Ibotta (IBTA) Q2 2024 earnings summary

Executive summary

• Revenue grew 14% year-over-year to $87.9 million in Q2 2024, with non-GAAP revenue up 29%, driven by strong third-party publisher redeemer growth and new partnerships, notably Instacart and Schnucks.

• Adjusted EBITDA reached $25.3 million (29% margin), up over 80% year-over-year, while net loss was $34.0 million due to increased stock-based compensation and IPO-related costs.

• Instacart partnership is expected to be a significant growth catalyst, expanding reach to over 1,500 retail banners and 85,000 stores, with rollout targeted for Q4 2024.

• CPG clients are increasing promotional budgets, with median CPG budgets for advertisers spending over $50,000 up more than 50% year-over-year.

• IPO completed in April 2024, raising $198 million in net proceeds and resulting in significant changes to capital structure.

Financial highlights

• Q2 2024 revenue was $87.9 million, up 14% year-over-year, with non-GAAP revenue growth of 29% excluding a $9.4 million one-time breakage benefit from the prior year.

• Adjusted EBITDA was $25.3 million (29% margin), and adjusted net income reached $19.9 million, or $0.68 per diluted share.

• Redemption revenue was $74 million, up 51% year-over-year on a non-GAAP basis; 3PP redemption revenue was $41.7 million (up 255%), while D2C redemption revenue was $32.3 million (down 13%).

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

• Free cash flow was $32.7 million in Q2, with cash and equivalents at $317.9 million at quarter-end.

Outlook and guidance

• Q3 2024 revenue is expected to be $91–$96 million, implying 12% non-GAAP revenue growth at the midpoint.

• Q3 adjusted EBITDA is projected at $28–$32 million (32% margin at midpoint), with continued strong growth in 3PP redemption revenue and flat ad revenue.

• Overall revenue growth rate is expected to trough in Q4 2024 before re-accelerating in 2025, driven by new publisher launches and easier comps.

• Stock-based compensation is estimated at $14 million per quarter for Q3 and Q4, declining to $10 million per quarter in 2025.

• Existing liquidity is expected to be sufficient for at least the next 12 months.