Ibotta, Inc. Q1 FY2025 earnings call

Bryan's Remarks: Ibotta is positioning as a strategic partner for CPG companies, bringing omnichannel performance marketing. Early results with CPID campaigns are positive, with two large CPG clients expanding programs. Sales execution improved with Chris Riedy addressing pain points, and seller turnover down. Valarie's Remarks: Revenue and adjusted EBITDA exceeded guidance midpoint. Key metrics: total redeemers 17.1 million, up 37%; redemptions per redeemer 4.8, down 15%; redemption revenue per redemption $0.89, down 7%.

Revenue for Q1 2025 was $84.6 million, representing a 3% year-over-year growth. Redemption revenue was $73.4 million, up 8% year-over-year; third-party publisher redemption revenue was $48.2 million, up 38% year-over-year, while D2C redemption revenue was $25.2 million, down 24% year-over-year. Ad and other revenue was $11.2 million, down 22% year-over-year. Non-GAAP gross margin was 81%, down nearly 700 basis points year-over-year. Non-GAAP operating expenses as a percent of revenue were 65%, an increase of approximately 360 basis points year-over-year. Adjusted EBITDA was $14.7 million, with an adjusted EBITDA margin of 17%.

Q2 2025 revenue expected in the range of $86.5 million to $92.5 million (2% midpoint growth). Adjusted EBITDA expected $17 million to $22 million (midpoint ~22% margin, 4% increase from Q1). Adjusted tax rate low 20s for full year. Short-term supply constrained but expect sequential improvement in offer supply over the year.

Inherent uncertainties in forward-looking statements, potential material differences from actual results, challenges in scaling CPID campaigns due to entrenched habits and imprecise tools, short-term disruptions in sales execution as processes are refined.

Q: Thanks so much for taking the question. Wanted to know if we could get a better sense of sort of early learnings from the Instacart integration. How do you think that will be a driver of growth both on volumes, end users, as you look out deeper into the year? And then layer on top of that as a follow-up sort of elements about how to think about DoorDash being layered into the platform as the year progresses.

A: Thanks, Eric. Yes, we’re excited about the progress we’ve made with both Instacart and DoorDash. This represents a substantial amount of the online grocery marketplace market that’s part of the Ibotta performance network. In terms of some early learnings, at Instacart we found that we have very attractive redemption rates...

Q: Just a quick one for you, Bryan. Just maybe give an outlook on how to think about total CPG budgets for this year? How has that changed from the start of the year?

A: Yes, thanks. It’s great to hear your voice, Curt. Appreciate the question. I mean, I think there are a couple dimensions to this. There’s the macro and then there’s kind of the sales execution dimension to that...

Q: Can you hear me, okay? Okay, thanks. Sorry about that. Just two for me. First, maybe if you could talk a little bit about the publisher side.

A: Yes, there’s been nice consistent improvements in the Walmart experience. For example, as you may see now out there in the public domain, we now have telephone number as a way to check out and earn your Walmart Cash...

Q: Okay. Thank you. I want to follow-up on the first question from Eric about the success or the traction you’re gaining with Instacart and DoorDash and category expansion.

A: Thanks, Mark. That’s a tricky one to answer in a public forum. Yes, is the answer. I definitely don’t want to give our competitors a lighted roadmap into all the wins we’re going to announce in the future...

Q: Great. Thanks for taking the question. Maybe just a quick one for you, Bryan. Just maybe give an outlook on how to think about total CPG budgets for this year?

A: Yes, thanks. It’s great to hear your voice, Curt. Appreciate the question. I mean, I think there are a couple dimensions to this. There’s the macro and then there’s kind of the sales execution dimension to that...

Q: Great. Thanks very much for taking the question. Maybe just a quick one for you, Bryan. Just maybe give an outlook on how to think about total CPG budgets for this year?

A: Yes, thanks. It’s great to hear your voice, Curt. Appreciate the question. I mean, I think there are a couple dimensions to this. There’s the macro and then there’s kind of the sales execution dimension to that...

Q: Can you just clarify the second question for me, Ken? I’m not sure I quite follow. You’re saying when on the supply side we see the CPID value proposition as the key unlock?

A: Got it. Great. Thank you. Taking those two questions in turn. First, on the publisher side, yes, there’s been nice consistent improvements in the Walmart experience...

Q: Okay. Thank you, Bryan.

A: Thanks, Mark. That’s a tricky one to answer in a public forum. Yes, is the answer. I definitely don’t want to give our competitors a lighted roadmap into all the wins we’re going to announce in the future...

Q: Great. Thanks for taking the question. Maybe just a quick one for you, Bryan. Just maybe give an outlook on how to think about total CPG budgets for this year?

A: Yes, thanks. It’s great to hear your voice, Curt. Appreciate the question. I mean, I think there are a couple dimensions to this. There’s the macro and then there’s kind of the sales execution dimension to that...

Q: Super helpful, thank you.

A: I like that stealth third question in there. Don’t think I missed that, Chris. But, yes, let’s go through those in turn. Great questions. I think the first one is so fascinating, which is that there is not one answer to the – what’s the target CPID question...

Q: Thanks so much for taking the question. I wanted to go back to the salesforce question and ask it in a slightly different way, given some of those constraints that you’re having around teaching CPID.

A: Yes, look, I mean, I think if we wanted to, we could go out to 500 clients right now and say, would you like to test this revolutionary new capability? We want to make sure that when we get our chance to make a first impression, that we absolutely kill it and make a great first impression...

Q: Great. Thanks for taking questions. Maybe just to start, Bryan, if you could just talk about, I’m sure the CPID transition or invest is a lot of your time investing, but are there additional financial resources that are being used as well?

A: Yes, they’re broadly flattish, I would say, Bernie. I mean we have shifted our focus of the resources we already have very much toward this, much as we did with the IPN transition in our business. I think we still, I think we’ve said we will continue to hire as needed where they have specialized skill sets on the measurement side, particularly in the business...

Q: Thanks for taking my question. Maybe a two-parter if I could on the Family Dollar deal. The encouraging partnership may be hitting the liftoff phase there. Is that trajectory giving you increased confidence in other kind of the traditional grocery partnerships like the Snooks and AppCards of the world.

A: Okay. Yes, we’re very pleased with the trajectory of the Dollar Channel partners. We think that’s a critical channel to win in given the value proposition, the affordability proposition. We also think that those are companies that are investing very heavily in their retail media and e-commerce futures and that portends very well for us because we know that what we do is very, very symbiotic with retail media...