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Market News

IPO News: Ibotta prepares to go public, after turning profitable

Ending a slowdown that lasted for about two years, IPO activity gained momentum this year led by healthcare and technology companies. The successful listings of Reddit and Astera Labs have revitalized the market, which looks headed for a busy year. The latest among the tech firms joining the IPO bandwagon is digital marketing software firm […]

April 2, 2024 2 min read

Ending a slowdown that lasted for about two years, IPO activity gained momentum this year led by healthcare and technology companies. The successful listings of Reddit and Astera Labs have revitalized the market, which looks headed for a busy year. The latest among the tech firms joining the IPO bandwagon is digital marketing software firm […]

· April 2, 2024

Ending a slowdown that lasted for about two years, IPO activity gained momentum this year led by healthcare and technology companies. The successful listings of Reddit and Astera Labs have revitalized the market, which looks headed for a busy year. The latest among the tech firms joining the IPO bandwagon is digital marketing software firm Ibotta Inc.

The IPO filing of Ibotta, which is based in Denver and backed by retail giant Walmart, comes after it turned profitable last year. The offering is expected to elicit good investor interest, considering the firm’s impressive financial performance lately. While the company looks to raise around $100 million, the number of shares and offer price are yet to be revealed.

To List on NYSE

The tech firm intends to list on the New York Stock Exchange under the ticker symbol IBTA. Citigroup, Goldman Sachs, and BofA Securities are the lead book-running managers for the proposed offering, while Evercore ISI, UBS Investment Bank, and Wells Fargo Securities act as joint book-running managers. The company plans to use proceeds from the offering for general corporate purposes, including working capital, operating expenses, and capital expenditures.

Ibotta’s platform helps brands engage in mobile promotions by offering consumers rewards and cash-back benefits. The company, which serves customers through its mobile app and website, looks poised to leverage the steady growth in digital advertising globally, thanks to the spike in social media ad spending and the proliferation of mobile e-commerce. The company began its partnership with Walmart around four years ago and expanded the tie-up in 2022, which has been a key revenue driver.

Turnaround

In fiscal 2023, Ibotta swung to a profit of $38.12 million or $1.42 per share from a loss of $54.86 million or $6.33 per share in the prior year, marking the end of a losing streak. The bottom line benefitted from a sharp increase in revenues to $320.04 million from $210.7 million in fiscal 2022. At $276.05 million, full-year gross profit was up an impressive 68%.

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Earlier, the business was negatively impacted by the economic slowdown and supply chain issues. But things improved in the second half of 2022 as supply chain constraints eased and customers’ inventory conditions improved. To reduce the impact of potential supply chain disruptions, the company keeps diversifying offers available on the Ibotta Performance Network by renewing and expanding partnerships with publishers and consumer packaged goods brands.

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