Rewards platform provider Cardlytics Inc. on Tuesday reported its user base and revenue per active user grew in the third quarter, but the company nonetheless trimmed its full-year revenue forecast.
The company’s primary product, Cardlytics Direct, provides merchant-funded rewards programs distributed through financial institutions’ online and mobile-banking sites. Cardlytics Direct revenue rose 14% year-over-year to $34.4 million, which helped boost total company revenues 10% to $34.6 million.
Monthly active users of offers through banks and credit unions rose 7% to 59.3 million from 55.4 million a year earlier. Average revenue per user increased 6% to 58 cents from 55 cents in 2017’s third quarter.
The big project on Atlanta-based Cardlytics’ plate is accommodating new customers from JPMorgan Chase & Co., the nation’s largest credit issuer and a leading debit card issuer, for which the company has been preparing for months. Cardlytics says it’s enhancing its platform to serve more than 150 million users from all its financial-institution clients.
“We are excited to have begun rolling out Cardlytics Direct with Chase, which we expect to significantly increase our [financial-institution user] base over the next few quarters, and further strengthen our ability to deliver impactful and profitable growth for marketers,” Cardlytics chief executive and co-founder Scott Grimes said in a statement.
Despite the double-digit increase, third-quarter revenues fell short of the $36 million to $38 million the company predicted in August. Plus, Cardlytics cut its earlier prediction for total 2018 revenues by about 5%, to $146 million to $148 million. The company posted a net loss for the quarter of $8.37 million compared with a $2.82 million loss a year earlier.