Thank you Alejandro for your comprehensiv view on $CDLX. It really helps to understand the business model very well. And the idea behind $CDLX is very convincing. What I do not understand is the not so convincing development of the business figures. "Just" 15% top line CAGR since 2018 and far away from profitability. Could you comment on that? Thanks in advance. By the way, I am invested in an ad tech company as well. Verve Group SE (former Media & Games SE) is a leading in-app ad platform (ios and google store in North America and Europe), that grew by more than 50% (organic and anorganic) in a comparable time span, is profitable and has a PER of less than 10 on the basis of last years earnings. Much more competition but less dependencies on a few customers.
Lifting ARPU is the goal and challenge. So far, the process of integrating new advertisers has historically been manual. As the platforms becomes more automated, we should see this number grow. I'll also point out that with Amex joining the channel soon (probably Q4) we will see a large bump in revenue, but, once again, this will be caused by the addition of users.
Verve looks interesting, but the most important factor in advertising is controlling the platform and not the ads. Showing ads in third party apps can be disrupted tomorrow by a new innovation. In contrast, changing the behavior of banks and substituting Cardlytics is very costly.
P.S. If you like Verve, you might be interested in Perion Network (PERI)
Thanks for your response, Alejandro. It will be interesting to see, if Cardlytics can boost the ARPU and how expenses develop. I completely agree with you on the comparison of the Verve and Cardlytics business models. I also don't see Verve as a long-term investment but rather something for the shorter to medium term. I know Perion by name, but have not looked into it in detail. As I am quite well invested in Verve, I don't need another company from the ad-tech sector at the moment ... ;-)
Thank you Alejandro for your comprehensiv view on $CDLX. It really helps to understand the business model very well. And the idea behind $CDLX is very convincing. What I do not understand is the not so convincing development of the business figures. "Just" 15% top line CAGR since 2018 and far away from profitability. Could you comment on that? Thanks in advance. By the way, I am invested in an ad tech company as well. Verve Group SE (former Media & Games SE) is a leading in-app ad platform (ios and google store in North America and Europe), that grew by more than 50% (organic and anorganic) in a comparable time span, is profitable and has a PER of less than 10 on the basis of last years earnings. Much more competition but less dependencies on a few customers.
Thanks for the comment Philipp! If you look at this section (https://hrmt.substack.com/i/145317249/cardlytics-versus-the-world) you'll see that Cardlytics has historically depended on users joining the platform.
Lifting ARPU is the goal and challenge. So far, the process of integrating new advertisers has historically been manual. As the platforms becomes more automated, we should see this number grow. I'll also point out that with Amex joining the channel soon (probably Q4) we will see a large bump in revenue, but, once again, this will be caused by the addition of users.
Verve looks interesting, but the most important factor in advertising is controlling the platform and not the ads. Showing ads in third party apps can be disrupted tomorrow by a new innovation. In contrast, changing the behavior of banks and substituting Cardlytics is very costly.
P.S. If you like Verve, you might be interested in Perion Network (PERI)
Thanks for your response, Alejandro. It will be interesting to see, if Cardlytics can boost the ARPU and how expenses develop. I completely agree with you on the comparison of the Verve and Cardlytics business models. I also don't see Verve as a long-term investment but rather something for the shorter to medium term. I know Perion by name, but have not looked into it in detail. As I am quite well invested in Verve, I don't need another company from the ad-tech sector at the moment ... ;-)