Cardlytics (NASDAQ:CDLX – Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($1.03) EPS for the quarter, beating the consensus estimate of ($1.93) by $0.90, FiscalAI reports. Cardlytics had a negative return on equity of 956.56% and a negative net margin of 55.92%. The firm had revenue of $32.88 million during the quarter, compared to the consensus estimate of $36.35 million.
Here are the key takeaways from Cardlytics’ conference call:
- Q3 results fell short of guidance: billings declined 32% year over year to $57.2 million and revenue declined 30% to $32.9 million. Management cited a U.K. bank-partner disruption and tighter advertiser budgets, particularly in grocery, as key headwinds.
- Cardlytics signed several non-bank publisher partners, including Yahoo, VodafoneThree, Rove and, after quarter-end, Coupert, expanding its offers beyond financial institutions. The company said more than half of cards linked through CRP partners are outside its existing bank network, though the impact is expected to build into 2027.
- New-business billings grew 25% sequentially, and advertisers that launched in Q2 increased billing 58% in Q3, with 70% renewing with new budgets. Management expects Q4 billings of $63 million to $69 million, representing 10%–20% sequential growth, and forecasts a return to sequential growth.
- Profitability and liquidity remain watchpoints: adjusted EBITDA was $0.4 million versus $3.3 million a year earlier, free cash flow was negative $1.6 million, and the company ended the quarter with $29.9 million in cash plus about $10.4 million available on its credit facility. Management said it is evaluating options to improve its balance sheet and cash flow.
Cardlytics Price Performance
CDLX stock traded down $0.24 during trading hours on Friday, reaching $1.95. 46,876 shares of the stock were exchanged, compared to its average volume of 96,912. The company has a market cap of $11.33 million, a price-to-earnings ratio of -0.30 and a beta of 0.79. Cardlytics has a 12 month low of $1.57 and a 12 month high of $15.55. The firm’s 50-day moving average is $2.81 and its 200-day moving average is $5.97.
Analyst Ratings Changes
CDLX has been the topic of several research reports. Weiss Ratings reissued a “sell (e+)” rating on shares of Cardlytics in a research note on Friday, October 2nd. Wall Street Zen cut shares of Cardlytics from a “hold” rating to a “sell” rating in a research note on Saturday, September 19th. One research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Sell” and an average target price of $10.00.
Check Out Our Latest Report on Cardlytics
Insider Activity
In other news, CEO Amit Gupta sold 10,351 shares of the business’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $2.71, for a total transaction of $28,051.21. Following the completion of the transaction, the chief executive officer owned 146,288 shares of the company’s stock, valued at approximately $396,440.48. The trade was a 6.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last 90 days, insiders sold 31,194 shares of company stock valued at $100,568. Company insiders own 5.90% of the company’s stock.
Cardlytics Company Profile
Cardlytics, Inc is a financial technology and advertising company that operates a marketing platform through banks and other financial institutions. Its technology connects consumers with targeted merchant offers based on transaction data, while providing advertisers with a way to reach customers through digital banking applications and other financial channels.
The company’s platform supports merchant-funded rewards, cash-back promotions and purchase-based advertising. Participating consumers can receive offers from retailers, restaurants, travel providers and other businesses, while advertisers can use Cardlytics’ data and measurement tools to target audiences and evaluate whether campaigns lead to purchases.
Cardlytics was founded in 2008 by Scott Grimes and Lynne Laube and is headquartered in Atlanta, Georgia.
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