Ibotta Plummets After Earnings. Wall Street Is Downgrading the Stock.

The digital-promotions company reported second-quarter revenue that missed Wall Street’s expectations. (Dreamstime.com)

Ibotta stock was plummeting Thursday after the digital-promotions company reported disappointing quarterly revenue.

The company posted adjusted earnings of 49 cents a share for the second quarter, above Wall Street’s consensus estimate of 40 cents, according to FactSet. But revenue totaled $86 million, down 2% from the same period last year and below analysts’ forecasts of $90.6 million.

Ibotta shares were falling 36% in premarket trading Thursday.

The company’s reported adjusted earnings before interest, taxes, depreciation, and amortization of $17.9 million for the quarter, a 29% decline from last year and below Wall Street’s call for $19.4 million. Adjusted Ebitda margin fell to 21% from 29% a year ago.

Ibotta expects third-quarter revenue of between $79 million and $85 million, which would represent a year-over-year decline of 17% at the midpoint.

The disappointing results and guidance drew a series of downgrades and price-target revisions on Wall Street. Among them, Wells Fargo Securities downgraded the stock to Equal Weight from Overweight and Citizens JMP downgraded Ibotta to Market Perform from Outperform.

Write to Nate Wolf at nate.wolf@barrons.com