Shares of Ibotta Inc (NYSE: IBTA) surged 14.54% in after-hours trading on Wednesday following the release of its first-quarter 2025 financial results, which significantly surpassed analysts' expectations. The digital promotions network operator demonstrated robust performance and provided an optimistic outlook for the coming quarter.

Ibotta reported adjusted earnings per share (EPS) of $0.36 for Q1 2025, dramatically beating the analyst consensus estimate of $0.01. Although this represents a 33.33% decrease from the $0.54 per share reported in the same period last year, the substantial outperformance relative to expectations likely fueled investor enthusiasm. Revenue for the quarter grew 3% year-over-year to $84.6 million, surpassing the analyst forecast of $82.1 million.

Adding to the positive sentiment, Ibotta provided encouraging guidance for the second quarter of 2025. The company expects Q2 revenue to be in the range of $86.5 million to $92.5 million, with the midpoint slightly above the analyst consensus of $89.2 million. This outlook suggests continued growth and confidence in the company's business model despite challenging market conditions.

CEO and founder Bryan Leach highlighted the company's progress in establishing Ibotta as a leading performance marketing platform for the consumer packaged goods (CPG) industry. The successful execution of campaigns with two major CPG companies during the quarter demonstrates Ibotta's expanding capabilities and market penetration.

The strong quarterly results and positive forward guidance appear to have reassured investors about Ibotta's growth trajectory and profitability, leading to the significant after-hours stock price increase. As always, investors should continue to monitor the company's performance and market conditions, as after-hours movements may not always reflect regular trading session patterns.