The chart below shows how CDLX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CDLX sees a +7.04% change in stock price 10 days leading up to the earnings, and a -11.54% change 10 days following the report. On the earnings day itself, the stock moves by -2.15%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Q4 Performance: We exceeded the high end of our guidance across all metrics in Q4, driven by higher-than-expected pipeline wins and improved delivery of our platform.
UK Business Growth Highlights: The UK business showed strong double-digit growth, particularly in the everyday spend category, which is a strength of our business.
New Neobank Partnership: We signed a new Neobank partner in Q4, one of the fastest growing fintechs in the U.S., and expect to scale quickly with them by the end of Q1.
Brand Engagement Surge: We saw a 50% increase in brands using our insights portal, indicating strong interest and engagement from advertisers.
Advertiser Growth Success: In Q4, we achieved the highest number of total advertisers since 2022, indicating successful diversification of our content.
Revenue-to-Billings Margin Improvement: We improved our revenue-to-billings margins by 3.7 points from the previous quarter, reflecting better rewards management.
Improved Contribution Margin: Our adjusted contribution margin was 55%, up 2.5 points due to a more favorable partner mix, showcasing improved profitability.
Positive Operating Cash Flow: Operating cash flow was positive at $3 million, indicating better cash management and operational efficiency.
Strong Liquidity Position: We ended Q4 with over $100 million of liquidity, providing a strong financial position to support operations and growth initiatives.
Negative
Earnings Miss Report: Cardlytics, Inc. misses on earnings expectations with reported EPS of $-0.30566, falling short of the expected $-0.24.
Decline in Total Billings: In Q4, total billings decreased by 11.2% year-over-year, indicating a decline in overall business performance.
U.S. Revenue Decline: U.S. revenue decreased by 19.9% due to lower billings and higher redemptions, reflecting challenges in the U.S. market.
Revenue Decline Analysis: Bridg revenue declined by 12.7% compared to the prior year, attributed to the loss of key accounts in early 2024.
EBITDA Decline in Profitability: Adjusted EBITDA declined from $10.3 million to $6.4 million, showing a decrease in profitability.
Decline in Consumer Incentives: Consumer incentives decreased by 1.2% to $42.3 million, which may indicate challenges in maintaining consumer engagement.
Decline in ARPU: ARPU (Average Revenue Per User) was down 16.7% to $0.44, reflecting increased consumer incentives and potentially lower monetization.
Negative Billings Growth Outlook: For Q1, billings guidance indicates a negative growth rate of 10% to 13%, suggesting continued struggles in the upcoming quarter.
Challenging Q1 Performance: The company expects Q1 to represent the trough of their performance, indicating a challenging start to 2025.
Cardlytics, Inc. (NASDAQ:CDLX) Q4 2024 Earnings Call Transcript
CDLX.O
-2.43%