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Mar 31, 2024
Instacart Q1 2024 Earnings Report
Instacart had a strong start to 2024, with year-over-year GTV growth, strong GAAP net income, and Adjusted EBITDA profitability.
Key Takeaways
Instacart reported a solid Q1 2024, marked by its fourth consecutive quarter of expanding year-over-year GTV growth, alongside strong GAAP net income and Adjusted EBITDA profitability. The company's scale and strategic advantages, including a wide selection of grocery retailers and efficient shopper network, drove the positive results. Instacart is well-positioned for continued growth and profitability in Q2 and the remainder of 2024.
GTV increased by 11% year-over-year to $8,319 million, exceeding the high end of the guidance range.
Orders grew by 9% year-over-year to 72.8 million, driven by efficient matching of demand and shopper availability during inclement weather and leap day.
Total revenue increased by 8% year-over-year to $820 million, influenced by GTV growth and changes in transaction and advertising revenue.
GAAP net income was $130 million, up $2 million year-over-year, and Adjusted EBITDA was $198 million, up 17% year-over-year.
Instacart
Instacart
Instacart Revenue by Segment
Revenue by Segment
Transaction Revenue
CapyFin.comAdvertising & Other Revenue
CapyFin.com Forward Guidance
Instacart anticipates GTV between $8,000 million and $8,150 million, representing a 7% to 9% year-over-year increase. The company expects adjusted EBITDA to be between $180 million and $190 million, about 2.3% of GTV.
Positive Outlook
- Year-over-year GTV growth of 7% to 9% is expected.
- Adjusted EBITDA is expected to be up year-over-year.
- Flexibility to spend on marketing and consumer incentives.
- Continued step up versus the growth delivered in 2023.
- Adjusted EBITDA to be approximately 2.3% of GTV.
Challenges Ahead
- Guidance does not expect a benefit from inclement weather.
- Guidance does not expect a benefit from leap day.
- Uncertainty regarding reconciling items such as stock-based compensation.
- Uncertainty regarding certain legal and regulatory accruals and settlements.
- Uncertainty regarding reserves for sales and other indirect taxes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income