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RetailMeNot's Di Valerio: App, In-Store Ads To Grow EPS(Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington,
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  Speaker 1: on taking stock, retail me, not the shares of retail me,
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  Speaker 1: not hitting a new fifty two week KAI. Today we're
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  Speaker 1: gonna be speaking with the chief financial officer about its
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  Speaker 1: quarterly earnings and projects in the pipeline. And even bigger
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  Speaker 1: than that PM, what's going on in retail more broadly,
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  Speaker 1: there's more online shopping. What about the big retailers, Hey,
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  Speaker 1: and the Feds watching the shopper very very closely after
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  Speaker 1: some week retail sales numbers. Maybe we can ask got
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  Speaker 1: two dollars eighty cents announced of thirteen six ten. Your
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  Speaker 1: treasury eight down nine thirty seconds with the yield of
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  Speaker 1: one point five four percent. Among today's top business stories,
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  Speaker 1: Some of the other stories were following today on Bloomberg Radio.
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  Speaker 1: Thank you Catherine from the Bloomberg News Room, mym Ramie
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  Speaker 1: and Essensio. Vice President Joe Biden and Hillary Clinton hit
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  Speaker 1: one d twenty countries. I'm Ramy in Essencio. This is Bloomberg, Catherine,
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  Speaker 1: thank you. Now, let's get a quick check of the benchmarks.
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  Speaker 1: Down Industrial average is up seventy seven points at eighteen thousand,
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  Speaker 1: sixty two s and p f I founded up eight points.
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  Speaker 1: Then Azakis sire by thirty two points, trading at fifty
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  Speaker 1: two sixty five. And that's a Bloomberg business flash. You're
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  Speaker 1: listening to taking stock with pin Box and Kathleen Hayes
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  Speaker 1: on Bloomberg Radio. Well, as many of you know, online
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  Speaker 1: shopping is a big and getting bigger, and as it grows,
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  Speaker 1: there are more and more opportunity. He's free to go
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  Speaker 1: online and search for, discover and redeem compelling offers and coupons.
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  Speaker 1: That's where retail me Not comes in. It's a company
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  Speaker 1: that is based in Austin, Texas. That's certainly a hotbed
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  Speaker 1: of tech startups. Scott to Valerio their chief financial officers
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  Speaker 1: joining us from Austin today. And while this may be
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  Speaker 1: a new and relatively hot company, Scott is someone who
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  Speaker 1: knows this industry very well, raising rising through the ranks
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  Speaker 1: from the likes of Price Waterhouse, Cooper's, and Walt Disney
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  Speaker 1: through Microsoft other startups to his current position. Scott, Welcome
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  Speaker 1: to the show. Thanks. I appreciate you having so first
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  Speaker 1: of all, explain to us what retail me not is
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  Speaker 1: in what it does. Sure, we're leading digital savings destination
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  Speaker 1: that really works on connecting consumers with retailers, restaurants, and
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  Speaker 1: brands both online and in store. And so it's about
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  Speaker 1: being able to get a digital coupon, it's about being
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  Speaker 1: able to save utilizing uh discount of gift cards. And
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  Speaker 1: it's really about finding about where this sales, where opportunities
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  Speaker 1: are in order to save for our consumers, which helps
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  Speaker 1: our retailers and brands for sure. And it's really also
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  Speaker 1: about the app and a mobile transaction because the desktop
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  Speaker 1: business is declining. Is that correct? The desktop businesses declining.
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  Speaker 1: We're focusing the business around the mobile, the app, as
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  Speaker 1: you said, and our in store and ads business which
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  Speaker 1: grew over thirty seven percent in the second quarter that
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  Speaker 1: we just reported. You know, we started that business about
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  Speaker 1: two and a half three years ago. The ability to
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  Speaker 1: go into find a coupon and go into your store
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  Speaker 1: and buy your product and and show that coupon to
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  Speaker 1: the retailer and have that ticked off. And it's it's
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  Speaker 1: growing quite nice, and we think it's a business that
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  Speaker 1: will continue to be good for us as we move forward.
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  Speaker 1: And of course, yes, you did have good corely earnings.
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  Speaker 1: You've got a strong balance sheet with the NetCast position
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  Speaker 1: of round billion. You recently bought gift cards in so
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  Speaker 1: you're growing. You're doing these acquisitions who but this is
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  Speaker 1: a crowded field more and more. How do you stay
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  Speaker 1: und out? How do you differentiate yourself from those other
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  Speaker 1: companies doing this? Are there a couple of things? One,
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  Speaker 1: you know, we have a marketplace that has over eight
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  Speaker 1: hundred thousand digital offers from seventy thousand retailers and it's
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  Speaker 1: really the top ninety out of one Internet retailers ranked
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  Speaker 1: up by Internet Retailer magazine. So you know what, we
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  Speaker 1: have a wide breadth of content so that when our
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  Speaker 1: consumers come in, they have a high chance of savings
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  Speaker 1: every time they come in. With the additional gift cards
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  Speaker 1: zen where you have discounted gift cards. That's just another
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  Speaker 1: way of get being able to get savings when a
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  Speaker 1: retailer doesn't coupon or retailer isn't having a sale. The
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  Speaker 1: ability to buy a hundred dollar gift card for ninety
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  Speaker 1: or gives you savings right out of the gate. Our
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  Speaker 1: gift cards end business or a gift card business will
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  Speaker 1: be fully integrated into our app and online um in
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  Speaker 1: the beginning of the fourth quarter. So we're really excited
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  Speaker 1: about being able to introduce are over two million consumers
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  Speaker 1: that that go to our sites each day to being
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  Speaker 1: able to not only buy this kind of gift cards,
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  Speaker 1: but also be able to sell their and want to
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  Speaker 1: give cards to us as well. Now, the the current
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  Speaker 1: sort of offering that you have includes things such as
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  Speaker 1: off j C Penny, off bed and body works. Is
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  Speaker 1: there an opportunity to get specific in terms of QR
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  Speaker 1: codes or bar code so that you can scan the
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  Speaker 1: product that you're thinking of buying and then checking to
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  Speaker 1: see whether a coupon a digital sale is available. Yeah,
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  Speaker 1: there is, and in fact, we have a test that
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  Speaker 1: we're running that's on the site today called the deal Squad,
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  Speaker 1: where you can put in a u r L for
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  Speaker 1: a product that you're looking uh the deal squad team
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  Speaker 1: will take a look at that you r L and
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  Speaker 1: get back to you with the best pricing that they
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  Speaker 1: can find. It's uh, it's being done as a test.
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  Speaker 1: It it'll take somewhere between twelve and twenty four hours
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  Speaker 1: certan to get back. But so far through that test,
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  Speaker 1: we saved our consumers over a million dollars dollars and
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  Speaker 1: about nine of the time we're able to find savings
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  Speaker 1: for our consumers greater than what they found for themselves.
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  Speaker 1: And the discount range there's about twenty or two. So
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  Speaker 1: you know, we're going to continue testing out that product.
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  Speaker 1: But you're you know, you're right on point with what
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  Speaker 1: we're looking at is how to make our site unique
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  Speaker 1: and help our consumers. O case with Scott is the
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  Speaker 1: chief O National officer retail Me not your one online
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  Speaker 1: you know, find the discount company. Give us your sense
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  Speaker 1: of what retailers like right now. The national retail sales
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  Speaker 1: figures not so hot lately, some of the big earnings
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  Speaker 1: from the biggest retailers in the country not so great.
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  Speaker 1: What are you seeing a retell me not? Yeah, I
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  Speaker 1: think you know, we look and work. One of the
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  Speaker 1: things we've been doing is really working with our retailers
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  Speaker 1: to have much more strategic relationship in order to be
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  Speaker 1: able to help drive traffic to them, and in times
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  Speaker 1: like this, that's one of the key things that are
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  Speaker 1: retailers want and so um, you know, certainly the retail
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  Speaker 1: landscape has been challenged over the past couple of years.
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  Speaker 1: We've been working very closely other retailers, with our online
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  Speaker 1: business to help drive traffic and also with our instore
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  Speaker 1: business excuse me, to drive traffic and also online to
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  Speaker 1: be able to continue allow our consumers define great retailer
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  Speaker 1: opportunities and savings. And so we think we're a key
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  Speaker 1: component to help our retailers through this tough time. But certainly,
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  Speaker 1: uh it is. It has been a relatively rough time
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  Speaker 1: for retailers. But now we're gonna keep trying to help
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  Speaker 1: them and our consumers work through this. Scott de Valerio,
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  Speaker 1: thank you, Chief financial Officer. Retail me not. The symbol
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  Speaker 1: on the NASDAC is s a l E. The shares
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  Speaker 1: hitting a new fifty two week high today eleven dollars
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  Speaker 1: and seventy cents. The stock is up more than eighteen
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  Speaker 1: percent year to day. They're based in Austin, Texas, you're
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  Speaker 1: listening to Taking Stock. I'm PIM Fox, my co host
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  Speaker 1: Kathleen Hayes, and this is Bloomberg coming up, a look
• 11:02
  Speaker 1: at international trade in this presidential election year. Who are
• 11:07
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• 11:10
  Speaker 1: some new research from Georgetown University