Company: CDLX
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001666071-25-000126
Chunk: 247

Company: Cardlytics, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 247
---
 management and other key personnel, the loss of any of whom could adversely affect our business.

Our future success depends in large part on the continued contributions of our senior management and other key personnel. In particular, the leadership of key management personnel is critical to the successful management of our company, the development of our solutions and our strategic direction. We do not maintain "key person" insurance for any member of our senior management team or any of our other key employees. Our U.S.-based senior management and key personnel are all employed on an at-will basis, which means that they could terminate their employment with us at any time, for any reason and without notice. The loss of any of our key management personnel could significantly delay or prevent the achievement of our development and strategic objectives and adversely affect our business. 

Our international sales and operations subject us to additional risks that can adversely affect our business, operating results and financial condition.

During the six months ended June 30, 2025 and 2024, we derived 10% and 8%, respectively, of our revenue from outside the U.S. While substantially all of our operations are located in the U.S., we have an office in the U.K. and may continue to expand our international operations as part of our growth strategy. Our ability to convince marketers to expand their use of our solutions or renew their agreements with us is directly correlated to our direct engagement with such marketers or their agencies. To the extent that we are unable to engage with non-U.S. marketers and agencies effectively with our limited sales force capacity, we may be unable to grow sales to existing marketers to the same degree we have experienced in the U.S.

Our international operations subject us to a variety of risks and challenges, including:

•localization of our solutions, including adaptation for local practices;

•increased management, travel, infrastructure and legal and compliance costs associated with having international operations;

•fluctuations in currency exchange rates and related effects on our operating results;

•longer payment cycles and difficulties in collecting accounts receivable or satisfying revenue recognition criteria;

•increased financial accounting and reporting burdens and complexities;

55

•general economic conditions in each country or region, including inflationary pressure; 

•the global economic uncertainty and financial market conditions;

•reduction in billings associated with the U.K. as well as issues related to foreign currency exchange rates and trade with foreign jurisdictions;

•contractual and legislative restrictions or changes;

•economic uncertainty around the world;

•compliance with foreign