Financial Data and Key Metrics Changes - In Q3 2025, orders reached 83.4 million, up 14% year over year, driving Gross Transaction Value (GTV) of $9.17 billion, up 10% year over year [22] - Average order value decreased by 4% year over year, primarily due to growth in restaurant orders and the introduction of a $10 basket minimum for Instacart+ members [22] - GAAP net income was $144 million, up 22% year over year, and adjusted EBITDA also grew 22% year over year to $278 million [23] - Operating cash flow increased by $102 million year over year to $287 million [23] - The company repurchased $67 million worth of shares in Q3 and ended the quarter with approximately $1.9 billion in cash and similar assets [23] Business Line Data and Key Metrics Changes - The marketplace continues to be the backbone of the business, with a growing and loyal customer base, leading to increased order frequency and customer retention [7][8] - Advertising and other revenue grew 10% year over year, representing 2.9% of GTV, which was effectively flat year over year [23] - The enterprise platform is a key growth driver, with over 350 retailer e-commerce storefronts powered by the company’s technology [10][14] Market Data and Key Metrics Changes - The company is seeing strong demand in October, with continued momentum from enterprise partnerships [24][52] - The advertising ecosystem has diversified, with partnerships established with platforms like TikTok and Pinterest, enhancing the overall advertising capabilities [16][44] Company Strategy and Development Direction - The company aims to enhance affordability, accelerate enterprise growth, and innovate in the advertising space [31][32][33] - The enterprise platform is seen as a strategic growth lever, with opportunities for cross-selling additional solutions to existing partners [14] - The company is focused on international expansion, particularly in Europe and Australia, leveraging existing products [19][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strength and the ability to drive sustainable growth in the short, medium, and long term [19][20] - The company is committed to disciplined execution and increasing profitability, with a guidance for Q4 adjusted EBITDA of $285-$295 million [25][26] - Management acknowledged the challenges in the macro environment but remains optimistic about returning advertising revenue to double-digit growth in 2026 [25][42] Other Important Information - The company launched a suite of AI products aimed at helping retailers gain a competitive advantage [12][13] - A $1.5 billion increase to the share repurchase program was authorized, reflecting confidence in long-term value creation [20][26] Q&A Session Summary Question: What are the biggest strategic investments for growth? - Management highlighted three focus areas: affordability, accelerating enterprise growth, and enhancing the advertising ecosystem [30][31][33] Question: How will AI solutions be monetized? - AI solutions will be offered as enterprise capabilities, enhancing operations and customer experiences for retail partners [40] Question: What is the impact of new partnerships and international growth plans? - New partnerships are expected to drive significant growth, with a disciplined approach to international expansion [49][50] Question: How does the competitive environment affect pricing strategies? - Management noted that retailers are aware of competitive dynamics and are testing price parity pilots to remain competitive [72] Question: What is the contribution of enterprise solutions to overall business? - Enterprise solutions are critical for order density and cost-to-serve advantages, reinforcing both marketplace and enterprise growth [78][80]