Cardlytics, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the first quarter 2020 Cardlytics, Inc. earnings conference call. At this time, all participant lines are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star then 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then 0. I would now like to hand the conference over to your speaker today, Kirk Somers, Chief Legal and Privacy Officer. Please go ahead.

Good evening, and welcome to Cardlytics' first quarter 2020 financial results call. Before we begin, let me remind everyone that today's discussion will contain forward-looking statements based on our current assumptions, expectations, and beliefs, including expectations about future financial performance or results, the anticipated impact of our key priorities on driving growth, the timing of the rollout of Wells Fargo, growth in FIMAUs or monthly active users, future ARPU or average revenue per user, expectations and many more. Please refer to the risk factors section of the company's 10Q for the quarter ended March 31, 2020 that we filed earlier today and in subsequent periodic reports that we filed with the Securities and Exchange Commission. Also during this call, we will discuss non-GAAP measures of our performance. GAAP financial reconciliations and supplemental financial information are provided in the press release issued today and the 8K that has been filed with the SEC. Thank you for joining us today. and Andy Christensen. Following their prepared remarks, we'll open the call to your questions. With that, let me turn the call over to Scott Grimes, Carlytics CEO and co-founder.

Scott? Thanks, Kirk, and thank you to everyone for joining us on our first quarter 2020 earnings conference call. First, we want to acknowledge that the past few months have presented unprecedented challenges around the world and in the global economy. Our hearts go out to those affected and Carlytics has been doing its part to help ensure the health and safety of our employees and community. One hundred percent of the company has been working from home since early March. I am proud of our team for adapting to this evolving situation by maintaining business continuity and moving us forward to reach our goals. And of course, this is a particularly difficult time as a marketing company. One of our real strengths as a digital channel is our ability to drive customers into brick and mortar stores and restaurants. Additionally, our ability to find premium travelers and reach them via digital banking provides a powerful marketing tool for the travel vertical. With much of the U.S. and U.K. in lockdown, consumer spending in our key verticals has been dramatically reduced, and buildings from these verticals are down in a similar way. But our team remains positive about the future, and despite the difficult nature of this crisis for our advertising partners, we have seen encouraging signs in the business. Spending in these verticals is improving relative to April. We are working closely with many marketers across all of our verticals to plan how we can help them restart their businesses. We can do this uniquely well due to the nature of our channel, our rich data set, and our ability to provide an immediate and profitable return on marketing investments. We're also excited about new client opportunities that have arisen from the rapid disruption in our economy. Lynn will describe our rise, retain, and return strategy in more detail. Now, let's review first quarter results. We delivered a solid first quarter with billings, revenue, and adjusted contribution in the upper half of our prior guidance. Here are some of the highlights. Total billings for the first quarter were $67.8 million, an increase of 16% year over year. Total revenue, which is equal to billings net of consumer incentives, was $45.5 million, up 26%. Adjusted contribution was $20.4 million, growing 16% year over year. In the first quarter, we continued to grow the reach of our platform. We increased our average FIMAUs to 140.8 million, a 6% increase from the quarter and 30% from Q1 2019. As we announced in our Q4 earnings call, on May 15, 2020, my co-founder, Lynn Lobey, will assume the role of CEO. Our team, our partners, and our board are all excited for Lynn to drive the next wave of growth. And she has done an exceptional job of keeping the company alive. performing at a high level during this unprecedented environment we are in. I will continue to be closely involved with the company as executive chairman, where I'll be focusing on leading our board of directors, driving strategy and innovation, and supporting Lynn and Cardlytics in any way I can. I'll now hand the call over to Lynn to provide greater detail on what we're seeing in our business. Lynn?