Cash-back rewards platform Ibotta (NYSE: IBTA) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.
Ibotta beat analysts’ revenue expectations last quarter, reporting revenues of $88.53 million, down 10% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Ibotta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ibotta’s revenue to decline 4.3% year on year, a reversal from the 2.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ibotta has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Ibotta’s peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Omnicom Group delivered year-on-year revenue growth of 69.2%, beating analysts’ expectations by 8.7%, and MediaAlpha reported revenues up 17.3%, topping estimates by 3.5%. Omnicom Group’s stock price was unchanged after the resultswhile MediaAlpha was down 14.9%.
Read our full analysis of Omnicom Group’s results here and MediaAlpha’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 8.7% on average over the last month. Ibotta is up 15.2% during the same time and is heading into earnings with an average analyst price target of $28 (compared to the current share price of $35.64).
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