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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customers User Redemption Liability Extinguishment
The Company reflects a user redemption liability in the condensed balance sheets associated with the undistributed earnings of consumers on Ibotta’s D2C properties. A portion of these undistributed
earnings is never expected to be cashed out by consumers due to inactivity and will therefore be recognized as breakage by the Company.
Consumers’ accounts that have no activity for six months are considered inactive and charged a $3.99 per month maintenance fee until the balance is reduced to zero or new activity ensues. Balances associated with accounts that are deactivated for violation of the Company’s terms of use are also recognized as breakage. The Company estimates breakage at the time of user redemption and reduces the user redemption liability accordingly. Breakage estimates are made based on historical breakage patterns, and the preparation of estimates includes judgments of the applicability of historical patterns to current and future periods. Breakage is recorded in revenue related to funded awards, as an offset to sales and marketing expense related to self-funded awards, and as an offset to cost of revenue related to gift card purchases and sponsored user awards earned from watching an advertising video.
The Company’s breakage is recorded as follows (in thousands):
Three months ended September 30,Nine months ended September 30,
2024202320242023
Revenue$3,258 $6,213 $10,888 $21,970 
Cost of revenue46 117 161 487 
Sales and marketing394 1,048 1,411 4,340 
Total breakage$3,698 $7,378 $12,460 $26,797 
The user redemption liability was $80.0 million and $84.5 million as of September 30, 2024 and December 31, 2023, respectively.
Revenue from Contracts with Customers
Disaggregation of Revenue
The Company’s disaggregated revenue by type of service is as follows (in thousands):
Three months ended September 30,Nine months ended September 30,
2024202320242023
Redemption revenue$84,485 $66,007 $226,425 $165,981 
Ad & other revenue14,136 19,280 42,449 54,382 
Total revenue$98,621 $85,287 $268,874 $220,363 
Deferred Revenues
Deferred revenues primarily consist of fees and cash back offers collected from customers that will be applied to future campaigns. Deferred revenues are expected to be recognized as consumers redeem offers over the term of the campaigns, net of the cash back offer, which generally occurs within 12 months. Deferred revenues were $4.8 million and $2.6 million as of September 30, 2024, and December 31, 2023, respectively.
Revenue recognized from deferred revenue at the beginning of the year is as follows (in thousands):
Three months ended September 30,Nine months ended September 30,
2024202320242023
Revenue recognized$27 $58 $1,687 $2,524