Instacart announced strong revenue growth in its first quarter earnings report released Wednesday, which showed total revenue of $820 million for the quarter, up 8% year over year.
Advertising and other revenue came in at $217 million for the quarter, growing at an even faster rate of 9%.
Gross transaction value was up 11% year over year to $8.3 billion, and the total number of orders came in at 72.8 million, up 9% from a year ago.
Meanwhile, transaction revenue stood at $603 million for the quarter, up 8% year over year.
The San Francisco-based last-mile delivery company also reported strong results for adjusted EBITDA.
“Adjusted EBITDA of $198 million was above the high end of our guidance range of $150 million to $160 million, primarily driven by higher-than-anticipated GTV (gross transaction value) and lower-than-expected adjusted operating expenses,” the report noted. “It represented 2.4% of GTV and 24% of total revenue and grew $29 million or 17% year over year. In Q1 2024, we also generated operating cash flow of $105 million, up $35 million year over year.”
The financial outlook for the rest of the year is a projected $8 billion to $8.15 billion, which represents a growth rate of 7% to 9% year over year.
Instacart’s adjusted EBITDA outlook came in at $180 million to $190 million, the company reported.
Instacart CEO Fidji Simo said the company’s scale has helped secure its growth.
“With the largest selection of grocery retailers, and shoppers often at or within a mile of
the store, we can deliver more of what people want at the speed they demand it,” she said. “At the same time, we’re increasing the scope and reliability of our service.”
The company made news one day prior to the report, announcing a partnership with Uber to include its Uber Eats restaurant delivery portal on the Instacart app and website.
The company followed the news in its earnings announcement with the news that it has promoted Emily Reuter, a former Uber executive who joined Instacart in January as vice president of finance, to the role of chief financial officer.
Reuter succeeds Nick Giovanni in the role.