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Cardlytics Inc (CDLX)
NASDAQ:CDLX
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Cardlytics
(NASDAQ:CDLX)
45Neutral
Positive Factors
Financial performance
CDLX's 1Q results beat Street numbers on the top and bottom line, driven by new pipeline conversions and better execution.
Pricing model adoption
Cardlytics' adoption of engagement-based pricing increased to 61% of advertisers, showing improved visibility and a positive trend.
Negative Factors
Contract negotiations
The need to re-negotiate bank partner contracts is expected to take some time, creating uncertainty.
Financial challenges
A sizable net debt position and expectations for ongoing cash burn raise concerns.
Cardlytics (CDLX) vs. S&P 500 (SPY)
Market Cap
$113.93M
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)―
Beta (1Y)2.50
Revenue Growth-12.77%
EPS Growth19.71%
CountryUS
Employees454
SectorCommunication Services
Sector Strength82
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.26
Shares Outstanding52,502,390
10 Day Avg. Volume1,344,445
30 Day Avg. Volume1,007,136
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)1.41
Price to Sales (P/S)0.00
P/FCF Ratio-3.61
Enterprise Value/Market Cap2.26
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit2.11
Enterprise Value/Ebitda-0.40
Forecast
1Y Price Target
$2.60Price Target Upside23.81% Upside
Rating ConsensusHold
Number of Analyst Covering6
Cardlytics Business Overview & Revenue Model
Company DescriptionCardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyCardlytics makes money by partnering with financial institutions to use their purchase data to create targeted marketing campaigns. These campaigns are funded by advertisers who pay Cardlytics to deliver personalized offers to consumers based on their purchasing behavior. Cardlytics earns revenue by charging advertisers a fee for each transaction that occurs as a result of a consumer redeeming an offer. Additionally, they may have revenue-sharing agreements with their banking partners, where they share a portion of the fees collected from advertisers. Key partnerships with major banks are significant contributors to the company's earnings, as they provide access to a large and diverse consumer base.
Cardlytics Financial Statement Overview
Summary
Cardlytics faces significant financial challenges with declining revenues, high leverage, and negative cash flow trends. The company is struggling with profitability and cash generation, presenting risks in its financial stability.Income Statement
The company's revenue has decreased over the last year, reflecting a negative growth rate of approximately -9.99%. Gross profit margin is not applicable as gross profit equals total revenue. The net profit margin is significantly negative, indicating substantial losses. EBIT and EBITDA margins are also negative, showing operational challenges.40
Negative
Balance Sheet
The debt-to-equity ratio stands at 3.17, indicating high leverage and potential risk. The equity ratio is low, at 17.83%, suggesting limited equity buffer. Return on equity is negative due to net losses, reflecting poor profitability.45
Neutral
Cash Flow
Free cash flow has declined, showing a negative growth trend. The operating cash flow to net income ratio is negative, indicating cash flow issues. Free cash flow to net income ratio also reflects negative performance, highlighting cash generation challenges.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 278.30M | 309.20M | 298.54M | 267.12M | 186.89M | Gross Profit |
| 120.89M | 130.38M | 112.63M | 103.34M | 63.27M | EBIT |
| -195.50M | -135.67M | -135.54M | -96.85M | -53.92M | EBITDA |
| -152.53M | -99.00M | -418.98M | -89.91M | -39.51M | Net Income Common Stockholders |
| -189.30M | -134.70M | -465.26M | -128.56M | -58.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 65.59M | 91.83M | 121.91M | 233.47M | 293.24M | Total Assets |
| 392.71M | 574.14M | 691.24M | 1.26B | 422.54M | Total Debt |
| 221.65M | 266.11M | 235.26M | 197.23M | 188.12M | Net Debt |
| 156.06M | 174.28M | 113.36M | -36.24M | -105.12M | Total Liabilities |
| 322.72M | 439.35M | 479.63M | 573.10M | 265.35M | Stockholders Equity |
| 69.99M | 134.80M | 211.60M | 690.70M | 157.19M |
| Cash Flow | Free Cash Flow | |||
| -28.12M | -12.58M | -67.39M | -51.09M | -17.71M | Operating Cash Flow |
| -8.82M | -185.00K | -53.90M | -38.52M | -7.60M | Investing Cash Flow |
| -18.75M | -10.06M | -15.76M | -506.69M | -10.12M | Financing Cash Flow |
| 1.44M | -20.03M | -39.99M | 486.00M | 206.43M |
Cardlytics Technical Analysis
Positive
2.10
Price Trends
1.87
Positive
2.60
Negative
3.38
Negative
Market Momentum
0.07
Negative
62.05
Neutral
70.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDLX, the sentiment is Positive. The current price of 2.1 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.87, and below the 200-day MA of 3.38, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 70.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDLX.
Cardlytics Risk Analysis
Cardlytics disclosed 56 risk factors in its most recent earnings report. Cardlytics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cardlytics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $724.79M | 13.00 | 9.10% | 7.41% | -2.69% | 61.73% | |
60 Neutral | $13.80B | 7.25 | -2.76% | 3.77% | 2.19% | -42.55% | |
52 Neutral | $58.05M | ― | -34.39% | ― | 18.20% | 50.14% | |
52 Neutral | $64.54M | ― | -14.44% | ― | -3.58% | 50.73% | |
50 Neutral | $119.20M | ― | 74.55% | 10.87% | -0.16% | 57.03% | |
45 Neutral | $113.93M | ― | -135.48% | ― | -12.77% | 19.71% | |
43 Neutral | $50.02M | ― | -98.64% | ― | -14.67% | 59.39% |
* Communication Services Sector Average
Performance Comparison
CDLX
Cardlytics
2.10
-7.39
-77.87%
DLX
Deluxe
16.22
-6.12
-27.39%
INUV
Inuvo
0.42
0.10
31.25%
MCHX
Marchex
1.45
0.11
8.21%
FLNT
Fluent
2.41
-1.56
-39.29%
TSQ
Townsquare Media
7.34
-3.28
-30.89%
Cardlytics Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -2.78%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mixed performance for Cardlytics. While there were significant achievements in expanding partnerships and maintaining strong consumer spending, there were also notable challenges such as declines in billings and revenue, particularly in the travel category. The strategic move to expand beyond financial institutions shows potential, but macroeconomic uncertainties and a workforce reduction indicate caution.Q1-2025 Updates
Positive Updates
Strong Consumer Spending Rebound
Despite initial softness in February, consumer spending rebounded in March and grew steadily in April, driven by growth in categories like auto, home improvement, e-commerce, and apparel.
Successful Launch of Cardlytics Rewards Platform
Cardlytics signed its first non-FI partner agreement with a leading digital sports platform for the Cardlytics Rewards Platform, marking a significant expansion beyond financial institutions.
Expansion in the U.K. Market
Revenue in the U.K. grew by 8.6%, driven by higher billings and increased supply, with 15 new brands signing on in categories like travel, entertainment, and restaurants.
High Engagement with Insights Portal
There was a 77% sequential increase in advertisers using the Insights portal in Q1, contributing directly to high-value renewals.
Increased Supply and Engagement
Cardlytics launched with a new large FI partner and a neobank, seeing strong engagement and high redemption rates.
New Chief Business Officer
Rory Mitchell joined as the new Chief Business Officer, bringing over 15 years of experience in Commerce Media.
Negative Updates
Decline in Total Billings and Revenue
Total billings decreased by 7.3% to $97.6 million, and revenue decreased by 8.4% to $61.9 million, driven by lower top line billings and category mix of advertisers.
Reduced Travel Category Revenue
There was a decline in the travel category as budgets shrank from a few key accounts, contributing to overall revenue decrease.
Adjusted EBITDA Loss
Adjusted EBITDA was negative $4.4 million, a decline of $4.6 million compared to the previous year.
15% Workforce Reduction
A 15% reduction in the workforce was implemented, translating to $16 million in annualized savings.
Non-renewal of Bank of America Agreement
Cardlytics will not be renewing its current agreement with Bank of America, though the impact is expected to be non-material.
Company Guidance
During the Cardlytics Inc. Q1 2025 earnings call, the company provided guidance for Q2 2025, projecting billings between $100 million and $108 million, revenue between $61 million and $67 million, adjusted contribution between $32.5 million and $36.5 million, and adjusted EBITDA ranging from negative $4 million to positive $1 million. The call highlighted a 12% increase in monthly qualified users (MQUs) to 214.9 million, largely driven by the introduction of a new large financial institution partner. The company is focusing on diversifying supply, growing Bridg, and optimizing its network while maintaining a disciplined approach to expense management. Despite macroeconomic uncertainties, Cardlytics is leveraging its data capabilities to support advertisers, with particular strength seen in everyday spend categories and specialty retail.Cardlytics Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Cardlytics Faces Bank of America Non-Renewal Notice
Neutral
Apr 28, 2025
Cardlytics, Inc. announced that Bank of America has issued a non-renewal notice for their existing agreements, set to expire on July 31, 2025, with operations continuing until January 27, 2026. Despite the non-renewal, Cardlytics believes the impact on its financial results will be minimal due to potential new arrangements with Bank of America and growth from other financial partners. Additionally, Cardlytics amended its loan facility with Banc of California, extending the maturity date to April 15, 2028, while maintaining $60 million in unused borrowings.
Spark’s Take on CDLX Stock
According to Spark, TipRanks’ AI Analyst, CDLX is a Neutral.
Cardlytics’ overall stock score is low due to significant financial performance issues, including declining revenues and high leverage, compounded by weak technical indicators and poor valuation. Although the earnings call suggested potential for future improvements, current challenges overshadow these prospects, leading to a cautious outlook.
To see Spark’s full report on CDLX stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.