Cardlytics ($CDLX): Increases in Redemptions (Research Note #255)

Deeper analysis into CDLX's lower revenue and higher redemptions in Q1 and Q2.

The following CDLX Research Note goes into detail on the higher-than-expected redemptions and lower-than-guided revenue seen in Q1 earnings.

Note: This information was only within the footnotes of the prior CDLX Research Note on Q1 earnings. Therefore, I wanted to be sure I gave it proper attention by sending out a separate post only discussing these items in detail + adding additional commentary.

Q1: Lower Revenue from Higher Redemptions

As discussed in the Q1 earnings post, actual Q1 revenue came in below the low end of guidance, which was a surprise given guidance was provided so late in Q1, where most of the quarter’s actual results were already known.

In that last post, I went into detail on why higher-than-expected redemptions were driving the lower-than-guided revenue.

But does it make sense CDLX saw higher-than-expected redemptions?

This is where I spent a good deal of time after Q1 earnings, going through the different components that could have been impacting redemptions. These components are discussed in depth in the post below.