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Published February 14, 2025
Advertising firm Cardlytics didn’t seal the deal with investors after it announced revenue and billings were way down. Angry investors quickly dumped Carlytics stock, causing the Company’s share price to plunge a staggering 57% in one day. Some of those shareholders are now suing the Company to recover their losses.
Cardlytics operates an advertising platform. It partners with companies to offer consumers discounts and incentives, which are paid out of Cardlytics’ pocket. In March 2024, the Company issued a glowing financial report and said it was on the path to major revenue growth throughout the year.
But that wasn’t the case.
The Company’s incentive program cost way too much. In August 2024 the Company revealed revenues were down 9%t because incentive payments were out of control. The Company slashed then slashed its financial projections.
Stunned investors quickly sold off their shares. Some of those investors are now joining the lawsuit.