Ibotta, Inc. Q3 FY2025 earnings call

• Revenue was in the upper half of the guidance range, and adjusted EBITDA was well above the top end of the range. Guided Q4 results are broadly consistent with prior expectations. • Continued progress in transforming into a full-service performance marketing platform for CPG. Product and engineering teams enhancing capabilities for 2026. Reorganized sales team improved infrastructure. • Major announcements: partnership with Surcana for independent lift studies and launch of LiveLift for sales lift measurement. • Macro challenges in CPG with consumer pessimism, SNAP disruption, tariffs; clients taking wait-and-see approach. • Organizational updates: sales organization reorganized, B2B marketing focus with thought leadership, sales enablement improved. • Vision for outcomes era in CPG marketing, LiveLift rollout in 2026 with theme 'make it easy' to simplify campaign setup, evaluation, and optimization.

Revenue for the third quarter was $83.3 million, a 16% year-over-year decline. Redemption revenue was $72.1 million, down 15% YOY; third-party publisher redemption revenue was $49.3 million, down 4% YOY; direct-to-consumer redemption revenue was $22.8 million, down 31% YOY. Add another revenues were $11.2 million, down 21% YOY. Total redeemers were $18.2 million, up 19% YOY. Redemptions per redeemer were 4.6, down 28% YOY. Redemption revenue per redemption was 87¢, flat YOY. Non-GAAP gross margin was 80%, down 800 basis points YOY but up 30 basis points sequentially. Non-GAAP operating expenses were 61% of revenue, an increase of approximately 870 basis points YOY. Adjusted EBITDA was $16.6 million, with an adjusted EBITDA margin of 20%.

• Q4 revenue expected in the range of $80 million to $85 million (16% decline at midpoint). • Q4 adjusted EBITDA expected in the range of $9 million to $12 million (13% margin at midpoint). • 2026 expected to have seasonal patterns, with investment in third-party measurement, flexible balance sheet allowing for organic growth investment and shareholder returns.

• Macro environment challenges for CPG companies, including sustained organic sales growth depression, consumer pessimism, SNAP program disruption, and tariffs. • Clients taking a wait-and-see approach, especially with discretionary spending like promotions. • Need for rigorous measurement by CPGs, which validates the importance of Ibotta's strategic transformation.

Q: Ron Josey asked about LiveLift timeline and macro.

A: Bryan Leach discussed LiveLift pilots on track, 83% of finished pilots re-upped; expansion of sales team to sell LiveLift, and Matt Puckett commented on noisy macro with CPG headwinds.

Q: Nitin Bansal inquired about AI integration.

A: Bryan Leach said AI is used in pre-campaign and in-flight projections, and to reduce setup time for campaigns.

Q: Andrew Boone asked about 'make it easy' and 2026 redeemers.

A: Bryan Leach talked about improving client experience, reducing friction, and Matt Puckett mentioned normalized seasonality; Bryan added on redeemer growth tied to offer content and LiveLift increasing brand investment.

Q: Stefanos Chris asked about Instacart and DoorDash.

A: Bryan Leach discussed progress with Instacart and DoorDash partnerships, growth in redeemers from these channels.