Ibotta, Inc. Q1 FY2026 earnings call

• Revenue and adjusted EBITDA above top end of guidance range. • Anticipate year-over-year revenue trends to improve sequentially, returning to growth in Q3 2026. • Sales team success in deepening and broadening offers. • Core promotions product has strong market fit; LiveLift has positive early feedback. • Added Uber and Giant Eagle as multi-year exclusive partners. • Redemption revenue recovery with 15% more redeemers in Q1. • Sales team adding new clients, securing commitments, retaining clients. • Strategic partnership with Cercana generating momentum. • LiveLift has positive product market fit but revenue contribution modest for now. • Key initiatives for LiveLift include building programmatic API layer, refining models, AI enablement. • Diversified publisher base with Uber and Giant Eagle partnerships.

Revenue was 82.5 million, down 2% vs last year. Redemption revenue was 73 million, down 1% y-o-y. Third-party publisher redemption revenue was $54 million, up 12% y-o-y. Direct-to-consumer redemption revenue was $19 million, down 25% y-o-y. Ad and other revenues were $9.5 million, down 15% y-o-y. Total redeemers were 19.7 million, up 15% y-o-y. Redemptions per redeemer were 4.5, down 6% y-o-y. Redemption revenue per redemption was 83 cents, flat vs Q4 and down 7% y-o-y. Total redemptions were 88 million, up 6% y-o-y. Non-GAAP cost of revenue up 2 million, non-GAAP gross margin 78% down ~300 bps. Non-GAAP operating expenses up 5%, 71% of revenue. Adjusted EBITDA $8.7 million, margin 11%.

• Q2 revenue expected 82-86 million, down 2% y-o-y at midpoint, up 2% q-o-q. • Q2 adjusted EBITDA expected 9-12 million, margin ~12.5% at midpoint. • Expect return to year-over-year revenue growth in Q3 in low single-digit range. • Assumed immaterial impact from new publishers in Q2, small benefit in second half. • Modest sequential increase in non-GAAP cost of revenue and operating expenses throughout year. • Prioritize investing in organic growth and strategic priorities, return cash to shareholders.

Q: Ken Gowrilewski from Wells Fargo asked about LiveLift's impact on financial picture and back half progress.

A: Brian and Matt discussed LiveLift's evolution in the industry, investments nearing lapping, and ongoing sales and client participation.

Q: Tim Mitchell from Raymond James asked about Uber partnership tracking and LiveLift progress.

A: Uber partnership is in early rollout, LiveLift has made progress in AI enablement, model refinement, etc.

Q: Stefanos Christ from Needham and Company asked about Q3 revenue assumptions and Uber/Giant Eagle monetization.

A: Q3 revenue is based on ongoing performance, modest impact from new publishers in back half.

Q: Nitin Bansal from Bank of America asked about go-to-market transformation.

A: Sales organization reorganized, focus on consultative selling, thought leadership, etc.

Q: Tim Huang from Citizens JMP asked about pricing changes.

A: Transition to continuous pricing based on product price has been well received, still in transition.