Aix-en-Provence, 30 September 2025 (6:00 p.m.) HIGHCO: ACQUISITION OF SOGEC AND BUDGETBOX FINALISED HighCo announces that it has completed the acquisition of the promotion activities of Sogec and of BudgetBox. This acquisition aims to strengthen HighCo’s positioning on the promotions market and boost growth in the Activation division. As a reminder, Sogec is a French agency specialising in omnichannel promotion activation. It offers a range of marketing solutions: discount coupon issuing and processing, dig ...

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]