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

Cardlytics (NASDAQ:CDLX) released its earnings results 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. The firm had revenue of $32.88 million during the quarter, compared to analyst estimates of $36.35 million. Cardlytics had a negative net margin of 55.92% and a negative return on equity of 956.56%.

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

Shares of NASDAQ:CDLX traded down $0.24 on Friday, hitting $1.95. 46,876 shares of the company’s stock were exchanged, compared to its average volume of 96,912. The stock has a market capitalization 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 business’s 50 day simple moving average is $2.81 and its two-hundred day simple moving average is $5.97.

Insider Activity at Cardlytics

In other news, CEO Amit Gupta sold 10,351 shares of the company’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $2.71, for a total value of $28,051.21. Following the transaction, the chief executive officer directly 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 transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders have sold 31,194 shares of company stock valued at $100,568 in the last quarter. Corporate insiders own 5.90% of the company’s stock.

Analyst Upgrades and Downgrades

CDLX has been the subject of several analyst reports. Wall Street Zen downgraded shares of Cardlytics from a “hold” rating to a “sell” rating in a research note on Saturday, September 19th. Weiss Ratings reaffirmed 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 company’s stock. Based on data from MarketBeat.com, Cardlytics has a consensus rating of “Sell” and an average price target of $10.00.

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.