Q2 2025 Cardlytics Inc Earnings Call
All lines are in listen only mode.
Following the presentation, we will conduct a question and answer session.
If at any time during this call you require assistance. Please press star zero for the operator.
This call is being recorded on Wednesday August six 2025.
I'd now like to turn the conference over to Nick Linton. Please go ahead.
Good evening and welcome to the <unk> second quarter 2025 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 expectations regarding our future financial performance and results.
Speaker #3: Good afternoon, ladies and gentlemen. And welcome to the second quarter 2025 Cardlytics Inc. earnings conference call. At this time, all lines are in mode.
Including for the third quarter of 2025, our capital structure.
Increasing our supply the growth of new partners advertiser churn and operational and product initiatives.
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 our 10-Q for the quarter ended June 32025, which has been filed with the SEC.
Speaker #3: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator.
Speaker #3: This call is being recorded on Wednesday, August 6th of 2025. I would now like to turn the conference over to Nick Lynton, please go head.
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, which you can find on the Investor Relations section of the <unk> website.
Speaker #4: Good evening and welcome to Cardlytics second
Speaker #4: financial results listen-only 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.
Today's call is available via webcast and a replay will also be available on our website.
On the call today, we have CEO, Amit Gupta and.
And CFO Alexis <unk>.
Speaker #4: Including expectations regarding our future financial performance and results, including for third quarter of 2025, our capital structure, increasing our supply, the growth of new partners, advertiser churn, and operational and product initiatives.
Following their prepared remarks, we'll open it up for your questions with that I'll hand, the call over to Amit.
Good evening and thank you for joining our second quarter 2025 earnings call.
Q2 marked another quarter of steady progress against our strategy as I look back over the past year since stepping into the CEO role, we significantly improved the product and tech challenges facing us over past several quarters diversified our ecosystem and set a foundation for growth.
Speaker #4: 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 our TimQ for the quarter ended June 30, 2025, which has been filed with the SEC.
Speaker #4: 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 ay, which you can find on the estor relations section of the Cardlytics website.
With the work we've accomplished we are now deepening our efforts in key areas that will be most critical for the next stage of our business.
I'd like to share details on the progress we've made last quarter to advance our four business pillars.
Speaker #4: Today's call is available via webcast and a replay will also be available on our website. On the call today, we have CEO Amit Gupta and CFO Alexis DeSieno.
First increasing and diversifying our supply to meet consumers where they are.
Our publisher base is what makes our network unique and growing and diversifying. This foundation continues to be a top priority for us we're focused on growing our partnerships with both financial institutions and merchants from other verticals. We are pleased with the early progress with our newest bank partners and we have a robust pipeline of <unk>.
Speaker #4: Following their prepared remarks, we'll open it up for our questions. With that, I'll hand the call over to Amit.
Speaker #5: Good evening and thank you for joining our second quarter 2025 earnings call. Q2 marked another quarter of steady progress against our strategy. As I look back over the past year since stepping into the CEO role, we significantly improved the product and tech challenges facing us over past several quarters, diversified our ecosystem, and set a foundation for growth.
Perspective, <unk> and non <unk> partners in both the U S and UK.
We are not only focused on adding more publishers with large user basis, but also working with our bank partners to maximize user engagement with our offers when our partners are fully committed to our shared goal of maximizing value for our consumers, we see a substantial difference in our results.
Speaker #5: With the work we've complished, we are now deepening our efforts in key areas that will be most critical for the next stage our business.
Speaker #5: I'd like to share details on the progress we've made last quarter to advance our four business pillars. First, increasing and diversifying our supply to meet consumers where they are.
As an example, we've been working with a top five bank Parker, who has been investing in their program and increasing their marketing and merchandising activities around cashback offers.
Speaker #5: Our publisher base is what makes our network unique, and growing and diversifying this foundation continues to be a top priority for us. We're focused on growing our partnerships with both financial institutions and merchants from other verticals.
And through these efforts. This partner is seeing a significant lift across key metrics, including a 92% increase in activations and a 48% increase in redemptions year over year.
We plan to continue these efforts with several bank partners, who are interested in working with us to increase engagement and bring more demand.
Speaker #5: We are pleased with the early progress with our newest bank partners and we have a robust pipeline of prospective FI and non-FI partners in both the US and UK.
Now turning to the retail side of our CLO network on our last call, we announced the launch of the <unk> rewards platform, which strategically diversifies, our publisher base beyond <unk>.
Speaker #5: We are not only focused on adding more publishers with large user bases but also working with our bank partners to maximize user engagement with our offers.
Speaker #5: When our partners are fully committed to our shared goal of maximizing value for consumers, we see a substantial difference in results. As an example, we've been working with a top five bank partner who has been investing in their program and increasing their marketing and merchandising activities around cashback offers.
We are now collecting data from our pilot, making refinements to the platform and optimizing for the best consumer experience in parallel we are progressing many active conversations with leading merchants in the U S and UK, we look forward to sharing more Parker updates in due time.
Speaker #5: And through these efforts, this partner is seeing a significant lift across key metrics, including a 92% increase in activations and a 48% increase in redemptions year over year.
While we continue our efforts to expand our supply. We're also working through a notable change with our largest <unk> partner. This Parker who built their program with our offers over the last several years has recently decided to restrict a large amount of content from running on their channels starting July one.
Speaker #5: We plan to continue these efforts with several bank partners who are interested in working with us to increase engagement and bring more demand. Now, turning to the retail side of our CLO network.
While we expected some level of this we did not anticipate brand restrictions at this scale.
Speaker #5: On our last call, we announced the launch of the Cardlytics Rewards platform. We've egically diversified our publisher base beyond FIs. We are now collecting data from our pilot, making refinements to the platform, and optimizing for the best consumer experience.
The implications are that this partners users will likely receive significantly less content and less value.
We have also heard from numerous advertisers that they are equally concerned about the negative impacts to the efficacy of their programs if restricted from running on the trusted and proven <unk> platform.
Speaker #5: In parallel, we are progressing many active conversations with leading merchants in the US and UK. We look forward to sharing more partner updates in due time.
This change is posing significant limitations for our business.
Despite our attempts to find a better path forward for us and their customers. We are now focused on mitigating the impact of this bank's decision.
Speaker #5: While we continue our efforts to expand our supply, we are also working through a notable change with our largest FI partner. This partner who built their program with our offers over the last several years has recently decided to restrict a large amount of content from running on their channels starting July 1st.
First we will continue to invest in efforts to meet consumers, where they are and we expect to increase and diversify our supply.
Second we are improving our relevancy and targeting tools, which we expect will allow us to shift our content to other publishers that our focus on leveraging the <unk> platform to deliver value to consumers.
Speaker #5: While we expected some level of this, we did not anticipate brand restrictions at this scale. The implications are that this partner's users will likely receive significantly less content and less value.
Third our shift to engagement based pricing is helping advertisers see our platform as a real performance media ad format.
Speaker #5: We have also heard from numerous advertisers that they are equally concerned about the negative impacts to the efficacy of their programs if restricted from running on the trusted and proven Cardlytics platform.
Four we are working with our advertisers to blend PVC reporting instrumentality results and mmm readings for a more comprehensive view of performance, which we believe will continue to position <unk> as a trusted and a measurable growth channel.
Speaker #5: This change is posing significant limitations for our business. Despite our attempts to find a better path forward for us and their customers, we are now focused on mitigating the impacts of this bank's decision.
For clarity the restrictions imposed by this bank are unique to this partner.
No other Fi partner of ours has imposed restrictions of any similar magnitude nor do we expect them to.
Speaker #5: First, we will continue to invest in efforts to meet consumers where they are, and we expect to increase and diversify our supply. Second, we are improving our relevancy and targeting tools, which we expect will allow us to to other publishers that are focused on leveraging the Cardlytics platform to deliver value to consumers.
In fact, our other bank partners are leaning into our platform to deliver more value to their users and are growing their share on our network. We are committed to ensuring that our business is sustainable and on our path to profitability.
Speaker #5: Third, our shift to engagement-based pricing is helping advertisers see our platform as a real performance media ad format. Fourth, we are working with our advertisers to blend TVC reporting, incrementality results, and readings for a more comprehensive view of performance.
<unk> will discuss more about the financial impact of these changes will have.
We believe that our network capabilities are a real market differentiator that cannot be easily replicated competitors have generally not been successful in capturing budgets from advertisers with multiunit chain or more sophisticated CLO needs.
Speaker #5: Which we believe will continue to position Cardlytics as a trusted and immeasurable growth channel. For clarity, the restrictions imposed by this bank are unique to this partner.
Here at this time and time again from our advertisers that only <unk> has the scale and ability to run the type of novel AD formats that they want.
Speaker #5: As no other FI partner of ours has imposed restrictions of any similar magnitude, nor do we expect them to. In fact, our other bank partners are leaning into our platform to deliver more value to their users and are growing their share on our network.
Since these restrictions were imposed we've seen negligible churn with a restricted brands. The vast majority of them have stayed on our platform. So far now.
Now moving onto our second pillar strengthening and growing advertiser demand in light of supply limitations doubling down on demand is of utmost importance.
Speaker #5: We are committed to ensuring that our business is sustainable and on a path to profitability. Alexis will discuss more about the financial impact these changes will have.
Our UK business continued to show strong growth with the highest billings quarter in our history driven by strength in categories like everyday spend subscription services and retail.
Speaker #5: We believe that our network capabilities are a real market differentiator that cannot be easily replicated. Competitors have generally not been successful in capturing budgets from advertisers with multi-unit chains or more sophisticated CLO needs.
We signed over 20, new logos about half of which are top 150 brands in the UK and we are focused on growing these accounts and securing longer term commitments.
Speaker #5: We hear this time and time again from our advertisers that only Cardlytics has the scale and ability to run the type of novel ad formats that they want.
With more pressures on performance, we are helping our advertiser demonstrated results and working closely with them to develop longer term CLO strategies.
Speaker #5: Since these restrictions were imposed, we've seen negligible churn with our ricted brands. The vast majority of them have stayed on our platform so far.
In the U S. We also saw increased performance expectations from our advertisers advertiser churn was mostly concentrated in mid to small sized brands, which have been more susceptible to budget reductions we saw strength in everyday spend and specialty retail consistent with trend from the previous quarter.
Speaker #5: Now, moving on to our second pillar, strengthening and growing advertiser demand. In light of supply limitations, doubling down on demand is of utmost importance.
<unk>.
Speaker #5: Our UK business continued to show strong growth with the highest billings quarter in history, driven by strength in categories like everyday spend, subscription services, and retail.
Travel and restaurant categories experienced softness in the first half of the year as we've seen across the industry.
We are encouraged by signing new top tier brands in the U S as well, including a leading rideshare player top retailer and national restaurant chains.
Speaker #5: We signed over 20 new logos, about half of which are top 150 brands in the UK. We are focused on growing these accounts and securing longer-term commitments.
These enterprise accounts are where we see the highest potential for growth and scaling in the second half of this year.
Speaker #5: With more pressures on performance, we are helping our advertisers demonstrate results and working closely with them to develop longer-term CLO strategies. In the US, we also saw increased performance expectations from our advertisers.
In the light of the changes with our largest partner we are focused on reinforcing our relationship with our top advertisers and ensuring their content is effectively delivered across our spectrum of publishers.
Speaker #5: Advertiser churn was mostly concentrated in mid to small-sized brands, which have been more susceptible to budget reductions. We saw strength in everyday spend and specialty retail, consistent with trends from the previous quarter.
<unk> reorganized our sales organization under our new Chief business Officer, and are accelerating our go to market efforts with intensity.
We have been seeing success with our vertical focus go to market initiatives, and we will enhance and expand on this strategy we have.
Speaker #5: Travel and restaurant categories experienced softness in the first half the year, as we've en across the industry. We are encouraged by signing new top-tier brands in the US as well, including a leading rideshare player, top retailers, and national restaurant chains.
We're also leading with proven performance, which remains a true differentiator in the market against our competitors.
And wildly diversify our supply we are also adding new demand to our network, we expect to attract new brands and verticals to fuel our growth strategy with CRP.
Speaker #5: These enterprise accounts are where we see the highest potential for growth and scaling in the second half of this year. In the light of the changes with our largest FI partner, we are focused on reinforcing our relationship with our top advertisers and ensuring their content is effectively delivered across our spectrum of publishers.
Furthermore, by aligning U S and UK under one leader, we are able to work with leading brand and support their marketing spend across these markets contiguously.
Our third pillar maximizing the performance of our network. We are seeing the benefits of our focused efforts to stabilize and optimize our platform over the past few quarters, our network is performing effectively and efficiently, bringing more confidence to our partners and advertisers.
Speaker #5: We have reorganized our sales organization under our new chief business officer, and our accelerating our go-to-market efforts with intensity. We have been seeing success with our vertical focus go-to-market initiatives, and we will enhance and expand on this strategy.
As recently announced relaunched do dashboards within the car lytic insights portal to bring the full power of our network data to our advertisers the.
Speaker #5: We are also leading with proven performance, which remains a true entiator in the market against our competitors. And while we diversify our supply, we are also adding new demand to our network.
The new dashboards are focused on customer insights, which have historically been generated by our analytics team rather than self serve and in real time.
Speaker #5: We expect to attract new brands and verticals to fuel our growth strategy with CRP. Furthermore, by aligning the U.S. and U.K. under one leader, we are able to work with leading brands and support their marketing spend across these markets contiguously.
With the insights portal are advertisers can access market data and customer intelligence on demand whenever they need them.
One client noted we are sharing these insights internally to highlight cosmetics not just as a media partner, but a partner that provides real value to our business through data.
Speaker #5: Our third pillar, maximizing the performance of our network. We are seeing the benefits of our focused efforts to stabilize and optimize our platform over the past few quarters.
Lastly, we continue to make progress with the migration to engagement based pricing model, which are now implemented 479% of our advertisers in Q2, 96% of our new business ran on engagement based pricing reinforcing the fact that this pricing model is aligned with what our advertisers.
Speaker #5: Our network is performing effectively and efficiently, bringing more confidence to our partners and advertisers. As recently announced, we launched new dashboards within the Cardlytics Insights portal to bring the full power of our network data to our advertisers.
I'm looking for as it provides lower funnel signals that are valuable to them.
Speaker #5: The new dashboards are focused on customer insights, which have historically been generated by our analytics team rather than self-serve and in real time. With the Insights portal, our advertisers can access market data and customer intelligence on demand whenever they need them.
Engagement based pricing has also helped us compress deal cycles align with internal brand measurement model and we believe it will make us more resistant to churn over time.
And our final pillar accelerating our growth Enbridge.
Speaker #5: One client noted we are sharing these insights internally to highlight Cardlytics not just as a media partner, but a partner that provides real value to our business through data.
Last quarter, we saw strong and steady client interest for our identity resolution capability, including a long term renewal with a high end beauty brand.
We also signed a new partnership with the popular restaurant chain that is using our advanced analytics and business intelligence for deeper customer insights.
Speaker #5: Lastly, we continue to make progress with the migration to engagement-based pricing models, which are now implemented for 79% of our advertisers. In Q2, 96% of our new business ran on engagement-based pricing, reinforcing the fact that this pricing model is aligned with what our advertisers are looking for, as it provides lower funnel signals that are valuable to them.
For ripple, we're encouraged by the positive trends that helped us more than double our revenue quarter over quarter. We recently welcomed Hy Vee read media to ripple as our newest partner, which will further expand our current scale of over 140 million unique shopper profiles.
Speaker #5: Engagement-based pricing has also helped us compress deal cycles aligned with internal brand measurement models and we believe it will make us more resistant to churn over time.
Building on our efforts to scale supply over the past year. We are now continuing to focus on the demand side. In Q2, there has been strong traction with the adoption of a ripple audiences across different platforms.
Speaker #5: And our final pillar, accelerating our growth in bridge. Last quarter, we saw strong and steady client interest for our identity resolution capability, including a long-term renewal with a high-end beauty brand.
<unk>, we're seeing 10% growth vehicles on trade desk alone.
We are continuing to work with new and existing platform partners to accelerate this momentum and drive broader adoption and more revenue diversification.
Speaker #5: We also signed a new partnership with a popular restaurant chain that is using our advanced analytics and business intelligence for deeper customer insights. For Ripple, we're encouraged by the positive trends that helped us more than double our revenue quarter over quarter.
On our last call I shared that we launched a pilot for TPG offers with one of our large retail clients and bank partners I am pleased to report that initial results from this pilot are encouraging.
Speaker #5: We recently welcomed Hy-Vee, Red Media, to Ripple as our newest partner, which will further expand our current scale of over 140 million unique shopper profiles.
Not only to be validated the feasibility of connecting our bridge and cosmetics data the pilot demonstrated a positive impact on both shopper behavior and basket size.
Speaker #5: Building on our efforts to scale supply over the past year, we are now continuing to focus on the demand side. In Q2, there has been strong traction with the adoption of our Ripple audiences across different platforms.
Among redeemers, we saw a 30% increase in the rate of baskets containing the specific product as well as a 2% increase in basket size of our transactions containing the product.
And a 13% increase for all other transactions.
Speaker #5: In fact, we're seeing 10% growth week over week on Trade Desk alone. We are continuing to work with new and existing platform partners to accelerate this momentum and drive broader adoption and more revenue diversification.
Overall, we continue to move forward, taking a deliberate and thoughtful approach to growing our business.
There are undoubtedly challenges that we did not anticipate a year ago, but we believe that over the medium term the strategic shifts we initiated earlier this year will position us for profitable growth.
Speaker #5: On our last call, I shared that we launched a pilot for CPG offers with one of our large retail clients and bank partners. I am pleased to report that initial results from this pilot are encouraging.
We are operating efficiently and effectively and we believe these shifts will ensure that we continue to deliver on our promise to our partners advertiser consumers and investors.
Speaker #5: Not only did we validate the feasibility of connecting our bridge and Cardlytics data, the pilot demonstrated a positive impact on both shopper behavior and basket size.
I will now turn it over to <unk> to discuss the financials.
Thank you Amit.
In the second quarter, we delivered results above the midpoint of our guidance for most metrics and we surpassed the high end of our guidance for adjusted EBITDA.
Speaker #5: Among redeemers, we saw a 30% increase in the rate of baskets containing the specific product. As well as a 2% increase in basket size or transactions containing the product, and a 13% increase for all other transactions.
My comments will be year over year comparisons to the second quarter of 2024 unless stated otherwise.
In Q2, our total billings were $104 million or five 7% decrease.
Speaker #5: Overall, we continue to move forward, taking a deliberate and thoughtful approach to growing our business. There are undoubtedly challenges that we did not anticipate a year ago, but we believe that over the medium term, the strategic shifts we initiated earlier this year will position us for profitable growth.
We achieved our billings guidance by continuing to expand your billings with many of our top accounts in the grocery and gas category, which grew 41%.
Also had success in the retail category growing our largest retail advertiser by $2 $8 million in billings year over year.
We continue to see weakness in the travel category, which declined across a few key accounts.
Speaker #5: We are operating efficiently and effectively, and we believe these shifts will ensure that we continue to deliver on our promise to our partners, advertisers, consumers, and investors.
On new business, we are encouraged by the high quality of brands and momentum with 45 total new logo signed in Q2 and a strong potential to scale.
Speaker #5: I'll now turn it over to Alexis to discuss the financials.
Consumer incentives of $48 million were flat to prior year and revenue decreased nine 2% to $63 $2 million driven by a decrease in billings or revenue to billings margin was two three points lower than prior year due to pressures on advertiser performance.
Speaker #6: Thank you, Amit. In the second quarter, we delivered results above the midpoint of ur guidance for most metrics, and we surpassed the high end of our guidance for adjusted EBITDA.
Speaker #6: My comments will be year over year comparisons to the second quarter of 2024, unless stated otherwise. In Q2, our total billings were 104 million dollars, a 5.7% decrease.
Looking at our segment revenue results our U S revenue, excluding <unk> decreased 13% due to lower billings and pricing pressure as previously discussed in.
Speaker #6: We achieved our billings guidance by continuing to expand billings with many of our top accounts, in the grocery and gas category, which grew 41%.
In the U K, we saw 29% revenue growth driven by higher billings and increased supply.
Speaker #6: We also had success in the retail category, growing our largest retail advertiser by $2.8 million in billings year over year. We continue to see weakness in the travel category, which declined across a few key counts.
We grew billings with all of our top five clients in the quarter and launched a new advertiser who's billings were in the top five.
<unk> revenue decreased 8% due to the loss of a major account in previous quarters.
Speaker #6: On new business, we are encouraged by the high quality of brands and momentum, with 45 total new logos signed in Q2 and a strong potential to scale.
Adjusted contribution was $36 1 million down <unk>, 6% from the prior year. However.
However, we expanded our margin as a percentage of revenue to 57, 1% an increase of five points due to a more favorable partner mix.
Speaker #6: Consumer incentives of 40.8 million dollars were flat to prior year, and revenue decreased 9.2% to 63.2 million dollars driven by a decrease in billings.
This margin is the highest we have experienced to date driven primarily by growth of our newest bank partners.
Speaker #6: Our revenue to billings margin was 2.3 points lower than prior year, due to pressures on advertiser performance. Looking at our segment revenue results, our US revenue excluding bridge decreased 13% due to lower billings and pricing pressure as previously discussed.
Adjusted EBITDA was positive $2 7 million, an increase of $5 million.
Total adjusted operating expenses, excluding stock based compensation came in at $33 4 million a reduction of $5 $2 million, primarily due to our previously discussed reduction in SaaS and a reduction to incentive compensation.
Speaker #6: In the UK, we saw 29% revenue growth, driven by higher billings and increased supply. We grew billings with all of our top five clients in the quarter and launched a new advertiser whose billings were in the top five.
In Q2 operating cash flow was positive $1 2 million.
Speaker #6: Bridge revenue decreased 8% due to the loss of a major account in previous quarters. Adjusted contribution was 36.1 million dollars, down 0.6% from the prior year.
Free cash flow was negative $3 4 million, which was $3 million less than the prior year due to interest on our 2029 convertible notes and severance payments that was partially offset by improved working capital.
Speaker #6: However, we expanded our margin as a percentage of revenue to 57.1%, an increase of 5 points due to a more favorable partner mix. This margin is the highest we have experienced to date, driven primarily by growth of our newest bank partners.
Free cash flow improved from the prior quarter by $7 4 million.
On the balance sheet, we ended Q2 with $46 7 million in cash and cash equivalents. This week, we drew $50 million on our line of credit, leaving us with $10 million of unused available borrowings.
Speaker #6: Adjusted EBITDA was positive 2.7 million dollars, an increase of 5 million dollars. Total adjusted operating expenses excluding stock-based compensation came in at 33.4 million dollars, a reduction of 5.2 million dollars primarily due to our previously discussed reduction in staff and a reduction to incentive compensation.
We have $106 $7 million of liquidity, including the undrawn amount or $81 $7 million after accounting for our minimum cash covenant of $25 million.
As previously shared we plan to use the funds to pay for our upcoming 2025 convertible maturity as well as to give us extra flexibility as we navigate the upcoming quarters, while keeping our cash on hand at a comfortable level.
Speaker #6: In Q2, operating cash flow was positive 1.2 million dollars, free cash flow was negative 3.4 million dollars, which was 3 million less than the prior year, due to interest on our 2029 convertible notes and severance payments that was partially offset by improved working capital.
Lastly in Q2, we paid the final $2 million of our settlement with Srs fully closing this matter.
As a reminder, last quarter, we introduced monthly qualified users or MQ used to drive consistent reporting across our Fi and non FIA publisher partners.
Speaker #6: Free cash flow improved from the prior quarter by 7.4 million dollars. On the balance sheet, we ended Q2 with 46.7 million dollars in cash and cash equivalents.
In the second quarter, we had $224 5 million in Q use an increase of 19% driven by full ramp up of our newest EFI partners.
Speaker #6: This week, we drew 50 million dollars on our line of credit, leaving us with 10 million dollars of unused available borrowings. We have 106.7 million dollars of liquidity, including the undrawn ount or 81.7 million dollars after accounting for a minimum cash covenant of 25 million.
Excluding these partners <unk> would have been up 1%.
<unk> reflects how efficiently we convert advertiser budgets to value that the company can retain in.
In the second quarter <unk> was 14 down.
Down 15% year over year as the MQ base of our newest large Si partner has not yet been fully monetized.
Speaker #6: As previously shared, we plan to use the funds to pay for our upcoming 2025 convertible maturity as well as to give us extra flexibility as we navigate the upcoming quarters while keeping our cash on hand at a comfortable level.
ACP, new expanded 10% in the second quarter versus the prior quarter.
Now turning to our outlook for Q3.
Speaker #6: Lastly, in Q2, we paid the final 2 million dollars of our settlement with SRS, fully closing this matter. As a reminder, last quarter we introduced monthly qualified users or MQUs to drive consistent reporting across our FI and non-FI publisher partners.
Our expectations reflect the change with our largest si partner, which explained earlier.
For Q3, we expect.
Billings between 87% to $95 million revenue between 52, 2% and $58 2 million.
Speaker #6: In the second quarter, we had 224.5 million MQUs, an increase of 19%. Driven by full ramp of our est FI partners. Excluding these partners, MQUs would have been up 1%.
Just the contribution between 33 and $34 $3 million and adjusted EBITDA between negative Q3, and positive $2 $7 million.
Our billings guidance represents a negative 15% to negative 22% decrease year over year.
Speaker #6: ACPU reflects how efficiently we convert advertiser budgets to value that the company can retain. In the second quarter, ACPU was 14 cents, down 15% year over year as the MQU base of our newest large FI partner has not yet been fully monetized.
Despite this top line weakness, we still expect adjusted EBITDA to be breakeven and we further expect to have the highest contribution as a percentage of billings and revenue to date.
The primary driver of our expected billings decrease is a result of the content restrictions and reduced supply available to specific brands as I mentioned, our largest <unk> partner is restricting certain content from running on its channels starting on July one.
Speaker #6: ACPU expanded 10% in the second quarter versus the prior quarter. Now turning to our look for Q3. Our expectations reflect the change with our largest FI partner, which Amit explained earlier.
While this option has always existed per the terms of our agreement. This is the largest restriction we have experienced.
Speaker #6: For Q3, we expect billings between 87 and 95 million dollars, revenue between 52 point 2 and 58.2 million dollars, adjusted contribution between 30.3 and 34.3 million dollars, and adjusted EBITDA between negative 2.3 and positive 2.7 million dollars.
We are discussing this change with our advertising partners and working to shift as much of this volume as possible to other channels.
We are still learning how to optimize projections and targeting based on these changes.
While we are undertaking a range of actions to help mitigate this as Matt discussed we expect to see some impact to our results, which you will see reflected in our guide.
Speaker #6: Our billings guidance represents a negative 15% to negative 22% decrease year over year. Despite this top-line weakness, we still expect adjusted EBITDA to be break-even, and we further expect to have the highest contribution as a percentage of billings and revenue to date.
We are still in the early days of this optimization in our modeling conservatively.
This change underscores the importance of our diversification strategy across banks and non banks as well as continuing to diversify our demand.
Speaker #6: The primary driver of our expected billings decrease is a result of the content restrictions and reduced supply available to specific brands. As Amit mentioned, our largest FI partner is restricting certain content from running on its channels, starting on July 1st.
While we navigate the impacts of the expected reduction in billings, we are prudently slowing the pace of some of our investments and focus on overall expense management.
We continue to make progress with our newest large financial institution partner.
We had twice as many unique advertisers live with this partner in Q2 than in Q1.
Speaker #6: While this option is always existed per the terms of our agreement, this is the largest restriction we have experienced. We are discussing this change with our advertising partners and working to shift as much of this volume as possible to other channels.
We expect this momentum to continue and are pleased to see engagement rates similar to our most established partners and in some cases higher <unk> and redemption values for certain premium types of advertisers that do well with this unique demographic.
Speaker #6: We are still learning how to optimize projections and targeting based on these changes. While we are undertaking a range of actions to help mitigate this as Amit discussed, we expect to see some impact to our results, which ou will see reflected in our guide.
We continue to believe there is significant upside as engagement deepens we.
We are encouraged by our recent run rate in billings, which is now similar to one of our top five U S banks and we believe there continues to be upside as this partner skills.
Speaker #6: We are still in the early days of this optimization and our modeling conservatively. This change underscores the importance of our diversification strategy across banks and non-banks, as well as continuing to diversify our demand.
Our newest digital banking partner also helps to expand our reach with a different demographic and supports long term diversification.
Consistent with our last call we are not assuming any material financial impact in 2025 from either card lytic rewards platform or CPG offers.
Speaker #6: While we navigate the impacts of the expected reduction in billings, we are prudently slowing pace of some of our investments and focus on overall expense management.
Lastly, UK continues to be a bright spot as we expect continued strong positive growth in Q3, driven by a healthy pipeline of quality advertisers and continued supply growth.
Speaker #6: We continue to make progress with our newest large financial institution partner. We had twice as many unique advertisers live with this partner in Q2s and in Q1.
Revenue as a percentage of billings is expected to be in the low 60% range for Q3 as well as for the full year.
Speaker #6: We expect this momentum to continue and are pleased to see engagement rates similar to our most established partners, and in some cases, higher AOVs and redemption values for certain premium types of advertisers that do well with this unique demographic.
We have made strategic decisions to drive incremental performance in billings.
We expect adjusted contribution as a percentage of revenue to be in the mid to high 50% range.
Speaker #6: We continue to believe there is significant upside as engagement deepens. We are encouraged by our recent run rate in billings, which is now similar to one of our top five US banks, and we believe there continues to be upside as this partner scales.
This continues to be among the highest we have seen and reflects our improved economics with our new and ramping bank partners.
Despite top line weakness, we are keeping more of every dollar we make and we remain focused on driving profitability. We continue to expect this metric to improve sequentially as we diversify our supply.
Speaker #6: Our newest digital banking partner also helps to expand our reach with a different demographic and supports long-term diversification. Consistent with our last call, we are not assuming any material financial impact in 2025 from either Cardlytics Rewards platform or CPG offers.
Okay.
Our adjusted EBITDA guidance is a reflection of our recent operational cost base. Following the reduction in staff that we completed in May.
Speaker #6: Lastly, the UK continues to be a bright spot as we expect continued strong positive growth in Q3, driven by a althy pipeline of quality advertisers and continued supply growth.
We continue to hire in our lower cost technology hub. So we can continue to invest in key product areas.
Operating expenses are expected to be sustained at or below $33 million per quarter for the remainder of the year, excluding stock based compensation.
Speaker #6: Revenue as a percentage of billings is expected to be in the low 60% range for Q3, as well as for the full year. We have made strategic decisions to drive incremental performance and billings.
Given the changes to our top line, we remain committed to driving operational efficiency and we will make further changes as needed.
Speaker #6: We expect adjusted contribution as a percentage of revenue to be in the mid to high 50% range. This continues to be among the highest we have seen and reflects our improved economics with our new and ramping bank partners.
As we stated last quarter, we believe we have sufficient liquidity to satisfy all of our financial obligations, including the repayment of our outstanding convertible note.
Given our expected top line results were further narrowing our focus and flowing investments until we can show sustained improvement.
Speaker #6: Despite top-line weakness, we are keeping more of every dollar we make, and we remain focused on driving profitability. We continue to expect this metric to improve sequentially as we diversify our supply.
I will now turn it back to <unk> for closing remarks.
Thank you Alexis.
We remain confident in our ability to navigate the headwinds and focus on our strategy to grow and diversify our platform. We've made meaningful progress on our turnaround over the past year and we are committed to delivering continued success. Despite the challenging near term dynamics.
Speaker #6: Our adjusted BITDA guidance is a reflection of our reset operational cost base following the reduction in staff that we completed in May. We continue to hire in our lower cost technology hub so we can continue to invest in key product areas.
Speaker #6: Operating expenses are expected to be sustained at or below 33 million dollars per quarter for the remainder of the year, excluding stock-based compensation. Given the changes to our top line, we remain committed to driving operational efficiency, and we will make further changes as needed.
Before moving onto Q&A I want to thank our teams for their effort and commitment our partners and advertisers for the opportunity to serve them and our investors for their patients I will now turn it over to the operator to begin Q&A.
Thank you.
Speaker #6: As we stated last quarter, we believe we have sufficient liquidity to satisfy all of our financial obligations, including the repayment of our outstanding convertible note.
Ladies and gentlemen, we will now begin the question and answer session.
Should you have a question. Please press star one on your touch tone phone.
Speaker #6: Given our expected top-line results, we are further narrowing our focus and slowing investments until we can show sustained improvement. I'll now turn it back to Amit for closing remarks.
You'll hear a prompt that your hand, that's been raised.
Should you wish to decline from the polling process. Please press star two.
If you are using a speaker phone please lift the handset before pressing any Q1.
Speaker #5: Thank you, Alexis. We remain confident in our ability to navigate the headwinds and focus on our strategy to grow and diversify our platform. We have made meaningful progress on our turnaround over the past year and we are committed to delivering continued success despite the challenging near-term dynamics.
One moment. Please for your first question.
Okay.
Your first question comes from Jacob.
Stephan of Lake Street.
Your line is already open.
Speaker #5: Before moving on to Q&A, I want to thank our teams for their effort and commitment. Our partners and advertisers for the opportunity to serve them and our investors for their patience.
Yeah.
Hey, I appreciate you taking my questions.
Maybe just first starting on the Q3 outlook to billings decrease.
Help me understand a little bit better on the content restrictions.
Speaker #5: I'll now turn it over to the operator to begin Q&A.
This mostly brands that.
Speaker #7: Thank you. Ladies and entlemen, we will now begin the question and answer session. Should you have a question, please press star one on your touch tone phone.
Youre EFI partner is already doing business with.
Card Linux platform may be competing with them or maybe just kind of help us think through this.
Speaker #7: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star two. If you're using a speaker phone, please lift the handset before pressing any keys.
And their decision.
Yeah. Thank you Jacob Thank you for the question. So this is goes broader than the restriction is broader than the brands that the FY partners currently engagement or the content you see we were obviously not expecting this level of content restriction that has gotten it is beyond that what are.
Speaker #7: One moment, please, for your first question. Your first question comes from Jacob Steffen of Lake Street. Your line is already open.
Application was and that's why it's reflected in the guide.
But we are actively working with our bank partners and advertisers to make sure we minimize the impact of this.
Speaker #8: I appreciate you taking my estions. Maybe just first starting on the kind of Q3 outlook, the billings decrease. You know, help me understand a little bit better on the content restrictions.
Okay and.
Maybe you could just kind of talk a little bit more on the.
Speaker #8: Is this mostly brands that the your FI partner is already doing business with and Cardlytics platform may be competing with them or maybe just kind of help us think through this and their decision?
The credit line. It sounds like you guys are drew $50 million of that in Q3 here.
The debt Paydown already occurred or is that going to be.
Prior to Q3 and or will that be in Q4.
Speaker #5: Yeah. Thank you, Jacob. Thank ou for the question. So this is goes broader than the restriction is broader than the brands that the FI partner is currently engaged with or the content you see.
Thanks.
No. So we drew the line of credit yesterday for $50 million. The intent is to pay that at maturity for the notes that are due in September so certainly not waiting until Q4.
Consistent with that.
Speaker #5: We were obviously not expecting this level content restriction, and 's gotten it is beyond that what our ectation was, and that's why it's reflected in the guide.
Yes.
Right, we have always intended to draw the line to repay our notes.
And also have.
We maintained an operating cash balance between 40 and $50 million. So.
Speaker #5: But you know, we are actively working with our bank partners and advertisers to make sure we minimize the impact of this.
All of this is consistent with what I've said in terms of using it to pay the debt and maintaining a comfortable cash balance.
And then giving us sufficient flexibility to navigate the near term headwinds that we're experiencing.
Speaker #8: Okay. And maybe you could just kind of talk a little bit more on the credit line. It sounds like ou guys are, you know, drew 50 million dollars of that in Q3 here.
Got it.
Sorry, just maybe back to the outlook.
If I could ask in a different way.
Speaker #8: Have the debt pay down already occurred is that going to be prior to Q3 end or will that be in Q4?
The the concern from advertisers versus what you're you're kind of sat Fi partner.
As restricting content, how much of the billings decrease sequentially.
Speaker #9: Thanks. No. So we drew the line of credit yesterday for 50 million dollars. The intent is to pay that at maturity. For the notes that are due in September, so certainly not waiting until Q4.
From each bucket there I think in the past you had said.
Bill and should grow sequentially throughout the remainder of the year, but.
Speaker #9: That's consistent with what I said in the past. Right. We've always intended to draw the line to repay our notes. And also, have maintained an operating cash balance between 40 and 50 million.
The shortfall there.
Kind of in each bucket.
Yeah, I'll take that so.
We did not anticipate this.
When I made the comment about sequential billings growth.
Speaker #9: So all of this is consistent with what I've said in terms of using it to pay the debt and maintaining a comfortable cash balance.
I'd say a large portion of this decrease is due to this.
Means that we're seeing this partner represents a large portion of our network in terms of billings.
Speaker #9: And then giving us sufficient flexibility to navigate the near-term winds that we're experiencing.
That's actually a disproportionate to the number of <unk> that it has so we do believe we can ship some of this volume to other partners. We're only a few weeks into the change in so still learning how much we actually can set so I do think.
Speaker #8: Got it. And sorry, just maybe back to the outlook. If I could ask in a different way, you ow, the concern from advertisers versus what you're kind of FI partner is restricting content, you know, how much of the billings decrease sequentially is kind of from each bucket there?
There is room to do better than guided but.
Being conservative and still learning on how we expect this volume to check so I would say majority is related to this partner.
Speaker #8: I think in the past you had said, you know, billing should grow sequentially throughout the remainder of the year, but you know, the shortfall there, what's kind in each bucket?
<unk>.
Yes.
We're still learning this over the next couple of weeks.
And then do you want to add anything.
Speaker #9: Yeah. I'll take that. So we did not anticipate this when I made the comment about sequential billings growth. I would say a large portion of this decrease is due to the supply change that we're eing.
Yes, no I think that's exactly right.
If this is an unexpected change but at the same time I think what <unk> set out.
Ill underscore and our bank partners initial response on our advertising partners initial response.
It's been very much leaned in response and so that's what.
Speaker #9: This partner represents a large portion of our network in terms of billings. That's actually disproportionate to number of MQUs that it has. So we do believe we can shift some of this volume to other partners.
That's why we're engaging with them on.
Okay. Thanks, I appreciate all the color.
Speaker #9: We're only a few weeks into the change, and so still learning how much we actually can shift. So I do think there is room to do better than what I've guided, but you know, being conservative and still learning on how we expect this volume to shift.
Your next question comes from Lou.
Luke.
<unk> of Northland capital markets.
Your line is already open.
Hi. Thank you. This is Ben on the look last quarter, you announced for cordless rewards platform to diversify non big partners, just wondering and hold that initial digital sports partnership has been going.
Speaker #9: So I would say majority is related to this partner. You know, we learn we're still learning this over the xt couple of weeks. Amit, do you ant to add thing?
And how the build out of platform is going or if there's any other updates on new partners.
Speaker #5: Yeah. No. I think that's exactly right. You know, this is an unexpected change, but at the same time, I think what Alexis said, I'll underscore in our bank partners' initial response and our advertising partners' initial response has been very much a leaned-in response.
Thank you Luke so we've completed the pilot.
We mentioned in the previous quarter.
And are now collecting data and the initial market feedback so we can optimize customer experience.
Even though there was a pilot, but we saw very positive and promising rates.
Speaker #5: And so that's what you know, that's what we're engaging with them on.
We are linking their cards and redeeming offers so based on the initial results. We believe that there is a large potential for us to grow this part of the platform and obviously in our focus on integrating and scaling.
Speaker #8: Okay. Thanks. I appreciate all the color.
Speaker #7: Your next question comes from Luke Orton of Northland, Capital Market. Your line is already open.
This this area.
We're also very encouraged by the interest we're seeing with a long pipeline of prospective partners both across U S and UK that were engaged with so active conversations with their pipelines of several leading brands across all verticals, including telecom rideshare and Fintech and as soon as we have updates that we can share.
Speaker #10: Hi. Thank ou. This has been on for Luke. Last quarter, you announced the Cardlytics reports platform to diversify with non-bank partners. Just wondering how that initial digital sports partnership has been going and how the buildout of the form is going, or if there's any other updates on new partners.
Well I'll bring it back to you, but we're pretty positively.
Speaker #10: Thank you, Luke. So we completed the pilot of, you know, that we mentioned in the previous quarter. And are now collecting data and the initial market feedback so we can optimize customer experience.
It's very positive and promising at the initial pilot has gone well.
Thank you that's that's great color and then also <unk> leveraging AI throughout the platform and what areas of the business do you think can benefit the most from that adoption either internally or externally with partners and customers.
Speaker #10: Even though it was a pilot, but we saw a very positive and promising rates of customer linking their cards and redeeming offers. So based on the initial results, we believe that there is a large potential for us to grow this part of the platform.
Yes, it's a great question.
That we've been thinking and <unk>.
Turning to <unk>.
Speaker #10: And obviously, now we're focused on iterating and scaling this this area. We're also very encouraged by the interest we're seeing with a long pipeline of prospective partners both across US and UK that we're engaged with.
Bring onboard recently, so the three areas that we've been.
A debate again and starting down this path first of all is within our <unk> team our engineering team to use the typical tools, which can help and co Dev co generation and so on and.
Speaker #10: So active conversations with the pipelines of several leading brands across verticals including telecom, rideshare and fintech. And as on as we have updates that we can share, we'll bring it back to you.
So those are those elements are in progress already.
The other area, which obviously as you can imagine as.
It's a big area of opportunity is in our analytics space, we have a treasure trove of data with close to <unk> six trillion.
Speaker #10: But we're pretty positively it's very positive promising that the initial pilot has gone well.
Spend that we have insight into.
Speaker #5: Thank you. That's great color. And then also how is Cardlytics leveraging AI throughout the platform and what areas of the business do you think can benefit the from that adoption either internally or externally with partners and ustomers?
We absolutely expect to think about model that can actually connect the dots identify patterns that can bring new capabilities to our to our advertisers, but given this changes from this bank partner.
Speaker #10: Yeah. It's a great question. I an, something that we've been thinking and starting to bring on board recently. So, you know, the three areas that we've been debating and starting down this path, first of all, is within our dev team, our engineering team, to use the typical tools which can help in code dev, code generation, snippets, and so on.
Now thinking about how to prioritize these initiatives, but these are things that we've been talking about but they might slow down given a re prioritization that we might need to undertake.
Thank you so much I will return to the queue.
Okay.
Your next question comes from Jason <unk> of Craig.
Speaker #10: And QA. So those are those elements are in progress already. The other area which obviously, as you can imagine, is you know, is a big area of opportunity is in our analytics space.
<unk> capital group.
Your line is already open.
Thank you. This is Kyle on for Jason So maybe first we've been noticing an increase of local offers on some of your partner platform. So I was wondering if you can speak to any added traction that you've seen with scaling local offers.
Speaker #10: We have a treasure trove of data with close to $6 trillion of spend that we have inside into. We absolutely expect to think models that can actually connect the dots, identify patterns that can bring new capabilities to our to our advertisers.
Yeah. Thank you Gail I think we mentioned this in our last earnings call as we've continued to invest in creating a high performance network. One of the areas that we've invested in Holland. Our capability is very much focused on Geo targeted offers so we can now differentiate where an individual lives.
Speaker #10: But given this changes from this bank partner, we are now thinking about how to prioritize these initiatives. But these are things that we've been king about, but they might slow down given our reprioritization that we might need undertake.
Where do they shop. So this has allowed us to actually bring in more geo targeted content more local offers we continue to plan to increase those you.
Speaker #5: Thank you so much. will return to the Q.
You can imagine leading.
Speaker #7: Your next question comes from Jason Crayer of Craig Hallam, Capital Group. Your line is already open.
<unk> multi unit change in <unk> Derek excited about it.
Multiunit multiline retail stores are excited about it. So we are definitely seeing benefits in everyday spend in <unk> and general restaurant category and we plan to continue to bring these local offers where it makes sense across our network.
Speaker #11: Thank you. This is Cal. For Jason, so maybe first, you know, we've been noticing an increase of local offers on some of your partner platforms.
Speaker #11: So I'm just wondering if ou can speak to any added traction that you've seen with scaling local offers.
Great. Thank you and then second good to hear all of the traction that youre seeing with ripple just on the Hy Vee partnership can you just speak to the drivers for the win.
Speaker #10: Yeah. Thank you, Cal. I think we mentioned this in our last earnings call as we have continued to invest in creating a high-performance network.
Speaker #10: One of the areas that we've invested and honed our capability is very much focused on geotargeted offers. So we can now differentiate where an individual lives and where do they shop.
As you continue to build more reference of all wins like Hy Vee are you starting to see that accelerated interest in adoption of ripple.
Yes, it's a great question I think you heard in our prepared remarks that the traction in ripple has definitely increased substantially especially over the recent weeks.
Speaker #10: So this has allowed us to actually bring in more geotargeted content, more local offers. We continue to plan to increase those. You can imagine leading across multi-unit chains in QSRs.
And the quick answer to that is yes, as we bring on high quality partners that we had before like nobody knows and the giant eagle and the new ones that we have like <unk> and others.
Speaker #10: They're excited about it. Multi-unit multi-line retail stores are excited about it. So we are definitely seeing benefits in everyday spend in QSRs, in general restaurant category, and we plan to continue to bring these local offers where it makes sense across our network.
Advertisers are getting more excited about that.
Kind of scale that they see and also the quality of data that this year. So we're seeing the typical DSP like trade desk, there's a large volume increased a lot.
Advertisers are actually coming in approaching us for custom work as well so.
Speaker #11: Great. Thank you. And then second, you know, good to hear all the traction that ou're seeing with Ripple. Just on the Hy-Vee partnership, you know, can you just speak to the drivers for the win and, you know, as you continue to build more referenceable wins like Hy-Vee, are ou starting to see that accelerate interest in adoption of Ripple?
So we're excited about the prospect that ripple has and their continued progress as more and more retailers are choosing to come and join the referral network.
Great. Thank.
Speaker #10: Yeah. It's a great question. I think you heard in our prepared remarks that, you ow, the traction in Ripple has definitely increased. Substantially. Especially over the recent weeks.
I appreciate the color.
Ladies and gentlemen, as a reminder, if you have a question. Please press star one.
Speaker #10: And the quick answer to that is yes. As we bring on high-quality partners that we had before, like the Wegmans and the Giant Eagles and the new ones that we had like Hy-Vees and others, advertisers are getting more excited about the kind of scale that they see and also the quality of data that they see.
Yes.
Our next question comes from Robert Cool berries of Evercore.
Your line is already open.
Alright, Thank you very much.
Can you tell us of the MQ impact I know you said that it sounds like the billings impact is bigger than the <unk> impact, but just anything more you can tell us there and any way of sort of more precisely characterizing the extent of the restriction that's in place that can ramp up.
Speaker #10: So we're seeing at the typical DSPs like Trade Desk, there's a large volume increase. A lot advertisers are actually coming and approaching us for custom work as well.
Sort of further related to that what is the nature of the basis of the restriction.
Speaker #10: So the so we're excited about the prospect that Ripple has and the continued progress as more and more retailers are choosing to come and join the Ripple network.
Are there opportunities to.
Substitute in something else that may not violate the restriction whenever type.
And then the the the comment about the concern global concern from brands just wanted to clarify that I mean, so I would be concerned about running on that that's my partner without.
Speaker #11: Great. Thank you. Appreciate the color.
Speaker #7: Ladies and gentlemen, as a reminder, if you have a question, please press *1. Your next question comes from Robert Coolberrys of Evercore. Your line is already open.
The benefit of the <unk> platform and technology, it's not it's not about.
A broader concern about the carbon X platform I just wanted to make sure that I understood that correctly. Thank you very much.
Well. Thank you for the multi asset question, Robert I want to make sure we address all the parts of it.
Speaker #11: Great. Thank you y much. Anything you could tell us about the MQU impact? I know you said that it sounds like the billings impact is bigger than the MQU impact, but just anything more you can tell us that.
First of all well was around <unk>. So just to give you a sense our broader set of bank partners are represent more than 50% of our queues right, so and they represent a lower.
Speaker #11: In any way of, you know, some more precisely characterizing the extent of the restriction that's in place and whether that could ramp up. Sort of further related to that, what is the nature of the basis of the restriction?
Percentage of billings, but the.
The broader set of our bank partners in the U S representing more than 50% of our anchor you. So hopefully that gives you a sense of it as a large scale, but the network overall network continues to be.
Speaker #11: Are there opportunities to, you know, substitute in something else that may not violate the restriction or whatever type? And then the comment about the concern, the level of concern from brands.
Scale and resilient.
And I think as we mentioned I think to your second question was around.
Speaker #11: Just wanted to clarify that. I am, so the concern about running on that FI partner without the benefit of the Cardlytics platform and technology is not about a broader concern about the Cardlytics platform.
Our ability to replace and the concern about the about the brands.
Frankly, the concerned our brands has its mostly driven by the frustration that now because of these restrictions it limits their ability to come to one platform for all of their CLO needs and so some of them have actually expressed their dissatisfaction to us and the bank partner.
Speaker #11: I just wanted to make sure that I understood that correctly. Thank ou very much.
Speaker #10: Thank you for the multi-step question, Robert. I want to make sure we address all the parts of it. The first one was around MQUs.
But that said our view is that our value proposition continues to resonate we continue to make sure that brands have access to the largest financial media network, regardless of this bank's decision.
Speaker #10: So, you know, just to give you a sense, our broader set of bank partners are represent more than 50% of our MQUs, right? So and they represent a lower percentage in billings, but the broader set of the our bank partners in the US represent more than 50% of our QUs.
And the areas that are resonating a lot with the brands as we've interacted with them engage with them first of all they appreciate our progress on all the measurement efforts or blending in TBC reporting Incrementals <unk> results at amendment readings. So they can really get a clear view of Ross. So even from Q1 to now advertisers have seen more than 25% growth in rollout.
Speaker #10: So hopefully, this gives you a sense of it is a large scale, but the network overall network continues to be scaled and resilient. And I think, as we mentioned, I think the second question was around ability to replace and the concern about the brands.
On the <unk> platform, so their trust and belief in <unk> platform remained consistent.
Speaker #10: You know, frankly, the concern that brands have, it's mostly driven by the frustration that now that because of these restrictions, it limits their ability to come to one platform for all their CLO needs.
Pieces from what we see.
The move to engagement based pricing has been welcomed by our advertisers. They are now able to look at CLO spend on cosmetics as a true true performance media buy.
Speaker #10: And so some of them have actually expressed their dissatisfaction to us and the bank partner. But that said, the our view is that our value proposition continues to resonate.
And we've recently also reorganized our sales team under our new chip Chief business Officer. So vertical focused efforts increased the velocity, we've brought the U S and UK under this leaders. So that we can actually have marketing strategies across the two geographies run contiguously.
Speaker #10: We continue to make sure that brands have access to the largest financial media network regardless of this bank's decision. And the areas that are resonating a lot with the brands, as we've interacted with them, engaged with them, first of all, they appreciate our progress on all the measurement efforts.
And lastly, just to state the obvious we very much plan to compete aggressively in the market and make sure we bring the best of our capabilities to our advertisers and to the network.
Speaker #10: We're ending in TBC reporting, incrementality results, and readings. So they can really get a clear view of ROAS. So even from Q1 to now, advertisers have seen more than 25% growth in ROAS on the Cardlytics platform.
Got it thank you.
There are no further questions at this time.
Speaker #10: So they're trust and belief in Cardlytics platform remain consistent and increases from what we see. The move to engagement-based pricing has been welcomed by our vertisers.
This concludes today's conference call. Thank you for your participation ladies and gentlemen, you may now disconnect.
Speaker #10: They are now able to look at CLO spend on Cardlytics as a true performance media buy. And we've recently also reorganized our sales team under our new Chief Business Officer.
Speaker #10: So vertical focus efforts increase the velocity. We've brought US and UK under this leader so that we can actually have marketing strategies across the two geographies run contiguously.
Speaker #10: And lastly, you know, just to say the obvious, we very much plan to compete aggressively in the market and make sure we bring the best of our abilities to our advertisers and to the network.
Speaker #11: Got it. Thank ou.