Today, we are breaking down Sky Mavis, the company behind the NFT-based game, Axie Infinity. Built by a team with a long history in gaming, Axie Infinity was launched in 2018 with the idea that a blockchain-based “play-to-earn” model could create more aligned incentives between game creators and game players long-term. Axie is one of the most incredible examples of speed-to-scale I’ve seen, with the game reporting $100,000 of revenue in January, over $190,000,000 of revenue in July, and over $360,000,000 in August. In this breakdown, we cover the basics of Axie and how gameplay is similar to classics such as Pokemon. We dive into the economic model, how Sky Mavis generates revenue, how players earn money, and how this is all enabled by the blockchain. We discuss the importance of gameplay vs. the economic ecosystem and examine the sustainability of Axie from various angles. To help break down Sky Mavis, Patrick O’Shaughnessy is joined by Aleksander Larsen, co-founder of Sky Mavis, and Stephen McKeon, Partner at Collab+Currency, an early investor in Sky Mavis. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:03:00] - [First question] - How many people are playing Axie and how quickly it’s grown[00:04:03] - What play-to-earn means and how money flows through a digital ecosystem[00:05:03] - A basic overview of the user experience of playing Axie Infinity [00:07:23] - What an Axie is, its features, how they’re generated, and how many exist[00:09:32] - Monster NFTs and the fungible SLP in-game currency[00:15:00] - Converting the SLP to fiat currency and how low-friction the process is[00:16:40] - Are people actually playing the game or just speculating on the game’s assets[00:23:14] - The AXS governance token, how to earn it, and what it enables for token holders[00:27:08] - What the opportunity set looks like for Axie from an investor standpoint[00:29:39] - Finding a balance between offering digital work and creating a player incentive [00:33:29] - Mystic Axie and what they are generally worth today[00:34:42] - How much the community will have to expand and build on top of the game[00:38:48] - Overview of the plots of land in the Axie metaverse and what they might unlock [00:41:57] - What a sidechain is and how the Ronin wallet works [00:46:41] - Why what’s good for Ronin is also good for Ethereum[00:48:53] - Defining a bridge and how it differs from an exchange[00:50:24] - Lessons learned about good tokenomics and token design [00:55:04] - The biggest potential risks to the future of Axie Infinity and its growing popularity [00:57:13] - What an ideal future looks like for the metaverse and Axie infinity[01:01:09] - How the world is changing and why that unlocks value for play-to-earn games[01:04:03] - Asset ownership inversion and how big this could become in the future[01:05:24] - The most surprising things that have happened since joining Axie Infinity[01:06:55] - How he thinks about assessing new opportunities in crypto and the metaverse[01:09:19] - Where you can go to learn more about Axie and dabble in the game

Today, we will be breaking down Datadog. If you've ever used Control-Alt-Delete to force quit a frozen application - you've experienced the Activity Monitor on your own computer. Datadog is that Activity Monitor for all of a business’s systems across its apps, tools, databases, and servers. It is a SaaS-based monitoring platform that gives enterprise IT teams real-time visibility into the performance of their entire software stack. Datadog was founded in 2010 and has repeatedly out-developed competitors to build a comprehensive IT monitoring platform. Today, Datadog’s market cap is over $40 billion dollars. To break down Datadog, host Jesse Pujji is joined by Peter Offringa, the author of Software Stack Investing. During our conversation, we discuss Datadog’s unique product development cadence, how they’re able to grow their top line at 60% a year while staying profitable, and why Web3 might be their biggest competitive threat. I hope you enjoy this breakdown of Datadog. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:54] - [First question] - What Datadog does and their current scale[00:03:58] - Their customer base today and noteworthy growth metrics [00:05:21] - The basics of a tech stack business and Datadog’s approach to it[00:07:31] - What problem Datadog solves and how they came across it [00:08:26] - An overview of a typical backend infrastructure and how Datadog improves it[00:11:52] - Who Datadog’s actual customer is[00:13:21] - The founding story and what fuelled their rapid growth[00:15:58] - What the market looks like today and who their competitors are [00:18:35] - Scaling the business so quickly and how they measure it[00:21:07] - Their unique and highly successful marketing approach[00:24:06] - Parallels between the user experiences of Datadog and Twilio[00:26:00] - The gross margin profile and how it’s trending[00:26:58] - Dollar revenue retention and how pricing unlocks sales and marketing spend[00:29:18] - How Datadog’s pricing stacks up against their competitors[00:30:41] - The advantages of using Datadog versus AWS and pre-provided solutions[00:33:49] - Their M&A strategy and what makes it unique[00:36:46] - What would have to go right for their market cap to double over the next decade[00:39:12] - Potential risks or threats to Datadog’s potential success[00:41:28] - Lessons for builders when studying Datadog’s story[00:42:52] - Lessons for investors to take away from Datadog’s success [00:43:57] - Where to learn more about Datadog 

Today, we will break down Wyndham Hotels, the world’s largest and most diverse hotel franchisor with more than 9,000 hotels across 20 brands in over 80 countries. Wyndham is a brilliant example of a ubiquitous business that often goes unnoticed. In this breakdown, we’ll start by looking at just how vast Wyndham’s portfolio of hotels and brands is, how the Highway Act of 1956 played an important role in developing that scale, and explore the economics of hotel ownership, both from the franchisee and franchisor’s perspective. Then we’ll dive into Wyndham’s growth algorithm, the factors that make the business resilient to external shocks, and the ways in which green programs are helping to drive higher cash-on-cash returns for franchisees. To help break down Wyndham Hotels, host Patrick O’Shaughnessy is joined by Lauren Taylor Wolfe, co-founder and Managing Partner of Impactive Capital and a Wyndham shareholder.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:48] - [First question] - What Wyndham is and the scope of their hotel franchise[00:04:17] - Defining what select-service hotels are compared to traditional ones [00:04:49] - An overview of what the hotel business is and their important levers [00:06:44] - Why Wyndham’s business model is so advantageous[00:09:22] - Franchisee expectations and the pros of franchising the brand [00:12:22] - Whether or not Wyndham participates in loan and debt generation[00:13:36] - Overview of their award-winning loyalty program[00:17:36] - Customer acquisition for their loyalty program and how it drives spending[00:19:16] - Wyndham’s corporate history and how it affects them today[00:22:17] - Driving growth beyond their current real-estate footprint[00:24:30] - Possible positive or negative nonlinear events that could affect them[00:26:09] - Overview of the sales functions inside of their business[00:28:05] - Changes in hotel use trends as of late[00:30:05] - What hotel management means as a business[00:33:05] - Capital allocation and abundant free cash flow without much need for it[00:35:48] - Considering the ESG implications when evaluating the hotel industry[00:38:17] - Aspects of the business that make it both resilient and competitive[00:42:14] - Big variables that could cause Wyndham to fail[00:44:10] - What it is about Wyndham’s economic opportunity that is favorable for franchisees[00:46:19] - Unit economics and expenses at the individual hotel level[00:47:40] - Lessons learned about brand, investing in a brand, and identifying new brands to acquire[00:50:22] - What she’s learned most as an investor working with Wyndham[00:52:19] - Attractive opportunities Hilton could offer that Wyndham couldn’t[00:53:46] - What she’s learned about being a strong operator while working at Wyndham

Today, we will break down Dexcom. Founded in 1999, Dexcom makes best-in-class continuous glucose monitors to help diabetics manage their blood sugar levels. With close ties to growing obesity rates, the diabetes market is big, expensive, and expanding. In the US alone, one-third of Americans are diabetic or pre-diabetic, and the cost of treating diabetes is expected to double over the next decade. To break down Dexcom, Zack Fuss is joined by Aneal Tenjarla, an associate portfolio manager at Sofinnova BioEquities and an investor in Dexcom. During our conversation, we discuss how Dexcom's continuous glucose monitors have materially changed treatment, we cover the structure of the market and Dexcom’s competitors, and we discuss where the business may have future runway inside and outside of diabetes care. I hope you enjoy this breakdown of Dexcom. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:37] - [First question] - What is Dexcom, their core product, and the size of their market[00:04:43] - Overview of the expenses that diabetics accrue annually[00:06:36] - Why continuous glucose monitors (CGMs) are important for diabetes management[00:09:57] - Dexcom’s unit economics and their current revenue model[00:14:10] - Whether or not there is a tech and regulatory barrier to entry [00:16:18] - How a diabetic or prediabetic finds their way to a Dexcom device[00:17:41] - Their current customer base and their revenue streams[00:19:31] - What dictates if a practitioner will refer patients to Dexcom or Abbott[00:21:56] - Why the problem Dexcom aims to solve is so culturally relevant today[00:25:12] - What the next chapter for Dexcom’s business could be[00:28:51] - Sizing the opportunity and optionality in this industry[00:32:11] - Thoughts on Dexcom’s capital allocation decisions[00:34:22] - Reasons why Dexcom could potentially fail in the future[00:37:59] - Competitors arising in the wearable CGM space[00:39:49] - Overview of their management team and what a good one looks like[00:42:52] - Whether or not they plan on stepping into the pump and insulin space[00:45:20] - Other externalities that consumer-friendly CGMs could create for consumers and insurance companies[00:48:56] - Lessons for builders and investors when studying Dexcom’s story[00:53:21] - A future where CGMs could be mostly implants[00:54:18] - The value unlock consumer-friendly monitoring will provide

Today, we will be breaking down SmileDirectClub, the oral care company known for its affordable clear aligner treatment. SmileDirectClub was founded in 2014 as a direct-to-consumer alternative to metal braces. It has since expanded to serve over 1 million customers in both the US and abroad. To help break down the business, host Jesse Pujji is joined by current CFO Kyle Wailes. In this breakdown, we discuss how SmileDirectClub differentiates itself relative to metal braces and clear aligner competitors like Invisalign. We touch on the company’s DTC roots, how they have expanded TAM in the oral care market, and what growth opportunities the business plans to pursue moving forward. I’d highly recommend pairing this episode with our previous breakdown on Invisalign. It’s fun to contrast the two business models and their respective histories. There are so many fascinating details about the clear aligner industry. I hope you enjoy this breakdown of SmileDirectClub. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:38] - [First question] - What is SmileDirectClub and their current scale[00:03:56] - Their economics and revenue over the past year[00:04:59] - What SmileDirectClub is from a consumer perspective [00:07:19] - The core insight that lead to founding the company[00:08:55] - Early bets that paid off in the long run as they scaled[00:10:00] - Differences between clear liners and traditional braces[00:11:28] - Market size and cases that need servicing annually[00:13:21] - Invisalign; Direct to consumer model and unit economics  [00:15:57] - Customer acquisition funnel and diversified marketing approach [00:20:17] - How shops became the major form of how they provide treatment[00:24:02] - Navigating the pandemic and reflections on 2020[00:26:25] - Lessons learned and value unlock from a monthly subscription model[00:28:44] - Thoughts on the market size today and opportunity for the future[00:29:47] - Prioritizing international sales and market penetration[00:30:39] - Lessons learned from executing in international markets[00:31:42] - Competitors in this space and their vantage points[00:33:29] - How SmileDirect competes with Invisalign[00:34:55] - Their prior history with Invisalign and being an early investor[00:35:46] - How the market may play out in the next five to ten years[00:37:07] - What SmileDirect will have to get right to win over the next decade[00:40:10] - Why metallic solutions and braces have survived this long[00:42:44] - Their biggest risks over the coming decade that may threaten their growth[00:43:42] - Navigating legal risks and challenges faced with SmileDirect’s disruptive nature[00:45:39] - Lessons for builders when studying SmileDirect’s story[00:46:31] - Lessons for investors when studying SmileDirect’s story[00:47:07] - Resources for learning more; smiledirectclub.com 

Today, we will be breaking down ZoomInfo. Founded as DiscoverOrg in 2007, ZoomInfo is a go-to-market software & data solution for B2B sales. When a sales rep gains access to ZoomInfo, they gain access to a database with over 130 million contacts. The ZoomInfo platform assists in finding potential customers, contacting those potential customers, and refining each phase of the workflow. To help break down ZoomInfo, host Jesse Pujji is joined by its CEO, Henry Schuck. Henry founded DiscoverOrg and acquired ZoomInfo in 2019. During our conversation, we cover how ZoomInfo differs from traditional CRM businesses, its unique gross margin profile, their special go-to-market muscle, and Henry’s approach to M&A. As a founder, I love stories about bootstrapped businesses, and Henry’s does not disappoint. I hope you enjoy this breakdown of ZoomInfo. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:35] - [First question] - What is ZoomInfo and their current scale[00:04:19] - The problem that ZoomInfo solves and an overview of their product[00:07:23] - A consumer-friendly description of what ZoomInfo is [00:11:13] - The value unlock their database provides salespeople[00:13:28] - Big milestones when bootstrapping the business and their history[00:19:20] - Big problems that had to be solved when building the business[00:21:26] - Giving us a sense of the data market today[00:23:58] - Whether or not they play in a competitive landscape[00:26:36] - The P&L of ZoomInfo and metrics he pays attention to [00:28:18] - Getting the data for their database and the costs associated with it[00:30:03] - Improving their service the more data they accumulate[00:31:48] - Overview of their contracts when offering the service to a business[00:32:35] - Various components of their sales and marketing strategy[00:35:35] - Same day sales cycles and how that manifests itself in ZoomInfo[00:38:48] - What separates ZoomInfo; they sell to sellers and their velocity [00:40:31] - Their approach to M&A in strategy, valuation, and funding [00:44:16] - Things they say no to when it comes to M&A [00:47:19] - How they approached the funding side of their acquisitions[00:48:06] - Why they chose to go public[00:49:52] - Notable moments in how the business responded to the pandemic[00:52:24] - Key factors that would allow ZoomInfo to double their market cap in ten years[00:54:03] - Potential opportunities in AI and data science sectors[00:55:20] - What keeps him up at night in regards to their future success[00:57:12] - Ways he invests in his abilities that other CEOs could learn from[00:57:54] - Whether or not BigTech poses a threat to their data accumulation[01:01:48] - Lessons for builders and investors when studying ZoomInfo’s story[01:03:28] - Learn more about their space; A World of DaaS Podcast 

Today, we will be diving into Blackstone, the world’s largest alternative asset manager. Founded in 1985 as a boutique M&A advisory business with $400,000 of seed capital. The firm now manages over $600 billion across private equity, real estate, credit, and hedge fund strategies. In this breakdown, we will start by discussing Blackstone’s business model and how it has taken advantage of a structural tailwind in the form of low bond yields. Then, we’ll dive into the different ways Blackstone earns money, how that’s changing, and what else management has done to make the business more shareholder-friendly. Finally, we’ll cover Blackstone’s competitive strengths, their brand and scale explaining how they were built and how they’re deployed today.To break down Blackstone, Zack Fuss is joined by Marc Rubinstein, former hedge fund manager and now the writer of Net Interest. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:35] - [First question] - What is Blackstone, their history, and what their scale is today[00:04:29] - Their core competencies in the beginning and what it enabled them to do [00:05:57] - Examples of their early transactions that allowed them to grow their funds[00:07:39] - Overview of the first principles of how private equity funds make money[00:09:49] - What has allowed Blackstone to grow so large over the last thirty-five years[00:12:30] - Things that make alternative asset management a large and lucrative industry [00:14:28] - Overview of revenue streams and returns to shareholders[00:17:30] - Analysis of their corporate private equity, real estate, hedge funds, and credit[00:21:00] - Why alternative asset managers have been so attracted to insurance companies [00:22:40] - Partners Blackstone might find for funding and financing[00:24:44] - Reasons why Blackstone would consider an IPO[00:26:15] - How an investor would evaluate Blackstone versus Berkshire Hathaway[00:29:17] - Ways Blackstone dispels the ‘barbarians at the gate’ stigma around private equity[00:31:12] - The importance of Steve Schwarzman and thoughts on new leadership[00:33:31] - Building a company culture in asset management that creates longevity[00:35:42] - What makes Blackstone so successful writ large[00:37:54] - Emergence of neo-banks and potential threats of regulation and oversight[00:39:05] - The one thing that allows them to always find new opportunities and succeed[00:41:03] - Lessons for investors when studying Blackstone’s story

Today, we will be covering the endlessly fascinating market of Space. While we typically focus on an individual company for Business Breakdowns, we thought an industry primer was the best approach for this expanding market. With Elon Musk and Jeff Bezos directing so much energy to the promise of space, it is impossible not to dream about what lies ahead. To cover this endless topic, I’ll be joined by a previous guest, Tren Griffin. While Tren’s full-time job is a director at Microsoft, his experience with satellites and endless curiosity make him ideal for this conversation. We cover how our ground economy is enabled by space today, what excites him most about the space to space opportunities in the future, and how space compares to other network foundations. I hope you enjoy this great space primer with Tren Griffin.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:19] - [First question] - The current size and scope of the space economy[00:04:42] - Important historic milestones that helped us get to where we are today[00:12:33] - The varying levels of orbit and what they unlock for technology[00:19:22] - How expensive launches were and what they are now with SpaceX and Starship[00:22:08] - Overview of the Starlink project and using it to recoup infrastructural setup costs[00:27:32] - Whether or not launch will ever become more than just a commodity [00:31:01] - Different types of satellites and earth-orbiting technology[00:34:23] - Thoughts on in-space manufacturing as an emerging industry[00:35:33] - Future colonization of the moon, Mars, and humanity leaving the Earth[00:38:19] - The importance of dreaming big to inspire those around you[00:42:36] - Potential reasons why space may not become a new frontier[00:44:41] - Politics and the militarization side of open space[00:47:19] - Legalities and the need for a space treaty [00:49:41] - Whether or not humans will be living on the moon by 2035[00:51:03] - What the benefits will be of a colony on Mars if we can establish one on the moon

Today, we will be breaking down pet care giant, Petco. Founded in 1965 as a mail-order business, Petco has evolved into a one-stop-shop pet care solution across its nearly 1,500 locations. To help break down Petco, I am joined by Greg Kamstra, current CEO of pet care provider, Riverdog and former private equity investor. We will discuss how Petco evolved into its current big-box model, how pet care store economics differ from grocery economics, and what impact e-commerce has had on the industry. It’s always fascinating to learn about secular growth stories, and the pet care industry falls into that category. I hope you enjoy this breakdown of Petco. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:19] - [First question] - What is Petco?[00:03:06] - How much of their business is solely eCommerce[00:03:40] - The scale of the market today and what that space looks like[00:05:24] - Pet ownership in the US and how much it’s grown over the decades[00:06:28] - The spend-per-pet metric and how it continues to grow[00:06:49] - Sales channels for Petco and the big players in this industry[00:07:31] - When and how Petco started and unique insights that led to starting the business[00:09:09] - Unit economics for specialty brands versus generic brands[00:09:42] - General thoughts on the economics of Petco[00:11:03] - Viewing their revenue and customer base through the lens of a single-store[00:13:15] - How they drive same-store sales growth and customer frequency[00:16:22] - The ways they’ve invested in services to incentivize return customers [00:18:13] - Conventional retail strategies and how they’ve performed for Petco[00:20:42] - Ways they are trying to compete with their eCommerce competitors[00:23:50] - What their eCommerce growth could look like over the next few years[00:25:20] - Early days of a mobile app and working on their digital-first footprint[00:26:18] - How good of a deal Chewy was for Petsmart[00:27:48] - Other big deals Petco has made and why they’ve mattered[00:28:52] - Unique private equity aspects of Petco[00:31:07] - What happened to their business during the pandemic and what trends might be here to stay [00:32:03] - How many non-pet owners became pet owners because of COVID-19[00:33:11] - Reasons why their market cap could double in the next five to ten years[00:34:19] - Reasons why their market cap could be cut in half over the coming years[00:35:10] - Lessons for builders when studying Petco’s story[00:37:14] - Lessons for investors when studying Petco’s story

Today, we will be diving into Cardlytics. Founded in 2008, Cardlytics operates as an advertising platform integrated with the digital channels of banks. It allows advertisers to identify potential customers from their spending habits and reach those customers directly within their mobile banking applications. Today, Cardlytics is one of the largest digital ad platforms, seeing data on 50% of every card swipe in the US. To help break down Cardlytics, I will be joined by Cliff Sosin, founder of CAS Investment Partners. During our conversation, we touch on what makes Cardlytics' value proposition so valuable to the ecosystem, how Cardlytics' measurement capabilities differ from Google, and what is needed for Cardlytics to reach its full potential. Throughout our conversation, Cliff gives a great perspective on how this management team brought unique insight to this opportunity but then faced struggles as the company started to scale. His understanding of the history of the business shines throughout the discussion. I hope you enjoy this breakdown of Cardlytics. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.----- Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss Show Notes[00:02:33] - [First question] - What Cardlytics does and their scale[00:06:51] - What happens from a consumer perspective when using their service?[00:08:14] - Numbers around the current scope of the business today[00:08:40] - Comparing Cardlytics to Google and Facebook’s advertising models[00:11:01] - History of the company and how they gained access to bank transaction data[00:15:20] - Revenue splits, gross profits, and companies that have had success using them[00:19:23] - Potential risk to the company if banks were to start offering this service in house[00:23:02] - Possible parallels between Visa and Cardlytics as a transaction protocol for banks[00:25:15] - Whether or not brand matters for them[00:26:15] - Lessons learned about network effects and whether or not it applies[00:30:24] - What opportunities excite him about improving the Cardlytics platform[00:35:24] - The role that data and predictive algorithms could play in perfecting the user experience and business scale[00:39:45] - Reasons that Cardlytics could slip and reverse their progress or fail writ large[00:44:17] - What one question he’d like to answer to improve the business[00:46:38] - Lessons he’s learned about data privacy building the company[00:47:34] - What is impressive about Cardlytics through the lens of leaders and management[00:50:39] - Whether or not his views on investing has changed in regards to the quality of management over the course of growing Cardlytics[00:51:57] - What they would have to do and where they would have to spend to grow the business over the coming decade[00:54:41] - Neobanks posing a potential threat to the tech stack they’ve build[00:59:13] - Lessons for operators in building a business when studying Cardlytics’ story[01:02:10] - Lessons for investors when studying Cardlytics’ story