Q4 2024 Cardlytics Inc Earnings Call
Speaker Change: Good afternoon, ladies and gentlemen, and welcome to the Cardlytics 4th quarter fiscal year 2024 earnings conference call.
Speaker Change: At this time, all lines are in listen, only mode. Following the presentation, we will conduct a question and answer session.
Speaker Change: If at any time during this call you require immediate assistance, please press tar zero for the operator.
Speaker Change: This call is being recorded on Wednesday, March 12, 2025. I would now like to turn the conference over to Nick Lynton, chief legal and privacy officer. Please go ahead. Good evening and welcome to the Cardlytics 4th quarter in full year 2024 financial results call.
Speaker Change: Before we begin, let me remind everyone that today's discussion will contain four looking statements based on our current assumptions, expectations, and beliefs.
Speaker Change: Including expectations regarding our future financial performance and results, including for the first quarter of 2025, our capital structure, the rollout of new financial institution partners and the renewal of existing financial institution partners, an operational and product initiatives and improvements.
Speaker Change: 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 factor section of our 10K for the quarter and full year ending December 31st, 2024, which has been filed with the SEC.
Speaker Change: Also during this call, we will discuss non-GAT measures of our performance. GAT financial reconciliation and supplemental financial information are provided in the press release issue today, which you can find on the Investor Relations section of the Cardlytics website.
Speaker Change: Today's call is available via webcast and a replay will also be available on our website.
Speaker Change: On the call today we have CEO Amit Gupta and CFO , Alexis DeSieno. Following their prepared remarks, we'll open it up for your questions. With that, I'll hand the call over to Amit.
Amit Gupta: Good evening and thank you for joining our fourth quarter and four-year 2024 earnings call. I'd like to start with a few thoughts on 2024. Overall, it was a transitional year for us. As we navigated changes, while staying focused on the growth levers, we laid out for our business.
Amit Gupta: We face institutional challenges around network upgrades, changes in FI partner platforms, increased competition, as well as growth constraints with bridge.
Speaker Change: When I took this role, I knew we had to get that to grow by building on our core strengths. I am clear eye-to-wire challenges, as well as our value proposition. Building on our leadership in the industry for more than 16 years, we are focused on strengthening our competitive mode to provide a truly differentiated commerce media platform for our partners and advertisers.
Speaker Change: We believe we have the best data set in the business. We see approximately $5.8 trillion of annual consumer spend. We partner with top financial institutions which enable us to operate what we believe to be the leading financial media network in the US.
and many more. Thank you. Thank you.
Speaker Change: Our north star of driving consumer engagement has not changed. However, we are refocusing our efforts on a turnaround plan to get us back to growth. As part of this, we divest it or close non-for businesses like DASH and made decisions to reinvest in areas that will help us a lot more growth.
Speaker Change: For example, we are building up our partnerships, data engineering capabilities, and go to market efforts. We are also in the process of standing up in new office in Taiwan to take advantage of the high caliber local talent whose expertise is aligned with our growth priorities.
Speaker Change: Despite the challenges in 2024, we nevertheless made progress on a number of efforts that have set a good foundation to build upon this year. We diversified our business by scaling new FIP partners and brought new advertisers onto our network.
Speaker Change: Now, turning to Q4, we exceeded the high end of our guidance across all metrics. This was due to higher than expected pipeline wins and our continued efforts to improve delivery of our platform, which I'll cover in more detail.
Speaker Change: As I outlined on our last call, I'd like to share the projects we've made on each of our four key pillars of our turnaround plan.
Speaker Change: First, increasing our supply so that we can need our consumers where they are. With our newest large FIParker in the US, our offers are now reaching all eligible card members, and we are working to scale the volume of content we deliver to them.
Speaker Change: I am happy to share that we have also signed a new neo bank partner in Q4, one of the fastest growing protection of the U.S.
Speaker Change: We have begun testing and expect to be at scale with them in record time by the end of Q1 this year.
Speaker Change: We are also focused on renewing agreements with our existing FI partners as Cardlyt offers continued to be an important component of BAI for the programs.
Speaker Change: In the UK, we continue to see strong double-digit growth in Q4, the growth was driven by an increase in on the supply and more consumer engagement with our offers.
Speaker Change: In addition to financial institutions, we are also engaging with new partners in other sectors who are expecting interest in our platform, as a way to build and grow a loyalty program for their customers.
Speaker Change: I look forward to sharing more updates on this particular effort in the coming quarters.
Second, strengthening and growing demand with our advertisers.
Speaker Change: Last quarter, we saw an increase in churn and reduced budgets with a small number of our large advertisers in the US, which were driven by organizational changes, broader macro factors, as well as our own platform changes.
Speaker Change: We are working to win back these advertisers while also adding new large brands that consumers know and love.
Speaker Change: Despite the churn, we continue to sign new brands across industries which will scale over time as our network continues to perform.
Speaker Change: We had success in growing budgets through custom targeting. As an example, we are working with an advertiser in the Home Improvement category to expand their base of professional contractors.
Speaker Change: By using our unique purchase data, we identified and targeted these contractors based on their sending habits, driving incremental sales from this high value, hard-to-reach customer segment.
Speaker Change: We are also responding quickly to our advertisers requests for new features and tailored tech solutions to meet their unique needs. For example, we accelerated development of micro targeting solutions by combining our core cardlytics and bridge capabilities for the first time.
Speaker Change: We expect to soon begin testing a series of CPG offers from large retailers and by using Bridges product level data, we believe this new offer construct will unlock CPG budgets and create new co-branded supply experiences between banks and merchants.
Speaker Change: In the UK, we saw strong growth in the everyday spend retail and travel industries. Much of this growth came from successful pilots with new advertisers, including a leading global airline and ride share service.
Speaker Change: We also continue to see a strong update with our Insights quarter, with a 50% increase of brands using the Porto as of the end of play 24.
Speaker Change: Based on this early success, we expect interest in our insights on demand to grow as we continue to roll out new dashboards.
Speaker Change: We know that access to the insights portal is another important reason why advertisers continue to spend with us as we provide what we believe to be the most comprehensive set of consumer spend data across online and in store channels.
Moving on to our third pillow.
Speaker Change: are continued and relentless focus on building a high performing network. In 2-4, we sequentially improve delivery. We are consuming campaign budgets with more predictability and continue to drive engagement with offers.
Speaker Change: We have resolved many of the key issues that were contributing to the extreme scene in previous quarter and improved the efficiency of our platform.
Speaker Change: We are making incremental improvements to our budget management and protection models. We also continue to automate many of our efforts to improve predictability and performance and optimize for relevancy to drive for their efficiency.
Speaker Change: To further optimize campaign performance through better visibility and quicker feedback, we continue to work with our advertisers to shift to engage in based pricing models. In Q4, 61% of our advertisers in the US were on engagement based pricing up from 51% in Q3.
Speaker Change: We remain on track to have vast majority of our advertisers on engagement based pricing by the end of this year.
Speaker Change: Looking ahead, we will focus on the initiatives that further strengthen our network which is a key differentiator in the CLO market and cannot be easily replicated.
Speaker Change: Our Value Proposition remains one of a kind and we will continue to build on our cutting-edge product and tech capabilities.
and our final pillar, celebrating our growth in bridge.
and many more. Thank you. Thank you.
Speaker Change: We saw a healthy pipeline of client interest for identity resolution heading into the new year. Although Q4 did not show the results, we had hoped we remain optimistic about growing our bridge revenue this year with new advertisers and continued product improvements. And we focus our efforts on our go-to market strategy.
Speaker Change: With Ripple, we now have over 110 million unique shopper profiles and continue to see strong performance with our audiences. Based on the initial client feedback, we will focus on increasing awareness with new advertisers and agencies to boost the adoption of our audiences.
Speaker Change: One area that I want to be clear on is our liquidity. We are very comfortable with our position and our ability to fund operations and pay off current debt obligations.
Speaker Change: While we've seated our guidance in Q4, we are not satisfied with this performance and believe that our Q1 will represent the Billings from our transitional period.
Speaker Change: We are setting the stage for 2025 to be a transformative year for the company and we believe we are uniquely positioned to be a leader in commerce media.
Speaker Change: With our ongoing product and textback innovation, expanding network, and potential to grow our flywheel, we are enthusiastic about capitalizing on our momentum. I'll now turn it over to Alexis to discuss the financials.
Thank you, Amit.
Alexis DeSieno: I want to echo Amit's comments about the full year 2024. In our pursuit for rapid transformation and growth, we face some executional setbacks. Despite that, I remain confident in the unique value proposition that we offer to our bank partners and our advertisers.
Alexis DeSieno: In Folier 2024, our top line billings were negative 0.7% year-over-year, excluding the sale of entertainment. An annual adjusted EBITDA was $2.5 million dollars positive for the second time on a Folier basis.
Alexis DeSieno: We slightly reduced expenses while balancing investments for growth and took a series of steps to strengthen the balance sheet and settle an outstanding lawsuit.
Alexis DeSieno: We are committed to delivering sustainable profitability and free cash flow over time and believe this commitment requires balancing investments in growth and disciplined expense management.
Alexis DeSieno: Turning to our specific fourth quarter results. My comments will be year over your comparisons to the fourth quarter of 2023, excluding entertainment and less stated otherwise.
Alexis DeSieno: Thank you for our total billings were $116.3 million, an 11.2% decrease.
Alexis DeSieno: We beat our Billings guidance primarily due to improvements in delivery and pipeline winds in the U.S., including from a number of national brands.
Alexis DeSieno: Compared to Q4 2023, we had a reduction in a few key accounts as expected. However, we signed a large number of new brands in Q4, of which more than 90% were on engagement-based pricing.
Alexis DeSieno: We continue to diversify our content with Q4 representing the highest number of total advertisers since 2022.
Alexis DeSieno: 2024 was the biggest year we've had for new business, and that has laid the foundation for growth in 2025.
Alexis DeSieno: We saw sequential progress in our continued efforts to stabilize our platform, and in Q4 we were able to deliver results for advertisers with more accuracy and predictability, which we believe builds trust and unlocks future budgets.
Alexis DeSieno: Consumer incentives decreased by 1.2% to $42.3 million, and revenue decreased 16% to $74.0 million. We saw better rewards management reflected in our revenue to Billings margins, which improved 3.7 points from the previous quarter.
Looking at our segment revenue results.
Alexis DeSieno: Our U.S. revenue decreased 19.9% due to lower billings and higher reductions.
Alexis DeSieno: In the UK, we saw the fourth consecutive quarter of double-digit revenue growth at 27.2% and the highest quarter of rewards to date.
Alexis DeSieno: Bridge revenue declined 12.7%, compared to the prior year due to the loss of key accounts in early 2024. Adjusted contribution was $40.7 million, down 12%.
Alexis DeSieno: As a percentage of revenue, our adjusted contribution margin was 55%, up 2.5 points due to a more favorable partner mix.
Adjusted eva.declined from $10.3 million to $6.4 million.
Alexis DeSieno: Total adjusted operating expenses, excluding stock-based compensation, came in at $34.3 million, lower than the prior quarters due to a reduction in incentive compensation.
Alexis DeSieno: We are maintaining cost discipline while making prudent decisions around long-term investments in our business.
Alexis DeSieno: Thank you for operating cashflow with positive $3 million. Free cashflow was negative $1.5 million, the sequential improvement of $2.4 million from the prior quarter.
Alexis DeSieno: On the balance sheet, we ended Q4 with $65.6 million in cash and cash equivalent, and $60 million of unused available borrowings under our line of credit.
Alexis DeSieno: We made our first full payment of interest expense on our 2024 convertible note of approximately $4 million, and subsequent to Q4 we paid $3 million of the $5 million in payments that remain for our settlement with SRS.
Alexis DeSieno: Our M&U's were 167.3 million for the fourth quarter, a decrease of 0.4%, driven primarily by winding down dash and a smaller FI partner.
Alexis DeSieno: Arp who was 44 cents, down 16.7% as a result of increased consumer incentives.
Now, turning to our outlet for Q1
Alexis DeSieno: 4Q1, we expect, Billings, between $91.5 and $94.5 million revenue between $57 and $60 million.
Alexis DeSieno: Adjusted contribution between $30 and $32.5 million, and adjusted EBITDA between $0.7.5 and at $4.0 million.
Our Billings Guidance represents negative 13% to negative 10% growth.
Alexis DeSieno: As a reminder, Q1 is a seasonally weak quarter for the advertising industry as a whole, and our oilings have historically increased sequentially on a quarterly basis throughout the year.
Alexis DeSieno: From a pipeline standpoint, we are laughing reductions of a few key accounts versus Q1 of last year, but as I mentioned, some have returned to pilot with us in March.
Alexis DeSieno: The remaining key accounts have reduced their budgets but continue to spend with us, especially in the restaurant and travel categories.
Alexis DeSieno: We see strength in everyday spend, a category that continues to be a differentiator for us, as well as in direct-to-consumer and emerging brands.
Alexis DeSieno: As Amit mentioned, our efforts to stabilize our platform are paying off and we are delivering more predictable results for advertisers.
Alexis DeSieno: Under delivery of campaign budgets remains a dragging Q1, but we expect incremental improvements with continued refinements in targeting and ranking.
Alexis DeSieno: As of late Q1, we have ramped with our newest large FI partner and our offers are now reaching all eligible card members.
Alexis DeSieno: We are working to scale the volume of content that we deliver to them.
Alexis DeSieno: In the US, we expect Q1 to represent the trough in our performance, as we expect Q1 to be the lowest Billings Quarter and lowest growth rate in 2025.
Alexis DeSieno: The UK continues to grow. We expect continued Billings growth for the full year as we focus on increasing demand through high-quality advertisers and categories like rideshare and grocery.
Alexis DeSieno: Bridge should return to positive growth this quarter as we lap the loss of a key account in Q1 of 2024.
Alexis DeSieno: We expect to see accelerating growth from Bridge and Ripple in the second half of the year.
Alexis DeSieno: Revenue as a percentage of billings is expected to be in the low 60 percent range for Q1, driven by increased engagement and better rewards management as we have made improvements to delivery.
Alexis DeSieno: As a reminder, we continue to be focused on adjusted contribution, which we believe is the best indicator for our business.
Alexis DeSieno: As we scale new supply with more favorable revenue share, adjusted contribution should improve.
Alexis DeSieno: Operating expenses are expected to be sustained below $40 million, excluding stock-based compensation.
Alexis DeSieno: While we will make strategic hiring decisions, we will continue to evaluate our costs as we monitor performance.
Alexis DeSieno: For example, we have deprioritized non-core businesses in order to free up resources to focus on our core business and to facilitate investing in a cost-effective technology hub in Taiwan.
Alexis DeSieno: For 2025, CAPEX has expected to remain in the mid-to-high $4 million range per quarter. Free cash flow should sequentially improve with semi-annual payments of interest on a convertible note and a final payment of $2 million to SRS in June .
Alexis DeSieno: For 2025, we are focused on delivering improved adjusted EBITDA sequentially through the year, and positive adjusted EBITDA exiting the year based on improved execution in the U.S., continued growth in the U.K., and growth from bridge.
Alexis DeSieno: We believe this can be enabled by sequential billings growth driven by a stabilized platform delivering enhanced customer value and greater diversification of our supply partners.
Alexis DeSieno: To reiterate a miss earlier points, we have comprehensively evaluated our cash needs and believe that our liquidity is sufficient. We remain confident in our ability to invest in our business while also satisfying all of our financial obligations, including the repayment of our outstanding convertible note.
Alexis DeSieno: As we have proven so far, we are taking a disciplined approach to current year investments, and we will invest only as top-line performance improves.
Alexis DeSieno: We continuously evaluate options to further improve our liquidity and strengthen our balance sheet.
I'll now turn it back to Amit for closing remarks.
Amit Gupta: Thank you, Alexis. Before we move to Q&A, I just want to reiterate that we believe 2025 will be a transformative year for Cardlytics.
Your first question comes from the line of Luke Horton from Northland Securities. Your line is now open.
Luke Horton: Yeah, Hey, guys congrats on the quarter.
Luke Horton: Sounds like you guys have a hell of a lot going on I just wanted to touch on delivery performance.
Luke Horton: Last quarter, you guys were making some progress on the over delivery side.
Luke Horton: Just wanted to see if that continued to improve.
Luke Horton: And then also on the under delivery what sort of <unk>.
Luke Horton: Yes, you guys have made there.
Luke Horton: Yes. Thank you for the question.
Luke Horton: I'm, probably going to refer back to our prepared remarks as mentioned we've made sequential improvements in delivery from our low point in Q3 and delivery is now within acceptable parameters. Our network continues to perform and now we're delivering budgets more predictably and the campaigns are hitting the revised goals.
And an important critical point too.
Speaker Change: Takeda are mentioned here is we have resolved many of the key issues that were really contributing to the extremes. We've seen in previous quarters. So we feel very good about that and to your point over delivery has been addressed under delivery continues to improve with our new focus on targeting and relevancy.
Given that this has been a big challenge for us in the past I feel it might be worthwhile for us to going into a little bit more detail and what we did and what we're planning to do.
Speaker Change: In terms of.
Speaker Change: What we've done in the past, where our teams have worked pretty hard product engineering sale than everybody.
Speaker Change: We've put stringent limits on campaigns, we put in daily monitoring.
Speaker Change: Management more efficient campaign pacing, we've improved our projection models, which is basically removed under projections. So we're not leaving money on the table.
Speaker Change: Going forward. The focus is really about ongoing incremental improvements to fine tune. The system. So we continue to really increase the end to end automation and reduce the human intervention, so things like AD ranking adjustments testing different reward amounts conversion models to increase redemption all of those are things which continue.
Speaker Change: To be underway, but feeling very good that the bulk of the problem is behind us.
Speaker Change: Got it.
Speaker Change: And then just on that.
Speaker Change: New sign.
Speaker Change: <unk> partner <unk> bank in the U S.
Speaker Change: Wondering kind of how significant of a partnership business for you guys and would that by the end of Q1 that you expect.
Speaker Change: To be fully live with them and then any sort of details on the on the partner sharing agreement.
Speaker Change: With this.
Speaker Change: Hi Fi partner.
Yes.
I would probably say every partner is important to us and significant for us regardless of their size and that's just an important ingredient in how we think and how we think about partnerships in general so.
And we're happy as I mentioned in my prepared remarks. They are one of the fastest growing fintech. There are neo bank with a very diversified customer base. So we're excited about having them on our platform as a partner.
Speaker Change: And it's a testament to our engineering team that we've invested significant resources and capabilities, we're able to now onboard partners in record time like this needs to be signed the partner we brought them on board and you actually launched the initial.
Speaker Change: The early rounds, and as I mentioned, we plan to be fully ramped up.
Speaker Change: No matter a few more weeks. So we're excited about them and they will actually add a lot of interesting new demographic segments to our mix.
Speaker Change: Again I want to mention then underscored. This every partner is important for us and we're happy to have them onboard.
Speaker Change: Got it sounds good and then just lastly here.
Speaker Change: You guys really kind of dialed back on Opex during the quarter.
Speaker Change: I'm wondering if business sort of a new run rate going forward I know you had mentioned.
Scaling is these scale topline growth too but.
Wondering kind of how you're thinking about expenses.
Speaker Change: About 2025.
Luke Horton: Thanks, Thanks Luke.
Luke Horton: Yeah as I said in the prepared remarks, we expect it to be below $40 million for the rest of the year.
Luke Horton: We do not expect it to be at the level you saw in Q4, which is 34 million excluding stock based compensation that is really a result of <unk>.
Luke Horton: <unk> incentive compensation in 2024.
Luke Horton: And so it's a kind of normalized back to what you were seeing in Q3 that said, we are optimizing costs and we are making deliberate decisions as Mitch said we.
We rolled out das and we are launching have been Taiwan. So we are investing in key areas, while pulling back and others. So I would model more mid mid to high Thirty's.
Luke Horton: Going forward, yes.
Speaker Change: Awesome well, thanks for answering the questions and excited to see all of these initiatives play out over the over the next year.
Luke Horton: Thank you.
Your next question comes from the line of Kyle Peterson from Needham. Your line is now open.
Luke Horton: Yes.
Great.
Luke Horton: Guys. Thanks for taking the questions.
Speaker Change: I appreciate the updates just wanted to start out with.
Speaker Change: The the consumer incentives I know they've been bounce around a little bit is joining us.
Proof.
Speaker Change: But it does look like.
Speaker Change: The <unk> number in the <unk> guide looks kind of implied to be fairly stable.
Speaker Change: Is this a good run rate to use moving forward for percentage of billings or do you expect there'll still be some some choppiness.
Speaker Change: So as you guys consider to continue to migrate towards engagement based pricing.
Speaker Change: Thanks Noah.
Speaker Change: No I think it should remain in the low 60% range like we had in the last quarter and in the guide as I said, we're focused on driving value to consumer isn't driving engagement, but keeping our margins within an acceptable range. So some of the Overages you may have seen in the past were really related to that over delivery.
Speaker Change: Since we have that under control, it's really about.
Speaker Change: Driving rewards.
Speaker Change: Instances, where theres billings associated with them and just to be clear, we want to drive and grow the total pie of engagement and so that means driving more value to consumers.
Speaker Change: And driving more value for advertisers, while still focusing on margins within an acceptable range. So I would I would keep it in the low 60%.
Revenue billings.
Speaker Change: Range.
Speaker Change: Okay.
Speaker Change: That's helpful and then I guess, just a follow up.
Speaker Change: Oh gosh.
Speaker Change: And is there any way you guys could give us a little bit of.
Speaker Change: Color on the revenue and expense base.
Speaker Change: What is sort of assuming that's probably a net drag on profitability, but I guess, how should we think about.
Speaker Change: Any impact of that.
Speaker Change: So the top line.
As well as the cost base.
Theres any stranded costs Sir.
No one timers that we need to be mindful of in our model.
Yes.
Speaker Change: Sure So Josh.
Speaker Change: Ever broke out specifically how much it was contributing in any way. It does help just refocus the team from a cost and time perspective onto other initiatives that matter more.
Speaker Change: The only real thing you should see is in Q1, you will see a noncash gain for the aggregate amount of cash that was not withdrawn from balances, but that cash was already in our cash and cash equivalents, so that would've shown up on the consumer.
Speaker Change: Consumer incentives consumer incentive liability line on the balance sheet, but other than that no no major one time costs and no real <unk>.
Speaker Change: <unk>.
Speaker Change: Oh.
Speaker Change: And Kyle just to add to what Alex said Dodge was a very principal decision I believe focus helps.
Speaker Change: And as <unk> has mentioned this helps us free up not just resources, but also mindshare, that's going in and maintaining our product for the first level. The first class citizen level and so this is very much not core to our long term plans and long term strategy and a turnaround plan that I've put in place. So that was the driving factor in this case.
Speaker Change: Okay.
Very good color.
Speaker Change: Appreciate it and thanks for taking my questions.
Speaker Change: Thank you.
Omar: Your next question comes from the line of Omar <unk> from Bank of America. Please go ahead.
Omar: Hey, guys Arthur off Omar Thanks for taking my question.
Omar: Just one quick one on macro I guess as you guys are having these conversations with advertisers on their 2025 budget have you sensed any change in sort of advertiser mentality.
Omar: Perhaps just give us some of that you can all I've got certainties that have emerged recently.
Omar: Yes, I think that's a good that's a good question youll see the expanse of data we see.
Omar: And so we start to kind of get patterns and based on the patterns we're seeing.
Omar: See a consumer pullback for disk and discretionary spend so verticals like travel and restaurants. So we see some initial pullback patterns.
Omar: While the everyday spend around grocery our multiline retail they continue to be strong.
Omar: That said marketers really.
Omar: They come in and it's not a broad brush stroke.
Omar: So they really think about things in different categories, but just thinking about how we look from inside out.
Omar: These are the times when our diversified advertiser base really helps us and that's something that our sales team has done a great job in expanding that diversity diversity of advertiser base and the second thing during these times consumers do become a bit more deal focus of that also plays to our strength, but.
Omar: The key is there are there are advertisers or marketers, who are thinking about budgets differently and our teams are working very much closely with them to help weather through the uncertainty that emerges and it impacts some sectors more than the other.
Omar: Yeah.
Speaker Change: Thank you that's super helpful and maybe just.
Speaker Change: One more from me if I could Manny mentioned, I think and talk about micro targeting combining both cart it takes them a French data.
Cash out lot since thinking your budget, how should we think about the potential magnitude of this opportunity.
Speaker Change: Is this something that you would expect here.
In a mature impact topline and 125.
Yes, I think the important thing is that this is a unique capability that only card lytic can bring by connecting the two datasets and this was a priority that was important for me and we had our data engineering teams. We had our data analytics teams kind of work together and we figured out.
Speaker Change: Based on long amount of research and analysis, we figured out a way that we could connect the datasets in a privacy safe way by connecting signals new data signals within transaction strengths across the two data sets. So that's the good news.
Speaker Change: And Furthermore, as you rightly said this allows us to open new CPG budgets and provide more value to our end consumers. So.
So what we're trying to do right now we're focused on trying to do right now is getting it out in the market and do some early tests and once we iron out the wrinkles, we'll scale. It up. So this is something we are.
Speaker Change: Looking forward to and seeing the impact and we'll keep you posted in the forthcoming quarters.
Speaker Change: Perfect really appreciate it thank you guys.
Your next question is from the line of Jason <unk> from Craig Hallum. Please go ahead.
Speaker Change: Great. Thank you. This is Kyle on for Jason maybe first to start can you just touch on your new large U S financial institution partner and are there any assumptions for contribution in the Q1 guide and any incremental updates you have for the ramp of those partnerships throughout the year.
Thanks.
Speaker Change: As I mentioned and it's not really a contributor to the Q1 number so.
Speaker Change: So this is fully launched with all of their card members as of kind of late in Q1.
Speaker Change: But we're continuing to work more and more content to them.
Speaker Change: Every day, we're adding more every month, so it's still not a major contributor now and will continue to ramp throughout the year.
Speaker Change: Okay.
Speaker Change: Great and then you kind of touched on some green shoots that you are seeing in the pipeline. Just curious if you can kind of touch on the drivers of that pipeline strength youre seeing and how quickly could this.
Speaker Change: These new pipeline opportunity scale as Youre seeing things like supply supply grow in things like delivery get ironed out.
Speaker Change: Yeah, Hey.
Speaker Change: That's a.
Speaker Change: Very applicable question very.
Speaker Change: Very much grounded in our turnaround plan.
Speaker Change: There are green shoots if you will across all of those four pillars.
Speaker Change: So first of all as we've talked about in our delivery continues to get better.
Speaker Change: Most of the problem and we have upside in front of us.
Speaker Change: Those areas are on the supply side.
Speaker Change: Have built.
Speaker Change: A tangible value proposition that.
Speaker Change: Partners outside of <unk> are excited about chatting with us to deliver <unk>.
Speaker Change: <unk> level of <unk>.
Speaker Change: Value to their customers they want to increase the loyalty proposition that they're offering to their customer so.
Speaker Change: We're able to bring the best of the <unk> platform to nonbank supply partners as well and for our advertisers.
You heard me talk about new micro targeting solutions, we're also going to market for very large brands and retailers are with solutions that connect the best of both bridge and the core car lytic value prop to develop a broader value prop for them to drive there.
Speaker Change: Drive their marketing goals. So we have a slew of green shoots that we're excited about and all of them by definition have their own kind of incubation and germination timeline, but the fact that they are built on our core asset.
Speaker Change: Kind of gives me a lot of confidence in the future of <unk>.
Speaker Change: Progression.
Speaker Change: Perfect. Thank you guys.
Your next question is from the line of Robert <unk> from Evercore ISI. Please go ahead.
Speaker Change: Great. Thanks.
Just wanted to ask on the extension with a large U S partner and then the new Neo bank as well as he begins to talk about David expansions with advertisers just wondering if if access to this new set of customers.
Speaker Change: Different demographics and spending patterns is that helping to catalyze advertisers' demand or opening new doors for you on the demand side and then secondly, as you turn your focus to renewals this year.
Speaker Change: Wondering about any prospect for revisions with respect to revenue share I think you've talked in the past about slightly different value proposition or value.
Speaker Change: <unk> algo, adding a little bit more value to consumers potentially in exchange for lower.
Speaker Change: Partner, our partner's share that just just wanted to ask you Gary updated thoughts there. Thank you.
Yes. Thank you Robert I'll go maybe in that order. So first of all as we bring on new partners.
Speaker Change: Absolutely right. It allows our sales team and our.
Partner teams to go and provide a bigger swath of the network impact that we can have in the market to our advertisers.
Speaker Change: So that is absolutely we see that absolutely happening and that does give dividends back in terms of getting more diverse set of advertisers on the platform.
Speaker Change: And existing advertisers are inclined to spend larger budgets. So that absolutely does happen, but in addition to that what I'm also excited about the fact that we are we have invested a lot more in our data engineering capabilities and so that allows us to have models of which we are in the process of building right now is a conversion model.
Where we can target almost at an individual level. So that they can actually further helped increased redemption rate so that increases the power of overall network and our ability to target the overall network.
Speaker Change: So that's kind of to your first question on your second question on renewal the RIN.
Speaker Change: So we have we you're right we have a few renewals coming up and we continue to work with our bank partners routinely on a on a daily basis on a weekly basis and.
Speaker Change: I can say pretty much in every single case.
Speaker Change: Incentives our incentives are aligned with our bank partners incentives to deliver the maximum amount of value to their cardholders or to their clients and we continue to do the best we can and in some cases, we've actually.
Speaker Change: Tailored the product roadmap to meet specific needs for some of our Fi partners, which which we are in a unique place of being able to do now having built a more scalable tech stack.
Speaker Change: So we'll keep you posted.
Speaker Change: As as those unfold over the course of the year and beyond but we're confident that we're in a good place having invested in our tech and product capabilities in our go to market teams.
Speaker Change: Okay, great. Thank you.
There are no further questions at this time I would like to turn the call over to Amit for closing comments. Sir. Please go ahead.
Amit Gupta: Well. Thank you for joining us today, we look forward to discussing our first quarter results at the next earnings call have a good evening.
Speaker Change: Ladies and gentlemen. This concludes today's conference call. Thank you very much for your participation you may now disconnect.