Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $83.3 million, a decline of 16% year-over-year, but adjusted EBITDA was 44% above the midpoint of guidance [20][21] - Adjusted EBITDA for Q3 was $16.6 million, representing an adjusted EBITDA margin of 20% [25] - Non-GAAP gross margin was 80%, down nearly 800 basis points year-over-year [23] Business Line Data and Key Metrics Changes - Redemption revenue was $72.1 million, down 15% year-over-year, with third-party publisher redemption revenue at $49.3 million, down 4% year-over-year, and direct-to-consumer redemption revenue at $22.8 million, down 31% year-over-year [21] - Total redeemers increased to 18.2 million, up 19% year-over-year, indicating growth in third-party redeemers [22] Market Data and Key Metrics Changes - The macro environment remains challenging for CPG companies, with consumer sentiment near an all-time low, impacting spending behavior [7][8] - Clients are adopting a cautious approach, leading to a wait-and-see strategy regarding discretionary spending [8] Company Strategy and Development Direction - The company is transforming into a full-service performance marketing platform for the CPG industry, focusing on automation and scale for 2026 [4][5] - A strategic partnership with Circana was announced to enhance measurement capabilities, allowing clients to receive independent lift studies [5][9] - The launch of LiveLift aims to help brands drive incremental sales at scale, with positive initial client feedback [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing macroeconomic challenges and the need for rigorous measurement of marketing ROI [8][9] - The company expects to bring LiveLift to market in a more scaled and automated fashion in 2026, with a focus on making it easier for clients to execute campaigns [18][19] Other Important Information - Non-GAAP operating expenses were down 1% year-over-year, but investments related to transformation were up approximately 11% [24][25] - The company ended Q3 with $223.3 million in cash and cash equivalents and repurchased approximately 1.4 million shares [25][26] Q&A Session Summary Question: Understanding LiveLift's timeline and impact - Management confirmed that they are on track for about 20 LiveLift pilots by year-end, with 83% of completed pilots leading to further campaign investments [32][33] - The timeline for clients to move from pilot to budget allocation can take up to 12 months, influenced by campaign performance and client budget cycles [34] Question: Insights on macroeconomic headwinds - Management noted that consumer sentiment is low, and clients are taking a cautious approach due to ongoing macroeconomic uncertainties, including tariffs and SNAP disruptions [36] Question: Integration of AI within the platform - AI is being used to model pre-campaign projections and optimize campaign parameters, significantly improving efficiency in campaign setup [37][38] Question: Roadmap for reducing friction across the platform - Management emphasized the need to streamline processes and improve client interactions, focusing on making it easier for clients to work with the company [39][40] Question: Contribution from Instacart and DoorDash - The partnerships with Instacart and DoorDash are progressing well, with significant growth in redeemers attributed to these channels [46][47]

Core Insights - Ibotta has launched a new tool called LiveLift aimed at improving the measurement of return on investment (ROI) for promotions in the consumer packaged goods (CPG) sector, addressing the challenge of measuring in-store purchases which account for about 80% of sales [1][2] Group 1: Tool Overview - LiveLift is an in-flight campaign measurement and optimization tool that analyzes billions of transactions from over 80 leading retailers, including Walmart, Instacart, and Doordash, to determine baseline sales and sales lift generated by promotions [2] - The tool has been piloted by major CPG brands such as Kimberly-Clark and Hain Celestial, with Liquid Death reporting a 19% sales lift and a 23% increase in daily units sold during the test [3] Group 2: Industry Impact - Ibotta plans to expand LiveLift with additional features for increased measurement frequency and optimization capabilities, aiming to enhance performance marketing for CPG brands [4] - The CEO of Ibotta, Bryan Leach, emphasized that LiveLift allows brands to reinvent their national promotion strategies, enabling them to drive incremental volume at scale with better control and efficiency [5] Group 3: Challenges and Solutions - The challenge of controlling the audience for promotions is highlighted, as ineffective targeting can lead to high costs if promotions reach consumers who would have purchased anyway [6]