Instacart reported better-than-expected Q3 results, supported by solid order growth and a refocused strategy under the leadership of its new CEO, Chris Rogers. Revenue grew 10% y-o-y to $939m, slightly above expectations, while EPS was 51 cents, slightly above the 49 cents expected. Gross transaction value (GTV) reached $9.17bn, up 10%, also surpassing FactSet's estimates.
In his first letter to shareholders, Rogers presented Instacart as an industry leader, emphasizing the expansion of its commercial partnerships, the development of its advertising ecosystem and the integration of new artificial intelligence-based tools. Order numbers increased by 14% to 83.4 million, although the average basket size declined by 4% due to an increase in meal orders and the elimination of delivery fees for small baskets for Instacart+ subscribers.
For the current quarter, Instacart anticipates GTV of $9.45bn to $9.6bn, representing annual growth of 9% to 11%, with EBITDA expected to between $285m and $295m. These forecasts take into account strong business in October, but also the effects of the government shutdown on the federal SNAP food assistance program. Net income was $144m, compared to $118m a year earlier. The company also plans to increase its share buyback program to $1.5bn, including an accelerated transaction of $250m. Instacart is now focusing on AI and customer loyalty to strengthen its lead in a highly competitive sector.
