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Investing.com -- Ibotta, Inc. (NYSE:IBTA), the operator of North America’s largest item-level digital promotions network, saw its shares tumble 25% after the company reported second quarter earnings that missed analyst expectations and provided disappointing third quarter guidance.
The digital promotions company reported adjusted earnings per share of $0.49 for the second quarter, falling short of analyst estimates of $0.52. Revenue came in at $86 million, representing a 2% year-over-year decline. The company’s stock plummeted following the release, with investors particularly concerned about Ibotta’s weak forward guidance.
For the third quarter, Ibotta expects revenue between $79 million and $85 million, significantly below the analyst consensus of $101.8 million. The midpoint of this guidance range represents a 17% year-over-year decrease. The company also forecasts adjusted EBITDA of $9.5-$13.5 million, representing a margin of 14% at the midpoint.
"Ibotta is working hard to bring the power of performance marketing to the CPG industry, allowing our clients to drive profitable revenue growth at scale," said Ibotta CEO and founder Bryan Leach. "We are working to fundamentally shift the ways promotions are perceived which requires us to reinvent how they are measured and change how they are purchased."
Despite the revenue decline, Ibotta reported some positive metrics, including 27% YoY growth in quarterly redeemers on the Ibotta Performance Network, reaching 17.3 million compared to 13.7 million in the second quarter of 2024. The company attributed this growth primarily to the launch of Instacart during the fourth quarter of 2024, growth at existing publishers, and the partial launch of DoorDash.
The company generated net income of $2.5 million, representing 3% of revenue, and delivered adjusted EBITDA of $17.9 million with a 21% margin. Ibotta also repurchased 1.4 million shares for a total of $67.5 million during the quarter.
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