Instacart posts Q4 results; Announces share buyback and layoffs

Jay's InsightTuesday, Feb 13, 2024 9:26 pm ET

1min read

$CART(CART)Instacart. (CART) reported its Q4 earnings, which exceeded analysts' expectations. The company's Q4 performance was driven by improved affordability, increased marketplace loyalty, and club membership-linked orders. However, there is some concern as the company announced it was laying off 250 employees. This is a shock considering the company IPOed in September.

The company reported earnings of $0.44 per share, compared to ($0.07) in the same period last year. Revenues rose 6.1% year-over-year to $803 million, surpassing the FactSet Consensus of $804.62 million.

Gross Transaction Value (GTV) for the quarter was $7,891 million, a 7% increase year-over-year. Orders for the quarter reached 70.1 million, representing a 5% increase compared to the same period last year.

The company's Transaction revenue for the quarter was $560 million, a 6% increase year-over-year, representing 7.1% of GTV. Advertising & other revenue for the quarter was $243 million, a 7% increase year-over-year, representing 3.1% of GTV.

Adjusted EBITDA for the quarter was $199 million, a 50% increase year-over-year, representing 2.5% of GTV and 25% of total revenue.

The company has authorized an additional $500 million for share repurchases and announced 250 job eliminations.

Looking ahead to Q1, CART expects GTV of $8.0-$8.2 billion, representing year-over-year growth of 7% to 10%. The company expects adjusted EBITDA of $150 million to $160 million, representing 1.9% to 2.0% of GTV.

The company's adjusted EBITDA was $199 million, which was above the high end of its guidance range of $165 million to $175 million.

The company's focus on improving affordability and increasing marketplace loyalty has contributed to its success, and its investment in marketing and consumer incentives is expected to drive profitable long-term growth.

CART"s Q4 report and outlook for Q1 demonstrate the company's ability to generate strong revenue growth and improve its profitability.The company's focus on improving affordability and increasing marketplace loyalty has contributed to its success, and its investment in marketing and consumer incentives is expected to drive profitable long-term growth. Investors should keep an eye on the company's performance in the coming quarters to see if it can maintain its momentum.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.