Total Revenue

Virtually unchanged ($98.5M vs $98.6M)

Revenue remained flat as the balance between Direct-to-Consumer ($46.09M) and Third-Party Publisher ($52.27M) segments was maintained, showing stability from the previous period. " "

Operating Income

Declined by approximately 37%

Despite stable revenue, operating income dropped from $20.7M in Q3 to $12.97M in Q4 2024, suggesting pressure on margins possibly due to higher or reallocated operating expenses from the previous quarter. "

Net Income

Increased by over 340%

Net income surged from $17.24M in Q3 to $76.17M in Q4 2024, driven by the reversal in financing costs—particularly the dramatic change in interest expense—and other operational improvements despite lower operating income, indicating a significant shift in leverage and cost management. "

Basic EPS

Improved from $1.07 to $3.19

Basic EPS improved significantly as a result of the substantial increase in net income, even though operating income fell; this reflects the impact of favorable financing changes and enhanced profitability compared to the previous period. "

Interest Expense

Reversed dramatically (from $39K to –$12.98M)

The reversal in interest expense, which shifted to a net interest income of approximately $12.98M in Q4 compared to a minor expense in Q3, is attributable to changes in the company’s financing structure (such as the refinancing or extinguishment of debt) that altered the cost profile dramatically. "

Revenue

Q1 2025

no prior guidance

$80M to $84M, flat revenue growth "

no prior guidance

Adjusted EBITDA

Q1 2025

no prior guidance

$10M to $14M, about a 15% margin at the midpoint "

no prior guidance

Ad and Other Revenue

Q1 2025

no prior guidance

Approximately $10M "

no prior guidance

Non-GAAP Cost of Revenue

Q1 2025

no prior guidance

Increase by $2M sequentially, reflecting a full quarter of Instacart-related costs "

no prior guidance

Non-GAAP Operating Expense

Q1 2025

no prior guidance

Decline sequentially by $3M, driven by a decline in sales and marketing offset by growth in R&D and G&A "

no prior guidance

Adjusted EBITDA Margin

Q1 2025

no prior guidance

Expected to show improvement every quarter as revenue grows "

no prior guidance

GAAP Income Taxes

Q1 2025

no prior guidance

Expected to be de minimis in Q1, with a GAAP income tax rate in the high teens for the full year "

no prior guidance

Adjusted Tax Rate

Q1 2025

no prior guidance

Expected to be in the low teens in Q1 and mid-teens for the full year "

no prior guidance

Free Cash Flow as a Percent of Adjusted EBITDA

Q1 2025

no prior guidance

Expected to be in the range of 60% to 65% "

no prior guidance

Stock-Based Compensation

Q1 2025

no prior guidance

Expected to be between $50M and $60M for the full year 2025 "

no prior guidance

Instacart Partnership and Integration

In Q2, it was announced as a strategic partnership with integration planned for late 2024 with a focus on accessing Instacart’s extensive network. " " " In Q3, discussions centered on initial testing, phased rollout, and high redemption rates, with anticipation for revenue ramp-up. " " "

In Q4, the partnership showed healthy user engagement and redemption growth—even as operational hiccups, depleted offer supply, and the expansion into new categories (beer, wine, spirits) were highlighted. " " "

Recurring topic with increasing operational detail; sentiment remains optimistic overall but acknowledges short-term challenges.

Third-Party Publisher Redeemer Network Growth

Q1 highlighted significant growth in redeemer numbers and revenue. " Q2 saw strong organic growth with redeemers increasing by over 250% year-over-year " " , and Q3 reported further impressive year-over-year increases. "

Q4 continued the trend with a 27% year-over-year and 13% quarter-over-quarter increase, driven partly by Instacart’s addition, reinforcing the network’s strength. " "

Consistently robust growth across periods with positive sentiment on network expansion.

CPG Client Budget Trends and Promotional Spend Dynamics

Q1 emphasized increased budgets driven by strong platform performance and client retention. " " " " Q2 focused on the shift toward performance-based marketing, with growing promotional spending and real-time measurement developments. " " " " " In Q3, challenges around annual planning cycles and mixed client budget responses were noted. " " " "

Q4 noted that while some top clients increased their Ibotta budgets for 2025, overall spending was less than anticipated due to cautious economic sentiment and finalized pre-partnership e-commerce budgets. Enhanced ROI measurement and pilot successes were also detailed. " " " "

A recurring theme with evolving measurement emphasis and cautious spend dynamics—clients remain interested but are mindful of economic pressures.

Supply Constraints and Promotional Budget Depletion

Q2 mentioned that historically Ibotta hadn’t been constrained, though annual planning cycles sometimes limited flexible spending. " " In Q3, rapid redeemer demand began outpacing offer supply, leading to temporary depletion concerns. " " "

Q4 explicitly highlighted a lack of sufficient offer supply and depletion of 2024 budgets, with execution issues and delayed budget allocations impacting short-term redemption revenue. "

An intensifying issue; what began as a minor concern has become a more prominent challenge affecting short-term performance.

CPID Measurement Framework Adoption and Its Mixed Sentiment

This topic was not mentioned in Q1, Q2, or Q3 earnings discussions.

In Q4, early adoption by two large CPG clients was detailed. While the framework showed promise with higher average daily investments, there was mixed sentiment as clients adjusted to the new measurement approach. " "

Emerging in Q4; a new topic that shows early potential yet faces cautious and mixed reception.

New Leadership and Sales Execution Overhaul (New CRO)

There was no discussion of new leadership or a sales execution overhaul in Q1 through Q3.

Q4 introduced the appointment of a new Chief Revenue Officer, Chris Riedy, as part of an effort to address prior sales execution shortfalls and improve account coverage and operations. " "

A new development aimed at long-term sales improvement; its impact is yet to be determined but is seen as critical for future growth.

Expansion into Non-Traditional Publisher Partnerships

Q1 did not mention non-traditional partnerships, and while Q2 hinted at exploring opportunities in broader verticals " , Q3 did not raise this subject.

Q4 expanded on this strategy by detailing partnerships with DoorDash (set to go live in 2025) and enhanced roles for Instacart beyond grocery, including support for new categories. " " "

An emerging strategic focus that broadens the publisher network and is expected to drive future diversification and revenue opportunities.

Operating Expenses and Margin Pressure Impacting EBITDA

Q1 detailed strong margin expansion with improved adjusted EBITDA margins and operating leverage benefits. " Q2 maintained healthy margins despite increased expenses, and Q3 noted a step-down in expected margins due to rising costs. " "

Q4 showed increased operating expenses—including higher cost of revenue (due in part to Instacart-related costs) and other spending—which led to notable pressure on EBITDA margins (dropping from 33% to 28%). " "

A continuous focus where margins have eroded further in Q4 due to rising expenses and execution challenges, prompting caution among stakeholders.

Decline of General Merchandise Expansion Focus

Q1 and Q2 highlighted strong progress in expanding general merchandise with new partnerships and increased revenue contributions in non-grocery segments (automotive, home improvement, video games, etc.). " " " Q3 reinforced positive momentum with significant growth in these verticals. "

Q4 did not mention any decline in general merchandise focus; there was no negative sentiment, and the overall strategy continued to emphasize diversification into non-food categories.

No decline observed; the focus remains on expansion with consistently positive sentiment.

Reduced Emphasis on AI-Driven Targeting and Data Optimization

Q1 placed strong emphasis on AI-driven targeting as a critical strategic asset, with detailed discussion on its importance for optimized pricing and consumer engagement. " " "

Q4 did not reference a reduction in emphasis; discussions on AI-driven targeting were absent, suggesting it is no longer a focal point as other topics have taken precedence.

A relative reduction in focus compared to Q1, though not necessarily a strategic de-emphasis—it may reflect shifting priorities in the narrative.