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.

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