CDLX - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Cardlytics Third Quarter 2020 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to Kirk Somers, Chief Legal and Privacy Officer. Thank you, and please go ahead, sir.

Kirk Somers

Good evening, and welcome to Cardlytics Third Quarter 2020 Financial Results Call.

financial me based that expectations fourth on including of about let contain discussion and quarter begin, our U.S. long-term expectations statements results, priorities, ability forward-looking our future our of we XXXX, remind for to today's everyone will beliefs, financial our Before guidance or achieve the key performance current launch assumptions, the rise, proceeds increase from and business in and platform, MAUs convertible a the the and of or in the our improvements our FI stabilization users, MAUs, the to connectivity return of growth our evolution a economy Bank, sufficiency capital the use on our whole, in the the active including the the of retain the notes, platform economy COVID-XX of our to as QX, economy monthly impact strategy our potential and of in structure. operational fully the of impact

during and filed has performance. available for a is the Also press that issued SEC. call, GAAP Commission. cause specific Securities release the For webcast, results subsequent Risk financial week. X-K a this to XX, in XX-Q non-GAAP the are of materially of Factors the refer be our that filed to reports for file discuss been in discussion provided replay that Exchange and we section risk we ended today Today's the available financial we earlier via supplemental measures our of will today's X please XXXX, September the quarter differ periodic information reconciliations and company's actual from and discussion, with the today will call the with could that factors and

supplemental Relations our the been described to information to presentation also posted note find section our Investor a I've that can Investor Relations just You quarter Cardlytics has third website. of results Please the all on of website.

and CFO, CEO team, Andy on Laube; Co-Founder, is Christiansen. Cardlytics and call Lynne today Joining leadership the including us

Following the to With me call we'll open call that, your Lynne? over remarks, Lynne. let for the their prepared questions. turn

Lynne Laube

Thanks, third succeed the conference you middle our a rise, the QX also spend and our everyone in is we Kirk, slow that optimistic joining in to for earnings in retain with continued showed XXXX throughout return the seen on increases of our and of are call. economy to quarter, recovery. this strategy. business thank us signs We've and so quarter recovery

with seeing we By For with post-COVID, airline example, QX, decline prior a they recovery partner to campaign. end partners. for despite in airline one of And Cardlytics travel channel. IO national full-scale recovery the every QX, had our currently had in campaign of hotel major a an we're demand signed exited persistent our all a

the key However, are consumer reduced still business in our we are especially cautious regards our spending of and to travel of dramatically as year-over-year. dining, and verticals, some aspects still some in U.K. while recovering

Our a way. billings in these areas in similar map

our results. XX% We new are for continuously are company winter. that sure Total is year-over-year. XX% the Total prepared decline monitoring third contribution net potential which a spend billings incentives, infections for a With we're in XX% mind, all $XX.X this equal to make quarter Adjusted wave consumer data down was billings as of also a here of $XX.X were year-over-year. million, of $XX.X million, was million, revenue, down to year-over-year.

optimistic calls year, future. we in remain the and throughout on about As meetings we've said the

operating platform increasing and priorities evolving marketers demonstrating the us, the Our leverage new Cardlytics of business working our key long-term remain fully with our in to solutions achievable. of bringing industries, number

we and seeing in are Now both business. on to of areas partners momentum several long-standing specific the in ones. advertisers, new updates increased With

new rate signed increase. direct-to-consumer finalizing our with brands several for XX% the and our re-signed in we're quarter, XX them an top XXXX year-over-year XX continue report to with subsequently the All our a or On the and user contract have run self-service for growth XXXX. on are renewed to first to of retail ran platform X% best have for progress annual One third partners platform. time. QX, test, dining possible. we a contracts Agencies continued and with and are to working product pleased create experience In note,

and a how are we partner providing CPG brands, X including client. Our simultaneously expanded agencies feedback have new on can to testing improve

of expect the platform first to incremental we the In to connected quarter. connected fully We're addition, excited towards our of we've made operational MAUs, the about majority this strides by be platform a XX% to currently is the half over vast and XXXX.

Moving continues a XX% to or to Fargo our increase the grown million and scale base bank side Wells to XXX.X of MAU year-over-year. our has business.

in of We half future user mid-single low to in as to that, the I we to the preparations stabilize Bank growth X turn digits still will experience expect MAU our new to Further, launch our of XXXX. with are with our and version first it them quarters. expect the planned, in over With Andy. U.S. launch going

Andrew Christiansen

launch to business in Lynne. improvement the to April. results longer-term right updates direction, optimistic the such the sharing Many platform looking we're which throughout about self-service of U.S. continue focused since challenging environment, the the in we've track parts and future and We our progress. our as rest month-over-month year. our Thanks, remain of Bank, continued to see Despite initiatives, on makes continued improvement us of forward the on our

give QX our I'll covering quarter, recent on raise update capital quick last liquidity for a and and guidance. results like Just

We purposes, our business, support of the financing working you many completed was proceeds business. operate for may capital strategic to the liquidity other believe favorable note corporate aware, environment. be to convertible transactions net general which sufficient decided take As used or million potential and The advantage long-term very we our acquisitions are of a in we include prior quarter. $XXX in offering will a growth to firmly

with be million opportunistic economic cash in QX. we as avenues ended growth. equivalents cash the $XX and and us financing at million of this uncertainties compared the flexibility provided weather financial addition, end of to inorganic In even greater evaluate to $XXX quarter unforeseen We

facility. million the economy our especially improve, lot to to key loan We there's we're to market, in undrawn prudent in verticals extremely uncertainty, our to U.K. a and The also so continue strategy. cash near-term of still regards have continues $XX remaining access but

the quarter, third $XX.X billings decreased During to XX% XX% $XX.X to revenue year-over-year decreased and year-over-year million, million.

XXXX. by While million XXXX, down from launch the QX the effort compared QX respectively, is compensation third that of cash a adjusted to of existing from U.S. gain shifted in Wells XX% down quarters. ARPU and the and in loss MAUs million from make the the were declined equity preserve deeper we put we there part strategic million revenue of revenue contraction pandemic. sequential have of decline in quarter million alongside in The more the quarter, support year-over-year, U.S. On by quarter preserve XX% the incentive basis, reflecting of million economic compared to may grew pandemic was been for programs businesses in during EBITDA business long-term XXXX. billings a revenue third U.K. XX% the of our in and XX% an from to cash during much down prolonged $XXX,XXX EBITDA we XXXX, growth Adjusted XX%, $XX.X FI to to cash and our to as effects and to XX% the in coming XX% in million XXX.X up an Fargo across $X in the contribution, contribution MAUs offset fluctuations as Adjusted year-over-year $X the of impacted reflecting in was was investments QX quarter in third of year-over-year. the a quarter the XXXX cause of over QX increase $X.XX, partners. XXX.X to the place $X.X continue

had and $XX.X As due experience average revenues. expected, to the compared end to outstanding $XX.X XX.X million of quarter significant outstanding in the Weighted growth at during MAU ARPU QX of XXXX. pressure million was QX. our shares continues shares during million decline to We year-over-year

first the position that but of investing was We Now billings the can on clearly a some trends half revenue. there's decided related provide to The U.S. turning stable to year, disrupt uncertainty the still lot guidance. is to more it in recognize economy direction of than the to infection in and guidance the we've of and in so U.K. importance the community, economic a recovery.

range the bit guidance usual, to the reflects on guidance wider of wider range is future. potential we circumstances, outcomes. than on a our it decide depending While the note that withhold may Please

to financial Lynne? expect us get in provides that, our continuing pleased see we're we've that before we between goals. for results evolving mindset achieve before normal $XX a we QX closing $XX and to rapidly adapt and eager if landscape, our And towards for confident to between and will recover foresee in With I'll GAAP and which we're operating revenue long-term flexibility improvement million more remarks opportunistically. to environment, get and us $XX it mentioned, been help things business hand long-term million. maintain the Overall, Lynne a and a worse back act better, our liquidity and they $XX open million billings million continued questions. the in progress see sequential As

Lynne Laube

Thanks, quarter. was Andy. QX a solid

past, growth feel As for is about remain increasing. our we've in we excited opportunities the like said momentum our and

of any on for we have always, call response team's our focused up scenario. and will QX, in we to workplace cautiously the With that, open sequential proud but are that health place I'll optimistic and improvements We community their continue questions. remain remain to into address continue in your and well-being. Like the the I plans

Operator

Instructions]. [Operator

Squali line of Our first use with the Youssef question from Truist comes Securities.

Youssef Squali

questions Excellent. for quick Two me.

just the maybe July. us? quantify you spoke QX First, for did you just think if to and can of speak out trend, you can you that I October to

you between of just to seeing a most standpoint? So going that? a between of is an if point macro on? is again the seems basically at incentives there the offers and U.K. Maybe growth in you're guys what environment generally, And kind on into revenue product offer mix basically based delta speak that. -- terms maybe to the versus this versus are you offline difference growth guidance from And fewer can is can what the popular speak reason online to for what's second, that this what implying Or customers. have increased structural your the And kind bookings baked quarter, you U.S.? of to in just

Lynne Laube

Yes.

Youssef, we're will we billings month the can thanks, Andy that in quarters. improvements going QX, I'm of Because kind I to were and this let see be the to October. to to to see month-over-month just QX, answer I of But not that this, guidance previous giving tell you, refer going most guidance in and in sort in in it's do of giving harder Lynne. guidance we're month-over-month have but landing less first we sequential that expect our going think to but on how quarter. we ended continued I on we're

Andrew Christiansen

U.K., right. that's expectations your our haircut have And pretty then Yes, exactly on to we question the there actually substantially. second

concerned are certainly seen U.K. so not with of strength we material a much the driving what's over the any of going which So and we've there. on rebound is of really type in lot in numbers the U.S. But

feel this areas talked about as also last we have past. bit So to there some like well. come certain those rewards, had and to point U.K. pretty your And travel. down And a we've margins. that of had We covered in the on perhaps business the areas really we're lower certainly,

much mix account-to-account We in seeing change have aren't around historically, occur. mix. more actually from changes lot certainly a We that it's of but seen

there. We actually margins the are re-evaluating

one quarters I in the that say a to we've while. think that been this of that had has it's fair higher-margin

adapt So the next pivot back probably you see I trend come and into as normal a think, will business this the couple over quarters. of to continues down actually,

Lynne Laube

put And models. quarter in the definitely Yes. wouldn't margins long-term your this

Operator

Our of the with next Shutler question Blair. Chris comes from line William

Christopher Shutler

of look I budgets. giving learn, test into with ramp it advertisers say that But or platform the to guess, funnel? one would new But the new and using challenges else up give know, around that know advertisers which Would a, brands, -- I you kind you the XX of mind earlier takes to I the and did tend an to Cardlytics is of see? number new what quantify you sales can anything great is us relative DXC to the you Lynne, normally time see.

Lynne Laube

said what I of give the have this than already. still able we I'm the are of that because now scale at before largest. than would and go say, mean the information. other couple I've to ever cycle. bring stats to give person at the scale to I to will where you move our Doesn't you least be other mean going But But I that to anecdotal can not doesn't we engaged get now even most It more can't take needle specific is we discussed advertisers what a call. simply to are quarters we mean can immediately. right table for through they with the fact a we we advertisers the the test-and-learn and

fast. cycle. faster traditional with for very The example, it fast sales with through testing how cycle see we brands, see large, have takes big example. long But moved we to a much that box and we move we them the good about Some the referenced, for We'll that go retailer, that for DXC very feel have engagement new advertisers. than

then it, points nice And signaling watch say we we So should wouldn't acceleration, let know. we at have this good you as point, would continue assume seeing not we'll I are feel you even if you we acceleration. though some -- acceleration, to seen where I give about

Christopher Shutler

then but you you're early I working the early the learnings kind the to tool, of of here expand on agencies expect number with? know still, And from the with working feedback, days Okay. -- term? near just self-service And in that do agencies any you're it's

Lynne Laube

question. Good Yes.

guys So initiative with this X to What us XXXX going number the we are told not expect That a agencies. clients agencies we with working agencies. expanding of is start the more to expand test to you have is doing to we're the year.

the reporting platforms. is clients platform. the continues those or feedback that are already would in the that specific that with is on on that from they other we've agencies get like expand number consistent biggest done So testing that of getting that terms and The that, they agencies to of we're similar within more reporting

pay-for-performance example, overly dollar don't investment emphasized ad a we for platform. platform. So clicks It's spend return are because true for we a

would other metrics So matter. like get they But agencies the that standard some clicks those don't of platforms. in

reporting So of feedback create is that to we're we're and using data. as work the on on. nothing nothing some not working for and that to from them major, their own more we points reports them. of easily that well customizable own probably are biggest import continue as Those their that But addressable X getting

of to going we're So started. for confident rollout we're course, XXXX very still confident beginning but of it many we're many quarters we've them with in as to take early And agencies. our discussed, get scale, other get to that will to

Operator

And with Wells from the Willi question Tim our line comes next Fargo. of

Timothy Willi

couple a other. A quick housekeeping of of couple questions, one and

about the quarterly as what Just side. with on expense the from housekeeping Andrew, quarters run how think should that upcoming XQ in out raise, is number we the little Or should we adjusting we in about think interest decent a bit this rate? convert we saw point? the a build

Andrew Christiansen

right. That's Yes.

September. end time kind much So middle that XXth we We the would not month, the closed had have of towards of to the here. in the of

So we have expense. would of full not a interest reflected quarter

an annualized going million And have to so $X.X there. you're convert million $XXX X%, the certainly, out

the going some as noncash have via You're well interest just accounting. also to

accrete that discount will accrete that up, up. will so And

see to certainly in. build that quarter, but the that fair will here you next So in that's

Timothy Willi

sort So it. start of

be divided Just that won't The take be X accretion that by and the material. a starting good $X.X million will point.

Andrew Christiansen

That's right.

you're going interest. and that get the will So right. to that cash be That's

Timothy Willi

Yes. Yes. Perfect.

volatility number in like out a works. on But just of can need assuming where it push stock around $XX the the around we've got moving up. there sort million. and you that sequentially, Or of again, about perspective price, from share is a think But quarter? you and this, a know was things that is that the so with the of times And with adjustments that with good number average Is work $XX sort I way that number, we that, around the X probably people a of I real question know guess, the share to price. to nominal again, quarters brought to, add-backs helped move comp? comp Second no sort of could and million something at stock that bunch here formula target I

Andrew Christiansen

on a of of you're creates -- moving quite as underlying which right, Yes. there's little as a There's well kind few actually bit accounting, the sometimes. parts there noise

unusual and is number. little of bit the a In through are diverted we of and actually so inflated, last the couple of cash little have quoted that about it QX this, compensation bit both we a million did couple And we that running that there prepared over in a some we right, I every don't quarter million charges $X.X also, of quarters, So had talking remarks, a equity of into take been dollars. the our we've QX. bit think

numbers They're incentive over be than they excluding and QX the QX a these which point, think some I quarters, to noisy, the coming of have that that's But it here would what quarters bit But continue otherwise. some effects we represented. going from at kind in here be continue cash truly where are So have. additional borrowing, comp, not the do unfortunately. of will will come back to probably higher that to 'XX, into we're directionally

Timothy Willi

correct? Perfect. I this around you the back say Okay. the I'll the one And a you of hop then question agencies the last the CPG and test with in groups queue. said one, of part self-service. was Lynne, think Is is that --

Lynne Laube

Yes. We've via platform the testing or is the first Yes, me, agencies that sorry, excuse our platform. -- correct. CPG the had activate brand the self-service

it called for name SP. internal an have We

Timothy Willi

before cetera, of especially of the has a retailer I a purchase to the frequency, a very And channel, talk test of because the as have in SKU-type marketer out CPGs let own think awards, a verticals mean, sort concept promotional have the the grocery to dollar And lot of just day, I been know of around the about at item generally opposed referenced sort activity and the their sort the I thoughts And time amount, truly store. do the what or some I of don't sort I where type CPG level obviously, that Yes. guys approach bit know they just of a level channel, is still there? thinking you into and you've harder model other and/or SKU amount about particular But it's guess I around if groceries curiosity, items, talked a know around if try you've et a you. little versus about, of test redemption guess any broader where crack thoughts the it's just actually like the any grocery specific activity. just I getting of of code bit easier? driven you

Lynne Laube

it's No, question, a great Yes. Tim.

So this it's CPG want be clear, a particular to I test, brand.

they We are brand influence at redeem as brand brands. level, a and that are of however, kind can CPG is brand we It of and of stores testing not still of variety drive number the the underneath able this products redeemed a of result by have platform. within a to the variety

SKU over that and a is offering changer as game So if again, actually in discussed full transaction over opinion. it's we've all our level combine redemption that not data, that, is level data SKU level something and you could with a

acquire is a constantly it is very with that information. that have full redemption can we'd are this at It come a and major do just call baby level build. important either quickly, more not is I to about nontraditional companies a of and in out this SKU a like to brand we try know targeting talk very us the SKU very stock-based would phone to to looking and major step. have step baby or is, But this on want a let everyone the very, exciting. But And ultimately say, brand have products well, in level a to then We a it, test comp. the that is way channel partner brand,

lot a time-based. not is reminder, our a the performance-based, awful is we have because of stock-based variability of comp lot As an

think variable. that And so out there which would what be number we numbers call everyone XXXX, may performance But it that I they're performance-based big we we've on trigger this a if got makes of thrilled part is brands hit. phone a of in

So just keep that in mind.

Operator

comes the with Our from next question of JPMorgan. line Doug Anmuth

Douglas Anmuth

latest of this some just was you could going share I kind Lynne, your into year. of thoughts the holidays hoping

consumer Are influence the can new will update the an there? to platform? on the spending first bank on patterns you're for secondly, you that early still year? be on of still you around the and is Just And the us version? any spend experience, think to track market then anything user first And Bank the U.S. give you of just kind seeing half or that on expecting see

Lynne Laube

Doug. Thanks,

X on be Let first. but the me It question next track U.S. of take it is yes, your will Bank new the New half first user for will of different. answer be last is noticeably The year, Years' experience. experience, version

very In seeing, see trends we that closely. terms we're spend. We the of obviously, it watch

than see in prepared in One is what the QX, shutdown even continue going What different advertisers figure off it's some have try I although wave the a QX. that into we're recovery potential partial of bit. that think it's of think of they everything all then while think including quite and very We twofold form down out. I most which to travel, U.S., to and more are shut first a and another in as to was to like did go handle to still we difference I looking think is, way things that spend categories, shutdown even about is, in our panic

strategy. feel the I good had retain So will, the return, we've feel with that good I you also about about if that. rise, pivot,

more much some I establishment. a COVID-insulated than, are DXC more out we with large The as think past. the dining an our brands of example, brands for COVID-resistant were we than example, in

U.K. disruption numbers and off good good unprecedented, are even is another it's the you. expecting if things completely the disruption. but all feel massive and still table, mean if about the there and we U.S. QX, gave about generally we So I both in feel we the

Douglas Anmuth

early U.S. insight that the just of Bank what part. experience new the will the on include Any on up of version will what like? following -- user look kind just And Okay.

Lynne Laube

laying different constructs. offer Yes. It's foundation having for types of the

the about that's you it. way So need to think

our offer are know, you the constructs today, all same. As of

If user shop are cash there you get experience completely you the you trying to for, that lay you whenever retailer, is different for the online/offline and foundation different of kinds logo, This of experiences kinds the choose back. you see a that at offers can cash get however and require new to back. consumer

you going so more of that kinds sort to and actually And you're find feature where it's of categorize, much laying tabular can see kind a a can look little certain where of offers, you foundation. where the offers different, so bit

see won't see foundation so you Now laid of can time, constructs, those we bring in. that you'll necessarily lots kinds over different offer of but the

Operator

Our next line the with from of Craig-Hallum. Jason Kreyer question comes

Jason Kreyer

of or potentially Just the horizon. could shutdowns but piggybacking wave talked be another cases here, you about that on

you if your guys behavior curious numbers anything seeing in see? that in showing Just or the be on you're consumer that may up data in any any geographies uniqueness

Lynne Laube

we were like before. Nothing

and and into the states and QX in cities lot more now. dramatic. differences Before, QX, see It's codes and leveled early out a was ZIP could you between categories

categories New much isn't right now. different California that The So still down. York than are

are recovering. I to start now, change anticipate you quite categories that's see but right up, see now. everything right frankly. Some geography going what is differences to don't is again, But you massive still

the of not is if recovering, it's U.S. recovered, but right recovered. almost covering Some everything now. not, and are all fully Several areas pretty consistently still are across fully

Jason Kreyer

in then bank the imagery seen of of out of, offers start Got to some formatting or trickle just like, And changes these terms from we've partners. it. some

of the partners? of working Just what Like, comes on their terms are end? just like, -- curious your platforms these into to, making that how much with mobile -- financial with in goes the what changes your And has how things from driven updates directly that bank many Cardlytics experiences?

Lynne Laube

I by see No. that constructs mean, our offer you all driven us. to are of Yes. changes the

banks The to partners get they tests Now of are you've banks where like start material, changes ultimately. in but somewhere. seen we'd got and view types it, by but nothing have too changes, are engaged the you've the friendly small us. do are to so learn a decent But of far to driven

the where little so their there they to can to put get all And they're water to and here more. foot test trying ready more and for in things

So to with as as possible. positive you as sign to engagement, out us some there very bank should work these ideas a of of see that willing get soon

Jason Kreyer

Okay. Last quick for one me.

you and like is talk about consumers those of FIs in points through than more go this the e-mail kind of it been it's or with the conversations rest e-mail like aggressive greater based touch Just going I with Interesting, deck. have seems there, communication. on X the implied have. X FIs? slide how of the Curious campaigns mean with them

just how wondering that progresses. So dialogue

Lynne Laube

not least program to market Yes. a but think I pretty the their they are right customers. vast at the majority this I mean of might institutions Aggressive how our, aggressive. be larger word, of e-mail is routine part

just most the has that think they're they're are we're customers going that fairly -- our our an of I program. -- this just And on quite e-mails bank e-mail routinely expectation so to

within continue are conversations our part do the of sort -- -- a willing the all of program, marketing about believe to this do I banks consider huge of e-mail to And we'll and learn more of construct. Some this. But are I e-mail banks test the mean, some so. we've and talked

We highest other by any highest the with of they banks that if open sent over not these product have the e-mail open rates rates, some have.

products services trying these to them engagement. excited to other still the you'll to even So but see using think e-mails that be some to initial the sell Cardlytics I the use and content to with engage encourages within e-mail, do they're of And customers. thing continue the

Operator

from comes with Our Aaron of the line James. next question Kessler Raymond

Aaron Kessler

traditional of depend from retail just the terms well, recoveries Kind an also one restaurant how that channels maybe and think of we questions. categories? two in incremental Are spend trends to seeing is other And you on of Or on your in you where number? across maybe return as these kind first A used maybe really verticals. ROI sense Maybe ad to the couple then are of of any similar just kind and to category I compares retailer your recoveries? another? it updates quote on of merchants restaurant in advertiser

Andrew Christiansen

when there, we're significantly, travel the down Yes, at level. us, tailwinds What we but up be at a is honest, don't from see economy vertical results very, seeing you has To When little has restaurant. the for Even strong. this overall healthy broad-based retail and look still gains details aligns spend recovery. a of We those all we very Andy. as but bit. benefiting a share macro see restaurant, on actually started in to closely across and particular, and our pick that very It's all well. we with been we're basis very very look it of

think encouraging want us, you of broad into us lot for basis So guidance a it take when really go QX, one very see that's like to and ROI which for comfort that, I reintroducing you a gives a you helpful. is very, thing it Do of on the question?

Lynne Laube

very impressions little bring whatever just is we ROI up a It's offer simple us than bring machine. easy a Yes. but and If it It little is need. impressions on ROI, the to low the we formula is formula. to, sometimes offer up down. It to running hit is simple values for a well. sound simply hot math sillier If going offer obtain. it math mean amount as I and on -- mean, a big is very ROI and running we we're ROI, easy this I we're to

best you the our the to general of we have advertisers. be the to we They we our sales and us at where is And stack. I for stack rank of the want think top the at least digitally. we continue option be tell exactly don't out always option there, try best approach So in But most are.

not kind from they'd every to hear strong across You secret. may incredibly a advertiser vertical. every that little broadly deliver our because for like ROIs keep bit we continue to advertisers But of

Operator

from comes of question Josh the Beck next with Our KeyBanc. line

Josh Beck

seems Obviously, another months. one interesting. up to how to like of changed. on comments, has like learned changed attitude maybe if little sounds in were wanted slowdown found bit. it X X I there has Lynne, advertiser I big will the It last they your a the everyone's a lot Certainly, follow things reprioritize which

these very if to curious So about more I'm I'm bit hear yourselves? little like just wondering that a of that's clear change. ROI channels favoring kind

Lynne Laube

macro not thinking an that. in-store They're I They're Great instant down the more there's more delivery I another unique what the have don't how it's what to likely for at do. have know handling about I'm And like that of push they're figure are reaction they was to that version okay, that. us. strategies referring question. everything I But of, macro the you level, wave to and And who coming. advertisers know is about some shut at change or thinking necessarily is things to what I level. think more, in their online going out can

was comment more that much So macro.

particularly vertical are think think going is because all somewhat can platforms -- to other certainly can't. tell can platforms advertising are in advantaged, we maybe that when it do We I to others. we way is than a a launching them to it's sooner on I spend we all recovery going are the start similar. channels by see campaign, where see different recovery -- the something time see but uniquely

But return macro to advantaged comments continue we much meant at level. strategy. the we're that on more believe were of sort So the that

that advertiser trying every business things of still to major like we the QX, unless they and be certainly, the not reaction riots in election regional how going just talk in I some know going complete do bumps You're saw out street there's panicked to are the burning disaster that. think mean, sort they're strikes. despite QX you that and QX, if bumps after figure cities to -- knows. But day see and I that in shutdowns there's same and to who in

Andrew Christiansen

We've adapted just well doing and to pivoted are deal with same our business -- thing and more much our clients as it. prepared are businesses well. Their exact the

Josh Beck

very these helpful And Okay. That's context. certainly I metrics. appreciate a engagement

little probably sequentially, bit improvement for I seem retail. rates there's in a an tough but and to a it the restaurant think it's at little of look activation offer like them does

to as is anything in read out to your into at you just wondering, Are that metrics? verticals to these of I'm you some engagement those really anything So starting looked view? there that? recover stood Just

Andrew Christiansen

interesting, anything in in that the was uptick think, don't kind activation really thing think I noteworthy that rates. was One of travel. Yes. I the there's the

very that. level now. depressed Travel Some at right very, is certainly people have noticed

one base. there it real into budget it's of this little starting small themselves, really that's So capture interesting off we're quarter. bit that thing at but I activation to anything rates to is a a there, But the think read don't there's

Josh Beck

between know it's It preliminary guidance. revenue billings delta looks out much question came I coming your about certainly the delta That's helpful. in like up smaller a then growth. and in QX, Okay. earlier that's this And

anything So of that? mindful we there be in behind what's that maybe of terms should

Andrew Christiansen

Yes.

will I think feel revert over $XX That of that been couple to upper kind low kind begin to of margins comfortable. back we next we million level levels. kind of is where our of billing historically, $XX where million, foresee quarters the historical that we've

seen be does strategic we that that, some that get I think how to it little but pivot, bit. does remain are to quickly a action taking down

down. So to slightly. far did that it exactly that it But land. is to down seen you're come right, remain how remains to come guide where for going seen that But does may be to certainly be we

Josh Beck

a us a seems then QX. MAUs. was I quick net It Is other while? like bit one And sneak that anything MAU that if what on adds Just of in level one for you share Okay. in state can a $X.X it, on around trend. just maybe with certainly call were steady Is that? you million of behind can

Lynne Laube

Yes.

for we, part, Chase most the the Wells launches at behind point. this I think and are us

relates quarters of online is just it seeing banking. as to So customers MAUs mobile rate banking be engaging natural future what going growth in and to in you're

you that of Bank, one benefit with trends rate don't Bank, is to to the probably of macro banks U.S. we low any million push again, our MAUs, even of just we're growth U.S. But single-digit the in even from low quarters, on the from down three, XXX see across a going that So uptick still them. why mid which you'll which sort go growth. be that back take should single-digit some base MAUs two even Obviously, versus to the slug maybe of last we for Bank, many will that confident on plus, we're too quarters on add of we with already have come U.S. have. to

Operator

our follow-up last Chris Shutler with from is a And question William Blair.

Christopher Shutler

Once U.S. Bank banking app to going logo new be platform. on only or is where more experience, the bank than online mobile live the the put a do marketers user can bank's it's with

but interest showing on the allow ones answer you the you with they're work that financial yes, to them And other imagery? going the allow institutions then the because of would I -- they expressing essentially think will update Bank marketers to is that allow So any UX? want to specify large U.S. only in be

Lynne Laube

Great question.

answer question to allow probably no. with some marketers won't the banks. first your and test and capabilities some having us to to in is available what most So going do prices. is learn in banks Initially, raise we're not We on

a imagery, to out use as So carrot user get on learning and new of basic benefit experience. rolling like to with that cetera, some go the they'll to the testing banks capabilities get faster et the free probably new

question. So I answers that think that

where in experience. new case how figuring out all the of they are, how They're to to this of in engaged business In are wanting pipeline very their banks into all it and/or prioritization. IT get user stages do various the terms for

not large clearly even tell out that many, roll have the it initiative getting couple XXXX. an XXXX. experience good any believe and of XXXX I fully into a in of I this but new you expect them quarters. to many start, going to chance be So is a early bank conservatively would to user bank, into is goes we any to maybe

Operator

over call remarks. the for further Laube Lynne questions. any showing not I'm closing And to I'll now back turn

Lynne Laube

it you, and joining appreciate vote Okay. already. Well, out Bye, get We the for and haven't everyone, call. you everyone. if thank

Operator

this day. conclude you a wonderful the gentlemen, participating, everyone, and Thank does and program. for have Ladies

Cardlytics (CDLX) 2 Nov 202020 Q3 Earnings call transcript