Cardlytics, Inc. (NASDAQ:CDLX) Q2 2018 Earnings Conference Call Transcript
Aug 14, 2018 • 05:00 pm ET
You've joined Cardlytics' Second Quarter Financial Results Conference Call. (Operator Instructions)
I would now like to turn the call over to your host, Mr. Kirk Somers.
Good afternoon, and welcome to Cardlytics' second quarter financial results call.
(Forward-Looking Cautionary Statements)
Also during this call, we'll discuss non-GAAP measures of our performance. GAAP financial reconciliations and supplemental financial information are provided in the press release issued today and the 8-K filed with the SEC. Today's call is available via webcast and a replay will be available for two weeks. You can find all of the information I've just described on the IR section of Cardlytics' website.
Joining us on the call today are Cardlytics leadership team, including CEO and Co-Founder, Scott Grimes; COO and Co-Founder, Lynne Laube; and CFO, David Evans. Following their prepared remarks, we'll open the call to your questions.
With that said, let me send it over to Scott Grimes, Cardlytics' CEO and Co-Founder. Scott?
Thanks Kirk, and thank you to everyone for joining us on our second quarter earnings conference call. We are pleased to report another solid quarter, which outperformed our expectations for both revenue and adjusted EBITDA. In today's call, we'll discuss our second quarter 2018 results, provide you with an update on some new business developments, and discuss our plans for the remainder of 2018. We will also briefly touch on 2019.
Total revenue for the quarter was $35.6 million. Our core Cardlytics Direct revenue grew 21% year-over-year to $35.1 million, primarily reflecting continued growth with new and existing markers and early entry into new verticals. Our adjusted EBITDA for the quarter was a $2.2 million loss compared with a loss of $2.8 million in the prior year period. David will discuss additional details around our revenue, and adjusted EBITDA, along with other financial and operating metrics later in his prepared remarks.
As we discussed in our last few calls, we are increasingly confident in our ability to drive substantial MAU growth by consolidating the US banking market for Purchase Intelligence. Today, I'm pleased to announce that after completing a successful pilot with Wells Fargo, we recently signed an agreement with Wells Fargo for a national launch of Cardlytics Direct across their digital banking channels. Based on the Nielsen Reports, published in February and April 2018, Wells Fargo is the largest debit card issuer in the United States, and their cards produce $446 billion in debit and credit purchases annually.
As we discussed last quarter, we are investing across Cardlytics to support a step function increase in MAUs. We are currently expanding our technology, our infrastructure, and our operations to support 150 million or more MAUs in the United States. We expect to see significant MAU growth in the first half of 2019 and continuing throughout 2020. We drive growth in ARPU, by increasing the number of advertisers and advertising verticals and search and by growing their investments in Cardlytics Direct. For our advertising clients, the addition of two new national banks would give us