Cardlytics, Inc. CDLX shares are trading higher Monday after the company announced it entered into a settlement agreement with SRS and updated preliminary Q4 2023 results.
The Details:
According to the settlement agreement with SRS, Cardlytics will pay SRS $25 million in cash and issue SRS 3.6 million shares of Cardlytics common stock. For the cash payment, Cardlytics has agreed to pay $20 million in January 2024, $3 million in January 2025, and $2 million in June 2025. All shares of Cardlytics stock will be issued in February 2024.
“I am delighted to resolve this significant issue that has greatly impacted Cardlytics for the last year and a half,” said Cardlytics CEO Karim Temsamani.
“All matters with SRS, including our withholding from the first anniversary earnout payment as well as the second anniversary earnout dispute, were settled for less than $46 million in total value based on our stock price at market close on Friday. This is a very positive result for the Company and our shareholders, and we are looking forward to focusing solely on the business moving forward.”
Cardlytics also updated its preliminary and unaudited fourth-quarter billings guidance to between $131 million and $133 million and revenue guidance to between $89 million and $90 million.
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CDLX Price Action: According to Benzinga Pro, Cardlytics shares are up 25% at $7.21 at the time of publication.
Image: Steve Buissinne from Pixabay
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