Core Insights - Ibotta's CEO, Bryan Leach, is recognized for his transition from the legal industry to entrepreneurship, focusing on evolving the promotions industry [2]. Group 1 - Ronald Josey, MD and Co-Head of Tech & Communications at Citi, introduces the session and highlights the significance of Ibotta in the Internet sector [1]. - The discussion aims to explore insights from Bryan Leach regarding the evolution of the promotions industry [2].

Financial Data and Key Metrics Changes - The company reported revenue of $98.4 million for Q4 2024, representing a non-GAAP revenue decline of 0.5% year-over-year, excluding $0.8 million in one-time breakage revenue from the prior year [39][97] - Adjusted EBITDA for Q4 was $27.8 million, reflecting a margin of 28%, down from 33% in Q4 2023, indicating a 14% decline in adjusted EBITDA [39][97] - Free cash flow for the quarter was $19.4 million, bringing the full year 2024 total to $105.7 million [38][96] Business Line Data and Key Metrics Changes - Redemption revenue was $82.4 million, up 7% year-over-year on a non-GAAP basis, while ad and other revenues, now 16% of total revenue, were $16 million, down 27% year-over-year [40][98] - Third-party publisher redemption revenue increased by 39% year-over-year to $52.3 million, while D2C redemption revenue decreased by 24% to $30.1 million, excluding the one-time breakage benefit [40][99] - Total redeemers reached 17.2 million, up 27% year-over-year, driven by the launch of Instacart and growth in Walmart's audience [41][99] Market Data and Key Metrics Changes - The company experienced a decline in redemptions per redeemer, which fell by 20% year-over-year to 5.5, attributed to the growth of third-party redeemers with lower redemption frequency [42][100] - Redemption revenue per redemption increased by 6% year-over-year to $0.87, reflecting a mix shift within the CPG portfolio [42][100] Company Strategy and Development Direction - The company aims to establish a more rigorous measurement framework for ROI beyond the standard return on ad spend (ROAS) to unlock higher investment levels from clients [21][79] - A new framework for measuring incremental sales lift has been introduced, allowing clients to track the volume of incremental revenue generated [80][81] - The company is transitioning to a programmatic interface for buying performance-based media, moving away from traditional annual promotions budgets [80][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointment in Q4 performance, attributing it to insufficient offer supply from CPG brands relative to redeemer growth [8][67] - The outlook for Q1 2025 is softer than anticipated, with expected revenue in the range of $80 million to $84 million, indicating flat revenue growth [47][105] - Management expressed confidence in improving near-term execution and highlighted early signs of success in new sales strategies [34][58] Other Important Information - The company reduced its workforce by 8% to streamline operations and better allocate resources [18][75] - A new Chief Revenue Officer has been appointed to enhance sales execution and improve long-term positioning [14][36] - The company plans to introduce CPM pricing for D2C ads and improve ad performance through a new third-party ad server [89][90] Q&A Session Summary Question: What are the expectations for revenue growth in Q1? - The company expects revenue in the range of $80 million to $84 million, representing flat growth, with anticipated challenges in offer supply impacting revenue [47][105] Question: How is the company addressing the decline in D2C ad revenue? - Management plans to improve D2C ad functionality by introducing CPM pricing and enhancing the ad buying experience [89][90] Question: What are the strategic goals for 2025? - The company aims to establish a more rigorous measurement framework and transition to a programmatic buying model to unlock larger budgets from clients [21][79]