If you’ve been following the CDLX story for >2 quarters this is the 2nd 40% drawdown you’ve seen, which while not particularly fun, isn’t particularly surprising.
“I’d imagine Chase is up more than that 30% as well given they have ADE+images+bank lean in.”
I think this is key. Understanding what’s going on underneath is really helpful. The real bear case in my opinion has always been banks won’t prioritize it and they won’t be able to drive engagement. But Chase is certainly growing quickly after prioritizing. So if they can get WF and BofA to buy in and rollout Amex, then in theory we should start to see overall growth rates really accelerate.
In my view Chase Media solutions is simply a continuation of something Chase has been doing for years - continuing to build out their internal offers and merchant analytics platform. To date the amount of offers they have provided is very limited and likely a value add to merchants vs attempts to replace CDLX. I think it makes more sense for banks to be specific with their internal programs and let CDLX provide the infrastructure and most everyday spend offers
Have an inkling that market will punish them since I view the recent 200% runup on the Amex news announcement as a bit speculative with fundamentals improvement still several Qs away.
“I’d imagine Chase is up more than that 30% as well given they have ADE+images+bank lean in.”
I think this is key. Understanding what’s going on underneath is really helpful. The real bear case in my opinion has always been banks won’t prioritize it and they won’t be able to drive engagement. But Chase is certainly growing quickly after prioritizing. So if they can get WF and BofA to buy in and rollout Amex, then in theory we should start to see overall growth rates really accelerate.
Great post and insightful discussion. Thanks!
My 5 cents: they should simply stop issuing quarterly guidance.
Agree regarding revenue, but billings and adjusted contribution would be nice
Hm, I see where you are coming from, however I don't mind not having guidance and simply rely on tracking quarterly and annual performance.
Thanks for sharing. Great post, insightful as always.
Q1 results were incredibly frustrating. It didn’t make sense to me how you could miss your own guide 2 weeks out from reporting!
Was pleased to hear that CDLX cleaned up their balance sheet regardless.
Let’s see how Q2 goes….the story continues.
How might the launch of Chase Media Solutions impact CDLX's business with Chase?
This was discussed by @noyesclt on Twitter:
https://media.chase.com/news/chase-launches-chase-media-solutions
In my view Chase Media solutions is simply a continuation of something Chase has been doing for years - continuing to build out their internal offers and merchant analytics platform. To date the amount of offers they have provided is very limited and likely a value add to merchants vs attempts to replace CDLX. I think it makes more sense for banks to be specific with their internal programs and let CDLX provide the infrastructure and most everyday spend offers
Have an inkling that market will punish them since I view the recent 200% runup on the Amex news announcement as a bit speculative with fundamentals improvement still several Qs away.