Financial Data and Key Metrics Changes - The company reported a 10% year-over-year growth in Gross Transaction Value (GTV) for Q2 2024, marking the third consecutive quarter of positive GAAP net income at $61 million, despite a quarter-over-quarter decline due to stock-based compensation noise and restructuring reversals [5][16][18] - Adjusted EBITDA reached $208 million, up 89% year-over-year, and operating cash flow increased by 42% year-over-year to $244 million [16][18] Business Line Data and Key Metrics Changes - GTV growth was driven by a 7% increase in order growth and a 3% rise in average order value (AOV), with basket size being a key driver of outperformance [14][15] - Advertising and other revenue grew by 11% year-over-year, primarily due to the increase in active brands on the platform, which surpassed 6,000 [15][16] Market Data and Key Metrics Changes - The company maintains a leading market share with over 50% in small baskets and over 70% in large baskets, which represent 75% of the industry and a significant portion of profits [22][23] - The enterprise platform accounted for about 20% of Instacart orders, indicating a growing integration with retailers [9] Company Strategy and Development Direction - The company is focused on deepening retailer integrations and expanding its enterprise platform, which is seen as a critical part of its growth strategy [6][12] - The launch of AI-powered technologies and in-store solutions, such as Caper Carts and Carrot Tags, is aimed at enhancing customer experience and driving adoption [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate shareholder value over time, citing strong operating fundamentals and a disciplined approach to financial performance [13][18] - The outlook for Q3 2024 includes a GTV guidance of $8.1 billion to $8.25 billion, representing year-over-year growth of 8% to 10% [17] Other Important Information - The company completed its initial $1 billion share repurchase program and authorized an additional $500 million buyback [18] - The partnership with Uber Eats is expected to accelerate restaurant adoption and enhance overall customer engagement [34] Q&A Session All Questions and Answers Question: How is the company dividing resources around customer acquisition and retention? - The company is focused on both new customer acquisition and habituating existing customers, utilizing a portfolio of marketing tactics to achieve this [20][21] Question: What is the competitive environment like? - The company maintains a strong competitive position with significant market share and is not seeing much change in the competitive landscape [22][23] Question: What is the outlook for the advertising environment? - The company is experiencing a pullback from large brands but is offsetting this with growth from emerging brands, which now number over 6,000 [27] Question: Can you elaborate on the recent partnerships with Uber Eats and Chase? - The partnership with Uber Eats is driving faster restaurant adoption, while the Chase partnership is being refocused to target new customer acquisition [34][37] Question: What is driving the increase in average order value? - The increase in AOV is attributed to new customer cohorts reaching larger basket sizes and a higher mix of club orders [40][41] Question: How is the company performing with non-grocery merchants? - The company is onboarding more non-grocery retailers, which is contributing to customer engagement and Instacart+ membership growth [44][46] Question: What are the trends in cohort behavior? - Cohorts are showing improved engagement, with strategies in place to deepen customer relationships and increase order frequency [50][51] Question: What is the outlook for take rates? - Take rates have expanded due to improved shopper efficiencies and increased order density, driven by the integration of marketplace and enterprise solutions [79][82]

SAN FRANCISCO, Aug. 6, 2024 /PRNewswire/ -- Instacart (NASDAQ: CART) today released financial results for its second quarter ended June 30, 2024. These financial results are available within Instacart's second quarter 2024 Shareholder Letter, which can be found on the company's Investor Relations website at https://investors.instacart.com/. Instacart management will host a conference call to discuss the company's results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today. To access a live webcast of t ...

Financial Performance - Q2 2024 achieved GTV of $8,194 million, a 10% increase year-over-year, with total revenue of $823 million, up 15% year-over-year[22] - Orders reached 70.8 million, reflecting a 7% increase year-over-year, while transaction revenue was $595 million, up 17% year-over-year[22] - Adjusted EBITDA rose to $208 million, an 89% increase year-over-year, representing 25% of total revenue[22] - Total revenue for Q2 24 reached $823 million, reflecting a 15% year-over-year growth, driven by GTV growth and increases in transaction and advertising revenue[23] - GAAP gross profit for Q2 24 was $623 million, an 18% increase year-over-year, representing 7.6% of GTV and 76% of total revenue[25] - GAAP net income for Q2 24 was $61 million, down $53 million year-over-year, primarily due to increased stock-based compensation[28] - Revenue for Q2 2024 reached $823 million, a 15% increase from $716 million in Q2 2023[52] - Gross profit for Q2 2024 was $623 million, up from $527 million in Q2 2023, reflecting an 18% growth[52] - Net income for Q2 2024 was $61 million, down from $114 million in Q2 2023, indicating a 46% decrease[52] User Engagement and Growth - Approximately 25 million people used Instacart's service over the past year, indicating significant user engagement potential[2] - Instacart added hundreds of thousands of restaurants through a partnership with Uber Eats, enhancing grocery selection and increasing order frequency[2] - Over 1 million business customers placed orders in the last year, with enterprise partnerships launched in Q2, indicating strong B2B growth potential[4] - The number of orders increased from 66.3 million in Q2 2023 to 70.8 million in Q2 2024, representing a growth of 6.8%[54] Advertising and Revenue Streams - Instacart's advertising revenue reached $228 million, up 11% year-over-year, representing 2.8% of GTV[22] - Advertising & other revenue for Q2 24 was $228 million, an 11% increase year-over-year, maintaining a consistent investment rate of 2.8% of GTV[24] Operational Efficiency - The "perfect order fill rate" improved by over 11 percentage points compared to 2022, marking nine consecutive quarters of year-over-year improvement[7] - Adjusted total operating expenses as a percent of GTV increased, indicating a rise in operational costs relative to revenue[46] - Total operating expenses for Q2 2024 were $571 million, compared to $408 million in Q2 2023, representing a 40% increase[52] - GAAP total operating expenses for Q2 24 were $571 million, representing 7.0% of GTV, up from 5.5% in Q2 23, largely due to stock-based compensation[27] Future Projections - The company expects Q3 24 GTV to be between $8,100 million and $8,250 million, indicating year-over-year growth of 8% to 10%[29] - Adjusted EBITDA guidance for Q3 24 is projected to be between $205 million and $215 million, reflecting year-over-year growth[29] Cash and Assets - Cash and cash equivalents as of June 30, 2024, were $1,434 million, a decrease from $2,137 million as of December 31, 2023[49] - Total current assets increased to $3,305 million as of June 30, 2024, compared to $2,585 million as of December 31, 2023[49] - Total liabilities as of June 30, 2024, were $806 million, slightly up from $800 million as of December 31, 2023[50] - The company reported an increase in accounts receivable, net, to $888 million as of June 30, 2024, from $853 million as of December 31, 2023[49] Research and Development - Research and development expenses for Q2 2024 were $185 million, a 42% increase from $130 million in Q2 2023[52] - Research and development expenses for Q2 2023 were $130 million, which surged to $1,850 million in Q2 2024, a substantial increase of 1,323%[55]

Instacart rolls out Connected Stores technologies across ALDI SOUTH Group stores in the U.S. and tests Caper Carts in Austria SAN FRANCISCO, Aug. 6, 2024 /PRNewswire/ -- Instacart (Nasdaq: CART), the leading grocery technology company in North America, and ALDI SOUTH Group, one of the fastest-growing grocers in the world, today announced the companies will expand their partnership globally. The partnership includes the rollout of Instacart's Connected Stores technologies across ALDI SOUTH Group stores in th ...

Davis Food & Drug partners with Instacart to enhance shopping experience with AI-powered smart carts SAN FRANCISCO and VERNAL, Utah, Aug. 1, 2024 /PRNewswire/ -- Davis Food & Drug, a prominent three-store grocery chain in Utah, and Instacart (NASDAQ: CART), the leading grocery technology company in North America, today announced a new partnership to replace the majority of its traditional shopping carts with Instacart's artificial intelligence-powered (AI) smart carts at all Davis Food & Drug locations in U ...

Instacart and Albertsons have updated their partnership for faster grocery deliveries across the U.S. The companies announced in a Wednesday (July 31) news release the launch of Instacart pickup services and Albertsons delivery for Albertson brands, including Safeway, Shaw's, Acme, Jewel-Osco, Randalls and Vons. In addition, Haggen Food & Pharmacy will be available on Instacart's app for same-day delivery, the companies said in the release, adding that the new offerings will give Instacart users more access ...

Haggen Food & Pharmacy now available for same-day delivery from Instacart SAN FRANCISCO and BOISE, Idaho, July 31, 2024 /PRNewswire/ -- Instacart (Nasdaq: CART), the leading grocery technology company in North America, and Albertsons Companies, Inc. (NYSE: ACI) today announce the launch of Instacart pickup services and Albertsons Rapid convenience delivery nationwide at banners* including Safeway, Albertsons, Shaw's, ACME, Jewel-Osco, Randalls and Vons. Additionally, Haggen Food & Pharmacy is now available ...

These solutions provide advertisers with flexible ways to reach consumers outside their traditional shopping aisles, promoting both brand discovery and conversion. Brands can pair their own products across different categories in their portfolio as well as with other brands to effectively merchandise around a theme or seasonal moment. This enables brands to reach consumers with a curated experience at a moment that might not be possible with their products alone. "Instacart's sponsored recipes have proven t ...

SAN FRANCISCO, July 16, 2024 /PRNewswire/ -- Instacart (NASDAQ: CART) today announced it will report its second quarter 2024 financial results after market close on Tuesday, August 6, 2024. The company's second quarter 2024 Shareholder Letter will be available on Instacart's Investor Relations website at https://investors.instacart.com. Instacart uses and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure ob ...

SAN FRANCISCO and KEASBEY, N.J., June 27, 2024 /PRNewswire/ -- Instacart (Nasdaq: CART), the leading grocery technology company in North America, and Wakefern Food Corp., the largest retailer-owned cooperative in the U.S., today announced the addition of more Caper Carts at Wakefern supermarket banners. Wakefern Food Corp. Expands Initial Program with Instacart; Customers Can Now Use AI-powered Smart Shopping Carts at Select Stores in the Philadelphia Area Caper Carts turn shopping into an adventure with an ...