Ibotta, Inc. · NYSE:IBTA
Ibotta — Q1 2024 Earnings Presentation
31 slides from Ibotta's earnings presentation, May 30, 2024
Slide 1: Quarterly presentation, First quarter 2024
Quarterly $1.30 back presentation Add offer First quarter 2024 © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent.
Slide 2: Disclaimer
Disclaimer This presentation is made by Ibotta, Inc. (the “Company,” “Ibotta,” “our,” or “we”) and contains forward-looking statements that involve substantial risks and uncertainties. All statements other than historical factual information are forward-looking statements, including without limitati
Slide 3: We are a technology company
We are a technology company that allows CPG brands to deliver digital promotions to millions of consumers through a single network called the Ibotta Performance Network (IPN). © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent. 3
Slide 4: Market opportunity
Market opportunity ~$1.2T ~$200B 87% U.S. consumer spend annual marketing of grocery sales in grocery sector1 spend in CPG2 happen in-store1 Source: 1Incisiv as of 2023. 2Cadent Consulting Group, “2022 Marketing Spending Study”. © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared with
Slide 5: The Ibotta Performance Network
The Ibotta Performance Network CPG Brands Clients General Media Agencies Grocery Merchandise Purchase Data AI Offer Engine Administration Risk Management Technology Retailer integrations Consumer profiling Billing & budgeting Privacy compliance Platform Item-level data 1:1 personalization Cash out &
Slide 6: The Ibotta ecosystem
The Ibotta ecosystem Clients Publishers 2,400+ 200M+ CPG brands consumer reach Note: If a consumer has accessed the website or downloaded an app of one or more publishers or visited a store of a publisher, such consumer may be counted as multiple consumers. © 2024 Ibotta, Inc. Proprietary and confid
Slide 7: Flywheel effects
Flywheel effects © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent. 7
Slide 8: Single interface for promotions management
Single interface for promotions management Note: Illustrative Ibotta Partner Portal dashboard with mock data illustrating common metrics CPG brands are able to view within IPN reporting dashboards including impression counts, offer unlocks and offer redemptions. © 2024 Ibotta, Inc. Proprietary and c
Slide 9: Shift toward success-based marketing
Shift toward success-based marketing Delivery Pricing Top of Funnel Social Digital Display Fee-per- Impression Awareness Consumer Journey Search Fee-per- Interest Digital Display Click Retail Media Digital Display Fee-per- Consideration Impression / Click Digital Promotions Fee-per- Transaction Purc
Slide 10: Tapping into national budgets
Tapping into national budgets National budgets Retailer-specific budgets CPG Brands Price Merch credit Buyer Supplier Retail media Publishers © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent. 10
Slide 11: Air traffic control for promotions
Air traffic control for promotions The IPN reduces offer stacking between Ibotta and publishers such as Walmart and Dollar General. © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent. 11
Slide 12: Rich dataset strengthens the IPN
Rich dataset strengthens the IPN 1st-party Data ■ Item-level purchase data Clients ○ 3B+ lines1 Solve for unique campaign objectives ○ POS integrations with 85 retailer partners2 ■ Individual response behavior to various price promotions AI-powered capabilities Publishers ■ Cross-retailer data ■ Cam
Slide 13: Expected drivers of durable growth
Expected drivers of durable growth Clients Publishers Grow redeemers Grow redeemers on existing third-party publisher properties Add new retailer publishers in grocery and specialty retail Expand into new publisher categories Add offers Grow investments from current clients Expand our client base Co
Slide 14: A decade in the making
A decade in the making Unique rewards content Point of sale integrations Partnerships with over 850 clients Integrations with 82 retailers 96% client retention1 Item-level data, in store & online Large publisher audience AI-enabled platform Reaching 200M+ consumers2 6,200+ exclusive promotions 12M+
Slide 15: Q1 Financial Results and Q2 Outlook
Q1 24 Financial Results and Q2 24 Outlook © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent. 15
Slide 16: First quarter 2024 results
First quarter 2024 results Total revenue growth Adjusted EBITDA2 growth and margin +46% +24% non-GAAP increase in year-over-year margin growth1 $82.3M percentage $22.7M $57.7M 28% margin $2.5M 4% margin 1Q23 1Q24 1Q23 1Q24 Note: All 1Q23 and 1Q24 figures are unaudited. Figures may not tie due to rou
Slide 17: Revenue breakdown
Revenue breakdown Redemption revenue Ad & other revenue Total redemptions Ad products Marketers buy ads to support promotions Fee per Redemption Data Licensing purchase data & selling audiences Media Redemption Revenue Video media units sold on a cost-per-view basis 40% 83% 17% Direct-to- consumer (
Slide 18: Year-over-year revenue change
Year-over-year revenue change Total revenue Redemption revenue Total revenue YoY Growth %1 28% 46% Redemption revenue YoY Growth %1 42% 68% Redemption revenue YoY Growth %1 42% 68% Direct-to-consumer YoY Growth %1 14% 3% Ad & other YoY Growth % 3% (10)% Third-party publisher YoY Growth % 315% $82.3
Slide 19: Key drivers of D2C redemption revenue
Key drivers of D2C redemption revenue Redeemers (M) Redemptions per Redemption revenue Commentary redeemer per redemption1 16.3 ▪ D2C redemption revenue $1.19 up 3%2 1.9M 1.9M 14.4 $1.01 ▪ Redemptions per redeemer ▪ Driven by the quantity and quality of offers available ▪ Redemption revenue per rede
Slide 20: Key drivers of third-party redemption revenue
Key drivers of third-party redemption revenue Redeemers (M) Redemptions per Redemption revenue Commentary redeemer per redemption 4.2 4.1 ▪ 3PP redemption revenue 10.6M $0.80 up 315% $0.73 ▪ Redeemers ▪ Walmart Cash rolled out to all U.S. Walmart customers with a Walmart.com account near the end of
Slide 21: Improving cost & margin profile
Improving cost & margin profile Non-GAAP1 gross profit % Non-GAAP1 operating expenses (% of revenue) Sales & marketing Research & development +6% 87% 78% General & administrative 81% (%pt. -17% increase) (%pt. decrease) 61% 36% 30% 19% 16% 22% 15% 1Q23 1Q24 1Q23 1Q24 Note: All 1Q23 and 1Q24 figures
Slide 22: Guidance
Guidance Revenue +25% $83.5M - $86.5M year-over-year non-GAAP growth at the midpoint Adjusted EBITDA $19.5M - $22.5M 25% margin at the midpoint © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent. 22
Slide 23: Investment Highlights
Large addressable market AI-enabled platform with valuable dataset Investment Highlights Expansive partner network Solid double-digit revenue growth Increasing profitability © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent. 23
Slide 24: Appendix
Appendix © 2024 Ibotta, Inc. Proprietary and confidential, not to be shared without Ibotta’s express consent. 24
Slide 25: Consolidated statements of operations
Consolidated statements of operations In accordance with U.S. GAAP Q1’23 Q1’24 Revenue $57.7 $82.3 Cost of revenue 11.2 10.5 Gross profit 46.4 71.8 Operating expenses: Sales and marketing 21.6 28.1 Research and development 11.7 13.6 General and administrative 13.3 13.2 Depreciation and amortization
Slide 26: Adjusted EBITDA and Adjusted EBITDA margin reconciliation
Adjusted EBITDA and Adjusted EBITDA margin GAAP to non-GAAP reconciliation Q1’23 Q1’24 Net income ($4.3) $9.3 Interest expense, net 1.7 1.8 Depreciation & amortization 1.6 1.9 Stock based compensation 1.8 4.8 Change in fair value of derivative 1.5 1.7 Provision for income taxes 0.2 3.1 Adjusted EBIT
Slide 27: Revenue GAAP to non-GAAP reconciliation
Revenue GAAP to non-GAAP reconciliation Q1’23 Q1’24 Direct-to-consumer redemption revenue $33.3 $33.0 One-time breakage benefit ($1.2) - Non-GAAP direct-to-consumer redemption revenue $32.1 $33.0 Direct-to-consumer redemption revenue % YoY Growth 18% (1)% Non-GAAP direct-to-consumer redemption reven
Slide 28: Revenue GAAP to non-GAAP reconciliation (continued)
Revenue GAAP to non-GAAP reconciliation (continued) Q1’23 Q1’24 Total revenue $57.7 $82.3 Redemption revenue $41.7 $68.0 Ad & other revenue $16.0 $14.3 One-time breakage benefit ($1.2) - Non-GAAP total revenue $56.5 $82.3 Total revenue % YoY Growth 31% 43% Non-GAAP total revenue % YoY Growth 28% 46%
Slide 29: Gross profit GAAP to non-GAAP reconciliation
Gross profit GAAP to non-GAAP reconciliation Q1’23 Q1’24 Gross profit $46.4 $71.8 Stock-based compensation 0.2 0.2 Non-GAAP gross profit $46.7 $72.0 Revenue $57.7 $82.3 Gross profit % 80.5% 87.2% Non-GAAP gross profit % 80.9% 87.4% Note: $ in Ibotta, © 2024 millions. All Inc.quarterly figuresand Pro
Slide 30: Operating expenses GAAP to non-GAAP reconciliation
Operating expenses GAAP to non-GAAP reconciliation Q1’23 Q1’24 Sales & marketing $21.6 $28.1 Stock-based compensation (0.6) (3.6) Non-GAAP sales & marketing $21.0 $24.5 Research & development $11.7 $13.6 Stock-based compensation (0.5) (0.6) Non-GAAP research & development $11.2 $13.1 General & admin
Slide 31: 2023 one-time breakage benefit
2023 one-time breakage benefit User redemption liability & breakage • On our balance sheet, we have a user redemption In 2023, we made an update to fix a software liability balance that is an accumulation of direct- error to correctly charge maintenance fees to to-consumer (D2C) redeemers' account b