Cardlytics, Inc. Common Stock · NASDAQ:CDLX
Cardlytics, Inc. Common Stock — Investor Day (June 2021)
76 slides from Cardlytics, Inc. Common Stock's investor day presentation, Jun 10, 2021
Slide 1: Cardlytics Investor Day
01 Cardlytics Investor Day June 2021 1
Slide 2: Disclaimer
02 Disclaimer This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding expectations about future financial performance or results of Cardlytics, Inc. (“Cardlytics,” “we,” “us,” or “o
Slide 3: Cardlytics strategy
03 Cardlytics Cultivate and expand + Drive engagement with existing MAUs to keep partners happy strategy our partnerships and + Launch new MAUs with focus on profitability and engagement to demonstrate more operating leverage user base to drive + Upgrade all partners to the new user experience to he
Slide 4: Topics for today
04 Topics for today 01 Product and Strategy 02 Revenue and Customer Success 03 Financial Partnerships 04 International Business 05 The Bridg Platform
Slide 5: Product and Strategy
05 01 Product and Strategy Michael Akkerman, Chief Product and Strategy Officer
Slide 6: Product is enabling the Cardlytics engine
06 Product is enabling Customers Receive highly personalized the Cardlytics engine and relevant cash-back offers, uniquely available on the platform. Driving key company initiatives: + Enhancing advertiser value + Enriching our bank partnerships + Driving consumer engagement Advertiser Bank Delight
Slide 7: We are an ad platform in banks' digital channels
We are an ad platform in banks’ digital channels. 7 © 2021 Cardlytics
Slide 8: With all of the reach, but none of the noise
08 With all of the reach, We connect advertisers to an engaged audience in a brand-safe environment. but none of the noise 11 Avg online banking logins per month1 45% Worldwide increase in time spent on finance apps2 85% Avg percentage of weekly logins3 168M MAUs 1See page 5 of Q1 2021 Cardlytics ea
Slide 9: Our ecosystem benefits all parties
09 Our ecosystem Deliver results aligned to objectives benefits all parties Diversity of Increased investment advertisers in program More Greater LTV content Maximizing value and delivering results for consumers, advertisers, and banks. More 30% Better engagement optimization Relevant, Deliver perso
Slide 10: To unlock growth, we put the needs of our customers first
010 To unlock growth, we put the needs of our customers first Through simplifying their experiences and removing friction, we future-proof our platform.
Slide 11: The Product team
011 The Product team Product Management Product Strategy Product Marketplace & Optimization Pankaj Lakhotia Joy Ho Prajit Prakash VP, Ads Product VP, Product Strategy VP, Pricing & Optimization Previously: Amazon, WeWork, Previously: Pinterest, Facebook Previously: Facebook, Amazon AppNexus, AOL, De
Slide 12: 2020 and 2021 team investments
012 2020 and 2021 team investments Building a team of experts to execute and scale. 5x Ads Data & FS & measurement fintech Product Product analytics marketing User Product experience design Team growth since Specialized Introduce and consolidate December 20191 expertise new disciplines 1 December 20
Slide 13: Ensure consumers, advertisers, and bank partners gain daily value
013 Ensure consumers, advertisers, and bank partners gain daily value through Cardlytics products.
Slide 14: The Cardlytics Purchase Graph
014 The Cardlytics Purchase Graph An intelligent and dynamic map of where shoppers and merchants meet, powered by transaction data Personalized allocation and optimization. A unique set of relevant offers for each user. ID graph Merchant graph Each account’s unique Each advertiser’s purchase prefere
Slide 15: The advertiser experience
015 The advertiser experience
Slide 16: Cardlytics can compete in the broader digital ads landscape
016 Cardlytics can compete in the broader digital ads landscape Automation Simplification Measurement Insights Creative
Slide 17: Introducing Cardlytics Ad Manager
017 Introducing Cardlytics Ad Manager Key features: + Streamlined campaign creation & management, mirroring industry norms + Standardized targeting options to align with marketing objectives + Dynamic, machine-learned ad serving, powered by the CDLX Purchase Graph + Customizable and accessible campa
Slide 18: Welcome to Cardlytics Activate Platform
Welcome to Cardlytics Activate Platform cardlytics
Slide 19: Introducing Cardlytics Ad Manager
019 Introducing Cardlytics Ad Manager + Paving a path to managed self-service and fully self- service (SMBs) + Reducing time to market and time to revenue + Providing direct access for scaled agency partners + Localization for global markets + Flexibility to accommodate future features (new ad forma
Slide 20: The consumer experience
020 The consumer experience
Slide 21: The consumer journey
021 The consumer journey Awareness Comprehension Consideration Activation Redemption Post-redemption I’d like to save I’d like to I’d like to browse I’d like to choose I’d like to make a I’d like reward money. understand how relevant offers and offers where I’ll purchase and earn confirmation and to
Slide 22: Cardlytics customer experience demo
022 Cardlytics customer experience demo
Slide 23: Preliminary US Bank results are promising
023 Preliminary US Bank results are promising Best-in-class features adopted by US Bank at launch show strong initial performance compared to other bank launches + 1 in 2 Consumers activated an offer in their first two weeks from the Rewards Hub, in the same session1 + Visits to Rewards Hub increase
Slide 24: These strategic investments enable these core growth vectors
024 These strategic investments enable these core growth vectors Diversify demand Diversify supply Expand global footprint Get more content by Get more publishers Lay the foundation for bringing on: onboard: globalization: + More, diverse advertisers + Traditional FI partnerships + Easy localization
Slide 25: Thank You
025 Thank You Questions?
Slide 26: Revenue and Customer Success
026 02 Revenue and Customer Success Ross McNab, President of North American Advertising
Slide 27: Monetizing today, positioning for future growth
027 Monetizing today, Customers positioning for future Receive highly personalized and relevant cash-back offers, uniquely available on the growth platform. Key focus: + Focus on right-to-win advertisers, today + Unlock growth segments + Adding a complementary SaaS and recurring revenue orientation
Slide 28: Capitalizing on tailwinds and our unique value
028 Capitalizing on tailwinds and our Proven unique value Return Incremental + Omnichannel + Validation Scale
Slide 29: Restructured and leveled-up our team with key hires
029 Restructured and leveled-up our team with key hires Sales Leadership Strategy, Operations & Readiness Analytics & Operations Enterprise, emerging and client success Creating leverage Team of consultative strategists to drive solutions Jared Luskin Peter Davies Warren Hearnes SVP, Sales Strategy
Slide 30: Building the right machine in support
030 Building the right machine in support Sales Process Training and Revenue Partner Program + Reducing friction Enablement Marketing + Incenting higher + Investing in our talent + Repeatable client value longer term acquisition deals
Slide 31: Leading indicators show we are on the right track
031 Leading indicators show we are on the right track 80+ advertisers worth $1m+1 56% win rate2 1/3 of our won opportunities are long-term3 2x new business4 1 3 Data as of June 2021 Year to date; long term is greater than 10 month agreements 2Year-to-date 2021 compared to same time period 2020 4Year
Slide 32: Core and Emerging segments
032 Core and Emerging We serve three groups of advertisers: Enterprise, Agency, segments and Commercial. Enterprise & Mid-Market Agency Commercial Core Emerging High Touch Self-Service
Slide 33: Focus by industry and advertiser
033 Focus by industry and advertiser Travel & Grocery & eCommerce & Retail – Big Box Retail – Specialty Restaurant Entertainment Convenience Subscription . Agency
Slide 34: Gas and Convenience
34 034 Gas and Convenience
Slide 35: Retail
35 035 Retail
Slide 36: eCommerce and Subscription
36 036 eCommerce and Subscription
Slide 37: Grocery
37 037 Grocery
Slide 38: Thank You
041 Thank You Questions?
Slide 39: Break
042 Break 5 minutes
Slide 40: Financial Partnerships
043 03 Financial Partnerships Farrell Hudzik, EVP of Financial Institutions
Slide 41: Cardlytics differentiates in the power of a value exchange network
044 Cardlytics differentiates Customers Receive highly personalized in the power of a value and relevant cash-back offers, uniquely available on the exchange network platform. Unique value creation for banks: + Engage cardholders at key moments in the lifecycle + Deliver total relationship value 10x
Slide 42: Restructured and leveled-up our team with key hires
045 Restructured and leveled-up our team with key hires Bank Partnerships Solutions & Insights Success & Services Senior relationship managers and sales team Team of consultative strategists to drive solutions Seasoned CDLX leader to drive client success and day to day support Sean Welsh Randy Rodri
Slide 43: Banks are asking for more of what we do best
046 Banks are asking for more of what we do best + + + More Differentiated More Content Content Engagement
Slide 44: We are heavily investing into our major US bank relationships
047 We are heavily investing into our major US bank relationships + Evolving the program with our major banks + Expanding offer and loyalty experiences + Enhancing user experiences and engagement
Slide 45: US Bank
048 US Bank + Successful launch + First bank with new platform and UI + Great early engagement reads + Co-brand is next
Slide 46: The big banks
The big banks Go So
Slide 47: We are committed to serving and growing our neobank and fintech partners
050 We are committed to serving and growing our neobank and fintech partners + Expecting to double number of signed neobanks by end of year + Co-partners in rapid innovation + Delivering unique and flexible solutions
Slide 48: Looking forward
051 Looking forward 2022 and beyond + Aligning around future SKU/transaction integration opportunities with Bridg + Evaluating additional product and services to deliver value to our bank partners + Bringing on local content and commerce experiences + Deepening opportunities with non-bank partners
Slide 49: Takeaways
052 Takeaways Significantly grew Large bank partner Focus on large Investing for the and restructured relationships are neobanks to future to deliver our team to support thriving continue driving banks customer and expand partner rapid innovation & loyalty and relationships MAU growth engagement
Slide 50: Thank You
053 Thank You Questions?
Slide 51: Break
054 Break 15 minutes
Slide 52: International Business
055 04 International Business Peter Gleason, President of International Operations
Slide 53: Focusing on a profitable UK and expansion of the international platform
056 Focusing on a profitable Customers UK and expansion of the Receive highly personalized and relevant cash-back offers, uniquely available on the international platform platform. Key focus areas: + UK business performance + International expansion + Open Banking Advertiser Bank Delight the client
Slide 54: Experienced team creating a culture of high performance
057 Experienced team creating a culture of high performance Client Partnerships Commercial Development New Capabilities Developing senior relationships between publishers Driving profitable platform and advertiser sales Making innovation happen and advertisers Campbell Shaw Duncan Smith Jed Murphy H
Slide 55: International Business focused on 3 distinct areas
058 International Business focused on 3 distinct areas UK Business International expansion Open Banking + Positive trends post-pandemic + Identifying geographies for + White Label platform for non-FI + Focus on profitability new operations publishers + Addition of new MAUs + Open Banking as market-e
Slide 56: Open Banking launch update
059 Open Banking launch update
Slide 57: What is Open Banking?
060 What is Open Banking? + Open Banking came into effect across Europe in 2018 + Designed to drive increased competition within financial services + Makes consumer’s financial data portable + Provides a secure way for consumers to share their payment data with regulated 3rd parties + Evolving towar
Slide 58: Why Open Banking is important to Cardlytics
061 Why Open Banking is important to Cardlytics Momentum is growing globally New publisher network + Open Banking now live across Europe, Asia, + Diversifies supply base by securing non-bank Australia, providing additional opportunities MAUs for international expansion + Secures MAUs with no revenue
Slide 59: Open Banking data enables targeted offer programs
Open Banking data 062 enables targeted offer programs Accessible across all Spend data payment accounts for merchants Up to 3 years' worth of + Providing targeted offers, based on their everyday transactional spend, acts as a real value exchange for customers to spend data securely allow access to t
Slide 60: Sainsbury's "Nectar Connect" rolled-out June 2nd
063 Sainsbury’s “Nectar Connect” rolled-out June 2nd Sainsbury’s Nectar Nectar Connect + UK’s second largest grocer + Largest UK coalition loyalty + Largest UK Open Banking launch programme - 19m customers Public data from 2021 Sainsbury filings
Slide 61: Nectar Connect Demo
064 Nectar Connect Demo
Slide 62: 065
065
Slide 63: Successful "Nectar Connect" soft-launch
066 Successful “Nectar Connect” soft-launch + + + 65,000+ customers 100m+ historical 2,000+ redemptions registered Open Banking and 760k Nectar transactions points issued Data from June 2, 2021 through June 9, 2021
Slide 64: Thank You
067 Thank You Questions?
Slide 65: The Bridg Platform
068 05 The Bridg Platform Amit Jain, Founder and CEO of Bridg
Slide 66: Unknown Customer
069 Unknown Customer Brick and mortar retailers don’t know who their in-store customers are
Slide 67: Loyalty programs
070 Loyalty programs Identify the customer Omni-channel Targeted marketing and track purchases personalization and measurement
Slide 68: The Challenge
071 The Members ~19M Challenge Customers ~130M only ~15% of consumers sign up for loyalty and rewards programs Coffee Retailer Based on publicly filed materials of a large coffee retailer as of Q1 2021
Slide 69: Bridg is the first platform that identifies and engages unknown in-store customers
072 Bridg is the first Unique ID 1400 platform that Female identifies and $100k income engages Married Age 37 unknown in- store customers
Slide 70: How it works
073 How it works + POS systems do not capture full credit or debit card information + Prevents brick-and-mortar retailers from connecting the card to an actual human being + Bridg’s technology allows customers across industries to “bridge” this gap
Slide 71: Individual Profiles
074 CRM of in-store Individual customers with SKU level purchase history and rich attributes Profiles Utilizing client Point of Sales (POS) transaction 0x5f4dcc3b5aa765d data, Bridg identifies an individual in-store customer behind a transaction and builds an anonymous, privacy-safe profile includin
Slide 72: Actionability
075 Actionability Customer Analytics + Clients have access to historical SKU level history and demographic, socioeconomic, and attitudinal attributes for customer analytics Targeted Marketing + Ability to segment profiles, create audiences, and export those audiences to 200+ marketing destinations f
Slide 73: How it works for CPG
076 How it works for CPG Secure peer-to-peer data sharing Analytics Retailer 1 Retailer 1 CPG Company CPG Advertising Customer Customer Company Database Database Audience Other Retailers $
Slide 74: Thank You
077 Thank You Questions?
Slide 75: Tying it to financial goals
078 Tying it to Expand Our Reach financial goals + Increase our MAUs both domestically and abroad Increase ARPU + Grow ARPU by expanding advertiser Build our presence as a reach and capabilities leading digital marketing Demonstrate Operating Leverage platform that creates + Capitalize on our invest
Slide 76: Thank You
079 Thank You Questions?