Canseco's Market, Harps Foods and Price Chopper join more than 600 grocers using Instacart Storefront to power their e-commerce websites SAN FRANCISCO, March 6, 2024 /PRNewswire/ -- Instacart (Nasdaq: CART), the leading grocery technology company in North America, today announced new retailers using Instacart Storefront to power their e-commerce websites, including Canseco's Market, Harps Foods, and Price Chopper. Instacart Storefront is an easy and affordable way for grocers of all sizes to get online and ...

Growth and Revenue Trends - The company has experienced rapid growth and operational expansion, but historical growth rates may not continue in the future [88]. - Growth rates have decreased since the COVID-19 pandemic, with a significant impact on demand for online grocery shopping [89]. - The company expects fluctuations in revenue, margin, and profitability due to external factors and strategic initiatives [92]. - Advertising revenue growth has fluctuated and is expected to continue fluctuating due to macroeconomic conditions [92]. - The company is facing challenges due to inflation and reduced consumer discretionary spending, which have negatively impacted average order values and overall revenue [107]. - The company anticipates that economic conditions may lead to fluctuations in average order values and overall demand for its services [107]. - The company is experiencing lower growth in gross transaction value (GTV) and orders due to inflationary pressures and reduced consumer discretionary spending [213]. Financial Performance - The company reported a net income of $428 million for the year ended December 31, 2022, but experienced a net loss of $1,622 million for the year ended December 31, 2023, primarily due to stock-based compensation expenses [101]. - As of December 31, 2023, the company had an accumulated deficit of $2,635 million, indicating the need to sustain or increase revenue while managing costs to achieve profitability [101]. - Revenue for the year ended December 31, 2023, was $3,042 million, representing a 19% increase from $2,551 million in 2022 [190]. - Gross profit for 2023 was $2,278 million, up from $1,831 million in 2022, indicating a gross margin improvement [190]. - Operating expenses surged to $4,420 million in 2023, compared to $1,769 million in 2022, primarily driven by increased research and development costs [190]. - Net loss attributable to common stockholders for 2023 was $1,624 million, a significant increase from a net income of $77 million in 2022 [190]. - The weighted-average shares used in computing net loss per share attributable to common stockholders, diluted, increased to 130,616 thousand in 2023 from 101,480 thousand in 2022 [190]. Strategic Initiatives and Investments - The company is investing in new technologies and offerings, which may initially harm profitability but aim for long-term gains [93]. - Increased sales and marketing expenses are anticipated as the company seeks to engage customers and expand its market presence [93]. - The company aims to increase the adoption of its Instacart+ membership program to drive customer engagement and revenue growth [100]. - The company has invested heavily in Instacart Ads, growing its number of brand partners, which is expected to enhance revenue generation [105]. - The company is focusing on strategic initiatives such as Instacart Health and Instacart Business to broaden its market scope [105]. Market and Economic Challenges - Macroeconomic factors such as inflation and elevated interest rates have adversely affected customer retention and engagement [89]. - The company faces challenges in accurately forecasting revenue and managing operating expenses for future growth [90]. - The trading price of the company's common stock may be adversely affected if GTV or revenue growth rates decline [91]. - The company is navigating significant regulatory changes and economic uncertainties that could impact its operations [98]. - The company has limited experience operating at its current scale in a volatile macroeconomic environment, which poses risks to future growth and profitability [107]. - The company may need to reintroduce shopper incentives to ensure sufficient availability of shoppers in response to persistent shortages [213]. Cash and Financial Position - As of December 31, 2023, cash and cash equivalents totaled $2,137 million, with marketable securities of $49 million [180]. - The company has not entered into derivative or hedging transactions related to foreign currency exchange rates, as fluctuations have not materially impacted financial statements [179]. - A hypothetical 10% increase or decrease in interest rates would not have had a material impact on the consolidated financial statements as of December 31, 2023 [180]. Marketing and Customer Engagement - The company emphasizes the importance of effective marketing strategies to acquire new customers and increase engagement with existing ones [108].

Shares of Maplebear (CART) have gained 2.9% over the past four weeks to close the last trading session at $26.77, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $34.56 indicates a potential upside of 29.1%.The mean estimate comprises 16 short-term price targets with a standard deviation of $5.91. While the lowest estimate of $26 indicates a 2.9% decline from the current price l ...

Instacart (NASDAQ:CART) announced Tuesday it plans to lay off about 250 employees, amounting to roughly 7% of its workforce, as part of a restructuring effort. So, what do you need to know about Instacart layoffs?Well, the grocery delivery company stated its layoffs are mostly targeting middle management, creating a less vertical organizational structure. Additionally, the company hopes to have its teams more concentrated on large-scale projects.According to the press release, the company’s three executives ...

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Instacart (NASDAQ:CART), the grocery delivery giant, is cutting 250 jobs, or 7% of its workforce, to concentrate on more “promising” initiatives as it attempts to drive upward momentum into the share price. An uptick in grocery orders led the group to increase its forecast for both its first-quarter gross transaction value (GTV) and core profit, the business said in its fourth-quarter update. Despite this positive outlook, shares fell around 3% lower in pre-market trading after revenue came in lower than ex ...

Financial Data and Key Metrics Changes - The company announced a restructuring plan with an expected one-time charge of $19 million to $24 million, which will not impact adjusted operating expenses but will result in cash outlays [1] - For Q1, the company expects adjusted EBITDA of $150 million to $160 million, influenced by seasonally lower advertising revenue and continued investments in marketing [2] - The company anticipates GAAP profitability and positive operating cash flow, increasing its share repurchase program by an additional $500 million, bringing total capacity to approximately $930 million [4] Business Line Data and Key Metrics Changes - The company reported that GTV growth has accelerated for three consecutive quarters, guiding for a fourth consecutive quarter of accelerating growth in Q1 [5] - Priority orders now account for 38% of total orders, with 25% delivered in 30 minutes or less, reflecting a focus on convenience [14][15] Market Data and Key Metrics Changes - The company continues to expand its retail partnerships, with 1,500 retail banners and 85,000 locations, maintaining a leading position in grocery market selection [37] - The company is seeing improvements in mature cohorts, with declines improving from double-digits to single-digits over the past year [9][10] Company Strategy and Development Direction - The company is focused on driving profitable growth and increasing value for partners, teams, and shareholders [5] - The management emphasized the importance of convenience in driving growth, particularly through priority orders and various delivery options [17][19] - The company is committed to reshaping its organization to streamline operations and focus on growth initiatives [33][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing their strategy, expecting adjusted EBITDA to increase year-over-year in both absolute dollar terms and as a percentage of GTV [2][3] - The management noted that while EBT SNAP is not expected to see favorable comps in Q1, they anticipate growth in their EBT business through new partnerships [24] - The management highlighted the importance of order quality and customer retention as key factors for success in the online grocery market [136] Other Important Information - The company has revamped its incentive system to better target customers and drive retention [25][59] - The management is optimistic about the potential of off-platform advertising and partnerships with major companies like Google and Roku [108][109] Q&A Session Summary Question: Trends among 2020 and 2021 cohorts - Management noted that mature cohorts continue to decline but at an improving rate, with new cohorts performing better than pre-pandemic levels [9][11] Question: Growth of priority orders - Management attributed the growth in priority orders to convenience, with plans to test different fee levels to enhance service [17][18] Question: Supply and demand in the marketplace - Management confirmed that they are the category leader in selection, with ongoing efforts to deepen partnerships and expand offerings [31][37] Question: Advertising revenue trends - Management indicated that advertising revenue typically lags GTV growth, with recent underwhelming GTV growth impacting advertising budgets [65][66] Question: User growth and customer acquisition strategy - Management emphasized the importance of acquiring new customers and re-engaging existing ones, with a focus on long-term growth strategies [56][145] Question: AOV trends and inflation impact - Management reported stable basket sizes in 2023 compared to 2022, with AOV growth impacted by external factors like inflation [149][150]

Even as Instacart is undergoing major layoffs to cut costs, the company continues to invest in fully digitizing the physical store to boost omnichannel efficiency.CEO Fidji Simo said in a Tuesday (Feb. 13) letter to shareholders discussing the company’s fourth-quarter 2023 financial results that Instacart is laying off hundreds of employees in an effort to cut costs and boost margins.“Today, we made the tough decision to part with approximately 250 of our talented team members,” Simo stated. “This will allo ...

Instacart said Tuesday it plans to cut 250 jobs, or about 7% of its workforce, to focus on “promising” initiatives. However, shares of Instacart, formally known as Maplebear, were down about 10% in extended trading after the company missed fourth-quarter revenue estimates.The grocery-delivery firm joins several US and Canadian firms that have been laying off thousands of employees as they scramble to reduce costs amid an uncertain macroeconomic environment.“This (job cuts) will allow us to reshape the comp ...

Grocery-delivery giant Instacart announced today that it’s laying off around 250 employees, or roughly 7% of its global workforce, as part of a restructuring. Instacart CEO Fidji Simo said in a letter to investors that the layoffs will allow the company to streamline how it operates. The company announced the layoffs alongside the release of its fourth-quarter earnings.“Today, we made the tough decision to part with approximately 250 of our talented team members,” Simo wrote in the letter. “This will allow ...