NASDAQ$CART

Instacart · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Instacart's GTV and orders grew, with revenue and gross profit increasing, driven by fulfillment efficiencies and advertising performance.

Instacart's Q3 2023 results showed growth in GTV, orders, revenue, and gross profit. While the company reported a GAAP net loss due to stock-based compensation expenses related to its IPO, adjusted EBITDA increased significantly. The company is focused on profitable growth and investing in technology and products.

  • GTV grew to $7,494 million, a 6% year-over-year increase.
  • Orders increased to 66.2 million, up 4% year-over-year.
  • Total revenue reached $764 million, reflecting a 14% year-over-year growth.
  • Adjusted EBITDA rose to $163 million, a 120% year-over-year increase.

Headline financials

Total Revenue

$764M

Previous: $1.79B-57.4%
EPS (adj)

-$20.86

Previous: -$0.52-3911.5%
Orders

66.2M

Previous: 63.8M+3.8%
Gross Transaction Value

$7.49B

Previous: $7.08B+5.8%
Capital Expenditures

-$38M

Previous: $21M-281.0%
Free Cash Flow

-$2.04B

Previous: $207M-1084.1%
Net Income

-$2B

Previous: $36M-5652.8%
Operating Income

-$2.46B

Previous: $33M-7545.5%
Gross Profit

$561M

Previous: $485M+15.7%
Cash & Equivalents

$2.2B

Previous: $1.47B+49.5%
Total Assets

$4.42B

No prior period
R&D Expense

$1.85B

No prior period
Stock-Based Comp

$2.61B

Previous: $23M+11226.1%

Revenue & EPS history

Instacart · Revenue · Quarterly

$764M

Q3 2023-57.4%vs Q3 2022
Beat estimate in 5 of 10 quarters(50%)
ActualEstimate

Revenue by segment

Instacart · $764M total across 2 segments · Q3 2023

  • Transaction Revenue
    $542M+11.8%
  • Advertising & Other
    $222M+18.7%

Forward guidance

In Q4 2023, Instacart anticipates year-over-year GTV growth to be in the 5-6% range, with orders growth driving the composition and adjusted EBITDA of $165 million to $175 million. The primary driver of adjusted EBIDTA growth is expected to be sequential growth in advertising & other revenue because of seasonality.

Tailwinds

  • Year-over-year GTV growth to remain in the 5-6% range
  • Growth to continue to be driven more by orders growth than AOV growth as inflation wanes year-over-year
  • Expand adjusted EBITDA quarter-over-quarter and year-over-year
  • Adjusted EBITDA of $165 million to $175 million
  • Primary driver of expansion to be sequential growth in advertising & other revenue because of seasonality

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 14 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.5%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+3.7%

Avg return

30 days after

50%

7 / 14 earnings

Positive

+13.5%

Q1 2025

Best reaction

-14.0%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-2.8%+2.6%
Q4 2025+9.2%+9.2%+15.0%
Q3 2025+1.6%+11.7%+18.3%
Q1 2025+13.5%+14.9%+14.7%
Q4 2024-12.3%-20.3%-18.6%
Q3 2024-9.9%-12.0%-12.3%
Q2 2023+0.7%-0.9%+5.9%
Q2 2024+3.9%+2.5%+11.3%
Q1 2024-3.8%-7.4%-12.1%
Q4 2021-0.2%+2.0%+12.5%
Q4 2023-0.2%-2.2%+30.5%
Q4 2022+2.7%+0.2%-1.3%
Q3 2022+2.7%+0.2%-1.3%
Q3 2023-14.0%-10.2%-14.2%
Q1 2023
Q2 2022
Q1 2022
Q3 2021
Q2 2021
Q1 2021

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