Leadership Transition - Instacart has promoted Chris Rogers to CEO, effective August 15, replacing Fidji Simo who is moving to OpenAI [3][6] - Simo praised Rogers as "the right leader" for Instacart's next stage, highlighting his vision and operational excellence [4][6] Chris Rogers' Background - Rogers joined Instacart in 2019 after nearly 11 years at Apple, where he served as managing director for Apple Canada [5] - He has over 20 years of experience across consumer goods, technology, retail, and media, overseeing various functions at Instacart [5] Future Vision - Rogers expressed confidence in leading Instacart's next chapter, emphasizing the company's world-class team, deep partnerships, and leading technology [6] - Simo's new role at OpenAI will focus on scaling the company's traditional functions as it transitions into a new growth phase [7]

Core Insights - Instacart has appointed Chris Rogers as the new CEO, effective August 15, following the resignation of Fidji Simo, who will join OpenAI as CEO of Applications while remaining Chair of the Board at Instacart [1][4]. Company Leadership Transition - Chris Rogers, previously the Chief Business Officer, has extensive experience overseeing retailer relationships, ad sales, R&D, partnerships, and mergers & acquisitions at Instacart [2]. - Rogers joined Instacart in 2019 after nearly 11 years at Apple, where he served as Managing Director for Apple Canada, and he began his career at Procter and Gamble [2]. Vision and Strategy - Rogers emphasized Instacart's mission to transform grocery shopping and address everyday needs, highlighting the company's world-class team, deep partnerships, and leading technology [3]. - Under Rogers' leadership, Instacart will maintain its focus on growing opportunities for retailers and brands, as well as providing flexible earnings for shoppers on its platform [3][6]. Support from Previous Leadership - Fidji Simo expressed confidence in Rogers' ability to lead the company, noting his critical role in shaping Instacart and commitment to a smooth transition [4][6].

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 nearly 100,000 stores across the continent [6][7] - The company enables approximately 600,000 shoppers to earn by picking, packing, and delivering orders on a flexible schedule [6] Leadership Change - Chris Rogers has been appointed as the new Chief Executive Officer of Instacart, effective August 15, 2025, and will also join the Board of Directors [1] - Fidji Simo, the current CEO, will transition to the role of Chair of the Board, ensuring a smooth leadership transition [1][3] Chris Rogers' Background - Rogers has over 20 years of experience in consumer goods, technology, retail, and media, having joined Instacart in 2019 as Chief Business Officer [2] - Prior to Instacart, he spent nearly 11 years at Apple, where he served as Managing Director for Apple Canada, driving significant iPhone adoption [4] Company Vision and Strategy - The company aims to reshape the grocery industry by leveraging technology and deep partnerships, focusing on solving everyday needs for consumers [4] - Rogers emphasized the importance of a world-class team and a bold vision for the future, indicating a commitment to growth and innovation [4] Board Support - The Board of Directors expressed confidence in Rogers' leadership, highlighting the strong, mission-driven team at Instacart [4][3] - Lily Sarafan, Lead Independent Director, acknowledged Simo's contributions in transforming Instacart into a leading grocery technology platform [4]

Retail Sector Overview - U.S. retail sales grew 0.1% in April after a revised 1.7% increase in March, with a year-over-year rise of 5.2% [3] - Online store sales increased by 2% in April, while food services and drinking places saw a 1.2% rise [3] - The retail sector has shown resilience despite challenges from tariffs and consumer sentiment [4] Impact of Tariffs and Trade Deals - A temporary pause on tariffs was announced after the U.S. and China reached a trade truce, which is expected to benefit the retail sector [1][6] - The retail sector's growth was hindered by fears of tariffs, but upcoming trade deals may provide a boost [5] Inflation and Economic Outlook - U.S. consumer inflation showed signs of cooling, with the Consumer Price Index (CPI) rising 0.2% in April and 2.3% year-over-year, the smallest gain since February 2021 [7] - Lower inflation rates may lead to potential rate cuts by the Federal Reserve, which would positively impact the retail sector and the broader economy [8] Investment Opportunities in Retail Stocks - Recommended retail stocks include Maplebear Inc. (CART), PC Connection, Inc. (CNXN), Carvana Co. (CVNA), and Nordstrom, Inc. (JWN), all showing positive earnings estimate revisions [2] - Maplebear Inc. has an expected earnings growth rate of 7.6% for the current year, with a Zacks Rank of 2 [10] - PC Connection has an expected earnings growth rate of 6.8% for the current year, also holding a Zacks Rank of 2 [11] - Carvana Co. is projected to have over 100% earnings growth next year, with a Zacks Rank of 2 [13] - Nordstrom has an expected earnings growth rate of 1.8% for the current year, maintaining a Zacks Rank of 2 [15]

Summary of Instacart (CART) FY Conference Call - May 14, 2025 Company Overview - Instacart is a leading grocery technology company in North America, partnering with over 1,800 retail banners and powering enterprise storefronts for about 600 retail banners [3][5] Key Points and Arguments Leadership Transition - CEO Fiji Simo has stepped down, leaving a strong foundation for the company, with a management team that has been effective and a clear strategic vision [5][6] - The board intends to appoint an internal candidate as the new CEO, indicating confidence in the current strategy and financial discipline [6][7] Market Opportunity and Growth - Instacart is focused on driving online penetration in the grocery market, particularly in the large basket segment [8][9] - The company has experienced double-digit growth for several quarters, with a 10% growth in Gross Transaction Value (GTV) in 2024 [17][25] Consumer Behavior and Resilience - Instacart has not observed significant changes in consumer behavior despite macroeconomic challenges like inflation [13][15] - The convenience of grocery delivery remains a priority for consumers, even in recessionary environments [15][16] User Engagement and Retention - Strategies to attract new users include brand marketing and improving user engagement through incentives and enhanced platform features [19][20] - The company has improved its order quality, with a 15% increase in the perfect found and fill rate over the last three years [20][21] Partnerships and New Offerings - The partnership with Uber Eats has positively impacted user engagement and spending, with expectations for continued growth [27][29] - The introduction of a $10 minimum basket for Instacart Plus users aims to enhance accessibility and drive order frequency [30][31] Operational Efficiency - Instacart is focused on improving shopper efficiencies, utilizing technology to reduce order processing time and enhance customer experience [35][36] - The company has implemented AI in various operational aspects, improving logistics and personalizing consumer experiences [61][63] Financial Performance and Profitability - Instacart aims to maintain a transaction take rate between 6.5% and 7.5%, with fluctuations expected based on reinvestment strategies [44][45] - The company is committed to EBITDA growth and margin expansion while reinvesting in opportunities that drive long-term profitability [57][59] Advertising and Revenue Growth - Advertising revenue is expected to grow modestly faster than GTV, with a focus on building a robust advertising business [50][52] - The company is expanding its advertising capabilities and partnerships to enhance scale and effectiveness [53][54] Capital Allocation - Instacart has been opportunistic in its capital allocation, including significant stock buybacks, and plans to continue this approach moving forward [66][68] Additional Important Insights - The company is leveraging data to provide personalized shopping experiences, addressing dietary restrictions and preferences [64][65] - Instacart's operational capabilities allow for batching of orders, enhancing efficiency and cost-effectiveness [32][33] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Instacart's focus on growth, operational efficiency, and consumer engagement in the grocery technology sector.

Part I [Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited):) The unaudited Q1 2025 financial statements reflect increased total assets and operating cash flow, alongside revenue growth, despite a decline in net income [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached **$4.29 billion**, driven by increased cash, with liabilities and equity also rising Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,558 | $1,278 | | Total current assets | $2,873 | $2,697 | | Total assets | $4,292 | $4,115 | | **Liabilities & Equity** | | | | Total current liabilities | $887 | $798 | | Total liabilities | $928 | $836 | | Total stockholders' equity | $3,176 | $3,093 | | **Total liabilities, redeemable convertible preferred stock, and stockholders' equity** | $4,292 | $4,115 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue grew **9.4%** to **$897 million**, but increased operating expenses led to a **23.6%** drop in operating income and an **18.5%** decrease in net income Statement of Operations Summary (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | Change YoY | | :--- | :--- | :--- | :--- | | Revenue | $897 | $820 | +9.4% | | Gross Profit | $671 | $614 | +9.3% | | Income from Operations | $110 | $144 | -23.6% | | Net Income | $106 | $130 | -18.5% | | Diluted EPS | $0.37 | $0.43 | -14.0% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash from operations significantly increased to **$298 million**, with financing activities using **$46 million**, a substantial reduction from prior year repurchases Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $298 | $105 | | Net cash provided by investing activities | $1 | $13 | | Net cash used in financing activities | $(46) | $(750) | | Net increase (decrease) in cash | $254 | $(636) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, legal contingencies, and equity, highlighting revenue breakdown, share repurchases, and recent acquisition and CEO resignation Revenue Disaggregation (in millions) | Revenue Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Transaction | $650 | $603 | | Advertising and other | $247 | $217 | | **Total revenue** | **$897** | **$820** | - The company accrued a legal reserve balance of **$96 million** as of March 31, 2025, related to independent contractor misclassification claims and proceedings[256](index=256&type=chunk) - In June 2024, the board authorized a **$500 million** share repurchase program, later increased to **$750 million**. In Q1 2025, **2.4 million** shares were repurchased for **$94 million**, leaving **$218 million** available under the program[113](index=113&type=chunk) - Subsequent to the quarter end, on April 30, 2025, the company acquired Wynshop for approximately **$105 million** in cash. On May 7, 2025, CEO Fidji Simo announced her intent to resign, but will remain Chair of the Board[142](index=142&type=chunk)[143](index=143&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting **10%** GTV growth to **$9.1 billion**, **14%** order increase, and **23%** Adjusted EBITDA growth to **$244 million** [Key Financial and Operational Highlights](index=37&type=section&id=Key%20Financial%20and%20Operational%20Highlights) Q1 2025 saw strong operational growth with orders up **14%** to **83.2 million** and GTV up **10%** to **$9.1 billion**, driving revenue up **9%** and Adjusted EBITDA up **23%** Q1 2025 vs. Q1 2024 Key Metrics (in millions, except percentages) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Orders | 83.2 | 72.8 | +14% | | GTV | $9,122 | $8,319 | +10% | | Revenue | $897 | $820 | +9% | | Net Income | $106 | $130 | -18% | | Adjusted EBITDA | $244 | $198 | +23% | - The increase in orders was driven primarily by new customers and increased engagement of existing customers[153](index=153&type=chunk) - GTV growth was driven by the increase in orders, partially offset by a lower average order value[155](index=155&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Q1 2025 total revenue increased **9%** to **$897 million**, driven by transaction and advertising growth, but a **19%** rise in operating expenses, including legal accruals, led to a decline in operating income - Transaction revenue increased by **$47 million** (**8%**) in Q1 2025, driven by **10%** GTV growth, lower consumer incentives, and fulfillment efficiencies[188](index=188&type=chunk) - Advertising and other revenue grew by **$30 million** (**14%**) in Q1 2025, due to increased advertising volume and activity from brand partners[189](index=189&type=chunk) - General and administrative expenses increased by **$28 million** (**29%**), primarily due to a **$41 million** increase in accruals for legal matters and sales and indirect taxes[197](index=197&type=chunk) - Research and development expenses increased by **$29 million** (**25%**), mainly due to a net increase in compensation costs, which in Q1 2024 included a large benefit from the reversal of stock-based compensation for executive departures and restructuring[194](index=194&type=chunk) [Non-GAAP Financial Measures](index=46&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted EBITDA, which increased **23%** to **$244 million** in Q1 2025, with its margin improving to **27%** of revenue Reconciliation of Net Income to Adjusted EBITDA (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income** | **$106** | **$130** | | Provision for income taxes | 18 | 35 | | Interest income | (14) | (22) | | Depreciation and amortization expense | 19 | 12 | | Stock-based compensation expense | 66 | 9 | | Payroll taxes related to stock-based compensation | 10 | 13 | | Certain legal and regulatory accruals and settlements, net | 40 | 3 | | Reserves for sales and other indirect taxes, net | (1) | (1) | | Restructuring charges | — | 18 | | **Adjusted EBITDA** | **$244** | **$198** | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company maintained strong liquidity with **$1.6 billion** in cash and equivalents, **$298 million** net cash from operations, and repurchased **$94 million** in stock - As of March 31, 2025, the company held **$1.6 billion** in cash and cash equivalents and **$72 million** in marketable securities[227](index=227&type=chunk) - During Q1 2025, the company repurchased **2.4 million** shares of its common stock for an aggregate price of **$94 million** under its share repurchase program[113](index=113&type=chunk)[230](index=230&type=chunk) - Net cash provided by operating activities was **$298 million** for the three months ended March 31, 2025, a significant increase from **$105 million** in the prior-year period[234](index=234&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency, interest rates, and inflation, with inflation posing a more significant threat due to its potential impact on consumer demand and shopper availability - The company's primary market risks are identified as foreign currency exchange risk, interest rate risk, and inflation risk[244](index=244&type=chunk) - Inflation is a key risk, potentially leading to reduced consumer demand, lower order volumes, and smaller average order values as consumers face higher grocery costs and reduced discretionary income[248](index=248&type=chunk) - A hypothetical **10%** change in foreign currency exchange rates or interest rates would not have a material impact on the company's financial statements[245](index=245&type=chunk)[247](index=247&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[250](index=250&type=chunk) - There were no changes in internal control over financial reporting during Q1 2025 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[251](index=251&type=chunk) Part II [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company faces numerous legal proceedings, primarily related to shopper classification, with a **$96 million** legal reserve, and a pending securities class action lawsuit concerning its IPO - The company faces regular claims and government investigations challenging the classification of its shoppers as independent contractors rather than employees[254](index=254&type=chunk) - As of March 31, 2025, the company has accrued a legal reserve balance of **$96 million** related to these misclassification claims and proceedings[256](index=256&type=chunk) - A securities class action lawsuit was filed in January 2024 alleging violations of the Securities Act and Exchange Act in connection with the company's IPO. The company filed a motion to dismiss, which is pending[259](index=259&type=chunk)[87](index=87&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) The company identifies numerous risks, including limited operating history, dependence on customers and partners, intense competition, significant legal and regulatory challenges (especially shopper classification), technology failures, and macroeconomic pressures - **Business & Industry Risks:** - Historical growth may not be indicative of future performance - Failure to attract and retain customers, shoppers, and retail partners could harm the business - Intense competition from well-capitalized players like Amazon, Walmart, and DoorDash - A history of losses and potential inability to sustain profitability[264](index=264&type=chunk) - **Legal & Regulatory Risks:** - Successful legal challenges to the independent contractor status of shoppers could have adverse business, financial, and legal consequences - The business is subject to a complex and evolving web of laws, including those related to e-commerce, data privacy (CCPA, GDPR), and consumer protection[264](index=264&type=chunk)[378](index=378&type=chunk)[390](index=390&type=chunk) - **Operational & Technology Risks:** - Reliance on third-party payment processors, hosting providers (cloud services), and mobile operating systems (iOS, Android) - Potential for system interruptions, performance problems, or security breaches, which could disrupt operations and harm reputation - Risks associated with adopting and implementing new technologies like Artificial Intelligence (AIML)[323](index=323&type=chunk)[333](index=333&type=chunk)[429](index=429&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=109&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **2.405 million** shares for **$94 million** during Q1 2025 under its share repurchase program, with **$218 million** remaining available Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased (in thousands) | Average Price Paid Per Share | Approximate Dollar Value Remaining Under Program (in millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | $312 | | Feb 2025 | 121 | $41.26 | $307 | | Mar 2025 | 2,284 | $39.10 | $218 | | **Total** | **2,405** | | **$218** | [Other Information](index=110&type=section&id=Item%205.%20Other%20Information) CFO Emily Reuter adopted a Rule 10b5-1 trading plan on February 27, 2025, for the potential sale of up to **90,000** common shares through May 29, 2026 - On February 27, 2025, CFO Emily Reuter adopted a Rule 10b5-1 trading plan for the potential sale of up to **90,000** shares of common stock through May 29, 2026[488](index=488&type=chunk) [Exhibits](index=111&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and XBRL interactive data files - Key exhibits filed include corporate governance documents, CEO/CFO certifications under Sarbanes-Oxley, and XBRL data files[490](index=490&type=chunk)

Core Viewpoint - Maplebear (CART) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price in the near term [1][2]. Earnings Estimates - The upward trend in earnings estimate revisions reflects growing analyst optimism regarding Maplebear's earnings prospects, which correlates strongly with stock price movements [2]. - For the current quarter, Maplebear is expected to earn $0.37 per share, representing an 85% increase from the previous year's reported number [5]. - The Zacks Consensus Estimate for the current quarter has increased by 13.44% over the last 30 days, with eight estimates moving higher and one moving lower [5]. - For the full year, the company is expected to earn $1.70 per share, a 7.59% increase from the prior year [6]. - The consensus estimate for the current year has risen by 5.97% due to ten upward revisions compared to one negative revision [7]. Zacks Rank - Maplebear currently holds a Zacks Rank 2 (Buy), indicating promising estimate revisions and a favorable outlook for investors [8]. - The Zacks Rank system has a strong track record, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3]. Stock Performance - Maplebear shares have increased by 22.9% over the past four weeks, suggesting strong investor confidence in its earnings growth prospects [9].

Core Insights - Instacart is launching a new app called Fizz, aimed at Generation Z consumers, focusing on group orders for drinks and party snacks [1] - The app allows multiple users to contribute to a single order, pay individually, and have items delivered for a flat fee of $5 [1] - Fizz is designed to complement Instacart's existing services, with the expectation that younger users will transition to Instacart as their needs evolve [2] Company Strategy - The development of Fizz began at the start of the year, with partnerships established with grocery and liquor stores that already work with Instacart [3] - The introduction of Fizz is expected to attract more retailers to the Instacart platform [3] - Instacart recently reduced the minimum spend for free delivery from $35 to $10 for paid subscribers, which has led to increased user engagement [2] Industry Trends - Competitors like DoorDash and Uber are expanding their alcohol delivery services, with DoorDash reporting a 96% increase in ready-to-drink cocktail orders [4] - The trend indicates a growing interest among younger consumers in purchasing alcoholic beverages through subscription services [5] - Research shows that 39% of millennial consumers have utilized scheduled and auto-fill product subscriptions for their regular purchases, a figure higher than the overall consumer average of 31% [6]

Core Insights - Maplebear (CART) reported revenue of $897 million for the quarter ended March 2025, reflecting a year-over-year increase of 9.4% [1] - The earnings per share (EPS) for the quarter was $0.37, down from $0.43 in the same quarter last year, indicating a decline [1] - The revenue exceeded the Zacks Consensus Estimate by 0.16%, while the EPS fell short by 2.63% [1] Financial Performance Metrics - Gross Transaction Value (GTV) reached $9.12 billion, slightly above the average estimate of $9.08 billion from nine analysts [4] - Total orders amounted to 83.2 million, surpassing the average estimate of 80.62 million from seven analysts [4] - Revenue from advertising and other sources was $247 million, exceeding the average estimate of $241.02 million from nine analysts [4] - Revenue from transactions was $650 million, which was below the average estimate of $654.67 million from eight analysts [4] Stock Performance - Over the past month, Maplebear's shares have returned -1.5%, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Maplebear (CART) reported quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.38 per share, and showing a decline from $0.43 per share a year ago, indicating an earnings surprise of -2.63% [1] Financial Performance - The company posted revenues of $897 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.16% and increasing from $820 million year-over-year [2] - Over the last four quarters, Maplebear has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Maplebear shares have declined approximately 3.7% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The current Zacks Rank for Maplebear is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $892.43 million, and for the current fiscal year, it is $1.58 on revenues of $3.66 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Internet - Commerce industry, to which Maplebear belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]