Financial Data and Key Metrics Changes - The company reported a Gross Transaction Value (GTV) growth of 11% year over year, driven by a 17% increase in orders, although the average order value decreased by 5% year over year [20][22] - GAAP net income reached $116 million, up 92% year over year, while adjusted EBITDA was $262 million, reflecting a 26% year over year increase [22][24] - Stock-based compensation increased to $105 million, up $39 million quarter over quarter, with expectations for a decrease in Q3 [23][24] Business Line Data and Key Metrics Changes - Advertising and other revenue grew by 12% year over year, remaining flat at 2.8% of GTV, indicating resilience despite a pullback from one of the largest brand partners [21][22] - The company has scaled advertising revenue to over $1 billion in annual run rate, increasing the number of active brand partners from 4,000 to over 7,500 [13][22] Market Data and Key Metrics Changes - The company continues to lead in share of sales among digital-first players, with its share being more than three times larger than the next competitor [11][12] - The company is seeing strong user growth and higher order frequency, particularly among new customers acquired in 2025 [8][31] Company Strategy and Development Direction - The company is focused on enhancing its interconnected ecosystem, which allows for scalable tools that help retailers innovate and compete [10][11] - The strategy includes deepening retail partnerships and expanding into new categories, such as alcohol and restaurant orders through partnerships like Uber Eats [30][31] - The company aims to maintain its leadership position by meeting customers' full grocery needs, particularly in the big basket segment [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the strength of its operating model and the ability to deliver value for retailers and customers [13][25] - The leadership transition to Chris Rogers as the new CEO is seen as a positive step for the company's future growth [17][18] Other Important Information - The company has made strategic acquisitions to enhance its enterprise offerings and has repurchased over $1.6 billion worth of shares [15][24] - AI technology is integrated into the company's operations, with over 80% of code deployed in Q2 being AI-assisted [16] Q&A Session Summary Question: Competitive landscape and supply improvements - Management discussed the importance of onboarding more retailers and deepening existing partnerships to enhance supply and improve conversion rates [28][30] Question: Growth composition between grocery and restaurants - Management clarified that the addition of restaurant orders has contributed to overall order growth, with expectations for moderation in Q3 [34][36] Question: Interest in the Instacart platform and enterprise pipeline - Management highlighted the focus on Storefront Pro and the ability to upsell additional services to existing retailers [44][46] Question: CPG environment and advertising outlook - Management noted ongoing uncertainty in the CPG environment but emphasized the resilience of their advertising revenue and the potential for emerging brands to gain market share [52][56] Question: Affordability initiatives and customer retention - Management explained that their affordability strategy is broad-based and includes various initiatives to enhance customer retention and engagement [103][106]

Financial Data and Key Metrics Changes - The company reported a Gross Transaction Value (GTV) growth of 11% year over year, driven by a 17% increase in orders, despite a 5% decrease in average order value [18][20] - GAAP net income reached $116 million, up 92% year over year, while adjusted EBITDA was $262 million, reflecting a 26% year over year increase [20] - Stock-based compensation increased to $105 million, up $39 million quarter over quarter, with expectations for a decrease in Q3 [21] Business Line Data and Key Metrics Changes - Advertising and other revenue grew by 12% year over year, remaining flat at 2.8% of GTV, indicating resilience in the advertising platform [19][20] - The company has scaled advertising revenue to over $1 billion in annual run rate, increasing the number of active brand partners from 4,000 to over 7,500 [12] Market Data and Key Metrics Changes - The company continues to lead in share of sales among digital-first players, with its share being more than three times larger than the next competitor [10] - The company is onboarding new storefront partners at an accelerated pace, with 40 net new retailers added this year compared to 30 last year [28] Company Strategy and Development Direction - The company is focused on enhancing its interconnected ecosystem, which allows for scalable tools that help retailers innovate and compete [9] - The strategy includes deepening retail partnerships and expanding into new categories, such as alcohol and restaurant orders, to drive user growth and order frequency [28][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to remain a category leader despite competitive pressures, citing strong retention rates among new customers [12][29] - The company anticipates GTV for Q3 to range between $9 billion and $9.15 billion, reflecting year-over-year growth of 8% to 10% [22] Other Important Information - The company has made significant investments in AI, with over 80% of code deployed in Q2 being AI-assisted, which has improved operational efficiency [14] - The company has bought back over $1.6 billion worth of shares, demonstrating confidence in its execution capabilities [13] Q&A Session Summary Question: Comments on competitive landscape and consumer behavior - Management highlighted the importance of onboarding more retailers and deepening existing partnerships to drive growth and improve customer retention [27] Question: Composition of order growth between grocery and restaurants - Management noted that the addition of restaurant orders has contributed to higher order frequency, but they expect some moderation in growth as they lap the first full quarter of restaurant contributions [33][34] Question: Interest in the Instacart platform and enterprise pipeline - Management emphasized the focus on Storefront Pro and the ability to upsell additional services to existing retailers, indicating strong interest in their enterprise solutions [42][45] Question: Update on advertising revenue and CPG environment - Management acknowledged ongoing uncertainty in the CPG environment but noted that emerging brands are gaining share, which is beneficial for the advertising business [52][56] Question: Affordability initiatives and customer retention - Management clarified that their affordability strategy is broad-based and includes various initiatives beyond just lowering the minimum basket size, which has allowed for overall GTV growth [105] Question: Gains from batching and AI efficiency - Management discussed how gains from batching have allowed for reinvestment in customer incentives and operational efficiencies, with no immediate plans to impact OpEx from AI deployment [72][76]

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]

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]