Instacart Shares Surge 14% After Strong Q4 Results and Positive Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy CART?
Source: CNBC
- Earnings Beat: Instacart reported fourth-quarter revenue of $992 million, exceeding the $974 million estimate and reflecting a 12% year-over-year growth, indicating strong performance in a competitive grocery delivery market.
- Profitability Improvement: The company posted a net income of $81 million, or 30 cents per share, which fell short of the expected 52 cents; however, adjusted EBITDA reached $303 million, surpassing the $292 million forecast, showcasing enhanced operational efficiency.
- Transaction Value Growth: Instacart's gross transaction value hit $9.85 billion, a 14% increase year-over-year, exceeding the $9.54 billion estimate and marking the strongest growth quarter for this metric in three years, highlighting robust market demand.
- Positive Future Outlook: The company anticipates gross transaction value in the range of $10.13 billion to $10.28 billion for the first quarter, ahead of the $9.97 billion estimate, while adjusted EBITDA is expected between $280 million and $290 million, indicating ongoing growth potential.
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Analyst Views on CART
Wall Street analysts forecast CART stock price to rise
22 Analyst Rating
13 Buy
8 Hold
1 Sell
Moderate Buy
Current: 33.240
Low
40.00
Averages
51.62
High
66.00
Current: 33.240
Low
40.00
Averages
51.62
High
66.00
About CART
Maplebear Inc., doing business as Instacart, is a grocery technology company in North America, works with grocers and retailers to transform how people shop. The Company partners with more than 1,800 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 100,000 stores across North America on the Instacart Marketplace. The Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights. With Instacart Ads, thousands of consumer-packaged goods (CPG) brands - from category leaders to emerging brands - partner with the Company to connect directly with consumers online, right at the point of purchase. The Company, through its Instacart Health, provides tools to increase nutrition security and make healthy choices easier for consumers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Execution Acceleration: Maplebear Inc is leveraging AI to boost average output per engineer by nearly 40% and accelerate new project development four times faster, a strategy that will significantly enhance operational efficiency and market competitiveness.
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See More
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- Advertising Revenue Boost: The company's advertising and other revenue rose 10% to $294 million, reflecting a growing number of businesses leveraging its advertising tools to attract customers, thereby enhancing revenue diversification and market competitiveness.
- Optimistic Future Outlook: Instacart anticipates GTV growth of 11% to 13% in Q1, reaching approximately $10.2 billion, while adjusted EBITDA is projected to increase by 15% to 19% to around $285 million, showcasing the company's confidence in sustaining profitable growth.
- Strengthened Market Position: With its marketplace now encompassing 2,200 retail brands and nearly 100,000 store locations, and many orders delivered within 30 minutes, Instacart further solidifies its leadership in the rapidly growing food delivery market.
See More
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- Transaction Volume Growth: Instacart's gross transaction volume (GTV) surged 14% year-over-year to $9.9 billion in Q4, driving a 13% increase in transaction revenue to $698 million, showcasing the platform's strong consumer attraction.
- Advertising Revenue Boost: The company's advertising and other revenue rose 10% to $294 million, indicating that more businesses are leveraging its advertising tools to attract customers, thereby enhancing the overall revenue structure.
- Optimistic Future Outlook: Management anticipates GTV growth of 11% to 13% in Q1, reaching approximately $10.2 billion, while adjusted EBITDA is projected to increase by 15% to 19% to around $285 million, reflecting confidence in future growth.
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See More
