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Jun 30, 2020

Cardlytics Q2 2020 Earnings Report

Cardlytics' financial results for Q2 2020 were announced, revealing a decrease in revenue compared to the same quarter last year, but the company is optimistic about narrowing year-over-year declines in the second half of the year.

Key Takeaways

Cardlytics reported a revenue of $28.2 million, a 42% decrease year-over-year. The company's FI MAUs increased by 31% to 157.2 million, but ARPU decreased by 55% to $0.18. The company is optimistic about long-term growth due to the launch of Wells Fargo and progress in product development initiatives.

Revenue decreased by 42% year-over-year to $28.2 million.

FI MAUs increased by 31% year-over-year to 157.2 million.

ARPU decreased by 55% year-over-year to $0.18.

Net loss attributable to common stockholders was $(19.8) million, or $(0.73) per diluted share.

Total Revenue
$28.2M
Previous year: $48.7M
-42.1%
EPS
-$0.38
Previous year: -$0.12
+216.7%
Monthly Active Users
157.2M
Previous year: 120.1M
+30.9%
Average Revenue per User
$0.18
Previous year: $0.4
-55.0%
Gross Profit
$7.91M
Cash and Equivalents
$98.4M
Total Assets
$183M

Cardlytics

Cardlytics

Forward Guidance

Cardlytics anticipates narrowing year-over-year declines in the second half of 2020, driven by the completion of the Wells Fargo launch and advancements in product development.

Positive Outlook

  • Consumer spending recovered throughout the quarter.
  • Optimistic about narrowing year-over-year declines in the second half of 2020.
  • Completed launch of Wells Fargo, expanding reach to more than 150 million MAUs.
  • Extensive progress on product development initiatives.
  • Self-service and automation platform is now being tested with several agencies.

Challenges Ahead

  • Slight pause in consumer spending in recent weeks.
  • Revenue decreased by 42% year-over-year.
  • Billings decreased by 46% year-over-year.
  • Gross profit decreased by 55% year-over-year.
  • Adjusted EBITDA was a loss of $(7.7) million compared to a loss of $(0.6) million in the second quarter of 2019.