Performance marketing platform, Ibotta Inc. (NYSE:IBTA), offers fresh insights into changing brand behaviors, particularly the strategies adopted by consumer packaged goods (CPG) companies to navigate today’s highly competitive retail environment.

What Happened: During its first quarter results on Wednesday, Ibotta’s CEO, Bryan Leach, said that brands are increasingly beginning to adopt Ibotta's CPID model, which is short for “cost per incremental dollar,” as a way to manage promotional spend based on measurable ROIs, rather than calendar based campaigns.

“We're starting to see that it's now not as binary,” Leach says, with CPG clients no longer approaching promotions as one-off decisions. Instead, they’re asking, “what number would we need to hit in terms of cost per incremental dollar for you to keep this on?” he says.

Leach says this marks a fundamental shift from traditional practices in the industry, which have long relied on annual planning and lagging performance measurement. “That agility is so different from an industry where you have an annual plan and very episodic measurement,” he said.

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Ibotta's CPID model allows brands to dynamically set efficiency targets and continuously evaluate the profitability of their campaigns. According to Leach, early pilot clients have already expanded usage, with one CPG brand increasing its Ibotta spend eightfold year-over-year.

As more clients adopt the model, Ibotta is working to automate current manual workflows to support broader rollout. “You should be using this tool,” he says. The only real question for clients, he says, is whether they can achieve the volume they are aiming for, within the efficiency constraints they’ve set.

The company sees this shift as a key step toward its long-term goal of becoming what Leach calls an “indispensable tool for the next generation of brand management.”

Why It Matters: During its first quarter results on Wednesday, the company reported $84.57 million in sales, growing just 3% year-over-year, but beating consensus estimates by $2.53 million. It posted a profit of $0.02 per share, beating consensus estimates, but dropping significantly from $0.33 a year ago.

The Bear Cave Report recently took a swipe at the company, calling it a “broken business” that is likely to head lower, citing slow revenue growth and complaints from former customers and employees.

Price Action: The stock was up 0.34% on Wednesday, trading at $50.13, and is up 3.73% after hours, following its first quarter earnings.

According to Benzinga’s Edge Stock Rankings, iBotta scores poorly and is in the 11th percentile on momentum. Let’s see more insights on this stock.

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