Company: CDLX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001666071-25-000159
Chunk: 150

Company: Cardlytics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 150
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 the second quarter 2021 employee retention tax credit.

Total delivery costs decreased by $1.8 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.  Delivery costs excluding stock-based compensation expense and reduction in force decreased by $1.4 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, driven by a $1.6 million decrease in staff expense and a $0.3 million decrease in desktop software, partially offset by a $0.5 million increase in data storage expense. The decrease in staff expense includes a $0.5 million benefit associated with the approval of the second quarter 2021 employee retention tax credit.

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Sales and Marketing Expense

 Three Months Ended September 30,ChangeNine Months Ended September 30,Changein thousands20252024$%20252024$%Sales and marketing expense excluding stock-based compensation expense and reduction in force$7,305 $11,067 $(3,762)(34)%$27,613 $33,166 $(5,553)(17)%Plus:Stock-based compensation expense560 2,096 (1,536)(73)3,710 8,140 (4,430)(54)Reduction in force— — — n/a631 — 631 n/aTotal sales and marketing expense$7,865 $13,163 $(5,298)(40)%$31,954 $41,306 $(9,352)(23)%% of Revenue15 %20 %18 %20 %

Total sales and marketing expense decreased by $5.3 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Sales and marketing expenses excluding the impact of stock-based compensation expense decreased by $3.8 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to a $3.6 million decrease in staff expense and a $0.2 million decrease in marketing events. The decrease in staff expense includes a $1.1 million benefit associated with the approval of the second quarter 2021 employee retention tax credit.

Total sales and marketing expense decreased by $9.4 million during the nine months ended September 30, 2025 compared