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Ibotta (IBTA) Stumbles After Dismal Q2 Results - Hagens Berman
Globe Newswire 26-Sep-2024 8:43 AM
SAN FRANCISCO, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Ibotta, Inc. (NYSE:IBTA) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.
The investigation focuses on the propriety of Ibotta's disclosures of known trends in its April 22, 2024 initial public offering documents in which the company sold 2.5 million shares at $88 per share and certain selling stockholders sold an additional 4.06 million shares at the IPO price in a secondary offering.
Ibotta is a technology company that allows consumer packaged goods ("CPG") brands to deliver digital promotions to over 200 million consumers through its network called the Ibotta Performance Network, or "IPN." In its offering documents, Ibotta recited certain key business metrics it uses "to help us evaluate our business, identify trends affecting our performance, formulate business plans, and make strategic decisions." These metrics include, without limitation, direct-to-consumer redemptions, direct-to-consumer redeemers, and total redemptions per redeemer.
On August 13 2024, less than 2 months after closing its IPO, Ibotta announced its Q2 2024 financial results. The company swung to a $33.9 million net loss for the quarter (compared to net income of $15.3 million during the prior year period) and nearly doubled its operating expenses compared to the prior year period.
The company also revealed that direct-to-consumer redemptions shrunk 19%, direct-to-consumer redeemers shrunk 7%, and total redemptions per redeemer shrunk 39%, all compared to the prior year period.
This news drove the price of Ibotta shares down $15.53 (-26%) on August 14, 2024 to close at $42.66, or about 48% below the IPO price.
"We are looking into whether Ibotta's offering documents omitted to disclose known trends its management was seeing in its key metrics at the time of its IPO," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Ibotta and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Ibotta investigation, read more »
Whistleblowers: Persons with non-public information regarding Ibotta should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email IBTA@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
