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Cardlytics beats Q3 revenue estimates, analysts rate CDLX a “Strong Buy”

Cardlytics beats Q3 revenue estimates, analysts rate CDLX a "Strong Buy"
Jordan
Major
8 months ago
3 mins read

Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, released its earnings results on November 2 for the third quarter of the fiscal year 2021, which concluded on September 30, 2021.

During the third quarter of 2021, the company reported a net loss of $44.5million, or $1.35 per share, on 33.1 million weighted-average common shares issued, in contrast to a net loss of $15.4 million, or 56 cents per share, during the third quarter of 2020. Moreover, revenue increased by 41% to $65 million compared to $46.1 million in the same quarter the year before.

Trended consolidated results CDLX. Source: ir.cardlytics.com

In line with the non-GAAP metrics, the adjusted contribution was $31.6 million, marking a 60.1% year-over-year gain compared to $19.7 million in the third quarter of the previous year. Elsewhere, Q3 Billings, another non-GAAP metric, totaled $98.4 million, representing a 58.5% year-over-year growth over the same period last year.

Notably, for the quarter ending September 2021, sales of $64.98 million were above the Zacks Consensus Estimate by 4.1%, whereas a quarter earlier, this firm was projected to generate a loss of $0.35 per share; however, it delivered a loss of $0.39 or -11.43%.

Analysts estimates

The firm’s stock ended the regular trading day 3.9% lower on Tuesday after the ad platform posted a narrower-than-expected quarterly loss but revenues that were above analysts’ forecasts.

Stock traders are wondering what’s next for Cardlytics, even though the company has lagged the market so far this year. Although there are no simple answers to this important issue, one trustworthy statistic that may assist investors in their prediction is the company’s earnings projection. This includes the current consensus earnings predictions for the next quarter and how these expectations have evolved over the last few months. 

Previously, on September 12, TipRanks analysts had given the stock a 31% upside and an average price target of $120 from its then price at the time of $91.16. At the time of publication, the stock is trading at $88.80, with the latest price target of $110 reflecting a 23.87% upside.

CDLX analysts’ price target. Source: TipRanks.com

In September, we indicated that if the firm can beat expectations, the stock’s momentum may be able to return to its previous highs with gains over 20% in the next 12 months.

Notably, in the period leading up to this earnings report, Cardlytics’ estimates were mixed. Now, investors will be on the lookout to see whether shares will perform in line with the market in the foreseeable future, as well as whether they will match the “Strong Buy” rating from all three TipRanks analysts’.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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