All representation is on a contingency fee basis. Shareholders pay no fees or expenses. Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of class actions, the Firm has been named to The National Law Journal's "Plaintiff ...

Core Viewpoint - Julie & Holleman LLP is investigating potential claims against Ibotta, Inc. and its executives due to significant losses suffered by shareholders following misleading information regarding risks associated with The Kroger Co. and a sharp decline in stock price after the IPO [1][2][3] Group 1: Legal Investigation - Julie & Holleman LLP is a shareholder rights firm that is looking into legal claims against Ibotta, its executives, and possibly the board of directors [3] - The firm has a history of securing hundreds of millions of dollars for clients in previous cases [3] Group 2: Stock Performance - Ibotta went public with an IPO price of $88 per share, but the stock has since dropped significantly, resulting in substantial financial losses for investors [2]

Core Viewpoint - A class action securities lawsuit has been filed against Ibotta, Inc. due to alleged securities fraud related to its initial public offering on April 18, 2024 [1][2]. Group 1: Lawsuit Details - The lawsuit aims to recover losses for investors who purchased Ibotta securities and were affected by the alleged fraud [2]. - The complaint alleges that Ibotta failed to disclose the risks associated with its contract with Kroger, specifically that the contract was at-will, allowing Kroger to terminate it without notice [3]. - Ibotta provided detailed information about its contract with Walmart but did not mention the at-will nature of the Kroger contract, misleading investors about the stability of its client relationships [3]. Group 2: Next Steps for Investors - Investors who suffered losses in Ibotta have until June 16, 2025, to request to be appointed as lead plaintiff in the lawsuit [4]. - Participation in the lawsuit does not require serving as a lead plaintiff, and there are no costs or obligations for class members [4]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years [5]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [5].

Core Viewpoint - Ibotta, Inc. is facing a class action lawsuit related to its IPO, alleging that the company and its executives misled investors regarding the risks associated with its contracts, particularly with The Kroger Co. [1][3] Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Fortune v. Ibotta, Inc., and it allows purchasers of Ibotta's securities from its IPO on April 18, 2024, to seek appointment as lead plaintiff by June 16, 2025 [1][5]. - The lawsuit claims that Ibotta's IPO offering documents were materially false and misleading, failing to disclose critical information about its contract with Kroger, which was at-will and could be canceled without notice [3][4]. Group 2: Financial Impact - Ibotta sold 2.5 million shares at $88.00 per share during its IPO, but as of April 17, 2025, the securities have traded significantly lower than the IPO price [2][4]. - The complaint indicates that the lack of proper warnings regarding the at-will nature of the Kroger contract has contributed to the decline in Ibotta's stock price [3][4]. Group 3: Legal Representation - Robbins Geller Rudman & Dowd LLP is representing investors in this class action lawsuit, highlighting their expertise in securities fraud and shareholder litigation [6]. - The firm has a strong track record, having recovered over $2.5 billion for investors in 2024 alone, indicating their capability in handling significant securities-related cases [6].

NEW YORK, May 16, 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 ...

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]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $84.6 million, representing a 3% year-over-year growth, and adjusted EBITDA of $14.7 million, with an adjusted EBITDA margin of 17% [22][23][28] - Redemption revenue was $73.4 million, up 8% year-over-year, while ad and other revenues decreased by 22% year-over-year to $11.2 million [23][28] - Non-GAAP gross margin was 81%, down nearly 700 basis points year-over-year, and non-GAAP operating expenses as a percentage of revenue were 65%, an increase of approximately 360 basis points year-over-year [27][28] Business Line Data and Key Metrics Changes - Third-party publisher redemption revenue increased by 38% year-over-year to $48.2 million, while direct-to-consumer (D2C) redemption revenue decreased by 24% year-over-year to $25.2 million [23] - Total redeemers reached 17.1 million, up 37% year-over-year, with a decline in redemptions per redeemer to 4.8, down 15% year-over-year [24][25] Market Data and Key Metrics Changes - The company is experiencing strong growth in the third-party publisher network, with redeemers up 45% year-over-year and redemption revenue up 38% year-over-year [59] - The company is positioned to capture a greater portion of the $200 billion annual addressable spend in the U.S. CPG industry [19] 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 new technologies like AI to drive growth [5][19] - The strategy includes handpicking a small number of industry thought leaders for pilot programs to refine the platform before broader rollout [14] Management's Comments on Operating Environment and Future Outlook - Management noted that CPG companies are seeking new ways to measure the effectiveness of their spending and are increasingly interested in performance marketing solutions [5] - The company expects gradual increases in CPID-related contributions and improvements in sales execution, although short-term disruptions may occur [30] Other Important Information - The company repurchased 1.8 million shares at an average price of $39.47, with $96.1 million remaining under the current share repurchase authorization [29] - The company ended the quarter with $297.1 million in cash and cash equivalents [28] Q&A Session Summary Question: Insights on Instacart integration and growth drivers - Management expressed excitement about progress with Instacart and DoorDash, noting attractive redemption rates and steady growth in redeemers on both platforms [39][40] Question: Expansion of CPID and client success - Management reported that partners are expanding brands participating in CPID, indicating strong results and confidence in further expansion [47][48] Question: CPG budgets outlook - Management indicated that while macro factors like tariffs create uncertainty, they are optimistic about the conversations around delivering incremental sales with credible measurement [56][60] Question: Publisher adaptations and supply improvement - Management highlighted improvements in the Walmart experience and ongoing enhancements with existing publishers to increase redemption activity [70][74] Question: Resource allocation for CPID and automation - Management emphasized the importance of automation in processes and the need for client analytics, with plans to build tools for better self-service capabilities [94][96]

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]