Cardlytics Announces Second Quarter 2023 Financial Results

August 01, 2023 at 16:05 PM EDT

ATLANTA, Aug. 01, 2023 (GLOBE NEWSWIRE) -- Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the second quarter ended June 30, 2023. Supplemental information is available on the Investor Relations section of Cardlytics' website at http://ir.cardlytics.com/.

"Our results this quarter are a great sign that our strategy and priorities are moving the company towards achieving consistent growth and profitability." said Karim Temsamani, Chief Executive Officer. "We are moving forward with a disciplined approach and the organizational changes we are making continue to give our teams room to operate with speed and a clear focus."

Second Quarter 2023 Financial Results

Revenue was $76.7 million, an increase of 2% year-over-year, compared to $75.4 million in the second quarter of 2022.
Billings, a non-GAAP metric, was $109.4 million, an increase of 2% year-over-year, compared to $107.7 million in the second quarter of 2022.
Gross profit was $30.5 million, an increase of 13% year-over-year, compared to $27.0 million in the second quarter of 2022.
Adjusted contribution, a non-GAAP metric, was $37.5 million, an increase of 7% year-over-year, compared to $35.1 million in the second quarter of 2022.
Net loss attributable to common stockholders was $(23.5) million, or $(0.67) per diluted share, based on 34.9 million fully diluted weighted-average common shares, compared to a net loss attributable to common stockholders of $(126.3) million, or $(3.75) per diluted share, based on 33.6 million fully diluted weighted-average common shares in the second quarter of 2022.
Non-GAAP net loss was $(8.4) million, or $(0.24) per diluted share, based on 34.9 million fully diluted weighted-average common shares, compared to non-GAAP net loss of $(21.7) million, or $(0.65) per diluted share, based on 33.6 million fully diluted weighted-average common shares in the second quarter of 2022.
Adjusted EBITDA, a non-GAAP metric, was a loss of $(4.1) million compared to a loss of $(15.8) million in the second quarter of 2022.

Key Metrics

Cardlytics MAUs were 188.1 million, an increase of 5% year-over-year, compared to 179.9 million in the second quarter of 2022.
Cardlytics ARPU was $0.38 in each of the second quarter of 2023 and 2022.

Definitions of MAUs, ARPU and ARR are included below under the caption “Non-GAAP Measures and Other Performance Metrics."

Third Quarter 2023 Financial Expectations

Cardlytics anticipates billings, revenue, adjusted contribution and adjusted EBITDA to be in the following ranges (in millions):

	Q3 2023 Guidance
Billings⁽¹⁾	$111.0 - $123.0
Revenue	$75.0 - $84.0
Adjusted contribution⁽²⁾	$39.0 - $45.0
Adjusted EBITDA⁽²⁾	($2.0) - $2.0

(1) A reconciliation of billings to GAAP revenue on a forward-looking basis is presented below under the heading "Reconciliation of Forecasted GAAP Revenue to Billings."
(2) A reconciliation of adjusted contribution to GAAP gross profit and a reconciliation of adjusted EBITDA to net loss on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from this non-GAAP measure.

Earnings Teleconference Information

Cardlytics will discuss its second quarter 2023 financial results during a teleconference today, August 1, 2023, at 5:00 PM ET / 2:00 PM PT. A live dial-in will be available after registering at http://ir.cardlytics.com/. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on August 8, 2023 on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Menlo Park, New York, Los Angeles, and London. Learn more at www.cardlytics.com.

Cautionary Language Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our financial guidance for the third quarter of 2023. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control.

Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: risks related to unfavorable conditions in the global economy and the industries that we serve; risks related to the fact that our quarterly operating results have fluctuated and may continue to vary from period to period; our ability to sustain our revenue growth and billings; risks related to the integration of Dosh, Bridg and Entertainment with our company; potential payments under the Merger Agreement with Bridg; risks related to our substantial dependence on our Cardlytics platform; risks related to our substantial dependence on JPMorgan Chase Bank, National Association (“Chase”), Bank of America, National Association ("Bank of America"), Wells Fargo Bank, National Association (“Wells Fargo”) and a limited number of other financial institution (“FI”) partners; risks related to our ability to maintain relationships with Chase, Wells Fargo and Bank of America; the amount and timing of budgets by marketers, which are affected by budget cycles, economic conditions and other factors, including the impact of the macroeconomic events; our ability to generate sufficient revenue to offset contractual commitments to FIs; our ability to attract new partners, including FI partners, and maintain relationships with bank processors and digital banking providers; our ability to maintain relationships with marketers; our ability to adapt to changing market conditions, including our ability to adapt to changes in consumer habits, negotiate fee arrangements with new and existing partners and retailers, and develop and launch new services and features; and other risks detailed in the “Risk Factors” section of our Form 10-Q filed with the Securities and Exchange Commission on August 1, 2023 and in subsequent periodic reports that we file with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Non-GAAP Measures and Other Performance Metrics

To supplement the financial measures presented in our press release and related conference call or webcast in accordance with generally accepted accounting principles in the United States (“GAAP”), we also present the following non-GAAP measures of financial performance: billings, adjusted contribution, adjusted EBITDA, non-GAAP net loss and non-GAAP net loss per share as well as certain other performance metrics, such as monthly active users (“MAUs”) and average revenue per user (“ARPU”).

A “non-GAAP financial measure” refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies.

We have presented billings, adjusted contribution, adjusted EBITDA, non-GAAP net loss and non-GAAP net loss per share as non-GAAP financial measures in this press release. Billings represents the gross amount billed to customers and marketers for advertising campaigns in order to generate revenue. Cardlytics platform billings is recognized gross of both Consumer Incentives and Partner Share. Cardlytics platform GAAP revenue is recognized net of Consumer Incentives and gross of Partner Share. Bridg platform billings is the same as Bridg platform GAAP revenue. We define adjusted contribution as a measure by which revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our partners. Adjusted contribution demonstrates how incremental marketing spend on our platforms generates incremental amounts to support our sales and marketing, research and development, delivery costs, general and administration and other investments. Adjusted contribution is calculated by taking our total revenue less our Partner Share and other third-party costs. Adjusted contribution does not take into account all costs associated with generating revenue from advertising campaigns, including sales and marketing expenses, research and development expenses, delivery costs, general and administrative expenses and other expenses, which we do not take into consideration when making decisions on how to manage our advertising campaigns. We define adjusted EBITDA as our net loss before income taxes; interest expense, net; depreciation and amortization expense; stock-based compensation expense; foreign currency gain (loss); acquisition and integration (benefit) cost; loss (gain) in fair value of contingent consideration; goodwill impairment and restructuring and reduction of force. We define non-GAAP net loss as our net loss before stock-based compensation expense; foreign currency (gain) loss; acquisition and integration (benefit) cost; amortization of acquired intangibles; and loss (gain) in fair value of contingent consideration. Notably, any impacts related to minimum Partner Share commitments in connection with agreements with certain partners are not added back to net income in order to calculate adjusted EBITDA, adjusted contribution and non-GAAP net loss. We define non-GAAP net loss per share as non-GAAP net loss divided by weighted-average common shares outstanding, diluted.

We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance.

We define MAUs as targetable customers or accounts that have logged in and visited online or mobile applications containing offers, opened an email containing an offer, or redeemed an offer from the Cardlytics platform during a monthly period. We then calculate a monthly average of these MAUs for the periods presented. We define ARPU as the total revenue generated in the applicable period calculated in accordance with GAAP, divided by the average number of MAUs in the applicable period.

CARDLYTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands, except par value amounts)

	June 30, 2023			December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	92,069		$	121,905
Restricted cash		76			80
Accounts receivable and contract assets, net		97,279			115,609
Other receivables		4,466			4,470
Prepaid expenses and other assets		7,824			7,978
Total current assets		201,714			250,042
Long-term assets:
Property and equipment, net		3,401			5,916
Right-of-use assets under operating leases, net		4,510			6,571
Intangible assets, net		46,563			53,475
Goodwill		352,721			352,721
Capitalized software development costs, net		21,922			19,925
Other long-term assets, net		2,493			2,586
Total assets	$	633,324		$	691,236
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	1,698		$	3,765
Accrued liabilities:
Accrued compensation		8,609			10,486
Accrued expenses		10,466			21,335
Short-term debt		30,000			—
Partner Share liability		49,055			48,593
Consumer Incentive liability		43,090			53,983
Deferred revenue		3,015			1,751
Current operating lease liabilities		3,002			4,910
Current contingent consideration		18,987			104,121
Total current liabilities		167,922			248,944
Long-term liabilities:
Convertible senior notes, net		226,774			226,047
Deferred liabilities		84			334
Long-term operating lease liabilities		2,432			4,306
Total liabilities		397,212			479,631
Stockholders’ equity:
Common stock, $0.0001 par value—100,000 shares authorized and 37,088 and 33,477 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively.		9			9
Additional paid-in capital		1,219,530			1,182,568
Accumulated other comprehensive income		3,043			5,598
Accumulated deficit		(986,470	)		(976,570	)
Total stockholders’ equity		236,112			211,605
Total liabilities and stockholders’ equity	$	633,324		$	691,236

CARDLYTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands, except per share amounts)
	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Revenue	$	76,701		$	75,405		$	141,032		$	143,333
Costs and expenses:
Partner Share and other third-party costs		39,170			40,280			72,554			75,433
Delivery costs		7,015			8,162			13,439			14,695
Sales and marketing expense		15,205			21,983			29,153			39,631
Research and development expense		14,847			13,581			26,411			25,872
General and administration expense		16,276			20,984			29,346			41,409
Acquisition and integration cost (benefit)		(9,947	)		2,197			(8,224	)		(2,401	)
Loss (gain) in fair value of contingent consideration		11,258			(2,968	)		(23,326	)		(68,018	)
Goodwill impairment		—			83,149			—			83,149
Depreciation and amortization expense		7,200			10,356			13,775			20,227
Total costs and expenses		101,024			197,724			153,128			229,997
Operating loss		(24,323	)		(122,319	)		(12,096	)		(86,664	)
Other expense (income):
Interest expense, net		(574	)		(879	)		(582	)		(1,826	)
Foreign currency gain (loss)		1,389			(4,538	)		2,778			(6,208	)
Total other expense (income)		815			(5,417	)		2,196			(8,034	)
Loss before income taxes		(23,508	)		(127,736	)		(9,900	)		(94,698	)
Income tax benefit		—			1,446			—			1,446
Net loss		(23,508	)		(126,290	)		(9,900	)		(93,252	)
Net loss attributable to common stockholders	$	(23,508	)	$	(126,290	)	$	(9,900	)	$	(93,252	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.67	)	$	(3.75	)	$	(0.29	)	$	(2.77	)
Weighted-average common shares outstanding, basic and diluted		34,880			33,635			34,241			33,688

CARDLYTICS, INC.
STOCK-BASED COMPENSATION EXPENSE (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Delivery costs	$	565	$	914	$	1,133	$	1,496
Sales and marketing		3,751		3,633		6,804		7,337
Research and development		4,502		4,247		8,587		7,451
General and administration		2,921		4,048		3,183		10,143
Total stock-based compensation	$	11,739	$	12,842	$	19,707	$	26,427

CARDLYTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)

	Six Months Ended June 30,
		2023			2022
Operating activities
Net income	$	(9,900	)	$	(93,252	)
Adjustments to reconcile net income to net cash used in operating activities:
Credit loss expense		744			1,041
Depreciation and amortization		13,775			20,227
Amortization of financing costs charged to interest expense		819			790
Amortization of right-of-use assets		2,205			2,939
Stock-based compensation expense		19,707			26,427
Goodwill impairment		—			83,149
Gain in fair value of contingent consideration		(23,326	)		(68,018	)
Other non-cash (income) expense, net		(3,147	)		6,087
Income tax benefit		—			(1,446	)
Change in operating assets and liabilities:
Accounts receivable		18,069			19,663
Prepaid expenses and other assets		430			(1,885	)
Accounts payable		(2,046	)		(1,821	)
Other accrued expenses		(10,954	)		(5,770	)
Partner Share liability		269			(4,821	)
Consumer Incentive liability		(10,958	)		(9,679	)
Net cash used in operating activities		(4,313	)		(26,369	)
Investing activities
Acquisition of property and equipment		(342	)		(889	)
Acquisition of patents		—			(57	)
Capitalized software development costs		(5,207	)		(6,083	)
Business acquisitions, net of cash acquired		—			(2,274	)
Net cash used in investing activities		(5,549	)		(9,303	)
Financing activities
Proceeds from issuance of debt		30,000			—
Settlement of contingent consideration		(50,050	)		—
Principal payments of debt		(11	)		(21	)
Proceeds from issuance of common stock		11			393
Repurchase of common stock		—			(40,000	)
Deferred debt costs		(45	)		—
Deferred equity issuance costs		—			(174	)
Net cash provided by (used in) financing activities		(20,095	)		(39,802	)
Effect of exchange rates on cash, cash equivalents and restricted cash		117			(969	)
Net decrease in cash, cash equivalents and restricted cash		(29,840	)		(76,443	)
Cash, cash equivalents, and restricted cash — Beginning of period		121,985			233,562
Cash, cash equivalents, and restricted cash — End of period	$	92,145		$	157,119

CARDLYTICS, IN
SUMMARY OF GAAP AND NON-GAAP RESULTS (UNAUDITED)
(Dollars in thousands)

	Three Months Ended June 30,						Change					Six Months Ended June 30,						Change
		2023			2022		$			%			2023			2022		$			%
Billings⁽¹⁾	$	109,424		$	107,744		$	1,680		2	%	$	205,050		$	205,969		$	(919	)	—	%
Consumer Incentives		32,723			32,339			384		1			64,018			62,636			1,382		2
Revenue		76,701			75,405			1,296		2			141,032			143,333			(2,301	)	(2	)
Partner Share and other third-party costs⁽¹⁾		39,170			40,280			(1,110	)	(3	)		72,554			75,433			(2,879	)	(4	)
Adjusted contribution⁽¹⁾		37,531			35,125			2,406		7			68,478			67,900			578		1
Delivery costs		7,015			8,162			(1,147	)	(14	)		13,439			14,695			(1,256	)	(9	)
Gross profit	$	30,516		$	26,963		$	3,553		13	%	$	55,039		$	53,205		$	1,834		3	%
Net loss	$	(23,508	)	$	(126,290	)	$	102,782		81	%	$	(9,900	)	$	(93,252	)	$	83,352		(89	)%
Adjusted EBITDA⁽¹⁾	$	(4,073	)	$	(15,785	)	$	11,712		74	%	$	(10,164	)	$	(26,322	)	$	16,158		(61	)%

(1) Billings, adjusted contribution and adjusted EBITDA are non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are presented below under the headings "Reconciliation of GAAP Revenue to Billings," "Reconciliation of GAAP Gross Profit to Adjusted Contribution" and "Reconciliation of GAAP Net Loss to Adjusted EBITDA."

CARDLYTICS, INC.
RECONCILIATION OF GAAP REVENUE TO BILLINGS (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
	Cardlytics Platform		Bridg Platform		Consolidated		Cardlytics Platform		Bridg Platform		Consolidated
Revenue	$	70,726	$	5,975	$	76,701	$	69,270	$	6,135	$	75,405
Plus:
Consumer Incentives		32,723		—		32,723		32,339		—		32,339
Billings	$	103,449	$	5,975	$	109,424	$	101,609	$	6,135	$	107,744

	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
	Cardlytics Platform		Bridg Platform		Consolidated		Cardlytics Platform		Bridg Platform		Consolidated
Revenue	$	129,756	$	11,276	$	141,032	$	133,253	$	10,080	$	143,333
Plus:
Consumer Incentives		64,018		—		64,018		62,636		—		62,636
Billings	$	193,774	$	11,276	$	205,050	$	195,889	$	10,080	$	205,969

CARDLYTICS, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED CONTRIBUTION (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
	Cardlytics Platform		Bridg Platform		Consolidated		Cardlytics Platform		Bridg Platform		Consolidated
Revenue	$	70,726	$	5,975	$	76,701	$	69,270	$	6,135	$	75,405
Minus:
Partner Share and other third-party costs		39,086		84		39,170		39,403		877		40,280
Delivery costs⁽¹⁾		5,217		1,798		7,015		6,311		1,851		8,162
Gross profit		26,423		4,093		30,516		23,556		3,407		26,963
Plus:
Delivery costs⁽¹⁾		5,217		1,798		7,015		6,311		1,851		8,162
Adjusted contribution	$	31,640	$	5,891	$	37,531	$	29,867	$	5,258	$	35,125

(1) Stock-based compensation expense recognized in consolidated delivery costs totaled $0.6 million and $0.9 million for the three months ended June 30, 2023 and 2022, respectively.

	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
	Cardlytics Platform		Bridg Platform		Consolidated		Cardlytics Platform		Bridg Platform		Consolidated
Revenue	$	129,756	$	11,276	$	141,032	$	133,253	$	10,080	$	143,333
Minus:
Partner Share and other third-party costs		72,261		293		72,554		74,431		1,002		75,433
Delivery costs⁽¹⁾		9,910		3,529		13,439		11,218		3,477		14,695
Gross profit		47,585		7,454		55,039		47,604		5,601		53,205
Plus:
Delivery costs⁽¹⁾		9,910		3,529		13,439		11,218		3,477		14,695
Adjusted contribution	$	57,495	$	10,983	$	68,478	$	58,822	$	9,078	$	67,900

(1) Stock-based compensation expense recognized in consolidated delivery costs totaled $1.5 million and $1.1 million for the six months ended June 30, 2022 and 2023, respectively.

CARDLYTICS, INC.
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Net loss	$	(23,508	)	$	(126,290	)	$	(9,900	)	$	(93,252	)
Plus:
Income tax benefit		—			(1,446	)		—			(1,446	)
Interest expense, net		574			879			582			1,826
Depreciation and amortization		7,200			10,356			13,775			20,227
Stock-based compensation expense		11,739			12,842			19,707			26,427
Foreign currency (gain) loss		(1,389	)		4,538			(2,778	)		6,208
Acquisition and integration cost (benefit) cost		(9,947	)		2,197			(8,224	)		(2,401	)
Loss (gain) in fair value of contingent consideration		11,258			(2,968	)		(23,326	)		(68,018	)
Goodwill impairment		—			83,149			—			83,149
Restructuring and reduction of force		—			958			—			958
Adjusted EBITDA	$	(4,073	)	$	(15,785	)	$	(10,164	)	$	(26,322	)

CARDLYTICS, INC.
RECONCILIATION OF ADJUSTED CONTRIBUTION TO ADJUSTED EBITDA (UNAUDITED)
(Amounts in thousands)

	Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
	Cardlytics Platform			Bridg Platform			Consolidated			Cardlytics Platform			Bridg Platform			Consolidated
Adjusted Contribution	$	31,640		$	5,891		$	37,531		$	29,867		$	5,258		$	35,125
Minus:
Delivery costs		5,217			1,798			7,015			6,311			1,851			8,162
Sales and marketing expense		12,834			2,371			15,205			20,908			1,075			21,983
Research and development expense		13,399			1,448			14,847			11,936			1,645			13,581
General and administration expense		15,117			1,159			16,276			21,232			(248	)		20,984
Stock-based compensation expense		(10,605	)		(1,134	)		(11,739	)		(13,944	)		1,102			(12,842	)
Restructuring and reduction of force		—			—			—			(958	)		—			(958	)
Adjusted EBITDA	$	(4,322	)	$	249		$	(4,073	)	$	(15,618	)	$	(167	)	$	(15,785	)

	Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
	Cardlytics Platform			Bridg Platform			Consolidated			Cardlytics Platform			Bridg Platform			Consolidated
Adjusted Contribution	$	57,495		$	10,983		$	68,478		$	58,822		$	9,078		$	67,900
Minus:
Delivery costs		9,910			3,529			13,439			11,218			3,477			14,695
Sales and marketing expense		24,382			4,771			29,153			36,816			2,815			39,631
Research and development expense		23,726			2,685			26,411			22,895			2,977			25,872
General and administration expense		28,447			899			29,346			40,441			968			41,409
Stock-based compensation expense		(18,708	)		(999	)		(19,707	)		(25,879	)		(548	)		(26,427	)
Restructuring and reduction of force		—			—			—			(958	)		—			(958	)
Adjusted EBITDA	$	(10,262	)	$	98		$	(10,164	)	$	(25,711	)	$	(611	)	$	(26,322	)

CARDLYTICS, INC.
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET LOS
AND NON-GAAP NET LOSS PER SHARE (UNAUDITED)
(Amounts in thousands, except per share amounts)
	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Net loss	$	(23,508	)	$	(126,290	)	$	(9,900	)	$	(93,252	)
Plus:
Stock-based compensation expense		11,739			12,842			19,707			26,427
Foreign currency (gain) loss		(1,389	)		4,538			(2,778	)		6,208
Acquisition and integration (benefit) cost		(9,947	)		2,197			8,224			(2,401	)
Amortization of acquired intangibles		3,441			7,207			6,898			14,353
Loss (gain) in fair value of contingent consideration		11,258			(2,968	)		(23,326	)		(68,018	)
Goodwill impairment		—			83,149			—			83,149
Restructuring and reduction of force		—			(958	)		—			(958	)
Income tax benefit		—			(1,446	)		—			(1,446	)
Non-GAAP net loss	$	(8,406	)	$	(21,729	)	$	(1,175	)	$	(35,938	)
Weighted-average number of shares of common stock used in computing non-GAAP net loss per share:
Non-GAAP weighted-average common shares outstanding, diluted		34,880			33,635			34,241			33,688
Non-GAAP net loss per share attributable to common stockholders, diluted	$	(0.24	)	$	(0.65	)	$	(0.03	)	$	(1.07	)

CARDLYTICS, INC.
RECONCILIATION OF FORECASTED GAAP REVENUE TO BILLINGS (UNAUDITED)
(Amounts in thousands)

	Q3 2023
Revenue	$75.0 - $84.0
Plus:
Consumer Incentives	$36.0 - $39.0
Billings	$111.0 - $123.0

Contacts:

Public Relations:
Robert Robinson
[email protected]

Investor Relations:
Robert Robinson
[email protected]