SAN FRANCISCO — Instacart today topped earnings estimates for its fiscal third quarter and delivered an upbeat outlook on growing demand for grocery and restaurant delivery services.
Instacart posted adjusted earnings before interest, taxes, depreciation and amortization of $278 million for the quarter. Orders were up 14% to 834 million.
The company also reported gains in extending its enterprise technology solutions to retail businesses. Instacart in recent weeks has introduced several tools for grocers, including an artificial intelligence-powered assistant capable of making product recommendations.
“Our strategy to accelerate online grocery adoption is working. We’re deepening customer and retailer relationships, expanding our ads ecosystem and launching innovative AI-powered tools across all aspects of our business, all while driving profitable growth," Chris Rogers, Instacart’s new chief executive officer, said in his first letter to shareholders. Rogers succeeded Fidji Simo on August 15.
Income from non-delivery transactions accounted for 29% of Instacart’s third-quarter revenue, according to the company, which publicly trades as Maplebear Inc. These include sales from advertising as well as its technology platform that provides online storefronts for more than 350 brick-and-mortar food retailers, plus a menu of artificial intelligence-assisted solutions such as shopping carts.
“We’re so much more than a marketplace. Instacart is the leading technology and enablement partner for the grocery industry — helping consumers save time, retailers run their businesses, and brands connect with customers,” Rogers said. “In a trillion-dollar industry ripe for innovation we power how groceries get discovered, bought, and delivered, and we’re just getting started. Our foundation is strong, our momentum is growing, and I’m confident we have all the right ingredients to accelerate into our next chapter.”
Thorvardur de Shong
Instacart also strengthened its advertising ecosystem for more than 7,500 brand partners, Rogers said. “Beyond our leading marketplace, which spans more than 1,800 retail banners, we work with over 240 Carrot Ads partners, and that number keeps growing.”
Examples include Instacart’s recent launch of Carrot Ads with Hy-Vee’s RedMedia network to power adds on Hy-Vee.com, the introduction of Caper Ads with Wakefern, and the launch of Shoppable Display ads on the U.S. grocery and retail marketplace of Uber Eats.
The majority of retailers that are exclusively teaming with Instacart use at least one of the company’s enterprise solutions, according to the letter.
“Winning in grocery means nailing the fundamentals — selection, quality, convenience, and affordability. Fresh food is the hardest part of online grocery, and it’s where Instacart shines,” Rogers said. “Our deep retailer network, data from over 1.5 billion lifetime orders, and our experienced shopper network ensures we deliver the same freshness and care customers expect from the grocers they’ve trusted for generations. And we deliver fast. Seventy-five percent of our delivery orders are on-demand, meaning they are on median delivered in 90 minutes or less, and approximately 25% of typical priority orders are delivered in less than 30 minutes.”
