Maplebear Inc. Q4 FY2024 earnings call

• Customer Focus: Launched new service options (Super Saver, Free Pickup), expanded family accounts, optimized marketing/incentive programs, grew user base, and increased order frequency for users.
• Retail Partners: Developed industry-leading solutions (EBT SNAP Acceptance, loyalty program integrations, digital flyers), with these covering over 80% of GTVs. Drove double-digit growth for retailers via enterprise solutions, onboarding 30 net new retailer sites in 2024.
• Brands: Helped brands with multi-channel advertising, having over 7,000 active brand partners and over 220 Carrot Ads partners. Performance metrics like ROAS, click-through rates were best-in-class.
• Innovation: Driving growth through selection, affordability, convenience, speed; leading in category share, with over 70% share in baskets of $75+ and strong conversion of small to large basket customers.

In Q4 2024, Instacart's GTV grew 10% year-over-year. Transaction revenue increased 10% year-over-year, and advertising and other revenue also rose 10% year-over-year. Adjusted EBITDA was $252 million, exceeding the high end of guidance. GAAP net income was $148 million, up $13 million year-over-year. For the full year 2024, cash and similar assets stood at $1.5 billion, and cumulative share repurchases in 2024 totaled 46 million shares for approximately $1.4 billion. Revenue contribution across segments: customer-related initiatives drove user growth and order frequency; retail partner solutions like EBT SNAP Acceptance, loyalty integrations, and enterprise solutions contributed to retailer growth; brand advertising saw over 7,000 active brand partners with a $1 billion+ annual run rate in Q4.

• Q1 2025 Outlook: Expected GTV between $9 billion and $9.15 billion, a year-over-year growth of 8% to 10%, with AOV decline primarily due to restaurants and the $10 minimum basket feature, resulting in orders growth outpacing GTV growth. Adjusted EBITDA guided to $220 million to $230 million.
• 2025 Strategy: Targeting stock-based compensation < $425 million in 2025, with Q1 being the lowest quarter for stock-based compensation followed by a step-up in Q2. Committed to steady annual adjusted EBITDA expansion while aggressively reinvesting in growth initiatives.

• Forward-looking statements subject to risks and uncertainties detailed in SEC filings.
• Macro environment impacts on advertising revenue and average order value.
• Seasonality in advertising and other revenue, with adjusted EBITDA expected to decline quarter-over-quarter in Q1 due to typical seasonality.
• Operational challenges in ramping up the deployment of Caper Carts across retailers.

Q: Doug Anmuth with J.P. Morgan asked about key investment areas in 2025 and how to frame adjusted EBITDA expansion.

A: Fidji Simo discussed core investments in selection, affordability, enterprise solutions, and advertising innovation. Emily Reuter explained that adjusted EBITDA expansion is committed annually, with some quarter-to-quarter noise due to seasonality and the need to reinvest for long-term growth.

Q: Eric Sheridan with Goldman Sachs inquired about the platform set up for grocery vs non-grocery growth.

A: Fidji Simo stated that non-grocery initiatives like restaurants have a halo effect on grocery growth, with increased user engagement leading to positive impacts on all behaviors.

Q: Nikhil Devnani with Bernstein asked about Instacart+ economics and international enterprise solutions.

A: Fidji Simo talked about the positive economics of Instacart+ with increased order frequency and GTV, and mentioned international potential for enterprise solutions based on U.S. success.

Q: Ron Josey with Citi asked about affordability investments and Super Bowl ad impact.

A: Fidji Simo detailed affordability efforts saving customers $1.2 billion and ongoing initiatives, while Emily Reuter said Super Bowl ads are for brand awareness with early positive signs.

Q: Ross Sandler with Barclays asked about advertising pipeline, AI impact.

A: Fidji Simo discussed diversified advertiser base, new ad formats, and AI use in replacement accuracy and inventory management, driving customer retention and profitability.

Q: Jason Helfstein with Oppenheimer questioned advertising growth.

A: Fidji Simo stated ad revenue is expected to grow faster than GTV in Q1, with diversification and performance driving growth despite macro challenges.

Q: James Lee with Mizuho Securities USA asked about shopper supply trends.

A: Fidji Simo said shopper supply is healthy with good retention, diverse demographics, and ability to ramp supply.

Q: Michael Morton with MoffettNathanson asked about take rate and AOV.

A: Emily Reuter explained take rate factors including retailer/customer/payment revenue and costs, with AOV impacted by restaurants and seasonality.

Q: Brian Nowak with Morgan Stanley asked about 2025 budgeting and restaurant GTV.

A: Emily Reuter discussed active budgeting based on return on investment, and Fidji Simo noted restaurants have a flywheel effect on grocery with early adoption.

Q: Miles Jakubiak with KeyBanc asked about Caper Carts ramp and Q1 guide.

A: Fidji Simo talked about positive Caper Carts results and ramp progress, while Emily Reuter explained Q1 guidance factors including restaurants and $10 minimum basket.

Q: Shweta Khajuria with Wolfe Research asked about ad investments.

A: Fidji Simo highlighted performance, scale, diversification, and innovation as key ad growth drivers.

Q: Justin Post with Bank of America asked about subscriber growth and Walmart.

A: Fidji Simo said Instacart+ growth outpaces monthly active orders, and Walmart rollout is incremental but no expansion to report.

Q: Steven Fox with Fox Advisors LLC asked about future top-line growth.

A: Fidji Simo cited strong leading indicators in user acquisition, retention, Instacart+ penetration, and competitive advantages as drivers for future growth.