Ibotta (IBTA) to report earnings tomorrow: here is what to expect

What happened

Ibotta, a cash-back rewards platform, will report earnings this Monday after market close. Last quarter it reported revenues of $88.91 million, up 3.3% year on year, and 74.36 million total redemptions, up 26.9% year on year. The market expects revenue to grow 6.6% this quarter.

Confirmed

Global impact / market context

Ibotta earns money when shoppers redeem cash-back offers, so more redemptions can signal a healthier business. Last quarter's 74.36 million redemptions rose 26.9%, yet revenue grew only 3.3%, which means Ibotta may be earning less profit per redemption. Investors will watch whether faster expected revenue growth of 6.6% arrives.

Analyst inference

Analysts have reconfirmed their estimates over the last 30 days, suggesting they expect the business to stay the course. However, Ibotta has missed Wall Street's revenue estimates multiple times over the last two years. Peer MediaAlpha reported 22.7% revenue growth and beat expectations by 7.2%, a possible hint for the media and entertainment segment.

Analyst inference

What to watch

1. Ibotta will announce earnings this Monday after market close. Watch whether reported revenue reaches the 6.6% year-on-year growth the market expects, a reversal from last year's 15.6% decrease. Confirmed
2. Watch total redemptions. Last quarter they rose 26.9% to 74.36 million while revenue grew just 3.3%, so faster redemption growth without matching revenue growth would suggest weaker profit per redemption. Analyst inference
3. Watch whether Ibotta misses revenue estimates again, as it has multiple times over the last two years; another miss could push investors to lower their expectations for future revenue and profit. Analyst inference

Evidence

• stockstory.org