NASDAQ$CART

Instacart · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Instacart demonstrated ongoing momentum with solid Q4 results, featuring order and GTV growth and expanding profitability.

Instacart's Q4 2023 results showed solid growth in orders and GTV, along with expanding profitability. The company increased its share of sales in both small and large baskets compared to other digital-first platforms. They anticipate a strong start to 2024 with accelerated GTV growth.

  • Delivered consistently high-quality service during the holiday season.
  • Improved affordability by increasing marketplace loyalty and club membership-linked orders 30% year-over-year.
  • Made holiday gifting easier with our first-ever “Deal Week” in December.
  • Launched SNAP with all Kroger banners and Costco nationwide.

Headline financials

Total Revenue

$803M

Previous: $757M+6.1%
EPS (adj)

$0.44

Previous: $1.60-72.5%
Orders

70.1M

Previous: 66.5M+5.4%
Gross Transaction Value

$7.89B

Previous: $7.39B+6.8%
Capital Expenditures

-$18M

Previous: $3M-700.0%
Net Income

$135M

Previous: $466M-71.0%
Operating Income

$46M

Previous: $102M-54.9%
Gross Profit

$608M

Previous: $577M+5.4%
R&D Expense

$205M

No prior period
Stock-Based Comp

$142M

Previous: $10M+1320.0%

Revenue & EPS history

Instacart · Revenue · Quarterly

$803M

Q4 2023+6.1%vs Q4 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

Instacart anticipates GTV to be between $8.0 billion and $8.2 billion, representing year-over-year growth of 7% to 10%. Adjusted EBITDA is expected to be $150 million to $160 million, representing 1.9% to 2.0% of GTV.

Tailwinds

  • GTV growth to be driven more by orders growth than AOV growth.
  • Outlook includes the added benefit of leap day.
  • Outlook includes the benefit of seasonality.
  • Continued spend on marketing.
  • Continued spend on consumer incentives to drive profitable long-term growth.

Headwinds

  • Seasonally lower advertising & other revenue.
  • Uncertainty regarding reconciling items such as stock-based compensation.
  • Uncertainty regarding reconciling items such as certain legal and regulatory accruals and settlements.
  • Uncertainty regarding reconciling items such as reserves for sales and other indirect taxes.
  • These reconciling items could have a significant effect on future GAAP results.

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 Q4 2023

Historical avgQ4 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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