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Cardlytics (NASDAQ: CDLX) Raises Q1 2023 Guidance After Better-Than-Expected Growth in U.S. Business and Product Optimizations

Cardlytics, Inc. (NASDAQ: CDLX) operates a digital advertising platform, which enables banks and financial institutions to offer reward and loyalty programs to its customers. Shares of the digital marketing company are surging 67% through early trading on Tuesday, April 4, 2023. Over the past three months, Cardlytics has seen average daily volume of 744,660 shares. However, volume of 25.21 million shares or dollar volume of around $144.2 million, has already exchanged hands through early trading.

Shares of Cardlytics are soaring after the company updated guidance for the first quarter of 2023. Previously, the digital marketing company was anticipating revenue between $54 million to $63 million on adjusted EBITDA of ($17 million) to ($10 million). Management’s updated guidance now estimates revenues between $63.5 million and $66.5 million on adjusted EBITDA of ($8 million) and ($5 million). Overall billings are seen increasing from the old range of $84 million – $93 million to a new range of $93 million – $97 million.

Management noted that despite the overall headwinds facing the financial sector, Cardlytics has seen better-than-expected growth in its U.S. business, as well as from product optimizations. The economic uncertainty has also led to a strong focus on cost management, which is seen has supportive to the company’s top and bottom line estimated results.

“Despite a difficult macroeconomic environment, our shift to a product-led operating structure is already yielding positive results,” said Cardlytics CEO Karim Temsamani. “Our improved topline guidance is driven by better than expected growth in the US business and the product optimizations discussed on our last earnings call. Additionally, our rigorous approach in managing our cost structure, including implementing $3.5 million of one-time savings during the first quarter, has positioned the business to exceed the high end of our previously announced Adjusted EBITDA range. We are confidently navigating 2023 and look forward to sharing more positive updates over the coming months.”

In mid-March 2023, Cardlytics disclosed borrowing $30 million from its $60 million line of credit with Pacific Western Bank. Management stated the move was a proactive response to the banking turbulence and reiterated confidence in meeting the company’s liquidity and profitability goals.

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The post Cardlytics (NASDAQ: CDLX) Raises Q1 2023 Guidance After Better-Than-Expected Growth in U.S. Business and Product Optimizations appeared first on Spotlight Growth.

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