Maplebear Inc. Q1 FY2025 earnings call

• Fidji highlighted strong operating fundamentals and innovation to accelerate online grocery adoption. Groceries are an essential, underpenetrated online market, and Instacart delivers convenience, affordability, etc. - Deep retailer partnerships enable loyalty, promotions, etc., strengthening the platform. - AI is a driving force, with 87% of code developed with AI assistance in Q1. - Recent trends show consistent customer engagement, robust demand across use cases, and price parity retailers growing faster.

In Q1, Instacart delivered GTV at the top end of guidance range, growing 10% year-over-year. This was driven by a 14% increase in orders, with transaction revenue growing 8% year-over-year and holding steady at 7.1% of GTV quarter-over-quarter. Advertising and other revenue increased by 14% year-over-year, outpacing GTV growth. GAAP net income was $106 million, down year-over-year primarily due to stock-based comp reversals, while adjusted EBITDA of $244 million exceeded guidance range.

• Q2 GTV expected between $8.85 billion and $9 billion, representing year-over-year growth between 8% to 10%. - Q2 adjusted EBITDA guided to $240 million to $250 million. - Expect ongoing adjusted operating expense leverage to drive year-over-year growth in adjusted EBITDA as a percentage of GTV, and advertising and other revenue to modestly outpace GTV growth.

• Concerns from brands about trade policies and regulations impacting marketing spend. - Macro uncertainty remains, though Instacart's performance-driven ad model and diversified advertiser base help resilience.

Q: On universal campaigns and Smart Shop, early learnings and consumer behavior changes?

A: Universal campaigns help emerging brands by auto-distributing budgets. Smart Shop personalizes experience, with 70% of customers having dietary preferences, and AI pairings driving higher retention. Emerging brands benefit from universal campaigns, and Smart Shop improves personalized discovery for online shoppers.