Instacart CEO Calls Q3 Its Strongest Quarter As Public Company

Benzinga Earnings10-30 00:50

Shares of Maplebear Inc. (NASDAQ:CART), which does business as Instacart, are trading lower on Thursday after the company reported mixed third-quarter results and announced an acquisition by DoorDash (NASDAQ:DASH).

Earnings Snapshot

Maplebear reported third-quarter EPS of 60 cents, missing the consensus of 63 cents.

Meanwhile, revenue rose 17% year over year (Y/Y) to $1.095 billion, topping expectations of $1.071 billion.

Transaction revenue grew 14% to $764 million, while advertising and other revenue rose 23% to $331 million.

Adjusted EBITDA grew 23% Y/Y to $342 million in the quarter.

Gross transaction value (GTV) increased 15% Y/Y to $10.528 billion, with orders rising 10% Y/Y to 91.4 million.

Operating cash flow and free cash flow each grew 13% to $324 million and $307 million, respectively.

Instacart repurchased $230 million in shares and ended the quarter with $1 billion in cash and similar assets.

Management Commentary

CEO Chris Rogers called it the company’s strongest quarter as a public company, citing solid consumer demand, stronger customer engagement and improving profitability.

He said Instacart is building an integrated grocery technology platform spanning e-commerce, fulfillment, in-store solutions, retail media and AI.

DoorDash Acquisition

Separately, Instacart entered a definitive cash-and-stock acquisition agreement with DoorDash, valuing the company at approximately $17 billion in equity value.

The $65-per-share offer represents a 26% premium to Instacart’s Oct. 22 closing price, before reports of a potential deal.

Instacart shareholders can elect to receive $65 in cash, 0.3372 DoorDash shares, or a combination of $48.75 in cash and 0.0843 DoorDash shares for each Instacart share.

Following its agreement to be acquired by DoorDash, Instacart canceled its earnings call scheduled for Nov. 5. The company also suspended financial guidance and withdrew its previously issued long-term outlook while the transaction is pending.

CART Stock Price Activity: Maplebear shares are trading lower by 1.40% at $57.60 at the time of publication on Thursday, according to Benzinga Pro data.

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