Shares of Ibotta Inc (IBTA) plummeted 22.53% in intraday trading on Thursday, as investors reacted to the company's disappointing third-quarter financial results, weak fourth-quarter guidance, and subsequent analyst downgrades. The digital promotions network operator faced significant headwinds, leading to a substantial decline in its stock price.

Ibotta's Q3 report, released after Wednesday's market close, revealed a concerning financial performance. Total revenue fell 16% year-over-year to $83.3 million, with redemption revenue, a key metric for the company, dropping 15% 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. The company's profitability also took a hit, with adjusted EBITDA margin contracting sharply to 20% from 37% in the same quarter last year.

Adding to investor concerns, Ibotta provided weak guidance for the fourth quarter, projecting revenue between $80-$85 million, representing a year-over-year decrease of 16% at the midpoint. The company also forecasted an adjusted EBITDA margin of just 13% for Q4, further pressuring the stock. In response to these developments, several analysts downgraded their outlook on Ibotta. Goldman Sachs maintained its Sell rating while lowering the price target to $23 from $26. Similarly, Bank of America reduced its price target to $22 from $24, keeping an Underperform rating. These analyst actions, combined with the weak financial results and guidance, have contributed to the significant sell-off in Ibotta's stock as investors reassess the company's near-term prospects and growth trajectory.