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SEGMENTS
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
As of March 31, 2024, we have three operating segments: the Cardlytics platform in the U.S., the Cardlytics platform in the U.K. and the Bridg platform, as determined by the information that our Chief Executive Officer, who we consider our chief operating decision maker ("CODM"), uses to make strategic goals and operating decisions. Our Cardlytics platform operating segments in the U.S. and U.K. represent our proprietary advertising channels and are aggregated into one reportable segment given their similar economic characteristics, nature of service, types of customers and method of distribution. Subsequent to the acquisition of Bridg, our CODM began reviewing Bridg's Revenue and operating expenses. Therefore, we consider the Bridg platform to be a separate operating segment. Our CODM allocates resources to, and evaluates the performance of, our operating segments based on Revenue and Adjusted Contribution. Our CODM does not review assets by operating segment for the purposes of evaluating performance or allocating resources.
The following tables provide information regarding the Cardlytics platform and the Bridg platform reportable segments (in thousands):
 Three Months Ended
March 31,
 20242023
Cardlytics platform
Revenue$62,233 $59,030 
Minus: Partner Share and other third-party costs30,412 33,175 
Adjusted Contribution$31,821 $25,855 
Bridg platform
Revenue$5,375 $5,301 
Minus: Partner Share and other third-party costs131 209 
Adjusted Contribution$5,244 $5,092 
Consolidated
Revenue$67,608 $64,331 
Minus: Partner Share and other third-party costs30,543 33,384 
Adjusted Contribution$37,065 $30,947 
Adjusted Contribution
Adjusted Contribution measures the degree by which revenue generated from our marketers exceeds the cost to obtain the purchase data and the digital advertising space from our partners. Adjusted Contribution demonstrates how incremental Revenue on our platforms generates incremental amounts to support our sales and marketing, research and development, general and administration and other investments. Adjusted Contribution is calculated by taking our total Revenue less our Partner Share and other third-party costs exclusive of deferred implementation costs, which is a non-cash cost. Adjusted Contribution does not take into account all costs associated with generating Revenue from advertising campaigns, including sales and marketing expenses, research and development expenses, general and administrative expenses and other expenses, which we do not take into consideration when making decisions on how to manage our advertising campaigns.
The following table presents a reconciliation of income (loss) before income taxes presented in accordance with GAAP to Adjusted Contribution (in thousands):
 Three Months Ended
March 31,
 20242023
Adjusted Contribution$37,065 $30,947 
Minus:
Delivery costs6,173 6,424 
Sales and marketing expense14,118 13,948 
Research and development expense13,048 11,564 
General and administration expense14,485 13,070 
Acquisition, integration and divestiture costs— 1,723 
Change in contingent consideration5,817 (34,584)
Depreciation and amortization expense6,250 6,575 
Total other expense1,449 (1,381)
Income (loss) before income taxes$(24,275)$13,608 
The following tables provide geographical information (in thousands):
 Three Months Ended
March 31,
 20242023
Revenue:
United States$62,534 $61,081 
United Kingdom5,074 3,250 
Total$67,608 $64,331 

March 31, 2024December 31, 2023
Property and equipment, net:
United States$2,832 $3,244 
United Kingdom74 79 
Total$2,906 $3,323 
Capital expenditures within the United Kingdom totaled less than $0.1 million for each period during the three months ended March 31, 2024 and 2023.
Concentrations of Risk
Cash and Cash Equivalents
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. A significant portion of our cash and cash equivalents are held in fully FDIC-insured money market accounts, demand deposit accounts and U.S. Treasury Bills that distribute funds, and credit risk, over a vast number of financial institutions. Our remaining cash and cash equivalents are held with six financial institutions, which are of high credit quality.
Marketers
Beginning in the period ending December 31, 2023, we define a marketer as a customer who has a distinct contractual relationship with us, rather than aggregating by parent company. We believe this is a more accurate representation for how marketing budgets are managed at our customer level. This methodology change in our aggregation impacts how we calculate our revenue and accounts receivable concentration and we changed the prior year presentation to be in conformity.
Our Revenue and accounts receivable are diversified among a large number of marketers segregated by both geography and industry. During the three months ended March 31, 2024 and 2023, our top five marketers accounted for 21% and 16% of our Revenue, respectively, with no marketer accounting for over 10%. As of March 31, 2024 and 2023, our top five marketers accounted for 21% and 16% of our accounts receivable, respectively, with no marketer accounting for over 10%.
FI Partners
Our business is substantially dependent on a limited number of FI partners. We require participation from our FI partners in the Cardlytics platform and access to their purchase data in order to offer our solutions to marketers and their agencies. We must have FI partners with a sufficient number of customers and levels of customer engagement to ensure that we have robust purchase data and marketing space to support a broad array of incentive programs for marketers. Our agreements with a substantial majority of our FI partners have terms of three to seven years but are generally terminable by the FI partner on 90 days or less prior notice. The agreements generally have auto-renewal provisions that allow for the agreements to extend past their originally contemplated end date, unless terminated earlier in accordance with the terms of the agreement. If an FI partner terminates its agreement with us, we would lose that FI partner as a source of purchase data and online banking customers.
During the three months ended March 31, 2024 and 2023 our top three FI partners combined to account for over 90% and 70% of the total Partner Share we paid to all partners, respectively, with the top FI partner representing over 50% for each period and the second and third largest FI partners representing over 15% and 10% of Partner Share, respectively. No other partner accounted for over 10% of Partner Share during these periods.