Cardlytics, Inc. (NASDAQ:CDLX) Q3 2018 Earnings Conference Call - Final Transcript
Nov 13, 2018 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to the third quarter 2018 Cardlytics Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to turn the conference over to Kirk Somers, Chief Legal and Privacy Officer. You may begin.
Good afternoon, and welcome to Cardlytics third quarter financial results call. (Forward-Looking Cautionary Statements). Also during this call, we will 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 Investor Relations 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 you for your questions.
With that, let me turn the call over to Scott Grimes, Cardlytics' CEO and Co-Founder. Scott?
Thanks, Kirk. And thank you to everyone for joining us on our third quarter earnings conference call. On today's call, we'll discuss our third quarter 2018 results, provide you with an update on an upcoming bank launch, and discuss our plans for the remainder of 2018.
Total revenue for the third quarter was $34.6 million. Our core Cardlytics direct revenue grew 14% year-over-year to $34.4 million, primarily reflecting continued growth with new and existing marketers and early entry into new verticals. David will discuss additional details around our revenue and adjusted EBITDA, along with other financial and operating metrics later in his prepared remarks.
While we've beaten the bottom line, we were disappointed that revenue did not meet the guidance we provided there in the Q2 earnings call. This was primarily due to a couple of advertisers unexpectedly not participating in the platform here in September, creating a gap that we weren't able to fill quickly.
On a much more positive note, we are excited to announce that we will be rolling out Cardlytics Direct with Chase in the coming weeks. Once it's fully launched, Chase will extend offers to their credit and debit card customers nationwide via mobile and online banking along with e-mail. While we don't speak to metrics for individual banks, a launch with Chase will significantly increase our MAU base starting in Q4 2018, and continuing into Q1 and Q2 of 2019.
Launching this important national bank will further strengthen our ability to deliver impactful and profitable growth for marketers. Lynne and I are proud of our team's hard work and flawless execution in preparing for the Chase launch. But nobody is taking a breather as we continue our efforts to consolidate the U.S. banking market for purchase intelligence.