Cardlytics, Inc. (NASDAQ:CDLX) Q3 2019 Earnings Conference Call - Final Transcript
Nov 12, 2019 • 05:00 pm ET
Scott D. Grimes
and year-to-date results, we are raising our full year 2019 guidance, which David will discuss in more detail later in the call. In the third quarter, we continue to grow the reach of our platform, we increased our quarterly average FI MAUs to $128.3 million, a 7% increase from the second quarter and 116% from Q3 2018.
We also remain on target to start to launch of Wells Fargo later this month. Similar to other national bank launches, we expect the bank to rollout across customer portfolios and digital channels in a phased approach. Based on our current view of launch timing, we expect to exit the year with $130 million to $140 million FI MAUs.
As the Wells Fargo launch nears completion in the first half of next year, FI MAUs will surpass $150 million, which we believe will roughly equate to one out of every two card swipes in the US. This represents significant scale. This is on par with the other major advertising platforms in the US.
Lynne and I are proud of our team's hard work and dedication to making the Wells launch possible and for an incredibly strong quarter. We continue to make progress in all of our key priorities in the third quarter, which Lynne will now discuss with you in more detail before handling the call to David to discuss our results and guidance. Lynne?
Lynne Marie Laube
Thanks, Scott. Before discussing the progress we're making on key priorities, I'd like to give you a little bit more detail on the Wells Fargo launch. We are progressing well towards an initial phased launch later this month. This includes links on Wells Fargo mobile and online sites for a portion of their customers to drive them through our offers. Going into 2020, we expect broader exposure to Wells Fargo channel, grow that in a similar pace to our last national bank launch. Once complete, we expect Wells Fargo to have a robust user experience across all channels, mobile, online and email.
Now, I would like to discuss our key long-term priorities to drive future success. First is to increase the number of marketers we count as Cardlytics' clients and to increase the amount of marketers spend on our platform. We're pleased to say we continue to expect increased logos and spends for 2020 as marketers fully understand the impact we can have on their business.
Second, to continue to bring our capabilities to new verticals, including our more nascent verticals of e-commerce, travel and entertainment, grocery and premium. Third, to continue evolving the Cardlytics' platform by making a multi-year investment to move to a more highly automated platform that can reduce buying friction, be extended the third parties and support richer media. Feedback from our FI partners have been very positive and they are excited about the richer content and user experience to stable.
And finally, to continue to demonstrate operating leverage in our business from the investments we've already made in our infrastructure, technology and workforce