Cardlytics, Inc. (NASDAQ:CDLX) Q3 2019 Earnings Conference Call - Final Transcript

Nov 12, 2019 • 05:00 pm ET


Cardlytics, Inc. (NASDAQ:CDLX) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Third Quarter 2019 Cardlytics' Inc Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over the Chief Legal and Privacy Officer, Kirk Somers.

Kirk L. Somers

Good evening, and welcome to Cardlytics' third 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 fourth quarter and full year 2019 financial guidance, expectations on adjusted EBITDA for 2019 and 2020, the anticipated impact of our key priorities on driving growth, the timing of the rollout of Wells Fargo and its anticipated impact on our financial institution monthly active users or MAUs and the number of card swipes in the United States, expectations regarding adding additional marketers and marketers spend in 2020. The impact of investments on driving revenue in nascent industry verticals, the evolution of our platform to reach more advertisers and provide a better bank customer experience and our expectations regarding 2021 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 Factors section of the company's 10-Q for the quarter ended September 30th, 2019 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. 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. Please note that the supplemental presentation to our third quarter results has also been posted to our Investor Relations 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, let me turn the call over to Scott Grimes, Cardlytics' CEO and Co-Founder. Scott?

Scott D. Grimes

Thanks, Kirk. Thank you to everyone for joining us in our third quarter 2019 earnings conference call. We're pleased to announce that we delivered strong third quarter results, which exceeded all key metrics from the guidance on our Q2 earnings call. Here are some highlights.

Total billings for the third quarter were $82.8 million, an increase of 70% year-over-year. Total revenue, which is equal to billings net of consumer incentives, was $56.4 million, up 63%. Adjusted contribution was $24.7 million, growing 46% year-over-year and we generated adjusted EBITDA of positive $3 million.

As a result of our strong third quarter