Cardlytics (NASDAQ:CDLX) Issues Quarterly Earnings Results

Cardlytics (NASDAQ:CDLX) released its quarterly earnings results on Wednesday. The company reported ($1.50) earnings per share for the quarter, beating the consensus estimate of ($2.30) by $0.80, Zacks reports. The business had revenue of $36.88 million during the quarter, compared to analysts’ expectations of $37.00 million. Cardlytics had a negative return on equity of 956.56% and a negative net margin of 55.92%.

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 $0.11 during trading on Friday, hitting $3.63. 15,346 shares of the stock were exchanged, compared to its average volume of 95,654. Cardlytics has a 1 year low of $3.49 and a 1 year high of $32.80. The firm has a 50 day simple moving average of $4.69 and a 200 day simple moving average of $7.42. The firm has a market cap of $21.07 million, a price-to-earnings ratio of -0.20 and a beta of 0.62.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Weiss Ratings reissued a “sell (e+)” rating on shares of Cardlytics in a report on Wednesday, July 8th. Wall Street Zen downgraded shares of Cardlytics from a “hold” rating to a “sell” rating in a report on Saturday, June 13th. Needham & Company LLC reaffirmed a “hold” rating on shares of Cardlytics in a report on Thursday, June 18th. Finally, Lake Street Capital set a $10.00 price objective on Cardlytics in a research report on Friday, May 8th. Two research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $10.00.

Insider Buying and Selling at Cardlytics

In related news, CFO David Thomas Evans acquired 15,000 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The shares were bought at an average price of $6.50 per share, with a total value of $97,500.00. Following the completion of the transaction, the chief financial officer directly owned 26,793 shares in the company, valued at $174,154.50. This trade represents a 127.19% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Amit Gupta sold 9,640 shares of Cardlytics stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $4.39, for a total value of $42,319.60. Following the completion of the transaction, the chief executive officer owned 113,850 shares in the company, valued at $499,801.50. This trade represents a 7.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 18,289 shares of company stock valued at $80,289. Corporate insiders own 5.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CDLX. Virtu Financial LLC purchased a new stake in Cardlytics during the fourth quarter valued at approximately $39,000. Invesco Ltd. grew its position in Cardlytics by 38.1% during the 4th 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 last quarter. Barclays PLC increased its stake in Cardlytics by 31,167.6% during the 4th quarter. Barclays PLC now owns 55,969 shares of the company’s stock valued at $64,000 after purchasing an additional 55,790 shares in the last quarter. Renaissance Technologies LLC acquired a new position in Cardlytics during the 4th quarter valued at approximately $62,000. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Cardlytics by 15.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 109,001 shares of the company’s stock worth $125,000 after buying an additional 14,273 shares during the last quarter. Hedge funds and other institutional investors own 68.10% of the company’s stock.

About Cardlytics

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.