Ibotta confidently submitted an S-1 filing with the SEC on March 22 with the intent to checklist its shares on the New York Inventory Alternate. The 13-year-old cash-back startup appears to make its public debut after turning worthwhile and recording spectacular income progress in 2023.

The corporate reported $320 million in income in 2023, up 52% from 2022 when it produced $210 million in income. Ibotta’s gross income grew 68% from 2022, $164.5 million, to 2023, $276 million.

The Denver-based firm began as an app for shoppers to get money again on purchases by Ibotta’s model partnerships. The corporate has since expanded into constructing back-end software program for reward applications for enterprise clients together with Exxon, Shell and Walmart.

Ibotta’s transfer into B2B2C — promoting to corporations that then use these merchandise to promote to shoppers — is probably going a key motive why buyers could also be on this IPO, says Nicholas Smith, a senior fairness analysis analyst at Renaissance Capital, a analysis agency targeted on pre-IPO and IPO-focused ETFs. Promoting to corporations additionally doubtless performed an enormous function in Ibotta’s current monetary features.

“The truth that [Ibotta] has turn out to be, with Walmart, extra of an enterprise software program play, mainly being the back-end for its Walmart money rewards program, that lends extra credence to it,” Smith stated. “[Compared to] ‘Hey we’ve this app and we have to develop customers and proceed down that avenue.’”

The corporate began constructing its enterprise program, generally known as Ibotta efficiency community (IPN), again in 2020. Its partnership with Walmart additionally began in 2020 however expanded its IPN partnership with the retail big in 2022. In accordance with the S-1, this partnership performs an enormous function in Ibotta’s income enhance.

“Our income progress considerably accelerated with the addition of recent publishers to the IPN,” based on the S-1. “Most lately, the rollout of our gives on the digital property of Walmart has attracted bigger audiences, and in flip, resulted in better spend by CPG manufacturers and a better variety of redeemed gives. These developments have elevated our scale, progress, and profitability.”

Placing the Ibotta remark into perspective, from 2022 to 2023 its direct-to-consumer enterprise grew by 19%, a decent quantity. The corporate’s enterprise enterprise (“third-party publishers income” in its submitting), in contrast, grew 711% over the identical timeframe, scaling from just below $10 million to simply over $80 million in a single yr. That progress, and a ensuing enchancment in its gross margins — from 78% in 2022 to round 86% in 2023 — helped the corporate flip from persistent internet losses to constant profitability.

Quarterly knowledge from Ibotta underscores how lately — and quickly — it grew to become a worthwhile firm. From Q1 2022 by Q1 2023, the corporate posted common, lowering internet losses. Within the first quarter of 2022 it had destructive internet earnings of $22.9 million, which declined to $4.3 million one yr later. Then, beginning within the second quarter of 2023, it started to generate common income, which grew to $18.6 million by the final quarter of final yr.

Speedy income progress, an increasing secondary income line, bettering income high quality and GAAP income all got here collectively for Ibotta to checklist its shares. If it stumbles even with these backing traits, late-stage venture-backed startups might view its debut as a cautionary story.

However there may be motive to anticipate that its progress will proceed. The corporate has signed IPN partnerships with Household Greenback, Kroger, Exxon and Shell, implying broad company demand, even when the extent of these relationships is much less clear in comparison with Ibotta’s partnership with Walmart. The S-1 didn’t make clear how lengthy Ibotta’s partnership with Walmart is contracted for, however it did point out that if the retailer does finish the connection, it could have a cloth influence on Ibotta’s enterprise.

The largest query that continues to be is how Ibotta will worth its shares. Whereas the corporate doubtless selected to file its intent now — it initially employed bankers again in November — to experience the current wave of profitable IPOs from Astera Labs and Reddit, Ibotta could be very completely different from each of these corporations.

Ibotta has seen little or no, if any, secondary exercise based on secondary knowledge platforms, which makes it exhausting to gauge how buyers are presently valuing the startup. Smith stated the pricing might go just a few methods contemplating the corporate has a number of income streams that historically get valued fairly otherwise.

“It’s exhausting as a result of there is no such thing as a good comp,” Smith stated. “It’s a bit of little bit of an adtech firm, possibly getting extra [into] enterprise software program. [If it’s] checked out really from a tech perspective, it should most likely go for a excessive a number of, if it’s extra kind of adtech and even shopper it may be decrease.”

Smith added that if buyers peg it extra as an promoting or advertising and marketing firm that it’d worth equally to how Klaviyo, the digital advertising and marketing firm, was priced final fall. Klaviyo priced at $31 a share, $1 above its goal of $30, which gave it a valuation of $9.2 billion, a hair under its earlier main spherical valuation of $9.5 billion. The corporate presently has a market cap of $6.8 billion.

Ibotta has raised a bit of over $90 million in enterprise capital from funds together with GGV Capital, Nice Oak Ventures and Teamworth Ventures, amongst others, along with a slew of angel buyers together with Thomas Jermoluk and Jim Clark, the co-founders of Past Id. The corporate was final valued at $1.08 billion.