Ibotta has confidently submitted an S-1 filing with the SEC on March 22, aiming to list its shares on the New York Stock Exchange. The 13-year-old cash-back startup is poised to make its public debut after achieving profitability and remarkable revenue growth in 2023.
In 2023, the company reported $320 million in revenue, a 52% increase from the previous year when it generated $210 million. Ibotta’s gross profits also saw substantial growth, rising by 68% from $164.5 million in 2022 to $276 million in 2023.
Originally starting as an app for consumers to earn cash back on purchases through partnerships with various brands, Ibotta has evolved to develop back-end software for reward programs for enterprise clients such as Exxon, Shell, and Walmart.
The company’s venture into B2B2C, selling to companies that then cater to consumers, is a key factor driving investor interest in its upcoming IPO, according to Nicholas Smith, a senior equity research analyst at Renaissance Capital. The shift towards selling to enterprises has significantly contributed to Ibotta’s recent financial successes.
Ibotta launched its enterprise program, known as the Ibotta Performance Network (IPN), in 2020. Its partnership with Walmart, initiated in the same year, expanded in 2022, playing a crucial role in boosting Ibotta’s revenue, as outlined in the S-1 filing.
The company’s direct-to-consumer business witnessed a 19% growth from 2022 to 2023, while its enterprise business (referred to as “third-party publishers revenue” in the filing) experienced a remarkable 711% growth during the same period, escalating from under $10 million to over $80 million in a single year.
Quarterly data reveals Ibotta’s journey to profitability, transitioning from net losses to consistent profits. The company’s rapid revenue growth, expanding secondary revenue streams, improved revenue quality, and GAAP profits have paved the way for its IPO.
Looking ahead, Ibotta has secured IPN partnerships with Family Dollar, Kroger, Exxon, and Shell, indicating strong corporate demand. However, uncertainties remain about how Ibotta will price its shares, given its unique revenue streams and industry positioning.
The company, backed by over $90 million in venture capital from notable funds and investors, is expected to generate continued growth and investor interest as it prepares to enter the public market.
