Cardlytics ($CDLX): AmEx and Capital One Interview About CDLX (Research Note #214)

Notes and thoughts on the recent call regarding AmEx Offers and Capital One Shopping, with comparisons and discussions related to CDLX.

Market Cap as of 12.14.2023: ~$8.47 / Share x 39.3M Shares ~ $333M Market Cap.

(#214): AmEx and Capital One Interview About CDLX

This was one of the more insightful interviews I have read in a while. There was a lot of information I had not heard anywhere else.

On December 4, 2023, a new In Practise transcript was released, with the Former Director Amex Offers at American Express, in an interview called, “Cardlytics & American Express: A Card-linked Offers Comparison”.

For additional context on what will be discussed, this former director of AmEx is now at Capital One. Therefore, a portion of the discussion is also on Capital One.

More specifically, in this CDLX Research Note I will be discussing and providing commentary / thoughts / additional notes on the following:

1. AmEx’s Previous Pilot of CDLX Offers (details I have never heard before)¹

   • AmEx Testing an API with CDLX

   • Background on the AmEx Pilot of CDLX Offers

   • AmEx Merchant Team

   • Details on the Past Pilot

   • Targeting vs Sharing

   • Benefits of Open Banking for CDLX (According to former AmEx director)

   • What CDLX Needs to Add

2. AmEx Offers vs CDLX Offers (strengths and weaknesses of both)²

3. Business Insights Provided by AmEx to Clients³

4. Who Funds AmEx Offers⁴

5. AmEx Attracting New Users + Focus on Recurring Payments⁵

6. Co-Brands⁶

7. Structure of AmEx Offers (and how they make money)⁷

8. How AmEx Views Their Offers (and the opportunity for CDLX)⁸

9. AmEx Offers Algorithm⁹

10. Different Types of AmEx Campaigns¹⁰

11. AmEx Incrementality and Reporting¹¹

12. Tender Switching (and the opportunity for CDLX)¹²

13. Engagement of AmEx Users (and the opportunity for CDLX)¹³

14. AmEx SKU Offers (and the opportunity for CDLX)¹⁴

15. Future State of CDLX Offers¹⁵

16. Capital One vs AmEx / CDLX¹⁶

17. Capital One Shopping¹⁷

18. Capital One’s Thoughts on Using CDLX¹⁸

19. CDLX Dashboards¹⁹

20. Closing²⁰

You can simply read this in order, but for my own benefit with referencing this in the future I used footnote links to be able to quickly go to a given section. View this post in a browser to use the footnote links to go to a specific section.