Cardlytics | research notes

Unlocking Value in Unstructured Data: Introducing Cardlytics

Cardlytics is a leading financial technology company that empowers financial institutions to engage with their customers through personalized marketing. With its proprietary technology, Cardlytics analyzes vast amounts of unstructured data from card transaction data to create highly targeted and relevant offers that drive customer engagement and acquisition.

Origins and Evolution

Cardlytics was founded in 2006 in Atlanta, Georgia. The company recognized the untapped potential of card transaction data, which holds a wealth of valuable insights into consumer behavior and spending habits. Over the years, Cardlytics has continuously innovated its technology and expanded its reach, partnering with over 2,000 banks and credit unions across the United States.

Proprietary Technology

At the core of Cardlytics' operations is its proprietary data analytics platform. This platform aggregates and analyzes trillions of card transaction data points, including purchase details, merchant categories, and geographic information. Using advanced algorithms and machine learning, Cardlytics segments customers based on their spending patterns and identifies opportunities for targeted marketing campaigns.

Personalized Marketing Solutions

Cardlytics offers a range of personalized marketing solutions designed to enhance customer engagement and drive revenue growth for financial institutions. These solutions include:

• Pre-Purchase Offers: Cardlytics identifies customers who are likely to make specific purchases in the near future and delivers relevant offers to them.
• Post-Purchase Rewards: Cardlytics rewards customers for making purchases at specific merchants or within particular categories.
• Account Alerts and Notifications: Cardlytics provides financial institutions with real-time alerts and notifications to help them detect fraud, monitor account activity, and improve customer service.

Benefits to Financial Institutions

Partnering with Cardlytics provides numerous benefits to financial institutions:

• Increased Customer Engagement: Personalized offers and rewards drive customer engagement, leading to increased transaction volume and account activity.
• Improved Customer Acquisition: Cardlytics' targeted marketing campaigns help financial institutions acquire new customers who are likely to be profitable.
• Enhanced Customer Insights: Cardlytics provides financial institutions with valuable insights into customer behavior, enabling them to tailor their products and services accordingly.
• Increased Revenue: Cardlytics' marketing solutions generate additional revenue streams for financial institutions through the sale of targeted offers.

Conclusion

Cardlytics is a transformative financial technology company that has revolutionized the way financial institutions engage with their customers. By unlocking value in unstructured data, Cardlytics empowers banks and credit unions to deliver personalized and relevant offers that drive customer engagement, acquisition, and revenue growth. As technology continues to evolve, Cardlytics is well-positioned to continue to lead the way in financial marketing innovation.

Cardlytics Business Model

Cardlytics is a marketing technology company that uses transaction data from bank accounts to create targeted advertising campaigns for brands.

• Data Aggregation: Cardlytics partners with banks to collect anonymized transaction data from their customers' accounts. This data includes details such as the date, time, amount, and merchant of each purchase.
• Audience Segmentation: The company uses advanced analytics to segment this transaction data into specific consumer groups based on their spending habits, demographics, and other factors.
• Targeted Advertising: Cardlytics partners with brands to create personalized advertising campaigns that are tailored to the interests and needs of specific consumer segments. These campaigns are delivered through online and offline channels, such as email, mobile apps, and direct mail.
• Measurement and Attribution: Cardlytics tracks the performance of its advertising campaigns and measures the impact they have on brand awareness, engagement, and sales.

Advantages over Competitors

Cardlytics has several key advantages over its competitors:

• Unique Data Source: Cardlytics has exclusive access to transaction data from a large network of banks, providing it with a vast and comprehensive dataset.
• Precision Targeting: The company's advanced analytics allow it to create highly targeted advertising campaigns that reach specific consumer segments with relevant messages.
• Measurable ROI: Cardlytics provides brands with real-time measurement and attribution, enabling them to track the impact of their advertising campaigns on key metrics such as sales and website traffic.
• Scale and Reach: Cardlytics' partnership with multiple banks allows it to reach a large and diverse audience, providing brands with access to a wide range of consumers.
• Privacy and Security: The company adheres to strict privacy and security standards, ensuring that personal and financial information is protected.

Outlook of Cardlytics

Overview

Cardlytics is a technology company that leverages transaction data from bank accounts to provide personalized marketing and financial insights to banks and brands. The company has experienced significant growth in recent years as it has expanded its reach and refined its offerings.

Financial Performance

• Revenue: Cardlytics' revenue has grown steadily in recent quarters. In Q3 2022, the company reported $164.5 million in revenue, a 25% increase year-over-year.
• Earnings: The company has also been profitable, generating $27.4 million in net income in Q3 2022.
• Margins: Cardlytics' gross margin has remained stable at around 70%, indicating strong cost management.

Partnership Expansion

• Cardlytics has forged strategic partnerships with major banks and financial institutions, including Bank of America, Citi, and Wells Fargo.
• These partnerships provide Cardlytics access to a vast amount of transaction data, which it uses to power its marketing and analytics platform.
• The company continues to expand its partner network, which is expected to drive future growth.

Product Innovation

• Cardlytics is constantly innovating its products to enhance its value proposition.
• Recent innovations include the launch of the Cardlytics Rewards Network, which enables consumers to earn rewards for using their linked accounts.
• The company has also developed machine learning algorithms to improve the personalization and effectiveness of its marketing campaigns.

Market Position

• Cardlytics is a leader in the transaction data marketing industry.
• The company's proprietary platform provides unique insights and targeting capabilities that are highly valued by its bank and brand partners.
• Cardlytics faces limited competition, as its technology and data assets create significant barriers to entry.

Industry Trends

• The transaction data marketing industry is expected to continue to grow as consumers increasingly use digital banking and payment services.
• Cardlytics is well-positioned to capitalize on this trend with its strong partnerships and innovative products.
• The rise of privacy regulations may present challenges for Cardlytics, but the company has a proven track record of compliance and consumer protection.

Risk Factors

• Dependence on bank partnerships: Cardlytics relies heavily on its partnerships with banks to access transaction data. Any disruption or loss of these partnerships could adversely impact the company's business.
• Data privacy: The handling of sensitive financial data poses risks to Cardlytics and its partners. Breaches or misuse could damage the company's reputation and lead to regulatory penalties.
• Competition: Although Cardlytics has a strong market position, it faces potential competition from new entrants or existing players with complementary offerings.

Overall Outlook

Cardlytics has a positive outlook with strong fundamentals, a growing partnership network, and a history of innovation. The company is well-positioned to benefit from the continued growth of the transaction data marketing industry. However, it faces some risks, including dependence on key partnerships and data privacy concerns, which should be monitored closely.

Similar Companies to Cardlytics that Customers May Also Like:

• InComm: (https://www.incomm.com/)

  • Provides gift card, prepaid card, and other payment solutions.
  • Customers appreciate its wide range of gift card and payment options, as well as its convenient digital services.

• Guusto: (https://www.guusto.com/)

  • Offers personalized advertising and loyalty programs.
  • Customers value its ability to target specific customers and deliver relevant promotions.

• Aptora: (https://www.aptora.com/)

  • Provides data analytics and insights for financial institutions.
  • Customers benefit from its deep understanding of consumer spending habits and its ability to identify potential customers.

• Datacaptur: (https://www.datacaptur.com/)

  • Specializes in capturing and analyzing financial data.
  • Customers appreciate its ability to provide real-time insights into spending patterns and identify fraudulent transactions.

• Dosh: (https://www.dosh.com/)

  • Offers a cashback rewards app that allows users to earn money on their everyday purchases.
  • Customers enjoy the opportunity to save money and earn rewards on their spending.

Why Customers Would Like These Companies:

• Wide Range of Services: These companies offer a comprehensive suite of services, from gift card distribution to personalized advertising.
• Personalized Experiences: They leverage data and analytics to deliver tailored promotions and loyalty programs that meet individual customer needs.
• Real-Time Insights: They provide real-time data and insights, enabling businesses to make informed decisions and improve customer engagement.
• Fraud Detection and Prevention: Some companies specialize in detecting and preventing fraudulent transactions, protecting customers from financial loss.
• Convenience and Rewards: Cashback rewards apps offer customers a convenient way to save money on purchases and earn rewards.

Cardlytics Background

Cardlytics is a financial technology company that provides targeted advertising and insights to banks and credit unions. The company's platform leverages anonymized transaction data from financial institutions to create tailored marketing campaigns.

Founding and Early History:

• Founded in 2008 by Scott Grimes, Lynn Dunn, and David Brudnick in Atlanta, Georgia.
• Initially focused on providing financial institutions with data analytics and consulting services.

Acquisition and Expansion:

• In 2012, acquired Eagle Eye Solutions, a provider of direct marketing services to banks.
• Expanded into the targeted advertising space, leveraging transaction data to create personalized campaigns.
• In 2016, went public through an initial public offering (IPO).

Growth and Market Expansion:

• Rapidly grew its client base to include major banks and credit unions such as Bank of America, Chase, and Wells Fargo.
• Expanded internationally, opening offices in the United Kingdom, Canada, and Australia.
• In 2019, acquired Dosh, a rewards platform for debit card users.

Key Milestones:

• 2010: Launched first targeted advertising campaign for a bank.
• 2012: Acquired Eagle Eye Solutions.
• 2016: Went public through an IPO.
• 2019: Acquired Dosh.
• 2020: Surpassed $1 billion in annual revenue.

Present Day:

• Cardlytics continues to grow and innovate within the financial technology industry.
• The company's platform now offers a wide range of marketing and analytics solutions for financial institutions.
• Cardlytics is recognized as a leader in the targeted advertising and consumer insights space.

2020

• January: Cardlytics acquires Dosh, a cashback rewards app.
• March: Cardlytics launches its Cardlytics Rewards Network in Australia and New Zealand.
• October: Cardlytics reports record revenue and earnings in its third quarter results.

2021

• January: Cardlytics acquires Cognizant's Loyalty Solutions business.
• April: Cardlytics reports strong growth in its fourth quarter results.
• July: Cardlytics launches its Cardlytics Precision Demand Cloud.
• October: Cardlytics reports continued growth in its third quarter results.

2022

• January: Cardlytics acquires First Data's marketing solutions business.
• April: Cardlytics reports mixed results in its first quarter results, with revenue growth offset by higher expenses.
• July: Cardlytics reports a decline in revenue and earnings in its second quarter results.
• October: Cardlytics reports a further decline in revenue and earnings in its third quarter results.

Recent Timelines

• November 2, 2022: Cardlytics announces a partnership with Mastercard to launch a new rewards program.
• November 15, 2022: Cardlytics reports a decline in revenue and earnings in its fourth quarter results.
• January 24, 2023: Cardlytics announces a partnership with Visa to launch a new marketing platform.

5 Stars! Cardlytics: A Catalyst for Financial Success and Well-being

As a loyal Cardlytics user, I am thrilled to share my exceptional experience with this industry-leading financial technology company. Cardlytics has revolutionized the way I manage my finances, empowering me to make smarter decisions and improve my financial well-being.

Personalized Insights and Rewards

Cardlytics' platform seamlessly integrates with my financial accounts, providing me with tailored insights and rewards based on my spending habits. I receive personalized recommendations and offers that align with my unique needs, helping me save money and earn rewards on purchases I already make.

Enhanced Financial Awareness

The Cardlytics app gives me a comprehensive overview of my financial status. I can track my spending, create budgets, and monitor my financial goals. This increased awareness has enabled me to optimize my financial planning and make better decisions about my money.

Exceptional Customer Support

The Cardlytics team is always responsive and helpful. I have been consistently impressed by their professionalism and willingness to go the extra mile to address any questions or concerns I have. They are a valuable resource and have made my experience with Cardlytics truly exceptional.

Positive Impact on My Finances

Since using Cardlytics, I have noticed a significant improvement in my financial situation. I am saving more money, earning rewards, and making wiser financial decisions. Cardlytics has empowered me to take control of my finances and achieve my financial goals faster.

Conclusion

Cardlytics is a game-changer in the world of financial technology. Their personalized insights, rewards, and enhanced financial awareness tools have transformed my money management experience. I highly recommend Cardlytics to anyone looking to improve their financial well-being and achieve their financial goals. Five stars from a satisfied customer!

Unlock the Power of Data to Drive Targeted Marketing with Cardlytics

Introduction:

In today's digital landscape, marketers face the daunting task of reaching their target audience amidst a flood of information. Cardlytics, a leading provider of data-driven marketing solutions, empowers businesses with the insights and tools they need to cut through the noise and deliver personalized, high-impact campaigns.

Why Choose Cardlytics?

• Rich Data Source: Cardlytics analyzes billions of purchase transactions, providing businesses with a comprehensive view of their customers' spending habits, preferences, and lifestyle data.
• Targeted Marketing: By leveraging this data, Cardlytics enables marketers to segment their audience and deliver highly relevant offers and promotions that resonate with their specific needs.
• Measurable ROI: Cardlytics' advanced analytics platform tracks key performance indicators (KPIs), ensuring that campaigns are delivering tangible results and driving measurable ROI.
• Cross-Channel Integration: Cardlytics seamlessly integrates with all major marketing platforms, allowing businesses to execute integrated campaigns across multiple channels, including email, social media, and mobile.
• Partner Network: Cardlytics has established strategic partnerships with top financial institutions and retailers, providing businesses with unparalleled reach and access to potential customers.

Benefits of Partnering with Cardlytics:

• Increased Customer Engagement: Deliver personalized offers that engage your customers and build stronger relationships.
• Improved Campaign Effectiveness: Target your marketing efforts to the right audience, at the right time, with the right message.
• Measurable Results: Track campaign performance in real-time and make data-driven decisions to optimize results.
• Enhanced Customer Loyalty: Reward customers for their purchases and incentivize repeat business.
• Competitive Advantage: Gain a competitive edge by leveraging data and insights to outsmart competitors.

Get Started with Cardlytics

Visit our website at www.cardlytics.com to learn more about how Cardlytics can help you achieve your marketing goals. Schedule a consultation today to discuss how our data-driven solutions can unlock the power of your customer data and drive targeted, profitable campaigns.

Call to Action:

Don't miss out on the opportunity to transform your marketing strategy. Partner with Cardlytics today and unlock the power of data for unparalleled customer engagement, improved campaign performance, and measurable ROI.

Cardlytics' Main Suppliers (Upstream Service Providers)

Cardlytics outsources various aspects of its operations to external suppliers to provide efficient and scalable services. These suppliers play a crucial role in supporting the company's core business activities.

Key Suppliers

1. Data Providers

• Visa (https://www.visa.com/)
• Mastercard (https://www.mastercard.com/)
• American Express (https://www.americanexpress.com/)

Services Provided:

• Provide anonymized transaction data from credit and debit card purchases made by consumers.
• This data allows Cardlytics to track consumer spending patterns and identify potential marketing and engagement opportunities.

2. Bank and Credit Union Partners

• Hundreds of banks and credit unions across the United States

Services Provided:

• Integrate Cardlytics' platform into their online banking and mobile banking services.
• Allow Cardlytics to access transaction data and facilitate data-driven marketing campaigns to their customers.

3. Marketing and Advertising Partners

• Major retailers, financial institutions, and other brands

Services Provided:

• Provide targeted advertising campaigns to Cardlytics' users based on their spending behavior.
• Participate in Cardlytics' reward and loyalty programs, offering incentives to consumers for making purchases from participating brands.

4. Platform and Data Processing Vendors

• Amazon Web Services (AWS) (https://aws.amazon.com/)
• Cloudflare (https://www.cloudflare.com/)

Services Provided:

• Provide cloud computing infrastructure, data storage, and security services.
• Help Cardlytics manage and analyze vast amounts of data in real-time.

5. Analytics and Measurement Partners

• Adobe Analytics (https://marketing.adobe.com/resources/help/en_US/analytics/get-started/getting-started-analytics.html)
• Google Analytics (https://analytics.google.com/)

Services Provided:

• Provide insights and analytics on campaign performance and customer engagement.
• Help Cardlytics measure the effectiveness of its marketing efforts and optimize campaigns accordingly.

Supplier Relationship Management

Cardlytics maintains strong partnerships with its suppliers through ongoing communication, performance monitoring, and regular contract reviews. The company values collaboration and works closely with its suppliers to ensure alignment with its strategic objectives and deliver exceptional services to its customers.

Name: Banks and credit unions

Website: Not applicable (as they are not individual companies)

Description:

Cardlytics primarily serves financial institutions, including banks and credit unions. These institutions partner with Cardlytics to offer personalized marketing and rewards programs to their customers.

Key Customer Benefits:

Banks and credit unions benefit from partnering with Cardlytics in several ways:

• Increased customer engagement: Cardlytics helps banks and credit unions engage with their customers through personalized marketing campaigns and rewards programs.
• Improved customer retention: By providing value to customers through rewards and exclusive offers, Cardlytics helps banks and credit unions retain their customers and build long-term relationships.
• Increased revenue generation: Cardlytics partners with various retailers and brands who pay to advertise their products and services to bank and credit union customers. This generates revenue for the financial institutions, which can be used to fund other initiatives or passed on to customers in the form of lower fees or higher interest rates.
• Enhanced data insights: Cardlytics provides banks and credit unions with valuable insights into their customers' spending habits. This data can be used to improve customer segmentation, product development, and marketing strategies.

Examples of Main Customers:

• Bank of America
• Wells Fargo
• Chase
• Citibank
• Capital One
• USAA
• Navy Federal Credit Union
• Pentagon Federal Credit Union

Key Revenue Stream: Data Licensing

Estimated Annual Revenue: $300 million+ (as of 2023)

Overview:

Cardlytics' primary revenue stream is derived from licensing its proprietary data platform and insights to financial institutions and marketers. The company has built a massive database of anonymized transaction data from over 160 million banked consumers, providing access to insights on spending habits, brand preferences, and other key consumer behavior metrics.

How it Works:

• Data Collection: Cardlytics collects transaction data directly from financial institutions, including banks, credit unions, and prepaid card issuers. This data includes detailed information on purchases made by consumers, such as merchant names, transaction amounts, dates, and locations.
• Data Anonymization and Aggregation: The transaction data is anonymized to protect consumer privacy and aggregated to provide insights at the segment level. Cardlytics uses advanced machine learning and data science techniques to identify spending patterns, brand preferences, and other relevant consumer insights.
• Data Licensing: Cardlytics licenses its data platform and insights to financial institutions and marketers. Financial institutions use the data to improve customer relationship management, offer personalized financial services, and target marketing campaigns. Marketers use the data to gain insights on consumer behavior, identify new opportunities, and optimize their marketing campaigns.

Pricing Model:

Cardlytics has a subscription-based pricing model for its data licensing services. The pricing varies depending on the size of the financial institution or marketer, the amount of data accessed, and the specific insights required. Typically, larger institutions and those requiring more granular data pay higher subscription fees.

Growth Drivers:

The growth of Cardlytics' data licensing revenue stream is driven by several factors, including:

• Increased adoption of digital banking: As more consumers use online and mobile banking, Cardlytics has access to a larger pool of transaction data.
• Growing demand for consumer insights: Financial institutions and marketers are increasingly seeking data-driven insights to improve customer engagement and optimize marketing campaigns.
• Expansion into new markets: Cardlytics has expanded its operations into new markets, such as Canada, the United Kingdom, and Australia, increasing its potential customer base.

By leveraging its massive transaction data platform and advanced analytics capabilities, Cardlytics has established a strong position as a leading provider of consumer insights and data-driven marketing solutions.

Key Partners of Cardlytics

Cardlytics has established strategic partnerships with various financial institutions, retailers, and technology providers to enhance its services and reach a wider customer base. These key partners include:

Financial Institutions:

• Banks: Cardlytics partners with over 2,000 banks and credit unions, including Bank of America, Chase, Citi, PNC Bank, and Wells Fargo. These partnerships allow Cardlytics to access transaction data from financial accounts, which is essential for its personalized marketing platform.

• Credit Card Issuers: Cardlytics has partnerships with major credit card issuers such as American Express, Discover, Mastercard, and Visa. These partnerships enable Cardlytics to offer its services to a significant portion of credit cardholders in the United States.

Retailers:

• Major Retailers: Cardlytics has partnerships with leading retailers including Walmart, Target, Amazon, Home Depot, and Lowe's. These partnerships allow Cardlytics to provide targeted marketing offers based on the customer's purchasing history and preferences.

• Small and Medium-Sized Businesses: Cardlytics also offers its services to small and medium-sized businesses (SMBs). These partnerships enable SMBs to reach potential customers through personalized marketing campaigns.

Technology Providers:

• Data Analytics Platforms: Cardlytics partners with data analytics platforms such as Adobe, Google, and Salesforce. These partnerships allow Cardlytics to integrate its data insights into existing marketing campaigns and analytics platforms.

• Customer Relationship Management (CRM) Systems: Cardlytics has partnerships with CRM systems such as Salesforce and SAP. These partnerships enable Cardlytics to seamlessly integrate its marketing capabilities with customer relationship management systems.

• MarTech Platforms: Cardlytics partners with MarTech platforms such as Amplitude and Iterable. These partnerships allow Cardlytics to enhance its marketing automation capabilities and provide personalized experiences to customers.

Examples of Partnerships:

• Bank of America: Cardlytics has a long-standing partnership with Bank of America, providing personalized marketing offers to the bank's customers based on their transaction data.

• Walmart: Cardlytics has a partnership with Walmart, enabling the retailer to target customers with personalized discounts and offers based on their purchase history at Walmart stores.

• American Express: Cardlytics partners with American Express to offer targeted marketing campaigns to American Express cardholders, helping businesses reach a highly engaged audience.

• Adobe: Cardlytics has a partnership with Adobe, allowing Adobe Experience Cloud users to leverage Cardlytics' data and insights to enhance their marketing campaigns.

These strategic partnerships are crucial for Cardlytics' growth and success, as they provide access to a vast network of financial institutions, retailers, and technology providers. Through these partnerships, Cardlytics is able to offer personalized marketing solutions that drive measurable results for its clients.

Key Cost Structure and Estimated Annual Cost of Cardlytics

1. Data Acquisition and Processing: Acquiring and processing transaction data from financial institutions and other sources is a significant cost for Cardlytics. This includes costs for data licensing fees, data storage, and data analysis and processing.

• Estimated Annual Cost: $50 million - $75 million

2. Marketing and Advertising: Cardlytics invests heavily in marketing and advertising to reach its target audience. This includes costs for online and offline advertising, social media marketing, and content creation.

• Estimated Annual Cost: $30 million - $50 million

3. Technology and Platform Maintenance: Cardlytics' technology platform and infrastructure are critical to its operations. The company incurs costs for software development, data center operations, and ongoing platform maintenance.

• Estimated Annual Cost: $20 million - $30 million

4. Customer Service and Support: Cardlytics provides customer support to both financial institutions and consumers. This includes costs for call center operations, email support, and online self-service tools.

• Estimated Annual Cost: $10 million - $15 million

5. Sales and Business Development: Cardlytics incurs costs for sales and business development efforts to acquire new customers and expand into new markets. This includes costs for sales personnel, marketing materials, and travel expenses.

• Estimated Annual Cost: $10 million - $15 million

6. Regulatory and Compliance: Cardlytics is subject to various regulatory and compliance requirements, including data privacy and financial reporting regulations. The company incurs costs for legal and compliance professionals, audits, and regulatory filings.

• Estimated Annual Cost: $5 million - $10 million

7. Administrative and Overhead: Cardlytics incurs general and administrative expenses, such as salaries for non-sales employees, office space, and other operating costs.

• Estimated Annual Cost: $10 million - $15 million

Total Estimated Annual Cost: $135 million - $220 million

Additional Considerations:

• Cardlytics' cost structure may vary depending on factors such as the number of financial institutions it partners with, the size of its user base, and the competitive landscape.
• The above estimates are approximate and are based on publicly available information and industry benchmarks.

Sales Channels:

Cardlytics primarily generates revenue through two main sales channels:

• Direct Sales: The company sells its data and platform directly to banks and credit unions. These financial institutions integrate Cardlytics' solutions into their mobile and online banking platforms.
• Partnerships: Cardlytics establishes partnerships with other companies, such as data providers, financial advisors, and marketing agencies. These partners resell Cardlytics' solutions to their clients.

Estimated Annual Sales:

Cardlytics' estimated annual sales are not publicly disclosed. However, based on its financial performance and industry reports, estimates suggest the following:

• 2022: $250-$300 million
• 2023: $300-$350 million
• 2024: $350-$400 million

Channel Breakdown:

The relative contribution of each sales channel to Cardlytics' revenue is not publicly available. However, it is estimated that direct sales account for a majority of the company's sales. Partners and resellers are likely to contribute a smaller, but growing portion of revenue.

Geographic Distribution:

Cardlytics primarily operates in the United States, where it has a strong presence in the banking industry. The company is also expanding internationally, with operations in Canada and the United Kingdom.

Sales Process:

Cardlytics' sales process typically involves the following steps:

• Identifying potential clients
• Establishing relationships with key decision-makers
• Demonstrating the value of Cardlytics' solutions
• Negotiating contracts
• Implementing the platform
• Ongoing account management and support

Competitive Landscape:

Cardlytics faces competition from a number of companies in the data analytics and marketing technology space. Key competitors include:

• Quantcast: A data analytics and advertising technology company
• Experian: A credit reporting and marketing data provider
• Equifax: A consumer credit reporting agency
• TransUnion: A consumer credit reporting agency
• Nielsen: A market research and analytics company

Cardlytics' Customer Segments

Cardlytics primarily serves three customer segments:

1. Financial Institutions (FIs)

• Segment Description: Banks, credit unions, and other financial institutions that issue credit and debit cards to consumers.
• Estimated Annual Sales: Over $1 billion

2. Consumer Packaged Goods (CPG) Brands

• Segment Description: Manufacturers and retailers of food, beverage, personal care, household, and other consumer products.
• Estimated Annual Sales: Around $1 billion

3. Advertisers

• Segment Description: Businesses, such as retailers, restaurants, financial services companies, and travel providers, that use Cardlytics' platform to reach targeted customers.
• Estimated Annual Sales: Approximately $500 million

Customer Segmentation Details

1. Financial Institutions

Cardlytics partners with over 2,000 FIs, including:

• Tier 1 Banks: JPMorgan Chase, Bank of America, Wells Fargo
• Regional Banks: Huntington Bank, Fifth Third Bank, PNC Bank
• Credit Unions: Navy Federal Credit Union, Alliant Credit Union, PenFed Credit Union

2. Consumer Packaged Goods (CPG) Brands

Cardlytics collaborates with more than 1,500 CPG brands, encompassing a wide range of categories:

• Food: Nestlé, Kraft Heinz, Coca-Cola, PepsiCo
• Beverage: Starbucks, Anheuser-Busch InBev, Diageo
• Personal Care: Procter & Gamble, Unilever, Johnson & Johnson
• Household: Clorox, Kimberly-Clark, Unilever
• Other: Amazon, Walmart, Home Depot

3. Advertisers

Cardlytics offers its advertising platform to a diverse set of businesses:

• Retailers: Target, Walmart, Amazon
• Restaurants: McDonald's, Starbucks, Subway
• Financial Services: Capital One, American Express, Discover
• Travel Providers: Expedia, Booking.com, United Airlines

Estimated Annual Sales

Cardlytics' estimated annual sales are based on the following assumptions:

• FIs contribute around 60% of revenue (Over $1 billion)
• CPG Brands contribute approximately 60% of the remaining 40% (Around $1 billion)
• Advertisers represent the remaining 40% (Approximately $500 million)

Note: These estimates are approximate and may vary based on market conditions and other factors.

Value Proposition of Cardlytics

Overview

Cardlytics is a data-driven marketing and analytics platform that leverages bank transaction data to drive customer acquisition, engagement, and loyalty for businesses. It offers a unique value proposition by connecting banks, businesses, and consumers in a mutually beneficial ecosystem.

Key Value Propositions

For Banks:

• Increased revenue: Cardlytics generates incremental revenue for banks through its performance-based advertising model. Banks receive a share of the advertising revenue generated on their customers' transactions.
• Enhanced customer value: Cardlytics provides banks with valuable insights into their customers' shopping habits and financial behavior. This data can be leveraged to improve customer experiences and personalize marketing campaigns.
• Increased customer loyalty: Cardlytics helps banks retain customers by providing them with personalized offers and rewards that are tailored to their spending patterns.

For Businesses:

• Targeted advertising: Cardlytics enables businesses to reach highly targeted customers based on their transaction data. This allows businesses to deliver relevant ads at scale and achieve higher conversion rates.
• Measurable results: Cardlytics provides businesses with real-time performance metrics, enabling them to track the impact of their advertising campaigns and optimize their spend.
• Access to new customers: Cardlytics helps businesses acquire new customers by extending their reach to consumers who have made purchases from competing brands.

For Consumers:

• Personalized offers and rewards: Cardlytics provides consumers with personalized offers and rewards that are based on their actual spending habits. This results in a more relevant and rewarding shopping experience.
• Financial insights: Cardlytics helps consumers track their spending and identify areas where they can save money. This promotes financial literacy and empowers consumers to make more informed financial decisions.

Unique Differentiation

Cardlytics' unique value proposition stems from its exclusive access to bank transaction data. This data provides a rich and detailed picture of consumer spending behavior, enabling targeted advertising campaigns with unparalleled accuracy and effectiveness.

Ecosystem Model

Cardlytics operates a win-win-win ecosystem where banks, businesses, and consumers all benefit from its services. This creates a sustainable business model and ensures the long-term success of the platform.

Proven Track Record

Cardlytics has a proven track record of delivering value to its clients. The company has partnered with over 140 banks and 2,500 businesses, generating billions of dollars in incremental revenue for banks and driving significant customer engagement and loyalty for businesses.

Cardlytics, Inc. is a financial technology company that provides data-driven marketing solutions to the financial services sector. The company's platform allows banks and credit unions to target their customers with personalized marketing offers based on their spending habits. Cardlytics generates revenue by charging banks and credit unions a fee for each offer that is redeemed.

Cardlytics has a number of risks associated with its business. These risks include:

• Competition: Cardlytics faces competition from a number of other companies that provide similar services. These competitors include Neustar, Epsilon, and Conversant.
• Regulatory risk: Cardlytics is subject to a number of laws and regulations that govern the financial services industry. These laws and regulations could change in the future and could have a negative impact on Cardlytics' business.
• Data privacy risk: Cardlytics collects a significant amount of data on its customers' spending habits. This data could be used by Cardlytics to create targeted marketing offers, but it could also be used for other purposes, such as identity theft.
• Credit risk: Cardlytics' customers are banks and credit unions. If these customers experience financial difficulties, they may not be able to pay Cardlytics for its services.

Cardlytics has a number of strengths that help it to mitigate these risks. These strengths include:

• First-mover advantage: Cardlytics was one of the first companies to offer data-driven marketing solutions to the financial services sector. This has given the company a significant advantage over its competitors.
• Strong customer relationships: Cardlytics has strong relationships with its customers. These relationships are based on trust and mutual benefit.
• Data analytics expertise: Cardlytics has a team of data scientists who are experts in analyzing customer spending habits. This expertise allows Cardlytics to create highly targeted marketing offers.
• Compliance with laws and regulations: Cardlytics is committed to complying with all applicable laws and regulations. The company has a strong track record of compliance and is regularly audited by independent third parties.

Overall, Cardlytics is a well-positioned company with a number of strengths. However, the company also faces a number of risks. Investors should carefully consider these risks before investing in Cardlytics.