By Michael Dabaie
Shares of Cardlytics Inc. were down 26% to $ 86.01 after quarterly results and outlook that beat analysts’ expectations.
The digital advertising platform after the bell on Tuesday said second-quarter revenue more than doubled to $ 58.9 million, which missed the FactSet consensus of $ 62.9 million.
The loss per share was $ 1.43, larger than the FactSet consensus for a loss of 65 cents. The adjusted loss was 39 cents, larger than the FactSet consensus for an adjusted loss of 31 cents.
“While we increased the Cardlytics platform billing by 111% and the adjusted contribution by 123% year-over-year, we fell short of our forecast. This is because we are forecasting a faster recovery than that achieved due to labor shortages and supply chain challenges in retail, restaurant and travel, ”CEO Lynne Laube said in the statement results.
Looking ahead, the company forecast third-quarter revenue of $ 57-66 million, below the FactSet consensus of $ 71 million.
“We believe that we will still face a patchy recovery in the third quarter, as each industry in which we operate still faces unique macroeconomic challenges,” said CFO Andy Christiansen.
“Our forecast for the third quarter recognizes the reality that the pandemic is still affecting our business. Additionally, we are not providing a forecast for the fourth quarter or full year at this time as we continue to see volatility. Most importantly, we are not reducing internal goals or quotas, ”Ms. Laube said on a conference call.
“Based on the current macroeconomic climate, we expect the fourth quarter to continue to be a seasonal high point for most advertising spend and consumer spending. to varying degrees which may result in subsequent decision making on the launch of the campaign, ”Christiansen said in the appeal.
KeyBanc Capital Markets said a patchy recovery is creating headwinds in vertical specific ad dollars.
“We are lowering our estimates to try to better reflect the patchy nature of the recovery on the Cardlytics platform. We remain constructive on strategy and management, while seeking better visibility on [long-term average revenue per user], Dosh and Bridg’s Potential, ”and because of that, the industry’s weight remains on the stock, KeyBanc said.
Cardlytics acquired Dosh, a transaction-based advertising platform, in March, and Bridg, a customer data platform in May.
Needham noted that the company’s results and forecast were lower than expected, but said billing and revenue had increased, “which we believe shows the company is recovering from the pandemic, just in a more measured pace “.
Needham said he thought the after-hours decline in equities after the second quarter release was overdone, and said it would be buyers on weakness. Needham’s analyst note said this was “especially with what we see as a more conservative NT approach to guidance. We reiterate our PURCHASE note but lower our target to $ 120 to reflect the slower resumption of the pandemic “.
Write to Michael Dabaie at [email protected]