Ibotta (IBTA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $98.6 million, up 19% year-over-year on a non-GAAP basis, driven by strong third-party publisher expansion, especially Walmart, Dollar General, Family Dollar, and Instacart rollouts.

• Adjusted EBITDA was $36.5 million (37% margin), up 66% year-over-year, with net income of $17.2 million (17% margin).

• Total redeemers rose 63% to 15.3 million, with redemptions per redeemer averaging 6.4, down 12% due to mix shift.

• The company completed its IPO in April 2024, raising $198 million in net proceeds and converting convertible notes to equity.

• Investments in measurement, targeting, and automation are aimed at driving efficiency and attracting larger CPG marketing budgets.

Financial highlights

• Q3 2024 revenue was $98.6 million, up 19% year-over-year non-GAAP, with gross margin at 88% and adjusted EBITDA margin at 37%.

• Net income for Q3 2024 was $17.2 million (17% margin); adjusted net income was $31.4 million, or $0.94 per diluted share.

• Free cash flow for Q3 was $36.7 million; cash and equivalents at quarter-end were $341.3 million.

• Repurchased $15.6 million in stock during Q3; share repurchase program authorized up to $100 million.

• Direct-to-consumer revenue declined 25% year-over-year, while third-party publisher revenue grew 129%.

Outlook and guidance

• Q4 2024 revenue is expected between $100–$106 million, representing 4% non-GAAP growth at midpoint; adjusted EBITDA guidance is $30–$34 million (31% margin midpoint).

• Revenue growth is expected to trough in Q4 and accelerate in 2025 as budgets reset and new publisher contributions ramp up.

• Full launch of Instacart partnership anticipated by year-end.

• Management expects liquidity to be sufficient for at least the next 12 months.

• Continued investment in technology, marketing, and personnel is planned to support growth.