Core Viewpoint - Ibotta is participating in a conference, highlighting its presence in the industry and introducing Chris Riedy as the new Chief Revenue Officer [1] Group 1 - The discussion includes forward-looking statements that reflect Ibotta's current expectations based on available information [2] - Actual results for Ibotta could differ materially from these expectations, indicating potential variability in performance [2] - For detailed risk factors, Ibotta's recent SEC filings, including its 10-K and 10-Q, should be referenced [2]

Ibotta Conference Call Summary Company Overview - **Company**: Ibotta (NYSE: IBTA) - **Mission**: To make every purchase rewarding by connecting shoppers with manufacturer offers and retailers through a mobile application [6][7] Key Points Business Model and Growth - Ibotta has achieved approximately **50 million app downloads** and expanded its reach to over **200 million shoppers** through partnerships with major retailers like Walmart, Dollar General, and Instacart [6][8] - The company transitioned from a service provider to a solutions provider, focusing on delivering profitable revenue growth for manufacturers [10][11] Sales Strategy and Customer Engagement - Ibotta emphasizes a **customer-centric approach**, aiming to build trust and alignment with clients [10][14] - The sales organization has been restructured into two channels: an enterprise sales team for high-touch relationships and an emerging sales team for mid-market companies [14][15] - The company is focused on simplifying account management and enhancing sales support through better training and tools [16][17] Market Position and Competitive Landscape - Ibotta aims to provide undeniable proof of contribution margin-positive revenue growth, positioning itself as complementary to retail media networks rather than competitive [42][43] - The company sees significant opportunities in the **CPG market**, with approximately **$200 billion** spent on marketing by this cohort [46] Redeemer Behavior and Market Opportunities - The American shopper is increasingly value-conscious, especially during the holiday season, which presents challenges for retailers [49] - Ibotta's Performance Network aims to connect manufacturers with shoppers effectively, expanding the number of offers available to consumers [51] - The company is agnostic to whether redemption occurs online or in-store, focusing on meeting shoppers where they are [53][55] Future Outlook - Ibotta is committed to continuous improvement and adaptation based on customer feedback, aiming to enhance revenue visibility and predictability [33][35] - The company plans to leverage third-party validation to build advertiser confidence and drive budget allocation [23][25] Additional Insights - The transition to a solutions provider model requires a shift in mindset among CPG advertisers, who traditionally have not focused on profitability in promotions [19][20] - Ibotta's approach includes developing joint business plans with clients to align goals and enhance revenue predictability [34][35] - The company is actively working on integrating systems and tools to streamline sales processes and improve efficiency [17][18]

Core Insights - Ibotta's CEO, Bryan Leach, is recognized for his transition from the legal industry to entrepreneurship, focusing on evolving the promotions industry [2]. Group 1 - Ronald Josey, MD and Co-Head of Tech & Communications at Citi, introduces the session and highlights the significance of Ibotta in the Internet sector [1]. - The discussion aims to explore insights from Bryan Leach regarding the evolution of the promotions industry [2].

Ibotta (IBTA) 2025 Conference Summary Company Overview - Ibotta operates in the consumer packaged goods (CPG) industry, focusing on digital promotions to help companies deliver profitable revenue growth [8][9] - The company has evolved from a direct-to-consumer app disrupting traditional paper coupons to a broader network that includes partnerships with major retailers like Walmart, Dollar General, and Instacart [10][11] Core Insights and Arguments - **Digital Promotions Evolution**: Ibotta has transitioned from traditional couponing methods to a performance-based model, allowing for lower risk and more effective promotions [10][11] - **Real-Time Measurement**: The company has developed a system for real-time measurement of incremental sales lift, a significant advancement in the CPG industry [12][13] - **Cost Per Incremental Dollar (CPID)**: Ibotta emphasizes the importance of CPID, allowing clients to assess the profitability of promotions relative to their variable costs [14][15] - **Third-Party Validation**: Ibotta has introduced third-party validation for its measurement methodologies, enhancing credibility and encouraging larger investments from clients [21][22] - **Client Engagement**: The company is shifting its sales approach from talking to procurement teams to engaging directly with brand owners and P&L managers, emphasizing the potential for profitable revenue growth [34][35] Industry Dynamics - **CPG Challenges**: Many CPG companies are facing stagnant sales and are looking for innovative solutions to regain market share [82][83] - **In-Store Promotions**: Ibotta is collaborating closely with Walmart to enhance in-store digital engagement and promote awareness of savings opportunities [63][65] - **Partnerships with Digital Platforms**: The company is also seeing growth in partnerships with digital-native platforms like Instacart and DoorDash, which are crucial for expanding its reach [71][75] Additional Important Points - **Salesforce Optimization**: Ibotta is restructuring its salesforce to better align with its strategic goals, focusing on higher-level engagements with decision-makers [47][52] - **Pricing Strategy**: The company is rationalizing its pricing model to be more client-centric, moving towards a simplified pricing structure that enhances profitability for clients [58][60] - **Capital Allocation**: Ibotta is committed to responsible capital allocation, balancing investments in R&D, share buybacks, and maintaining cash reserves for future uncertainties [86][87] This summary encapsulates the key points discussed during the Ibotta conference, highlighting the company's strategic direction, industry challenges, and innovative approaches to measurement and client engagement.

Core Viewpoint - Johnson Fistel, PLLP is investigating potential claims against Ibotta, Inc. officers and directors for possible breaches of fiduciary duties owed to the company [1] Group 1: Legal Investigation - The investigation focuses on Ibotta, Inc. shareholders who purchased shares around the April 18, 2024 IPO and still hold them [2] - A federal securities fraud class action complaint alleges that Ibotta's Registration Statement contained false or misleading statements, particularly regarding the risks associated with its contract with The Kroger Co. [2] - The complaint highlights that the Kroger contract was at-will, allowing termination without notice, which was not adequately disclosed to investors [2] Group 2: Shareholder Rights - Shareholders are encouraged to learn more about their legal rights and may be eligible for corporate reforms, return of funds, and court-approved incentive awards at no cost [3] - Johnson Fistel, PLLP is a recognized law firm representing investors in shareholder derivative and securities class action lawsuits [3]

Core Insights - Ibotta, Inc. (NYSE: IBTA) has shown a decline in business performance, indicating a shift from its previous high-growth status [1] Company Overview - Ibotta was previously recognized as a fast-growing company but recent earnings results suggest a downturn in its business trajectory [1] Investment Focus - The Cash Flow Club emphasizes investing in businesses with strong cash generation and significant durability, suggesting that timing is crucial for maximizing rewards [1]

分组1 - Ibotta reported quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.18 per share, compared to a loss of $1.32 per share a year ago, representing an earnings surprise of -55.56% [1] - The company posted revenues of $86.03 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 4.09%, and down from $87.93 million year-over-year [2] - Ibotta shares have lost about 49.5% since the beginning of the year, while the S&P 500 has gained 9.6% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.37 on revenues of $101.8 million, and $0.96 on revenues of $384.7 million for the current fiscal year [7] - The Zacks Industry Rank for Technology Services is currently in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - The company reported revenue of $86 million for Q2 2025, a decline of 2% year over year, and adjusted EBITDA of $17.9 million, representing an adjusted EBITDA margin of 21% [27][30] - Revenue was below the guidance range provided in the previous quarter, with adjusted EBITDA in the lower half of the range [6][25] - The company is guiding for Q3 revenue in the range of $79 million to $84 million, representing a 17% decline at the midpoint [32] Business Line Performance - Redemption revenue was $73.2 million, down 1% year over year, with third-party publisher redemption revenue increasing by 17% to $48.6 million, while DTC redemption revenue decreased by 24% to $24.7 million [27][30] - Total redeemers reached 17.3 million, up 27% year over year, indicating strong demand on the network [28] - Redemption revenue per redemption was $0.91, down 1% year over year, primarily due to a shift towards third-party redemptions [29] Market Performance - The company has seen growth in third-party redeemers, driven by partnerships with Instacart and DoorDash [28] - The company is working to increase awareness and adoption of digital manufacturer offers among in-store shoppers, particularly with Walmart [23][57] Company Strategy and Industry Competition - The company is undergoing a transformation to capture a larger share of the CPG marketing spend, moving towards a performance marketing model [7][9] - The strategy includes improving measurement and automation of promotions, which is expected to enhance client engagement and drive revenue growth [8][24] - The company is focused on building relationships with higher-level decision-makers within key clients to facilitate larger investments [9][40] Management Commentary on Operating Environment and Future Outlook - Management acknowledged short-term headwinds related to the transformation and the need for clients to find budgets for new pilots [10][14] - The macroeconomic environment is challenging, with some larger clients pausing promotional spending due to economic uncertainties [66] - Management remains optimistic about the long-term trajectory, citing positive reactions to new capabilities and ongoing discussions with clients [21][24] Other Important Information - The company ended the quarter with $250.5 million in cash and cash equivalents and repurchased approximately 1.4 million shares at an average price of $46.59 [31] - The company is investing heavily in R&D to enhance its technology and product offerings [71] Q&A Session Summary Question: Can you elaborate on the rollout of CPID and the results from the third-party data provider? - Management explained that the third-party data provider has shown statistically significant lifts in sales, indicating that Ibotta's conservative estimates may be understated [39] Question: What are the key pieces of strategy that need to be executed as you move into 2026? - Management identified three areas: consolidating sales execution benefits, broadening the go-to-market approach, and resolving product and tool challenges [46][48] Question: How is the supply side reacting to the current environment? - Management noted that some larger clients are taking a cautious approach to promotional spending due to economic conditions, but they are working to demonstrate the value of their platform [66][68] Question: What is the expected timeline for automated incrementality measurement? - Management indicated that while internal measurement tools are advanced, third-party measurement automation will take time to fully implement, with hopes to scale by 2026 [95][96]

Part I: [Financial Information](index=5&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) This section presents unaudited financial statements and management's analysis of financial condition and operations [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed financial statements for the quarterly period ended June 30, 2025. It includes the balance sheets, statements of operations, statements of stockholders' equity, and statements of cash flows, along with accompanying notes that provide detailed explanations of the company's accounting policies and financial data [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and stockholders' equity Condensed Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$600,778** | **$678,429** | | Cash and cash equivalents | $250,549 | $349,282 | | Accounts receivable, net | $208,976 | $220,883 | | **Total Liabilities** | **$246,650** | **$221,146** | | User redemption liability | $70,922 | $74,006 | | **Total Stockholders' Equity** | **$354,128** | **$457,283** | - Total assets decreased primarily due to a reduction in cash and cash equivalents, while total stockholders' equity declined significantly, driven by a large increase in treasury stock from **$31.3 million** to **$172.9 million** due to share repurchases[16](index=16&type=chunk) [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) This section presents the company's financial performance, including revenue, expenses, and net income or loss Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$86,029** | **$87,926** | **$170,603** | **$170,253** | | Gross Profit | $68,104 | $75,643 | $135,586 | $147,455 | | Income (Loss) from Operations | $1,238 | $(21,657) | $(1,565) | $(5,752) | | **Net Income (Loss)** | **$2,490** | **$(33,966)** | **$3,045** | **$(24,669)** | | Diluted EPS | $0.08 | $(1.32) | $0.10 | $(1.41) | - The company shifted from a significant net loss in Q2 and H1 2024 to a net income in the same periods of 2025, despite relatively flat revenue. This was primarily driven by a substantial reduction in operating expenses, particularly in Sales and Marketing[18](index=18&type=chunk) [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) This section details cash flows from operating, investing, and financing activities Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,715 | $54,386 | | Net cash used in investing activities | $(11,968) | $(4,789) | | Net cash (used in) provided by financing activities | $(132,830) | $205,670 | | **Net change in cash** | **$(99,083)** | **$255,267** | - Financing activities resulted in a significant cash outflow of **$132.8 million** in H1 2025, mainly due to **$140.2 million** in treasury stock purchases. This contrasts sharply with H1 2024, which saw a **$205.7 million** cash inflow from the company's IPO[30](index=30&type=chunk) [Notes to the Condensed Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements%20%28Unaudited%29) This section provides detailed explanations of accounting policies, significant transactions, and financial data - The company's primary revenue source is fees from CPG brands when consumers redeem digital promotions through the Ibotta Performance Network (IPN)[34](index=34&type=chunk) - In April 2024, upon the IPO, the company's convertible notes automatically converted to Class A common stock, resulting in a **$9.6 million** loss on debt extinguishment[65](index=65&type=chunk) - A securities class action complaint was filed against the company on April 17, 2025, alleging false and misleading statements in the IPO registration statement. The company intends to defend the case vigorously[128](index=128&type=chunk)[130](index=130&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance and condition, focusing on key operational metrics, results of operations for the three and six months ended June 30, 2025 compared to 2024, and liquidity and capital resources. The analysis highlights a strategic shift with growth in third-party publisher revenue offsetting a decline in direct-to-consumer (D2C) revenue, and a significant use of cash for share repurchases [Financial and Operational Highlights](index=28&type=section&id=Financial%20and%20Operational%20Highlights) This section details Financial and Operational Highlights Key Metrics Comparison (in thousands, except per-unit data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Redemptions | 80,484 | 80,715 | 163,324 | 152,181 | | Redeemers | 17,336 | 13,702 | 17,213 | 13,095 | | Redemptions per redeemer | 4.6 | 5.9 | 9.5 | 11.6 | | Revenue | $86,029 | $87,926 | $170,603 | $170,253 | | Net Income (Loss) | $2,490 | $(33,966) | $3,045 | $(24,669) | | Adjusted EBITDA | $17,882 | $25,274 | $32,555 | $47,933 | - While total redeemers grew significantly year-over-year, redemptions per redeemer declined, indicating lower engagement per user. Adjusted EBITDA also saw a notable decrease in both the three and six-month periods[137](index=137&type=chunk) [Performance Metrics](index=29&type=section&id=Performance%20Metrics) This section details Performance Metrics - The company's growth is driven by its third-party publisher network, which saw redeemers increase from **11.9 million** to **15.7 million** in Q2 YoY[142](index=142&type=chunk)[152](index=152&type=chunk) - Conversely, the direct-to-consumer (D2C) segment experienced a decline, with D2C redeemers falling from **1.8 million** to **1.6 million** in Q2 YoY, attributed to the quantity and quality of available offers[142](index=142&type=chunk)[151](index=151&type=chunk) - Growth in third-party publisher redemptions was primarily driven by the launch of new partners, including Family Dollar, Instacart, and DoorDash[147](index=147&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section details Results of Operations Revenue Breakdown - Q2 2025 vs Q2 2024 (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total D2C Revenue | $37,441 | $46,275 | $(8,834) | (19)% | | Total Third-Party Publishers Revenue | $48,588 | $41,651 | $6,937 | 17% | | **Total Revenue** | **$86,029** | **$87,926** | **$(1,897)** | **(2)%** | - Sales and marketing expenses for Q2 2025 decreased by **$21.2 million** (42%) compared to Q2 2024, mainly due to a **$21.9 million** reduction in stock-based compensation expense, a significant portion of which was related to the Walmart Warrant[189](index=189&type=chunk) - Cost of revenue increased by **$5.6 million** (46%) in Q2 2025 compared to Q2 2024, primarily due to the addition of new third-party publishers[188](index=188&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This section details Liquidity and Capital Resources - As of June 30, 2025, principal sources of liquidity were **$250.5 million** in cash and cash equivalents and **$99.0 million** available under a revolving credit facility[208](index=208&type=chunk) - The Board of Directors has authorized a Share Repurchase Program of up to **$300 million**. During the six months ended June 30, 2025, the company repurchased **$141.6 million** of its Class A common stock[214](index=214&type=chunk)[216](index=216&type=chunk) - The company has non-cancelable purchase obligations of **$148.2 million** and operating lease obligations of **$37.5 million** as of June 30, 2025[223](index=223&type=chunk)[224](index=224&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies its primary market risks as interest rate risk and inflation risk. Interest rate risk pertains to fluctuations on its cash holdings and potential future debt. Inflation risk could increase operating costs. Management states that neither of these risks has had a material effect on the business to date - The company is exposed to interest rate risk on its **$250.6 million** in cash, cash equivalents, and restricted cash, and on its floating-rate credit line, which had no outstanding balance as of June 30, 2025[231](index=231&type=chunk)[232](index=232&type=chunk) - Management does not believe that inflation has had a material effect on the business, but acknowledges that significant inflationary pressures on costs could harm the business if they cannot be offset[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and interim CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of June 30, 2025. There were no material changes to the company's internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[234](index=234&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[235](index=235&type=chunk) Part II: [Other Information](index=47&type=section&id=Part%20II%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity transactions, and other disclosures [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company reports it is a defendant in a consolidated putative securities class action lawsuit filed in April and May 2025. The complaints allege violations of the Securities Act and Exchange Act related to materially false and misleading statements in the company's IPO registration statement and subsequent public statements. The company intends to defend the case vigorously but cannot estimate a range of potential loss - Two putative securities class action complaints were filed against the company, its officers, directors, and IPO underwriters in April and May 2025, which have since been consolidated[239](index=239&type=chunk) - The lawsuits allege materially false and misleading statements in the IPO registration statement regarding risks, data measurement tools, the D2C platform, and client budgets. The company intends to defend itself vigorously[239](index=239&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks that could adversely affect the company's business, financial condition, and stock price. Key risks highlighted include a history of net losses, dependence on key publishers (like Walmart) and CPG brands, potential failure to sustain revenue growth, intense competition, macroeconomic pressures, and risks associated with the dual-class stock structure which concentrates voting power with the CEO - The company has a history of net losses and an accumulated deficit of **$137.4 million** as of June 30, 2025, with an expectation of increasing future expenses[244](index=244&type=chunk) - A substantial portion of the company's white-label redemptions originate from its relationship with Walmart. The termination or non-renewal of the Walmart Program Agreement could materially and adversely affect the business[252](index=252&type=chunk) - The dual-class stock structure concentrates approximately **71.4%** of the voting power with Founder and CEO Bryan Leach as of June 30, 2025, allowing him to control stockholder decisions[422](index=422&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=98&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Securities) This section provides details on the company's repurchases of its Class A common stock during the second quarter of 2025. The repurchases were made under a board-authorized Share Repurchase Program, which was increased to a total of $300 million Share Repurchase Activity - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,043,146 | $45.77 | | May 2025 | 345,227 | $48.56 | | June 2025 | 60,000 | $49.44 | | **Total** | **1,448,373** | **N/A** | - The total authorization under the Share Repurchase Program was increased to **$300 million** after the board approved an additional **$100 million** in both March and June 2025[455](index=455&type=chunk) [Item 5. Other Information](index=98&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading plans by certain executive officers during the quarter. CEO Bryan Leach and Chief People Officer Marisa Daspit both established such plans in May 2025 to facilitate the sale of company stock - On May 19, 2025, CEO Bryan Leach and his family trusts adopted a Rule 10b5-1 trading plan for the sale of up to **281,532** shares of Class A common stock, plus additional shares related to vested RSUs[459](index=459&type=chunk) - On May 29, 2025, Chief People Officer Marisa Daspit adopted a Rule 10b5-1 trading plan for the sale of up to **51,625** shares of Class A common stock[461](index=461&type=chunk) [Other Items (Defaults, Mine Safety, Exhibits)](index=98&type=section&id=Other%20Items) This section covers standard reporting items including defaults, mine safety disclosures, and filed exhibits - The company reported no defaults upon senior securities and had no mine safety disclosures to report for the period[457](index=457&type=chunk)[458](index=458&type=chunk)

Financial Performance - Ibotta's Q2 2025 revenue was $86 million, which is 8% lower than the guidance midpoint of $89.5 million[15] - Adjusted EBITDA for Q2 2025 was $17.9 million, 4% lower than the guidance midpoint of $19.5 million[15] - Total revenue decreased by 2% year-over-year from $87.9 million in Q2 2024 to $86 million in Q2 2025[18] - Adjusted EBITDA declined by 8%, with the margin decreasing from 29% in Q2 2024 to 21% in Q2 2025[18] - Ibotta projects revenue between $79 million and $84 million for Q3 2025, a 17% year-over-year decline at the midpoint[48] - Adjusted EBITDA for Q3 2025 is projected to be between $9.5 million and $13.5 million, with a 14% margin at the midpoint[48] Revenue Breakdown and Key Drivers - Redemption revenue constitutes 85% of Ibotta's total revenue in Q2 2025[22] - Ad & other revenue makes up the remaining portion of Ibotta's revenue[23] - Redemption revenue decreased by 1% year-over-year[33] - Direct-to-consumer (D2C) redemption revenue decreased by 24% year-over-year[41] - Third-party publisher (3PP) redemption revenue increased by 17% year-over-year[37]