Cardlytics Q4 2024: Navigating Contradictions in Delivery, Advertiser Demand, and Financial Strategy

These are the key contradictions discussed in Cardlytics' latest 2024Q4 earnings call, specifically including: Delivery Performance and Operational Efficiency, Advertiser Demand and Partnership Impact, Consumer Incentives and Revenue-to-Billings Margins, and Market Strategy and Financial Outlook:



Financial Performance and Challenges:
- Cardlytics reported billings of $116.3 million in Q4, a 11.2% decrease year-over-year.
- The decline in billings was attributed to executional challenges, increased competition, and growth constraints with Bridg, as well as a reduction in a few key accounts.

Advertiser Engagement and Pricing Models:
- The number of total advertisers reached the highest since 2022, with 90% of new advertisers on engagement-based pricing in Q4.
- This shift to engagement-based pricing, which now accounts for 61% of U.S. advertisers, is aimed at improving predictability and efficiency in campaign performance.

Network and Supply Expansion:
- Cardlytics secured a new large FI partner and a Neobank partner in Q4, increasing supply to reach all eligible card members.
- These new partnerships aim to scale content delivery and attract a more diverse set of consumers, enhancing the network's value proposition.

Regional Growth and Demand Trends:
- The UK business saw 27.2% revenue growth in Q4, with strong double-digit growth driven by increased module supply and consumer engagement.
- This growth was supported by successful pilots with new advertisers in the everyday spend retail and travel industries.

Liquidity and Financial Position:
- Cardlytics ended Q4 with over $100 million of liquidity, providing comfort to fund operations and pay off current debt obligations.
- The company remains focused on improving adjusted EBITDA sequentially through 2025, supported by stabilized platform performance and increased demand.