Cardlytics, Inc. (NASDAQ:CDLX) Q4 2023 Earnings Call Transcript

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And obviously, having new product initiatives that we can talk to customers about, including the risk level offers that we mentioned before, also enable us to open doors and showcase great benefits to customers. So I’m very confident that our strategy is really starting to pay off. And I’m very keen to continue to see this growth moving forward and accelerating.

Jason Kreyer: And then on ADE, it seems like, I mean, you’ve been talking the last couple of quarters about getting all the right validation points, that this is certainly working and providing better offers. What do you think is causing, you know, some FI partners not to migrate to that in a quicker way?

Karim Temsamani: So, again, the vast majority of our network is now on ADE. So we’re very pleased with that. And then, subsequent improvements that we made to ADE just require a little bit of work at each of the partners, but it’s very minimal. What we have is 20% of our network that’s not yet on ADE, mostly because there’s larger tech changes that are required for these partners to move from on-premise, which was essentially our old stack, to a non-cloud solution. And we’re having very promising discussions with these partners, but it just takes time for the larger lift to occur. So, again, positive discussions. We will hopefully update the market as soon as we can with regards to the timing for those banks to move.

Jason Kreyer: Okay. And then just one last one from me, please, on discovery. I think we’ve talked in the past about how some FIs have moved offers around in different areas of their applications. And it seems like there, at least historically, hasn’t been as much volatility in consumer uptake or consumer activation. So, I’m just curious if you can maybe talk about what things you can influence in terms of discovery or accessibility inside of an application that you think can change consumer behavior and increase those activation rates.

Karim Temsamani: Yes, that’s a great question. I mean, what we really haven’t had in the past is a proper playbook and the right discussions with our bank partners to really discuss different placements for the widgets and different types of offers and different places where we can surface the offers. Not only are we having these discussions now, we’re creating those playbooks, but we also have an ability to provide some level of data on how these are working for the bank customers that are using them. And again, as I mentioned earlier in the call, we’re basically seeing, for instance with regards to line item transactions in a customer bank statement, we’re seeing a 5x higher activation than the normal activation that you see in the network.

So, we can go back to more bank partners and tell them this is what we see and then work with them with regards to implementing it also on their platform. So, we feel much more confident that we have the right structure now, that we’re really basing those discussions on data rather than on sort of our view of what banks should be doing. And that’s allowing us to have much, much better discussions.

Operator: Thank you. And I’m showing no further questions in the Q&A queue at this time. I will now turn the call back over to Mr. Karim Temsamani for any closing remarks.

Karim Temsamani: Thank you very much. This concludes our call. As I mentioned, we remain committed to positioning the business for future success. Thank you for your continued support and I look forward to our next discussion.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.

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