Instacart Q3 2023 Earnings Report
Key Takeaways
Instacart's Q3 2023 results showed growth in GTV, orders, revenue, and gross profit. While the company reported a GAAP net loss due to stock-based compensation expenses related to its IPO, adjusted EBITDA increased significantly. The company is focused on profitable growth and investing in technology and products.
GTV grew to $7,494 million, a 6% year-over-year increase.
Orders increased to 66.2 million, up 4% year-over-year.
Total revenue reached $764 million, reflecting a 14% year-over-year growth.
Adjusted EBITDA rose to $163 million, a 120% year-over-year increase.
Instacart
Instacart
Instacart Revenue by Segment
Forward Guidance
In Q4 2023, Instacart anticipates year-over-year GTV growth to be in the 5-6% range, with orders growth driving the composition and adjusted EBITDA of $165 million to $175 million. The primary driver of adjusted EBIDTA growth is expected to be sequential growth in advertising & other revenue because of seasonality.
Positive Outlook
- Year-over-year GTV growth to remain in the 5-6% range
- Growth to continue to be driven more by orders growth than AOV growth as inflation wanes year-over-year
- Expand adjusted EBITDA quarter-over-quarter and year-over-year
- Adjusted EBITDA of $165 million to $175 million
- Primary driver of expansion to be sequential growth in advertising & other revenue because of seasonality
Revenue & Expenses
Visualization of income flow from segment revenue to net income