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Mar 31
Instacart Q1 2025 Earnings Report
Instacart reported solid Q1 2025 results with strong order growth and improved operational performance.
Key Takeaways
Instacart delivered a robust first quarter with 14% growth in orders and improved adjusted EBITDA, driven by increased ad revenue, AI-led personalization, and enterprise expansion.
Orders grew 14% YoY to 83,200,000, the fastest pace in 10 quarters.
Gross transaction value (GTV) rose to 9,122,000,000, up 10% YoY.
Net income was 106,000,000, and adjusted EBITDA rose 23% YoY to 244,000,000.
AI innovations like Smart Shop and Store View enhanced customer experience and efficiency.
Instacart
Instacart
Instacart Revenue by Segment
Revenue by Segment
Transaction Revenue
CapyFin.comAdvertising & Other Revenue
CapyFin.com Forward Guidance
Instacart expects Q2 2025 GTV between 8,850,000,000 and 9,000,000,000 with adjusted EBITDA between 240,000,000 and 250,000,000, maintaining momentum on growth and profitability.
Positive Outlook
- Order growth expected to outpace GTV growth.
- Adjusted EBITDA expansion expected both in absolute terms and as a percentage of GTV.
- Strong performance in advertising with Universal Campaigns and new brand partners.
- Ongoing benefits from AI enhancements like Smart Shop and Store View.
- Enterprise expansion supported by Wynshop acquisition and new B2B offerings.
Challenges Ahead
- AOV declining due to inclusion of restaurant orders and lower basket minimums.
- Higher GAAP operating expenses from stock-based compensation and legal matters.
- Ongoing regulatory risks and uncertainties in legal environment.
- Macroeconomic pressures may impact consumer behavior and costs.
- Potential variability in reconciling GAAP to non-GAAP metrics limits visibility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income