Cardlytics Settles Shareholder Dispute

(RTTNews) - Cardlytics, Inc. (CDLX), an advertising platform in banks' digital channels, Monday announced that it entered into a settlement agreement with Shareholder Representative Services LLC, or SRS, successfully resolving all disputes between the parties related to the Bridg merger agreement and the earnout payments.

On January 25, 2024, Cardlytics entered into a settlement agreement with SRS, the entity representing the former shareholders of Bridg.

Cardlytics has agreed to pay SRS $25 million in cash and issue SRS 3.6 million shares of Cardlytics common stock. For the cash payment, Cardlytics has agreed to pay $20 million in January 2024, $3 million in January 2025, and $2 million in June 2025. All shares of Cardlytics stock will be issued in February 2024.

Cardlytics also said it expects fourth-quarter revenues of $89 million to $90 million and adjusted EBITDA $9.5 million to $10.5 million.

Previously, the company expected fourth-quarter revenues of $82 million to $90 million and adjusted EBITDA $4.0 million to $8.0 million.

"I am pleased that we expect to meet or exceed our previous guidance," said Cardlytics CFO Alexis DeSieno. "Our focus on cost discipline and efficiency is paying off, and our fourth-quarter performance continues to prove that we can achieve sustained profitability. Our preliminary Q4 2023 results also imply positive adjusted EBITDA for 2023. Once finalized, this positive adjusted EBITDA result for 2023 will allow us to extend the maturity date of our credit facility to April 2025 pursuant to the terms of the credit facility agreement, giving us additional flexibility."