Loading...
01/11 11:29
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals several negative indicators: a 9.2% revenue decline, decreased revenue to billings margin, and ongoing pressures on advertiser performance. Despite some positive elements like increased U.K. revenue and positive adjusted EBITDA, the Q&A highlights significant concerns about FI partner restrictions affecting billings and unclear management responses. The guidance for Q2 2025 further indicates a potential decline. These factors suggest a negative sentiment, likely resulting in a stock price decrease between -2% to -8% over the next two weeks.
Total Billings $104 million, a 5.7% decrease year-over-year. Reasons for the decrease include weakness in the travel category and content restrictions from the largest FI partner. However, there was growth in grocery and gas categories (41%) and retail category (largest retail advertiser grew by $2.8 million in billings year-over-year).
Consumer Incentives $40.8 million, flat year-over-year. No specific reasons for the flat performance were mentioned.
Revenue $63.2 million, a 9.2% decrease year-over-year. The decrease was driven by a decline in billings and pressures on advertiser performance.
Revenue to Billings Margin Decreased by 2.3 points year-over-year due to pressures on advertiser performance.
U.S. Revenue (excluding Bridg) Decreased 13% year-over-year due to lower billings and pricing pressure.
U.K. Revenue Increased 29% year-over-year, driven by higher billings and increased supply. Growth was seen with all top 5 clients and a new advertiser whose billings were in the top 5.
Bridg Revenue Decreased 8% year-over-year due to the loss of a major account in previous quarters.
Adjusted Contribution $36.1 million, down 0.6% year-over-year. However, the margin as a percentage of revenue increased to 57.1%, up 5 points, driven by a more favorable partner mix.
Adjusted EBITDA Positive $2.7 million, an increase of $5 million year-over-year. This was due to reduced operating expenses, including staff reductions and lower incentive compensation.
Operating Cash Flow Positive $1.2 million, no year-over-year comparison provided.
Free Cash Flow Negative $3.4 million, $3 million less than the prior year due to interest on convertible notes and severance payments, partially offset by improved working capital.
Cash and Cash Equivalents $46.7 million at the end of Q2. Additionally, $50 million was drawn on the line of credit, leaving $10 million of unused available borrowings.
Monthly Qualified Users (MQUs) 224.5 million, an increase of 19% year-over-year, driven by the full ramp of newest FI partners. Excluding these partners, MQUs would have been up 1%.
ACPU (Average Contribution Per User) $0.14, down 15% year-over-year as the MQU base of the newest large FI partner has not yet been fully monetized. However, ACPU expanded 10% compared to the prior quarter.
Cardlytics Rewards platform: Launched to diversify publisher base beyond financial institutions (FIs). Currently collecting data from pilot and optimizing for consumer experience.
Rippl: Revenue more than doubled quarter-over-quarter. Welcomed Hy-Vee's RedMedia as a new partner, expanding scale to over 140 million unique shopper profiles.
CPG Offers Pilot: Initial results showed a 30% increase in baskets containing specific products, 2% increase in basket size, and 13% increase in other transactions.
U.K. Market: Strong growth with the highest billings quarter in history. Signed over 20 new logos, half of which are top 150 brands in the U.K.
U.S. Market: Signed new top-tier brands including a leading rideshare player, top retailers, and national restaurant chains. Advertiser churn mostly in mid- to small-sized brands.
Engagement-based Pricing: Now implemented for 79% of advertisers, with 96% of new business adopting it in Q2. Helps compress sales cycles and align with brand measurement models.
Operational Efficiency: Reduced adjusted operating expenses by $5.2 million year-over-year. Operating expenses sustained at or below $33 million per quarter for the remainder of the year.
Diversification Strategy: Focused on diversifying supply and demand across banks, non-banks, and verticals. Mitigating impact of content restrictions from largest FI partner.
Sales Reorganization: Reorganized sales under a new Chief Business Officer to accelerate go-to-market efforts and reinforce relationships with top advertisers.
Content Restrictions by Largest FI Partner: The largest financial institution (FI) partner has imposed significant content restrictions starting July 1, which were not anticipated at this scale. This will likely result in reduced content and value for users, posing substantial limitations for the business. Advertisers have expressed concerns about the negative impact on their programs.
Advertiser Churn: Advertiser churn has been concentrated in mid- to small-sized brands, which are more susceptible to budget reductions. This could impact overall revenue and growth.
Weakness in Travel and Restaurant Categories: The travel and restaurant categories have experienced softness in the first half of the year, consistent with industry trends, which could affect revenue from these sectors.
Loss of Major Account in Bridg Segment: The Bridg segment experienced an 8% revenue decrease due to the loss of a major account in previous quarters, impacting its financial performance.
Economic Pressures on Advertiser Performance: Advertisers are facing increased performance expectations and budget constraints, leading to pricing pressures and reduced billings.
Dependency on Largest FI Partner: The business is heavily impacted by the decisions of its largest FI partner, highlighting a dependency risk. The imposed restrictions underscore the need for diversification.
Supply and Demand Imbalance: The company is facing challenges in balancing supply and demand, particularly with the restrictions from the largest FI partner and the need to diversify both supply and demand sources.
Operational Cost Management: The company has had to reduce staff and slow investments to manage operational costs, which could impact its ability to innovate and grow.
Revenue Expectations: For Q3 2025, the company expects billings between $87 million and $95 million, and revenue between $52.2 million and $58.2 million. This represents a year-over-year decrease in billings of 15% to 22%.
Adjusted EBITDA: The company expects adjusted EBITDA for Q3 2025 to range between negative $2.3 million and positive $2.7 million.
U.K. Market Growth: The U.K. market is expected to continue strong positive growth in Q3 2025, driven by a healthy pipeline of quality advertisers and continued supply growth.
Revenue to Billings Margin: Revenue as a percentage of billings is expected to be in the low 60% range for Q3 2025 and for the full year.
Adjusted Contribution Margin: Adjusted contribution as a percentage of revenue is expected to be in the mid- to high 50% range, reflecting improved economics with new and ramping bank partners.
Operational Expenses: Operating expenses are expected to be sustained at or below $33 million per quarter for the remainder of 2025, excluding stock-based compensation.
New Financial Institution Partner: The company expects continued momentum with its newest large financial institution partner, with engagement rates similar to its most established partners and potential for further scaling.
Cardlytics Rewards Platform and CPG Offers: No material financial impact is expected in 2025 from the Cardlytics Rewards platform or CPG offers.
The selected topic was not discussed during the call.
The earnings call reveals significant challenges: a loss of a major FI partner, a 20.3% decline in billings, and a 22.4% drop in revenue. Despite some positive aspects, like improved adjusted EBITDA and U.K. growth, the dependence on new partnerships and economic uncertainties pose risks. The Q&A didn't alleviate concerns, as explanations confirmed ongoing margin pressures and uncertainties in guidance. These factors, along with the lack of a market cap, suggest a negative sentiment, anticipating a stock price decline of -2% to -8%.
The earnings call reveals several negative indicators: a 9.2% revenue decline, decreased revenue to billings margin, and ongoing pressures on advertiser performance. Despite some positive elements like increased U.K. revenue and positive adjusted EBITDA, the Q&A highlights significant concerns about FI partner restrictions affecting billings and unclear management responses. The guidance for Q2 2025 further indicates a potential decline. These factors suggest a negative sentiment, likely resulting in a stock price decrease between -2% to -8% over the next two weeks.
The earnings call revealed several negative aspects: declining financial performance, cautious advertiser spending due to macroeconomic uncertainty, and a workforce reduction. Despite some positive elements like increased MQUs and engagement-based pricing, the overall sentiment is negative due to liquidity concerns, negative EBITDA, and a lack of clear guidance on future opportunities. The Q&A section highlighted management's reluctance to provide specifics, further contributing to uncertainty. These factors suggest a negative stock price movement in the short term.
The earnings call reveals several concerning factors: a missed EPS expectation, declining revenue, and a negative growth outlook for Q1. Despite some positive developments like new partnerships and improved delivery, the lack of a share buyback or dividend program, coupled with weak guidance and cautious financial health, suggests a negative sentiment. The Q&A section highlighted management's vague responses, particularly regarding Dosh's contributions and micro-targeting opportunities, further dampening confidence.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
