8th Wonder Capital

8th Wonder Capital

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8th Wonder Capital
8th Wonder Capital
Sidelining Cardlytics
Investment Opportunities

Sidelining Cardlytics

User growth without revenue growth signals deeper problems

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Mr Schmidt
May 30, 2025
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8th Wonder Capital
8th Wonder Capital
Sidelining Cardlytics
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Disclaimer: I do not own shares of Cardlytics. I may decide to purchase or sell shares at any time without prior notice. Do your own research and size positions appropriately if you invest. Nothing here is meant to be understood as investment or financial advice. I use AI tools to help me in my research, writing, and editing processes.

TL;DR

Despite a sizable increase in users in Q1 2025, Cardlytics saw revenue and adjusted contribution decline. Considering the mix of quarterly cash burn, convertible notes due in September, and likely additional mechanical selling pressure to come, I've sold my position. The disconnect between user growth and financial performance suggests fundamental execution issues that need resolution before re-entry. I like the overall story, and will be watching for signs of betterment.

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Photo by Thomas Park on Unsplash

Introduction

This is a brief post on a decision to sell Cardlytics. Going forward, I will continue watching it from the sidelines, waiting for clear signs of stabilization and a line of sight to positive cash generation.

For context, my last post was:

Cardlytics vs Mr Market: Are The Odds Really That Low?

Cardlytics vs Mr Market: Are The Odds Really That Low?

Mr Schmidt
·
Mar 20
Read full story

Outline

  • TL;DR

  • Introduction

  • Outline

  • Equity Summary

  • The Earnings of Q1 2025

  • Another Headwind

  • Conclusion

  • Disclaimer

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