SAN FRANCISCO - Instacart (NASDAQ: NASDAQ:CART) reported a significant beat on first-quarter earnings, posting an adjusted EPS of $0.43, which was $0.52 higher than the analyst estimate of -$0.09. Despite this, shares of the grocery technology company fell by 3.3% following the announcement. Revenue for the quarter was also above expectations, coming in at $820 million against the consensus estimate of $790.68 million.
The company's first-quarter performance outpaced analyst projections, yet the stock's downturn could indicate investor concerns over future growth prospects or other underlying factors not directly related to the quarterly results. Instacart's guidance for the Gross Transaction Value (GTV) for the upcoming quarter is set between $8,000 million and $8,150 million, marking a 7% to 9% increase YoY. The midpoint of this range, $8,075 million, does not anticipate benefits from factors such as inclement weather or leap day, which had positively impacted Q1.
Adjusted EBITDA expectations are between $180 million and $190 million, approximately 2.3% of GTV. This represents an increase YoY in both absolute terms and as a percentage of GTV. The company aims to balance growth with profitability, maintaining the flexibility to invest in marketing and consumer incentives.
Instacart's robust performance in the first quarter and optimistic outlook for GTV growth and adjusted EBITDA reflect the company's commitment to driving profitable long-term growth. However, the decline in share price post-earnings suggests that investors may have anticipated even stronger guidance or have other reservations.
The company's leadership expressed confidence in their strategic initiatives. "Our first-quarter results demonstrate the strength of our business and our ability to exceed expectations," said an Instacart spokesperson. "We remain focused on providing value to our customers and partners while continuing to invest in our platform for sustainable growth."
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