Cardlytics Inc (NASDAQ:CDLX), a company hoping to revolutionize the field of data-based marketing, is preparing for an IPO which could net the company more than $75 million, should investors see promise in its future. Cardlytics intends to offer some 5,400,000 shares during the IPO, and will be aiming for share prices between $13 and $15.
A tech pioneer in 2018
Besides the fact that the IPO could net Cardlytics’ early backers some serious cash, many market onlookers are keeping an eye on it as they try to gauge what the tech scene will be like during the rest of the year. Cardlytics could very well be the first blockbuster tech IPO of 2018, and history has shown that earlier market pioneers often garner serious investor interest before having their shares shoot up.
But does Cardlytics have what it takes to succeed in the marketplace long-term? Its critics certainly can’t fault the company’s revenue stream; Cardlytics had an impressive revenue of $113 million in 2016 alone, for instance, and the company has raised more than $200 million since its inception. In the tech scene, it’s vital that companies keep a steady flow of capital available to finance their innovation, and it’s clear to see that Cardlytics is having no trouble attaining the necessary cash flow needed to push forward with its products.
There are still serious hurdles to Cardlytics’ success in the market, however; the company has suffered from ongoing losses, and will need to start turning profits if it hopes for investors to stick around with it for long. Similarly, many corporate-minded investors concerned about the internal cohesiveness of a company may cast sideways glances at Cardlytics, given that the company laid off a sizable minority of its workforce recently in a shakeup.
The advertising guru’s reshaping of its corporate structure could turn out to be a long-term boom, however, if it ends up cutting cost and putting better employees in leadership positions. Furthermore, Cardlytics’ industry stands to grow massively over the forthcoming years, as digital advertising is increasingly taking global markets by storm. Retailers, restaurants, banks, and other service providers find Cardlytics’ services invaluable when it comes to reaching prospective customers, and it’s likely the company will enjoy a healthy industry for the foreseeable future.
The future of data analytics
Just mentioning the words “data analytics” often sends investors’ heads into a spin; people everywhere seem to be going crazy for data, and Cardlytics is one of the few companies with a comprehensive understanding of data analytics that could allow it to flourish for years to come. With digital advertising reaping some $83 billion in 2017 alone, it’s clear to see that there’s a massive pot of money out there waiting for any company savvy enough to find it.
Despite its recent net-losses, Cardlytics may be the company poised to exploit data analytics and marketing data for success. Cardlytics is particularly crafty when it comes to establishing lucrative partnerships, too; the company has a long-standing relationship with Bank of America (NYSE:BAC), its largest customer, and Cardlytics is likely to see a demand for its services in the banking sector rise in the future.
Data is as valuable in the banking industry as anywhere else, and Cardlytics stands alone when compared to the competition when it comes to providing professional data analytics services, though its likely to face more competition in the future as the industry heats up. As the company made clear in its S-1 filings with the SEC, it sees plenty of room for growth in its future, and intends to keep pursuing partnerships that will land it positive press alongside of new revenue streams.
Those investors who aren’t techies shouldn’t be daunted by their unfamiliarity with Cardlytics’ services; the company essentially acts as a massive data aggregator, collecting information from thousands of institutions which it can use to identify potential customers for engagement rings and various businesses. In the era of digital advertising, that kind of service will fast prove invaluable, as companies everywhere are adopting micro-targeting strategies that rely on advertising only, but directly to those consumers most likely to pick up their products.
The Atlanta-based company has already analyzed data from over 18 billion online and brick-and-mortar transactions, a mammoth figure that’s only likely to grow as its services become more widespread. If Cardlytics can solve its ongoing net losses dilemma, ideally by forming more lucrative partnerships like that it current has with Bank of America, the company could stand to have a hugely lucrative future on the market. Investors with an eye on the tech scene can’t afford to miss Cardlytics IPO; the company’s performance during its market debut could stand to serve as a weather vane for the future of the industry as the rest of the year carries out. Cardlytics’ path isn’t without hurdles, but the company is clearly roaring full-throttle towards a healthy IPO.