Cardlytics, Inc. (NASDAQ:CDLX) reported that its Chief Financial Officer, Alexis DeSieno, has sold a portion of her company stock, totaling over $23,000. The transactions occurred on October 2, 2024, and were disclosed in a recent filing with the Securities and Exchange Commission.
According to the filing, DeSieno sold 7,487 shares of Cardlytics common stock at a weighted average price of $3.085 per share. The sales were executed in multiple transactions with prices ranging from $3.05 to $3.145. The total value of the shares sold by the CFO amounted to approximately $23,097.
It is noted in the filing that the shares sold by DeSieno were primarily to satisfy tax withholding obligations related to the vesting of Restricted Stock Units (RSUs) on October 1, 2024. The RSUs represent a contingent right to receive shares of common stock and are part of a compensation package that vests in installments provided the executive remains employed with Cardlytics.
The RSUs are set to vest in eight equal installments on specific dates ranging from July 2024 to April 2026. On the first vesting date, October 1, DeSieno acquired 14,350 shares through the RSUs, which increased her total ownership in the company to 105,336 shares following the transaction.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's stock value and financial health. Following the sale, DeSieno's direct ownership in Cardlytics stands at 97,849 shares.
Cardlytics, Inc., headquartered in Atlanta, Georgia, specializes in services related to computer programming, data processing, and other technology-related fields. The company's financial disclosures and executive transactions are routinely filed and available for public review.
In other recent news, Cardlytics, Inc. reported a mixed financial result for the second quarter of 2024, with a slight increase in billings to $110.4 million but a drop in revenue to $69.6 million. The company also announced significant leadership changes, appointing Amit Gupta as the new CEO and member of the Board of Directors. Despite these changes, Cardlytics continues to focus on its long-term strategy, including technology improvements, cost discipline, and a shift to engagement-based pricing.
The company also introduced the Insight dashboard, which aims to enhance advertiser retention and budget growth. Monthly active users rose to 165.5 million, but average revenue per user dropped by 13%. The company anticipates Q3 billings between $100 million and $106 million, with revenue forecasts of $56 million to $63 million.
In the UK, the company experienced a robust 33% growth in billings. However, the average revenue per user experienced a significant decrease. Despite these challenges, Cardlytics plans to refine its platform, expand the addressable market for Rippl, and diversify its advertiser base for sustainable growth.
InvestingPro Insights
The recent stock sale by Cardlytics' CFO Alexis DeSieno comes at a time when the company faces significant financial challenges, as highlighted by several InvestingPro metrics and tips.
Cardlytics' stock has experienced substantial volatility and decline, with InvestingPro data showing a 76.93% price drop over the past six months. This aligns with the InvestingPro Tip indicating that the stock has "fared poorly over the last month" and is "trading near 52-week low." The current stock price of $3.07 is significantly below both the fair value of $4.43 suggested by InvestingPro and the analyst target of $4.50.
The company's financial health appears precarious, with InvestingPro Tips pointing out that Cardlytics "operates with a significant debt burden" and "may have trouble making interest payments on debt." This is particularly concerning given that the company is "not profitable over the last twelve months," with a negative operating income of $58.49 million for the last twelve months as of Q2 2024.
Despite these challenges, it's worth noting that Cardlytics' revenue for the last twelve months stands at $305.42 million, with a gross profit margin of 44.18%. However, analysts anticipate a sales decline in the current year, which could further pressure the company's financial position.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Cardlytics, providing a deeper understanding of the company's financial situation and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.