Feb 12 - Instacart, which operates under the formal name Maplebear, said it beat fourth-quarter estimates and projected current-quarter metrics above Wall Street expectations, helped by strong demand for staple groceries and growth in its advertising business. The company’s shares rose roughly 14% in extended trading following the results and outlook.
Management reported that consumers, mindful of inflation, increased purchases of lower-cost produce, dairy and pantry items while continuing to use Instacart’s faster delivery options. That shift toward budget-conscious grocery buying supported strong order growth and helped the platform retain customers looking to stretch their spending.
For the current quarter, Instacart forecast gross transaction value - the metric that reflects the value of products sold at prices displayed on its platform - in a range between $10.13 billion and $10.28 billion. That guidance surpasses analysts’ average estimate of $9.95 billion according to LSEG data and implies year-on-year growth of about 11% to 13%.
The company also projected adjusted earnings before tax, depreciation and amortization for the current quarter in a band of $280 million to $290 million, compared with analysts’ expectations of $279.5 million.
For the quarter ended December 31, Instacart reported GTV of $9.85 billion, up 14% from the prior year and above consensus of $9.5 billion. Adjusted core profit for the period was $303 million, beating the estimate of $292.2 million.
Advertising and other revenue rose 10% to $294 million, tracking year-ago growth, while order volumes climbed 16%, outpacing the 11% order growth recorded in the prior-year period. The company’s advertising arm finished the year with roughly 9,000 active brands, an increase of about 2,000 brands from a year earlier, and is expected to help push that segment’s revenue above $1 billion in 2025.
Instacart has broadened its product availability, including launching an app on OpenAI’s ChatGPT in December, though it acknowledged mounting competitive pressure. Amazon is planning a delivery service aimed at drop-offs under 30 minutes, and Kroger in January said it was expanding its partnership with Uber Eats - developments that could erode Instacart’s market share.
The company emphasized that these competitive dynamics are being watched closely as it rolls out products and advertising features that aim to keep budget-oriented shoppers engaged with its platform.
Summary: Instacart posted fourth-quarter GTV of $9.85 billion and adjusted core profit of $303 million, both above estimates, and forecast current-quarter GTV of $10.13 billion to $10.28 billion and adjusted EBITDA of $280 million to $290 million, surpassing analysts’ expectations. Growth was supported by higher orders and expanding advertising revenue.