Ibotta (IBTA) Q2 2024 earnings summary

Executive summary

• Revenue reached $87.9 million in Q2 2024, up 14% year-over-year, with non-GAAP revenue up 29%, driven by strong third-party publisher growth and new partnerships, notably Instacart, which is expected to be a major growth driver in late 2024 and 2025.

• Net loss was $34.0 million, primarily due to increased stock-based compensation and IPO-related costs, while adjusted EBITDA was $25.3 million (29% margin), and adjusted net income reached $19.9 million.

• Instacart partnership expands reach to 98% of US households, with rollout targeted for Q4 and no equity component in the deal.

• CPG clients are increasing digital promotional budgets, with median advertiser budgets up over 50% year-over-year for those spending $50K+.

• IPO completed in April 2024, raising $198 million in net proceeds and resulting in $317.9 million in cash and equivalents at quarter-end.

Financial highlights

• Q2 2024 revenue: $87.9 million (+14% YoY); non-GAAP revenue up 29%; gross margin: 86%.

• Adjusted EBITDA: $25.3 million (29% margin), up over 80% year-over-year; free cash flow: $32.7 million in Q2 and $49.6 million year-to-date.

• Redemption revenue was $74 million, up 51% year-over-year on a non-GAAP basis; third-party publisher redemption revenue grew 255% to $41.7 million, while D2C redemption revenue declined 13%.

• Ad and other revenues were $14 million, down 27% year-over-year, reflecting a shift in CPG budgets toward performance-based promotions.

• Net loss: $34.0 million (net margin -39%), compared to net income of $15.3 million in Q2 2023.

Outlook and guidance

• Q3 2024 revenue guidance: $91–$96 million, representing 12% non-GAAP growth at the midpoint.

• Q3 Adjusted EBITDA is projected at $28–$32 million (32% margin at midpoint), with strong third-party publisher redeemer growth anticipated.

• Non-GAAP redemption revenue growth for Q3 is expected in the mid-20% range, with ad revenue remaining flat.

• Revenue growth rate is expected to trough in Q4 before re-accelerating in 2025, driven by new publisher launches and easier comps.

• Existing liquidity is expected to be sufficient for at least the next 12 months; future cash needs will depend on growth pace and market conditions.