million, a P/E ratio of -0.20 and a beta of 0.62. Cardlytics has a 52 week low of $3.49 and a 52 week high of $32.80.
Analysts Set New Price Targets
Get Our Latest Analysis on Cardlytics
Insiders Place Their Bets
In other news, CEO Amit Gupta sold 9,640 shares of the company’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $4.39, for a total transaction of $42,319.60. Following the transaction, the chief executive officer owned 113,850 shares of the company’s stock, valued at $499,801.50. This represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO David Thomas Evans acquired 5,000 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was purchased at an average price of $6.30 per share, with a total value of $31,500.00. Following the completion of the transaction, the chief financial officer owned 31,793 shares of the company’s stock, valued at approximately $200,295.90. This trade represents a 18.66% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have sold 18,289 shares of company stock valued at $80,289. 5.90% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Cardlytics
A number of institutional investors and hedge funds have recently modified their holdings of the business. Virtu Financial LLC bought a new stake in shares of Cardlytics during the 4th quarter valued at $39,000. Invesco Ltd. grew its stake in shares of Cardlytics by 38.1% during the fourth quarter. Invesco Ltd. now owns 170,122 shares of the company’s stock worth $196,000 after purchasing an additional 46,973 shares during the period. Barclays PLC grew its stake in shares of Cardlytics by 31,167.6% during the fourth quarter. Barclays PLC now owns 55,969 shares of the company’s stock worth $64,000 after purchasing an additional 55,790 shares during the period. Renaissance Technologies LLC bought a new stake in Cardlytics in the fourth quarter valued at about $62,000. Finally, Goldman Sachs Group Inc. increased its holdings in Cardlytics by 15.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 109,001 shares of the company’s stock valued at $125,000 after purchasing an additional 14,273 shares during the last quarter. 68.10% of the stock is owned by institutional investors.
Cardlytics Company Profile
Cardlytics, Inc operates a purchase intelligence and marketing platform that connects advertisers with consumers through bank and credit card transaction data. The company partners with financial institutions to analyze anonymized purchase information, enabling brands to deliver highly targeted offers and rewards directly to customers’ online and mobile banking channels. By leveraging real-time insights into consumer spending habits, Cardlytics helps marketers optimize campaign performance and measure return on ad spend more accurately than traditional digital advertising methods.
At the core of Cardlytics’ offering is its proprietary purchase intelligence engine, which aggregates and anonymizes transaction data from partner banks and credit unions.
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