Shares in digital marketing stock Rewardle climb after strategy update and breakeven target
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Rewardle (ASX:RXH) was one of the ASX’s biggest winners today after releasing a strategy update.
The microcap company is a digital marketing play with a consumer rewards app. It essentially offers a wallet for loyalty cards and allows users to collect Rewardle points (or, as Rewardle calls them, “Ribbons”) on top of that.
Just like the original loyalty programs stored in the wallet, members have the option to redeem such points. For businesses it helps attract consumers and provides data insight into consumer behaviour.
Today Rewardle shares rose after an investor presentation in which the company revealed it was targeting breakeven soon.
While an exact date to achieve breakeven wasn’t made clear, the company revealed a three-stage plan over the next couple of years to help its Merchant Services fees and third party services income reach pre-COVID levels.
It also revealed merchant SaaS fees actually grew during the last quarter, by 24 per cent.
Stockhead has contacted the company for comment.
Rewardle shares rose by nearly 30 per cent this morning and have substantially grown in the last 12 months.
There are a handful of other ASX companies with Rewardle in the loyalty rewards and digital marketing space.
Reffind (ASX:RFN) is one example – this stock has a strategic stake in blockchain rewards platform Loyyal.
One company that has its own platform is Plexure (NZX:PLX/ASX:PX1) which helps brands deliver one-on-one offers to consumers’ mobile phones, taking account of consumers’ past behaviour.
Another is Cashrewards (ASX:CRW) which provides cash back offers to customers of its retail partners. It claims to be the largest ecosystem of its kind in Australia.
And of course many larger companies on the ASX have their own consumer loyalty businesses.
Arguably the most notable is Qantas (ASX:QAN) with its Qantas Frequent Flyer program which boasts 13.5 million members, more than half Australia’s population.