Company: CDLX
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001666071-25-000046
Chunk: 63

Company: Cardlytics, Inc.
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 63
---
 other income and expense items, such as deferred implementation costs. We do not consider these excluded items to be indicative of our core operating performance.

The Compensation Committee selected "Adjusted EBITDA" as the corporate performance measures for the 2024 Bonus Plan based on its belief that it is the most appropriate top-line and bottom-line indicator of the effectiveness of our growth strategy and our ability to continue to make large investments to evolve our platform. Adjusted EBITDA is a key measure used by management to understand and evaluate the core operating performance and trends and to generate future operating plans, make strategic decisions regarding the allocation of capital and invest in initiatives that are focused on cultivating new markets for our solution. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates comparisons of our operating performance on a period-to-period basis. Reconciliations from adjusted EBITDA to net loss and from adjusted contribution to gross profit are set forth in Appendix A to this Proxy Statement.

Using the levels described in the table below, the Compensation Committee established an annual target level for adjusted EBITDA, which was set above adjusted EBITDA achieved by the Company in 2023. The Compensation Committee established an annual threshold performance level below which no payout would be made. The Compensation Committee selected these target levels in order to incentivize performance and ensure the business rewards employees based on both the Company's performance and individual performance. Further, as demonstrated in the table below, 100% of the corporate component could not be paid out unless the target performance level for the corporate performance measure was achieved. A lower payout of 50% - 99.9% would be paid out if the threshold was achieved, but the target was not achieved, in order to recognize performance while still incentivizing achievement of the target performance level.

Potential bonuses for our Named Executive Officers under the 2024 Bonus Plan could range from 0% to 120% of their target annual short-term incentive compensation opportunity with respect to the adjusted EBITDA corporate performance measure.

Below is the payout methodology for our actual performance for the full year under the corporate performance component of the 2024 Bonus Plan:

#### 2024 Bonus Plan Methodology
| Adjusted EBITDA(1)  |     | Adjust EBITDA Amounts (in millions) |     | Payout       |
| Below Threshold     |     | $14.39 million or less              |     | 0%           |
| Threshold           |     | $14.4 million                       |     |