Company: CDLX
Filing Date: 2025-04-03
Form Type: ARS
Source: 0001666071-25-000048
Chunk: 83

Company: Cardlytics, Inc.
Filing Date: 2025-04-03
Form: ARS
Chunk 83
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 expense. 51

Acquisition, integration and divestiture benefits Year Ended December 31, Change in thousands 2024 2023 $ % Acquisition, integration and divestiture (benefits) $ 161 (6,313) $ 6,474 (103) % % of Revenue — % (2) % During 2024, we recognized a $0.1 million expense associated with the net working capital adjustment related to the divestiture of Entertainment. During 2023, we incurred a $6.8 million benefit due to a reduction of brokerage fee related to the reduction of our estimate of contingent consideration related to the First Anniversary Payment Amount to Bridg, partially offset by a $0.5 million expense due to the divestiture of Entertainment. Refer to Note 4—Business Combinations to our consolidated financial statements for additional information regarding these acquisitions. Change in contingent consideration Year Ended December 31, Change in thousands 2024 2023 $ % Change in contingent consideration $ 210 $ 1,246 $ (1,036) (83) % % of Revenue — % — % During 2024, the change in contingent consideration was a $0.2 million expense as a result of the $6.1 million loss related to the change of contingent consideration to the former Bridg shareholders, almost entirely offset by the $5.9 million gain we recognized due to the Settlement Agreement. During 2023 we realized a $1.2 million expense primarily due to the change in contingent consideration to the former Bridg shareholders. Refer to Note 12—Fair Value Measurements to our consolidated financial statements for additional information regarding the contingent consideration. Impairment of goodwill and intangible assets Year Ended December 31, Change in thousands 2024 2023 $ % Impairment of goodwill and intangible assets $ 131,595 $ 70,518 $ 61,077 87 % % of Revenue 47 % 23 % During 2024, we recognized $131.6 million of impairment of goodwill and intangible assets related to the Bridg platform. During 2023, we recognized $70.5 million of impairment of goodwill and intangible assets related to the Bridg platform. The impairment of goodwill and intangible assets resulted from a continued slowdown in the economy, decreased consumer spend, and a sustained decline in our stock price. Refer to Note 5—Goodwill and Acquired Intangibles to our consolidated financial statements for additional information regarding the