SALE/CRTO

RetailMeNot Inc.

TMT


Presented:05/14/2014
Price:$29.71
Cap:$1.60B
Current Price:$11.58
Cap:$0.56B

Presented

Date05/14/2014
Price$29.71
Market Cap$1.60B
Ent Value$1.44B
P/E Ratio36.86x
Book Value$9.30
Div YieldN/A
Shares O/S53.72M
Ave Daily Vol1,210,000
Short Int3.39%

Current

Price$11.58
Market Cap$0.56B
RetailMeNot, Inc. operates a digital coupon marketplace. Its marketplace connects consumers with retailers and brands. The company owns and operates digital coupon Websites, including RetailMeNot.com in the United States; VoucherCodes.co.uk in the United Kingdom; and Bons-de-Reduction.com, Poulpeo.com, and Ma-Reduc.com in France. Its Websites, mobile applications, email newsletters, alerts, and social media presence enable consumers to search for, discover, and redeem relevant digital coupons from retailers and brands for various product categories comprising clothing, electronics, health and beauty, home and office, travel, food and entertainment, personal and business services, and shoes. The company was founded in 2007 and is headquartered in Austin, Texas.

Publicly traded companies mentioned herein: RetailMeNot, Inc. (SALE), Criteo SA (CRTO), AOL Inc. (AOL), Google Inc. (GOOG), Amazon.com (AMZN), Conversant, Inc. (CNVR), Coupons.com Incorporated (COUP), Facebook.com (FB)

Highlights

Google and AOL recently acquired Adometry and Convertro, respectively. These targeted firms both happen to be focused on ad attribution, and the ironically coincident moves (which were both announced on 5/6) represent a catalyst that the presenter believes is bearish for RetailMeNot (SALE), and Criteo (CRTO). While the exact timing of the impact on SALE and CRTO is difficult to gauge, the potential structural shift from last-click attribution to multi-click should pressure margins as the acquired businesses are integrated into the larger advertising platforms. “Less credit” will be given to SALE, and CRTO’s model may not be as effective at driving traffic over time because as the shift towards multi-click attribution unfolds, retailers will also focus on how they want to deliver coupons/ discounts to consumers (i.e., using better targeting, as opposed to “spraying”).

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Idea Discussion

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