Cardlytics (NASDAQ:CDLX) Releases Quarterly Earnings Results, Beats Estimates By $1.49 EPS

Cardlytics (NASDAQ:CDLX) issued its quarterly earnings data on Wednesday. The company reported ($0.81) earnings per share for the quarter, beating analysts’ consensus estimates of ($2.30) by $1.49, FiscalAI reports. Cardlytics had a negative return on equity of 956.56% and a negative net margin of 46.03%.The business 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 Price Performance

Shares of Cardlytics stock traded up $0.07 on Wednesday, reaching $4.09. 77,231 shares of the company were exchanged, compared to its average volume of 95,906. The stock’s 50 day moving average price is $4.82 and its 200-day moving average price is $7.53. Cardlytics has a 1-year low of $3.50 and a 1-year high of $32.80. The company has a market cap of $23.75 million, a P/E ratio of -0.23 and a beta of 0.62.

Analyst Ratings Changes

CDLX has been the topic of a number of recent research reports. Weiss Ratings reiterated a “sell (e+)” rating on shares of Cardlytics in a research note on Wednesday, July 8th. Lake Street Capital set a $10.00 price objective on shares of Cardlytics in a research note on Friday, May 8th. Needham & Company LLC restated a “hold” rating on shares of Cardlytics in a report on Thursday, June 18th. Finally, Wall Street Zen cut shares of Cardlytics from a “hold” rating to a “sell” rating in a report on Saturday, June 13th. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $10.00.

Insider Activity at Cardlytics

In related news, CEO Amit Gupta sold 9,640 shares of Cardlytics stock in a transaction that occurred on 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. The trade was a 7.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO David Thomas Evans acquired 5,000 shares of the company’s stock in a transaction on Monday, May 18th. The stock was purchased at an average cost of $6.30 per share, for a total transaction of $31,500.00. Following the completion of the transaction, the chief financial officer owned 31,793 shares in the company, valued at approximately $200,295.90. The trade was a 18.66% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders sold 18,289 shares of company stock worth $80,289. 5.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cardlytics

Institutional investors have recently added to or reduced their stakes in the business. Virtu Financial LLC purchased a new position in Cardlytics in the fourth quarter valued at approximately $39,000. Qube Research & Technologies Ltd purchased a new stake in shares of Cardlytics during the 3rd quarter worth approximately $55,000. Marshall Wace LLP acquired a new position in shares of Cardlytics in the 2nd quarter valued at $59,000. Renaissance Technologies LLC acquired a new position in shares of Cardlytics in the 4th quarter valued at $62,000. Finally, Barclays PLC grew its position in shares of Cardlytics by 31,167.6% in the 4th quarter. Barclays PLC now owns 55,969 shares of the company’s stock valued at $64,000 after buying an additional 55,790 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.