Company: IBTA
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001628280-25-008240
Chunk: 143

Company: Ibotta, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 143
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 employees in order to evaluate our performance. 

The following table provides a reconciliation of net income (loss) to Adjusted EBITDA and net income (loss) as a percentage of revenue to Adjusted EBITDA margin for each of the periods presented (in thousands, except percentages):

Year ended December 31, 20242023Net income$68,742 $38,117 Add (deduct):Interest (income) expense, net(9,414)6,884 Depreciation and amortization(1)8,080 6,664 Stock-based compensation(2)76,216 20,168 Change in fair value of derivative3,085 5,000 Loss on debt extinguishment9,686 — Provision for (benefit from) for income taxes(44,246)5,934 Other expense, net(3)71 65 Adjusted EBITDA$112,220 $82,832 Revenue$367,254 $320,037 Net income as a percent of revenue19 %12 %Adjusted EBITDA margin 31 %26 %

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(1)Amortization of capitalized software development costs included in cost of revenue during the years ended December 31, 2024 and 2023 was $4.1 million and $3.0 million, respectively. 

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

Year ended December 31,20242023Cost of revenue$1,484 $659 Sales and marketing39,086 15,420 Research and development9,325 2,074 General and administrative26,321 2,015 Total stock-based compensation$76,216 $20,168 

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

78

Breakage Benefit

On our balance sheet, we have a user redemption liability balance that is an accumulation of direct-to-consumer redeemers’ account balances net of estimated breakage. Consumers’ accounts that have no activity for six months are considered inactive and charged a $3.99 per month maintenance fee (i.e., breakage) until the balance is reduced to zero or new activity ensues. Every month the user redemption liability increases by the amount credited to D2C redeemers for redemptions and is offset by D2C redeemer cash outs, actual inactivity maintenance fees