Instacart (CART) 8 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Rebecca Yoshiyama	executive
Fidji Simo	executive
Nick Giovanni	executive
Eric Sheridan	analyst
Nikhil Devnani	analyst
Ross Sandler	analyst
Jason Helfstein	analyst
Colin Sebastian	analyst
Douglas Anmuth	analyst
Michael Morton	analyst
Andrew Boone	analyst
Ronald Josey	analyst
Steven Fox	analyst
Robert Sanderson	analyst
Ross Compton	analyst

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to Instacart's First Quarter 2024 Financial Results Conference Call.

[Operator Instructions]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to Rebecca Yoshiyama, VP of Investor Relations, Capital Markets and Treasury. ahead. go Please

Rebecca Yoshiyama

and Earnings Josh, to First Instacart's Thank welcome, XXXX Call. Quarter you, everyone,

call are prepared live Financial and On Chief me Financial call President with the today for incoming and will Nick Reuter, current Chief our Emily. open of Emily the Finance Executive After Fidji Fidji Giovanni, current we and questions Chief brief with Officer; Officer. our Vice remarks, Officer; our Simo, up

plans statements today's results, future results and and we actual share to cause business make statements to During risks our partnerships, financial subject which forward-looking are anticipated. and strategy, forward-looking and regarding related differ including call, issuances prospects, repurchases. materially performance These could those uncertainties, to our will expectations equity from

about including except today's Form last no We more and of obligation risks these classification the to find SEC. those after by to filed on can our call, in uncertainties, shoppers update assume as with required the You information law. platform related XX-K our these statements

In financial and measures, a addition, for in considered our which certain from substitute isolation non-GAAP discuss not be limitations GAAP should have results. will also we or

between non-GAAP in shareholder on included which and measures is our found website. these our can reconciliation be Relations GAAP letter, Investor financial A

over remarks. Fidji opening Now I'll turn the call to for her

Fidji Simo

all you groceries. across Thanks, XXXX bar and to start a Rebecca. continuing shareholder chance raise everyone. highlights I the our strong had important letter, how Hi, most hope to which dimensions read our to the we're of

over at your door. take of banners item represent than by of sales. best shoppers might orders or it we to faster means of often you mile are already our of the out and families the On access selection, XX% largest to is online first front delivery being retail of out U.S. store, provide which North within grocery who picked are who from XX% up a accepted top get the marketplace of than grocery the America, As in XX% more pick with X,XXX

the With like shopper all-time improvements no complete planograms, Our advantages shoppers we Instacart of accuracy. tools people also more put, by creating the offers an other we competitive the more at to with with provide experience scale have cost on constant an and on a customers. marketplace it looking deliver restaurant tenure and our bringing restaurants leading of and and and overnight, and they're Instacart our for. in-store Simply what models are to we for we're grocery of [indiscernible] unmatched shoppers can platform technology. faster options By thousands giving orders of at hundreds now of customer experience Uber, partnering high, combination

The delivery serve $XX. to growth ahead we'll XXXX I'm believe which turn sales also to grocery our retail more our Overall, over Instacart and on be we as able for app giving plus By valuable more Instacart, now twice excited here partners, needs brand our and beyond. opportunities to becomes orders customers' for membership remains priority. forward in and with Instacart Instacart of no customers restaurant and top drive our can food reasons more and

transforming We our a on the vision well to relentless operating we're and focus that executing technologies have on profitable foundation growth, strong are build grocery of the industry.

QX week. affected is expected Nick as end will of great retire and it role later announced Emily's immediately Reuter after file we Form at XX-Q, Emily the with Financial our we So this Chief next which is that our confidence is Officer.

undoubtedly I the We level in similar a been and that make tech the and our since enormously she's over into is drive across complex discussed joined a marketplace to year. the one profile of CFO and Emily, for experience own. Nick financial market found past future. wanted I business, company our very years I few best depth growth profitable the [indiscernible] to of operating she to a that rigor Nick CFO future someone more a contributing business few by deliver new out Instacart's As with debut strong was in instituting business contributions help January. Emily transform successful last thank of one our and exceptional his company, for want public Nick helped could in

I'll Nick remarks. to provide few the over a call Now to turn

Nick Giovanni

very Thank you, and accomplished profitable turn Fidji. be with public execution most ] X.X satisfying with I'm the it level Instacart of engaging sustainable, to months, to drought in and been at together our better one position Instacart. over past company create have I've my that several few over with operating It proud of over had clear all. fundamentals. It we leader Thank I'm incredible IPO years, in strong off a [ certain all cannot tech after take and great hands. step working shareholders what a call been team, And of is with past teamwork investors has closely an history growing Emily. and a these our partners our the has The pleasure to and it was I'll then in experiences after years. analysts the as And longest Emily and you the the our and of career. required that,

Unknown Executive

long-standing depth selection all a well to and as our having My is the breadth with want means and retailer the of a partnerships, and our few to I Instacart driven position and leadership by speed our high-quality technology grocery bullish Nick. vision grocery even more things: opportunity our I've an with technology. at our of January, the integrations the great ahead. customers This because of of future I'm ability the Since for brand experience. its combined confidence massive in Instacart as best service, even customer Fidji confident joined price Thank market clear its impressive capture become share in company's online you, deliver ability now the of the it. on joining more future.

advantage, multiple serve from ability same same to fulfill grocery orders by the underpinned time. cost store basket our the at big Our

shoppers from these also more earnings further support more the work excited grow future also Nick and all finally, to even inspiring on for teams technologies I over few investing lead efficiencies to giving as few thank grocery Instacart partnership dimensions. of We're This in one. across the aren't and work pie batching could extend and for to I Fidji for our that allows next for And be months drive her growth us years. we with focused more to our his results shape profitable will of past to quarters just not delivering the want or stakeholders. these generate while for day opportunities. our from all collaborative we

cohort which QX, results past, SNAP a our and one our continue on exceptionally quarter new trends outperformance and QX we've consistent let GTV in the cohorts said our discussing. guidance lessening because launches with cohorts. was provide for bigger Costco. in mature Now On includes color had dynamics also in continuation the pre-pandemic smaller cohort and in strong been outlook. be a is high successful This us SNAP with year-over-year ranges. and includes driven both end EBT continued me beating improving an to improve, we've headwind, to EBITDA EBT more QX impact Kroger hand, adjusted of of declines GTV biggest financial primarily It than the with was and a our by of which impact our the what

over representing a included quarter. consideration number the these this addition the just Leap billion far GTV because taking as especially from of arrived onetime to expect QX growth. benefited other lower don't [ This exceptionally hand, so our a growth winter in into factors weather. seasonality GTV of $X.XX output year things. After as a of at in we've our stronger-than-expected as all compared what to inclement growth On X% guidance well year-over-year quarter, of point XXXX is than benefit year-over-year X% X QX, in an bit primarily This we prior bad the growth was we QX from ], QX also of percentage season, to Day seen

While modest represents moving to in EBT expect QX growth the QX growth a we from our tailwind have largely day, by this X% we versus step-up delivered a to offset XXXX. a Overall, SNAP leap sustained GTV outlook not headwind QX QX. benefit will year-over-year year-over-year to from of be the

P&L an We levers are about ability well $XXX are leverage. also EBITDA of of absolute adjusted our reflects track thing drive on EBITDA both outlook to it is expansion multiple strong note guiding adjusted million $XXX year QX across to percent GTV to One our important and manage on million XXXX and our delivering to in EBITDA adjusted full to basis. to

adjusted This to year-over-year, largely in grow past other In we EBITDA QX, percentage expect over quarters. GTV with and advertising leverage. grow of driven we our experienced revenue as X expected is the revenue to adjusted transaction a OpEx by and line what primarily means

are management. take equity approach continuing to to We a disciplined also

than share We value single XXXX, continue EBITDA adjusted we this equity less the in And delivered XXXX. that the dilution of any sure we expect to repurchases. making be employees before committed net we the digits in is to are low year to in grant net

the execute approximately We we shareholder This end shares for generate XX time. are repurchased more and QX. our million confident over ability by cumulatively million why is to in value of $XXX

opportunistically new $XXX shares. had million of repurchasing of remaining As share we capacity to March repurchase XX,

Overall, with with our is service well deepening our are like performing solid. focused remain partnership better, We position business on and our leadership new technologies fundamentals operating making our and [indiscernible] and our Uber. relentlessly innovating

immaterially While have to that we our initiatives to time. in to brand QX, the over and potential new these and financials value believe more drive growth retail to partners don't impact our consumers expect growth we they

help profitable towards long-term will this drive of over financial and more all progress targets our time. expect also We us growth

future, take questions. the are now your that, appreciate may I and begin. here and as With to you about excited Operator, Fidji We're shareholders. support we your

Operator

[Operator Instructions]

with Eric from comes question first Goldman Sachs. Sheridan Our

Eric Sheridan

for X-parter. years ask thanks assistance over help the and all I'll sort the a Maybe of in forward. best the Nick, luck Emily going of role and

industry supply to think about user of sort simulating longer-term of we around growth, broader utility you unpack consumer medium your of the base against how GTV term, of more growth how about continued sort broader building as broadly? amongst you're the terms blocks longer the In on you input think think GTV the rising demand And objectives as can thinking platform, growth? to of about

Fidji Simo

Thanks, Eric, question. for the

market to allowing is of the selection. have So we deeply the underpenetrated kind this making one building still we same Number and the things that are in growth we as see is online position. succeed What that still today and about online. us long-term moving us excited anticipate of are very are long-term that still growth leadership a that blocks

but is now leading to We adding use increase new continuing overnight, of case in selection, able selection are add just which a to will grocery, new fact, also who are, the absolutely restaurants create continue to app. restaurants have Quality and in with for a the of critical. not case hundreds use thousands we

You in fund on a highly very but at rate their on fuel now. healthy latter highest can leadership see details since of shop with only and real high have to how shoppers right we improve pandemic continue we position the an supply, not a qualified the all-time And that at and be are the and rate. tenure that more there of

faster can in We tied to know And XX% the deliver within that store with this we which anyone, at enormously critical matters orders supply is means that shoppers also of a of speed see shopper being that these store. being again, and mile we speed market. a the than advantage, our

optimizing the items up flyers progress us on The is working year-over-year. the a their are TAM, and $X.XX that value. the multipronged per with that that lot online make that continue field thing one adding different whether saved which customer savings, And approach, loyalty out really to working we hard through we retailers, we keep work to it from are programs, That buys weekly on as are seeing at order, that's on on expanding from remains you're is retailers last getting CPGs, a maximum so and XX% of affordability. where need with pricing well

progress changing. what's drive of components making are growth. activate aren't we're They to all quarter, us really on these about you're going the growth. to to So long-term And going them see every talk how

as saw get about cohorts to we quarter that have of macro at big quarter also quarter improving bigger Now seen is fact as level, is talked new the a we as and pre-pandemic. after which growth mature long-term 'XX cohorts now 'XX to driver definitely again this certainly in we've what a compared in well continuing

up set long well very for feel we term. So the

Operator

Bernstein. with Devnani comes from question next Our Nikhil

Nikhil Devnani

I sales ask of like GTV of marketing about was stepped your percent and flattish as as sequentially please. well. up wanted bit and to transaction reinvestment, a sort revenue a It looks sequentially,

beat profit of did play did simply the of you EBITDA, come into Or on growth of the of possibility the some on to on foot of go the investment? factors comfortably Given reinvesting front it guess, support for I look the guidance year? you that pretty as at lack rest ROI why a that excess well? some more? Was not other

Fidji Simo

really while clear So I want we have line, reinvest And the to growth Southern to system high in right having engaged been right to target in habituation, to growth. last that incentive that at customers to to will confidence that's actually right because long-term to the time the to return it's which to not marketing value, able have able And the contra-revenue. be drive drive more we is we seen the reinvest incentive is in reason support our incentives drive be always support did the year overhold line, this sometimes to customers. really the

what immediately this because continue support to And that is growth. do take a in to seeing business numbers into heavily you're not may we the actually appear long-term us the to reinvest That view reinvestment. so

higher And retention so at club, or are be retention, getting like, adopt you long-term more example, EV. to incentives a or long-term or X buying of marketing of some of category might from retailer all more for these which predictors and X health driven

and longer see out that investing very term ability over our business feel but much you to than rather quarter, in the play the are might limited we don't so invest. in in And

Operator

with Our comes from next question Ross Barclays. Sandler

Ross Sandler

couple a Just of on questions partnerships. these

maybe clear Alice first, room. on we the So air Amazon can the guess, the I in

on question. in not push pricing It You some in you like point another new guys mechanism U.S. Amazon working your with go at their And what's first couldn't view work Foods Prime Foods. I reason is future, would in that? with going the guess, why Whole to back to is That go sounds Canada. whatever, there or here the Whole any with be exclusive for

delivery think you And one are you partnership. restaurant how big is guess do come there's pass subscribers Plus a apps? members who then on this do kind Uber just be do you from now? of think Instacart of folks high be? Or Carte that order use that IC overlap A I food and Dash second like ordering might over the La think could that just the will And

Fidji Simo

structures would So Amazon different on say the over has Amazon pricing experimented specifically, I many years. with

testing We contract, critical value we and confident advantages. And have subscription have add-on still for some winning been time. that some this prop customer remain we very within the this

a in XX% We reaching much have the best That's know selection, of households. partners, matters selection X,XXX We how this market. key retail advantage.

a have also speed. on We key advantage

value And are in schedule Instacart $XX matters in priority know advance. now and a the we have of As with have our far twice of being I case you that we really which speed best Amazon, of extra restaurants as half to Plus XX% an on requiring said, whereas orders orders subscription. are lot this demand, addition in the within market of valuable not year, a again

we So be really We work as in them competitor, have to in under construct the Canada. good that from we with any share able feel continue we past. this gaining will

There decide. to wouldn't why thrilled is ours. them their Whole results. for work the we with pleased not be are that's able that's We with decision, to be would but expand We them, no but to to reason Foods,

really Now excited the I'm partnership. Uber on about the side,

economics, enter really completely pull a you off enormous know, is new selection I hard at you positive think as adding overnight when category. which to unit this is

why this we accretive also going and to big we user. part have that And especially of is that in we be see, does that's a in incremental on Uber partnership something not usage your type Instacart audiences a the which to is especially them which is lot So know with think specific into convert to on why customers. of of entering actually have decided our to That's customers we suburbs, aggressively customers prioritize incredibly more the family, this other question are apps order valuable We we restaurant value see these we not to in go price despite above increasing already this $XX category. of restaurants. which to to free be from wanting restaurants the all going think is Instacart I both restaurants. proposition grocery that do to And Plus, delivery and adding and

proposition value very leading with in selection selection a grocery have restaurants. strong We and here leading in

as and as to them ability more customers really we're restaurant to a well result, So existing users our convert and about new users makes engaged. become our excited

Operator

question with Oppenheimer. Helfstein comes Jason next from Our

Jason Helfstein

questions. X Just

So up. about some expanding comments to pick

you gets this do better how positions that like about think when you to customer compete the obviously you Just you with grocery. savings do And a what Walmart, up? think pick are predominantly

second question, the partnership actually on offer they that And your can offering economics would app. their expand work the just to so Uber, grocery the to

open-ended on So that. question

Fidji Simo

part pickup. of value is option because our convenience. So a a on is cheaper big affordability strategy Pickup people who over price for it

a pay it is, the great savings, and it. those why have of inside to so And that's it that's who the savings, but want we quarter cost from benefit get see to so want pickup in we incremental. the orders option we're store this pickup And not time customer because time delivery. a to to point And to on the it's different may don't why fact, that are actually use for on focused your people free made

to grow expand the to big of Kroger, smaller grow, more continue our many support continues with business business. Albertsons, in to part like that pickup overall large because and process, continue with started pick [indiscernible] grocery, but we Now a up to we part

a smaller our it of overall we're excited business. is about So part it, but

grocery, was Uber about entering us question and on restaurants. for be As clear, to very your partnership focused

continue in going are grocery. We have share still And to in compete category to we grocery. leading

that continue sell to that. to excited is this something So we're

Operator

Our question Baird. next Sebastian comes with from Colin

Colin Sebastian

best and Nick, you on to Emily, welcome your all next congrats. the and steps

significant as advertisers. this revenue like the you CPG at an a still opportunity Looking with seems advertising brand area that's opportunity, engage more and

on for And platform products if map maybe Any update should that ultimately, we at or perhaps business, on attention at Fidji, pay the year your so rate, the take vision road to? could us specific this there? that enhancements advertising you looking And looking the platform?

Fidji Simo

Absolutely.

we So X% that on of to over reach not targets, our would be high very It X% linear. still GTV have long-term are advertising which conviction time. will

look the grown you at the last fast couple If of last very advertising has couple years, of over years.

so And fully something the told to we we dollars. have come always results more and you of GTV the ads continue that's we growth, we've But growth to yet. as or the reason measure few and very is last The catch mostly before, partnership in conviction model showing is around and long-term changed place we back are the advertisers because their because place ad haven't up performance incredible conviction that has seen this quarters, lagged an more [indiscernible] optimize and strong. adding that that

seen with have You latter [indiscernible]. with probably in the that ownership

launch to example, continue capabilities like, and objectives this ROAS quarter. new objective optimization to and brand target new We for

have channel giving capabilities incrementality. by brands contributing these high which of are [indiscernible], sales all see high so to return, going high And to a that they are confidence really we

and improvements, butter. to, terms this to In et really our in bread attention targeting, addition pay to which cetera, what measurement is of

our strength the beyond of extended app. Instacart platform of world the have We

have partnership recently to outside our of and NBCU, do Instacart. strength of it Tradedesk with with our advertising audiences we applying targeting the the and You data taking are where of seen platforms Google, us

many on we Caper of inside get that's up approach this our similar given [indiscernible] look Carts, to lot there, right ad store hundreds as to a that's X,XXX, a that then ramp we Schnucks is expanding especially will also a taken website, on business. something the the way And with you Caper of course, now but growing which have with ads XXXX. have obviously retailer more. is ads finally, up [indiscernible], where business we as bigger, continue small retailers' to whether And We power HSA's that

very initiatives Orad, we the our we trajectory. but like overall, time, So feel of performance good confident about some take feel about

Operator

with question next comes JPMorgan. from Anmuth Our Doug

Douglas Anmuth

over for provide that any flatten the can if what you and Costco you Kroger across into understand and partnerships timeframe SNAP you can you a on quantifying on from color more just us help to of cohorts? new on out? flip the headwind Emily, And mature cohorts, a benefits see anything declines around as tailwind with seeing And XQ? those you're EBT then to

Unknown Executive

Thanks question, the Doug. for

on remains true. everything say we've that about what that I'd said cohorts, So cohort is dynamics

benefited So pre-pandemic. is that a our the in of cohort are mature What though, declines cohorts QX new to than would note, bigger all and the continued performance improve strong I cohorts. we quarter, that saw

in reason, And we would that onetime those QX so acceleration was expect there for and given improvement some don't that in that QX I repeat expect to impacts.

So trends overall, I with underlying the to trends impact think onetime the move continue along same in the QX.

I'd say QX As relates overall, on benefit QX. from what it EBT, new of year-over-year headwind the improved the that the to is partnerships to

the in And QX, launches Costco strongest of Kroger was So impact mitigate that and in helped the impact. QX.

it move had modest. X I is SNAP we the lap about into about that we QX overall expiration that the think point leap percentage those benefit of impact of benefits. EBT offset impact would from effectively The in is we so the that the expect to day, way As in growth. But do QX, QX

Operator

Michael with Our MoffettNathanson. next question from comes Morton

Michael Morton

the And of comes Could taking on a term success and to from and taking side. in-house could core and but clarity the to how pull related. base of Amazon. exclusive to lot And get things FAQ. question and a we business, there. you shows be they're any the speak longer your share largest frequently base that and would Two, related they're to it's that times, know they do working when we likes the customer I to partnerships, eventually. if I some And appreciate length investor could, of like the the it's not essential with in It's contract love of Research from that of you your share grocer defensibility Walmart to think it grocery relationships.

So any there sustainable that is their to them and you're solutions. the bridging feeding beast risk own

Fidji Simo

for question. Thanks the

exclusivity. So on and contract length

is want being choice be the I embedded of to everyone grocery by remind strategy because that them. First not off, we our partner drive for just very strategy. fundamentally to in exclusivity The business is growth

are, for the they As would contracts, all X X and have say, different to they I timing. years,

baskets if So happens at not coming happens us, point. case is to It other own. that Pepsi, our large And do what from nonexclusive from any baskets, that in of you cliff continue add platforms the bag what that the being go so very different we on everything up up like usually different relationship order retailers grow basket. which small invest it's we as very from and what and this and see other really is platforms, platform, chips a after use thing when restaurant our the to is that on of small to with can they is ends can go the more

And technology grocers. in so continue our to we with invest

obviously often, not relationship goes fulfillment. on We they're and a on it's with power do sitting just do much operated a lease more than even do have virtual strategic the kickup business, relationship them. convenience, EBT our We an we where on, We SNAP. when exclusive, power marketplace. very the we we

this. So that's very we about how think much

have being working selection that's of the what always and possible I say that long-term a over with gross on we for customers, and partnership best selection Instacart. of what having obsess got retail U.S. would XX% represent is competitors. us terms In to

grocer. And so want why that's we work every to with

comes we and wanting talk competitive that at advantages, competitive relying seeing think not their very largest competitive with relied fulfillment that's themselves that particular, on advantages of any scale very strong notch. technology. than business we can the scale And advantages, if top growing significant the us us that's are highly can the really in you do result, over do when which the operate Krogers fast themselves. that it even are the economics would However, And world, that we guys, that to because are for why rather when they et gives our competitive at you about to advantages they and as is we incredibly our a as grow doing as at on cetera, quality fulfillment retailer

with make for So date. it smartest and has that's the always happened to us, to we want to exactly partner what choice them

Operator

Andrew next comes JMP Our question from Securities. with Boone

Andrew Boone

partnership very Universal advertising do unlock what off-platform you need budget you is more as to the NBC Can The about interesting. partners? talk well and as of potential more

Fidji Simo

question, the for Andrew. Thanks

to So can customer advertisers may about customer we used may unique have really the -- brand, think who for to we it is is that audiences, way we new that help their be data engaged identify engaged, that example, be would churned. that an but have

really hungry All going of other these are third-party data. audiences for are incredibly critical away. for high-quality And our are advertisers where platforms cookies especially in a world

performant. these able, are other through leverage our their take advertisers that on make we our and to to advertising on are partnerships data so other platforms And able to first-party more do where audiences platforms

so that's And exciting. very

that In if of decide product to them know hour. a inside that people these convert they page ads brands to where within directly because addition Instacart are they point and to on to their the to going buy allow land get that, hands the some an

that's it's Google, the [indiscernible]. we're why approach to really excited partnerships. funnel these a the deepening that we So have really And full and Tradedesk with continue

awareness-driven new Very Instacart allocating of often, to a the is talk just it's a to, a get platforms different maybe new from budgets and that these requires they're allocating it terms because are people that muscle. spend and materiality, in small more because go infrastructure spend I people would thing other new are we objectives. say still that on on people than Now the other or it

we hope add time playbook applying we've in that's know new relationships, So and with playbook, of to services easier this XXXX. capabilities, our that bit to the tools this takes these we're the settle to new make in platform. exactly build access but optimization it We of past these to the the results a own that to in, done the see year,

Operator

Our comes Josey with Citi. next Ron from question

Ronald Josey

of follow-up in a to the just your wanted data. as Fidji. quick Maybe comments prior operating I about letter around one the questions, to ask

that, you talked think about understand LLMs. both the I receipt moats your on quality and something consumers the think that's around result have often as comments or that, think in I of Because analysis retail letter of around for strategic just the to the call a And partners? And have that's quality, -- and question a around, the decade another you specifically you -- of I discussed. benefit I that operating wanted around data. to the maybe

to from benefits talk gained that. the Just that about you us

Fidji Simo

Thanks for duplicated they wouldn't we if in collect. model models because if they that, prediction someone talk letter even But clear. the literally the have which is didn't important. operating XX incredibly have our now, I I data be and question. right talked data, be the The prediction having operating to like of you the accurate, part Absolutely. small want years about all is of models of the best often, about reason data things very only that

side side. of And large on and a the we've data, inventory the what so amass done pool both consumer is really on

substitute, data to are types they surface and about basket allowed ad they recommendation the large us, of products that item XX customers complementary data critical on product On that recommendation. not with an XX years best it of that that of consumer it's Lots prefer. is to the the is to that everything want buy, shelf, side, others can also surface best we if to the everything of which that something because substitute the

letter, you're all data our we It Buy have And in on an the all list we of because that's purchased XX% the for from have of have customers all of in to your mentioned purchase you to again to would you. preferences. contributes And have we that richness or So really when to of because it's have of another Instacart, entire your rebuild basket platform that means you That a invested orders, all you your placed is their rebuild this of history. Again habits, consumer go data. couple seeing that of rebuild all that item why of a have hard

on predict really that is inventory shelf. kind data us critical to the Now side, of it also allows side on the have what shopper to and

quarter, have we in we out system some to their balance with developed a which stores to get can quarter have predict of technologies files, given on mentioned able themselves. data their so not is cases, to partner accuracy, by after we the right and what's of exactly roaming the we some us because these that on-hand previous biggest have again, tell be as catalog I've our [ the ] are are grocery actually retailers to technology time we we And create shelf the on shelves CPGs XXX,XXX CPGs and in than more what's on their what's retailers shoppers but and And only calls, with to all going on more using real accuracy our much the much complement in that shelf that now. know optimize retail operations out-of-stock we because predictions with more

our items using you store. that's the Then to and why planograms the for store, shoppers on able them increase data platform, inside need -- so able we And when rate. they find be have that are represents have the the in to the with orders on to see max item efficiency shoppers you shelves, of the arrive found once find predicted so of XX% optimize our the And we the to also kind what's operations. that

data tell order to allow happens it And we completing actually, receipt you're And found order sometimes and then into a shoppers receipt have hey, able mistake. you could to the receipt finally, and once with mentioned self-correct can letter make I on in that we're this items, because this you the done spot. data, might hey, them switched this different you real data, analyze item item, now the missed them with in time because a

of really in And pandemic. so these leadership is an the and all and rates of at gives massive since [indiscernible] us rates what shelf high again, results that the technologies combination all-time

to continue them quarter. So improve after really and we're quarter this of upon proud system

Operator

with question Sandler. next Our from comes Champion Tom Piper

Unknown Analyst

year? you're talk the consumer hear the and And platform within guess, big love could picture, of this bit the for about beyond affordability that outcomes talk and view your I'd how a of about and you you're little productizing range to little you a the bit product. contemplating maybe deals I

Fidji Simo

Thanks.

we that's savings on sure want a track you we to obsess affordability, get to that's them make give come why to of we increasing per over order. on really year-over-year results So $X.XX XX% to ways deal. items And a because like a it, and are our customers variety seeing metric when carefully platform, that the we

and deals, to is about you're there's that. products when programs. so actually different of loyalty a a of that productizing do variety talking it's built One you lot deals, And

of allows the So our programs of And to after a integrate more more which and with a offer lot surface to us quarter we lot deals programs. quarter, loyalty deals. retailers, of more retailers loyalty

going retailer-funded a customers for to are example, off offer, them. deals $XX We to particular where to order attract have they

customers. to that built own funds So a put we've retailers allows that's attract actually to also platform and their delivery recently

weekly We also the are flyer. digitizing

flyer at If discount give come deal product, you to ad a CPGs called have deals when basically that are which And an from in of so offline, that that in coming a what lot the get we go that finding have of their a benefit before digitizing format product of the store. that finally, out people kind actually get we to particular end look experience. they to then the a format are to higher and want forget not people they store looking people weekly CPGs We're where deals a form to for that and figure and specific the up more Up we paper specific Stock on to and like Save, and can for quantities. also is

and providing also options like savings terms delivery options Pickup We No delivery more at and affordable look Rush. in of

of great the benefit value convenience the that's our who have So can service people price well. as our of

of very reflected in that right very at actually TAM. we fact means U.S. really concentrated was of highly something to entirety making like -- couple quarter demographics, about the our if look And the that with pretty to quarter we years all population now, demographic. you align [indiscernible] we're share a becomes and And so service more it adds terms the in that that because we proud the of closely. these that's Whereas is after were had of affordable up ago, it map

dollars view place for are seen more think different the get lower the end, And me them certainly to with a would quite a do are we to they we've people then say their we deals finally, a they make faster, want shop you the be if retailers multiple result, lower it budget, resilient want consumer. make and when to say, way combine on my a that meeting asked their I able consumer needs grocery as would possible best us as they as and about see family to to budget and really And on deals see as lot their planning in easy for to consumers their them shopping. stretch really to and trying best trying meet income helps shop. therefore, however they that the go possible to want I

focus. really So that's the been

Operator

comes question Steven from Advisors. next Our Fox with Fox

Steven Fox

me basically And to to a to the mainly I some focused should space their in that own your be you understanding we would within ramp? from channel. business. advertise be translates this on growth Just financial growth from from expect user about call Would relationship. it that to into using standpoint, able it your what how morning's seeing My financial is better subscriber one on couriers benefits be or question their think on it? starting Uber would see from guess Uber

should quarters. say, So can directionally your the just next or to how of X you us helping sense earnings business we about this sort give over, a think X

Fidji Simo

top launched can at fee the But because send But an to unit about, are making we but getting not the looking overall engaging is to Instacart which of really going Instacart from success by for of level, an ensure Yes, to them. on us, at help be you restaurant is I we're a guide on service here absolutely. this case We're we at tell we're deal by really deal The looking the we're more orders specifically high obviously investing subscribers. even we're that economics What more also business service. use business a X can not more affiliate that getting we and our excited Plus Uber specifically. frequent going to app, have positive not how even us adoption. day

a that at looking engaged services. all just get the us be of across entire adoption in really strengthens to fact, restaurant customer really more business, but going way all metrics so driving our a business, actually these of And and a us in get not

we'll And to that. So that's about. -- we're to we'll ramp launch of up, excited terms see what in have

Operator

comes question Capital Loop with from next Markets. Our Rob Sanderson

Robert Sanderson

stores. What Are what points but questions this costs X% the that Many grocers expectation And meaningfully penetration. Is about in looking And X% happen maybe more X-year time reasonable down hardware of is looking asked for my to calculation? to frame, they been deployment things to that ask realistic? would for we does point? come a have in near-term and smart I stages can experimental have proof something about of wanted ROI think proof-of-concept be answered, at a think like just about like when that could deployments? these terms cards. to Or are an to are expand of at

Fidji Simo

Thanks, the question. Rob, for

So things behavior? looking the And in grocers far, the changing it's exactly is on over, what been so terms product. which seen we've that do are what the their consumers we've of a obsessing the is at, is answer same yes. resounding as And based love

up also imagine, you consumers wanting experience the that that them. can and Schnucks. have is that anecdotes put saying adopt higher a and the data to grocers create have consumers that allows competitive other that having that love to carts can seen seen and as We than a them can is larger big of more that have very engaging an of size skip that baskets a lot driver, basket cart end gave differentiation checkout that for us a lot the consumers like use seeking in letter of are cart. in stores point saying We've people a We I Schnucks carts deployed. absolutely using that who hear the certainly because

So on reaction, it, by the really fuel very and retailers for to us we've deploy and you're excited that. encouraged Caper over seeing seeing very why been really consumer that's obsessed more

we the in the goes letter, with whether Kroger, the Sobi, Wake seen say list on. In would many grocers, terms -- we Schnucks, of firm, ramp-up, are as I you've pilots in largest it's

And have but go, of so many really more. think deployed on end the then the it could those And of deployments scale by kind depends costs to it how I we expect thousands of year. to

are have because lot everything timeline We to a need there a specific these be we scale are to to we costs. that able not think guiding But we of that announce.

of to And screen source cost, advertising blocker justify we that Caper in the we business come there. line the about a is Carts of cost of tell future, becomes completely the work really Caper new that's incremental more main for having why not going of inside for Carts hardware cost excited that's store say revenue out because reason the from it deployment. get model putting and But them the us of to on advertising. a no business really the doubt. the can big that would Caper is will down of for terms a part of another to In I

Operator

Our Ross with from Macquarie. Compton next comes question

Ross Compton

kind into on what's against on occur tools. an comes adopt even others. to really marketplace wondering your required economics see and enterprise win of GTV boats your order where where think might interesting I evolving you that you the not share given from. marketplace, In demand estimate would in and I tide enterprise the segment drove rising kind XX% model, the economics if enterprise is was an are is agnostic S-X, lift grocers Do enterprise, space you're kind though this And to compete kind of on similar estimated the of all to more Foods your the company XXXX. are of technological you tools Whole online you and there's of how

Fidji Simo

question. Great

own in operated You're you and can would they grocers a because And partner us their growth, as in and right, for order the agnostic between really case marketplace we through strategic platform. imagine, label. white prefer of to makes go remain actually that

a want grow And at marketplace the to so wants much the advantage [indiscernible] grow that table fact that as we we very us. partner strong our to a for have is competitive as

growth a be years. label in for seen with few remain marketplace consistent to have roughly line of white We that

catering or and seeing, a mentioned is where letter past, the the and foot what is storm of really completely have front fulfillment. they I in their are power deepening and store, whether are actually it's whether the more we them, relationship the business, our for enterprise the powering things we grocers, where just more value integrated. it's that it all now might Carts, we Caper been And of we in store with powering where enter What powering just now products are these

winning our the just you on not And has surface again, day Caper online. but really surface [indiscernible] food to ads in-store people if surface Carts, really storefront Carts Caper storefront, It's [indiscernible] can so their reorder our to storm for going ads on to Carts. now everything enterprise on basket example can you of using their get marketplace, from the great you we're to because power If Save where to with Mart, look them at strategy ads. our Caper solution we announced just a deal

So or incredibly that Caper is their the and Carts store helpful. fact both front

the from catering order card. can Carts Caper You

integration another that the So integrated again, catering, is good Caper with fact storm that love. we have Carts they

maybe benefit not solutions. with joint integrated will to have to come now suite they these -- a XX vendors of us, they product for when for having may So end-to-end point get from different completely instead solutions. that it's to It's integrate

Operator

Our Post America. Justin with from of next Bank comes question

Unknown Analyst

the how of that penetration given that some or McDermott Post. In the shareholder just This is like supply letter, flesh the among on growth areas forward higher of improvements your supply I for you delivery you allowed increasing -- Justin out looks Stephen was those among efficiency of if through about and kind grocers. wondering evolution customers kind customers. going driving could touched of of

Fidji Simo

and of opportunities. this else of saying shoppers work in continue very and and supply, saying We've shoppers XX% always XX% would for high in very that offers waitlist had with someone strong cities many to recommend them shoppers that have we satisfaction to well-paid they Instacart of

QX, and we because batching such we that that of fact by did XX% of Then delivery to helping X we efficiencies that excited orders with are shopper certainly new ranges that's better helped for access the expanding we the we that is allowed And radius time onto is the have what supply, attractiveness shoppers the do matching allowed retailer you're where continuing customers reinvest long-run distances. So shoppers revenue and have a doing demand transaction is delivery to in that pension drive to platform. us. are the of comes example addition that in us the and that, good business. have seeing also have to least has we deliver at are What we to drive and what via okay to is these the shopper in to

while earnings. And we are doing shopper that also increasing

that's what both to us but and allows so drive business. becoming obsessed in is to a outcomes And to we've more really opportunities reinvest It's really the these been of more also shoppers lot able which continue over. we that learning fact exciting. the efficient, giving

Operator

The Our Zgutowicz Company. next with from comes Benchmark question Mark

Unknown Analyst

Mark. for on Alex is This

trended curious to has year-to-date. improving spend? versus active just advertising how reaccelerate high client from same characterize you Regarding on new the a opportunities growth reliance brand this level, net dynamic would relative additions how I'm

Fidji Simo

certain double you question. specific very But pulled we have few Instacart to spend have growing great that a these reasons can meaningful are have that thousands digits. tell also have brands brands is that back can brands we That's The and large rate. well for are into I are example, thing kind the of business too that's impact our happening And impact large concentrated brands, pullback everything of in are still alcohol growth an see overall large our brands seeing outsized we alcohol of we an platform. in the on this of on because you category. give that have spend because we To

big And performance invest data sales. the be on have this if improving to focused drive. clear business. large because -- these think I that ad terms brands that diversifying from challenges in also on a do their brands lot of platform. going can But so both we focus have is the platform own me need onto that's are advertising enough of that it's to to be absolutely big with so to that new the to business I are to think large come And and existing in these to we I've a that go platform. we performance it when of to continuing well the why impact continue less so some all measurement drive is as index able the they very we will not And small, many been ad to spend really brands convince for see faced under to year points, come of as compared more, brands we proof and going brands of now priority we brands the the new a more adding that that still

priority. big very So

Operator

Instructions] [Operator

question next with from Needham. Bernie Our McTernan comes

Unknown Analyst

This like Crist hear Emily, plans, is Bernie. Stefanos and congratulations short love just to calling you'd and maybe I from on your long the of would in to do. new some anything different role. the term, in goals

Unknown Executive

thank and Thanks, Bernie, congratulations.

doing really I about it differently. things as So think don't

the company I share. flow think Nick like valuable focused on generating creating long-term most cash per and free

creating driving terms time. consumer profitability and translated in of opportunities finding So also of focus serve a offerings over consumers are and that's also strong them but portfolio a operating attractive That's they investment focused their leverage where growth. that swath broad of into journey, me on and really on for meeting delivering improving

driven I'll I and we've execute million of executed few think the program, end on large I've repurchase pretty share comment which lastly, by months, last of share we've repurchase a over the helped QX. $XXX

that. focus thing I'm is I'll just to able other on do the how think I

also I of ground. seen to what over I've it a obsessing was what those think markets positions. if look where seeing I've at deepen leverage And in looks competitive very to you deepening my XX-plus years highly competitive it leadership operating like looks position critical. like to I'm our able experience lose background, seen market and

very all that so want investing as profitability. and to Instacart has incredible focused remain while lead, that, with particularly that right those team on I'm I'm sure to we an that, continuing to I partnering Doing So positioned Fidji deepen to in ensure make lead, and happens. opportunities the obviously, closely drive

Operator

call. conference This Thank participating. concludes you. you today's for Thank

disconnect. now may You

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