Assessing Cardlytics Inc’s (NASDAQ:CDLX) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess CDLX’s recent performance announced on 31 March 2018 and evaluate these figures to its longer term trend and industry movements. View out our latest analysis for Cardlytics
How Did CDLX’s Recent Performance Stack Up Against Its Past?
CDLX is loss-making, with the most recent trailing twelve-month earnings of -US$32.89m (from 31 March 2018), which compared to last year has become less negative. Furthermore, the company’s loss seem to be growing over time, with the five-year earnings average of -US$46.13m. Each year, for the past five years CDLX has seen an annual increase in operating expense growth, outpacing revenue growth of 21.41%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Inspecting growth from a sector-level, the US internet industry has been growing its average earnings by double-digit 26.70% in the prior twelve months, and 18.59% over the past five. This means though Cardlytics is presently unprofitable, it may have benefited from industry tailwinds, moving earnings in the right direction.
Although Cardlytics is loss-making, its has a good cash runway to meet its upcoming operating expense (should SG&A and one-year R&D remain constant at the current level of US$67.50m) over the next year. This is a sign of good cash management.
What does this mean?
Though Cardlytics’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always hard to envisage what will occur going forward, and when. The most valuable step is to assess company-specific issues Cardlytics may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Cardlytics to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CDLX’s future growth? Take a look at our free research report of analyst consensus for CDLX’s outlook.
- Financial Health: Is CDLX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.