Cardlytics, Inc. (NASDAQ:CDLX) Q4 2019 Earnings Conference Call - Final Transcript

Mar 03, 2020 • 05:00 pm ET


Cardlytics, Inc. (NASDAQ:CDLX) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Cardlytics Fourth Quarter and Full-year 2019 Financial Results Conference Call. [Operator Instructions]

I would now like to hand the conference over to your host for today, Mr. Kirk Somers. Please go ahead.

Kirk Somers

Good evening, and welcome to Cardlytics' fourth quarter and full-year 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 first quarter 2020 financial guidance, full-year 2020 financial outlook, executive changes, future growth of financial measures, the rollout of Wells Fargo, growth in financial institution monthly active users or FI MAUs in 2020, expansion into new verticals, the number of purchase transactions in the United States, the addition of marketers and marketers spend in 2020, the impact of investments on driving revenue and margin growth, achievement of future goals, the evolution of our platform to a highly automated platform, and our expectations regarding 2021 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-K for the year ended December 31, 2019 that we filed earlier 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 we filed with the SEC today. 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 a supplemental presentation to our fourth quarter and full year 2019 results has also been posted to our Investor Relations website.

Joining us on the call today is Cardlytics leadership team, including CEO and Co-Founder, Scott Grimes; COO and Co-Founder, Lynne Laube; CFO, David Evans; and SVP and Controller, Andy Christiansen. Following the 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 Grimes

Thanks Kirk, and thank you to everyone for joining us on our fourth quarter and full-year 2019 earnings conference call. 2019 was a strong year for Cardlytics. I am proud of what our colleagues have accomplished and I'm more confident than ever in our ability to achieve our goals going forward. I'm pleased to announce that we delivered fourth quarter results, which exceeded all key metrics from the guidance in our Q3 earnings call and are consistent with the preliminary results we delivered in January. Here are some of the highlights.

Total billings for the fourth quarter were $100.9 million, an increase of 44% year-over-year. Total revenue which is equal to billings net of consumer incentives were $69.3 million, up 45% and adjusted contribution was $31