SAN DIEGO, Feb. 27, 2025 (GLOBE NEWSWIRE) -- The Denver Law Office of Johnson Fistel, LLP is investigating whether Ibotta, Inc. (NYSE: IBTA)—headquartered in Denver, Colorado—or any of its executive officers or others violated securities laws by misrepresenting or failing to timely disclose information to investors. What if I purchased Ibotta securities? If you purchased securities and suffered losses on your investment, join our investigation now: Click Here to Join the Investigation For more information, ...

Ibotta (IBTA) Q4 2024 Earnings Call February 27, 2025 03:50 AM ET Company Participants Shalin Patel - VP - Investor RelationsBryan Leach - Founder, President, CEO & ChairmanSunit Patel - Chief Financial OfficerAndrew Marok - DirectorAndrew Boone - Managing DirectorEric Sheridan - Managing DirectorRon Josey - Managing DirectorChris Kuntarich - Internet Equity Research Conference Call Participants Curtis Nagle - Director - Senior US SMID Cap Internet AnalystBernie Mcternan - Senior Research Analyst Shalin Pat ...

Ibotta, Inc. (NYSE:IBTA) Q4 2024 Earnings Conference Call February 26, 2025 4:30 PM ET Company Participants Shalin Patel – Vice President, Investor Relations Bryan Leach – Founder and Chief Executive Officer Sunit Patel – Chief Financial Officer Conference Call Participants Andrew Marok – Raymond James Andrew Boone – JMP Securities Eric Sheridan – Goldman Sachs Ron Josey – Citi Chris Kuntarich – UBS Curt Nagle – Bank of America Bernie McTernan – Needham Shalin Patel Good afternoon, and welcome to Ibotta's Q ...

Earnings presentation Fourth quarter and full year 2024 $1.30 back Add offer Some of the financial information and data contained in this presentation, such as Non-GAAP direct-to-consumer redemption revenue, Non-GAAP redemption revenue, Non-GAAP direct-to-consumer redemption revenue per redemption, Non-GAAP total revenue, Non- GAAP redemption revenue per redemption, Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP gross profit, Non-GAAP operating expenses as a percentage of Non-GAAP revenue, Non-GAAP sales ...

Financial Performance - The company incurred a net loss of $54.9 million for the year ended December 31, 2022, with an accumulated deficit of $140.4 million as of December 31, 2024[118]. - For the year ended December 31, 2024, the company's revenue was $367.3 million, with no assurances that revenue will grow at current rates[139]. - The company may not be able to sustain its revenue growth rate, with historical variability in growth from quarter to quarter and year to year[139]. - The company may experience decreased ad revenue in 2024 compared to 2023 due to a shift in CPG client spend from ad revenue to redemption revenue[144]. - The company anticipates that macroeconomic conditions, including inflation and supply chain disruptions, could adversely affect its business and results[154]. Business Relationships and Competition - The company relies heavily on maintaining and expanding relationships with existing publishers and adding new publishers to the Ibotta Performance Network (IPN) to drive revenue growth[124]. - The Walmart Program Agreement, a multi-year arrangement, is critical for the company, and any termination could materially affect its business[125]. - The company faces ongoing competition that presents a threat to its business success and profitability[116]. - The company faces ongoing competition from large social media and search-oriented platforms, as well as programmatic media networks, which could impact its market position[162]. - The company relies on strategic relationships with CPG brands, and failure to maintain or expand these relationships could hinder growth[134]. Operational Challenges - The company may encounter unforeseen operating expenses and difficulties as it expands its business and executes strategic initiatives[122]. - The sales cycle for agreements with CPG brands, retailers, or publishers can be lengthy and unpredictable, impacting revenue recognition and financial forecasting[179]. - The company has limited operating history at its current scale, making it challenging to evaluate future prospects and risks[170]. - The company may face operational challenges due to rapid scaling and the introduction of significant new platform features, which could involve substantial technical risks and upfront capital investments[222]. - The company is making substantial investments in technology and platform development, which may not yield immediate revenue growth[121]. Employee and Talent Management - The company experienced significant growth, with full-time employees increasing from 530 as of December 31, 2020, to 886 as of December 31, 2024, before a reduction in force in February 2025, leaving approximately 800 employees[169]. - The company faces challenges in attracting and retaining qualified employees, particularly engineers, due to competition from other firms[191]. - Changes in immigration laws may impact the company's ability to hire necessary talent, adversely affecting growth[193]. - Maintaining company culture during growth is critical, as failure to do so could negatively impact recruitment and retention of personnel[202]. Financial and Regulatory Compliance - The company is subject to the reporting requirements of the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act, which will increase legal, accounting, and financial compliance costs[283]. - The company may face increased costs and demands on management due to compliance with laws and regulations affecting public companies, particularly after ceasing to be an "emerging growth company"[283]. - The company identified a material weakness in internal controls over financial reporting related to revenue recognition, specifically concerning breakage revenue, which was remediated by December 31, 2022[278]. - The company is continuing to develop and refine its internal controls over financial reporting, which may require significant resources[280]. Market and Stock Performance - The company has authorized a Share Repurchase Program to buy back up to $100 million of its Class A common stock, but the timing and number of shares repurchased will depend on various factors[305]. - The dual class structure may affect the trading price of Class A common stock, potentially making it ineligible for inclusion in certain indices, which could adversely impact its market price[299]. - The company may experience volatility in the trading price of its Class A common stock due to various factors, including market conditions and operational performance[300][303]. - Future sales of Class A common stock could lead to a decline in its market price, impacting the company's ability to raise capital[310]. Technology and Cybersecurity - The company is making substantial investments to expand its technologies and tools, with a focus on new and unproven business opportunities[204]. - The company faces significant cybersecurity risks, including potential cyberattacks that could compromise data and disrupt operations[223]. - Any security breach could materially adversely affect the company's reputation, financial condition, and operational results, leading to loss of trust among clients and consumers[226]. - The increased use of APIs by clients and publishers raises security and operational risks, including potential outages and data theft[238]. Legal and Regulatory Risks - The evolving legal and regulatory environment surrounding AIML could require significant changes to the company's practices, incurring substantial costs[258]. - Compliance with complex and evolving laws related to privacy and data protection is expected to increase operational costs and exposure to liability[262]. - The company may face significant fines and penalties if it fails to comply with privacy and data protection laws, which could adversely affect its financial condition[261]. - Changes in laws governing money services businesses could impact the company's rewards programs and increase regulatory compliance costs[271].

Revenue Growth - Full year 2024 revenue increased by 15% year-over-year to $367.3 million, with non-GAAP revenue growth of 20%[1] - Full year 2024 redemption revenue rose by 27% year-over-year to $308.8 million, with non-GAAP redemption revenue growth of 34%[1] - Fourth quarter 2024 total revenue was $98.4 million, a year-over-year decline of 1%, while non-GAAP revenue growth was flat[3] - Revenue for Q4 2024 was $98.38 million, a decrease of 1.3% from $99.67 million in Q4 2023, while full-year revenue increased by 14.7% to $367.25 million from $320.04 million in 2023[21] - Total revenue for the year ended December 31, 2024, was $367,254, an increase of 15% compared to $320,037 in 2023[29] Net Income and Profitability - Generated full year 2024 net income of $68.7 million, representing 19% of revenue, and Adjusted EBITDA of $112.2 million, reflecting a 31% Adjusted EBITDA margin[1] - Net income for Q4 2024 was $76.17 million, significantly up from $18.65 million in Q4 2023, resulting in a full-year net income of $68.74 million compared to $38.12 million in 2023[21] - Adjusted net income for Q4 2024 was $22,372, representing 23% of total revenue, compared to 27% in Q4 2023[28] Cash Flow and Financial Position - The company reported a significant increase in cash and cash equivalents, reaching $349.28 million by the end of 2024, compared to $62.59 million at the end of 2023[23] - Free cash flow for the year ended December 31, 2024, was $105,716, a substantial increase from $14,488 in 2023[31] Operating Expenses - Operating expenses for Q4 2024 totaled $70.26 million, an increase from $61.10 million in Q4 2023, with full-year operating expenses rising to $289.21 million from $220.05 million[21] - Stock-based compensation expense for the year was $76.22 million, up from $20.17 million in 2023, reflecting increased employee incentives[21] - Stock-based compensation for the year ended December 31, 2024, was $76,216, compared to $20,168 in 2023[27] User Engagement and Redemptions - The IPN had 17.2 million redeemers in Q4 2024, a 27% increase year-over-year, driven by the launch of Instacart and Family Dollar[3] - Increased total redemptions to 344.1 million in 2024, a 34% year-over-year increase[5] - The average number of redeemers in 2024 was 14.7 million, up 78% from 2023[5] - Direct-to-consumer revenue for Q4 2024 was $46,113, a decrease of 26% from $62,035 in Q4 2023[26] - Total third-party publishers revenue increased by 39% in Q4 2024 to $52,267, compared to $37,639 in Q4 2023[26] Future Outlook - Guidance for Q1 2025 projects revenue of $80 - $84 million, with an Adjusted EBITDA of $10 - $14 million, representing a margin of 15%[12] - The company anticipates continued growth and expansion in its performance marketing platform, leveraging AI technology to enhance digital promotions[19] Breakage and User Liability - The company experienced a breakage benefit of $0.8 million in Q4 2023 and $13.5 million for the full year 2023, with no breakage benefit reported for 2024[15] - The user redemption liability decreased to $74.01 million in 2024 from $84.53 million in 2023, indicating improved management of inactive accounts[23] Market Impact - Ibotta has delivered over $2.3 billion in cash back to American shoppers since its inception in 2012, highlighting its market impact[18]

Group 1 - The core viewpoint is a positive outlook on Ibotta Inc. (NYSE: IBTA) due to its strategic shift towards third-party partnerships, which is expected to enhance its integration with leading retailers and improve market capture [1] - The company is leveraging various investment strategies, including fundamental, technical, and momentum investing, to refine its investment process [1] Group 2 - There is no disclosure of stock or derivative positions in any mentioned companies, indicating an unbiased perspective in the analysis [2] - The article emphasizes that past performance does not guarantee future results, highlighting the importance of independent evaluation for investors [3]

Financial Performance - Revenue for Q3 2024 reached $98,621,000, a 15.5% increase from $85,287,000 in Q3 2023[13]. - Gross profit for Q3 2024 was $86,449,000, up 15.9% from $74,510,000 in Q3 2023[13]. - Net income for Q3 2024 was $17,239,000, compared to $8,413,000 in Q3 2023, representing a 104.4% increase[15]. - Total revenue for the three months ended September 30, 2024, was $98.6 million, compared to $85.3 million for the same period in 2023, representing a 15.1% increase[91]. - Total redemption revenue increased by $60.4 million, or 36%, to $226.4 million during the nine months ended September 30, 2024, driven by an $85.4 million increase in revenue from third-party publishers[199]. Assets and Liabilities - As of September 30, 2024, cash and cash equivalents increased to $341.274 million from $62.591 million as of December 31, 2023, representing a growth of 444%[11]. - Total current assets rose to $576.058 million, up from $298.344 million, indicating a 93.5% increase[11]. - Total liabilities decreased to $220.308 million from $291.862 million, reflecting a decline of 24.5%[11]. - Stockholders' equity surged to $377.958 million from $27.928 million, marking a significant increase of 1255%[11]. Expenses - Operating expenses totaled $65,742,000 in Q3 2024, slightly higher than $63,640,000 in Q3 2023[13]. - Research and development expenses increased to $16,285,000 in Q3 2024 from $12,391,000 in Q3 2023, a 31.5% rise[13]. - Sales and marketing expenses decreased to $27,761,000 in Q3 2024 from $37,639,000 in Q3 2023, a reduction of 26.3%[13]. - General and administrative expenses rose by $8,522,000, or 70%, to $20,631,000, primarily driven by increased stock-based compensation and public company costs[192]. Stock-Based Compensation - Stock-based compensation expense increased significantly to $36,253,000 for the nine months ended September 30, 2024, from $5,307,000 in the prior year[20]. - The aggregate grant date fair value of the Walmart Warrant was $35.3 million, with an additional $37.2 million for the 592,457 shares granted under the anti-dilution provision[83][84]. - Stock-based compensation expense recognized for the Walmart Warrant was $9.1 million for the three months ended September 30, 2023, and $27.1 million for the nine months ended September 30, 2024, including a $17.5 million adjustment for the anti-dilution provision[87]. Market Strategy and Growth - The company aims to expand its market share and enhance relationships with key partners, including Walmart and Dollar General[5]. - Future growth strategies include the development of new offerings and enhancements to the platform[5]. - The company is focused on maintaining profitability and generating profitable growth over time[3]. IPO and Financing - The initial public offering (IPO) on April 22, 2024, raised net proceeds of $198.0 million after deducting underwriting discounts and commissions[23]. - Following the IPO, 17,245,954 shares of redeemable convertible preferred stock converted into common stock, which were then reclassified into Class A common stock[24]. - The company executed a $50.0 million revolving line of credit, which was amended to extend the maturity date to November 3, 2026, following the IPO[59][62]. Redemption and User Metrics - For the three months ended September 30, 2024, total redemptions increased to 97.4 million from 67.9 million in the same period of 2023, representing a growth of approximately 43%[145]. - The number of redeemers for the three months ended September 30, 2024, was approximately 15.3 million, up from 9.4 million in the same period of 2023, marking a growth of about 63%[150]. - Third-party publisher redemptions surged to approximately 65.8 million for the three months ended September 30, 2024, compared to 30.0 million in the same period of 2023, reflecting a growth of approximately 119%[144]. Tax and Legal Matters - The company recorded an income tax provision of $7.9 million and $14.9 million for the three and nine months ended September 30, 2024, resulting in effective tax rates of 31.4% and 199.1%, respectively[112]. - The company incurred $3.5 million in legal expenses with Wilson Sonsini during the nine months ended September 30, 2024[118].

Financial Performance - Total revenue for Q3 2024 reached $98.6 million, a 16% increase year-over-year, with non-GAAP revenue growth of 19%[2] - Redemption revenue grew by 28% year-over-year to $84.5 million, with non-GAAP redemption revenue increasing by 32%[2] - Net income for Q3 2024 was $17.2 million, representing 17% of total revenue, while adjusted net income was $31.4 million, or 32% of revenue[2] - Adjusted EBITDA for the quarter was $36.5 million, resulting in a 37% adjusted EBITDA margin[2] - Revenue for the three months ended September 30, 2024, was $98.6 million, a 15.0% increase from $85.3 million in the same period of 2023[18] - Gross profit for the three months ended September 30, 2024, was $86.4 million, compared to $74.5 million in the same period of 2023, reflecting a gross margin improvement[18] - Net income for the three months ended September 30, 2024, was $17.2 million, up from $8.4 million in the same period of 2023, representing a 104.5% increase[18] - For the three months ended September 30, 2024, total revenue increased by 16% to $98,621,000 compared to $85,287,000 in the same period of 2023[22] - Adjusted EBITDA for the three months ended September 30, 2024, was $36,519,000, representing a margin of 37% compared to 28% in 2023[23] - The company reported a net loss of $7,430,000 for the nine months ended September 30, 2024, compared to a net income of $19,471,000 in 2023[21] Cash Flow and Assets - Year-to-date cash from operating activities totaled $93.9 million, with free cash flow of $86.3 million[1] - Net cash provided by operating activities was $93,930,000 for the nine months ended September 30, 2024, compared to a cash outflow of $952,000 in 2023[21] - Cash and cash equivalents significantly rose to $341.3 million as of September 30, 2024, from $62.6 million at the end of 2023[20] - Cash and cash equivalents at the end of the period increased to $341,274,000 from $39,673,000 in the previous year[21] - Free cash flow for the nine months ended September 30, 2024, was $86,274,000, compared to a negative free cash flow of $7,195,000 in 2023[28] Shareholder Equity and Liabilities - Total current assets increased to $576.1 million as of September 30, 2024, compared to $298.3 million as of December 31, 2023[20] - Total liabilities decreased to $220.3 million as of September 30, 2024, down from $291.9 million as of December 31, 2023[20] - Stockholders' equity increased to $378.0 million as of September 30, 2024, compared to $27.9 million as of December 31, 2023[20] - The company repurchased 0.3 million shares for $15.6 million at an average price of $56.77 per share[3] Revenue Streams - The number of redeemers increased by 63% year-over-year to 15.3 million, driven by the expansion of the Walmart program[2] - Direct-to-consumer revenue decreased by 25% to $47,280,000 for the three months ended September 30, 2024, down from $62,900,000 in 2023[22] - Third-party publishers revenue surged by 129% to $51,341,000 for the three months ended September 30, 2024, compared to $22,387,000 in 2023[22] Future Projections and Partnerships - For Q4 2024, the company projects revenue between $100 million and $106 million, reflecting a year-over-year increase of 4% at the midpoint[6] - Adjusted EBITDA guidance for Q4 2024 is set between $30 million and $34 million, indicating a margin of 31% at the midpoint[6] - A multi-year strategic partnership with Instacart was established to provide savings on groceries, with testing of digital offers expected to be fully launched by year-end[5] - The company expects to be fully launched on Instacart by the end of the year, indicating future growth potential[17] Research and Development - Research and development expenses for the three months ended September 30, 2024, were $16.3 million, compared to $12.4 million in the same period of 2023, reflecting a 31.5% increase[18] - The company has facilitated over $2.0 billion in earnings for American shoppers through its performance marketing platform since 2012[16] Stock-Based Compensation - Stock-based compensation expense rose significantly to $36,253,000 for the nine months ended September 30, 2024, compared to $5,307,000 in 2023[21]

Financial Performance - Revenue for Q2 2024 reached $87.926 million, a 13.5% increase from $77.385 million in Q2 2023[14]. - Gross profit for Q2 2024 was $75.643 million, compared to $67.741 million in Q2 2023, reflecting an increase of 11.3%[14]. - Net loss for Q2 2024 was $33.966 million, compared to a net income of $15.341 million in Q2 2023[16]. - Basic net loss per share for Q2 2024 was $(1.32), compared to earnings of $1.73 per share in Q2 2023[14]. - Total revenue for the three months ended June 30, 2024, was $87.926 million, an increase from $77.385 million in the same period of 2023, representing a growth of approximately 10%[135]. - Adjusted EBITDA for the three months ended June 30, 2024, was $25.274 million, compared to $23.207 million for the same period in 2023, reflecting a margin of 29%[135]. - Total redemption revenue increased by $15.7 million, or 27%, to $73.9 million for the three months ended June 30, 2024, driven by a $29.9 million increase in revenue from third-party publisher properties[189]. - Total redemption revenue for the six months ended June 30, 2024, increased by $42.0 million, or 42%, to $141.9 million compared to $99.9 million for the same period in 2023[200]. Assets and Liabilities - As of June 30, 2024, total assets increased to $556.05 million from $319.79 million as of December 31, 2023, representing a 74% growth[12]. - Cash and cash equivalents rose significantly to $317.86 million, up from $62.59 million, indicating a 408% increase[12]. - Total current assets reached $534.23 million, compared to $298.34 million at the end of 2023, marking an 80% increase[12]. - The company reported a decrease in total current liabilities to $190.17 million from $198.15 million, a reduction of approximately 4.9%[12]. - Stockholders' equity improved to $359.70 million from $27.93 million, reflecting a substantial increase of over 1200%[12]. - Accounts receivable decreased to $209.02 million from $226.44 million, a decline of about 7.7%[12]. - The user redemption liability slightly decreased to $81.04 million from $84.53 million, a reduction of approximately 4.4%[12]. Expenses - Operating expenses surged to $97.300 million in Q2 2024, up from $47.927 million in Q2 2023, representing a 103.5% increase[14]. - Total operating expenses for the first half of 2024 were $153.207 million, significantly higher than $95.310 million in the same period of 2023[14]. - Research and development expenses increased to $17.526 million in Q2 2024, up from $12.220 million in Q2 2023, marking a 43.7% rise[14]. - Stock-based compensation expense increased to $24.802 million for the six months ended June 30, 2024, compared to $3.584 million in the same period of 2023[23]. - General and administrative expenses rose by $16.0 million, or 125%, to $28.7 million for the three months ended June 30, 2024, primarily due to stock-based compensation and one-time IPO costs[194]. Market Strategy and Growth - The company aims to expand its market presence and enhance its platform capabilities, focusing on new offerings and services[3]. - Future growth strategies include maintaining relationships with key partners such as Walmart and Dollar General, and exploring new verticals[5]. - The company has plans for market expansion and new product development as part of its future strategy[14]. - The company expects redemption revenue to increase as a percentage of total revenue as it continues to grow its IPN[170]. IPO and Financing - The company raised $198.0 million in net proceeds from its initial public offering (IPO) by selling 2,500,000 shares at $88.00 per share[26]. - The Company completed its IPO on April 22, 2024, issuing 2,500,000 shares of Class A common stock, resulting in net proceeds of $198.0 million after deducting underwriting discounts and offering costs[72]. User Engagement and Redemption - The company had 80,715 redemptions in the three months ended June 30, 2024, compared to 51,201 redemptions in the same period of 2023, indicating a significant increase in user engagement[135]. - Total redemptions for the three months ended June 30, 2024, were 80.7 million, up from 51.2 million in the same period in 2023, representing a growth of 57.5%[144]. - The number of third-party publisher redeemers for the three months ended June 30, 2024, was approximately 11.9 million, up from 3.4 million in 2023, an increase of 250%[148]. Tax and Interest - The effective tax rate for the three months ended June 30, 2024, was (13.1)%, compared to 14.9% for the same period in 2023[113]. - The provision for income taxes increased by $1.2 million, or 46%, to $3.9 million for the three months ended June 30, 2024, primarily due to non-deductible items[199]. - Interest paid by the company for the six months ended June 30, 2024, was $2.497 million, slightly up from $2.296 million in the same period of 2023[24]. - Interest income increased by $4.2 million, or 273%, to $2.7 million for the three months ended June 30, 2024, due to higher interest earned on cash and cash equivalents[195].