Financial Data and Key Metrics Changes - In Q1, 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 [11][12] - 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 [12][52] - GAAP net income was $106 million, a decrease of $24 million year over year, primarily due to the lapping of stock-based compensation reversals [12][13] - Adjusted EBITDA of $244 million exceeded guidance, growing 23% year over year [13] - Operating cash flow increased by $193 million year over year to $298 million, driven by strong operational performance [13] 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 [12][13] - The company reported a strong performance in its advertising segment, with over 7,000 brands onboarded and spending [21][22] Market Data and Key Metrics Changes - The company reached 98% of households in North America, with consistent customer engagement across geographies and income levels [6][11] - Demand remains robust across various use cases, including weekly grocery trips and higher frequency restaurant orders [6][11] Company Strategy and Development Direction - The company is focused on accelerating online grocery adoption and driving growth through deep retailer partnerships and innovative solutions [4][7] - The acquisition of Windshop is aimed at enhancing the company's enterprise strategy and powering storefronts for more retailers [7][49] - The company is leveraging AI to improve efficiency and customer experience, with 87% of code developed with AI assistance in Q1 [9] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainty, there have been no unexpected changes in consumer behavior [6][15] - The company expects Q2 GTV to be between $8.85 billion and $9 billion, representing year-over-year growth of 8% to 10% [15] - Management expressed confidence in the company's ability to navigate current macro conditions and continue to grow through uncertainty [15][16] Other Important Information - The company has approximately $1.8 billion in cash and similar assets on its balance sheet and has initiated a share buyback program [13][14] - The company continues to focus on affordability initiatives, including a $10 minimum basket for Instacart Plus members, which has led to increased order frequency and user engagement [40][41] 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 [21][22] 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 [27][28] Question: How do you ensure your ad platform works well for the long tail of ad buyers? - Management highlighted the development of self-serve tools and inspiration ads to enhance discovery for emerging brands [36][37] Question: Are you seeing any common themes in the type of retailers benefiting from small basket orders? - Management noted widespread growth across various retailers, with no specific trends identified [57] Question: How do you think about investments if the economy were to slow down? - Management emphasized a strong balance sheet and the ability to adjust investments based on market conditions [89][90]