Maplebear (US:CART)2025-02-25 21:07Financial Performance - Instacart achieved Q4 2024 orders and Gross Transaction Value (GTV) growth of 11% and 10% year-over-year, respectively[2]. - Total Gross Transaction Value (GTV) for FY 2024 was $33,461 million, representing a 10% year-over-year growth[43]. - Total revenue for FY 2024 reached $3,378 million, up 11% year-over-year, accounting for 10.1% of GTV[43]. - GAAP net income for FY 2024 was $457 million, reflecting a significant increase of $2,079 million year-over-year due to reduced stock-based compensation expenses[43]. - Adjusted EBITDA for FY 2024 was $885 million, up 38% year-over-year, representing 2.6% of GTV and 26% of total revenue[43]. - In Q4 2024, GTV was $8,645 million, a 10% increase year-over-year, with orders rising 11% to 77.5 million[48]. - Q4 2024 total revenue was $883 million, up 10% year-over-year, representing 10.2% of GTV[48]. - GAAP gross profit for Q4 2024 was $664 million, up 9% year-over-year, maintaining 7.7% of GTV[52]. - Advertising and other revenue in Q4 2024 was $267 million, reflecting a 10% year-over-year growth and consistent at 3.1% of GTV[50]. - Total revenue for Q4 2023 was $803 million, a decrease of 9% compared to $883 million in Q4 2024[91]. - Gross profit for Q4 2023 was $608 million, representing a gross margin of 75.8%[91]. - Net income for Q4 2023 was $135 million, compared to a net loss of $1,622 million in the previous year[91]. - Adjusted EBITDA for Q4 2023 was $199 million, with an adjusted EBITDA margin of 24.8%[95]. - Gross transaction value (GTV) for Q4 2023 was $7,891 million, an increase of 9.6% from $8,645 million in Q4 2024[95]. Customer Engagement and Growth Strategies - The company lowered the minimum basket size for $0 delivery fees from $35 to $10 for Instacart+ members, enhancing order frequency and GTV[5]. - Instacart has improved found and fill rates for 10 consecutive quarters, with nearly 10% of orders coming from stores using Carrot Tags software[6]. - Over 1,800 retail banners partner with Instacart, leading to the launch of over 30 new retailer sites in 2024, significantly increasing sales for upgraded retailers[8]. - Carrot Ads partnerships have expanded, with a 7X increase in retail media revenue for Schnucks after adopting Instacart's ad formats[9]. - The introduction of Family Accounts has led to larger basket sizes as customers shop together[25]. - Instacart's collaboration with OpenAI on the AI agent, Operator, aims to enhance customer convenience in ordering groceries[25]. - Instacart's ability to attract and increase engagement of customers and shoppers is critical for future growth, as highlighted in their forward-looking statements[68]. - The company emphasizes the importance of strategic partnerships and technological advancements in driving future growth and shareholder value[67]. - Instacart's management is focused on expanding capabilities and services to enhance customer experience and market presence[67]. Financial Position and Assets - As of December 31, 2024, Instacart's cash and cash equivalents increased to $2,137 million from $1,278 million in 2023, representing a growth of 67.3%[88]. - The total current assets of Instacart amounted to $2,697 million, a decrease from $3,305 million in the previous year[88]. - Instacart's total liabilities decreased to $800 million in 2024 from $836 million in 2023, reflecting a reduction of 4.3%[88]. - The accumulated deficit improved to $(2,635) million in 2024 compared to $(3,585) million in 2023, indicating a reduction of 26.4%[88]. - Instacart's total stockholders' equity increased to $3,750 million in 2024 from $3,093 million in 2023, marking a growth of 21.2%[88]. Operational Efficiency - The company defines Gross Transaction Value (GTV) as the value of products sold through Instacart, which includes customer tips and fees, indicating the health of the business[73]. - Adjusted EBITDA is used to assess performance, excluding various expenses, and is a key metric for evaluating operational efficiency[75]. - Operating expenses for Q4 2023 totaled $562 million, a decrease of 10% from $509 million in Q4 2024[91]. - Total operating expenses for the three months ended December 31, 2023, were $562 million, with a decrease to $470 million in the following quarter[102]. - Adjusted total operating expenses as a percent of GTV decreased from 7.1% in December 2023 to 5.6% in March 2024[102]. - Research and development expense for the three months ended December 31, 2023, was $205 million, with a reduction to $115 million in March 2024[102]. - Adjusted research and development expense as a percent of GTV decreased from 2.6% in December 2023 to 1.4% in March 2024[102]. - General and administrative expense was $107 million for the three months ended December 31, 2023, and decreased to $74 million in the following quarter[102]. - Adjusted general and administrative expense as a percent of GTV improved from 1.4% in December 2023 to 0.9% in March 2024[102]. - Sales and marketing expense for the three months ended December 31, 2023, was $60 million, increasing to $179 million in March 2024[102]. - Adjusted sales and marketing expense as a percent of GTV was 2.3% in December 2023, rising to 2.2% in March 2024[102]. - Cost of revenue for the three months ended December 31, 2023, was $185 million, with a slight increase to $206 million in March 2024[100]. - Adjusted cost of revenue as a percent of GTV remained stable at 2.5% across the quarters[100].