PRISM AdTech and Media Index Laggard Cardlytics (CDLX) Falls on Senior Notes Offering, Down ~30%

Today Cardlytics, Inc. (CDLX) is trailing the PRISM AdTech and Media Index on its announcement to propose a convertible senior notes offering, sending shares tumbling down ~30%. The announcement of its intention to offer includes $150M aggregate principal amount of convertible senior notes due 2029, in a private offering to qualified institutional investors.

Upon the announcement the stock price has dropped to ~$14 but remains up ~437% over the past year and 60% YTD. In the past two weeks, the company announced its Q4 and full year guidance and analysts lifted their price targets after having been encouraged by higher revenue and lower forecasted losses for next year.

Cardlytics is a digital advertising platform that specializes in leveraging purchase data from bank transactions to deliver targeted marketing campaigns to consumers. Through partnerships with financial institutions, Cardlytics analyzes anonymized transaction data to identify consumer spending patterns and preferences. This data is then used to create personalized advertising campaigns, which are delivered to consumers within their online banking or mobile banking apps.