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- **Topline Challenge**: Q3 billings down 20.3% YoY, but 73% of category-level offer users redeemed multiple offers, mitigating impact.
- **Profitability Boost**: Adjusted contribution margin hit 57.7%, highest ever, due to better partner mix.
- **Cost Efficiency**: $26M annual savings from workforce reduction; Q4 OpEx cut 19% YoY.
- **CRP Expansion**: New OpenTable partnership and 2 other CRP launches in Q4, positioning for 2026 growth.
- **Positive Outlook**: Q4 adjusted EBITDA expected positive, despite billings decline, driven by margin and cost control.

**【CEO Summary Section】**
- **Challenges and Mitigation**: Q3 billings were 20.3% lower YoY due to a large FI partner blocking content, but 73% of consumers who redeemed a category-level offer also redeemed another, mitigating some impact. Workforce reduced by 30%, saving $26M annually.
- **Supply Diversification**: Expanded FI partnerships (e.g., adding debit/SMB portfolios) and CRP expansion with OpenTable, aiming to replace lost supply with higher-margin partners.
- **Advertiser Demand**: Retained 100% of advertisers despite supply loss; new pilots with athletic apparel and hotel brands, and wins back key accounts like a global coffee chain.
- **Network Performance**: 21% YoY ROAS improvement; enhanced geo-targeting and multi-location reporting for franchises.
- **Financial Steps**: Repaid $46M convertible notes; Q4 focused on proving performance with top brands and new business.

**【CFO Financial Commentary】**
- **Q3 Results**: Billings $89.2M (-20.3% YoY), revenue $52.0M (-22.4%), adjusted EBITDA $3.2M (vs. -$1.8M). Adjusted contribution margin 57.7% (vs. 54.2%), driven by better partner mix.
- **Margin Trends**: Billings-to-revenue margin temporarily down due to July supply changes, but October trending higher. Adjusted contribution margin in mid-50s expected for Q4.
- **Cost Savings**: $26M annualized savings from workforce reduction; OpEx $27-28M in Q4, down 19% YoY.
- **Q4 Guidance**: Billings $86-96M (-26% to -17%), adjusted EBITDA $0.9-7.9M. Focus on CRP expansion and U.K. growth (22% YoY revenue).

**【Q&A Highlights】**
- **Billing Margins**: Q3 margin dip due to July supply changes, but October improved. Long-term margin stability in low 60s expected.
- **EBITDA Range**: Wide range due to top-line uncertainty; OpEx tightly controlled at $27-28M. Positive EBITDA driven by margin improvements and cost savings.

Cardlytics, Inc. (CDLX) Q3 2025 Earnings Call Transcript

- **Major FI Partner Restriction**: Unexpected content restrictions from largest FI partner caused 15-22% YoY billings decline, but 0 advertiser churn.
- **U.K. Growth Engine**: U.K. revenue up 29% Q2, highest billings quarter with 45 new logos.
- **Engagement Pricing Dominance**: 79% of advertisers on engagement-based models, compressing sales cycles.
- **Financial Resilience**: Q2 adj. EBITDA $2.7M (vs. -$2.3M prior year), $50M credit draw for debt repayment.
- **Bridg Expansion**: Rippl revenue +100% QoQ, CPG pilot shows 30% product inclusion lift.

**【CEO Opening Remarks】**
- Q2 marked steady progress against the 4-year strategic pillars: supply diversification, advertiser demand growth, network performance optimization, and Bridg expansion.
- Highlighted challenges from a major FI partner restricting content, impacting billings but maintaining advertiser trust.
- U.K. business achieved highest billings quarter, driven by everyday spend and retail categories.
- Engagement-based pricing now covers 79% of advertisers, with 96% of new business adopting this model.

**【CEO Business Pillars】**
1. **Supply Diversification**: 
   - 92% YoY increase in at-bats from a top-5 U.S. bank partner.
   - Cardlytics Rewards pilot shows promise, with 10% weekly growth on Trade Desk.
   - Bridg partnerships expand to 140M unique shopper profiles, including Hy-Vee.
2. **Advertiser Demand**: 
   - U.S. billings growth in grocery (+41%) and retail, offset by travel sector weakness.
   - U.K. revenue up 29%, driven by top 5 clients and new advertisers.
3. **Network Performance**: 
   - New Insights portal dashboards provide real-time customer intelligence.
   - ACPU improved 10% QoQ, though still down 15% YoY due to new FI partner ramp.
4. **Bridg Growth**: 
   - Q2 Rippl revenue more than doubled, with 10% weekly growth on Trade Desk.
   - CPG pilot shows 30% basket product inclusion rate and 2% basket size increase.

**【CFO Financial Commentary】**
- Q2 billings: $104M (-5.7% YoY), revenue: $63.2M (-9.2% YoY), adj. EBITDA: $2.7M (vs. -$2.3M prior year).
- U.S. revenue down 13% due to pricing pressure, U.K. up 29%.
- Adjusted contribution margin 57.1% (vs. 52% prior year), highest on record.
- Q3 Outlook: Billings $87-95M (-15% to -22% YoY), adj. EBITDA breakeven.
- $50M credit draw to repay convertible notes, maintaining $40-50M cash balance.

**【Q&A Highlights】**
- **Content Restrictions**: Partner restricting ~50% of billings, but 79% of advertisers remain on platform.
- **Advertiser Response**: 0 churn, brands frustrated with limited access but trust Cardlytics' measurement capabilities.
- **Rippl Momentum**: 10% weekly growth on Trade Desk, new retail partnerships in pipeline.
- **AI Strategy**: Early-stage investments in analytics and engineering efficiency.

Cardlytics, Inc. (CDLX) Q2 2025 Earnings Call Transcript

- **Consumer Spending Resilience**: $5.8T annual spend shows March/April rebound, with auto, home, e-commerce, and apparel categories strong.
- **New Partnerships**: Launched with large FI partner (top 5 in billings), neobank (21% brand growth), and first non-FI CRP partner.
- **Financial Performance**: Q1 billings beat guidance at $97.6M, but adjusted EBITDA negative due to macro cautiousness.
- **Cost Control**: 15% workforce reduction saves $16M/year, extended credit maturity to 2028.
- **CRP Opportunity**: Non-FI partners expand reach with faster onboarding (4 weeks) and new ad categories (e.g., financial services).
- **Daily Spend Strength**: Countercyclical advertisers (retail, restaurants) continue to scale budgets despite macro uncertainty.


**【CEO Opening Remarks】**
- Consumer spending remained strong at $5.8T annually, with March and April rebounding after February softness. Key categories like auto, home improvement, e-commerce, and apparel showed growth, driven by pre-tariff purchasing.
- Advertisers are cautious due to macroeconomic uncertainty, but leading brands continue to scale budgets (e.g., a major U.S. airline expanded to annualized budgets).
- **Four Strategic Pillars**: 
  1. **Increasing Supply**: Launched with a new large FI partner (now top 5 in billings), neobank partner with 21% brand growth in 1 month, and first non-FI CRP partner (digital sports platform).
  2. **Strengthening Demand**: 96% of new brands use engagement-based pricing; 10% of budgets now allocate to advanced capabilities like location-level targeting.
  3. **Optimizing Network**: Delivery issues resolved; 74% of advertisers on engagement-based pricing, up from 65% last quarter.
  4. **Growing Bridg**: 130M unique shoppers across 11 retailers; launched CPG pilot with bank partner.
- Announced 15% workforce reduction to improve profitability, extended credit maturity to 2028.

**【CFO Financial Highlights】**
- Q1 2025 Results: 
  - Total billings: $97.6M (-7.3% YoY), beating guidance
  - Revenue: $61.9M (-8.4% YoY)
  - Adjusted EBITDA: -$4.4M (vs. -$0.1M last year)
  - Free cash flow: -$10.8M (improvement of $11.6M YoY)
- **New Metrics**: 
  - MQUs: 214.9M (+12% YoY)
  - ACPU: $0.25 (down 24% YoY)
- Q2 Outlook: 
  - Billings: $100M-$108M (-9% to -2% YoY)
  - Revenue: $61M-$67M
  - Adjusted EBITDA: -$4M to +$1M
  - Operating expenses: <$35M/Q

**【Q&A Key Takeaways】**
- **CRP Platform**: First non-FI partner (digital sports platform) launched in Q2 with no 2025 financial impact. Onboarding time reduced to 4 weeks via SDK/API improvements.
- **Non-FI Economics**: Similar to FI partners but with different engagement patterns (e.g., financial services ads allowed on non-bank platforms).
- **Macro Environment**: U.S. consumer spending holds strong; U.K. growth in travel/entertainment despite advertiser budget contraction.
- **Partner Mix**: New large FI partner skewed Q1 ACPU lower, but Q2 run rate similar to top FI banks.
- **Daily Spend Advertisers**: Countercyclical performance; e.g., airline used Cardlytics to re-engage customers during softness.


Cardlytics (CDLX)-7 May 25-2025 Q1 Earnings call transcript

- **Q4 Beat & Turnaround Progress**: Exceeded high-end guidance with billings $116.3M, UK revenue +27.2% YoY, and 90%+ new U.S. advertisers on engagement-based pricing.
- **New Growth Drivers**: Signed fastest-growing Neobank partner in U.S., UK pilots with global airline, and Bridg pipeline strength for 2025 recovery.
- **Cost Efficiency**: Operating expenses down 16% YoY to $34.3M; free cash flow improving to -$1.5M Q4 (vs. -$3.9M Q3).
- **2025 Outlook**: Q1 as trough with sequential improvement; focus on network stabilization, demand diversification, and Bridg/Ripple growth.

**【CEO Business Overview】**
- **2024 Challenges & Turnaround Plan**: Faced executional challenges (network upgrades, FI platform changes, competition), but refocused on core strengths. Divested non-core businesses (e.g., Dosh) and reinvested in partnerships, data engineering, and go-to-market efforts. Opened a new office in Taiwan to leverage local talent.
- **Q4 Highlights**: Exceeded high-end guidance across all metrics due to pipeline wins and platform improvements. Signed a new Neobank partner (fastest-growing fintech in the U.S.) and renewed agreements with existing FI partners. UK business grew 27.2% YoY.
- **Four Key Pillars of Growth**:
  1. **Supply Expansion**: New FI partner in the U.S. reached all eligible card members; UK growth driven by module supply and consumer engagement.
  2. **Demand Growth**: 90%+ new U.S. advertisers on engagement-based pricing; UK pilots with global airline and ride-sharing services.
  3. **Network Optimization**: Sequential improvement in delivery predictability; 61% U.S. advertisers on engagement-based pricing (up from 51% Q3).
  4. **Bridg Growth**: Q4 pipeline strength, despite underperformance; expects Bridg/Ripple to return to growth in Q1 2025.

**【CFO Financial Highlights】**
- **Q4 2024 Results**: Total billings $116.3M (-11.2% YoY), revenue $74.0M (-16% YoY), adjusted EBITDA $6.4M (-38% YoY). UK revenue grew 27.2% YoY. Revenue-to-billings margin improved 3.7pts QoQ to 63.6%.
- **Cost Management**: Operating expenses $34.3M (excluding stock-based comp), down sequentially. Free cash flow negative $1.5M (vs. -$3.9M Q3). Ended Q4 with $65.6M cash and $100M+ liquidity.
- **Q1 2025 Outlook**: Billings $91.5M-$94.5M (-13% to -10% YoY), revenue $57M-$60M, adjusted EBITDA -$7.5M to -$4.0M. Expects Q1 to be trough, with sequential improvement in 2025.

**【Q&A Key Takeaways】**
- **Delivery Performance**: Resolved over-delivery issues; under-delivery improving with targeting and relevancy. Sequential progress in budget predictability.
- **New Partnerships**: Neobank partner to scale Q1; UK growth driven by ride-sharing and grocery advertisers.
- **OpEx Trends**: 2025 expenses expected in mid-to-high $30M range (excluding stock-based comp). Focused on cost discipline while investing in growth levers.
- **Consumer Incentives**: Revenue-to-billings margin stable at ~63.6%, driven by better rewards management and engagement-based pricing.
- **Bridg Recovery**: Lapped key account loss in Q1; expects accelerating growth in H2 2025.


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