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Ibotta Reports Third Quarter 2024 Financial Results

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Ibotta (NYSE: IBTA) reported strong Q3 2024 financial results with revenue growing 16% year-over-year to $98.6 million. The company achieved net income of $17.2 million and Adjusted EBITDA of $36.5 million, representing a 37% margin. Total redemptions increased 43% to 97.4 million, while redeemers grew 63% to 15.3 million. The growth was primarily driven by Walmart program expansion.

The company generated $39.5 million in operating cash flow and $36.7 million in free cash flow. For Q4 2024, Ibotta expects revenue of $100-106 million and Adjusted EBITDA of $30-34 million.

Ibotta (NYSE: IBTA) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un fatturato in crescita del 16% rispetto all'anno precedente, arrivando a $98,6 milioni. L'azienda ha raggiunto un utile netto di $17,2 milioni e un EBITDA rettificato di $36,5 milioni, rappresentando un margine del 37%. Le riscossioni totali sono aumentate del 43% a 97,4 milioni, mentre gli utilizzatori sono cresciuti del 63% a 15,3 milioni. Questa crescita è stata principalmente guidata dall'espansione del programma Walmart.

L'azienda ha generato $39,5 milioni in flusso di cassa operativo e $36,7 milioni in flusso di cassa libero. Per il quarto trimestre del 2024, Ibotta prevede un fatturato compreso tra $100 e $106 milioni e un EBITDA rettificato tra $30 e $34 milioni.

Ibotta (NYSE: IBTA) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos que crecieron un 16% interanual, alcanzando los $98.6 millones. La empresa logró un ingreso neto de $17.2 millones y un EBITDA ajustado de $36.5 millones, lo que representa un margen del 37%. Las redenciones totales aumentaron un 43% a 97.4 millones, mientras que los canjeadores crecieron un 63% a 15.3 millones. Este crecimiento fue impulsado principalmente por la expansión del programa de Walmart.

La empresa generó $39.5 millones en flujo de caja operativo y $36.7 millones en flujo de caja libre. Para el cuarto trimestre de 2024, Ibotta prevé ingresos de entre $100 y $106 millones y un EBITDA ajustado de entre $30 y $34 millones.

Ibotta (NYSE: IBTA)는 2024년 3분기 재무 결과가 강력하다고 보고했으며, 수익은 전년 대비 16% 성장하여 9860만 달러에 도달했습니다. 회사는 1720만 달러의 순이익과 3650만 달러의 조정된 EBITDA를 달성했으며, 이는 37%의 마진을 나타냅니다. 총 리딤 금액은 43% 증가하여 9740만 달러에 이르렀으며, 리딤 사용자는 63% 증가하여 1530만 명에 달했습니다. 성장은 주로 월마트 프로그램 확장에 의해 추진되었습니다.

회사는 3950만 달러의 운영 현금 흐름과 3670만 달러의 자유 현금 흐름을 창출했습니다. 2024년 4분기 동안 Ibotta는 1억 달러에서 1억 600만 달러의 수익과 3000만 달러에서 3400만 달러의 조정 EBITDA를 예상하고 있습니다.

Ibotta (NYSE: IBTA) a annoncé de bons résultats financiers pour le troisième trimestre 2024, avec des revenus en hausse de 16% par rapport à l'année précédente, atteignant 98,6 millions de dollars. L'entreprise a réalisé un bénéfice net de 17,2 millions de dollars et un EBITDA ajusté de 36,5 millions de dollars, représentant une marge de 37%. Les totalisations ont augmenté de 43% pour atteindre 97,4 millions, tandis que le nombre de bénéficiaires a crû de 63% pour atteindre 15,3 millions. Cette croissance a été principalement soutenue par l'expansion du programme Walmart.

L'entreprise a généré 39,5 millions de dollars de flux de trésorerie opérationnel et 36,7 millions de dollars de flux de trésorerie libre. Pour le quatrième trimestre 2024, Ibotta prévoit des revenus compris entre 100 et 106 millions de dollars et un EBITDA ajusté entre 30 et 34 millions de dollars.

Ibotta (NYSE: IBTA) berichtete von starken finanziellen Ergebnissen für das 3. Quartal 2024, mit einem Umsatz von 98,6 Millionen US-Dollar, der im Jahresvergleich um 16% gewachsen ist. Das Unternehmen erzielte einen Nettogewinn von 17,2 Millionen US-Dollar und ein bereinigtes EBITDA von 36,5 Millionen US-Dollar, was eine Marge von 37% darstellt. Die Gesamtredemptions stiegen um 43% auf 97,4 Millionen, während die Nutzer um 63% auf 15,3 Millionen wuchsen. Das Wachstum wurde hauptsächlich durch die Expansion des Walmart-Programms getrieben.

Das Unternehmen generierte 39,5 Millionen US-Dollar an operativem Cashflow und 36,7 Millionen US-Dollar an freiem Cashflow. Für das 4. Quartal 2024 erwartet Ibotta einen Umsatz zwischen 100 und 106 Millionen US-Dollar sowie ein bereinigtes EBITDA zwischen 30 und 34 Millionen US-Dollar.

Positive
  • Revenue grew 16% YoY to $98.6 million
  • Net income increased 105% YoY to $17.2 million
  • Adjusted EBITDA margin improved to 37% from 28% YoY
  • Total redemptions increased 43% YoY to 97.4 million
  • Generated $39.5M in operating cash flow and $36.7M in free cash flow
Negative
  • Direct-to-consumer redemptions declined 17% YoY
  • Direct-to-consumer redeemers decreased 10% YoY
  • Redemption revenue per redemption decreased 10% YoY to $0.87

Insights

The Q3 2024 results demonstrate robust financial performance with several key highlights: revenue grew 16% YoY to $98.6 million, while redemption revenue surged 28%. The company achieved impressive profitability with $17.2 million in net income (17% margin) and $36.5 million in Adjusted EBITDA (37% margin).

The expansion of the Walmart program has been transformative, driving redeemer growth of 63% YoY to 15.3 million users. Strategic partnerships with Schnucks and Instacart indicate strong market positioning. The company's robust cash generation, with $93.9 million YTD operating cash flow, supports continued growth initiatives and share repurchases.

Forward guidance suggests continued momentum, projecting Q4 revenue of $100-106 million with Adjusted EBITDA margins around 31%. The company's digital promotions network is gaining traction as CPG brands seek efficient sales channels.

The significant increase in third-party publisher redemptions (120% YoY) signals a successful network effect in Ibotta's digital promotions platform. The expansion beyond direct-to-consumer to a broader network strategy is proving effective, with total redemptions reaching 97.4 million, up 43% YoY.

While D2C metrics show some decline (redemptions down 17% YoY), the shift toward third-party publishing represents a more scalable business model. The strategic partnership with Instacart and integration with Schnucks' electronic shelf labels demonstrates the platform's evolution toward an omnichannel presence, particularly valuable as consumers seek savings amid inflation pressures.

Grew revenue by 16% year-over-year to $98.6 million and non-GAAP revenue by 19%

Grew redemption revenue by 28% year-over-year and non-GAAP redemption revenue by 32%

Generated net income of $17.2 million, representing net income as a percent of revenue of 17%, and Adjusted EBITDA of $36.5 million, representing a 37% Adjusted EBITDA margin

Generated year-to-date cash from operating activities of $93.9 million and free cash flow of $86.3 million

DENVER, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Ibotta, Inc. (NYSE: IBTA), which operates the largest digital promotions network in North America, today announced financial results for the third quarter ended September 30, 2024.

“Our strong third quarter results were a function of the continued growth of our digital promotions network,” said Ibotta CEO and founder, Bryan Leach. “Ibotta is focused on delivering incremental sales efficiently for our brand partners, particularly as many CPGs are looking for ways of offsetting year-over-year declines in market share.”

Third Quarter 2024 Financial Highlights:

  • Total revenue of $98.6 million, representing year-over-year growth of 16%. Excluding a one-time breakage benefit of $2.1 million in the third quarter of 2023, non-GAAP revenue growth was 19%.
  • Total redemption revenue of $84.5 million, an increase of 28% year-over-year. Excluding a one-time D2C redemption revenue breakage benefit of $2.1 million in the third quarter of 2023, non-GAAP redemption revenue growth was 32%.
  • During the quarter, the IPN had 15.3 million redeemers, compared to 9.4 million redeemers in the third quarter of 2023, an increase of 63% year-over-year. The primary driver of year-over-year growth was the expansion of the Walmart program (which initially launched in the third quarter of 2022 to members of Walmart’s paid membership program, Walmart+) to all Walmart customers with a Walmart.com account in the third quarter of 2023.
  • Increased redemptions to 97.4 million, compared to 67.9 million in the third quarter of 2023, an increase of 43% year-over-year.
  • Generated net income of $17.2 million, representing net income as a percent of revenue of 17%, and adjusted net income of $31.4 million, representing adjusted net income as a percent of revenue of 32%.
  • Delivered Adjusted EBITDA of $36.5 million, representing an Adjusted EBITDA margin of 37%.
  • Generated cash from operating activities of $39.5 million and free cash flow of $36.7 million.
  • Repurchased 0.3 million shares for a total of $15.6 million at an average price per share of $56.77, exclusive of immaterial broker commissions and legal costs.

The following table summarizes the Company’s consolidated financial results for the three and nine months ended September 30, 2024 and 2023:

 Three months ended
September 30,
   Nine months ended
September 30,
  
  2024   2023  %
Change
  2024   2023  %
Change
 (in thousands, except per share figures and percentages)
GAAP Results           
Redemption revenue$84,485  $66,007  28% $226,425  $165,981  36%
Revenue$98,621  $85,287  16% $268,874  $220,363  22%
Net income (loss)$17,239  $8,413  105% $(7,430) $19,471  (138)%
Net income (loss) per share, diluted$0.51  $0.31  65% $(0.34) $0.73  (147)%
Net income (loss) as a percent of revenue 17%  10%   (3)%  9%  
            
Non-GAAP Results           
Non-GAAP redemption revenue$84,485  $63,887  32% $226,425  $153,291  48%
Non-GAAP revenue$98,621  $83,167  19% $268,874  $207,673  29%
Adjusted EBITDA$36,519  $24,139  51% $84,452  $49,850  69%
Adjusted EBITDA margin 37%  28%    31%  23%  
Adjusted net income$31,409  $19,167  64% $66,666  $36,580  82%
Adjusted net income per share, diluted$0.94  $0.71  32% $2.71  $1.37  98%


The following table summarizes the Company’s performance metrics for the three and nine months ended September 30, 2024 and 2023:

 Three months ended
September 30,
   Nine months ended
September 30,
  
  2024  2023 %
Change
  2024  2023 %
Change
 (in thousands, except per share figures and percentages)
Performance Metrics           
Redemptions:           
Direct-to-consumer redemptions 31,571  37,884 (17)%  87,819  105,034 (16)%
Third-party publisher redemptions 65,795  29,972 120%  161,728  57,296 182%
Total redemptions 97,366  67,856 43%  249,547  162,330 54%
Redeemers:           
Direct-to-consumer redeemers 1,909  2,117 (10)%  1,879  2,002 (6)%
Third-party publisher redeemers 13,378  7,234 85%  11,946  4,448 169%
Total redeemers 15,287  9,351 63%  13,825  6,449 114%
Redemptions per redeemer:           
Direct-to-consumer redemptions per redeemer 16.5  17.9 (8)%  46.7  52.5 (11)%
Third-party publisher redemptions per redeemer 4.9  4.1 20%  13.5  12.9 5%
Total redemptions per redeemer 6.4  7.3 (12)%  18.0  25.2 (29)%
Redemption revenue per redemption:           
Direct-to-consumer redemption revenue per redemption$1.05 $1.15 (9)% $1.12 $1.18 (5)%
Third-party publisher redemption revenue per redemption$0.78 $0.75 4% $0.79 $0.74 7%
Total redemption revenue per redemption$0.87 $0.97 (10)% $0.91 $1.02 (11)%


Note that certain figures shown above may not recalculate due to rounding.

Third Quarter 2024 Business Highlights:

  • Enabled digital offers at Schnuck Markets Inc. (Schnucks) and subsequent to quarter end, integrated our offers with Schnucks’ electronic shelf labels. Ibotta and Schnucks began collaborating on research and development initiatives related to novel ways of delivering personalized savings to consumers.
  • During the quarter, Ibotta and Instacart entered into a multi-year strategic partnership to bring Instacart customers savings on their groceries.
  • Subsequent to quarter-end, we began testing and piloting digital offers on Instacart properties. We continue to expect that we will be fully launched by the end of the year.

Financial Guidance:

Fourth quarter 2024 outlook summary:

  • Revenue of $100 - $106 million, a year-over-year increase of 4% at the midpoint on a non-GAAP basis excluding the breakage benefit during the fourth quarter of 2023.
  • Adjusted EBITDA of $30 - $34 million, representing a margin of 31% at the midpoint.

Guidance for Adjusted EBITDA is earnings before interest (income) expense, net, provision for (benefit from) income tax, and depreciation and amortization, and excludes stock-based compensation, change in fair value of derivative, loss on debt extinguishment, and other expense, net. We have not reconciled Adjusted EBITDA to GAAP net income because we do not provide guidance on GAAP net income and would not be able to present the various reconciling cash and non-cash items between the GAAP and non-GAAP financial measures since certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted, including share-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items could have a significant impact on the Company's GAAP net income.

Use of Non-GAAP Financial Information

Included within this press release are the non-GAAP financial measures of non-GAAP revenue, non-GAAP redemption revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income as a percent of revenue, adjusted diluted net income per share and free cash flow that supplement the condensed financial statements of the Company prepared under generally accepted accounting principles (GAAP). The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please see the accompanying tables for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents.

Non-GAAP revenue and non-GAAP redemption revenue exclude the breakage benefit. Adjusted EBITDA is earnings before interest (income) expense, net, provision for (benefit from) income tax, and depreciation and amortization, and excludes stock-based compensation, change in fair value of derivative, loss on debt extinguishment, and other expense, net. Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percent of revenue. Adjusted net income excludes stock-based compensation, loss on debt extinguishment, change in fair value of derivative, and the related income tax effects. The income tax effect of non-GAAP adjustments is the difference between GAAP and non-GAAP income tax expense. Non-GAAP income tax expense is computed on non-GAAP pre-tax income (GAAP pre-tax income adjusted for non-GAAP adjustments). Adjusted diluted net income per share is calculated as adjusted net income divided by diluted weighted average common shares outstanding. Free cash flow is defined as cash provided by operating activities, less additions to property and equipment and capitalization of software development costs.

The Company's management believes that these non-GAAP measures can assist investors in evaluating the Company's operational trends, financial performance, and cash-generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures versus their nearest GAAP equivalents. Other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.

Third Quarter 2024 Financial Results Webcast and Conference Call Details

When:Wednesday, November 13, 2024 at 2:30 p.m. MT/ 4:30 p.m. ET
Live Call:US/Canada: 877-405-1211; International: +1 215-268-9896
Webcast:ir.ibotta.com
Audio replay:An audio replay of the call will be available beginning about two hours after the call. To listen to the replay in the United States please dial 877-660-6853 (replay code 13749717). Outside of the United States, please dial 201-612-7415.


Key Business Terms and Notes

Ibotta Performance Network (IPN): An AI-enabled technology platform that allows CPG brands to deliver digital promotions to consumers via a network of publishers, in a coordinated fashion and on a fee-per-sale basis.

One-time Breakage Benefit: On the Company’s balance sheet, the Company has a user redemption liability balance that is an accumulation of direct-to-consumer redeemers’ account balances net of estimated breakage. Consumers’ accounts that have no activity for six months are considered inactive and charged a $3.99 per month maintenance fee (i.e., breakage) until the balance is reduced to zero or new activity ensues. Every month the user redemption liability increases by the amount credited to D2C redeemers for redemptions and is offset by D2C redeemer cash outs, actual inactivity maintenance fees, and estimated breakage. The Company estimates breakage at the time of user redemption and reduces the user redemption liability accordingly. In 2023, the Company made an update to fix a software error to correctly charge maintenance fees to all inactive D2C redeemers on a go-forward basis. This change resulted in a short-term benefit to U.S. GAAP revenue in 2023. For the three and nine months ended September 30, 2023, the breakage benefit to revenue totaled $2.1 million and $12.7 million, respectively. There was no breakage benefit associated with the three and nine months ended September 30, 2024.

Redeemers: ​​A consumer who has redeemed at least one digital offer within the quarter. If a consumer were to redeem on more than one publisher during that period, they would be counted as multiple redeemers. Year-to-date redeemers are calculated as the average of current year quarter-to-date redeemers.

Redemptions: A verified purchase of an item qualifying for an offer by a client on the IPN.

Redemption Revenue: The Company’s customers promote their products and services to consumers through cash back offers on the IPN. The Company earns a fee per redemption, which is recognized in the period in which the redemption occurred. The Company may also charge fees to set up a redemption campaign which are deferred and recognized over the average duration of historical redemption campaigns.

About Ibotta ("I bought a...")

Ibotta (NYSE: IBTA) is a leading performance marketing platform allowing brands to deliver digital promotions to over 200 million consumers through a network of publishers called the Ibotta Performance Network (IPN). The IPN allows marketers to influence what people buy, and where and how often they shop – all while paying only when their campaigns directly result in a sale. American shoppers have earned over $2.0 billion through the IPN since 2012. The largest tech IPO in history to come out of Colorado, Ibotta is headquartered in Denver, and is continually listed as a top place to work by The Denver Post and Inc. Magazine.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements relating to expectations concerning matters that are not historical facts may constitute forward-looking statements. Forward-looking statements may include, without limitation, statements regarding our expectation that we will be fully launched on Instacart by the end of the year, and the Company’s financial guidance, such as revenue and Adjusted EBITDA. When words such as “believe,” “expect,” “anticipate,” “will”, “outlook” or similar expressions are used, the Company is making forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give readers any assurance that such expectations will prove correct. These forward-looking statements involve risks, uncertainties and assumptions, including those related to the Company’s relatively limited operating history, which makes it difficult to evaluate the Company’s business and prospects, the demands and expectations of clients and the ability to attract and retain clients. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company. These and other factors are disclosed in the Company’s reports filed from time to time with the Securities and Exchange Commission, available at www.sec.gov. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof, except as required by law.


 
Ibotta, Inc.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(unaudited)
 
 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
Revenue$98,621  $85,287  $268,874  $220,363 
Cost of revenue(1) 12,172   10,777   34,970   31,671 
Gross profit 86,449   74,510   233,904   188,692 
Operating expenses(1):       
Sales and marketing(2) 27,761   37,639   105,908   81,449 
Research and development 16,285   12,391   47,452   36,306 
General and administrative 20,631   12,109   62,493   38,180 
Depreciation and amortization 1,065   1,501   3,096   3,015 
Total operating expenses 65,742   63,640   218,949   158,950 
Income from operations 20,707   10,870   14,955   29,742 
Interest income (expense), net 4,436   (1,556)  5,303   (4,773)
Loss on debt extinguishment       (9,630)   
Other expense, net (16)  (1,511)  (3,132)  (3,252)
Income before (provision for) benefit from income taxes 25,127   7,803   7,496   21,717 
(Provision for) benefit from income taxes (7,888)  610   (14,926)  (2,246)
Net income (loss)$17,239  $8,413  $(7,430) $19,471 
Net income (loss) per share:       
Basic$0.56  $0.94  $(0.34) $2.19 
Diluted$0.51  $0.31  $(0.34) $0.73 
Weighted average common shares outstanding:       
Basic 30,663,263   8,960,311   21,909,949   8,887,966 
Diluted 33,567,489   26,830,524   21,909,949   26,629,394 


(1)   Amounts include stock-based compensation expense as follows (in thousands):

 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
Cost of revenue$476  $151  $999  $504 
Sales and marketing(2) 4,347   9,627   34,777   10,749 
Research and development 2,447   523   7,036   1,560 
General and administrative 6,405   474   20,525   1,546 
Total stock-based compensation expense$13,675  $10,775  $63,337  $14,359 
                

(2)   Stock-based compensation expense included in sales and marketing includes common stock warrant expense of $2.2 million and $27.1 million recognized during the three and nine months ended September 30, 2024, respectively, and $9.1 million recognized during the three and nine months ended September 30, 2023.


 
Ibotta, Inc.
CONDENSED BALANCE SHEETS
(In thousands)
 
 September 30,
2024
 December 31,
2023
 (unaudited)  
Assets   
Current Assets:   
Cash and cash equivalents$341,274  $62,591 
Accounts receivable, net 227,792   226,439 
Prepaid expenses and other current assets 6,992   9,314 
Total current assets 576,058   298,344 
Property and equipment, net 2,057   2,541 
Capitalized software development costs, net 15,437   12,844 
Equity investment 4,531   4,531 
Other long-term assets 183   1,530 
Total assets$598,266  $319,790 
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity   
Current liabilities:   
Accounts payable$8,251  $8,937 
Due to third-party publishers 96,337   73,155 
Deferred revenue 4,756   2,628 
User redemption liability 80,032   84,531 
Accrued expenses 18,500   24,582 
Other current liabilities 3,596   4,317 
Total current liabilities 211,472   198,150 
Long-term liabilities:   
Long-term debt, net    64,448 
Convertible notes derivative liability    25,400 
Other long-term liabilities 8,836   3,864 
Total liabilities 220,308   291,862 
Redeemable convertible preferred stock     
Stockholders’ equity:   
Preferred stock     
Common stock     
Class A common stock     
Class B common stock     
Additional paid-in capital 610,263   237,116 
Treasury stock (15,687)   
Accumulated deficit (216,618)  (209,188)
Total stockholders' equity 377,958   27,928 
Total liabilities, redeemable convertible preferred stock, and stockholders' equity$598,266  $319,790 


 
Ibotta, Inc.
CONDENSED STATEMENTS OF CASH FLOWS 
(In thousands)
(unaudited)
 
 Nine months ended
September 30,
  2024   2023 
Operating activities   
Net (loss) income$(7,430) $19,471 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:   
Depreciation and amortization 6,160   5,749 
Impairment of capitalized software development costs 437   130 
Stock-based compensation expense 36,253   5,307 
Common stock warrant expense 27,084   9,052 
Credit loss expense 1,217   441 
Loss on extinguishment of debt 9,630    
Amortization of debt discount and issuance costs 1,036   2,475 
Change in fair value of convertible notes derivative liability 3,085   3,200 
Other 36   51 
Changes in assets and liabilities:   
Accounts receivable (2,561)  (63,270)
Other current and long-term assets (977)  472 
Accounts payable 188   826 
Due to third-party publishers 23,182   26,215 
Accrued expenses (5,926)  (2,773)
Deferred revenue 2,128   955 
User redemption liability (4,499)  (7,936)
Other current and long-term liabilities 4,887   (1,317)
Net cash provided by (used in) operating activities 93,930   (952)
Investing activities   
Additions to property and equipment (655)  (372)
Additions to capitalized software development costs (7,001)  (5,871)
Maturities of short-term investments    27,900 
Net cash (used in) provided by investing activities (7,656)  21,657 
Financing activities   
Proceeds from exercise of stock options 7,649   1,154 
Proceeds from initial public offering, net 206,692    
Deferred offering costs (5,972)  (4)
Purchase of treasury stock (15,611)   
Taxes paid related to net share settlement of equity awards (246)   
Other financing activities (103)   
Net cash provided by financing activities 192,409   1,150 
Net change in cash and cash equivalents 278,683   21,855 
Cash and cash equivalents, beginning of period 62,591   17,818 
Cash and cash equivalents, end of period$341,274  $39,673 


The following table disaggregates the Company’s direct-to-consumer and third-party publishers revenue by redemption and ad & other revenue:

Supplemental Revenue Detail

 Three months ended
September 30,
   Nine months ended
September 30,
  
  2024  2023 %
Change
  2024  2023 %
Change
 (in thousands, except percentages)
Direct-to-consumer revenue           
Redemption revenue$33,144 $43,620 (24)% $98,426 $123,421 (20)%
Ad & other revenue 14,136  19,280 (27)%  42,449  54,382 (22)%
Total direct-to-consumer revenue 47,280  62,900 (25)%  140,875  177,803 (21)%
Third-party publishers revenue           
Redemption revenue 51,341  22,387 129%  127,999  42,560 201%
Ad & other revenue    %     %
Total third-party publishers revenue 51,341  22,387 129%  127,999  42,560 201%
Total           
Redemption revenue 84,485  66,007 28%  226,425  165,981 36%
Ad & other revenue 14,136  19,280 (27)%  42,449  54,382 (22)%
Total revenue$98,621 $85,287 16% $268,874 $220,363 22%


Non-GAAP Financial Metrics
(In thousands, except shares, per share amounts, and percentages)

The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release:

Reconciliation of Adjusted EBITDA

 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
Net income (loss)$17,239  $8,413  $(7,430) $19,471 
Add (deduct):       
Interest (income) expense, net (4,436)  1,556   (5,303)  4,773 
Depreciation and amortization 2,137   2,494   6,160   5,749 
Stock-based compensation 13,675   10,775   63,337   14,359 
Change in fair value of derivative    1,500   3,085   3,200 
Loss on debt extinguishment       9,630    
Provision for (benefit from) income taxes 7,888   (610)  14,926   2,246 
Other expense, net 16   11   47   52 
Adjusted EBITDA$36,519  $24,139  $84,452  $49,850 
Revenue$98,621  $85,287  $268,874  $220,363 
Net income (loss) as a percent of revenue 17%  10% (3)%  9%
Adjusted EBITDA margin 37%  28%  31%  23%


Reconciliation of Adjusted Net Income

 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
Net income (loss)$17,239  $8,413  $(7,430) $19,471 
Stock-based compensation 13,675   10,775   63,337   14,359 
Loss on debt extinguishment       9,630    
Change in fair value of derivative    1,500   3,085   3,200 
Adjustment for income taxes 495   (1,521)  (1,956)  (450)
Adjusted net income$31,409  $19,167  $66,666  $36,580 
Revenue$98,621  $85,287  $268,874  $220,363 
Adjusted net income as a percent of revenue 32%  22%  25%  17%
        
Weighted average common shares outstanding, diluted 33,567,489   26,830,524   21,909,949   26,629,394 
Net income (loss) per share, diluted$0.51  $0.31  $(0.34) $0.73 
        
Adjusted weighted average common shares outstanding, diluted 33,567,489   26,830,524   24,598,956   26,629,394 
Adjusted net income per share, diluted$0.94  $0.71  $2.71  $1.37 


Reconciliation of Non-GAAP Revenue

 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
Revenue$98,621  $85,287  $268,874  $220,363 
Breakage benefit    (2,120)     (12,690)
Non-GAAP revenue$98,621  $83,167  $268,874  $207,673 


Reconciliation of Non-GAAP Redemption Revenue

 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
Redemption revenue$84,485  $66,007  $226,425  $165,981 
Breakage benefit    (2,120)     (12,690)
Non-GAAP redemption revenue$84,485  $63,887  $226,425  $153,291 


Reconciliation of Free Cash Flow

 Three months ended
September 30,
 Nine months ended
September 30,
  2024   2023   2024   2023 
Net cash provided by (used in) operating activities$39,544  $(2,023) $93,930  $(952)
Additions to property and equipment (302)  (170)  (655)  (372)
Additions to capitalized software development costs (2,565)  (2,311)  (7,001)  (5,871)
Free cash flow$36,677  $(4,504) $86,274  $(7,195)


Contact

Corporate Communications
Hilary O’Byrne, hilary.obyrne@ibotta.com

Investor Relations
Shalin Patel, shalin.patel@ibotta.com


FAQ

What was Ibotta's (IBTA) revenue growth in Q3 2024?

Ibotta's revenue grew 16% year-over-year to $98.6 million in Q3 2024, with non-GAAP revenue growth of 19% excluding one-time benefits.

How much net income did Ibotta (IBTA) generate in Q3 2024?

Ibotta generated net income of $17.2 million in Q3 2024, representing 17% of revenue and a 105% increase from Q3 2023.

What is Ibotta's (IBTA) Q4 2024 revenue guidance?

Ibotta expects Q4 2024 revenue between $100-106 million, representing a year-over-year increase of 4% at the midpoint on a non-GAAP basis.

How many redeemers did Ibotta (IBTA) have in Q3 2024?

Ibotta had 15.3 million redeemers in Q3 2024, a 63% increase from 9.4 million in Q3 2023, primarily driven by Walmart program expansion.

Ibotta, Inc.

NYSE:IBTA

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2.07B
13.55M
51.14%
37.38%
3.04%
Software - Application
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United States of America
DENVER