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]
Ibotta, Inc.(IBTA) - 2025 Q3 - Earnings Call Transcript