Cardlytics (NASDAQ:CDLX) Issues Earnings Results, Beats Expectations 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. The company had revenue of $36.88 million for the quarter, compared to the consensus estimate of $37.00 million. Cardlytics had a negative return on equity of 956.56% and a negative net margin of 46.03%.

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 Trading Up 1.7%

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

Insider Activity at Cardlytics

In other Cardlytics news, CFO David Thomas Evans acquired 5,000 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were purchased at an average price of $6.30 per share, for a total transaction of $31,500.00. Following the completion of the purchase, the chief financial officer directly owned 31,793 shares of the company’s stock, valued at $200,295.90. The trade was a 18.66% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Amit Gupta sold 9,640 shares of the business’s stock in a transaction dated 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 directly owned 113,850 shares of the company’s stock, valued at approximately $499,801.50. This trade represents a 7.81% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 18,289 shares of company stock worth $80,289. 5.90% of the stock is owned by insiders.

Institutional Trading of Cardlytics

Several institutional investors have recently modified their holdings of the stock. Virtu Financial LLC purchased a new stake in shares of Cardlytics during the fourth quarter worth approximately $39,000. Qube Research & Technologies Ltd purchased a new stake in shares of Cardlytics during the third quarter worth $55,000. Marshall Wace LLP acquired a new stake in shares of Cardlytics in the second quarter valued at about $59,000. Renaissance Technologies LLC purchased a new position in shares of Cardlytics in the fourth quarter worth about $62,000. Finally, Barclays PLC boosted its position in Cardlytics by 31,167.6% during the fourth quarter. Barclays PLC now owns 55,969 shares of the company’s stock worth $64,000 after acquiring an additional 55,790 shares during the last quarter. Institutional investors and hedge funds own 68.10% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Cardlytics in a research report on Wednesday, July 8th. Needham & Company LLC restated a “hold” rating on shares of Cardlytics in a research note on Thursday, June 18th. Wall Street Zen lowered shares of Cardlytics from a “hold” rating to a “sell” rating in a report on Saturday, June 13th. Finally, Lake Street Capital set a $10.00 price target on Cardlytics in a research report on Friday, May 8th. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Cardlytics has a consensus rating of “Reduce” and a consensus target price of $10.00.

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.