• Gross Transaction Value (GTV): Grew 10% year-over-year, reaching the top end of guidance.
• Order Growth: Increased by 14% year-over-year, the strongest in 10 quarters.
• Average Order Value: Decreased by 4% year-over-year.
• Transaction Revenue: Grew 8% year-over-year, maintaining 7.1% of GTV.
• Advertising and Other Revenue: Increased by 14% year-over-year.
• GAAP Net Income: $106 million, a decrease of $24 million year-over-year.
• Adjusted EBITDA: $244 million, a 23% increase year-over-year.
• Operating Cash Flow: $298 million, an increase of $193 million year-over-year.
• Share Buyback: $94 million worth of shares repurchased.
• Cash and Similar Assets: Approximately $1.8 billion at quarter-end.
• Q2 GTV Outlook: Expected between $8.85 billion and $9 billion, 8% to 10% growth year-over-year.
• Q2 Adjusted EBITDA Outlook: Expected between $240 million and $250 million.

• Warning! GuruFocus has detected 3 Warning Sign with CART.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Maplebear Inc (NASDAQ:CART) reported a 10% year-over-year growth in Gross Transaction Value (GTV), driven by a 14% increase in orders.
• The company achieved strong advertising revenue growth of 14% year-over-year, outpacing GTV growth.
• Maplebear Inc (NASDAQ:CART) has expanded its reach to 98% of households in North America, maintaining consistent customer engagement.
• The acquisition of Wynshop is expected to enhance Maplebear Inc (NASDAQ:CART)'s enterprise strategy by powering more storefronts and expanding retailer partnerships.
• The company is leveraging AI to improve operational efficiency, with 87% of its code developed with AI assistance in Q1 2025.

Negative Points

• Average order value decreased by 4% year-over-year due to the addition of restaurant orders and reduced minimum basket size for Instacart+ members.
• GAAP net income decreased by $24 million year-over-year, primarily due to the lapping of stock-based compensation reversals.
• There are concerns from brands about macroeconomic uncertainties, including trade policies and regulations, which could impact advertising spend.
• The company anticipates a sizable step-up in stock-based compensation in Q2 due to the timing of annual refresh grants.
• Despite strong advertising performance, there is potential volatility in brand partners' advertising budgets due to macroeconomic conditions.

Q & A Highlights

Q: Can you provide insights into the performance of your advertising business, particularly regarding core CPG advertisers and the longer tail of advertisers? A: Fidji Simo, CEO, explained that the advertising business saw strong performance in Q1, driven by both large and emerging brands. The company has diversified its advertiser base, now with over 7,000 brands onboarded. The strategy is working well, with high performance in ROAS and CTR, and new ad formats and expanded supply through Carrot Ads contributing to a virtuous cycle of increased demand and retailer interest.

Q: How are you managing the economics of the $10 minimum basket size and store check initiatives? A: Fidji Simo, CEO, stated that the high density of orders in stores allows them to manage the $10 minimum basket economically. The initiative increases order density, enabling more efficient batching. The small basket orders, often consisting of snacks and beverages, also benefit from advertising revenue. Store View and Second Store Check leverage the frequent presence of shoppers in stores to improve inventory accuracy and provide additional earning opportunities for shoppers.

Q: What is the impact of the acquisition of Wynshop on your enterprise strategy? A: Fidji Simo, CEO, explained that the acquisition of Wynshop enhances their enterprise strategy by allowing them to power more storefronts and deepen relationships with retailers. This acquisition supports their goal of tapping into the market that retailers own and strengthens their strategic partnerships. Wynshop will enable upselling opportunities, such as fulfillment technologies and Carrot Ads, creating synergies that align with their enterprise strategy.

Q: How do you ensure your ad platform works well for emerging brands with less organic brand recognition? A: Fidji Simo, CEO, highlighted that they build different ad products for emerging brands, focusing on self-serve tools and AI-driven insights to optimize campaigns. They launched inspiration ads to enhance discovery outside the usual aisles, and universal campaigns to dynamically allocate budgets across ad formats. These initiatives help emerging brands gain visibility and optimize their advertising efforts.

Q: How do you view the resilience of your business in the face of potential economic slowdowns? A: Fidji Simo, CEO, emphasized that groceries are an essential spend, and their business is resilient due to the convenience they offer. They mirror the US market in terms of household income distribution and have strong product-market fit across income levels. Emily Reuter, CFO, added that they have a strong balance sheet and operate profitably, providing flexibility to manage investments and navigate various economic scenarios.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.