Needham Downgrades Cardlytics (CDLX) to Hold

Needham analyst Kyle Peterson downgraded Cardlytics (NASDAQ: CDLX) from Buy to Hold.

The analyst comments "CDLX's 2Q results missed expectations across the board, as weak billings resulted in another light quarter. More troubling was that this is the second quarter in a row that CDLX has faced challenges with higher consumer incentives weighing on revenue, which we expect to remain a challenge until CDLX can re-negotiate contracts with FI partners and/or increase the usage of engagement-based pricing. In addition, the guide calls for billings and revenue to decline Y/Y in 3Q, with the company also returning to a "cash burn" state after generating a few quarters of modestly positive profitability. Finally, CEO Karim Temsamani announced that he will be stepping down to pursue another professional opportunity, adding more uncertainty to an already precarious situation. Given these dynamics, we are downgrading the shares to a Hold (from Buy)."

For an analyst ratings summary and ratings history on Cardlytics click here. For more ratings news on Cardlytics click here.

Shares of Cardlytics closed at $6.90 yesterday.

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