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]

This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter. For CPG marketers, accurately measuring the return on investment (ROI) of promotions remains a struggle, especially for the in-store purchases that still make up about 80% of sales, despite the growth of e-commerce. Ibotta today (Nov. 3) has launched a new tool that seeks to solve this problem, per details shared with Marketing Dive. LiveLift is an in-flight ca ...