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Ibotta, Inc. Class A (IBTA)
NYSE:IBTA
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Ibotta, Inc. Class A
(NYSE:IBTA)
Rating:69Neutral
Price Target:―
Positive Factors
Market Position
Ibotta’s closed-loop attribution model for its CPG partners and its IPN distribution across Walmart, Instacart, and DoorDash is seen as differentiated and should deliver long-term growth.
Revenue Growth
Revenue acceleration is expected to allow the company to benefit from structurally high incremental margins.
Strategic Initiatives
Investments in newer measurement tools like the Cost-per-Incremental-Dollar approach are delivering incremental budget wins among CPGs.
Negative Factors
Financial Performance
The stock has dropped significantly due to Q4 results and Q1 outlook falling below management's guidance and Street estimates.
Market Competition
New sales approach likely much more compelling to CPG clients, but also puts IBTA in closer competition with META and retail media channels.
Operational 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. SPDR S&P 500 ETF (SPY)
Market Cap
$1.05B
Dividend YieldN/A
Average Volume (3M)328.84K
Price to Earnings (P/E)21.3
Beta (1Y)1.14
Revenue Growth14.75%
EPS Growth77.59%
CountryUS
Employees886
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding25,310,349
10 Day Avg. Volume383,905
30 Day Avg. Volume328,837
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)-22.03
Price to Sales (P/S)0.00
P/FCF Ratio-11.84
Enterprise Value/Market Cap0.77
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit2.59
Enterprise Value/Ebitda6.15
Forecast
1Y Price Target
$59.86Price Target Upside61.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Ibotta, Inc. Class A Business Overview & Revenue Model
Company DescriptionIbotta, Inc. Class A (IBTA) is a technology company operating within the consumer rewards sector. It offers a mobile application and browser extension designed to provide users with cash back on everyday purchases, both in-store and online. The platform partners with a wide range of retailers and brands to deliver personalized, cash-back offers to consumers, making shopping more rewarding and cost-effective.
How the Company Makes MoneyIbotta generates revenue primarily through affiliate marketing partnerships with retailers and brands. The company earns a commission on sales generated through its platform, as users redeem cash-back offers. Retailers and brands pay Ibotta for driving sales and increasing customer engagement. Additionally, Ibotta may also generate revenue from advertising and promotional fees charged to brands seeking to feature their offers prominently within the app. Its ability to leverage data analytics to tailor offers and enhance user experience further strengthens its revenue streams. Significant partnerships with major retailers and consumer goods companies are key factors contributing to Ibotta's earnings.
Ibotta, Inc. Class A Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -26.27%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant growth in revenue, successful partnerships, and expansion of CPID campaigns with major clients. However, challenges remain in scaling CPID, D2C revenue decline, and lower gross margins.Q1-2025 Updates
Positive Updates
Revenue and Adjusted EBITDA Exceed Expectations
Ibotta delivered first quarter revenue of $84.6 million, up 3% year-over-year, and adjusted EBITDA of $14.7 million with a margin of 17%, both exceeding guidance by 3% and 22%, respectively.
Successful CPID Campaigns with Major CPG Clients
Ibotta reported successful campaigns with two major CPG clients, leading to a doubling and an 8x increase in redemption revenue year-over-year for these clients.
Expansion of Partnerships with Instacart and DoorDash
Ibotta expanded its network with the integration of Instacart and DoorDash, leading to attractive redemption rates and the inclusion of new categories like beer, wine, and spirits.
Growth in Total Redeemers
Total redeemers increased to 17.1 million, up 37% year-over-year, with growth driven by Instacart's launch and expansion with other partners like Walmart and Family Dollar.
Reduced Turnover in Sales Team
Turnover among sellers decreased significantly from Q4 2024 to Q1 2025, indicating improved sales team stability.
Negative Updates
Decline in D2C Redemption Revenue
D2C redemption revenue was down 24% year-over-year, indicating challenges in direct-to-consumer channels.
Decrease in Redemption Revenue Per Redemption
Redemption revenue per redemption decreased by 7% year-on-year due to a mix shift toward third-party redemptions.
Challenges in Scaling CPID Efforts
The CPID platform is still in the pilot phase, requiring significant manual processes, which limits rapid scaling.
Lower Gross Margin
Non-GAAP gross margin decreased by nearly 700 basis points year-over-year due to increased costs associated with new partnerships and technologies.
Company Guidance
In the Q1 2025 earnings call, Ibotta revealed that they exceeded revenue and adjusted EBITDA expectations, with both metrics surpassing the guidance provided in the previous quarter. Specifically, revenue reached $84.6 million, marking a 3% year-over-year increase, while adjusted EBITDA stood at $14.7 million, reflecting a 17% margin. The company highlighted exceptional growth in third-party publisher redemption revenue, up 38% year-over-year, although direct-to-consumer redemption revenue declined by 24%. Redeemers increased by 37% year-over-year, largely driven by partnerships with platforms like Instacart and Family Dollar. Despite a 15% decrease in redemptions per redeemer, the company maintained a positive outlook for Q2 2025, projecting revenue between $86.5 million and $92.5 million and an adjusted EBITDA margin of about 22%. The company emphasized its strategic focus on scaling its new CPID platform, which has shown promising results in pilot tests, with redemption revenue for one client expected to double and another client up 8x year-over-year.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 369.50M | 367.25M | 320.04M | 210.70M |
| Gross Profit | 314.83M | 317.13M | 272.38M | 161.48M |
| EBITDA | 27.50M | 32.58M | 62.66M | -33.99M |
| Net Income | 60.00M | 68.74M | 38.12M | -54.86M |
Balance Sheet | ||||
| Total Assets | 639.26M | 678.43M | 319.79M | 195.08M |
| Cash, Cash Equivalents and Short-Term Investments | 297.13M | 349.69M | 62.59M | 45.50M |
| Total Debt | 24.51M | 0.00 | 64.45M | 65.98M |
| Total Liabilities | 237.99M | 221.15M | 291.86M | 229.87M |
| Stockholders Equity | 401.28M | 457.28M | 27.93M | -34.79M |
Cash Flow | ||||
| Free Cash Flow | 102.85M | 105.72M | 14.49M | -64.76M |
| Operating Cash Flow | 112.47M | 115.92M | 22.72M | -56.50M |
| Investing Cash Flow | -12.70M | -10.20M | 19.67M | -35.68M |
| Financing Cash Flow | 114.33M | 181.38M | 2.38M | 74.05M |
Ibotta, Inc. Class A Technical Analysis
Negative
36.96
Price Trends
47.30
Negative
48.81
Negative
58.58
Negative
Market Momentum
-3.19
Positive
25.70
Positive
17.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBTA, the sentiment is Negative. The current price of 36.96 is below the 20-day moving average (MA) of 43.27, below the 50-day MA of 47.30, and below the 200-day MA of 58.58, indicating a bearish trend. The MACD of -3.19 indicates Positive momentum. The RSI at 25.70 is Positive, neither overbought nor oversold. The STOCH value of 17.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBTA.
Ibotta, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.13B | 20.01 | 17.50% | ― | 6.75% | 97.06% | |
74 Outperform | $1.44B | 492.57 | 0.49% | ― | 23.31% | ― | |
69 Neutral | $1.05B | 21.27 | 26.94% | ― | 14.75% | 77.59% | |
63 Neutral | $1.32B | 191.83 | 2.81% | ― | 22.75% | -47.45% | |
63 Neutral | $1.61B | ― | -32.87% | ― | 8.56% | -4.21% | |
56 Neutral | $5.74B | 25.92 | -31.28% | 5.61% | 10.88% | -29.73% | |
46 Neutral | $2.18B | ― | -32.09% | ― | ― | ― |
* General Sector Average
Performance Comparison
IBTA
Ibotta, Inc. Class A
36.96
-34.73
-48.44%
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8.62
4.30
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SEMR
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8.92
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CXM
Sprinklr
8.21
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BTDR
Bitdeer Technologies
11.09
0.50
4.72%
AMPL
Amplitude
12.33
3.75
43.71%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.