Cardlytics, Inc. (NASDAQ:CDLX) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 08:30 am ET

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Cardlytics, Inc. (NASDAQ:CDLX) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Cardlytics Second Quarter 2019 Financial Results Conference Call. [Operator Instructions] Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions]

I would now like to introduce your host for today's conference, Mr. Kirk Somers, Chief Legal Officer.

Executive
Kirk Somers

Good morning, and welcome to the Cardlytics' Second Quarter 2019 Financial Results Call. Before we begin, let me remind everyone that today's discussion will contain forward-looking statements based on our current assumptions, expectations, and beliefs, including third quarter 2019 and full-year financial guidance, expectations on adjusted EBITDA for 2020, the anticipated impact of our four key priorities on driving the monetization of our increased scale of FI monthly average users, or FI MAUs, the timing of the rollout of Wells Fargo and its anticipated impact on our FI MAUs and the number of card swipes we've seen in the U.S., the impact of our investments on driving revenue in nascent industry verticals, and our expectations regarding average revenue per user, or ARPU levels.

For a discussion of the specific risk factors that could cause our actual results to differ materially from today's discussion, please refer to the risk factor section of the Company's 10-Q that we plan to file later today and in subsequent periodic reports that we file with the Securities and Exchange Commission. 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 that will be filed with the SEC. Todays' call is available for webcast, and the 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. Please note that a supplemental data presentation to our second-quarter results has also been posted on our Investor Relations website.

Joining us on the call today, our 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, let me turn the call over to Scott Grimes, Cardlytics' CEO and Co-Founder. Scott?

Executive
Scott Grimes

Thanks, Kirk. And thank you to everyone for joining us on our Second Quarter 2019 Earnings Conference Call. We are pleased to announce that we delivered strong second-quarter results, which exceeded our guidance from our Q1 earnings call. Here are some of the highlights. Total billings for the second quarter were $73.8 million, an increase of 43% year-over-year. Total revenue, which is equal to billings net of consumer incentives was $48.7 million, up 37%. And adjusted contribution was $21.8 million, growing 35% year-over-year. Each of these metrics beat our prior expectations and is consistent with the top-line acceleration that Cardlytics has delivered over the past eight quarters.

Additionally, we had an adjusted EBITDA loss of negative $626,000, also better than guidance. And we continue to grow our reach, increasing quarterly average FI