Instacart showcased its robust performance in the third quarter, marking its first earnings report since going public in September. The company exceeded market expectations and revealed an optimistic Q4 outlook, signaling its ability to navigate the challenges of the competitive food delivery landscape.
Instacart’s Q4 forecast for adjusted EBITDA, a pivotal profitability metric, stands between $165 million and $175 million, outpacing analysts’ estimates, which averaged $155.6 million. This bullish projection reflects the company’s confidence in sustaining and expanding its market position.
Key Q3 highlights include a 6% YoY increase in gross transaction value (GTV) to $7.49 billion and a 4% rise in total orders. Total revenue reached $764 million, beating expectations. Despite a net loss of $2 billion, attributed to IPO-related expenses, Instacart remains optimistic.
To boost investor confidence, Instacart announced a $500 million share repurchase program, demonstrating its commitment to shareholder value. Looking ahead to 2023, the company expects mid-single-digit growth in GTV, surpassing analysts’ estimates.
Instacart’s strong performance in its first earnings report post-IPO signals resilience and adaptability in the competitive food delivery landscape. As the company charts its course as a publicly traded entity, these results underscore its ability to navigate challenges and capitalize on growth opportunities.