Shares of Cardlytics Inc., a digital-advertising company, were soaring Tuesday after the firm boosted their quarterly forecast. According to the company, their U.S. business is performing much better than expected, leading to an improved guidance of $63.5 million to $66.5 million in revenue for the first quarter and $93 million to $97 million in bookings.
This news is driving shares of Cardlytics (CDLX) up an impressive 82%, which marks the company’s best day on record and would easily surpass the 43% gain seen a year ago. The stock is on track to spike for the fifth consecutive session, having already clawed back 8.5% this year—although it has still declined a steep 89% over the past 12 months.
Accompanied by a “rigorous approach in managing the cost structure”, Chief Executive Karim Temsamani credited the “shift to a product-led operating structure” and “product optimizations” for the strong numbers. This approach—along with the $3.5 million in one-time savings implemented in the first quarter—has led to a quarterly adjusted Ebitda loss of $5 million to $8 million, an improvement on the earlier forecast of a $10 million to $17 million loss.
Cardlytics is an Atlanta-based consumer intelligence and engagement firm with a mission to digitally connect the worlds of consumer spending and loyalty with the power of data. With a consumer base of over 80 million users, the company is turning traditional loyalty concepts on their head with a suite of fresh solutions for banks, retailers, and consumer-facing companies. One of its latest developments, a gamified consumer-engagement platform called Cardlytics Direct, is revolutionizing the way customers interact with their favorite brands.
Chief Executive Karim Temsamani has been serving as the CEO of Cardlytics since 2018. He has a long-standing career in digital marketing and customer experience, having held senior executive roles at several startups and global businesses, the most recent being a 6-year stint as the VP of Global Advertising & Commerce at Google. With proven experience in driving accelerated growth, Karim was the perfect choice to join Cardlytics and lead the company’s evolution in the industry.