Ibotta’s expansion into enterprise should set it up for a successful IPO
Ibotta confidently submitted an S-1 filing with the SEC on March 22 with the intent to list its shares on the New York Stock Exchange. The 13-year-old cash-back startup looks to make its public debut after turning profitable and recording impressive revenue growth in 2023.
The company reported $320 million in revenue in 2023, up 52% from 2022 when it produced $210 million in revenue. Ibotta’s gross profits grew 68% from 2022, $164.5 million, to 2023, $276 million.
The Denver-based company started as an app for consumers to get cash back on purchases through Ibotta’s brand partnerships. The company has since expanded into building back-end software for reward programs for enterprise customers including Exxon, Shell and Walmart.
Ibotta’s move into B2B2C — selling to companies that then use those products to sell to consumers — is likely a key reason why investors may be interested in this IPO, says Nicholas Smith, a senior equity research analyst at Renaissance Capital, a research firm focused on pre-IPO and IPO-focused ETFs. Selling to companies also likely played a big role in Ibotta’s recent financial gains.
“The fact that [Ibotta] has become, with Walmart, more of an enterprise software play, basically being the back-end for its Walmart cash rewards program, that lends more credence to it,” Smith said. “[Compared to] ‘Hey we have this app and we need to grow users and continue down that avenue.'”
The company started building its enterprise program, known as Ibotta performance network (IPN), back in 2020. Its partnership with Walmart also started in 2020 but expanded its IPN partnership with the retail giant in 2022. According to the S-1, this partnership plays a big role in Ibotta’s revenue boost.
“Our revenue growth significantly accelerated with the addition of new publishers to the IPN,” according to the S-1. “Most recently, the rollout of our offers on the digital property of Walmart has attracted larger audiences, and in turn, resulted in greater spend by CPG brands and a greater number of redeemed offers. These developments have increased our scale, growth, and profitability.”
The company reported $320 million in revenue in 2023, up 52% from 2022 when it produced $210 million in revenue. Ibotta’s gross profits grew 68% from 2022, $164.5 million, to 2023, $276 million.
The Denver-based company started as an app for consumers to get cash back on purchases through Ibotta’s brand partnerships. The company has since expanded into building back-end software for reward programs for enterprise customers including Exxon, Shell and Walmart.
Ibotta’s move into B2B2C — selling to companies that then use those products to sell to consumers — is likely a key reason why investors may be interested in this IPO, says Nicholas Smith, a senior equity research analyst at Renaissance Capital, a research firm focused on pre-IPO and IPO-focused ETFs. Selling to companies also likely played a big role in Ibotta’s recent financial gains.
“The fact that [Ibotta] has become, with Walmart, more of an enterprise software play, basically being the back-end for its Walmart cash rewards program, that lends more credence to it,” Smith said. “[Compared to] ‘Hey we have this app and we need to grow users and continue down that avenue.'”
The company started building its enterprise program, known as Ibotta performance network (IPN), back in 2020. Its partnership with Walmart also started in 2020 but expanded its IPN partnership with the retail giant in 2022. According to the S-1, this partnership plays a big role in Ibotta’s revenue boost.
“Our revenue growth significantly accelerated with the addition of new publishers to the IPN,” according to the S-1. “Most recently, the rollout of our offers on the digital property of Walmart has attracted larger audiences, and in turn, resulted in greater spend by CPG brands and a greater number of redeemed offers. These developments have increased our scale, growth, and profitability.”
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