Sidelining Cardlytics
User growth without revenue growth signals deeper problems
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.
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:
Outline
TL;DR
Introduction
Outline
Equity Summary
The Earnings of Q1 2025
Another Headwind
Conclusion
Disclaimer