Ibotta Reports First Quarter 2025 Financial Results

Grew revenue by 3% year-over-year to $84.6 million

Grew redemption revenue by 8% year-over-year to $73.4 million

Generated net income of $0.6 million, representing net income as a percent of revenue of 1%, and Adjusted EBITDA of $14.7 million, representing a 17% Adjusted EBITDA margin

Generated cash from operating activities of $19.9 million and free cash flow of $14.9 million

Ibotta, Inc. (NYSE:IBTA), which operates the largest digital promotions network in North America, today announced financial results for the first quarter ended March 31, 2025.

"We made significant progress in the first quarter in establishing Ibotta as the first full-service performance marketing platform for the CPG industry," said Ibotta CEO and founder, Bryan Leach. "We ran successful campaigns with two of the largest CPG companies in the world and showed how our latest capabilities can deliver profitable revenue growth at scale. We also expanded our pilot program to a select number of new clients, with an ambitious roadmap to scale to our full client base in the future. We are excited to demonstrate the power of applying performance marketing to a massive industry that has never had it before."

First Quarter 2025 Financial Highlights:

• Total revenue of $84.6 million, representing year-over-year growth of 3%.
• Total redemption revenue of $73.4 million, an increase of 8% year-over-year.
• During the quarter, the IPN had 17.1 million redeemers, compared to 12.5 million redeemers in the first quarter of 2024, an increase of 37% year-over-year. The primary driver of year-over-year growth was the launch of Instacart during the fourth quarter of 2024, like-for-like growth of Walmart's audience, and the launch of Family Dollar in Q2 of 2024.
• Increased redemptions to 82.8 million, compared to 71.5 million in the first quarter of 2024, an increase of 16% year-over-year.
• Generated net income of $0.6 million, representing net income as a percent of revenue of 1%, and adjusted net income of $12.1 million, representing adjusted net income as a percent of revenue of 14%.
• Delivered Adjusted EBITDA of $14.7 million, representing an Adjusted EBITDA margin of 17%.
• Generated cash from operating activities of $19.9 million and free cash flow of $14.9 million.
• Repurchased 1.8 million shares for a total of $72.7 million at an average price per share of $39.47, exclusive of broker commissions and excise tax.

The following table summarizes the Company's financial results for the three months ended March 31, 2025 and 2024:

The following table summarizes the Company's performance metrics for the three months ended March 31, 2025 and 2024:

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

First Quarter 2025 Business Highlights:

• Chris Riedy joined Ibotta as Chief Revenue Officer beginning on January 13, 2025.
• Announced a multi-year partnership with DoorDash to provide DoorDash customers with access to Ibotta's industry-leading catalog of digital offers.
• Subsequent to the quarter-end, our digital offers became live to most customers on DoorDash with an expectation for the rollout to be completed in the near future.
• Successfully launched our first CPID-based campaigns with two leading CPG clients.

Financial Guidance:

Second quarter 2025 outlook summary:

• Revenue of $86.5 - $92.5 million, a year-over-year increase of 2% at the midpoint
• Adjusted EBITDA of $17.0 - $22.0 million, representing a margin of 22% 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, restructuring charges, and other expense, net. We have not reconciled Adjusted EBITDA to GAAP net income for our guidance 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 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.

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, restructuring charges, and other expense, net. Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percent of revenue. Adjusted net income excludes stock-based compensation, change in fair value of derivative, restructuring charges, 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. The Company's definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. These non-GAAP measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, but are included solely for informational and comparative purposes. Non-GAAP financial measures are subject to limitations and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. In light of these limitations, management also reviews the specific items that are excluded from our non-GAAP measures, as well as trends in these items.

First Quarter 2025 Financial Results Webcast and Conference Call Details

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.

Redeemers: ​​A consumer who has redeemed at least one digital offer within the time period specified. 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 $2.4 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 by our CEO and founder about our ability to transition our product and go-to-market, 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.

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

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:

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Corporate Communications

Hilary O'Byrne, [email protected]

Investor Relations

Shalin Patel, [email protected]