Instacart Q4 2023 Earnings Report
Key Takeaways
Instacart's Q4 2023 results showed solid growth in orders and GTV, along with expanding profitability. The company increased its share of sales in both small and large baskets compared to other digital-first platforms. They anticipate a strong start to 2024 with accelerated GTV growth.
Delivered consistently high-quality service during the holiday season.
Improved affordability by increasing marketplace loyalty and club membership-linked orders 30% year-over-year.
Made holiday gifting easier with our first-ever “Deal Week” in December.
Launched SNAP with all Kroger banners and Costco nationwide.
Instacart
Instacart
Instacart Revenue by Segment
Forward Guidance
Instacart anticipates GTV to be between $8.0 billion and $8.2 billion, representing year-over-year growth of 7% to 10%. Adjusted EBITDA is expected to be $150 million to $160 million, representing 1.9% to 2.0% of GTV.
Positive Outlook
- GTV growth to be driven more by orders growth than AOV growth.
- Outlook includes the added benefit of leap day.
- Outlook includes the benefit of seasonality.
- Continued spend on marketing.
- Continued spend on consumer incentives to drive profitable long-term growth.
Challenges Ahead
- Seasonally lower advertising & other revenue.
- Uncertainty regarding reconciling items such as stock-based compensation.
- Uncertainty regarding reconciling items such as certain legal and regulatory accruals and settlements.
- Uncertainty regarding reconciling items such as reserves for sales and other indirect taxes.
- These reconciling items could have a significant effect on future GAAP results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income