Instacart (CART) 12 Nov 242024 Q3 Earnings call transcript

Company Profile

Participants

Rebecca Yoshiyama	executive
Fidji Simo	executive
Emily Maher	executive
Eric Sheridan	analyst
Ronald Josey	analyst
Colin Sebastian	analyst
Ross Sandler	analyst
Justin Post	analyst
Jason Helfstein	analyst
Brian Nowak	analyst
Douglas Anmuth	analyst
Nikhil Devnani	analyst
Shweta Khajuria	analyst
Andrew Boone	analyst
Ross Compton	analyst

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to Instacart's Third 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, Vice President of Investor Relations, Capital Markets and Securities. Please go ahead.

Rebecca Yoshiyama

welcome, Instacart's and Earnings Quarter Justin, Call. you, everyone, Third to XXXX Thank

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

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

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

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

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

Fidji Simo

results letter, Thanks, highlights chance to shareholder had Rebecca, our I a across hi, our we latest strong of and you read are momentum our business. everyone. hope and QX generating aspects the which all

adoption marketplace, the we're these use customers' market all that grocery as all as see of we is it's further across online grocery And know leading it accelerate We job still at And vastly online. cases. grocery a underpenetrated winning clear our needs. to

fill represents the of represent up clear weekly XX% the category of which the be baskets, in XX% large leader small to continue basket which both We industry industry. and orders

full end over a truly are spending us. with their budget habit building We time, grocery that customers so up

are customers' good customers are building other habits, grocery critical is retaining economics. some not grocery with which to items, they While platforms selling

really These this retailer by leadership our relentlessly deepening focused simply extending we're integrations. superior of integrations of our underappreciated secret the from and most remain and on sauce. advantage parts Our our are comes one our experience business

from our to that Through while affordable and leverage our I a like across quality able and we're faster, in examples marketplace, gave In higher e-commerce letter, more helping retailers our several websites this, their provide stores. deep their partners integrations technologies grow. service

people integrations complicated the for of these built over is features and the solutions, I and types new how X.X technology on only years. trust Most underestimate is deliver a with ongoing We're we it to ones complex our breadth to services leadership launch experience XXX these grocers. the with offer mentioned Sprouts last and critical.

industry the increases, tech true of specialized building grocery the data. increasingly investments with than which ongoing has transformed experiences a more ally on This a decade As and develop as is turned they of wouldn't to innovation AI, our build to in own. us on especially dream pace their growth of

To technological leadership, Anirban that Kundu our we our as recently further team Technology pleased Chief to Officer. I'm very added

to win in deep stores, right too. give of As there, Ally we're just but growth you the us not and online, our integrations also a know,

many deployment We an taken Caper grosses. look scale to our of for by a and we across markets including grosses with Caper to approach practices what forward I'm grocers, every continuing are I piloting to continue than our we've market year. deployments next the learned, honing local best excited We've regional to prove in different model segment. pleased broaden on Cart dozen and and really as national, progress on with more different

in we the grow and grocery. past we and we've but more have that lot well diversifying talked to time, ads, takes and with supply of work about demand since to progress appear. brands On as type and also on in terms us It are diversify. our really where ads different I'm we're promising between number excited as lot both room continue restaurants of where of to our on platform. the making flywheel launch the of build about the We're number results restaurants seeing sites early quarters, as in a we a work June, increasing

correlations market the who help are our platform seeing and and share. brand side, people build of how much strength spend brands platform. growing new That's and on discover between influences On simply faster work, overall demand purchasing doubling We among a the we habits. and see because see down brands emerging are sales than our their this rec how his

performance the strongly about feel we So of our ads. extremely

to well as demand. measurement are ad invest continuing also more formats, as tools campaign to management capabilities in We drive and targeting further

across formats Instacart expect beyond, also On and including the take the which can and of online to the e-commerce retailer and it diversifying by but card our and side, bring sites, our the fulfillment for more we further more across bringing ad to like partnerships work we also ones with to keep Market retail marketplace, Cut+Dry. XXXX we advertising supply expanding are or media don't In increase screens Thrive supply stores. best powered

and momentum incredibly generating all aspects of across grow stakeholders. I'm the of the we Overall, all our confident to on I'm our are execute about our our pie ability in business. excited strategy for

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

Emily Maher

on exciting short us for incredibly Instacart we time our and critical our opportunities Fidji. accelerate reinvesting long-term as an and down growth doubled It's partners. while you, advantages to Thank in at

EBITDA GTV growth most a high XX% me our was expectations. and XX% for provide growth outperformed delivered value revenue outlook. and consisting recent of of and our of beating end average order let on QX Now XX% growth a other orders We X%. financial the with QX quarter ranges. color year-over-year results advertising GTV really strong of also and of of adjusted more bit year-over-year, growth us guidance our both

for brands also discussed Fidji in the drive earlier to certain on platform than spend CPGs lean emerging the faster see reasons, to call. own reasons for saw continue on we specific growth While large back pull our overall their we

We multiple This P&L manage and year-over-year. year-over-year levers our also EBITDA results and operating continues includes profitability income drive flow adjusted our quarter our XX% of board, leverage. our delivered which fundamentals solid of consecutive fourth ability up of million, million, to cash operating XX% $XXX across across net to the strong reflect GAAP positive and to up $XXX

Looking to ahead, billion, of be $X.XX X% GTV year-over-year QX to $X.X we expect growth billion and between XX%. representing

to approach GTV the the our is a quarter. reminder, expect to range a land pin to within As to provide we that closest guidance for

holiday last in expect We this QX, in prior strong year's season we lap a year quarter. spend in we compare the sequential against step-up as as incentive especially meaningful

account from given Delhaize's owned impact and we small a recent their deliveries as And for for websites. outage Ahold we power operated

expect in adjusted online percentage grocery adoption. to a $XXX million options and line in $XXX sequential guiding a in are guidance as incentives more guidance a positive year-over-year We million. other service adjusted On offset and largely come advertising operating marketing we EBITDA of driver range adjusted GTV with and On by EBITDA expect to expense also affordable further reflects our basis, partially to from basis, revenue, our of in to seasonality grow as leverage. of growth as reinvestments this GTV QX primary other revenue to advertising the well drive

year. of in basis, begin and SBC On onetime due QX expect from starting the our don't and reversals grants. we ongoing we step in a refresh QX this experienced any timing up QX, that expect SBC quarter to have to notable will IPO anticipate normalize to we an like equity of QX continue now every also in our benefit In to we annual lapped

Overall, our business is performing well.

have $XX.XX. time. to largest well critical Our in positioned online repurchases million marketplace price shares, continue to shares, weighted America worth as operating $XXX bringing over generate average another scale a over value why our QX, and and shareholder just lead billion cumulative repurchased to more This in strengthen for of us representing advantages XX we North is $X.X grocery the of million our

As we increase program. of a capacity buyback $XX our $XXX we authorized of to XX, today million September that had buyback announced and million

more in shares will We our flexibility are in to additional capacity and repurchase opportunistically XXXX this to now confident and beyond. give execute, us ability

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

Operator

Goldman question [Operator Sheridan Instructions] from Our first is Sachs. Eric from

Eric Sheridan

about then strategic if some the against into building feed can an you the technology of And the of would supplier a talk deeper business, of depth little in think key I side to how technology continue bit of you the and Fidji, Maybe the marketplace when the with with go respect it your terms second of investments on we scale towards relationship to should side X-parter, investments of scale side to eye XXXX? that about continuing how on technology for of priorities theme, could. the retailers? part be

Fidji Simo

Thanks, Eric, the question. for

of depth of the most mentioned So is the of predictor with as letter, the important one I in integration retailers growth.

form invest we either new deepening in enormously this to takes advantage. So technology And the continue of why that's services. that

can at like those So bringing that have fast as one you twice able of These pick one think to retailers that Snap. the big [indiscernible] EBT integration platform, as that grow least services have up retailers those like on we to in virtual happen. been adopted are as see year where of convenience, will -- the of last

these So to of we services. unveil continue more

Enterprise are top connect and retailers allows underlying both platform business. systems with we that to building an that that, and of marketplace more On us more also our are technology from our

them marketplace upgraded was and platform, marketplace the build we if that have that when for applies the So and version a our is look future which same this advantage now to built on to platform Pro, storefront very of Sprouts, highly just really latest technological infrastructure performance, we automatically build of very a reach XXX for you big versa. it Storefront that having investment vice to on example, and as features at the technology Sprouts was

top on other of it retailers. that, to applies also And

airport really business compete how building better scale retailers of sell So to allow we our that's this much investment as and continue enterprise us to our really that really gain as marketplace technology all lead. by

So we this about how is it. think really

'XX, of in the generate we is technology. can If we continue that the that technology efficiencies the lot in to excited to in think about you business I'm about reinvest thing leverage investment a

investing so technologies, tech. in made of bets investing for investing in investing in-store a that and ad incentives, platform technology in terms and And paper in restaurants, the marketing robust we've really in

fuel efficiencies future business really All the of growth. that we in the like that is found to thanks

I'd us then the grocery be is the offline. that still because Caper, not very a talk big opportunity but XX% about And very, towards stores, I industry expansion is to mentioned remiss of for

both but builds their of so advantage technology for online is one XX massive and that a a business for experience their seamless platform, that And technology just and that built. not provide years we've customers integration fact that across us we online that is the really technology look and omnichannel retailers already an stores retailers on can the serve that an have platform that

Operator

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

Ronald Josey

has to XX% to I percent specifically, per progress and growth order also order better was we year-over-year. understand growth to order increased Fidji, want think see reaccelerate savings how the this led XX-plus I then basically affordability quarter But it to saw great and year-over-year.

affordability can the better understand, but us better help order each So both affordability. and drivers major Also, these for other underlying how call has then it, growth progress been we one any continued of order driving growth understand so

Fidji Simo

Absolutely.

So that the focused most on incumbent relies addressable incredibly affordable total and product. on address to really as you the been really we which on it's we've know, market, having this us think

integrations loyalty on the rely so the has into multipronged grocers, and strategy And with We program. been affordability.

quarter, you savings I is shop loyalty of points Kroger integrations. collect for good EBIT example another you fuel This where example these That's now when how create a Instacart. through like the can gave example. we of

quarter, to store. all similarly this example Kroger recent fire are Flyers weekly be where more at parity is items with bringing where going we price a a with are featured the

us of So now which and proud $X.XX, in the of the increase seen, are you've of. part savings are big, big that these for which per order, at affordability XX% big increase drivers really a we're

price-sensitive option an have And if structure. they is you And affordability we fee what delivery new Super know, people which we $X look we specifically our The customers. able us are in this as recently schedule do for other advance. product, with is our obviously own a to with for particular of job Saver, really launched this delivery whether for to is good driver

see that is found new X fulfillment they use orders. better X have retention. when new these better options for we price-sensitive pick of what And we out options, conversion, our And this users

of get is So for surfaced them of because sensitive, that's really find a order growth to at, savings future to conversion for retailers, and addressable allow and address good that be who option the savings will payment lot time they're and retention really, that us to people really us a good an really more options from tend door signal and come match price like, a brands from over increase and that total of lot market. the where

We're started. getting really just

there's that about XX% feel I year-over-year we excited future order but as but lot is to well. still of need we're very proud So do I'm affordability progress, map like very per a like strong, and road more really $X.XX with the

Operator

Our from question comes Colin next Baird. Sebastian from

Colin Sebastian

then about split of point. A between update marketplace platform? traction services, think could including these brands. advertising with that at for how by Maybe on the balance offering. I'm not retail maybe us portion and business questions be And how that of on more to the you're Eric's up time, if consumer omnichannel, you Fidji, can to this couple business, getting much onto Good the on lever seeing sure from enterprise I spending the more enterprise enterprise. to emerging path also the a great you drive And on are thinking following that's me. happens, the over add better to if there's the question the that a quarter, way. secondly, within as of media? coming the if standards I'm curious But guess, you hear you

Fidji Simo

Absolutely.

the We that we across a to capture of what the out excited well are to thing tell room I seeing compared The right think is that's and we just is of both. this are market we for understand that to And we lot of market a entirety that to enterprise, don't retailer. portions on focused marketplaces allows have going the So what are about the marketplace. both as is that both to because having model. very break who strong enterprise you now. continue can marketplace business But and on important enterprise us space competitors going business as people the straight were

the that thing much other Retailers the omnichannel only customer The are we're or with that customer. that understanding online-only is enterprise seeing is valuable than really in-store more

directly deploy are their much investing having retailers it So their really to when allows it. they customer lean to properties. benefit themselves do, to benefits really And they on us this not online marketplace because towards and as they in from acquisition own lower growing dollars towards are that us in starting because properties obviously, like cost channel

carts you could taking it's then a and and market, happening the XX% stores. we is to gives I with there structure look to And Caper and of mentioned it grocery in penetration, time. of of over took And see much for reach the XXX reported XX% market we could we we a a out of only lot where business the in get you stores, is quarter, the Obviously, XX like reach last smart their of decade me XX% inside there we as omnichannel larger on card represent of retailer see conviction we online think managed off, like paper that whereas smart think a penetration the sales that that still when with Schnucks of carts because when part one something faster. store. that, at much

market entire we as addressing So not business, for marketplace good all these about well. feel with just the a having but business enterprise reasons, actually very of our

path thing your that are to pioneering would question that. better actually second a retail is media. a with On I highlight that about The we standard

it helps very the network ads, the because We case we to really done have my in we DoubleVerify really first definitely with introduction. think I that's if [ receive have in that we for are one retail confidence accreditation ], as the of us standardization. we are high -- And our pushing have we MRC media performance work were mentioned of

other that. much in that more be we the measurement, our really, much been can to much to have why working the want we'll are standardization so that more because And invested measurements, so better that demonstrate be so standardized So we than like in able actually prove ads has platforms.

are industry important on them be standardized add X,XXX of websites marketplace, these platform us standards, all thing the establish developed measurement retail gets from to power we world technology because that very ad all many is by the The and with allow network appreciative that it's and tell the of not because that and really have well west brands on to I'll that want one the that as of they our XXX just that's with possible them don't platform. us our for last that our we really to we to of through retailer also websites, as And broader default. capabilities that benefit to to network these media they but standard subscale for hear they come us want reach dealing one apply

Operator

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

Ross Sandler

Fidji, with back to deeper going merchants. the integration

So twice why not the that it question latter about what's around Is what's are the begs adding reason as they slow at those just out with these as more of wouldn't it great. that those fast would help merchants, are of features, on features pushback on adding the growing stat be getting be is provider? that adding it another anything the the they're Or group? going movement could like you more from pace Is features?

I as of are that for rate. to so, into grows then going percent Any And back the most we that an believe of should reinvest And to that if of take pull transaction are nonexclusive upward some Is GTV, thoughts going that? Or have we a Emily, as on there? accurate? pocket business?

Fidji Simo

question, Ross. first your take Yes. I'll

There the features haven't and are actually that moved of a as year way as in last the really situation. retailers these is fast out. to a So actually added all lot very added it think mix they new of of the were soon features are that that retailers about

backloaded past. a onboarding features there's think these other of all in And so adding lot I to to marketplace the of And kind just time. still other slowly we're of and over the that we're retailers

pushing not always double-edged back is integration they're as that you that this on and It's definitely pace, The features. a said. is for, I've low, as know, of

always we hand, be moving would one faster. the On it wish

competitive creates or that with, you're first. a going On the the and when they're go to because going to the other really line compared a means big that platform as other that pick platforms it you also platform first platform to they're hand, to in integrate advantage to

And that's where and a relationship trust that embedded get to all that IT of the features. dibs depth our we we're deeply these the these retailers prioritize the departments and so strategic strong integration and really gives within first to fact really call IT of advantage resources on us

So about we feel good that.

we these things. want accelerate tends to lumpy. it course, fairly always Of but to be

of Just Albertsons many a didn't with obviously where you time because example, business. to a lot had period fairly we give they an on their going long add was features in

then at example good convenience same months. With But is last massive Sprouts, the a features. all that the expansion, well a big a added virtual the efforts time, actually as few it's many other platform XX and lasted their like upgrade to we pickup in storefront months, where

year, the something because we're most within they on really always #X but want that technically that and this scale up integration at would seeing we're count pick do are as retailers them doesn't this with the once, lot partner. at a we with of always to partner working a So integration as fit

So to biggest bang they the get for if with going us. integrate they buck know the they're

Emily Maher

for Ross, Great. question. Thanks, the

your whether nonexclusive think would an revenue. transaction on was to and So as I relates on have toll it going that retailers upward question --

majority already and of a retailers as our first So are nonexclusive. today the foremost, reminder,

seen the more at bit transaction And retailer the also been business of side. that's couple efficiencies you actually back we in revenue. to in context just that to if on we've able that I us to been shopper have in I that related improvement that time, the to note to dive over the provide so wanted time. related had over look before And want deeper here. but you've a same last reinvest quarters, generate an revenue,

transaction past, invest think elements. fluctuations been there to over how may transaction note target. revenue gives in of forward. expect time, we're like in quarter-to-quarter there's what that on going revenue from I'd potentially half been that based little has upper we in to and we we and the a I for happening be context the business, choose continues number revenue transaction or might harvest long-term So actually also said of with in happy may We a different bit are. we've operating of the And our really that where as because within that what's different and be elements look

include from like includes transaction as mentioned, That harvesting efficiencies in also reinvesting I investments example. products. as It incentives So of other our things Shopper in an lower-cost and customer parts can revenue.

to multifaceted. reinvest do transaction in see really we negotiations, to I opportunities continue retailer, of a think So those us are range for And individual about when revenue.

white So contracts span label, cetera. et Cats, we're marketplace. marketplace, typically Caper We're that just a not advertising, negotiating on exclusivity negotiating

tends it's it as I pretty a -- suggest. the pretty so don't as be it's question would straightforward So think bespoke to

Operator

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

Justin Post

us key headcount for and side, could model where year. of the with you excited really some you year? on leverage you're Our showing initiatives are this maybe strong next the just investment is Maybe update about on

Emily Maher

in there. jump can Thanks I for the Sure. question.

our yes, we've non-GAAP particularly the that we're making, with really of So a OpEx. been of coming progress pleased leverage you've out lot seen

we know, the reduce that of XXXX. and will peaked you company a that do although restructuring actually in in I headcount QX headcount, As did did note QX

more holistically well invest. aggressively opportunity and decisions very deliberate And QX the where around took to of the overall managing costs been want at we structure make time. we've headcount as as the organization we since in look that So to

the but read of areas. in taking to meant priority then higher headcount strategic that looking headcount organization, And out

as another investing headcount include those example. Caper, brand things ad like investing So in in sales emerging

a said, leverage savings non-GAAP basis. think to that drive continue do over we So to time. do That go-forward we'll we on invest OpEx to definitely those continue headcount expect

Justin Post

year it. of areas to next with technology investment Caper Yes. any And Got think for stack about? or kind marketing or

the very is line to working technology what stack with on enterprise to marketplace. And our I've continues our so connect of our think come in all of that and these I omnichannel what retailers especially really create technologies us we improve, across what in-store is full platform really excited adopt that online, and technologies continuing across to can it's really really experience. and we're mentioned, about. That's full which are

add also can the would BD marketplace we side, that and continue we investment remains more of that really that and address be want to for addressable us I we on value the heavily a across incredibly total source lean relationship focused affordability, to of on big very so into market. because products

then ads getting to ad efficiency us lean do able to And growth, that we the steady power have of is thing technology to much And shop business. with at are one-stop knocking do opportunity media network so really into that's and and industry allows really is because seeing obviously advertising, the that on investment, to becomes ad retailers omnichannel our platform carrot the an across leaning that EBITDA a want retail success annual that exciting building to to driving that. we very that the we're but big platform that all into the door while the so and this finally, we're the touched obviously, want really platform many entire we across like continue thanks that we

Operator

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

Jason Helfstein

ask just one. I'll

a quarter slower seeing it anything mean, the on Or is around outlook more the So you're guidance? comp? obviously driving fourth is consumer conservatism? quarter Just GTV. any GTV that X fourth of there point a function I tougher the And detail general is

Fidji Simo

consumer fact, of strong Thanks. that track closely a No, look and seeing we we lot very at very we in points. And are demand. data

retailers you We meaningful of of trade you basis, on item, a being at of item haven't at types whether seen a with per look clubs exception look different strong. like down very notable it whether types

customers. the we EBT across to that now to are segments, convenience the non-EBT testament across or We do are that's behaviors different to that also And income able people seeing value think we and really them. provide the customer a fact

items comes called is particular, specific to out in this it QX, that a year-over-year tougher When we to the it comp. related really make

seeing in even from the But against we Delhaize's their recent properties. comparing the from year's small owned of and we deliveries impact in step-up got year. we're strong QX So last operated outage incentive because lapping demand spend last excited and what in Instacart+ of order otherwise going Instacart+ about in are strong we're up, to fundamentals growth going and holiday order consumer engagement monthly the remain frequency power sequential and also terms growth really up. in the Ahold orders, continuing active across outpace grow across subscribers

So feel the of very these business. across good about fundamentals, all I

Operator

of from Our Stanley. next Morgan question Brian comes from the line Nowak

Brian Nowak

the is X overall in et I long lot grocery, have first the after going mean , growth. cetera. X. shopper on I you a talked of runway about sort

quarter-over-quarter. flat roughly seems number shopper XXX,XXX the think I

Just one to I shopper the brands, the growth? sort emerging And could advertising sort key of about of on et look again? are GTV start us of seeing what you just a to moving the what second keys and or brands into 'XX, driving faster sort the pieces on into cetera. as But you're that are lot with advertising on Then X growth large the innovations next year? of X you business. going faster what can talk you shopper growing think the advertising than know there's durably

Fidji Simo

Thanks, Brian.

delivered many and orders list of being we want are So being And wait many, have overall, in be the shoppers our that tenured at is seeing cities fact, clear by supply an on healthy. incredibly in we majority to our tenure shopper all-time of shorter our I shopper high and shoppers.

more to the efficient we are by is what store. have already batching store obviously, of faster are positioning and being simply inside by shoppers the we're what's we that closer really doing So because happening the optimizing really delivery with time them adding doing shopper

We being mile have of the within now XX% delivered are or our X already inside store. shopper that of the store a orders by that are

shoppers. really of do is you're these actually us, out business we that's our to all shopper so of our why like the also It's grow and supply of reinvest. ready to continued what that fulfillment for for for game And that's And number we and total coming have not to efficiencies efficiently. reasons, to utilize the seeing are

tends different. the and more very dynamics XX% be shoppers or time the than to driving. not are gig economy like women and other store, the inside demographics, Our of very caregivers. much close is actually different different It spent XX% are platforms to

a been again, really shopper in all is have all-time And retention that at so the for tenure that very loyal reasons, of to out really carve healthy, reflected that just able we an is fact these supply high. shorter is strong,

about good efficiencies our driving the and there. really feeling ability supply to So continue

second question that the that that inside goes fact on many an thing you hands bit, when to gets share the say like of main first ad could powerful up. a think continue all back the pull is and if brands. demonstrate you stakeholders your really more, that to That little thing work accelerate, those is that measurement the that capabilities really I right the get spend invest performance important affected that is putting And a would need thing ads. little incredibly your share we your in of so revenue had On actually or innovation I we that have

And front so of built it across putting them proves help just I actually while case can large work for is that's so we what brands, really taking the I important. the of decision make and a wish small and right think one the that was we business in right stakeholders, have feature, it and the that their like magical lot

and informed although are what they want. these formats continuing brands to directly us also, are We new are telling formats, new by release

example, of have with a shoppable inventory certain products to like didn't occasions, and context, within for ways format, inquiries So market are recipes before. bundles, that a lot ad

get to to that company to buy of discovered. you all that's pasta for way query a tell and recipe, sauce advertise like and the lasagna for like now So that if for like lot be spinach example, you're a tends we searching you spinach, show kind recipe, have inventory, ad query that of with on ingredients the other the make particular doesn't can some of shoppable and it to but

formats And about so excited really we're like that. new

XX% you're a XX% have is of to We advertisers not pilot if an our out-of-aisle advertiser. seen example, ad recipes I aisle for aisle What impressions. of impressions mean that's new-to-brand and in by the of receive that pasta pasta, your sponsored out basically sales enabled

strong incredibly new So formats. that's result an on

in we're something new and to focused So industry that the very on lead formats really continue that we think work. terms can of

end we in then I Carrot power driver a beyond think which tailwind because for but Market, not other our really like big our in is some properties. rate. future Cut+Dry, GTG that the a very powering ads for without will marketplace, these cases, times just supply be actually And we up the be our like Thrive And business like will our marketplace. Ads that further mentioned a advertising powering finally, I many properties also driver if of on can big extending to

go gives Also apply excited tech with extend ad as excited retail ad partnership for to because on to or extend us to and Google, media time. over Trade more Desk business scale Caper, a that the and result, places superior our really to ads online more, Meta, the

Operator

from line Anmuth comes question the from next Doug JPMorgan. of Our

Douglas Anmuth

particularly One for a hoping and Emily for one more, the little could was bit just of you Emily, line. bottom some XQ dynamics Fidji. on through the walk

Just keeps understand Fidji, food margins trying in mentioned delivery. flattish And almost early EBITDA kind traction you what sequentially? then to of good

leading the could revenue. contribution to you anything as you're there hoping to case about use talk there's to add GTV on Just or seeing And that you directly platforms. going some of customers if opposed can the

Emily Maher

Sure. Thanks, question. Doug, for the

it relates positive ad impact EBITDA So have seasonality QX guidance, is the I as about had you past. do as we've it from in QX, the think that to way

where in the areas holidays. around the side tend to and other do you other the we invest have of equation, On

do So demand shopper sure invest for make we meet demand. supply to the example, in in we in supply to uptick seasonal-related onboarding have uptick the the that

committed feel so absolute to and really an gradual and We've on we've do to about annual EBITDA overall progression showing quarter-over-quarter-over-quarter we're from And that margin the shown improvement basis. good continuing EBITDA. an on basis, basis progression we on

dollars invest that. the we'll that above to have So continue and that in to we the to extent incremental business, beyond do

Fidji Simo

restaurants. on restaurant with the of And result we're question, pleased the very

we're restaurant clear, more the that happening increase end restaurants frequently, spending that we more would in and is And not seeing actually think people mean particular. just to case use when so platform. the So added use that we case, entire our of where you about grocery stickiness on this platform, be it case. on It's up who tear, overall adopt the but

business. -- that use creates the indirectly So investing in a also our in this invest very case, of for interesting in we by part grocery firewall where our new us,

we multiple run use not because grocery about business just as why you telling contribution all to cases. essentially of restaurants and cases. customers also that's X from habituate business more completely with we is So breaking our out and goal really across And businesses these are one the intertwined, these use are

that call are orders are basket much larger we adequate size and XX% as with interesting restaurants on that a than restaurant that's seeing larger higher baskets customer Uber of baskets higher the with seeing restaurant we than well their a were we as see platforms. is that's QX of thing result, what then said other strong delivery platform, very The families. being as having reflection to and us with us well getting as grocery on

restaurant the excited really we're real grocery into it. want for combined leaning to is than about again, we're of our case continue so penetration a platform see penetrate positive the which, strength business. we're And able of restaurant what excited are to case driving and also there the that use delivery use faster overall seeing And to

Operator

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

Nikhil Devnani

picture of to think the durability the into GTV Uber getting ask scaling about bigger How these better growth a low keeps trends one wanted you Your you're year. product growth. seen 'XX? I going double-digit GTV partnership. do on this We've

any that, continuing Or line think with not the in it Was to reason here? of So do And top quarter. to drive reflection is tailwinds, about a continue? momentum bit how then those to opportunities this a there that you you think specific related this should lean marketing saw? on you in leaned to like looks

Fidji Simo

Thanks, Nikhil.

making So we to quarters feel guiding think fundamentally the are better fact and of very X% good about XX% our our working. position And that right now our to of in a and I X that's in product reflection investments having QX. growth. double-digit delivered

allowing about which thing which excited us we I'm continue the about of how going terms mentioned reinvest initiatives. really that are make future, variety a better. think continue efficiency In products that affordability, aspect to is the to to big our we're to is in the a in We to of generate important and

ROI. Another mentioned, continuing you are we see marketing, as good just to is where aspect

efficiencies, to more in new to want as as accelerate it ways we new We to move and grocery really to them market gain customers lean channels continuing leader, creating category are job of growth adoption to because to see online. and we a our crack and

why into So that. and that, we're heavily we're doing leaning reason the that's

lever that's last we these continue initiatives, the lastly, new of which Caper, that then want and whether in are before, I And is restaurants, mentioned what promise seeing a is fueling. that's to whether lot

and that So driving across we about 'XX. our all picture, feel good really are map for of about sustainable growth road excited

Emily Maher

I the on sales in can marketing specifically. question jump and

investment in our this expense higher marketing slightly opportunity was of the year. I related specifically very we different QX, in holistically. we marketing, did there as Olympics about we the portfolio it seasonal one and invested And into we in marketing think our efforts that paid the And to some as and lean really for in the sales note but areas QX as portfolio, did to example in of had said You events. really past,

I returns. about and flex depending as regular think about into or the this be basis We potentially quarter. throughout we will a And or something marketing the fungible. think flex very so on highest marketing see we're into what our incentives do continues on pricing that paid would into best investments where to seeing and

an call systemic see particularly there being as in nothing out that of a I uptick, nature. bit So you did would

Operator

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

Shweta Khajuria

X, are these first enterprise as XX services. with pickup so alcohol loyalty SNAP solutions, adoption of one Among be second what EBT you Let Fidji, top My go? have the terms please. me And platforms? you where retailers, I the about integration is it adoption top like today is, you price and competition your one And or think parity. think your or retailers, or Where in the try can grocery then or services, could on price online parity is rate the parity price delivery among of do versus today?

Fidji Simo

to of we depends have but I them them, all you those. retailers, but value So have they it options example, don't well. is report of can these They provide don't that to all not programs, tell as lean they going we strategy of for for loyalty But on Like some across services. their customers. specifically many many may their like other what a have loyalty program. our And don't on a they're adoption, XX top if have into of retailers flyers, have

services our for so job way. is differentiated on of to that retailer value is And reflect their Instacart can the strategy customers add really and what a in a variety match create that to

SNAP. will applicable lot with example, are for like, with progress, that all. I made We've services EBT to say a of

have the Kroger, the now X ones and have missing. majority of But were Costco we we the we which added like We the with that example, majority year, of of for majors earlier vast where but were majors right have the similar added on around adoption we longer, retailers to now the applicable pickup, these this services big to services. in like deep been areas. have tend Very also that

question On on parity. your second price

a to at but just general. with as competition, reminder, our to we work retail closely both positioning we're platform on prices there, make competitive So in has but we on the against be decisions set very really the them price. right like our help where And on them

optimize based is prices helps on price-sensitive that Site which of dynamically figure their and ], called in For and example, their on the online we and really pricing which have less products are customers to really stores information. that retailers Ever price-sensitive categories out both software more adjust [ our

strategy quarter, and top retailers last they use change our reduce needed of Ever some for one price go parity their prices and platform the on Site to And concluded our banners. on example, and that we to that pricing of reported

that decisions. the to items of the to where pricing of are where out on then are helping we're their and the items items identify if the you that sizes example of like meaning them really value be that really go helping make right Ever Kroger going and retailers price also drive set parity Site identify all We And saw growth you there. pay the also rolling what price we at see items, key is those are weekly

was say would year I binary the a bit biggest that last I there is that seen the personally past, have of over like the in change decision.

decision. parity. how now price a granular to the retailers at entirely were more we so at or that prices, optimize on price not it's with But parity closely You work much

and parity You can items price on get some others. not decide to

but You parity your to regular your items. flyer, not can on at b weekly price decide

be at price parity because may in You want have you competition lot your where you can decide more more be to to some region. in competitive categories a

competition that by a the we're lowering also engage on is that's more like strategy for a seeing retailers more encourage Instacart. the react and and something for value want add as obviously prices, are seeing much retailers So we customer we tailwind really platform, increase sophisticated because to retailers to more we which

this going. where of feel all those good aspects, is across I So about

Operator

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

Andrew Boone

go I Instacart. wanted back to to

the Within talk the do knock Carts cards And broader are the picture single broader business And the how or into and grocery guys seeing out of there? Instacart every now bottlenecks about of opportunity Instacart a can you into guys right how a initiative, talk key just powering about What question you newer expand stores. bigger on then order, down? What's And you Caper really do environment? SMBs the that context are that there you distribution business? there? for

Fidji Simo

Thanks question. for the

what in And the Caper, stores we seeing. quadrupled in you available months. sense, last X number of give we're excited on a the we're carts So have to about really

really scaling are retailers phase more a the in coming. than we dozen more and So with at

that. about excited really So

is who retailers. a because no-brainer stronger and sizes increases obviously seeing case Caper, stronger are something the getting case business the people pretty makes for are much for seeing that is in that adopt basket we We which

helping with a larger case really retailers. to that's set of so the And making

in-store especially operationally things these most the biggest something I is when that the is that validate sure we time. the the to would they tell in-store start bottleneck seeing just rolling say want Like Caper retailers, to them by heavy making are impact data pilots, out going for system, we're operations but operations, we that to their fully technologies. and making with take already the we big lot is that sure have work all there's we integrated sure of for because to a integrated online our have of incremental delivery, integrate with across still with Caper a systems advantage which industry, these do make

as I'm and and the it a the So of incredibly the very retailer been like scale date both matter to like side, fit consumer right time. wells market and because all case the and of But is seeing business executing, with that rolling tackling. of side seeing retailers on take out more the now, we're all to But product already are blocking encouraging, just these more and continuing things advertising I case strongly just established deployments, side. has proving feel

So very about it. excited

retailers business a we point that testament technologies. of and for second business opportunity is there, thing your that On our the We fundamentally Instacart build technology huge scalability of of the Instacart want distributors something we doing. the do and with seen Gordon that which us that platform. can bringing now And apply to on to Services, continue this Food order, of is you've the part is

tax more X on orders we're a growing and to also And whether getting million last all continuing for things of business customers customers that Instacart. robust having are placing SMBs build orders. year. place number like more more them, in receipt, more We more export to it's contributing orders Instacart profile, to and these the solutions whether it's business the exemption, are of had now placing way are their whether business it's to We using in things

going Instacart business platform general. at and mentioned to that so on foodservice, business to the And SMBs Cut+Dry, which power companies also way service have a are they on I a advertising platform already then in purchasing active our food them leverage finally, we And that it's opportunity. worth partners BXB bars the X,XXX that advertising on consumer BXB food that is mentioning connects decisions distributors. leverage can that's brand fact to advertising an we restaurants, influence that advertise to has

applying So extend what well. of that more and retailers, now chain build fundamentally addressable excited across market for think kind in that extend naturally our as start take them total all result, of these consumers supply a and we to the aspects technologies will, upward but as because technology the these we

Operator

comes question from line Ross Macquarie. Compton of Our from the next

Ross Compton

it dynamics guess the for about as I become the of competitive Network of to Ads curious tries I'm Retail grocers. Media Carrot kind

of was [ shutted I that recently Microsoft it ]. think promoted IQ

]. you and of side you be had rate Instacart I the Any the to kind deep wins Criteo a Now the if play bottom market? across color any of win the Publicis and of factors X this are as in-sources, to kind the Kroger mean I on monetization You're was take the of what grocery supply seeing from some [ here rates seen help are partners? at your really retailers that against integrations curious grocers choosing to how

Fidji Simo

marketplace. because our Thanks, better we own that Ross. technology use on we an Great question. Fundamentally, are at ad technology we have

our format in So on already know the that our best marketplace. millions we business, they refine for technology and it's across customers across retailers own and advertising work and marketplace X,XXX ad because means tried of proven we our this we have

from the can grocers network come we other existing that you described of that them our on brands of with our platform go that, network. large and is on also have retail all to really ad demand, to retailers naturally We the then measurement that these top we these demand But to capabilities. not the extend best advertised already but technology, X,XXX-plus and come that with to whereas on

dollars So us, so join. more that supply, we to with attract large us. because and continue more to then to a very they convince demand coming more can you because now virtuous demand of by it can extend industry, placing more this reach ad to cycle and CPGs realize the attract really amazing segment as gross through we as extend our it's platform, them we really Ads we more And an ad Carrot and

the have demand own operated table. loop And that and business, and advantage strong as for Ads, against so don't we And one-stop first data this ad and and at this with that's players and a don't know their how can an bring of all come with XXX becoming that more that to the added competitive platform websites we party XX shop virtuous retail can don't incredibly optimize the see XXXX. do much partners banners We're retail have new result, to Carrot we on really in we with here nearly tech media.

Ross Compton

opportunity Like to X lot win the of look does spoke like? out? competitive the the tail, about a the long to guess what supply have those you more bake-offs? you side for And that every do on go going, X I get virtuous larger the against win up of like Great. to tender think incumbents supply at is And side years? really market or maybe flywheel but You in end, kind there there do

Fidji Simo

Yes.

of a lots there such clear, think Instacart are marketplace. to necessarily expand the the we dollars to And again, do the be already platform attract I have opportunities. we network strong within because need to not CPG

Instacart given always So our advertise in that they know performance. should

fairly a rest of not with to it a So with want also advantage I this retailers to grow large massive from seeing think we are we these not do the same them to where thing realizing brands this factor work can just but but momentum. tail, through subscale long And it's we're we and the out when play go are continue hearing hearing lot we're networks. prospects with of the with

a even less and will work more realizing more a straight retailers with will line. more to therefore, require and like them retailers And for somewhat and of large midsized go us platforms forces demand for drive their these will that bottom joining are lot lot their

to momentum growth I'm the that and So segment for of more sure. I'm seeing from think I with market pleased the come really here, there's

Operator

here. also you. session constraints, have Due concludes time for you Thank conference will conclude call. today's Q&A we Thank to This participating. our

disconnect. You shortly. may now

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