By Emily Dattilo

Shares of Ibotta were falling sharply after the performance marketing platform reported disappointing quarterly results after markets closed Wednesday.

Ibotta stock fell 39% to $38.35 in trading Thursday, putting it on track for its largest daily percentage decrease on record, according to Dow Jones Market Data.

For its fourth quarter, the company reported adjusted earnings of 67 cents per share, lower than the 99 cents recorded in the year-ago quarter, according to FactSet. Revenue of $98.38 million was below the consensus estimate for $103.6 million.

For its fiscal first quarter, the company anticipates revenue of $80 million to $84 million, flat with the year earlier at the midpoint, while analysts had penciled in $91 million.

Ibotta is a marketing platform that lets brands deliver digital promotion to consumers through a network of publishers called the Ibotta Performance Network. The company's customers promote products and services through cash back offers on the IPN, and the company earns a fee per redemption.

Management spoke about the poor quarterly results on the earnings call.

"The current softness in our business is attributable to the fact that we have not secured enough office supply from CPG [consumer packaged goods] brands relative to the rapid growth of redeemers across our network," the company said, adding that redemptions per redeemer were lower than anticipated, which weighed on redemption revenue through the end of the fourth quarter.

Write to Emily Dattilo at emily.dattilo@dowjones.com

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February 27, 2025 10:24 ET (15:24 GMT)

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