Cardlytics (NASDAQ:CDLX) Releases Earnings Results, Beats Expectations By $0.90 EPS

Cardlytics (NASDAQ:CDLX) posted its quarterly earnings data on Thursday. The company reported ($1.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.93) by $0.90, FiscalAI reports. Cardlytics had a negative net margin of 55.92% and a negative return on equity of 956.56%. The business 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 Trading Down 11.0%

CDLX stock traded down $0.24 during trading on Friday, hitting $1.95. 46,876 shares of the stock traded hands, compared to its average volume of 96,912. The stock 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 one year low of $1.57 and a one year high of $15.55. The company has a 50 day simple moving average of $2.81 and a 200 day simple moving average of $5.97.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on CDLX shares. Wall Street Zen downgraded shares of Cardlytics from a “hold” rating to a “sell” rating in a report on Saturday, September 19th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Cardlytics in a research note on Friday, October 2nd. One investment analyst has rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Sell” and a consensus price target of $10.00.

Insider Buying and Selling

In other news, CEO Amit Gupta sold 10,351 shares of the 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 sale, the chief executive officer owned 146,288 shares in the company, valued at approximately $396,440.48. This represents a 6.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last 90 days, insiders sold 31,194 shares of company stock worth $100,568. 5.90% of the stock is owned by corporate insiders.

About Cardlytics

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.