ATLANTA, Nov. 08, 2023 (GLOBE NEWSWIRE) -- Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the third quarter ended September 30, 2023. Supplemental information is available on the Investor Relations section of Cardlytics' website at http://ir.cardlytics.com/.

"We are gathering speed with each passing quarter - our platform is starting to look different and the collective improvements we are making to our product and operations are far exceeding our pace from prior years," said Karim Temsamani, Chief Executive Officer. "Our dedication to product leadership, financial health, and strategic growth is setting us on a promising course, and I am looking forward to the future."

"Cardlytics is positioned to be the leader in providing trusted and intelligent business insights, and there are few other platforms that have the level of data and reach that we do," said Alexis DeSieno, Chief Financial Officer. "We are on a path to sustain positive operating cash flow and adjusted EBITDA on an annual basis, while continuing to focus on profitability and improving our balance sheet and capital structure."

Third Quarter 2023 Financial Results

• Revenue was $79.0 million, an increase of 9% year-over-year, compared to $72.7 million in the third quarter of 2022.
• Billings, a non-GAAP metric, was $116.4 million, an increase of 5% year-over-year, compared to $110.4 million in the third quarter of 2022.
• Gross profit was $35.8 million, an increase of 38% year-over-year, compared to $26.0 million in the third quarter of 2022.
• Adjusted contribution, a non-GAAP metric, was $42.9 million, an increase of 22% year-over-year, compared to $35.1 million in the third quarter of 2022.
• Net loss attributable to common stockholders was $(24.0) million, or $(0.63) per diluted share, based on 38.0 million fully diluted weighted-average common shares, compared to a net income attributable to common stockholders of $6.3 million, or $0.19 per diluted share, based on 33.3 million fully diluted weighted-average common shares in the third quarter of 2022.
• Non-GAAP net loss was $0.3 million, or $0.01 per diluted share, based on 38.0 million fully diluted weighted-average common shares, compared to non-GAAP net loss of $(16.5) million, or $(0.50) per diluted share, based on 33.3 million fully diluted weighted-average common shares in the third quarter of 2022.
• Adjusted EBITDA, a non-GAAP metric, was a gain of $3.9 million compared to a loss of $(12.7) million in the third quarter of 2022.

Key Metrics

• Cardlytics MAUs were 162.5 million, an increase of 4% year-over-year, compared to 156.2 million in the third quarter of 2022.
• Cardlytics ARPU was $0.49 compared to $0.47 in the third quarter of 2022.

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

Fourth Quarter 2023 Financial Expectations

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

	Q4 2023 Guidance
Billings(1)	$122.0 - $133.0
Revenue	$82.0 - $90.0
Adjusted contribution(2)	$44.0 - $50.0
Adjusted EBITDA(2)	$4.0 - $8.0

(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 third quarter 2023 financial results during a teleconference today, November 8, 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 November 16, 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 fourth 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 November 8, 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 cost (benefit); 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 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 believe that MAUs is an indicator of the Cardlytics platform's ability to drive engagement and is reflective of the marketing base that we offer to marketers. As of September 30, 2023, we are reporting only the total number of unique targetable customers within each FI, which we have applied to our reporting for current and prior periods in this Form 10-Q. 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)
	September 30, 2023				December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	90,067			$	121,905
Restricted cash		73				80
Accounts receivable and contract assets, net		103,324				115,609
Other receivables		4,865				4,470
Prepaid expenses and other assets		7,260				7,978
Total current assets		205,589				250,042
Long-term assets:
Property and equipment, net		3,005				5,916
Right-of-use assets under operating leases, net		4,823				6,571
Intangible assets, net		43,116				53,475
Goodwill		352,721				352,721
Capitalized software development costs, net		23,721				19,925
Other long-term assets, net		1,941				2,586
Total assets	$	634,916			$	691,236
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	3,479			$	3,765
Accrued liabilities:
Accrued compensation		11,086				10,486
Accrued expenses		9,666				21,335
Short-term debt		30,000				—
Partner Share liability		43,495				48,593
Consumer Incentive liability		48,922				53,983
Deferred revenue		3,323				1,751
Current operating lease liabilities		2,244				4,910
Current contingent consideration		27,268				104,121
Total current liabilities		179,483				248,944
Long-term liabilities:
Convertible senior notes, net		227,139				226,047
Deferred liabilities		81				334
Long-term operating lease liabilities		2,878				4,306
Total liabilities		409,581				479,631
Stockholders’ equity:
Common stock, $0.0001 par value—100,000 shares authorized and 38,528 and 33,477 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively.		9				9
Additional paid-in capital		1,230,458				1,182,568
Accumulated other comprehensive income		5,304				5,598
Accumulated deficit		(1,010,436	)			(976,570	)
Total stockholders’ equity		225,335				211,605
Total liabilities and stockholders’ equity	$	634,916			$	691,236

CARDLYTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in thousands, except per share amounts)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Revenue	$	79,005			$	72,706			$	220,037			$	216,039
Costs and expenses:
Partner Share and other third-party costs		36,144				37,563				108,698				112,996
Delivery costs		7,012				9,125				20,451				23,820
Sales and marketing expense		14,161				18,289				43,314				57,920
Research and development expense		12,430				13,762				38,841				39,634
General and administration expense		15,561				19,972				44,907				61,381
Acquisition and integration cost (benefit)		78				(1,867	)			(8,146	)			(4,269	)
Loss (gain) in fair value of contingent consideration		8,281				(46,126	)			(15,045	)			(114,144	)
Goodwill impairment		—				—				—				83,149
Depreciation and amortization expense		5,990				10,468				19,765				30,695
Total costs and expenses		99,657				61,186				252,785				291,182
Operating (loss) income		(20,652	)			11,520				(32,748	)			(75,143	)
Other expense:
Interest expense, net		(915	)			(580	)			(1,497	)			(2,406	)
Foreign currency (gain) loss		(2,399	)			(4,673	)			379				(10,882	)
Total other expense		(3,314	)			(5,253	)			(1,118	)			(13,288	)
(Loss) income before income taxes		(23,966	)			6,267				(33,866	)			(88,431	)
Income tax benefit		—				—				—				1,446
Net (loss) income		(23,966	)			6,267				(33,866	)			(86,985	)
Net (loss) income attributable to common stockholders	$	(23,966	)		$	6,267			$	(33,866	)		$	(86,985	)
Net (loss) income per share attributable to common stockholders, basic and diluted	$	(0.63	)		$	0.19			$	(0.95	)		$	(2.60	)
Weighted-average common shares outstanding, basic and dilutive		37,982				32,950				35,502				33,455

CARDLYTICS, INC. STOCK-BASED COMPENSATION EXPENSE (UNAUDITED) (Amounts in thousands)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Delivery costs	$	667			$	920			$	1,800			$	2,416
Sales and marketing		2,683				1,428				9,487				8,765
Research and development		3,661				1,968				12,248				9,419
General and administration		3,238				1,451				6,421				11,594
Total stock-based compensation	$	10,249			$	5,767			$	29,956			$	32,194

CARDLYTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands)
	Nine Months Ended September 30,
		2023				2022
Operating activities
Net loss	$	(33,866	)		$	(86,985	)
Adjustments to reconcile net income to net cash used in operating activities:
Credit loss expense		1,153				949
Depreciation and amortization		19,765				30,695
Amortization of financing costs charged to interest expense		1,234				1,192
Amortization of right-of-use assets		2,807				4,230
Stock-based compensation expense		29,956				32,194
Goodwill impairment		—				83,149
Gain in fair value of contingent consideration		(15,044	)			(114,144	)
Other non-cash (income) expense, net		(613	)			10,524
Income tax benefit		—				(1,446	)
Change in operating assets and liabilities:
Accounts receivable		10,991				15,082
Prepaid expenses and other assets		1,114				(456	)
Accounts payable		(265	)			111
Other accrued expenses		(10,282	)			(5,814	)
Partner Share liability		(4,994	)			(5,836	)
Consumer Incentive liability		(5,075	)			(4,248	)
Net cash used in operating activities		(3,119	)			(40,803	)
Investing activities
Acquisition of property and equipment		(393	)			(1,090	)
Acquisition of patents		—				(73	)
Capitalized software development costs		(8,302	)			(9,170	)
Business acquisitions, net of cash acquired		—				(2,274	)
Net cash used in investing activities		(8,695	)			(12,607	)
Financing activities
Proceeds from issuance of debt		30,000				—
Settlement of contingent consideration		(50,050	)			—
Principal payments of debt		(21	)			(24	)
Proceeds from issuance of common stock		55				397
Repurchase of common stock		—				(40,000	)
Deferred debt costs		(58	)			—
Deferred equity issuance costs		—				(181	)
Net cash used in financing activities		(20,074	)			(39,808	)
Effect of exchange rates on cash, cash equivalents and restricted cash		43				(1,756	)
Net decrease in cash, cash equivalents and restricted cash		(31,845	)			(94,974	)
Cash, cash equivalents, and restricted cash — Beginning of period		121,985				233,562
Cash, cash equivalents, and restricted cash — End of period	$	90,140			$	138,588

CARDLYTICS, INC. SUMMARY OF GAAP AND NON-GAAP RESULTS (UNAUDITED) (Dollars in thousands)
	Three Months Ended September 30,								Change								Nine Months Ended September 30,								Change
		2023				2022			$				%					2023				2022			$				%
Billings(1)	$	116,430			$	110,392			$	6,038				5	%		$	321,480			$	316,361			$	5,119				2	%
Consumer Incentives		37,425				37,686				(261	)			(1	)			101,443				100,322				1,121				1
Revenue		79,005				72,706				6,299				9				220,037				216,039				3,998				2
Partner Share and other third-party costs(1)		36,144				37,563				(1,419	)			(4	)			108,698				112,996				(4,298	)			(4	)
Adjusted contribution(1)		42,861				35,143				7,718				22				111,339				103,043				8,296				8
Delivery costs		7,012				9,125				(2,113	)			(23	)			20,451				23,820				(3,369	)			(14	)
Gross profit	$	35,849			$	26,018			$	9,831				38	%		$	90,888			$	79,223			$	11,665				15	%
Net (loss) income	$	(23,966	)		$	6,267			$	(30,233	)			n/a			$	(33,866	)		$	(86,985	)		$	53,119				(61	)%
Adjusted EBITDA(1)	$	3,946			$	(12,708	)		$	16,654				n/a			$	(6,218	)		$	(39,030	)		$	32,812				(84	)%

(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 September 30, 2023												Three Months Ended September 30, 2022
	Cardlytics Platform				Bridg Platform				Consolidated				Cardlytics Platform				Bridg Platform				Consolidated
Revenue	$	73,064			$	5,941			$	79,005			$	67,285			$	5,421			$	72,706
Plus:
Consumer Incentives		37,425				—				37,425				37,686				—				37,686
Billings	$	110,489			$	5,941			$	116,430			$	104,971			$	5,421			$	110,392

	Nine Months Ended September 30, 2023												Nine Months Ended September 30, 2022
	Cardlytics Platform				Bridg Platform				Consolidated				Cardlytics Platform				Bridg Platform				Consolidated
Revenue	$	202,820			$	17,217			$	220,037			$	200,538			$	15,501			$	216,039
Plus:
Consumer Incentives		101,443				—				101,443				100,319				—				100,319
Billings	$	304,263			$	17,217			$	321,480			$	300,857			$	15,501			$	316,358

CARDLYTICS, INC. RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED CONTRIBUTION (UNAUDITED) (Amounts in thousands)
	Three Months Ended September 30, 2023												Three Months Ended September 30, 2022
	Cardlytics Platform				Bridg Platform				Consolidated				Cardlytics Platform				Bridg Platform				Consolidated
Revenue	$	73,064			$	5,941			$	79,005			$	67,285			$	5,421			$	72,706
Minus:
Partner Share and other third-party costs		36,011				133				36,144				37,399				164				37,563
Delivery costs(1)		5,510				1,502				7,012				7,623				1,502				9,125
Gross profit		31,543				4,306				35,849				22,263				3,755				26,018
Plus:
Delivery costs(1)		5,510				1,502				7,012				7,623				1,502				9,125
Adjusted contribution	$	37,053			$	5,808			$	42,861			$	29,886			$	5,257			$	35,143

(1) Stock-based compensation expense recognized in consolidated delivery costs totaled $0.7 million and $0.9 million for the three months ended September 30, 2023 and 2022, respectively.

	Nine Months Ended September 30, 2023												Nine Months Ended September 30, 2022
	Cardlytics Platform				Bridg Platform				Consolidated				Cardlytics Platform				Bridg Platform				Consolidated
Revenue	$	202,820			$	17,217			$	220,037			$	200,538			$	15,501			$	216,039
Minus:
Partner Share and other third-party costs		108,272				426				108,698				111,829				1,167				112,996
Delivery costs(1)		15,420				5,031				20,451				18,841				4,979				23,820
Gross profit		79,128				11,760				90,888				69,868				9,355				79,223
Plus:
Delivery costs(1)		15,420				5,031				20,451				18,841				4,979				23,820
Adjusted contribution	$	94,548			$	16,791			$	111,339			$	88,709			$	14,334			$	103,043

(1) Stock-based compensation expense recognized in consolidated delivery costs totaled $2.4 million and $1.8 million for the nine months ended September 30, 2022 and 2023, respectively.

CARDLYTICS, INC. RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (UNAUDITED) (Amounts in thousands)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Net (loss) income	$	(23,966	)		$	6,267			$	(33,866	)		$	(86,985	)
Plus:
Income tax benefit		—				—				—				(1,446	)
Interest expense, net		915				580				1,497				2,406
Depreciation and amortization		5,990				10,468				19,765				30,695
Stock-based compensation expense		10,249				5,767				29,956				32,194
Foreign currency loss (gain)		2,399				4,673				(379	)			10,882
Acquisition and integration cost (benefit)		78				(1,867	)			(8,146	)			(4,269	)
Loss (gain) in fair value of contingent consideration		8,281				(46,126	)			(15,045	)			(114,144	)
Goodwill impairment		—				—				—				83,149
Restructuring and reduction of force		—				7,530				—				8,488
Adjusted EBITDA	$	3,946			$	(12,708	)		$	(6,218	)		$	(39,030	)

CARDLYTICS, INC. RECONCILIATION OF ADJUSTED CONTRIBUTION TO ADJUSTED EBITDA (UNAUDITED) (Amounts in thousands)
	Three Months Ended September 30, 2023												Three Months Ended September 30, 2022
	Cardlytics Platform				Bridg Platform				Consolidated				Cardlytics Platform				Bridg Platform				Consolidated
Adjusted Contribution	$	37,053			$	5,808			$	42,861			$	29,886			$	5,257			$	35,143
Minus:
Delivery costs		5,510				1,502				7,012				7,623				1,502				9,125
Sales and marketing expense		12,041				2,120				14,161				16,529				1,760				18,289
Research and development expense		11,046				1,384				12,430				11,682				2,080				13,762
General and administration expense		14,874				687				15,561				19,558				414				19,972
Stock-based compensation expense		(9,127	)			(1,122	)			(10,249	)			(5,302	)			(465	)			(5,767	)
Restructuring and reduction of force		—				—				—				(7,530	)			—				(7,530	)
Adjusted EBITDA	$	2,709			$	1,237			$	3,946			$	(12,674	)		$	(34	)		$	(12,708	)

	Nine Months Ended September 30, 2023												Nine Months Ended September 30, 2022
	Cardlytics Platform				Bridg Platform				Consolidated				Cardlytics Platform				Bridg Platform				Consolidated
Adjusted Contribution	$	94,548			$	16,791			$	111,339			$	88,709			$	14,334			$	103,043
Minus:
Delivery costs		15,420				5,031				20,451				18,841				4,979				23,820
Sales and marketing expense		36,422				6,892				43,314				53,345				4,575				57,920
Research and development expense		34,772				4,069				38,841				34,577				5,057				39,634
General and administration expense		43,321				1,586				44,907				59,999				1,382				61,381
Stock-based compensation expense		(27,835	)			(2,121	)			(29,956	)			(31,181	)			(1,013	)			(32,194	)
Restructuring and reduction of force		—				—				—				(8,488	)			—				(8,488	)
Adjusted EBITDA	$	(7,552	)		$	1,334			$	(6,218	)		$	(38,384	)		$	(646	)		$	(39,030	)

CARDLYTICS, INC. RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET (LOSS) INCOME AND NON-GAAP NET INCOME (LOSS) PER SHARE (UNAUDITED) (Amounts in thousands, except per share amounts)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Net (loss) income	$	(23,966	)		$	6,267			$	(33,866	)		$	(86,985	)
Plus:
Stock-based compensation expense		10,249				5,767				29,956				32,194
Foreign currency loss (gain)		2,399				4,673				(379	)			10,882
Acquisition and integration cost (benefit)		(78	)			(1,867	)			8,146				(4,269	)
Amortization of acquired intangibles		3,433				7,207				10,331				21,560
(Gain) loss in fair value of contingent consideration		8,281				(46,126	)			(15,045	)			(114,144	)
Goodwill impairment		—				—				—				83,149
Restructuring and reduction of force		—				7,530				—				8,488
Income tax benefit		—				—				—				(1,446	)
Non-GAAP net income (loss)	$	318			$	(16,549	)		$	(857	)		$	(50,571	)
Weighted-average number of shares of common stock used in computing non-GAAP net income (loss) per share:
Non-GAAP weighted-average common shares outstanding, diluted		37,982				33,269				35,502				33,455
Non-GAAP net income (loss) per share attributable to common stockholders, diluted	$	0.01			$	(0.50	)		$	(0.02	)		$	(1.51	)

CARDLYTICS, INC. RECONCILIATION OF FORECASTED GAAP REVENUE TO BILLINGS (UNAUDITED) (Amounts in thousands)
		Q4 2023
Revenue		$82.0 - $90.0
Plus:
Consumer Incentives		$40.0 - $43.0
Billings		$122.0 - $133.0

Contacts:

Public Relations:
Robert Robinson
pr@cardlytics.com

Investor Relations:
Robert Robinson
ir@cardlytics.com