Ibotta rallies on Q3 results; Goldman removes Sell rating

What happened

Ibotta reported third-quarter revenue of $98 million, up 17% year over year and $9 million above estimates. Redemption revenue rose 23%, and its redeemer base grew 30% to 23.6 million. Adjusted EBITDA increased 43%; non-GAAP earnings per share were $0.62, below expectations by $0.31.

Confirmed

Global impact / market context

Revenue growth was led mainly by Ibotta’s third-party publisher network, which more than offset weakness in its consumer-facing business. If that network keeps expanding, it could support sales growth; the earnings miss, however, shows that stronger revenue did not translate into meeting profit expectations.

Analyst inference

The article says Ibotta shares reached their highest level in 21 months after the results and outlook. Goldman Sachs removed its Sell rating and set a $58 price target, described as 16% above Monday’s close; these are analyst views, not guaranteed returns.

Confirmed

What to watch

1. Check whether the next results show continued growth in third-party publisher network revenue, since that source drove most of the increase in redemption revenue this quarter. Analyst inference
2. Compare future non-GAAP earnings per share with expectations to see whether revenue growth is accompanied by improved profit per share. Analyst inference
3. Assess whether the redeemer base continues to grow from 23.6 million and whether improving advertiser offer supply continues to support consumer use. Analyst inference

Evidence

• seekingalpha.com