Update on the likelihood of Bank of America (BofA) renewing, and discussions on Figg and Rewards Network, following the January 2022 Needham Growth Conference presentation.
I believe we do now know with certainty that no one else in BofA has access to the purchase data. Regardless if was originally Figg using Rewards Network in BofA, or simply Rewards Network directly, it sounds like neither would have received purchase data from the BofA. This is why Cardlytics started to push the Rewards Network content, to be able to use the bank data for targeting. This also lines up with why the original testing was likely not going well, since it was not using purchase data.
This whole situation will likely end up being great for Cardlytics, and is helping their negotiation leverage with the new BofA contract. Also, it has been a great test of Cardlytics versus competitors, and I believe investors are learning a lot of positive aspects about Cardlytics' business, such the moat with data, as you mentioned.
I love the fact that we solely need to lay back and wait. What an incredible service and what an amazing execution. With the dip in prices, I managed to buy shared so that CDLX makes up 25% of my portfolio. It's amazing how research lowers risk. This is one of the twenty punch holes in the card. Thanks for all your inputs, they keep filling that extra 10% of things I miss.
Thanks for the update Austin! It would be incredible to know with certainty that Figg did not use purchase data. CDLX = monopoly?
No problem!
I believe we do now know with certainty that no one else in BofA has access to the purchase data. Regardless if was originally Figg using Rewards Network in BofA, or simply Rewards Network directly, it sounds like neither would have received purchase data from the BofA. This is why Cardlytics started to push the Rewards Network content, to be able to use the bank data for targeting. This also lines up with why the original testing was likely not going well, since it was not using purchase data.
This whole situation will likely end up being great for Cardlytics, and is helping their negotiation leverage with the new BofA contract. Also, it has been a great test of Cardlytics versus competitors, and I believe investors are learning a lot of positive aspects about Cardlytics' business, such the moat with data, as you mentioned.
I love the fact that we solely need to lay back and wait. What an incredible service and what an amazing execution. With the dip in prices, I managed to buy shared so that CDLX makes up 25% of my portfolio. It's amazing how research lowers risk. This is one of the twenty punch holes in the card. Thanks for all your inputs, they keep filling that extra 10% of things I miss.