Maplebear (CART) - 2025 Q1 - Quarterly Results

Letter to Shareholders 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] - AI-driven innovations like 'Smart Shop' and 'Store View' are being implemented to enhance personalization and order quality[4][6] - Instacart is expanding its enterprise solutions, highlighted by the recent acquisition of Wynshop, an e-commerce technology provider[7] - 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][9] - 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] Business Updates The company details operational progress across consumers, retailers, brands, and shoppers through AI, partnerships, and new tools 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] - Piloted 'Second Store Check' to fulfill out-of-stock items by sending a second shopper to a nearby store[12] - Partnered with Chase to offer benefits to various cardmembers, targeting customers who tend to have higher order frequency and basket sizes[12] - Expanded Instacart Business offerings with 'Will Call Delivery' for same-day distributor orders and 'Pay-With-Invoice' for streamlined payment management[12] 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] - Acquired Wynshop to strengthen enterprise solutions and accelerate online growth for retail partners[13] - Deployed additional Caper Carts at Wakefern and Schnucks, and rolled out its FoodStorm catering solution in an additional 1,300 stores[13] 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] - Partnered with Uber Eats to power ads for its U.S. grocery and retail marketplace, expanding the reach of the Instacart Ads ecosystem[16] - Launched shoppable display ads on Caper Carts, enabling brands to access in-store advertising opportunities[16] 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] - Piloting new earning opportunities for shoppers, including 'Second Store Check' tasks, 'Store View' video tasks, and 'Will Call' delivery tasks[16] Product Pantry 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] - 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] Financial Performance and Outlook 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 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] - Advertising & other revenue grew to 2.7% of GTV, an increase of 10 basis points year-over-year, outpacing overall GTV growth[29] - 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] Q2 2025 Financial Outlook 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] Appendix: Definitions and Financial Statements This appendix provides forward-looking statements, definitions of key metrics, and detailed unaudited consolidated financial statements Forward-Looking Statements 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 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] - Adjusted EBITDA is defined as net income adjusted for items including taxes, interest, depreciation & amortization, stock-based compensation, and certain other charges[47] Condensed Consolidated Financial Statements This section presents the unaudited balance sheets, statements of operations, cash flows, and GAAP to non-GAAP reconciliations Condensed Consolidated Balance Sheets 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 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 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 This section reconciles Q1 2025 GAAP Net Income of $106 million to Adjusted EBITDA of $244 million