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Investing.com -- Ibotta , Inc. (NYSE:IBTA), the largest digital promotions network in North America, saw its shares soar 15.7% after reporting first quarter earnings and providing upbeat guidance for the second quarter.
The company reported adjusted earnings per share of $0.36 for Q1, missing analyst estimates of $0.42. However, revenue came in at $84.6 million, up 3% YoY, driven by an 8% increase in redemption revenue to $73.4 million.
Ibotta’s outlook for Q2 impressed investors, with revenue guidance of $86.5-92.5 million, compared to analyst consensus of $89.2 million. The company also expects adjusted EBITDA of $17-22 million, representing a 22% margin at the midpoint.
CEO Bryan Leach highlighted the company’s progress in establishing itself as "the first full-service performance marketing platform for the CPG industry." He noted successful campaigns with two major CPG companies demonstrating Ibotta’s ability to "deliver profitable revenue growth at scale."
The Ibotta Promotions Network (IPN) saw significant user growth, with 17.1 million redeemers in Q1, up 37% YoY. This was primarily driven by the launch of Instacart (NASDAQ:CART) integration, growth in Walmart (NYSE:WMT)’s audience, and the addition of Family Dollar.
Despite the earnings miss, investors appeared to focus on the strong guidance and user growth. The company also reported generating $19.9 million in cash from operations and $14.9 million in free cash flow during the quarter.
Ibotta’s stock movement reflects investor optimism about the company’s growth trajectory and its expanding role in the digital promotions space.
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