With the addition of megabank JPMorgan Chase & Co. as a customer fully completed, marketing services provider Cardlytics Inc. on Thursday reported that it had an average of 120.1 million monthly active users on its platform as of June 30, up 104% from 58.8 million users a year earlier.
Atlanta-based Cardlytics’s main product, Cardlytics Direct, provides merchant-funded offers to consumers via their banks’ mobile and online banking sites, offers based on their spending patterns. The Chase rollout had been going on for months, with that bank joining Bank of America Corp., Wells Fargo & Co., and other financial institutions as Cardlytics customers.
Cardlytics earns revenues when bank customers accept an offer, but revenue growth lags user growth because it takes time for consumers to get the hang of using the offers. Average revenue per user, a key company metric, grew from 33 cents in the first quarter to 40 cents in the second, but still was down from 60 cents in 2018’s second quarter.
Billings paid by marketers totaled $73.8 million, up 43% from $51.4 million in 2018’s second quarter. Total quarterly revenue—billings minus consumer incentives—grew 37% to $48.7 million from $35.6 million a year earlier. Part of the revenues are paid to Cardlytics’ financial-institution partners. The company’s net loss was $6.5 million, half the second-quarter 2018 loss of $13.1 million.
Now Cardlytics is turning its attention to promising merchant segments and other ventures to spur long-term growth.
“In addition to completing the rollout to Chase’s online banking channel in Q2, we made good progress against initiatives designed to drive multiyear growth,” chief operating officer and company co-founder Lynne Laube said in a statement. “We’ve seen early success in new growth verticals such as travel and entertainment, grocery and e-commerce, and are laying the groundwork to move to a more automated, always-on buying model for marketers. We’re optimistic that these efforts are positioning us well for continued growth.”