Latest news with #Instacart
Yahoo
a day ago
- Business
- Yahoo
Instacart posts double-digit gains in Q2 profits, sales
You can find original article here Supermarketnews. Subscribe to our free daily Supermarketnews newsletter. Instacart this week posted double-digit gains in revenues for the second quarter and nearly doubled its net income, compared with year-ago results. The company said it is seeing significant positive trends in customers' use of the online, third-party delivery service as it leverages technology, including artificial intelligence, to create more personalized shopping experiences. Net income was up 92% in the quarter, to $116 million, and revenues rose 11% to $914 million, compared with the second quarter of a year ago. The company also said it grew orders by 17%, to 82.7 million, and grew gross transaction volume to nearly $9.1 billion, up 11% vs. year ago levels. 'Our efforts are driving strong user growth and higher order frequency while also delivering better retention, especially among new 2025 customers compared to last year,' said Fidji Simo, CEO of Instacart, in a conference call with investors. As previously reported, Simo is leaving Instacart to become the CEO of technology company OpenAI Applications in the coming days. Instacart has named Chris Rogers, chief business officer, to succeed her as CEO effective Aug. 15. Technology drives sales gains, efficiency Simo said technology is also helping the company streamline the onboarding process for new retailers. Instacart has onboarded 40 net new retailers so far this year, compared with 30 in all of last year, she said. The company also expanded its deployment of AI-powered Caper Carts at Allegiance Retail Services and launched new pilots at Wegmans Food Markets and Sprouts Farmers Markets. Sprouts, in particular, has 'leaned into Instacart's full ecosystem,'—leveraging a suite of Instacart's technology tools, the company said in its earnings report. In addition, Simo said the company's growing scale and its focus on efficiency have enabled it to improve gross profit per order to more than $8 in Q2. That increased profitability has come even as average transaction sizes are decreasing, due in part to the addition of more low-ticket restaurant orders through its partnership with Uber Eats. Emily Maher, chief financial officer and treasurer, said the company expects its Q3 gross transaction volume to be between $9 billion and $9.15 billion, up between 8% and 10 % vs. a year ago. CPG companies under pressure Instacart reported that revenues from its advertising business were up 12% in the second quarter, to $255 million. Simo noted, however, that CPG companies have come under increasing pressure from several directions. 'There is a lot of uncertainty in the environment,' she said. 'That's not just tariffs, but regulation at large, whether it's SNAP, food dyes, etc., and all of these put additional pressure on companies to deliver on their profitability objectives.' Those pressures are on top of other business-specific challenges driven by consumer preferences, she said, including fast-growing interest in high-protein snacks and breakfast food and in reduced-sugar and natural sodas, as well as the move away from highly processed foods. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Instacart forecasts strong quarter on demand for cheaper grocery deliveries
(Reuters) -Instacart forecast third-quarter gross transaction value above Wall Street estimates on Thursday, betting on resilient demand amid efforts to offer cheaper groceries through its platform, sending its shares up 9% in extended trading. The company, also known as Maplebear, has doubled down on its push to match in-store prices on its platform to attract value-seeking consumers looking to stretch their budgets. "On our platform, retailers that price items at in-store parity consistently grow faster on average than those with markups," outgoing CEO Fidji Simo said in a letter to shareholders. Its partnership with UberEats has also helped add restaurants to its platform. The company forecast current-quarter gross transaction value, or the total money spent by consumers on Instacart orders, to be between $9 billion and $9.15 billion, above estimates of $8.99 billion, according to data compiled by LSEG. Instacart, like its peers in the food and groceries delivery space, has leaned on promotions on its membership program to keep consumers shopping online, such as lowering minimum order value to $10 to get the delivery fee waived. Rivals DoorDash and Uber also forecast strong third-quarter results as convenience and affordability driven by investments in membership programs kept consumers ordering food and groceries online. For the quarter ended June 30, Instacart's GTV grew 11% to $9.08 billion, with orders growing 17% year-over-year. Advertising revenue rose 12% in the reported quarter, despite one of its largest brand partners pulling back from some ad spending due to macroeconomic uncertainty, Instacart executives said on a post-earnings call, without naming the company. Total revenue of $914 million for the quarter topped estimates of $896 million. The company also reiterated its target for year-on-year GTV growth between 8% and 10%. Quarterly adjusted earnings of 41 cents per share also beat estimates of 38 cents apiece.
Yahoo
3 days ago
- Business
- Yahoo
Peloton upgrade, Instacart order growth, GoDaddy falls
Josh Schafer outlines some of the top stories of the trading day in this Market Minute. Goldman Sachs analysts upgrade Peloton (PTON) to Buy from Neutral, raising their price target to $11.50 from $7, on the fitness company's new strategy. Also in focus is Instacart (CART), which reported stronger-than-expected gross transaction volume for the second quarter and hit its highest order growth since 2022. GoDaddy (GDDY) stock is under pressure after its second quarter results raised concerns about customer count and bookings growth. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's market minute. Peloton getting a lift at Goldman Sachs, the firm upgrading the stock from neutral to buy. Goldman also raising its price target from $7 to $11.50. The move comes after the company's fourth quarter results. Goldman citing potential upside from the company's new strategy, saying the exercise equipment company's platform is set to capitalize on health and fitness initiatives. Taking a look at Instacart, Instacart reporting better than expected gross transaction volume for the second quarter. The company also reporting its strongest order growth since 2022, and better than expected third quarter guidance. Lastly, shares of GoDaddy are under pressure despite an earnings beat for the second quarter. City noting concerns about customer count and bookings growth, as Evercore points out that some key metrics came in modestly below estimates. And that is your Yahoo! Finance market minute. For more on what's trending on Yahoo! Finance, scan the QR code below to track the best and worst performing stocks of the day. Related Videos Want to invest in an IPO? Here are some things to remember S&P 500 has a concentration problem: Why ETFs can't keep up Trade Desk nosedives, Twilio weak outlook, FuboTV revenue beat Serve Robotics CEO: Drones are 'complementary,' not competitive Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
3 days ago
- Business
- Business Times
Instacart posts strongest order growth since 2022, beats earnings estimates
[NEW YORK] Instacart posted its strongest order growth since 2022 for a second straight quarter and beat earnings estimates for the current period, a sign of resilience in its core delivery business after it rolled out initiatives to cater to price-conscious consumers. Orders grew 17 per cent to 82.7 million in the April to June period, the company said in a shareholder letter on Thursday (Aug 7), beating the average analyst estimate of 80.8 million. That is a faster jump than in the beginning of the year and it's the biggest since the third quarter of 2022, according to Bloomberg-compiled data. Customers continued to order more frequently because Instacart lowered the minimum basket size for free delivery earlier this year, chief financial officer Emily Reuter said. The company's partnership with Uber Eats for restaurant orders also saw takeout customers ordering on the platform more often. Reuter added that a number of grocers such as Heritage Grocers Group, Lowe's Cos and Schnucks have lowered or removed price markups on its platform to match in-store prices, which has also been conducive to deepened user engagement. Shares of Instacart, which publicly trades as Maplebear, rose 3.7 per cent in extended trading after the results were announced. The results show the strong consumption power of US customers who rely on grocery and restaurant delivery services, even as demand for them has tapered off since the pandemic. Delivery peers Uber Technologies and DoorDash similarly reported robust results for their delivery services on Wednesday. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Instacart posted US$659 million in delivery transaction revenue for the second quarter, beating expectations. Total revenue, which includes sales from advertising and enterprise software, was US$914 million, also surpassing the average analyst estimate. For the current quarter, Instacart sees gross transaction value in the range of US$9 billion to US$9.15 billion, exceeding the consensus estimate of US$8.96 billion. Adjusted earnings before interest, taxes, depreciation and amortisation in the third quarter will be US$260 million to US$270 million, also better than expected. Reuter said that Instacart has seen more demand and has become faster at launching e-commerce software for retailers, a category with higher margins. The company launched 40 net new white-label shopping sites in the first half of the year, exceeding the 30 it created in 2024, she added. 'We are seeing more demand from retailers, but also our ability to launch and scale these retail partners with our enterprise solutions is getting faster and better,' Reuter said. Those offerings, combined with advertising, now bring in about 28 per cent of the company's revenue, the company said. BLOOMBERG
Reuters
3 days ago
- Business
- Reuters
Instacart forecasts strong quarter on demand for cheaper grocery deliveries
Aug 7 (Reuters) - Instacart (CART.O), opens new tab forecast third-quarter gross transaction value above Wall Street estimates on Thursday, betting on resilient demand amid efforts to offer cheaper groceries through its platform, sending its shares up 9% in extended trading. The company, also known as Maplebear, has doubled down on its push to match in-store prices on its platform to attract value-seeking consumers looking to stretch their budgets. "On our platform, retailers that price items at in-store parity consistently grow faster on average than those with markups," outgoing CEO Fidji Simo said in a letter to shareholders. Its partnership with UberEats (UBER.N), opens new tab has also helped add restaurants to its platform. The company forecast current-quarter gross transaction value, or the total money spent by consumers on Instacart orders, to be between $9 billion and $9.15 billion, above estimates of $8.99 billion, according to data compiled by LSEG. Instacart, like its peers in the food and groceries delivery space, has leaned on promotions on its membership program to keep consumers shopping online, such as lowering minimum order value to $10 to get the delivery fee waived. Rivals DoorDash (DASH.O), opens new tab and Uber also forecast strong third-quarter results as convenience and affordability driven by investments in membership programs kept consumers ordering food and groceries online. For the quarter ended June 30, Instacart's GTV grew 11% to $9.08 billion, with orders growing 17% year-over-year. Advertising revenue rose 12% in the reported quarter, despite one of its largest brand partners pulling back from some ad spending due to macroeconomic uncertainty, Instacart executives said on a post-earnings call, without naming the company. Total revenue of $914 million for the quarter topped estimates of $896 million. The company also reiterated its target for year-on-year GTV growth between 8% and 10%. Quarterly adjusted earnings of 41 cents per share also beat estimates of 38 cents apiece.
