Instacart (Maplebear Inc.) Q3 FY2025 earnings call

• Marketplace: Leading online grocery marketplace, growing customer base with higher retention and order frequency, positive unit economics across basket sizes, focus on affordability, selection, quality, etc.
• Enterprise Platform: Built around 5 pillars (storefront, fulfillment, ads, in-store, AI), over 350 e-commerce storefronts, expanding globally, cross-selling opportunities with retailers like Caper Carts and FoodStorm
• Advertising: Strong ads platform with growth in advertising and other revenue, new formats like occasions and recipes, partnerships with TikTok and Pinterest, consumer insights portal

In Q3, orders reached $83.4 million, up 14% year-over-year, driving GTV of $9.17 billion, up 10% year-over-year. Transaction revenue grew 10% year-over-year, representing 7.3% of GTV. Advertising and other revenue grew 10% year-over-year, representing 2.9% of GTV. GAAP net income was $144 million, up 22% year-over-year, and adjusted EBITDA grew 22% year-over-year to $278 million. Operating cash flow was $287 million, increasing by $102 million year-over-year.

• Q4 GTV expected to range between $9.45 billion to $9.6 billion, up 9%-11% year-over-year
• Advertising and other revenue expected to grow 6%-9% year-over-year
• Adjusted EBITDA guided to $285 million to $295 million
• Increased share repurchase program by $1.5 billion

• Regulatory changes such as New York City delivery minimum wage which could impact customers, shoppers, and retailers
• Macro uncertainty affecting advertising spend by some large partners
• Competitive pressures in the grocery delivery space

Q: Can you talk about new partnerships and international growth plans?

A: New partnerships in enterprise with new storefronts like Restaurant Depot, and off-platform with TikTok and Pinterest. International growth focused on enterprise-led strategy with existing products like Storefront, Caper, and FoodStorm in markets like Europe Q: Where are we today on affordability and how to get partner base to buy into price parity strategy?

A: Working with retailers on pricing, some retailers moving to price parity, using data to show sales lift and retention benefits, taking consultative approach with retailers