Company: CDLX
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001666071-25-000034
Chunk: 90

Company: Cardlytics, Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 90
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 increase in Consumer Incentives. In 2024, Consumer Incentives grew faster than Billings, due to higher engagement and a one-time $2.2 million rewards benefit that we realized in 2023.

Costs and Expenses

Partner Share and Other Third-Party Costs

 Year Ended December 31,Changein thousands20242023$      %      Total Partner Share and other third-party costs$127,761 $150,578 $(22,817)(15)%% of Revenue46 %49 %

Partner Share and other third-party costs decreased by $22.8 million during 2024 compared to 2023, partially due to a decrease of $1.3 million from a Partner Share commitment shortfall accrual in 2023 that did not reoccur in 2024. Excluding this shortfall commitment, the balance in Partner Share and other third-party costs decreased by $21.5 million. The decrease is primarily driven by lower top line billings, a renegotiation of terms with a certain FI Partner and changes in Partner Share mix.

Delivery Costs

 Year Ended December 31,Changein thousands20242023$      %      Delivery costs excluding stock-based compensation expense$26,963 $25,821 $1,142 4 %Plus:Stock-based compensation expense2,680 2,427 253 10 Total delivery costs$29,643 $28,248 $1,395 5 %% of Revenue11 %9 %

Total delivery costs increased by $1.4 million during 2024 compared to 2023. Delivery costs excluding stock-based compensation increased by $1.1 million during 2024 compared to 2023, driven by a $2.3 million increase in data storage, partially offset by $0.5 million reduction in desktop software licenses, a $0.5 million reduction in data center expenses, and a $0.2 million reduction in staff expense.

Sales and Marketing Expense

 Year Ended December 31,Changein thousands20242023$      %      Sales and marketing expense excluding stock-based compensation expense$42,632 $44,801 $(2,169)(5)%Plus:Stock-based compensation expense10,017 12,624 (2,607)(21)Total sales and marketing expense$52,649 $57,425 $(4,776)(8)%% of