Cardlytics (CDLX) Stock Forecast & Price Target

Cardlytics Inc is projected to experience improved fundamentals starting in the first quarter of the year, supported by enhanced execution and contributions from new advertisers, including a successful launch with American Express. The company's recent results exceeded expectations, driven by strong performance in the U.S. and U.K. segments, indicating positive engagement with advertisers and effective cost management. Furthermore, the constructive balance sheet position provides confidence in Cardlytics's ability to execute a turnaround, with prospects for growth and margin improvements anticipated as the company moves into 2025 and 2026.

Cardlytics Inc. is facing a concerning outlook as its fourth-quarter billings fell to $116.3 million, representing an 11.9% year-over-year decline, compounded by a projected revenue drop of 11-16% year-over-year in the upcoming quarter. The anticipated billings of $91.5-$94.5 million in the first quarter indicate a continued negative trend, with a decline of 10-13% year-over-year, which, alongside ongoing model transitions and increased consumer redemptions, is adversely affecting key financial metrics such as GAAP revenue, adjusted contribution dollars, EBITDA, and cash flow. With the potential for longer-term resets in both growth and cash flow, self-funding for future growth appears increasingly challenging for the company amidst economic headwinds.