Ibotta's Q1 2025: Unraveling Contradictions in Instacart Partnership, CPID Automation, and CPG Budgeting

Impact of Instacart partnership on growth, CPID expansion and automation, budget exhaustion and CPG industry budgeting, Instacart integration and impact on growth are the key contradictions discussed in Ibotta's latest 2025Q1 earnings call.



Revenue and Adjusted EBITDA Outperformance:
- Ibotta reported revenue of $84.6 million in Q1 2025, exceeding the midpoint of guidance by 3%, and adjusted EBITDA of $14.7 million.
- The outperformance was driven by strong redemption revenue growth and stable expenses.

Redemption Revenue Growth:
- Ibotta's redemption revenue increased to $73.4 million in Q1 2025, up 8% year-over-year, with third-party redemption revenue rising 38% year-over-year.
- This growth was driven by the launch of Instacart during Q4 2024 and the onboarding of new publishers like Family Dollar.

CPID Campaign Success:
- Ibotta's CPID-based campaigns have shown promising results, with two large CPG clients experiencing significant increases in redemption revenue.
- The success was attributed to the ability to deliver incremental sales at attractive CPID costs and credible measurement, which is attracting more CPG clients.

Publisher Network Expansion:
- Ibotta's partnership with Instacart and DoorDash has expanded its reach in the online grocery marketplace, with positive learnings being applied across the platform.
- These partnerships have contributed to increased redemption rates and a broader consumer base.