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Ibotta, Inc.(IBTA) - 2024 Q3 - Quarterly Report
IBTAIbotta, Inc.(IBTA)2024-11-13 22:54

Financial Performance - Revenue for Q3 2024 reached 98,621,000,a15.598,621,000, a 15.5% increase from 85,287,000 in Q3 2023[13]. - Gross profit for Q3 2024 was 86,449,000,up15.986,449,000, up 15.9% from 74,510,000 in Q3 2023[13]. - Net income for Q3 2024 was 17,239,000,comparedto17,239,000, compared to 8,413,000 in Q3 2023, representing a 104.4% increase[15]. - Total revenue for the three months ended September 30, 2024, was 98.6million,comparedto98.6 million, compared to 85.3 million for the same period in 2023, representing a 15.1% increase[91]. - Total redemption revenue increased by 60.4million,or3660.4 million, or 36%, to 226.4 million during the nine months ended September 30, 2024, driven by an 85.4millionincreaseinrevenuefromthird−partypublishers[199].AssetsandLiabilities−AsofSeptember30,2024,cashandcashequivalentsincreasedto85.4 million increase in revenue from third-party publishers[199]. Assets and Liabilities - As of September 30, 2024, cash and cash equivalents increased to 341.274 million from 62.591millionasofDecember31,2023,representingagrowthof44462.591 million as of December 31, 2023, representing a growth of 444%[11]. - Total current assets rose to 576.058 million, up from 298.344million,indicatinga93.5298.344 million, indicating a 93.5% increase[11]. - Total liabilities decreased to 220.308 million from 291.862million,reflectingadeclineof24.5291.862 million, reflecting a decline of 24.5%[11]. - Stockholders' equity surged to 377.958 million from 27.928million,markingasignificantincreaseof125527.928 million, marking a significant increase of 1255%[11]. Expenses - Operating expenses totaled 65,742,000 in Q3 2024, slightly higher than 63,640,000inQ32023[13].−Researchanddevelopmentexpensesincreasedto63,640,000 in Q3 2023[13]. - Research and development expenses increased to 16,285,000 in Q3 2024 from 12,391,000inQ32023,a31.512,391,000 in Q3 2023, a 31.5% rise[13]. - Sales and marketing expenses decreased to 27,761,000 in Q3 2024 from 37,639,000inQ32023,areductionof26.337,639,000 in Q3 2023, a reduction of 26.3%[13]. - General and administrative expenses rose by 8,522,000, or 70%, to 20,631,000,primarilydrivenbyincreasedstock−basedcompensationandpubliccompanycosts[192].Stock−BasedCompensation−Stock−basedcompensationexpenseincreasedsignificantlyto20,631,000, primarily driven by increased stock-based compensation and public company costs[192]. Stock-Based Compensation - Stock-based compensation expense increased significantly to 36,253,000 for the nine months ended September 30, 2024, from 5,307,000intheprioryear[20].−TheaggregategrantdatefairvalueoftheWalmartWarrantwas5,307,000 in the prior year[20]. - The aggregate grant date fair value of the Walmart Warrant was 35.3 million, with an additional 37.2millionforthe592,457sharesgrantedundertheanti−dilutionprovision[83][84].−Stock−basedcompensationexpenserecognizedfortheWalmartWarrantwas37.2 million for the 592,457 shares granted under the anti-dilution provision[83][84]. - Stock-based compensation expense recognized for the Walmart Warrant was 9.1 million for the three months ended September 30, 2023, and 27.1millionfortheninemonthsendedSeptember30,2024,includinga27.1 million for the nine months ended September 30, 2024, including a 17.5 million adjustment for the anti-dilution provision[87]. Market Strategy and Growth - The company aims to expand its market share and enhance relationships with key partners, including Walmart and Dollar General[5]. - Future growth strategies include the development of new offerings and enhancements to the platform[5]. - The company is focused on maintaining profitability and generating profitable growth over time[3]. IPO and Financing - The initial public offering (IPO) on April 22, 2024, raised net proceeds of 198.0millionafterdeductingunderwritingdiscountsandcommissions[23].−FollowingtheIPO,17,245,954sharesofredeemableconvertiblepreferredstockconvertedintocommonstock,whichwerethenreclassifiedintoClassAcommonstock[24].−Thecompanyexecuteda198.0 million after deducting underwriting discounts and commissions[23]. - Following the IPO, 17,245,954 shares of redeemable convertible preferred stock converted into common stock, which were then reclassified into Class A common stock[24]. - The company executed a 50.0 million revolving line of credit, which was amended to extend the maturity date to November 3, 2026, following the IPO[59][62]. Redemption and User Metrics - For the three months ended September 30, 2024, total redemptions increased to 97.4 million from 67.9 million in the same period of 2023, representing a growth of approximately 43%[145]. - The number of redeemers for the three months ended September 30, 2024, was approximately 15.3 million, up from 9.4 million in the same period of 2023, marking a growth of about 63%[150]. - Third-party publisher redemptions surged to approximately 65.8 million for the three months ended September 30, 2024, compared to 30.0 million in the same period of 2023, reflecting a growth of approximately 119%[144]. Tax and Legal Matters - The company recorded an income tax provision of 7.9millionand7.9 million and 14.9 million for the three and nine months ended September 30, 2024, resulting in effective tax rates of 31.4% and 199.1%, respectively[112]. - The company incurred $3.5 million in legal expenses with Wilson Sonsini during the nine months ended September 30, 2024[118].