Ibotta, Inc.
For the period ended Mar 31, 2025. Filed May 15, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 15, 2025
IBTA$58.11+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001628280-24-047694
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsPerformance Metrics and Non-GAAP MeasuresBreakage BenefitCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001628280-25-025593
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsPerformance Metrics and Non-GAAP MeasuresNon-GAAP MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 85 previous paragraphs and 84 current paragraphs.
44 unchanged; 29 reworded; 10 added; 12 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Ibotta’s mission is to Make Every Purchase Rewarding. We accomplish this mission by delivering digital promotions to clients through the Ibotta Performance Network (IPN). Through the IPN, we source digital promotions from our clients, primarily consumer packaged goods (CPG) brands, and distribute these promotions to consumers via our network of publishers, enabled by our technology platform. We have strategic relationships with Walmart Inc. (Walmart), Dollar General Corporation (Dollar General), Family Dollar, a subsidiary of Dollar Tree, Inc. (Family Dollar), Maplebear, Inc. (Instacart), and DoorDash, Inc. (DoorDash, announced in January 2025 but not yet fully launched) among others, who are third-party publishers on the IPN and use our digital offers to power their loyalty programs on a white-label basis. We also host offers on Ibotta’s direct-to-consumer properties, which include the Ibotta-branded cash back mobile app, website, and browser extension (collectively, Ibotta D2C, which is part of the IPN). Within Ibotta D2C, we also partner with affiliate networks to allow consumers to earn cash back on a percentage of their total basket spend at certain retailers.
Current report
For the three months ended March 31, 2025 compared to the same period in 2024, third-party publisher redemptions were approximately 61.2 million and 43.8 million, respectively. This growth was primarily driven by the launch of Family Dollar in the second quarter of 2024, and Instacart in the fourth quarter of 2024, as well as the expansion of our existing third-party publishers.
Current report
Forthe three months ended March 31, 2025 compared to the same period in 2024, total redemptions per redeemer were approximately 4.8 and 5.7, respectively.
Current report
The benefit from (provision for) income taxes consists primarily of income taxes related to federal and state jurisdictions in which we conduct business, with the exception of the fourth quarter of 2024 when we released our valuation allowance on our deferred tax assets.
Removed paragraphs (12)
Previous report
Ibotta is a technology company that allows consumer packaged goods (CPG) brands to deliver digital promotions to over 200 million consumers through a single, convenient network called the Ibotta Performance Network (IPN). We are pioneers in success-based marketing; we only get paid when our client’s promotion results in a sale, not when a consumer merely views or clicks on the promotion. We have built the largest digital item-level promotions network in the United States by forming strategic relationships with major retailers such as Walmart Inc., a Delaware corporation (Walmart), Dollar General Corporation, a Tennessee corporation (Dollar General), and Family Dollar Stores LLC, a Delaware limited liability company (Family Dollar), which use our digital offers to power their loyalty programs on a white-label basis. Through the IPN, our clients can also reach millions more consumers on our widely used rewards app digital properties, which include the Ibotta-branded cash back mobile app, website, and browser extension (collectively, Ibotta D2C).
Previous report
Initial Public Offering
Previous report
On April 22, 2024, we closed our initial public offering (IPO), in which we issued and sold 2,500,000 shares of our Class A common stock at $88.00 per share (IPO price). We received net proceeds of $198.0 million after deducting underwriting discounts and commissions of $13.2 million and offering costs of approximately $8.8 million. Certain selling stockholders (Selling Stockholders) offered an additional 4,060,700 shares of our Class A common stock at the IPO price in a secondary offering, for which we received no proceeds. In connection with the secondary offering, on April 25, 2024, the underwriters for the IPO exercised their option to purchase an additional 984,105 shares of our Class A common stock from the Selling Stockholders at the IPO price less underwriting discounts and commissions, with all proceeds going to the Selling Stockholders.
Previous report
For the three months ended September 30, 2024 compared to the same period in 2023, our third-party publisher redemptions were approximately 65.8 million and 30.0 million, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, our third-party publisher redemptions were approximately 161.7 million and 57.3 million, respectively. This growth was primarily driven by the expansion of the Walmart program, which initially launched in the third quarter of 2022 to members of Walmart’s paid membership program, Walmart+, and expanded to all Walmart customers with a Walmart.com account in September 2023. In addition, Dollar General launched in the third quarter of 2023 and Family Dollar launched in the second quarter of 2024.
Previous report
Forthe three months ended September 30, 2024 compared to the same period in 2023, total redemptions per redeemer were approximately 6.4 and 7.3, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, total redemptions per redeemer were approximately 18.0 and 25.2, respectively.
Previous report
Forthe three months ended September 30, 2024 compared to the same period in 2023, D2C redemption revenue per redemptionwas $1.05 and$1.15, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, D2C redemption revenue per redemption was
Previous report
$1.12 and $1.18, respectively. This change was driven primarily by the one-time breakage benefit of $2.1 million and $12.7 million incurred during the three and nine months ended September 30, 2023, respectively. See the Breakage Benefit section below for more details, as well as offer mix.
Previous report
On our balance sheet, we have a user redemption liability balance that is an accumulation of direct-to-consumer redeemers’ account balances net of estimated breakage. Consumers’ accounts that have no activity for six months are considered inactive and charged a $3.99 per month maintenance fee (i.e., breakage) until the balance is reduced to zero or new activity ensues. Every month the user redemption liability increases by the amount credited to D2C redeemers for redemptions and is offset by D2C redeemer cash outs, actual inactivity maintenance fees, and estimated breakage. We estimate breakage at the time of user redemption and reduce the user redemption liability accordingly.
Previous report
In 2023, we made an update to fix a software error to correctly charge maintenance fees to all inactive D2C redeemers on a go-forward basis. This change resulted in a short-term benefit to U.S. GAAP revenue in 2023. For the three and nine months ended September 30, 2023, the breakage benefit to revenue totaled $2.1 million and $12.7 million, respectively. There was no breakage benefit associated with the three and nine months ended September 30, 2024.
Previous report
We expect additional operating expenses following the IPO due to stock-based compensation expenses associated with stock awards for which liquidity event-based vesting conditions will be satisfied or probable upon such effectiveness.
Previous report
Provision for income taxes consists primarily of income taxes related to state jurisdictions in which we conduct business. Due to uncertainty as to the realization of benefits from our deferred tax assets, we have a full valuation allowance reserved against such assets. Based on our assessment of current income and anticipated future earnings, there is a reasonable possibility that we will have sufficient evidence to release the valuation allowance within the next 12 months. However, our judgment regarding future earnings and the exact timing of the valuation allowance release is subject to change due to many factors, including future market conditions and the ability to successfully execute our business plans.
Reworded paragraphs (29)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited annual financial statements and related notes for the year ended December 31, 2023, filed with the Securities and Exchange Commission (SEC) on April 18, 2024, pursuant to Rule 424(b) under the Securities Act of 1933, as amended (Prospectus). The following discussion contains forward-looking statements that reflect our plans, objectives, expectations, intentions, and beliefs, which involve risks and uncertainties. Our actual results may differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the sections titled “Special Note Regarding Forward-Looking Statements” and “Risk Factors” included in Part II, Item 1A. Our historical results are not necessarily indicative of the results that may be expected for any period in the future, and our interim results are not necessarily indicative of the results we expect for the full fiscal year or any other period.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited annual financial statements and related notes for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K. This discussion contains forward-looking statements, such as those relating to our plans, objectives, expectations, intentions, and beliefs, which involve risks and uncertainties. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the sections titled “Special Note Regarding Forward-Looking Statements” and “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q. Our historical results are not necessarily indicative of the results that may be expected for any period in the future, and our interim results are not necessarily indicative of the results we expect for the full fiscal year or any other period.
Previous wording
Our business and results of operations are subject to global economic conditions. Our revenue depends on the ability of consumers to buy products that are featured on the IPN. Deteriorating macroeconomic conditions, including slower growth or a recession, inflation, bank failures, supply chain disruption, increases in interest rates, increases to fuel and other energy costs or vehicle costs, geopolitical events, including the potential for new or unforeseen conflicts, changes in the labor market, or decreases in consumer spending power or confidence, could result in a decline in client spending which could adversely affect the number of offer redemptions.
Current wording
Our business and results of operations are subject to global economic conditions. Our revenue depends on the ability of consumers to buy products that are featured on the IPN. Deteriorating macroeconomic conditions, including slower growth or a recession, inflation, changes in the perception of macroeconomic conditions, changes in U.S. government policies, bank failures, supply chain disruption, increases in interest rates, increases to fuel and other energy costs or vehicle costs, a potential U.S. federal government shutdown, geopolitical events, including escalated, escalating, and retaliatory tariff and non-tariff trade measures imposed by the U.S., Mexico, China, Canada and other countries, the potential for new or unforeseen conflicts, changes in the labor market, or decreases in consumer spending power or confidence, could lower promotional budgets and result in a decline in client spending which could adversely affect the number of offer redemptions on our network.
Previous wording
A redemption is a verified purchase of an item qualifying for an offer by a client on the IPN. The number of redemptions are an indicator of the scale and consumer engagement of our business, as well as the value we bring to our clients and publishers. Generally, redemptions grow as we increase budget with existing clients and/or add new CPG brands as clients. In addition, redemptions grow from adding publishers and redeemers, and/or increasing engagement from existing redeemers.
Current wording
A redemption is a verified purchase of an item qualifying for an offer by a client on the IPN. The number of redemptions are an indicator of the scale and consumer engagement of our business, as well as the value we bring to our clients and publishers. Generally, redemptions grow as we increase budgets with existing clients and/or add new CPG brands as clients. In addition, redemptions grow from adding publishers and redeemers, and/or increasing engagement from existing redeemers.
Previous wording
For the three months ended September 30, 2024 compared to the same period in 2023, D2C redemptions were approximately 31.6 million and 37.9 million, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, D2C redemptions were approximately 87.8 million and 105.0 million, respectively. The decrease was driven by the quantity and quality of offers available to each D2C redeemer.
Current wording
For the three months ended March 31, 2025 compared to the same period in 2024, D2C redemptions were approximately 21.6 million and 27.7 million, respectively. The decrease was driven by the quantity and quality of offers available to each D2C redeemer.
Previous wording
For the three months ended September 30, 2024 compared to the same period in 2023, total redemptions were 97.4 million and 67.9 million, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, total redemptions were 249.5 million and 162.3 million, respectively.
Current wording
For the three months ended March 31, 2025 compared to the same period in 2024, total redemptions were 82.8 million and 71.5 million, respectively.
Previous wording
For the three months ended September 30, 2024 compared to the same period in 2023, D2C redeemers were 1.9 million and 2.1 million, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, D2C redeemers were 1.9 million and 2.0 million, respectively. The decrease was driven by the quantity and quality of offers available to each D2C redeemer.
Current wording
For the three months ended March 31, 2025 compared to the same period in 2024, D2C redeemers were 1.7 million and 1.9 million, respectively. The decrease was driven by the quantity and quality of offers available to each D2C redeemer.
Previous wording
For the three months ended September 30, 2024 compared to the same period in 2023, third-party publisher redeemers were approximately 13.4 million and 7.2 million, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, third-party publisher redeemers were approximately 11.9 million and 4.4 million, respectively. These redeemers grow as we add third-party publishers and as these publishers ramp up consumers on their properties. This growth was primarily driven by the expansion of the Walmart program, which initially launched in the third quarter of 2022 to members of Walmart’s paid membership program, Walmart+, and expanded to all Walmart customers with a Walmart.com account in September 2023. In addition, Dollar General launched in the third quarter of 2023 and Family Dollar launched in the second quarter of 2024.
Current wording
For the three months ended March 31, 2025 compared to the same period in 2024, third-party publisher redeemers were approximately 15.4 million and 10.6 million, respectively. These redeemers grow as we add third-party publishers and as these publishers ramp up consumers on their properties. This growth was primarily driven by the launch of Family Dollar in the second quarter of 2024, and Instacart in the fourth quarter of 2024, as well as the expansion of our existing third-party publishers.
Previous wording
For the three months ended September 30, 2024 compared to the same period in 2023, total redeemers were approximately 15.3 million and 9.4 million, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, total redeemers were approximately 13.8 million and 6.4 million, respectively.
Current wording
For the three months ended March 31, 2025 compared to the same period in 2024, total redeemers were approximately 17.1 million and 12.5 million, respectively.
Previous wording
Redemptions per redeemer are the redemptions divided by the redeemers in that period. This metric is useful as redemptions per redeemer is an indication of our redeemers’ level of engagement with our platform. We aim to grow redemptions from our redeemers by expanding the breadth of offers available and increasing engagement by continuing to improve the consumer experience. In general, redemptions per redeemer are driven by rewards content. For new redeemers, redemption frequency initially increases before stabilizing. Our D2C business caters to consumers who are focused on savings, irrespective of the retailer. Our third-party publisher business tends to reach consumers who may be more loyal to a specific retailer and are engaging with offers powered by Ibotta’s technology platform.
Current wording
Redemptions per redeemer are the redemptions divided by the redeemers in that period. This metric is useful as redemptions per redeemer is an indication of our redeemers’ level of engagement with our platform. We aim to grow redemptions from our redeemers by expanding the breadth and depth of offers available and increasing engagement by continuing to improve the consumer experience. In general, redemptions per redeemer are driven by offer supply and the growth in offer supply relative to the growth in redeemers. For new redeemers, redemption frequency initially increases before stabilizing. Our D2C business caters to consumers who are focused on savings, irrespective of the retailer. Our third-party publisher business tends to reach consumers who may be more loyal to a specific retailer and are engaging with offers powered by Ibotta’s technology platform.
Previous wording
Forthe three months ended September 30, 2024 compared to the same period in 2023, D2C redemptions per redeemer were approximately 16.5 and 17.9, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, D2C redemptions per redeemer were approximately 46.7 and 52.5, respectively. The decrease was driven by the quantity and quality of offers available to each D2C redeemer.
Current wording
Forthe three months ended March 31, 2025 compared to the same period in 2024, D2C redemptions per redeemer were approximately 13.1 and 14.4, respectively. The decrease was driven by the quantity and quality of offers available to each D2C redeemer.
Previous wording
Forthe three months ended September 30, 2024 compared to the same period in 2023, third-party publisher redemptions per redeemer were approximately 4.9 and 4.1, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, third-party publisher redemptions per redeemer were approximately 13.5 and 12.9, respectively. The increase was driven by an increase in redeemers in September 2023 due to the expansion of the Walmart program.
Current wording
Forthe three months ended March 31, 2025 compared to the same period in 2024, third-party publisher redemptions per redeemer were approximately 4.0 and 4.1, respectively. The decrease was driven by the quantity and quality of offers available to each third-party publisher redeemer.
Previous wording
Forthe three months ended September 30, 2024 compared to the same period in 2023, third-party publisher redemption revenue per redemption was$0.78 and $0.75, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, third-party publisher redemption revenue per redemption was $0.79 and $0.74, respectively. This change was driven primarily by offer mix.
Current wording
Forthe three months ended March 31, 2025 compared to the same period in 2024, third-party publisher redemption revenue per redemption was$0.79 and $0.80, respectively. This change was driven primarily by offer mix.
Previous wording
For the three months ended September 30, 2024 compared to the same period in 2023, total redemption revenue per redemption was $0.87 and $0.97, respectively. For the nine months ended September 30, 2024 compared to the same period in 2023, total redemption revenue per redemption was $0.91 and $1.02, respectively.
Current wording
For the three months ended March 31, 2025 compared to the same period in 2024, total redemption revenue per redemption was $0.89 and $0.95, respectively.
Previous wording
We define Adjusted EBITDAas net income (loss), adjusted to exclude interest (income) expense, net, depreciation and amortization expense, stock-based compensation expense, change in fair value of derivative, loss on debt extinguishment, provision for (benefit from) income taxes, andother expense, net. We define Adjusted EBITDA marginas Adjusted EBITDA as a percent of revenue.
Current wording
We define Adjusted EBITDAas net income, adjusted to exclude interest (income) expense, net, depreciation and amortization expense, stock-based compensation expense, change in fair value of derivative, restructuring charges, (benefit from) provision for income taxes, andother expense, net. We define Adjusted EBITDA marginas Adjusted EBITDA as a percent of revenue.
Previous wording
Adjusted EBITDA and Adjusted EBITDA margin are used by our management team as additional measures of our performance for purposes of business decision-making, including managing expenditures and developing budgets. Period-over-period comparisons of Adjusted EBITDA and Adjusted EBITDA margin help our management team identify additional trends in our financial results that may not be shown solely by comparisons of net income (loss) and net income (loss) as a percentage of revenue, respectively. In addition, we may use Adjusted EBITDA and Adjusted EBITDA margin in the incentive compensation programs applicable to some of our employees in order to evaluate our performance.
Current wording
Adjusted EBITDA and Adjusted EBITDA margin are used by our management team as additional measures of our performance for purposes of business decision-making, including managing expenditures and developing budgets. Period-over-period comparisons of Adjusted EBITDA and Adjusted EBITDA margin help our management team identify additional trends in our financial results that may not be shown solely by comparisons of net income and net income as a percentage of revenue, respectively. In addition, we may use Adjusted EBITDA and Adjusted EBITDA margin in the incentive compensation programs applicable to some of our employees in order to evaluate our performance.
Previous wording
The following table provides a reconciliation ofnet income (loss) to Adjusted EBITDA andnet income (loss) margin to Adjusted EBITDA Margin for each of the periods presented (in thousands, except percentages):
Current wording
The following table provides a reconciliation ofnet income to Adjusted EBITDA andnet incomeas a percentage of revenue to Adjusted EBITDA margin for each of the periods presented (in thousands, except percentages):
Previous wording
(1)Amortization of capitalized software development costs included in cost of revenue for the three months ended September 30, 2024 and 2023 was $1.1 million and $1.0 million, respectively and for the nine months ended September 30, 2024 and 2023 was $3.1 million and $2.7 million, respectively.
Current wording
(1)Amortization of capitalized software development costs included in cost of revenue for the three months ended March 31, 2025 and 2024 was $1.2 million and $0.9 million, respectively.
Previous wording
We provide a platform to CPG brands to deliver digital promotions to consumers. The majority of our revenues are derived from the fees we charge to clients when consumers redeem offers on the IPN by purchasing promoted products. We also derive revenue from the sale of ad products to customers to promote their offers, as well as from data products.
Current wording
We provide a platform to CPG brands to deliver digital promotions to consumers. The majority of our revenues are derived from the fees we charge to clients when consumers redeem offers on the IPN by purchasing promoted products. We also derive revenue from the sale of ad products to clients to promote their offers, as well as from data products.
Previous wording
We expect our redemption revenue to increase as a percentage of revenue as we continue to grow the IPN.
Current wording
We expect our redemption revenue to increase as a percentage of revenue as we continue to grow the IPN and ad and other revenue to continue to decrease as a percentage of revenue.
Previous wording
Cost of revenue consists primarily of personnel-related costs attributable to personnel in our engineering department who maintain our platform, data hosting costs, revenue share with third-party publishers, amortization of platform-related software development costs, certain user award costs net of breakage, software licensing costs, and processing fees. Personnel-related costs include salaries, benefits, stock-based compensation, and bonuses. User award costs net of breakage recorded in cost of revenue are associated with awards earned from gift card purchases and sponsored user awards earned from watching an advertising video. Breakage represents the undistributed earnings of consumers never expected to be cashed out due to inactivity. User award costs also include user awards that are cashed out and subsequently identified as violating our terms of use.
Current wording
Cost of revenue consists primarily of revenue share with third-party publishers, personnel-related costs attributable to personnel in our engineering department who maintain our platform, data hosting costs, amortization of platform-related software development costs, certain user award costs net of breakage, software licensing costs, and processing fees. Personnel-related costs include salaries, stock- based compensation, benefits, and bonuses. User award costs net of breakage recorded in cost of revenue are associated with awards earned from gift card purchases and sponsored user awards earned from watching an advertising video. Breakage represents the undistributed earnings of D2C consumers that is not expected to be cashed out due to inactivity. User award costs also include user awards that are cashed out and subsequently identified as violating our terms of use.
Previous wording
We expect cost of revenue to increase as we continue to invest in our infrastructure and acquire new publishers and customers.
Current wording
We expect cost of revenue to increase as we continue to invest in our infrastructure and acquire new publishers and clients.
Previous wording
Sales and marketing expenses consist primarily of personnel-related costs for our sales and marketing departments, common stock warrant expense, self-funded user awards, net of the related breakage, media spend, B2B marketing, software licensing costs, market research, and public relations. Personnel-related costs include salaries, stock-based compensation, bonuses, benefits, taxes, and travel. Self-funded user awards are awards related to campaigns and other incentive bonuses on our D2C properties that are funded directly by Ibotta as part of our customer acquisition and retention strategy.
Current wording
Sales and marketing expenses consist primarily of personnel-related costs for our sales and marketing departments, self-funded user awards, net of the related breakage, B2B marketing, media spend, common stock warrant expense, software licensing costs, public relations, and market research. Personnel-related costs include salaries, stock-based compensation, bonuses, benefits, taxes, restructuring charges, and travel. Self-funded user awards are awards related to campaigns and other incentive bonuses on our D2C properties that are funded directly by Ibotta as part of our customer acquisition and retention strategy.
Previous wording
We expect sales and marketing to increase as we as we continue to invest in marketing efforts to increase engagement and brand awareness. However, we expect sales and marketing expenses to decrease as a percentage of total revenue over time due to growth in revenue from third-party publishers, although they may fluctuate as a percentage of total revenue from period to period.
Current wording
We expect sales and marketing expenses to decrease as a percentage of total revenue over time due to growth in revenue from third-party publishers, although they may fluctuate as a percentage of total revenue from period to period.
Previous wording
Research and development expenses consist primarily of personnel-related costs for our technology departments, software licensing costs, impairment of certain capitalized software development costs, and professional fees. Personnel-related costs include salaries, stock-based compensation, benefits, taxes, bonuses, and travel. We capitalize certain software development costs that are attributable to developing new features and adding incremental functionality to our platform or infrastructure. Costs incurred during the preliminary project stage and post-implementation operation stage are expensed as incurred in research and development expenses. In addition, impairment of in-progress software projects for which completion is subsequently determined not to be probable is recorded in research and development expenses.
Current wording
Research and development expenses consist primarily of personnel-related costs for our technology departments, software licensing costs, impairment of capitalized software development costs, and professional fees. Personnel-related costs include salaries, stock-based compensation, benefits, taxes, restructuring charges, bonuses, and travel. We capitalize certain software development costs that are attributable to developing new features and adding incremental functionality to our platform or infrastructure. Costs incurred during the preliminary project stage and post-implementation operation stage are expensed as incurred in research and development expenses. In addition, impairment of in-progress software projects for which completion is subsequently determined not to be probable is recorded in research and development expenses.
Previous wording
We expect research and development to increase as we focus on further improvements to, and maintenance of, our platform. However, we expect our research and development expenses to decrease as a percentage of total revenue over time, although they may fluctuate as a percentage of total revenue from period to period.
Current wording
We expect research and development expenses to increase as we focus on further improvements to, and maintenance of, our platform. However, they may fluctuate as a percentage of total revenue from period to period.
Previous wording
General and administrative expenses consist primarily of personnel-related costs for our administrative departments, software licensing costs, professional fees for external legal, accounting and other consulting services, facilities costs, corporate insurance, bad debt, and taxes and licenses. Personnel-related costs include stock-based compensation, salaries, benefits, bonuses, travel, and taxes.
Current wording
General and administrative expenses consist primarily of personnel-related costs for our administrative departments, professional fees for external legal, accounting and other consulting services, software licensing costs, facilities costs, corporate insurance, company events, bad debt, and taxes and licenses. Personnel-related costs include salaries, stock-based compensation, benefits, taxes, bonuses, recruiting fees, restructuring charges, and travel.
Previous wording
We expect to increase the size of our general and administrative function to support the growth of our business and expect to continue to incur additional expenses as a result of operating as a public company, including costs to comply with the rules and regulations applicable to companies listed on a U.S. securities exchange and costs related to compliance and reporting obligations pursuant to the rules and regulations of the SEC. In addition, as a public company, we expect to continue to incur increased expenses such as insurance, investor relations, and professional services. As a result, we expect the dollar amount of our general and administrative expenses to increase. However, we expect our general and administrative expenses to decrease as a percentage of total revenue over time, although they may fluctuate as a percentage of total revenue from period to period.
Current wording
We expect to increase the size of our general and administrative function to support the growth of our business, including increased facilities costs, and expect to continue to incur additional expenses as a result of operating as a public company. In addition, as a public company, we expect to continue to incur increased expenses such as insurance, investor relations, and professional services. As a result, we expect the dollar amount of our general and administrative expenses to increase. However, they may fluctuate as a percentage of total revenue from period to period.
Previous wording
Interest income (expense), net consists of interest income earned on cash and cash equivalents, net of interest expense incurred on debt instruments.
Current wording
Interest income (expense), net consists of interest income earned on cash, cash equivalents, and restricted cash, net of interest expense incurred on debt instruments.
Previous wording
Other expense, net consists primarily of the loss incurred upon extinguishment of the convertible notes, gains and losses incurred on the convertible notes derivative liability and disposals of assets, and penalties.
Current wording
Other expense, net consists of gains and losses on the convertible notes derivative liability, penalties, and gains and losses on the disposal of assets.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Forthe three months ended March 31, 2025 compared to the same period in 2024, D2C redemption revenue per redemptionwas $1.17 and$1.19, respectively. This change was driven primarily by offer mix.