Latest news with #BryanLeach
CNBC
15-05-2025
- Business
- CNBC
Ibotta CEO Bryan Leach: Consumers are very focused on affordability
Bryan Leach, Ibotta CEO, joins CNBC's 'Money Movers' to discuss outlooks on the consumer, how much retailers may be able to contain tariff impact, and more.
Yahoo
14-05-2025
- Business
- Yahoo
Ibotta's (NYSE:IBTA) Q1 Sales Top Estimates, Stock Jumps 12.7%
Cash-back rewards platform Ibotta (NYSE:IBTA) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 2.7% year on year to $84.57 million. The company expects next quarter's revenue to be around $89.5 million, close to analysts' estimates. Its non-GAAP profit of $0.36 per share was 7.8% below analysts' consensus estimates. Is now the time to buy Ibotta? Find out in our full research report. Revenue: $84.57 million vs analyst estimates of $82.06 million (2.7% year-on-year growth, 3.1% beat) Adjusted EPS: $0.36 vs analyst expectations of $0.39 (7.8% miss) Adjusted EBITDA: $14.67 million vs analyst estimates of $12.56 million (17.3% margin, 16.8% beat) Revenue Guidance for Q2 CY2025 is $89.5 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q2 CY2025 is $19.5 million at the midpoint, in line with analyst expectations Operating Margin: -3.3%, down from 19.3% in the same quarter last year Free Cash Flow Margin: 17.6%, down from 20.5% in the same quarter last year Market Capitalization: $1.47 billion 'We made significant progress in the first quarter in establishing Ibotta as the first full-service performance marketing platform for the CPG industry,' said Ibotta CEO and founder, Bryan Leach. Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $369.5 million in revenue over the past 12 months, Ibotta is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand. As you can see below, Ibotta's 28.3% annualized revenue growth over the last two years was incredible. This is a great starting point for our analysis because it shows Ibotta's demand was higher than many business services companies. This quarter, Ibotta reported modest year-on-year revenue growth of 2.7% but beat Wall Street's estimates by 3.1%. Company management is currently guiding for a 1.8% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 6% over the next 12 months, a deceleration versus the last two years. Still, this projection is above average for the sector and suggests the market sees some success for its newer products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Ibotta's operating margin has been trending down over the last 12 months and averaged 4.2% over the last three years. Although this result isn't good, the company's elite historical revenue growth suggests it ramped up investments to capture market share. We'll keep a close eye to see if this strategy pays off. This quarter, Ibotta generated an operating profit margin of negative 3.3%, down 22.6 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. Revenue trends explain a company's historical growth, but the change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Ibotta's full-year EPS flipped from negative to positive over the last two years. This is a good sign and shows it's at an inflection point. In Q1, Ibotta reported EPS at $0.36, down from $0.54 in the same quarter last year. This print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. We also like to analyze expected EPS growth based on Wall Street analysts' consensus projections, but there is insufficient data. We enjoyed seeing Ibotta beat analysts' revenue and EBITDA expectations this quarter. On the other hand, its EPS missed. Overall, this was a mixed quarter. The stock traded up 12.7% to $56.61 immediately after reporting. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Business Wire
14-05-2025
- Business
- Business Wire
Ibotta Reports First Quarter 2025 Financial Results
DENVER--(BUSINESS WIRE)--Ibotta, Inc. (NYSE: IBTA), which operates the largest digital promotions network in North America, today announced financial results for the first quarter ended March 31, 2025. 'We made significant progress in the first quarter in establishing Ibotta as the first full-service performance marketing platform for the CPG industry,' said Ibotta CEO and founder, Bryan Leach. Share 'We made significant progress in the first quarter in establishing Ibotta as the first full-service performance marketing platform for the CPG industry,' said Ibotta CEO and founder, Bryan Leach. 'We ran successful campaigns with two of the largest CPG companies in the world and showed how our latest capabilities can deliver profitable revenue growth at scale. We also expanded our pilot program to a select number of new clients, with an ambitious roadmap to scale to our full client base in the future. We are excited to demonstrate the power of applying performance marketing to a massive industry that has never had it before.' First Quarter 2025 Financial Highlights: Total revenue of $84.6 million, representing year-over-year growth of 3%. Total redemption revenue of $73.4 million, an increase of 8% year-over-year. During the quarter, the IPN had 17.1 million redeemers, compared to 12.5 million redeemers in the first quarter of 2024, an increase of 37% year-over-year. The primary driver of year-over-year growth was the launch of Instacart during the fourth quarter of 2024, like-for-like growth of Walmart's audience, and the launch of Family Dollar in Q2 of 2024. Increased redemptions to 82.8 million, compared to 71.5 million in the first quarter of 2024, an increase of 16% year-over-year. Generated net income of $0.6 million, representing net income as a percent of revenue of 1%, and adjusted net income of $12.1 million, representing adjusted net income as a percent of revenue of 14%. Delivered Adjusted EBITDA of $14.7 million, representing an Adjusted EBITDA margin of 17%. Generated cash from operating activities of $19.9 million and free cash flow of $14.9 million. Repurchased 1.8 million shares for a total of $72.7 million at an average price per share of $39.47, exclusive of broker commissions and excise tax. The following table summarizes the Company's financial results for the three months ended March 31, 2025 and 2024: The following table summarizes the Company's performance metrics for the three months ended March 31, 2025 and 2024: Note that certain figures shown above may not recalculate due to rounding. First Quarter 2025 Business Highlights: Chris Riedy joined Ibotta as Chief Revenue Officer beginning on January 13, 2025. Announced a multi-year partnership with DoorDash to provide DoorDash customers with access to Ibotta's industry-leading catalog of digital offers. Subsequent to the quarter-end, our digital offers became live to most customers on DoorDash with an expectation for the rollout to be completed in the near future. Successfully launched our first CPID-based campaigns with two leading CPG clients. Financial Guidance: Second quarter 2025 outlook summary: Revenue of $86.5 - $92.5 million, a year-over-year increase of 2% at the midpoint Adjusted EBITDA of $17.0 - $22.0 million, representing a margin of 22% at the midpoint. Guidance for Adjusted EBITDA is earnings before interest (income) expense, net, provision for (benefit from) income tax, and depreciation and amortization, and excludes stock-based compensation, change in fair value of derivative, restructuring charges, and other expense, net. We have not reconciled Adjusted EBITDA to GAAP net income for our guidance because we do not provide guidance on GAAP net income and would not be able to present the various reconciling cash and non-cash items between the GAAP and non-GAAP financial measures since certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted, including share-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items could have a significant impact on the Company's GAAP net income. Use of Non-GAAP Financial Information Included within this press release are the non-GAAP financial measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income as a percent of revenue, adjusted diluted net income per share and free cash flow that supplement the condensed financial statements of the Company prepared under generally accepted accounting principles (GAAP). The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please see the accompanying tables for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents. Adjusted EBITDA is earnings before interest (income) expense, net, provision for (benefit from) income tax, and depreciation and amortization, and excludes stock-based compensation, change in fair value of derivative, restructuring charges, and other expense, net. Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percent of revenue. Adjusted net income excludes stock-based compensation, change in fair value of derivative, restructuring charges, and the related income tax effects. The income tax effect of non-GAAP adjustments is the difference between GAAP and non-GAAP income tax expense. Non-GAAP income tax expense is computed on non-GAAP pre-tax income (GAAP pre-tax income adjusted for non-GAAP adjustments). Adjusted diluted net income per share is calculated as adjusted net income divided by diluted weighted average common shares outstanding. Free cash flow is defined as cash provided by operating activities, less additions to property and equipment and capitalization of software development costs. The Company's management believes that these non-GAAP measures can assist investors in evaluating the Company's operational trends, financial performance, and cash-generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company's financial performance using some of the same measures as management. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures versus their nearest GAAP equivalents. The Company's definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. These non-GAAP measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, but are included solely for informational and comparative purposes. Non-GAAP financial measures are subject to limitations and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. In light of these limitations, management also reviews the specific items that are excluded from our non-GAAP measures, as well as trends in these items. First Quarter 2025 Financial Results Webcast and Conference Call Details Key Business Terms and Notes Ibotta Performance Network (IPN): An AI-enabled technology platform that allows CPG brands to deliver digital promotions to consumers via a network of publishers, in a coordinated fashion and on a fee-per-sale basis. Redeemers: A consumer who has redeemed at least one digital offer within the time period specified. If a consumer were to redeem on more than one publisher during that period, they would be counted as multiple redeemers. Year-to-date redeemers are calculated as the average of current year quarter-to-date redeemers. Redemptions: A verified purchase of an item qualifying for an offer by a client on the IPN. Redemption Revenue: The Company's customers promote their products and services to consumers through cash back offers on the IPN. The Company earns a fee per redemption which is recognized in the period in which the redemption occurred. The Company may also charge fees to set up a redemption campaign which are deferred and recognized over the average duration of historical redemption campaigns. About Ibotta ("I bought a...") Ibotta (NYSE: IBTA) is a leading performance marketing platform allowing brands to deliver digital promotions to over 200 million consumers through a network of publishers called the Ibotta Performance Network (IPN). The IPN allows marketers to influence what people buy, and where and how often they shop – all while paying only when their campaigns directly result in a sale. American shoppers have earned over $2.4 billion through the IPN since 2012. The largest tech IPO in history to come out of Colorado, Ibotta is headquartered in Denver, and is continually listed as a top place to work by The Denver Post and Inc. Magazine. Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements relating to expectations concerning matters that are not historical facts may constitute forward-looking statements. Forward-looking statements may include, without limitation, statements by our CEO and founder about our ability to transition our product and go-to-market, and the Company's financial guidance, such as revenue and Adjusted EBITDA. When words such as 'believe,' 'expect,' 'anticipate,' 'will', 'outlook' or similar expressions are used, the Company is making forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give readers any assurance that such expectations will prove correct. These forward-looking statements involve risks, uncertainties and assumptions, including those related to the Company's relatively limited operating history, which makes it difficult to evaluate the Company's business and prospects, the demands and expectations of clients and the ability to attract and retain clients. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company. These and other factors are disclosed in the Company's reports filed from time to time with the Securities and Exchange Commission, available at Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof, except as required by law. (1) Amounts include stock-based compensation expense as follows (in thousands): Expand Three months ended March 31, 2025 2024 Cost of revenue $ 657 $ 158 Sales and marketing (2) 5,129 3,622 Research and development 3,147 553 General and administrative 4,819 512 Total stock-based compensation expense $ 13,752 $ 4,845 Expand (2) Stock-based compensation expense included in sales and marketing includes common stock warrant expense of $2.2 million and $3.0 million recognized during the three months ended March 31, 2025 and 2024, respectively. Expand Ibotta, Inc. CONDENSED BALANCE SHEETS (In thousands) March 31, 2025 December 31, 2024 (unaudited) Assets Current Assets: Cash and cash equivalents $ 297,125 $ 349,282 Restricted cash 408 408 Accounts receivable, net 206,159 220,883 Prepaid expenses and other current assets 24,294 11,168 Total current assets 527,986 581,741 Property and equipment, net 4,441 1,951 Capitalized software development costs, net 17,573 16,201 Equity investment 4,531 4,531 Deferred tax assets, net 73,211 73,211 Operating lease assets 10,730 – Other long-term assets 792 794 Total assets $ 639,264 $ 678,429 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 11,303 $ 7,160 Due to third-party publishers 86,531 93,982 Deferred revenue 5,576 4,964 User redemption liability 72,481 74,006 Accrued expenses 15,133 17,965 Other current liabilities 5,480 6,088 Total current liabilities 196,504 204,165 Long-term liabilities: Operating lease liabilities, long-term 24,510 – Unrecognized tax benefits, long-term 16,974 16,981 Total liabilities 237,988 221,146 Stockholders' equity: Preferred stock — — Class A common stock — — Class B common stock — — Additional paid-in capital 645,896 629,050 Treasury stock (104,729 ) (31,321 ) Accumulated deficit (139,891 ) (140,446 ) Total stockholders' equity 401,276 457,283 Total liabilities and stockholders' equity $ 639,264 $ 678,429 Expand Ibotta, Inc. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Three months ended March 31, 2025 2024 Operating activities Net income $ 555 $ 9,297 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,165 1,909 Impairment of capitalized software development costs 164 92 Stock-based compensation expense 11,591 1,814 Common stock warrant expense 2,161 3,031 Credit loss expense 418 81 Amortization of debt discount and issuance costs 38 826 Change in fair value of convertible notes derivative liability — 1,700 Other 4 (3 ) Changes in assets and liabilities: Accounts receivable 14,311 19,925 Other current and long-term assets (23,890 ) (2,136 ) Accounts payable 273 (1,214 ) Due to third-party publishers (7,451 ) (5,632 ) Accrued expenses (3,559 ) (10,197 ) Deferred revenue 612 1,562 User redemption liability (1,525 ) (1,541 ) Other current and long-term liabilities 23,993 (148 ) Net cash provided by operating activities 19,860 19,366 Investing activities Additions to property and equipment (1,894 ) (152 ) Additions to capitalized software development costs (3,074 ) (2,315 ) Net cash used in investing activities (4,968 ) (2,467 ) Financing activities Proceeds from exercise of stock options 3,360 1,799 Debt issuance costs (2 ) — Deferred offering costs — (1,700 ) Purchase of treasury stock (69,778 ) — Taxes paid related to net share settlement of equity awards (629 ) — Other financing activities — (90 ) Net cash (used in) provided by financing activities (67,049 ) 9 Net change in cash, cash equivalents, and restricted cash (52,157 ) 16,908 Cash, cash equivalents, and restricted cash, beginning of period 349,690 62,591 Cash, cash equivalents, and restricted cash, end of period $ 297,533 $ 79,499 Expand The following table disaggregates the Company's direct-to-consumer and third-party publishers revenue by redemption and ad & other revenue: Non-GAAP Financial Metrics (In thousands, except shares, per share amounts, and percentages) The following tables show the Company's non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release: Reconciliation of Adjusted Net Income Three months ended March 31, 2025 2024 Net income $ 555 $ 9,297 Stock-based compensation 13,752 4,845 Change in fair value of derivative — 1,700 Restructuring charges 1,559 — Adjustment for income taxes (3,757 ) (444 ) Adjusted net income $ 12,109 $ 15,398 Revenue $ 84,574 $ 82,327 Adjusted net income as a percent of revenue 14 % 19 % Weighted average common shares outstanding, diluted 33,218,817 28,356,797 Net income per share, diluted $ 0.02 $ 0.33 Adjusted net income per share, diluted $ 0.36 $ 0.54 Expand Reconciliation of Free Cash Flow Three months ended March 31, 2025 2024 Net cash provided by (used in) operating activities $ 19,860 $ 19,366 Additions to property and equipment (1,894 ) (152 ) Additions to capitalized software development costs (3,074 ) (2,315 ) Free cash flow $ 14,892 $ 16,899 Expand
CBS News
07-05-2025
- Business
- CBS News
Polis calls on Colorado lawmakers to delay implementation of first-in-the-nation artificial intelligence law
Colorado is first state to propose new law to regulate use of AI Colorado is first state to propose new law to regulate use of AI Colorado is first state to propose new law to regulate use of AI Colorado is the first state in the nation to pass a law regulating the use of artificial intelligence. But state leaders are now asking the legislature to delay the law's implementation until January 2027. The governor, attorney general, Denver's mayor, and members of Colorado's congressional delegation signed a letter saying stakeholders need more time to develop a framework that "protects privacy and fairness without stifling innovation or driving business away from our state." The law is set to take effect in February of 2026 and would require businesses to disclose when the technology is being used for consequential decisions, like employment, bank loans, housing, and education. The governor and bill sponsor agreed to work with business, consumer, and civil rights groups on revisions to the law before implementation, but after hundreds of hours of negotiations, there is no compromise, and the legislative session ends Wednesday. The new law not only applies to tech companies but almost every company in Colorado that has more than 50 employees and uses software to make decisions. "Both the people who build the software and the people who use it are affected by this bill," says Bryan Leach, founder and CEO of the Denver tech company Ibotta. Leach says most businesses use software like Indeed to sort job applicants and, under the law, they will need to disclose possible biases the software might have: "You have to guess what the possible unintended, disparate impacts are and list out all of your steps of mitigation, even though you're not a developer of the software." Bryan Leach, founder and CEO of Ibotta, decries a new state law in Colorado that seeks to regulate the use of artificial intelligence by businesses. CBS Business owners would also have to respond to anyone who thinks the software discriminated against them, and if they don't like the answers, they can appeal to the Attorney General's Office. "Now every person who doesn't like the pile they're in, or the stage they get to, can force an accounting individualized to them from the developer and the deployer," says Leach. "This is a job-destroying bill." Democratic state Sen. Robert Rodriguez, who's led the charge for the AI regulations, says it's simply about bringing more transparency to the technology. "Would you like a computer telling you if you could have your job without an interview?" Rodriguez says. "Basically the bill is 'just try. Be responsible. Test your systems. Tell people how it works.' And if you do that, you're never getting in trouble. If you mess up and you try and fix it, you're never in trouble." Democratic state Sen. Robert Rodriguez discusses his bill that seeks to regulate businesses' use of artificial intelligence. CBS Consumer and civil rights groups say the law and a compromise bill Rodriguez introduced last week don't go far enough when it comes to transparency and enforcement. Rodriguez ended up killing the bill on Monday, and with the legislature adjourning Wednesday, the only way to delay the law's implementation is for the governor to call a special session.
Axios
29-04-2025
- Business
- Axios
Colorado AI bill set for overhaul as the clock ticks
Colorado's first-in-the-nation law governing the use of artificial intelligence is facing an overhaul after vocal opposition from technology companies. Why it matters: Other states are closely watching the lawmaking as a model for regulating AI and ensuring privacy in the bot era. Catch up quick: Colorado's current law — which takes effect next February — requires consumer disclosure when AI is being used and prevents discrimination in decision-making. It applies to predictive artificial intelligence systems that make decisions, not generative ones such as ChatGPT. Yes, but: The governor and tech industry argued the existing law went too far, saying it would stifle innovation, job growth and startup companies with all its demands on AI companies. The latest: A bill introduced Monday — just days before lawmakers adjourn the session — rewrites some rules to assuage the industry's fears. The legislation more clearly outlines the rules for consumer disclosure, adjusts the definition of discrimination to fit existing law and curtails some of the responsibilities of the AI company and those who deploy the software. The new rules would exempt smaller companies under 500 employees, rather than the current benchmark of 50. The other side: The changes didn't satisfy all the bill's critics and made the rules tougher in some areas, Chris Erickson, co-founder and managing partner at Range Ventures, a venture capital firm, tells us. The change "we were told is going to happen hasn't happened yet," he said. Bryan Leach, CEO and founder of Ibotta, a digital coupon company, echoed those concerns. "The bill substantially heightens the costs and administrative burdens on small businesses," he said in a statement to Axios Denver. "If passed, this bill will only exacerbate the damage to our reputation as a business-friendly state and our ability to continue to create jobs."
