Cardlytics Inc. shares CDLX, -53.41% ended Wednesday’s session down 53% after the company, which provides marketing solutions, delivered a forecast that fell well short of what analysts had been expecting. JPMorgan analyst Doug Anmuth wrote following the Tuesday afternoon report that Cardlytics guided for a roughly 6% year-over-year decline in fourth-quarter revenue at the midpoint, while the consensus view had been for growth of approximately 11%. “We note this marks a material revision to the [second-half] outlook of +10-15%,’ he wrote in his note to clients. Anmuth further noted that Cardlytics’ executive team “did indicate it had identified an additional $20M in annualized cost savings on top of the $15M from last quarter, which is expected to show up in the [financials] in early 2023.” He maintained a neutral rating on the shares while cutting his price target to $7 from $10. Wells Fargo analyst Jeff Cantwell wrote that the latest results indicated “continued uncertainty by advertisers due to macro-related concerns, and consumers feeling pressured by high inflation and rising interest rates.” He’s “relatively cautious on the shares as we expect consumer spend/advertising spend will be further curtailed” in the short run. Cardlytics shares have lost roughly 93% of their value so far this year as the S&P 500 SPX, -2.50% has declined 21%.
