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Ibotta, Inc. Class A (IBTA)
NYSE:IBTA
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Ibotta, Inc. Class A
(NYSE:IBTA)
65Neutral
Positive Factors
Growth Strategy
Revenue growth and EBITDA Margin are expected to accelerate and expand as offer supply increases and new partnerships ramp up.
Partnerships
Ibotta announced a new multiyear partnership with delivery service provider DoorDash, covering over 115k non-restaurant locations within DoorDash’s network.
Stock Valuation
The shares are considered intrinsically attractive as they are trading at a lower multiple of EBITDA.
Negative Factors
Advertising Challenges
Advertising supply challenges are impacting revenue visibility and profitability, leading to a downgrade of Ibotta's shares from Buy to Neutral.
Financial Performance
The stock has dropped significantly due to Q4 results and Q1 outlook falling below management's guidance and Street estimates.
Supply Challenges
Challenges such as insufficient offer supply and sales execution missteps have limited the company's ability to capitalize on redeemer growth.
Ibotta, Inc. Class A (IBTA) vs. S&P 500 (SPY)
Market Cap
$1.37B
Dividend YieldN/A
Average Volume (3M)730.73K
Price to Earnings (P/E)21.8
Beta (1Y)0.96
Revenue Growth14.75%
EPS Growth77.59%
CountryUS
Employees886
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)2.02
Shares Outstanding27,884,964
10 Day Avg. Volume444,881
30 Day Avg. Volume730,729
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)N/A
Price to Sales (P/S)3.30
Price to Cash Flow (P/CF)13.80
P/FCF Ratio15.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$51.67Price Target Upside17.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Ibotta, Inc. Class A Business Overview & Revenue Model
Company DescriptionIbotta, Inc. operates as a technology company that offers Ibotta Performance Network (IPN) that allows consumer packaged goods brands to deliver digital promotions to consumers. It offers promotional services to publishers, retailers, and advertisers through the IPN. The company was formerly known as Zing Enterprises, Inc. and changed its name to Ibotta, Inc. in 2012. The company was incorporated in 2011 and is based in Denver, Colorado.
How the Company Makes MoneyIbotta makes money primarily through partnerships and agreements with retailers and brands. These partners pay Ibotta to feature and promote their products within the app, allowing them to reach a targeted audience and drive sales. The company earns a commission or fee based on the engagement and conversion rates of these promotions. Additionally, Ibotta may generate revenue through affiliate marketing by earning a percentage of the sales generated from users making purchases through the app's linked offers. Significant partnerships with major retailers and consumer goods companies contribute to its earnings by expanding its reach and enhancing the attractiveness of offers available to users.
Ibotta, Inc. Class A Financial Statement Overview
Summary
Ibotta, Inc. exhibits a strong financial position with solid revenue growth, high profitability margins, and robust balance sheet metrics. The company has effectively managed its cash flows, resulting in a favorable financial outlook. However, some areas such as operational efficiency, as indicated by declining EBIT and EBITDA margins, may require attention to maintain long-term growth.Income Statement
Ibotta, Inc. shows strong revenue growth with a 14.74% increase from 2023 to 2024. The gross profit margin is healthy at 86.36% for 2024, indicating efficient cost management. Net profit margin improved significantly to 18.72%, reflecting enhanced profitability. However, EBIT margin declined to 7.60%, and EBITDA margin to 9.81%, suggesting increased operational costs or reduced operational efficiency.85
Very Positive
Balance Sheet
The balance sheet is robust with zero total debt and a strong equity base, resulting in a debt-to-equity ratio of 0.00. The equity ratio is a substantial 67.40%, indicating strong financial stability. Return on equity (ROE) is high at 15.03%, highlighting effective use of equity. The significant increase in stockholders' equity from 2023 to 2024 is a positive sign.78
Positive
Cash Flow
Operating cash flow increased significantly, leading to a strong operating cash flow to net income ratio of 1.69. Free cash flow also improved to $105.72 million, with a favorable free cash flow to net income ratio of 1.54. The company demonstrates effective cash flow management, although the capital expenditure remains substantial.72
Positive
| Breakdown | ||
| Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|
| Income Statement | Total Revenue | |
| 367.25M | 320.04M | 210.70M | Gross Profit |
| 317.13M | 272.38M | 161.48M | EBIT |
| 27.93M | 56.00M | -40.31M | EBITDA |
| 36.01M | 62.66M | -33.99M | Net Income Common Stockholders |
| 68.74M | 38.12M | -54.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| 349.69M | 62.59M | 45.50M | Total Assets |
| 678.43M | 319.79M | 195.08M | Total Debt |
| 0.00 | 64.45M | 65.98M | Net Debt |
| -349.28M | 1.86M | 48.16M | Total Liabilities |
| 221.15M | 291.86M | 229.87M | Stockholders Equity |
| 457.28M | 27.93M | -34.79M |
| Cash Flow | Free Cash Flow | |
| 105.72M | 14.49M | -64.76M | Operating Cash Flow |
| 115.92M | 22.72M | -56.50M | Investing Cash Flow |
| -10.20M | 19.67M | -35.68M | Financing Cash Flow |
| 181.38M | 2.38M | 74.05M |
Ibotta, Inc. Class A Technical Analysis
Neutral
44.16
Price Trends
54.27
Negative
62.00
Negative
62.88
Negative
Market Momentum
-2.91
Negative
47.00
Neutral
67.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBTA, the sentiment is Neutral. The current price of 44.16 is above the 20-day moving average (MA) of 41.55, below the 50-day MA of 54.27, and below the 200-day MA of 62.88, indicating a neutral trend. The MACD of -2.91 indicates Negative momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 67.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBTA.
Ibotta, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.62B | 14.12 | 68.18% | ― | 7.78% | 1345.45% | |
73 Outperform | $29.08B | 15.83 | 34.29% | 1.76% | 2.79% | -23.30% | |
67 Neutral | $8.07B | ― | -5.37% | ― | 18.03% | 82.15% | |
65 Neutral | $1.37B | 21.80 | 136.48% | ― | 14.75% | 77.59% | |
61 Neutral | $4.53B | 211.72 | 3.48% | ― | 31.39% | ― | |
54 Neutral | $3.64B | -16.80 | -14.99% | 6.38% | 25.64% | -79.38% |
* General Sector Average
Performance Comparison
IBTA
Ibotta, Inc. Class A
44.16
-53.84
-54.94%
EBAY
eBay
62.40
11.76
23.22%
SHOP
Shopify
76.89
2.51
3.37%
ROKU
Roku
55.28
-5.57
-9.15%
DOCU
DocuSign
72.21
12.55
21.04%
LYFT
Lyft
10.84
-6.99
-39.20%
Ibotta, Inc. Class A Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -30.00% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Neutral
While Ibotta is making strategic moves with new measurement frameworks and partnerships, they faced significant challenges with revenue shortfalls and offer supply issues, leading to a weaker outlook for the near term.Highlights
New Measurement Framework Initiative
Ibotta has introduced a new framework for measuring incremental sales lift, enabling clients to track cost per incremental dollar (CPID) and optimize campaigns for profitable revenue growth.
Partnerships with Major CPG Companies
Ibotta successfully piloted their new measurement framework with two major food and beverage companies, leading to greenlit campaigns that are significantly larger in budget compared to previous years.
Launch of Alcoholic Beverage Offers
Ibotta introduced alcoholic beverage offers on Instacart, which is expected to attract greater investment from beer, wine, and spirits companies.
DoorDash Partnership
Ibotta announced that DoorDash would be going live on their network, expanding their publisher network and potential redeemer base.
Lowlights
Revenue and Adjusted EBITDA Below Guidance
Ibotta reported revenue and adjusted EBITDA below the guidance range provided in the previous earnings call due to a shortfall in redemption revenue and offer supply challenges.
Softer First Quarter 2025 Outlook
The company is guiding towards a softer than anticipated outlook for Q1 2025, attributing it to insufficient offer supply and sales execution issues.
Challenges with CPG Brand Offer Supply
Ibotta faced challenges in securing enough offer supply from CPG brands, resulting in lower than expected redemptions per redeemer.
Workforce Reduction
Ibotta reduced the size of its workforce by 8% as part of efforts to streamline operations and better align resources with key initiatives.
Company Guidance
In the recent earnings call, Ibotta provided guidance for Q1 2025, highlighting a softer-than-expected outlook. They reported Q4 2024 revenue of $98.4 million and adjusted EBITDA of $27.8 million, which were 4% and 13% below the guidance range, respectively. The company attributed the shortfall to a lack of sufficient offer supply impacting redemption revenue, with total redemptions per redeemer down 20% year-over-year. They anticipate Q1 2025 revenue to be between $80 million and $84 million, with an adjusted EBITDA margin of about 15%. Despite challenges, Ibotta is optimistic about long-term growth, focusing on improving sales execution, expanding offer supply, and enhancing measurement tools such as the cost per incremental dollar (CPID) framework. Additionally, the company saw healthy redeemer growth, particularly in third-party publishers, and expects gradual revenue growth improvement throughout 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.