CART - Earnings call transcript Q2 2024 | Instacart (Maplebear Inc.)

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Operator

Good day, and thank you for standing by. Welcome to Instacart's Second 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 Gigi, to Second Instacart's Thank welcome, XXXX Call. Quarter you, everyone,

call are Financial On Chief me with the today and Reuter, Executive Fidji Emily our Chief Officer. Officer; our Simo,

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

find You today's obligation after uncertainties with to Form information the can our filed statements these call, more and except about these XX-Q no update in as risks SEC. required assume We law. last by

also limitations shareholder in certain which GAAP between in on our discuss measures, and for Investor a considered be reconciliation financial will and included can not from GAAP measures financial have website. our or isolation as these letter, Relations found non-GAAP our which substitute non-GAAP addition, be In A should results. we is

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

Fidji Simo

QX consecutive Rebecca, including in net everyone. I hope strong read our flow. gains and year-over-year you XX% Thanks, income quarter third in latest of shareholder impressive and positive GTV cash We and posted a our chance growth letter. EBITDA operating had hi, to results, GAAP adjusted

that last leading pay highlights our the XX the dimensions, enduring marketplace order by off. largest with deep all as retailers reinforces and position customer to advantage our delivery an of best-in-class built our and performance experience North Across Our strategic quality. online speed America years continues industry-leading grocery in over integrations underpinned

systems. EBT more by deepen virtual our services catering retailer deep selection that and We SNAP, multiple integrations pickup, offering within require continue to advantage like all convenience,

can and programs, replacement our their we or points on with of more the retailers' complex hard perfect that figure is inventory through to help integrating quality because and linking affordable unmatched loyalty also that incredibly make what what's their the digitizing by circulars, ways their offers than we service better data are shelf is in anyone Our replicate. to powering dynamics us retailers' algorithms, optimization understand price billions out consumers

to These don't our also is Platform, but apply of just underappreciated of strategy. our our the extend marketplace, advantages which to most growth one parts Enterprise

and of for explaining So to in more today label show together I'd the our some well the and work cycle white of time this scale foundation us I depth future. thought our spend Storefront how position retailer integration, in Marketplace virtuous a the

we our apps e-commerce creating the In Storefront we our to rebuilt the label latest with XXXX, completely white Storefront Enterprise our architecture operated own their and on Instacart By shared and technologies immediately now marketplace, websites. benefit add from can from ground features and partners solution that a up.

match retailers innovation Most can't pace our of on their own.

omnichannel with and retailers continuous to onboard get in integrating minimal into drive they customers. investments results rapidly improvements that by who us, So more up showing turn in-store efforts. with These our we Storefront eager are are customers as growth cost

we is About increasing By are whole expand density in And platform. orders white orders X the our on can Instacart best-in-class of economics also volume, batch our ecosystem. we we also as continue serve grocery. X faster our orders unit that Enterprise benefits our unlocking key this placed label to can in on-demand more offer every shoppers a delivery We store, in which windows. best position to to together,

grocery There in-store of still so savings suite grow lot on can online triple pass our for on. these and the to and We But and while technology a in is are to go of more cycle we online than constantly go cost now ways reinvesting retailers with Platform why gross make customers e-commerce technologies Marketplace even if better, or X/X store. new double more And initiatives be beyond to technology. looking will a to Enterprise penetration, virtuous runway shopping Enterprise our in that's offshore. our more services

inside electronic our announced Caper ALDI be Carts retail Ads Sprouts, pilot AI-powered our shelf Carrot also ever in-store app. we Schnucks Ads expanding first partnership label international as Carrot launch kiosks launching our Austria as to of today, We're FoodStorm software will out in in and and U.S. Just mode our with ALDI an partner first with roll chain-wide. well ordering in our

in-store The with each of our and that all Storefront with directly beauty is of other. technologies connect they

customers for seamless and So online in retailers experience stores. it's really to buy from a

stores. their important away can channels. can partners their technology that the to avoid solutions of across screen This with the to moving to are simple who online For fragmented X is complex seamless and of reorder and their increasingly experience lease in Carts or for customer bought example, customers Carts retailers in Caper ingredients towards and all shopping getting online, from tab point Caper what a bring they offer

both omnichannel our foundation network. Marketplace it's to offerings, for retail strategy the Enterprise Scaling media and because massive our and a critical also in-store is laying online one-stop shop

resources, may it media want to retail platforms brands and with they that across all limited that right new than up scale have know networks time seem like are While work will channels. we popping now, less have and ultimately

data. measurement, will Ads, CPG owned leveraging retailers as Trade through Shopping well Ads of Instacart exactly leading and YouTube, and shine sites audiences ads other data our they and the our Google as Desk operated With destinations reach like Instacart Ads where can and place Carrot scale, to performance, can Meta, marketplace, And Instacart pointing capabilities. where this product across is us, because

screens, people also advertising this the take online ads the which can best include very will store of And future, the on bring aisles. in to who Caper in-store in it already the and are Carts to

to leading as marketplace one will excited the cement our can we incredibly Enterprise grocery bets as extend us retail we're our momentum media building as ambitious by our largest position are enable Marketplace, the platforms. of Overall, and you really and the across tell, omnichannel I'm lead network. Advertising placing that online

our execute over every value time we our grocery on and strategies, more building single I'm transaction. power generate shareholder confident technologies to further vision can As the these of that growth in ability

pass Emily to call on over financials. for I'll update an the our Now

Emily Reuter

Thank disciplined great many we're having of across the longer-term to momentum core the bets, you, see business. so Fidji. It's investing staying our performance. areas our against and financial all service while on our growing

bit more on me financial results outlook. Now color and let provide a our

factors and strong really X%. XX% us growth our year-over-year, -- of quarter high order The growth value both GTV of EBITDA and delivered beating with X% growth QX growth orders in Order line of with was GTV a ranges. comprising We end the adjusted for was guidance our average size of that larger our while of over the driver basket time the basket few customers including mix a faster, orders. purchases and expectations, was quarter, were of existing higher new There in sizes cohorts a club making outperformance. drove higher key customer reaching basket our size bigger different

partners advertising to the XX% of in active X,XXX. our primarily pullback brands challenges and was to from we in their QX also This continue than see growth than This offset driven business. more growth of as grown emerging brands growth brand year-over-year revenue experiencing other more the on by expectations. we've certain platform number large outperformed from spend steadily our

of $XX $XX was our leverage. the million September We in levers multiple ability quarter net -- across drive quarter-over-quarter, of GAAP related in positive to we fundamentals our due also results the reflect across profitability includes XXXX, noise primarily delivered million, manage income P&L strong third continues following and operating ongoing of our XXXX. the to This and strong executive experienced reversals our board, SBC restructuring which QX which consecutive down to our in IPO and to

SBC to due while expect lap to higher levels to SBC we in continuing After seasonality. will IPO of we our quarter, QX normalize, begin anticipate

In million, operating the $XXX quarter, EBITDA generated and up year-over-year. year-over-year of XX% also cash up we XX% $XXX flow of million, adjusted

GTV guiding composition also $X.X orders to The are ahead, more restaurant to and GTV expects to year-over-year growth a contribution growth than of the driven billion, ongoing billion basket reflects Looking $X.XX orders. our we representing to from in XX%. by of service of It be size. our guidance QX strength growth X% continue modest core -- to

The million as million. percentage our ongoing EBITDA in EBITDA a adjusted We $XXX growth QX of adjusted are anticipated operating $XXX of is year-over-year GTV adjusted also guiding of to driver primary expense to leverage.

transaction Similar reinvesting to in prior opportunities efficiencies more to like revenue, incentives. quarters, service affordable driving continue while shopper we expect consumer in and options

our and advertising other revenue expect to also guidance. We year-over-year, line in largely grow GTV with

business is performing our Overall, well.

$XXX new our have completed to buyback and billion well and us strengthen grocery to online our as shareholder repurchases positioned authorized North This and scale of QX, is $X America marketplace critical why the share time. program. lead value in over in generate largest advantages a more operating we initial Our continue million

of had $XXX repurchased our and June more of of million outstanding shares, cumulatively XXXX representing XX% fully As shares diluted the at XX.X XX, we capacity. end than repurchase of remaining million

We have focused all lot of and profitable on driving momentum a build remain aspects of on to business our growth. across more

questions. will may begin. live With that, for up Operator, the you call we open

Operator

[Operator Instructions].

Colin Our Baird. from first the comes from question of Sebastian line

Colin Sebastian

given of acquisition quarters, of the the in appreciate first in the customer traditional for of acquisition, spend. off, some curious of couple I incentives really, marketing guess, that your questions. momentum and I the the how customer more consumers retention, dividing terms of you're with last balancing use business around resources we're some seeing the

thinking you're those resources? If you on comment how about could maybe

And seeing evolves, just as would environment, well. you're a that on then if lot be change that competitive secondly, in the the any given on of environment, competitive that as helpful attention the

Fidji Simo

of both take I'll Colin. Thanks, those.

there. focused On that new does the to extremely a seeing grocery on by adoption. we we're pleased have we to acquisition online on that focus heavy and be continue what first be accelerating customer continue one, And mean

the know for also we spend valuable. that end month, grocery because when customers At the which we the is to we up want we customer, incredibly same create habituate the getting time, entire habituated

have tactics allow tactics, attract both as we so habituate really that customers a both, us well marketing do new as portfolio incentive them. to of And

seen really purchase as monthly with and typical turn have into like on orders. these We million annual to us in year more XX average our a you XX orders great active for a opportunity look customers, that more customers have the start, released us latter customers we who the that infrequent may habituated that's much

of our existing both continue seeing through as of introducing build that well as we of drive new on a new we're you X-year we options through cases doing promoting And those a affordability as returns. all are customer that as restaurants, invest to and as users, incentives, to new acquisition as can long habituation users. We Instacart+ see NPV, do users well we all like habit but connecting use not these which also just through based that

question seeing Now much not we to on environment. your are environment, on second the change the competitive

category leading of small represent the baskets, of XX industry large XX%-plus with about the are even and of that basket more share -- because XX% incredibly the represent As share which we share a large of reminder, $XX baskets profits. XX-plus is percent of important

We see GTV of and into Xx industry we continue to approximately we that players. entrants better the at multiples new these that that means to large baskets, bring the compared activating are

Xx entrants. And large customers we we're that a see small than at about basket a basket into new better customers also turning these

see selection with large and excel to extreme this is basket. ability or share leading continue that we So category this service to translating leading our really and into strength in

Operator

next question. our for moment One

from next from Eric Sheridan of line the Our Sachs. question comes Goldman

Eric Sheridan

and inflation Would the of about love part ask health your advertising environment. budgets There's if CPG the lot a it's it okay, world. way on to or of get the how broader Maybe on your the lapping opportunities of advertisers data advertising a of broader your been impacts I on they're sort perspective CPG processing in back inflation and in the X-parter points the views year. post a landscape can

horizon. of second over solutions. And about, we advertising to broadly the push talk bit about little year, think Maybe the more the end be lot on innovation a the product a medium-term road you would the again, question of continue this as but forward map on part of

Fidji Simo

Thanks, Eric.

some quarter, where highly we're the CPG lot on the what and first talked were pull back it widespread. that are cut, tends be not advertising with seeing about first I advertising. large the business to because therefore we're be quite general, their and back we broadly platform what brands they last is that struggle a measurable in So on and side one so more consistent pull seeing from not performant we're to In

for I with X,XXX we're exciting in seeing pullback large strategy really the of However, and the the as the also that very emerging seeing that that strength lean emerging about results for diversifying line thing offset from in growth is to while are us deliver brands. brands that's large brands emerging has platform And our business great that really talked well. the more last now with continuing to is brands than quarter we the into at of brands continuing

we In with our on innovation our marketplace continue terms of to on platform, new formats. innovate ad

occasions innovation online of just it bundles, and which would cannot are really that merchandising us have CPGs that told where great This themselves quarter, announced do we recipes, out do store. we example to of a love a they

perfect pairing example, retailer for pasta hot dogs to advertiser, spinach, Like, advertiser lasagna summer to soda advertisers, into earn someone that their promote so barbecues. their advertising the able if recipe for can query an and having be you the they this searching for next a for way an brand particular therefore, spinach of have if

example drive great format about. excited of Fiat are is a continue so And and we the to innovation, this

capabilities. to And with better also more for advertisers. partnership ready it's we demonstrate others, have the performance. the to push We think continue going we our that incredible show our that with We be can that for to it's whether measurement Circana,

retail outside us retailers on on then partnerships to your new outside that one-stop add us what store, marketplace. we're platform we're doing a advertising platform allow advertising Carts have operated website. ads going and And for media XXX-plus of the point, medium can our both real Meta In have tools, real on also therefore, We a of that portfolio YouTube. an term, future, power make We we're CPG. with Caper ads on to our the shop on and to different and innovating our launched power inside of will

leading GTV. media X% foundation confidence gives us really that great our that's term long a revenue to and X% of network, another enormous retail of the target So for being add really in

Operator

One moment for next question. our

from from Bernstein. question Devani line the Our next comes of Nikhil

Nikhil Devnani

your to couple ask a about I wanted partnerships. of recent

you're first, please like elaborate ramp there's seems seeing the we in the you on explicit think So Uber encouraging. Could GTV how and on QX what It growth about order Eats commentary should is your an and in embedded outlook. contribution there?

for DoorDash respect it looks partner with to also partnership, Chase your here those exclusive now grocery then the is And cardholders. like

this So going And your to how is much of a to to forward? growth aim counteract be do how headwind you going challenge? this

Fidji Simo

with results. Eats. We're start pleased extremely the Uber early and I'll Nikhil. the Uber with partnership Thanks, with

see accomplish Uber, any restaurants in we're entrants For nationwide context, of we fully able a paying rolled strategy off grocery than billions out faster adoption with ramping by at new we mid-June, restaurant in partnering and years after to investment. pace in and our much see dollars we be

helps a existing business, that's that can data. including by excited that flywheel groceries. early order confirmed customers, seeing. Instacart+, So belief we're that believe new Instacart, adoption term, we our entire that our increasing really also the of the restaurants by customers working to And ramp driving about we're help This create by by confirms ecosystem can our grow and early data all why, frequency really of has for adoption been attracting entire restaurants longer

I we to fact Now may see Chase you partnership, depth our published shows yesterday that partnership you blog on you check Chase. post would what heard because the the a encourage of as existing with online,

had we partnership is change explain So clearly, deep what X. card redemption that year we the X/X has the happened their partnership on is in strategy actually grocery with of benefit but you an that we have to parts thing to in of saw some them. changed that a portfolio, The embedded

superior then see with service, these really to of customers people Instacart+ value such get these in we in the value of we lot they X. that have into So saw because a -- you a because and being us Instacart. converted And retail the partnerships tend year of value the

new benefits there as energy priority the new that's want to #X when because category customer highly users, leader, focus point in ongoing instead, have continuing directing retained towards us. much for what is So really we this acquisition users. isn't pay And you on to for a actually

a we offers co-branded And announced broader their yesterday, that's especially are see portfolio why and our part cards towards for you'll directing what that we much investments their Chase this of of hadn't previously allow and we tap into which front back, an cash offer customers think new fundamentals us to in XX% putting touched to is we of audience. going their a

with on pleased the new really result very very to next Chase partnership of us phase we're the and partnership So, are of we focus about the this to should allow date, customers. excited that

Operator

next our question. for moment One

line the question Post Justin Bank from comes of next from Our America. of

Justin Post

next positive the growth of outlook versus drive I be product wanted you're AOVs. And quarter, much with which year? looking suggestions what's to like that your How and grocers? over this for to offers, your and quite it ask positive it about of kind next able for could AOVs helping quarter. to looks flipped It you're is -- actually

Emily Reuter

is Justin, Emily. one. Thanks, for the This question. I'll that take

terms specifically. So of in

a In something the what's there terms try AOV, different more of happening of we outcome of It factors. an versus influence. what's that of to is specifically market driving in couple was

what So bigger cohort. customer new are happened do QX? faster reaching have than cohorts prior in that baskets We

So AOV. that does influence the overall

In purchases addition, customers happened, larger to over as has make always continue existing time.

on then a the AOV picture. So we or gives don't did a period. a in to bit overall composition We of happened have higher color the mix what to club weighs guide orders And But specifically that that the in AOV of go-forward you of as lastly, basis. GTV QX.

Fidji Simo

add an of the intentional thing. that club mix I is increasing Justin, will orders And

in time. And clubs incentives exceptionally Costco, past, will working we As are adopt them, customers has sort new retain that SNAP big our as EBT clubs highlight incredibly likely which doing with we particular, is upgraded you're adopting now, recently that in we our over you a Pro we Instacart direct result, in part we've been with towards see our launched the when club, mentioned to them a a that strategy, well of Storefront of definitely because to want website, more I incentive well.

They their sell membership Instacart+ custom our. sell we membership on side, on

adoption. higher depth share the the showing in of club partner really up So is

Operator

One our moment for next question.

Our line from Securities. comes next JMP question the from Andrew Boone of

Andrew Boone

guys nongrocery Depot add that? selection are to Sally do supply as feel your you as what Home talk added about in continue quarter. How Beauty grow it the with about your well consumer response plans you the you And to You and Can there. what's merchants?

Fidji Simo

Thanks, Andrew.

We what well existing ones as very as new as here, used seeing well. continue baskets retailers we're be were that that are to both to is with prime find What large these other retailers people baskets to place placing grocery they with often non-grocery with are pleased onboarding. we large because in

And has for so as a been them us that for benefit very and big well.

especially And an during of for seasonally once discover in that where to you're not like more these through last-minute category. are that coming use us, infrequent take that things like Day grocery and either purchases the the allows necessarily Valentine incremental it some of events again, retailers, to and them case is customers Instacart Instacart

when just Instacart+ the restaurants, adding in you strength lot you're cetera. getting of us verticals customers getting of now, then grocery getting cases. and And new is in take beauty, or convert frequency our new other use home their you're with This Instacart+ you're to into allows to a and so ecosystem these attract also grocery, that to improvement, et customers grocery increase not because customers buy

Instacart look that. from shop contributor you members plus at when at nongrocery retailers our customers to marketplace are size twice categories whole so retailers many and picture and average, this Instacart+ on an a shop are And as on

Operator

for One next moment our question.

question Research. from the Shweta line comes of next from Khajuria Wolfe Our

Shweta Khajuria

the cohorts? back seeing provide think color behavior? of mentioned a the you're your Could how Could improvements you bit this about of half cohort You the the that letter. magnitude how year? it we please in And in on talk should little more you about in

clip -- In with would at grown rest And faster speaking, for the it need overall grows then that the or a in than line platform. has of do What you the the see second generally the growth. in question mentioned to accelerate is Enterprise Enterprise you've line to on platform? past,

Emily Maher

the with Sure. I cohort can question. start

So thanks the for question.

of and is step performing business cohorts. terms obviously just first In all, is really -- to a health and to well, the take I that cohorts. the of an But obviously underlying want it the of indication relates of the of the back performance

about So and the delivered guide. growth XX% year-over-year in QX, QX excited we're

particular, a use platform. look Now talked very the significant XXXX, if to about folks because off as for COVID-related cohort came the were specific platform really, we specific churned cases they to headwind XXXX growth, a COVID the we backwards trends in to that the decline lot cohorts,

all of our point, are this normalized. cohorts, to and pleased at really behaviors new we're both Now have Their see really healthy. mature

company, an really for that of individual think as so reason, And input. an as important. any said really about specifics we cohort output, the I And aren't as not a cohorts as before, as

cohort And existing don't cohort. what is deepening that mean or What we XXXX by we have and with strategy infrequent any I engagement customers. is XXXX on focused around our are

we we we're in That So the a use year -- we're trying from about also to XX talked see the you a have get people about XX that deepening Fidji Instacart year with about obviously the customers that different We're really work have engagement we times but start single-digit X year. use seeing high to spectrum X Instacart in excited strategies -- times of use a that on to last monthly, we to year. million. people people full monthly that or millions means million X the time from earlier, talked

So around with there's engagement we're work a lot of cohorts. doing those

as Fidji We're in continuing earlier, mentioned we are cohorts bringing new new still from GTV higher that are to than In attract pre-pandemic. addition, users.

just overall, pleased the with picture. So really

Fidji Simo

correct. you -- take I'll on are the I question Now, Enterprise.

growth are and marketplace both seeing enterprise. We in strong

enterprise, we more have our which our and our do products, to HX up onboard that's so ability overall past been is contributing to retailer when more an I example, is Storefront and Enterprise looking you our in that, this solution, really GTV, get is mentioned. seeing do Instacart definitely faster with to are from system And a to faster I'm products to retailers we've like incremental in momentum we the retailers than therefore, to what for we particular as and XX able We growth. onboarded at and and to shift their revamped solution because what straight retailers

out That's not The was is what these mentioning separate. that are call I in businesses introduction. other thing I my will

Our like retailer Marketplace, Enterprise catering, apply business contributes like our ways business want like integration these helps all becomes really growth integrating marketplace on SNAP, many seamlessly you're because incredibly Enterprise to grows pickup, to and with you integrating it to a and in of with of your integrations an website, integrating that like Marketplace. doing the easy

have of more think Instead, both X think as and we deeply really business we with it like between needs X faster integrate so our to we the of fast. things. our And a other. and retailers virtuous go more cycle like Marketplace don't as grow Enterprise So than these it let's seen that

Operator

next our question. for moment One

Ross from Our from of comes next line the Barclays. question Sandler

Ross Sandler

of top Just of How down how guys following the ago? incentive The growing funnel? active, monthly bring XX growing I guess, like to up look on is to faster, that how are evolving top And million a the the funnel, compared that slower? meaning the did XX you funnel year program that comment. million people

off the question media. is And Instacart retail The opportunity. on then ads just second the

of front off-site about mentioned that sites the you're deeper in media you How ads? integrating opportunity for that You big social with. is

Fidji Simo

Yes.

year-over-year. report in mentioned we growing habituating numbers start as seeing specific is like me And it these continue to million. We on here, but the with as I let here mentioned So what ability XX our earlier. and Emily users, don't we're

our power also also incentive that price. competitive just to as to connecting you very take not restaurants, users these going your get that realizing Instacart a is entire I all so actually habit adopt, new habituate can of really these that really think are these cases it's start affordability initiatives like use we and what users seeing moved to grocery at which well as high but we you that frequency mentioned, users the to introducing are users

we're that that the which through loyalty service adopt us. compounds retailers, can really you of circulars, shop, really optimizing weekly weekly use a And end with doing state integration, having pricing realized that people fundamental to for digitizing a is and all

is for question your power it retail on still us. On media, nascent

a be impact fairly would it So negligible current revenue. on advertising

to ramp on a have it GTV. to piece different is Instacart. to path that target connect that the the fairly the because of between Meta one things at X% Google of getting take are X% ads significant stakeholders ads usually, time you These to of than that different our one plays on and our However, to to CPGs plays

motion, sales So put it's it's a partners. new we a sales that motion place need with to in

this have if you the term. us look to YouTube because giving for So to after NBCU could see really expand little continuing line And confidence what at Meta ramp to to of are Google year, with up we to partnership we in added have time that's last this, expand. continuing that. the in and long bit it Trade to prioritize takes from But Desk extreme business the that a pleased of the we're and we in us seeing results very the early partnership days terms to performance, of potential

Operator

our moment One question. for next

Sandler. comes the from question next from line Tom of Our Champion Piper

James Callahan

This on is Jim Tom. for

platform? So partners the the X,XXX, larger X% number I that just call a to follow-up we see advertisers opportunity on on brand We've seen from, ARPU about X,XXX the move ads. think or to goal, X% as we of active being guess do the it,

Fidji Simo

both. are partners. quite is onboarding more large that going mix What of we a It's brand in opportunity a seeing be to

the tapped to. having in the much think And why make number that's team, side this X our on you're In fact, both product well as from what we quarter very on advertising product we are onboard far great of increase did sales the with emerging in seeing partners the the easier as ROI brand last really side to there. and we markets on to increase is

of But and our seeing a across Many we like products the the shoppable result sponsored when come spend, with start then funnel. also onto the these realize value and platform, they that see spend really we partners them are and entire that of expand to the have might also discover displays.

And all expand ARPU. of we so really sure capabilities our to make that our and they over time, want use

So definitely that brands. lots with and as players large opportunity still well. out deepen of expand opportunities there with lot is there well call to I emerging as of a will

with fact back, the and really more are real out We results, large some and players that challenges performance fact seeing us, investment. we're called increasing coming down that have the their some shouldn't business, driving that are the in lot mask but doubling the players investing given large seeing a

why that's And front formats just capabilities a but put in point seeing of to they like to that should the more good we focus ROI it's on partnership, us proof so. be to that also investing and because to advertisers have demonstrate measurement not new new continuing our develop and do best you're

Operator

for question. our moment next One

Our comes the from McTernan of next line Needham. question from Bernie

Bernard McTernan

what's conversation thinking what's is Maybe other portfolio using or advertising from the view. different point solutions the and just retail platforms? Facebook to of -- companies. network of you for Is X the that from provide access to it CPG If CPG a YouTube, in around the we're to providing benefit follow-up offering about a advertising to media Just trying to think better? about operator all data their these

Fidji Simo

critical by sophisticated target but data, customers for platforms that's purchase and measurement, also closed-loop you first-party those of a know, data left cases that are and because right. can with meaning use ads on you very to Instacart, would activity as actually shown that within are go and on less our on kind I one for they targeting on exactly has Yes, of disappeared based these that X goes and their both the platforms prove a that, there's is to measurement platform say of in One whereas data in being us, that many this able lot has partnering obviously the ad. capabilities, leads with -- benefit.

side. targeting primary think use both are the solutions. these a and this powerful to And measurement to choose is have so this why side we advertisers on data incredibly And reason the

towards that, page. we an the brand to addition thing these Instacart In other pointing is ads offer that

regularly having sometimes they the the create to a can ad really, like really buying page, your on whereas as an from hands ads Instacart Facebook, looking buy that they in CPG landing you an a at right you product. go can and to on there have if point their it magical products hour, customer that's an website So a customer like clear don't CPG where the Instacart, the if you look and in that a product point ad cannot destination really you advertiser. means loop experience at or

and data great And partner to and increase so ad measuring the them. as by measurement of well destination we a performance optimizing act as both the as them a

Operator

One moment for our next question.

Our from line Oppenheimer next question comes the Jason from Helfstein & Company. of

Jason Helfstein

GTV up So XX% year-to-date, year-over-year. is

models still around barring X% cohorts? I pretty in economic next slow in are reason I obviously us impressive our big GTV of change any like mean like most conditions, there think any which should growth I what for commentary a if, years. X sounds the why mean, is given is

additional Any in Instacart+ follow-up. color color? second you GTV second any just activity contribution just perhaps can provide And a or other quarter to on

Fidji Simo

Instacart+, are and first take can we we're what On pleased with Emily question. seeing. very take I'll Instacart+ the

translate We seeing are but Instacart+ we're members members, to active also seeing orders Instacart+ our monthly growth growth base. of Instacart+ penetration customer within or regular in into in deeper faster

We we're growth that and that's that our continues Times on that GTV the specific we still think continues with and time about majority partnerships of because addition we're Instacart report increase to So and the with the that we more, is Peacock, of the can over confirm New to and grow really York grow. + with restaurants with something excited it's into that. of but the that's are translated don't Instacart+ We striking numbers, really value seeing.

Operator

One moment for...

Emily Maher

another Sorry, question. of that Gigi, was part there

Sorry. for question. Jason, Thanks, the

GTV, to the IN well that February combination would you strongly relates a as as some it of really in as we're of onetime the in would weather. did -- I benefits So as with leap remind from have year. of had the mentioned, up XXXX. I pleased first half everyone QX, day that GTV What number we've we momentum really bad benefit this benefits, onetime the of seasonal

So does the that into factor picture. overall

look as X forward, of QX guidance. quarters -- pleased double-digit with we you we're our growth. As We mentioned, very

business upsides in to try you're on that QX, downsides ground about past, play any seeing high doing the that's And really of here view double-digit obviously, think at the is we're out that as and seeing the and when look again. the have the our best in as We looking into day-to-day. does look said to end the of give the growth pleased we philosophy range range outcomes. what we've at data range. As we're is the guidance But of we we're our

the really the we guidance the dynamics we've comment So on said But to continued next in already, based term, see that we momentum the talked beyond you that data the what Longer don't we of data, of that engagement all that's what today. good cohort we want we're acquisition customers. seeing range the quarter. about whether we've mentioned, dynamics in feel existing continued is about given have

So comment at I'm time. longer-term the point on view not to going this in

Operator

our for next moment One question.

comes line question the from next from Our Kelley of Stifel. Mark

Mark Kelley

to to really want quickly. go advertising business back I the

down just just business. might kind to You've that go that's you opportunity retail if their of got shut media near-term be a Microsoft I'm able think you after? curious

then there markets have that a specific any with is or remind now need second the you resonate you or establishing think will us make outside growth investments outside U.S., right to U.S. are on you as of you And geographic focus you if that the think more something that can the one, if you footprint the product

Fidji Simo

So This have it parties, is specifically, clear not the business. stack the up other to gives available scale really product also commenting we advertising businesses a players and our to and would standing advertising Microsoft at entire other to that on that but take that retail very or I make in the retailers that market really whether that's question, is that up I'm on doing signals in designed media stand these want say hard.

that We successfully. have done

excited add years, can the fact course sites. these take investments that We the we to of retailers and to over the our we're many about have made incredibly and now and investment scale by other these offering

while an of to a them allow line shop. really becoming create expanding immediate our and And one-stop business also scale new

retailers market fewer platforms that think CPGs deal So I And because does to really with to we're from going help more and want retail both smaller this technology and are are fragmentation bring to us and going benefit the I the see us want scale the of more want at would say to scale. table media we to and demand. on network to with partner

that. excited we're So about

The only market a there's penetrated focused opportunity are international American is XX% very the on category online, we On massive there. because are clear we growth, market North leader. the

So we to focus want penetration really on there. deeper driving

the Caper with of in-store are However, the way we Austria overall that be international general, U.S. starting ALDI like grocers our in Caper same can that in products. excitement about to bring. And a courses generating Carts see suite capabilities are lot Carts of excited

store definitely transformation, with expand opportunistically, online, think so in U.S. digital all store just especially are we that could international at And be not but their are very we because retailers looking the dealing as from interested in their as markets. technologies this might technology deploying inside these that to well. the easily retailers

Operator

One for next question. moment our

line comes question from of Citi. from Ron next Our Josey the

Ronald Josey

asking of million I'll I think comment year. repeat how whether come launched back, might the led because gotten XX Fidji, the love to like who like to this on the try part so different evolved customers the behaviors it. that a want and earlier, based on at year past go used Would to the I seeing. platform have Instacart you're tools of back, the hear I back your of have in you have and question a the incentives go has way wanted to Instacart data have I the on team they improving the know has past to over these rates thoughts users many

question million. on that's the X So XX

it I take they rates the we the or these wanted I Is the would update delivery the would to once rates to team incentive process driving maybe get And made. on the Is quarter. in to love improvements? there sequentially take be store relationships? drivers helpful. it third about for Emily, Any again, here has hear details expanded consecutive of then changes that talk terms

Fidji Simo

front And number. XX us we success. whether these we we're new a know, clubs, of mentioned adoption quarters growing whether restaurants that's formula to customers, great been this Ron, situation. really seeing I it's trends in deploy that's know our putting retailers million you focused in new works, of is the adoption much new towards -- made whether that's in it past that has for of with incentives habituation definitely whether easier as platform, which Instacart+, very good have launching verticals, incentive about on

giving frequency a confidence their users to ability us this over of in of our improve these is All lot time. get to

we mentioned reminder, orders XX these us. active that, a orders yearly a already year As placing but are with

something every a matter to of they that connecting So which all in it week, getting really afford them realize is weekly can is of the shop that the to ways them compounding frequency the also like -- kind for restaurants so this see the of frequency can And them higher we that. making use them. afford can more then that cases discover they

were now that in bigger about in habituate So, the place have funnel we and active a we that I But top users we past, represents talked a opportunity monthly primarily tools of our think big that the kind the a that have to it's opportunity do massive power because much orderers. can we so. of

Emily Maher

about Great. And I'll question rates. in jump on the take second

have quarters. makes for we was. same to for lot expanded the trends note pretty expansion. right, of couple you're sharper we've rates of And take it the been would quarter last couple look a a that last rounding seeing it the that I So continues a than of The modest last bit that was be quarters actually

drive of to terms the results at time. And really the order the drive from day, being same This the of at multiple order this storefronts level the positive goes large make kind batch this Fidjis same the density. point of is side, marketplace of reinforced that white -- label this by our store back to which to earlier. batches see sort rates, to deliveries. to happening we So at continuing that's by in shopper make end of really density on able And our the only that payments efficiencies first, being driven shoppers

we that benefits At continue. that continuing of in the it take parts decided there, of and we other the to efficiency expect reinvest have So time, to to see same and business. much

incentives, in also to invest we investing in about talked we're portfolio. incentives have We product past, but our targeted the and continue in

So different affordability saver leaning folks schedule or mentioned delivery of being to free. pickup day into that that options range we're options we options of some have allow in the the like later

And so that take rates. in shows up also

said standpoint. I've pleased is, say I'll we're are transaction thing this revenue last really a we the where previously, from Now with

the half already. in of range We are top our long-term

And so to and transaction expect be right. the I revenue for up purely don't really to that reason,

revenue quarter lean sales because show leaning seeing in that by around fact more better move really running into in transaction return. something heavily marketing, that's a driven number there day-to-day, the could and are paid in in like of the X and That's we're into decisions versus terms making up this month-to-month incentives expect more we're time, of that we're meaning over We business, we to heavily may up which how marketing. shows going

certain are portfolio. leaning As the I shows making mentioned choices across transaction earlier, price in options into revenue, these we're that up

transaction move see over time. the end day, around why, at you of revenue so the And that's may

Operator

next question. our for moment One

question of comes Morton MoffettNathanson. Michael the next Our from from line

Michael Morton

Instacart+ But Two, could, post know would on yesterday. Nikhil's Instacart+ or a Chase How maybe many following be X up then cash out or appreciate to of members. earlier, but if as commentary. members of I how many call are for helpful self-paying partnership if could you size question bought those the are for would contextualize for part I maybe the some kind love us of that back

they as It these in tomorrow. someone some country are they out their What store want big possible? pay in show rolling to the And in the every You it you theory, right? holy you'd then can on sounds of it. to as advertising, picture cart Carts. factors put and of fast Caper them have the the impression, In for grail closed-loop restricting grocery see like an then

would love some more learn So I that. to about

Fidji Simo

no Instacart+ Thanks, would say Michael. just means general the is drive question, for want to sure in I the lever to us that's but why in biggest I Chase, understand partnerships adoption, On but a make driver.

is As of across a -- and one. big I IC+ strong across paid but very not earlier, zthe the seeing board we're all memberships, of that's but just one adoption tactics really and levers, partnership of mentioned

so that. just I clarify And wanted to

Ads. on In your and terms Carts question Caper of

we store you the them represents agree best with able to holy it about the and to really and ads excited that see We of see that high out. rolled see the measurement, want roll to fast when NPS lot grail higher possible. advertising online book We bring completely have of as of consumer about a out are we are XX. these foreclosed and it, being well take score and So as of excitement really as Advertiser average excitement retailer basket very as sizes. We

So we're seeing. really we're excited by what

costs heavy of a lot retail At stores. roll out the to time, of it's same operationally in

system. to loyalty point-of-sale integrate integrate our with You system, of have your all them partner with to with

for news we when massive that for our marketplace and power that good own start So we having have having done is that for their done operated a site. head

enterprise accelerates as faster of but ability their deploy our we their to into into still of you these integration our sales cost this these new we if way as things. stores integrations, were and team that requires it hadn't of So done stores. training all their all to -- systems it IT physical with than incremental well therefore have do and

gain interesting go year, for expect need think rapidly be this that sense, carts a to on. of to thousands we advertisers advertise the that So will that fast you scaling And to to continue of from scale deployments that next give and on for we to year. to very hundreds carts deployed we're going we

retailers in doing really now we're their couple about retailers and these stores. I of large seeing really stores small. excited demand the in mentioned parcel letter matter So then go both of just and that. well and with to that sure making high start this expand really couple it's from a rollout a the with a a We're rollout, of

Operator

question. One for moment next our

LightShed the Our Piecyk Partners. of next the line from from question Walter comes

Walter Piecyk

next higher a is excuse know drill expect what type terms the in growth you give can just of be increases noticeable just there down question the than that, I maybe sequential of the was on second relationship? and there greater color, impact then there. there is the what themselves, in Uber AOV. early. tips. of price a just if AOV? And Do groceries if kind more the to could and on just apologize impact anything I had about but the addressed results first from decreases, any you of was you quarter's me, I on talk you Was were mean, offsetting this question, earlier, if Uber

Fidji Simo

for Great. on I AOV. question can Thanks in. jump the

relates of of factors. So AOV things we to were different it couple on a specifically, QX couple a that highlighted as

going So on an some to in of item and not them individual a moment. I'll to but get what's are that basis, broad-based in necessarily just really specific

So first just cohorts our actually basket customer that reaching are new is faster. bigger sizes

that resulting AOVs blend higher So is as overall. in, they in

is is have that Our do a lastly, higher existing customers we've are club also and continuing to make then And larger we over mix purchases higher in. blends that of and overall. time, always AOV which trend a club that seen, orders

So will blend in. that

though, that believe terms phenomenon. continuing item sort broader this we troughing, really don't peaking the In price is that are specific individual to we number individual meaning basis of and of see an or items picture, inflation of price

bit they're scale item AOVs the expensive that's because more items, higher, not mentioned higher, are getting club are might largely be As I and bigger. the because club items are you of because earlier, club prices a but

GTV what So commenting the to expect seeing. see on And of QX. Thank really specifics composition we the you. forward, overall, what we're in for going that that's reason, we're not of

Operator

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

You disconnect. may now

Instacart (CART) 6 Aug 242024 Q2 Earnings call transcript