Company: IBTA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-025593
Chunk: 150

Company: Ibotta, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 150
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 fair value of derivative— 1,700 Restructuring charges1,559 — (Benefit from) provision for income taxes(72)3,101 Other expense, net (3)399 2 Adjusted EBITDA$14,673 $22,659 Revenue$84,574 $82,327 Net income as a percent of revenue1 %11 %Adjusted EBITDA margin 17 %28 %

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(1)Amortization of capitalized software development costs included in cost of revenue for the three months ended March 31, 2025 and 2024 was $1.2 million and $0.9 million, respectively.

(2)Amounts include stock-based compensation expense as follows (in thousands):

Three months ended March 31,20252024Cost of revenue$657 $158 Sales and marketing5,129 3,622 Research and development3,147 553 General and administrative4,819 512 Total stock-based compensation$13,752 $4,845 

(3)Other expense, net is comprised of loss (gain) on disposal of assets and penalties.

Components of Results of Operations

Revenue

We provide a platform to CPG brands to deliver digital promotions to consumers. The majority of our revenues are derived from the fees we charge to clients when consumers redeem offers on the IPN by purchasing promoted products. We also derive revenue from the sale of ad products to clients to promote their offers, as well as from data products.

We expect our redemption revenue to increase as a percentage of revenue as we continue to grow the IPN and ad and other revenue to continue to decrease as a percentage of revenue. 

Cost of revenue

Cost of revenue consists primarily of revenue share with third-party publishers, personnel-related costs attributable to personnel in our engineering department who maintain our platform, data hosting costs, amortization of platform-related software development costs, certain user award costs net of breakage, software licensing costs, and processing fees. Personnel-related costs include salaries, stock-

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based compensation, benefits, and bonuses. User award costs net of breakage recorded in cost of revenue are associated with awards earned from gift card purchases and sponsored user awards earned from watching an advertising video. Breakage represents the undistributed earnings of D2C consumers that is not expected to be cashed out due to inactivity. User award costs also include user awards that are cashed out and subsequently identified as violating our terms