Shares of Ibotta Inc (IBTA) plummeted 15.06% in pre-market trading on Thursday, following the release of disappointing third-quarter financial results and subsequent analyst downgrades. The digital promotions network operator reported a significant year-over-year decline in revenue and profitability, raising concerns among investors about the company's growth trajectory.

Ibotta's Q3 results, released after market close on Wednesday, showed total revenue of $83.3 million, representing a 16% decrease compared to the same period last year. The company's key metric, redemption revenue, fell 15% year-over-year to $72.1 million. Despite an increase in the number of redeemers on the Ibotta Performance Network, the average number of redemptions per redeemer declined, impacting overall revenue and indicating challenges in user engagement. Additionally, Ibotta's Q4 guidance disappointed investors, projecting revenue between $80-$85 million, representing a year-over-year decrease of 16% at the midpoint.

Following the earnings release, several analysts downgraded Ibotta's stock. BofA lowered its price target to $22 from $24, maintaining an Underperform rating. Goldman Sachs reduced its price target to $23 from $26, keeping a Sell rating on the shares. The negative sentiment from analysts, combined with the weak financial performance and outlook, contributed to the sharp pre-market decline in Ibotta's stock price.