Financial Data and Key Metrics Changes - In Q1 2025, the company delivered Gross Transaction Value (GTV) at the top end of guidance, growing 10% year over year, driven by a 14% increase in orders, marking the strongest order growth in ten quarters [13][14] - Average order value decreased by 4% year over year due to the addition of restaurant orders and a reduction in minimum basket size for Instacart Plus members [14][57] - GAAP net income was $106 million, a decrease of $24 million year over year, primarily due to the lapping of stock-based compensation reversals [15] - Adjusted EBITDA reached $244 million, exceeding guidance and growing 23% year over year [16] - Operating cash flow increased by $193 million year over year to $298 million, driven by strong operational performance [16] Business Line Data and Key Metrics Changes - Advertising and other revenue increased by 14% year over year, outpacing GTV growth, with strong contributions from both large and emerging brand partners [14] - The company reported a consistent performance in its advertising trends, with over 7,000 brands onboarded and spending on the platform [25][81] Market Data and Key Metrics Changes - Customer engagement remains consistent across geographies and income levels, with the company reaching 98% of households in North America [8] - Demand is robust across various use cases, including weekly grocery trips and higher frequency restaurant orders [8] Company Strategy and Development Direction - The company is focused on accelerating online grocery adoption and has established itself as a category leader among digital-first players [5][6] - The acquisition of Windshop is aimed at enhancing the enterprise strategy and powering storefronts for more retailers [9][54] - The company is leveraging AI to improve operational efficiency, with 87% of code developed with AI assistance in Q1 [11] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainties, there have been no unexpected changes in consumer behavior through April [8] - The company expects Q2 GTV to be between $8.85 billion and $9 billion, representing year-over-year growth of 8% to 10% [17] - Management expressed confidence in the company's ability to navigate current macro conditions and continue to grow through uncertainty [18] Other Important Information - The company ended the quarter with approximately $1.8 billion in cash and similar assets, and recently used $105 million for the acquisition of Windshop [17] - The company has a remaining buyback capacity of $218 million after repurchasing $94 million worth of shares in Q1 [16] Q&A Session Summary Question: Can you unpack what you're seeing from both core CPG advertisers and the contribution from the longer tail? - Management reported strong Q1 performance driven by both large and emerging brands, with over 7,000 brands onboarded [25][26] Question: What changes are needed on the shopper end to economically execute the $10 minimum basket? - Management indicated that high order density allows for economic execution of the $10 minimum basket, increasing batching opportunities [31][32] Question: How do you ensure your ad platform works well for the long tail of ad buyers? - Management emphasized the development of self-serve tools for emerging brands and the launch of inspiration ads to enhance discovery [39][40] Question: Are you seeing any trade down or smaller basket sizes within the larger basket? - Management confirmed a 4% decline in average order value but noted that this was offset by continued strength in remaining basket sizes, indicating no trade down [57][58] Question: Can you provide more color on the type of volume growth you're seeing with restaurants? - Management stated that restaurant adoption is deepening, with customers using restaurant orders leading to more frequent grocery orders [64][70] Question: How do you think about investments if the economy were to slow down? - Management expressed confidence in the company's strong balance sheet and profitability, allowing for flexibility in investment decisions regardless of economic conditions [94][96]

[Letter to Shareholders](index=2&type=section&id=Letter%20to%20Shareholders) Instacart achieved strong Q1 2025 growth in orders and GTV, driven by strategic innovations and capital returns Q1 2025 Key Performance Indicators | Metric | Q1 2025 Value | Year-over-Year Growth | | :--- | :--- | :--- | | Orders | 83.2 million | 14% | | GTV | $9,122 million | 10% | | Net Income | $106 million | - | | Adjusted EBITDA | $244 million | - | - The company's strategy focuses on four consumer pillars: **convenience, affordability, quality, and selection**[4](index=4&type=chunk) - AI-driven innovations like **'Smart Shop'** and **'Store View'** are being implemented to enhance personalization and order quality[4](index=4&type=chunk)[6](index=6&type=chunk) - Instacart is expanding its enterprise solutions, highlighted by the recent acquisition of **Wynshop**, an e-commerce technology provider[7](index=7&type=chunk) - The advertising business is expanding through new tools like **'Universal Campaigns'** and partnerships, such as powering ads for **Uber Eats'** U.S. grocery marketplace[8](index=8&type=chunk)[9](index=9&type=chunk) - The company repurchased **$94 million** worth of shares in Q1 2025 and had **$218 million** remaining in its repurchase authorization as of March 31[10](index=10&type=chunk) [Business Updates](index=5&type=section&id=Business%20Updates) The company details operational progress across consumers, retailers, brands, and shoppers through AI, partnerships, and new tools [Consumers](index=5&type=section&id=Consumers) Instacart enhanced the consumer experience with AI-driven features, expanded partnerships, and new Instacart Business offerings - Launched **'Smart Shop'**, an AI technology that provides personalized recommendations based on shopping habits and preferences[12](index=12&type=chunk) - Piloted **'Second Store Check'** to fulfill out-of-stock items by sending a second shopper to a nearby store[12](index=12&type=chunk) - Partnered with **Chase** to offer benefits to various cardmembers, targeting customers who tend to have higher order frequency and basket sizes[12](index=12&type=chunk) - Expanded Instacart Business offerings with **'Will Call Delivery'** for same-day distributor orders and **'Pay-With-Invoice'** for streamlined payment management[12](index=12&type=chunk) [Retailers](index=6&type=section&id=Retailers) The company expanded its retailer network, strengthened enterprise offerings with the Wynshop acquisition, and deployed more in-store technology - New retailers joined the marketplace, including **Costco Business Centre (Canada)**, Dierbergs Markets, 1-800-Flowers, and soon, Pet Supplies Plus[13](index=13&type=chunk) - Acquired **Wynshop** to strengthen enterprise solutions and accelerate online growth for retail partners[13](index=13&type=chunk) - Deployed additional **Caper Carts** at Wakefern and Schnucks, and rolled out its **FoodStorm** catering solution in an additional 1,300 stores[13](index=13&type=chunk) [Brands](index=7&type=section&id=Brands) The advertising platform was upgraded with AI-powered campaigns and expanded its reach through a partnership with Uber Eats - Announced **'Universal Campaigns'**, an AI tool that allows brands to use a single budget that is automatically optimized across multiple ad formats[16](index=16&type=chunk) - Partnered with **Uber Eats** to power ads for its U.S. grocery and retail marketplace, expanding the reach of the Instacart Ads ecosystem[16](index=16&type=chunk) - Launched shoppable display ads on **Caper Carts**, enabling brands to access in-store advertising opportunities[16](index=16&type=chunk) [Shoppers](index=7&type=section&id=Shoppers) Instacart introduced a new quality score and is piloting new earnings opportunities to support its shopper community - Launched a new **shopping quality score**, a 90-day metric to give shoppers feedback and help them improve service[16](index=16&type=chunk) - Piloting new earning opportunities for shoppers, including **'Second Store Check'** tasks, **'Store View'** video tasks, and **'Will Call'** delivery tasks[16](index=16&type=chunk) [Product Pantry](index=8&type=section&id=Product%20Pantry) The company highlights two key AI-powered innovations: 'Smart Shop' for personalized shopping and 'Universal Campaigns' for optimized advertising - **Smart Shop** is an AI-powered technology that introduces features like customizable nutritional preferences and Health Tags to enhance personalization and simplify shopping[18](index=18&type=chunk) - **Universal Campaigns** is an AI-powered tool that helps brands create a single campaign with one budget, which is then automatically optimized across multiple ad formats in real-time[21](index=21&type=chunk) [Financial Performance and Outlook](index=9&type=section&id=Financial%20Performance%20and%20Outlook) The company reported strong Q1 2025 financial results with significant growth in GTV and Adjusted EBITDA, providing a positive outlook for Q2 [Q1 2025 Financial Highlights](index=9&type=section&id=Q1%2725%20Financial%20Highlights) In Q1 2025, GTV grew 10% and Adjusted EBITDA grew 23% year-over-year, though net income declined due to higher stock-based compensation Q1 2025 vs. Q1 2024 Financial Metrics | Metric | Q1 2025 | Q1 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | GTV | $9,122 M | $8,319 M | 10% | | Orders | 83.2 M | 72.8 M | 14% | | Total Revenue | $897 M | $820 M | 9% | | Transaction Revenue | $650 M | $603 M | 8% | | Advertising & Other Revenue | $247 M | $217 M | 14% | | GAAP Gross Profit | $671 M | $614 M | 9% | | GAAP Net Income | $106 M | $130 M | (18)% | | Adjusted EBITDA | $244 M | $198 M | 23% | - Average order value (AOV) **decreased by 4%** year-over-year to $110, primarily due to the inclusion of smaller restaurant orders and lower basket minimums[25](index=25&type=chunk) - Advertising & other revenue grew to **2.7% of GTV**, an increase of 10 basis points year-over-year, outpacing overall GTV growth[29](index=29&type=chunk) - The year-over-year increase in GAAP total operating expenses was primarily due to higher stock-based compensation (SBC), as Q1 2024 SBC was unusually low due to a **$95 million reversal**[34](index=34&type=chunk) [Q2 2025 Financial Outlook](index=12&type=section&id=Q2%2725%20Financial%20Outlook) The company forecasts continued GTV growth of 8% to 10% and strong Adjusted EBITDA between $240 million and $250 million for Q2 2025 Q2 2025 Guidance | Metric | Outlook | | :--- | :--- | | GTV | $8,850 - $9,000 million | | Adjusted EBITDA | $240 - $250 million | - The GTV outlook represents year-over-year growth of **8% to 10%**, with order growth expected to continue outpacing GTV growth[39](index=39&type=chunk) [Appendix: Definitions and Financial Statements](index=12&type=section&id=Appendix) This appendix provides forward-looking statements, definitions of key metrics, and detailed unaudited consolidated financial statements [Forward-Looking Statements](index=12&type=section&id=Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ [Key Business Metrics and Non-GAAP Financial Measures](index=13&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) This section defines key operational metrics like GTV and non-GAAP financial measures like Adjusted EBITDA - **Gross Transaction Value (GTV)** is defined as the value of products sold through Instacart, including taxes, fees, and customer tips[44](index=44&type=chunk) - **Adjusted EBITDA** is defined as net income adjusted for items including taxes, interest, depreciation & amortization, stock-based compensation, and certain other charges[47](index=47&type=chunk) [Condensed Consolidated Financial Statements](index=17&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited balance sheets, statements of operations, cash flows, and GAAP to non-GAAP reconciliations [Condensed Consolidated Balance Sheets](index=17&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $4.3 billion, with cash and cash equivalents increasing to $1.6 billion [Condensed Consolidated Statements of Operations](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, the company generated $897 million in revenue and $106 million in net income, or $0.37 per diluted share [Condensed Consolidated Statements of Cash Flows](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $298 million in Q1 2025, a significant increase from the prior year [Reconciliation of GAAP to Non-GAAP Results](index=20&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) This section reconciles Q1 2025 GAAP Net Income of $106 million to Adjusted EBITDA of $244 million

Grocery-delivery giant Instacart announced Thursday the acquisition of Wynshop, a provider of cloud-based e-commerce solutions for grocers. The deal will help Instacart improve its enterprise solutions, enabling retailers to enhance their online experiences.The company didn’t disclose deal terms.  Wynshop launched its platform in 2020 and provides online storefronts for grocers, working with clients such as Wakefern Food Corp. and Pattison Group. Its offerings range from real-time AI-powered personalizatio ...

Core Insights - Instacart has announced the acquisition of Wynshop, enhancing its relationships with retail partners and expanding its enterprise solutions to help retailers grow their businesses [1][2] - The acquisition aims to strengthen Instacart's offerings in e-commerce, advertising, fulfillment, and in-store solutions, ultimately improving the online experiences of retailers [2] Company Overview - Instacart is the leading grocery technology company in North America, partnering with over 1,800 retail banners to facilitate online shopping, delivery, and pickup services from more than 100,000 stores [4][5] - The company provides a suite of enterprise-grade technology products and services, including e-commerce solutions, advertising services, and tools for digitizing brick-and-mortar stores [5] Wynshop Integration - Wynshop will operate as a wholly owned subsidiary of Instacart, with plans to integrate its capabilities into Instacart's existing solutions over time [2] - The acquisition is expected to enhance Instacart's flagship e-commerce solution, Storefront Pro, which currently powers approximately 600 retail banners' white-label sites [2]

Almost every single company will face some sort of impact from tariffs and the escalation of the global trade war. Product and manufacturing companies will see the hit directly when they import products, and have a tough balancing choice toWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular co ...

SAN FRANCISCO, April 10, 2025 /PRNewswire/ -- Instacart (NASDAQ: CART) today announced it will report its first quarter 2025 financial results after market close on Thursday, May 1, 2025. The company's first quarter 2025 Shareholder Letter will be available on Instacart's Investor Relations website at https://investors.instacart.com. Instacart management will also host a conference call to discuss the company's results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Thursday, May 1. To access a live w ...

The family-owned grocer is now partnering with Instacart to offer delivery in as fast as an hour across Greater St. Louis and the Lake of the Ozarks, while streamlining order fulfillment through a new electronic shelf label integrationSAN FRANCISCO and ST. LOUIS, April 8, 2025 /PRNewswire/ -- Instacart (NASDAQ: CART), the leading grocery technology company in North America, and Dierbergs Markets, a 27-store independent grocer headquartered near St. Louis, Missouri today announced a new partnership to offer ...

Instacart unveiled three new features that it said will increase the chances its customers will get the items they order.In the future, these features will also help Instacart’s partner retailers and brands get real-time information about whether products are on the shelves, the online grocery marketplace said in a Thursday (March 27) blog post.With one new feature, Store View, Instacart shoppers will be able to earn more by taking videos of store shelves, Instacart’s artificial intelligence and computer vi ...

Beginning in April, new and existing shoppable display campaigns will seamlessly extend across the Instacart Marketplace and in-store on the Caper Cart digital screens with no additional work required from brand partners. Caper Cart ads are inventory- and aisle-aware, which means that ad campaigns will only extend to carts when consumers are in relevant aisles and where items are in stock. For example, Diana's Bananas can launch an Easter campaign through Instacart Ads Manager, showcasing its various flavor ...

New automation tools help brands of all sizes create high-performing ad campaigns on Instacart SAN FRANCISCO, March 20, 2025 /PRNewswire/ -- Instacart (NASDAQ: CART), the leading grocery technology company in North America, today announced a suite of new AI-powered automation tools designed to drive ad campaign performance and help brands of all sizes achieve their business goals. Brands have begun to test this approach to campaign management. Rescue Dog Wines drove an increase in new-to-brand sales while p ...