Company Performance - Ibotta reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, compared to earnings of $0.54 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $84.57 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.52%, and showing an increase from year-ago revenues of $82.33 million [2] - Over the last four quarters, Ibotta has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Ibotta shares have declined approximately 23.2% since the beginning of the year, while the S&P 500 has gained 0.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $89.9 million, and for the current fiscal year, it is $1.20 on revenues of $384.6 million [7] - The estimate revisions trend for Ibotta is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Technology Services industry, to which Ibotta belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Part I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201%20Financial%20Statements%20(Unaudited)) Unaudited statements show a slight revenue increase but a significant drop in net income due to higher expenses [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) Total assets and stockholders' equity decreased, primarily driven by a reduction in cash and share repurchases Condensed Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $297,125 | $349,282 | | Total current assets | $527,986 | $581,741 | | **Total assets** | **$639,264** | **$678,429** | | Total current liabilities | $196,504 | $204,165 | | **Total liabilities** | **$237,988** | **$221,146** | | **Total stockholders' equity** | **$401,276** | **$457,283** | [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) A slight revenue increase was offset by higher costs, resulting in a sharp decline in operating and net income Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $84,574 | $82,327 | | Gross profit | $67,482 | $71,812 | | (Loss) income from operations | $(2,803) | $15,905 | | **Net income** | **$555** | **$9,297** | | Net income per share, basic | $0.02 | $1.00 | | Net income per share, diluted | $0.02 | $0.33 | [Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity](index=7&type=section&id=Condensed%20Statements%20of%20Redeemable%20Convertible%20Preferred%20Stock%20and%20Stockholders'%20Equity) Stockholders' equity decreased significantly due to a substantial common stock repurchase of $73.4 million - The company repurchased **common stock for $73.4 million** during the three months ended March 31, 2025, which is recorded as treasury stock[20](index=20&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) A significant cash outflow from financing activities for stock repurchases led to a net decrease in cash Q1 2025 vs. Q1 2024 Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $19,860 | $19,366 | | Net cash used in investing activities | $(4,968) | $(2,467) | | Net cash (used in) provided by financing activities | $(67,049) | $9 | | **Net change in cash, cash equivalents, and restricted cash** | **$(52,157)** | **$16,908** | [Notes to the Condensed Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements%20(Unaudited)) Key disclosures cover revenue sources, a share repurchase program, a new credit facility, and a pending lawsuit - The company's revenue is primarily derived from client fees on the **Ibotta Performance Network (IPN)**[27](index=27&type=chunk) - The company repurchased **1,840,554 shares for $73.4 million** in Q1 2025 under its expanded **$200 million** share repurchase program[89](index=89&type=chunk)[91](index=91&type=chunk) - A securities class action complaint related to the IPO was filed, which the **company believes is without merit**[120](index=120&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Growth in third-party channels was offset by a decline in the D2C business, leading to decreased profitability Financial and Operational Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Redemptions (thousands) | 82,840 | 71,466 | | Redeemers (thousands) | 17,089 | 12,487 | | Revenue (thousands) | $84,574 | $82,327 | | Gross Margin | 80% | 87% | | Net Income (thousands) | $555 | $9,297 | | Adjusted EBITDA (thousands) | $14,673 | $22,659 | - The business is subject to macroeconomic risks, including inflation and potential declines in consumer spending[126](index=126&type=chunk) [Performance Metrics and Non-GAAP Measures](index=28&type=section&id=Performance%20Metrics%20and%20Non-GAAP%20Measures) Total redemptions grew, fueled by third-party publishers, while D2C metrics and Adjusted EBITDA declined Performance Metrics by Channel (Q1 2025 vs Q1 2024) | Metric | Channel | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | :--- | | Redemptions (thousands) | D2C | 21,629 | 27,675 | | | Third-party | 61,211 | 43,791 | | **Redeemers (thousands)** | **D2C** | **1,656** | **1,928** | | | **Third-party** | **15,433** | **10,559** | - Growth in third-party publisher redemptions was primarily driven by the launch of **Family Dollar and Instacart**[138](index=138&type=chunk) - The decrease in D2C metrics was driven by the **quantity and quality of available offers**[137](index=137&type=chunk)[142](index=142&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Revenue grew 3% as third-party growth offset D2C decline, but surging costs drove an operating loss Revenue by Channel (in thousands) | Revenue Type | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Total D2C revenue | $36,379 | $47,320 | $(10,941) | (23)% | | Total third-party publishers revenue | $48,195 | $35,007 | $13,188 | 38% | | **Total revenue** | **$84,574** | **$82,327** | **$2,247** | **3%** | - **Cost of revenue increased by $6.6 million (63%)** primarily due to the addition of new publishers[178](index=178&type=chunk) - **General and administrative expenses increased by $8.2 million (63%)** due to higher stock-based compensation and public company costs[181](index=181&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with nearly $300 million in cash and an undrawn $100 million credit facility - The company has a **$100 million revolving credit facility** with no outstanding borrowings as of March 31, 2025[190](index=190&type=chunk) - During Q1 2025, the company repurchased **1,840,554 shares of its Class A common stock for $73.4 million**[195](index=195&type=chunk) - Net cash used in financing activities increased by $67.1 million year-over-year, driven by **$69.8 million in treasury stock purchases**[201](index=201&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are identified as interest rate and inflation risk, with no material effect to date - The company is exposed to interest rate risk on its **$297.5 million of cash and cash equivalents** and its floating-rate line of credit[210](index=210&type=chunk)[211](index=211&type=chunk) - The company does not believe that inflation has had a material effect on its business but acknowledges potential future harm[212](index=212&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the quarter-end - Based on an evaluation, the principal executive and financial officers concluded that **disclosure controls and procedures were effective**[213](index=213&type=chunk) - There were **no material changes** in internal control over financial reporting during the quarter[214](index=214&type=chunk) Part II OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201%20Legal%20Proceedings) A securities class action lawsuit related to the IPO was filed, which the company intends to defend vigorously - A securities class action complaint, **Fortune v. Ibotta Inc., et al.**, was filed on April 17, 2025, alleging false statements in the IPO registration[219](index=219&type=chunk) - The company believes the complaint is **without merit** and cannot estimate a potential range of loss[219](index=219&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A%20Risk%20Factors) Key risks include a history of net losses, dependence on Walmart, and concentrated voting control with the CEO - The company has a history of net losses, with an **accumulated deficit of $139.9 million** as of March 31, 2025[224](index=224&type=chunk) - The business is **highly dependent on its relationship with Walmart**, and a termination could materially harm the company[232](index=232&type=chunk) - The dual-class stock structure concentrates approximately **70.5% of voting power with the Founder and CEO**[397](index=397&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Securities](index=93&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Securities) The company repurchased 1.84 million shares for $73.4 million in March 2025 under its repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining for Repurchase (in thousands) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | — | $68,762 | | Feb 2025 | — | — | $68,762 | | Mar 2025 | 1,840,554 | $39.47 | $96,109 | [Item 3. Defaults Upon Senior Securities](index=93&type=section&id=Item%203%20Defaults%20upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - Not applicable[432](index=432&type=chunk) [Item 4. Mine Safety Disclosures](index=93&type=section&id=Item%204%20Mine%20Safety%20Disclosures) The company reports that this item is not applicable - Not applicable[433](index=433&type=chunk) [Item 5. Other Information](index=93&type=section&id=Item%205%20Other%20Information) The Chief Technology Officer adopted a Rule 10b5-1 trading plan for the potential sale of company stock - On March 5, 2025, Chief Technology Officer Luke Swanson adopted a **Rule 10b5-1 trading arrangement** for the sale of up to 252,000 shares[434](index=434&type=chunk) [Item 6. Exhibits](index=94&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the report, including officer certifications and XBRL data files [Signatures](index=95&type=section&id=Signatures) The report is duly signed by the Principal Executive, Financial, and Accounting Officers on May 14, 2025

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $84.6 million, representing a 3% year-over-year growth, with adjusted EBITDA of $14.7 million and an adjusted EBITDA margin of 17% [24][25][29] - Redemption revenue was $73.4 million, up 8% year-over-year, while third-party publisher redemption revenue increased by 38% year-over-year to $48.2 million [25][29] - Non-GAAP gross margin was 81%, down nearly 700 basis points year-over-year, primarily due to increased costs associated with Instacart and other publishers [28][29] Business Line Data and Key Metrics Changes - The company experienced a 37% year-over-year increase in total redeemers, reaching 17.1 million, driven by the launch of Instacart and Family Dollar [26] - D2C redemption revenue decreased by 24% year-over-year to $25.2 million, while ad and other revenues fell by 22% year-over-year to $11.2 million [25][29] - Redemptions per redeemer decreased by 15% year-over-year to 4.8, attributed to the growth in third-party redeemers [27] Market Data and Key Metrics Changes - The company is positioned to capture a greater portion of the $200 billion annual addressable spend in the U.S. CPG industry [21] - The company has seen significant growth in third-party redeemers, with a 45% year-over-year increase in redeemers on the third-party publisher network [61] Company Strategy and Development Direction - The company is focusing on establishing itself as the first true omni-channel performance marketing platform for the CPG industry, leveraging AI and performance marketing strategies [6][21] - The strategy includes handpicking a small number of industry thought leaders for pilot programs to refine product-market fit and scale operations [16][18] - The company aims to automate processes related to CPID (cost per incremental dollar) to enhance efficiency and expand client engagement [51][94] Management's Comments on Operating Environment and Future Outlook - Management noted that CPG companies are seeking new ways to drive incremental sales and are increasingly interested in credible measurement and performance marketing [6][10] - The company expects gradual increases in CPID-related contributions and improvements in sales execution, despite short-term supply constraints [31][32] - Management expressed confidence in the positive reception of initial CPID campaigns and the potential for significant revenue growth as clients embrace the platform [20][21] Other Important Information - The company ended the quarter with $297.1 million in cash and cash equivalents and repurchased 1.8 million shares at an average price of $39.47 [29][30] - The interim CFO, Valerie Shepherd, brings extensive financial leadership experience from Procter & Gamble, which is expected to benefit the company's financial strategy [22][23] Q&A Session Summary Question: Insights on Instacart integration and growth drivers - Management highlighted attractive redemption rates from Instacart and steady growth in redeemers, with plans to expand into new categories like alcohol [39][40] Question: Expansion of CPID and client engagement - Management noted that successful pilot programs have led to expanded brand participation, with a focus on building trust through credible measurement [48][49] Question: Outlook on CPG budgets and supply constraints - Management indicated that while macroeconomic factors create uncertainty, there is optimism about the ability to deliver incremental sales with credible measurement [59][63] Question: Publisher adaptations and redemption activity - Management reported improvements in the Walmart experience and ongoing enhancements to increase redemption activity across existing publishers [71][73] Question: Relationship between CPID penetration and supply growth - Management stated that while CPID penetration is a factor, improvements in sales execution will also contribute to increased supply of offers [75][76]

Ibotta (IBTA) Q1 2025 Earnings Call May 14, 2025 04:30 PM ET Speaker0 Good afternoon, and welcome to Ibotta's q one twenty twenty five earnings conference call. With us today are Brian Leach, founder and CEO, and Valerie Shepherd, interim CFO. Today's press release and this call may contain forward looking statements. Forward looking statements include statements about our future operating results, our guidance for Q2 twenty twenty five, our ability to grow our revenue, factors contributing to our potential ...

Financial Performance - Ibotta's Q1 2025 revenue reached $84.6 million, exceeding the guidance midpoint of $82.0 million by 3%[15] - Adjusted EBITDA for Q1 2025 was $14.7 million, surpassing the guidance midpoint of $12.0 million by 22%[15] - Total revenue grew by 3% year-over-year, increasing from $82.3 million in 1Q24 to $84.6 million in 1Q25[17] - Adjusted EBITDA margin decreased by 10 percentage points, from 28% in 1Q24 to 17% in 1Q25[17] - The company is guiding for Q2 2025 revenue between $86.5 million and $92.5 million, representing a 2% year-over-year growth at the midpoint[52] - Q2 2025 Adjusted EBITDA is projected to be between $17.0 million and $22.0 million, with a 22% margin at the midpoint[52] Revenue Breakdown - Redemption revenue accounted for 87% of the total revenue in 1Q25, with third-party publisher (3PP) contributing 57% and direct-to-consumer (D2C) contributing 30%[21] - Redemption revenue increased by 8%, growing from $68.0 million in 1Q24 to $73.4 million in 1Q25[25] - D2C redemption revenue decreased by 24% year-over-year[45], while 3PP redemption revenue increased by 38%[39] - Ad & other revenue decreased by 22%, from $14.3 million in 1Q24 to $11.2 million in 1Q25[25] Key Drivers of Redemption Revenue - The number of redeemers increased from 12.5 million in 1Q24 to 17.1 million in 1Q25[30] - Redemptions per redeemer decreased from 5.7 in 1Q24 to 4.8 in 1Q25[30] - Redemption revenue per redemption decreased from $0.95 in 1Q24 to $0.89 in 1Q25[30]

Ibotta Reports First Quarter 2025 Financial Results Grew revenue by 3% year-over-year to $84.6 million Grew redemption revenue by 8% year-over-year to $73.4 million Generated net income of $0.6 million, representing net income as a percent of revenue of 1%, and Adjusted EBITDA of $14.7 million, representing a 17% Adjusted EBITDA margin Generated cash from operating activities of $19.9 million and free cash flow of $14.9 million DENVER, May 14, 2025 (Business Wire) -- Ibotta, Inc. (NYSE: IBTA), which operate ...

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Ibotta To Contact Him Directly To Discuss Their Options If you purchased or otherwise acquired stock of Ibotta pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with Ibotta's April 18, 2024 initial public offering (the "IPO") and would like to discuss your legal rights, call Faruqi ...

NEW YORK, May 13, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Ibotta, Inc. ("Ibotta" or the "Company") (NYSE: IBTA) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Ibotta investors who were adversely affected by alleged securities fraud. This lawsuit is on behalf of persons or entities who purchased or otherwise acquired publicly traded Ibotta securities pursuant and/or traceable to documents issued in connection with Ibotta's Apri ...

NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Ibotta, Inc. (NYSE: IBTA). Shareholders who purchased shares of IBTA during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/ibotta-loss-submission-form/?id=147735&from=3 CLASS PERIOD: This lawsuit is on behalf of ...

Core Viewpoint - Ibotta, Inc. is facing potential legal claims due to alleged violations of federal securities laws related to misleading statements about its contract with Kroger, which could have significant implications for investors [5][3]. Group 1: Legal Investigation and Claims - Faruqi & Faruqi, LLP is investigating potential claims against Ibotta and has set a deadline of June 16, 2025, for investors to seek the role of lead plaintiff in a federal securities class action [3]. - The firm encourages investors who suffered losses exceeding $100,000 in Ibotta to contact them directly to discuss their legal options [1]. Group 2: Financial Performance and Stock Impact - Ibotta conducted its IPO on April 13, 2024, offering 6.6 million shares at a price of $88.00 per share [6]. - The company reported a net loss of $34.0 million for Q2 2024, with operating expenses more than doubling year-over-year, and provided a revenue forecast for Q3 2024 that fell below consensus estimates [7]. - Following the release of disappointing financial results, Ibotta's stock price dropped significantly, falling by $15.53 (26%) to close at $42.66 on August 14, 2024, and later by $29.08 (46%) to close at $34.01 on February 27, 2025, after further disappointing earnings [8]. Group 3: Contractual Risks - The complaint alleges that Ibotta failed to disclose the at-will nature of its contract with Kroger, which allowed the client to cancel the contract without warning, posing a significant risk to investors [5]. - Instead of providing clear warnings about the risks associated with client relationships, Ibotta offered generic statements about the importance of maintaining these relationships [5].