Cardlytics ($CDLX): Bridg Launches Rippl Data and Media Network (Research Note #190)

Discussions on Bridg's new retail media network product, Rippl.

Market Cap as of 8.29.2023: ~$13.86 / Share x 37.7 Shares ~ $523M Market Cap.

(#190) 8.29.2023: Bridg Launches Rippl Data and Media Network

On 8.17.2023, CDLX announced the launch of Bridg’s new product, Rippl.

In this post I will discuss:

1. Potential Financial Impact

2. Background (about RMNs + previous comments by Karim)

3. About Rippl

   1. Rippl Description

   2. Bridg Bureau

   3. Solving the Issue of Lack of Scale and Data

   4. Universal Media Inc. (UMI) Partner

   5. Solving the Issue of Lack of Standardization for Advertisers

   6. Additional Benefits for Retailers

   7. Comments by Amit Gupta (CDLX COO and Bridg GM)

   8. Schnucks

   9. National Retail Solutions (NRS) Partner

4. Replicability / Scale Benefits / Optionality

5. Dollar General vs Schnucks

6. Other Regional Grocery Chains

7. Other Regional Gas Stations

8. Payment Model for Rippl

1. Potential Financial Impact

I thought it would be best to start with a could different scenarios to understand the potential financial impact of Rippl to CDLX.

If the opportunity here was very limited, leading to very little additional cash flow for CDLX, then this would not be of much interest.

However, I do not think that is the case. Instead, I think not only is the opportunity large, but the potential for large incremental free cash flow has a high probability of occurring (for the reasons discussed next).