Ibotta: Walmart's Golden Goose or lose gamble?
On Thu, 18 Apr 2024, IPO shares of digital marketing firm Ibotta soared +33% on their debut on the NYSE.
This gave the $Wal-Mart(WMT)$ -backed company a market valuation of $3.55 billion.
$Ibotta Inc.(IBTA)$ sold 6.6 million shares at $88 apiece, raising $577.3 million.
Earlier its estimated price range was $76-$84 apiece.
In 2024, it looks like Tech offerings are leading the charge as the US IPO market rebounds, after a sluggish two years, fueled by hopes of a soft landing in the economy.
Ibotta's stellar listing follows recent successful debuts by:
Social media platform Reddit, $Reddit(RDDT)$.
Chip firm Astera Labs, $Astera Labs, Inc.(ALAB)$ .
Background.
Is an American mobile technology company, founded in 2011.
It offers cash back rewards on various purchases through its proprietory network, consumer properties, including mobile app, website, and browser extension and in-person shopping.
It operates solely in the US, offering rewards on categories such as groceries, online shopping, general merchandise, and more…
Its Rewards-as-a-service (Raas) offering went live in 2021.
In August 2019, Ibotta received a $1 billion valuation after its Series D funding.
In 2023, the company surpassed $1.5 billion cash rewards paid to over 50 million consumers since the company's founding.
Post IPO.
In an interview with Reuters, Ibotta CEO Bryan Leach said:
Proceeds from its Initial Public Offer (IPO) will be used to enhance its existing service platform, infusing it with AI technology to bring about a more sophisticated way to promote its products in the digital world.
At the same time provide advertisers a richer set of capabilities, reaching to larger audiences.
Leach will hold about 69.7% of the total voting power in the company post-IPO.
Financials.
Walmart owns about 8.3% stake (approx. 2.7 million shares) in Ibotta, and did not sell in the offering.
Ibotta generated net profit of $38 million vs -$55 million loss in 2022.
For Q1 2024,
Net profit is expected to be between $7.30 to -$9.30 million vs -$4.30 million loss YoY.
Revenue is expected to be between $80.80 to -$82.30 million, a +40% YoY gain.
Stock Performance.
2 days into listing, the stock price had its fair share of ups & downs.
It bottomed on Fri, 19 Apr 2024 at $96.20 per share.
It peaked on Thu, 23 Apr 2024 at $109.90 per share.
It had a 2nd peak just last Fri, 26 Apr 2024 at $108.17 per share.
Closing off May Day at $99.5 per share, it is still spotting a +13.07% gain over its $88 IPO price.
My viewpoints: (mine & mine only)
I like to learn about new stocks debuting on US exchanges.
They may one-day grow to become the giant company of today.
Like any newly listed company, Ibotta will speculated by punters out to make a quick buck.
At face value, this company’s profile remains firmly rooted in the US.
With implication that its growth potential centres firmly in the US as well.
Making its potential as a global player rather limiting (as of now).
I may keep it under purview, but it is volatile for my liking at the moment.
Must Read: Click on below titles to access. Give a like & help to Repost ok. Thanks.
Do you think you will be interested in a Reward as a Service type of company?
Do you think it is a “sure-win” given Walmart’s support of Ibotta?
If you find this post interesting, give it wings! ️ Repost and share the insights ?
Do consider “Follow me” and get firsthand read of my daily new post. Thank you.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Pls help to "Re-post". Tks! Rating is important (to me).
Would you consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!