Instacart (NASDAQ:CART), following its initial public offering (IPO), reported a 14% year-over-year increase in Q3 revenue, reaching $764 million and surpassing the Street consensus. The company's Gross Transaction Value (GTV) rose by 6% to $7.49 billion, slightly above expectations. Despite incurring a loss of $2 billion, inclusive of a $2.6 billion stock-based compensation expense, the figure was less than anticipated.
The company's adjusted Ebitda witnessed a 120% surge to $163 million, exceeding consensus. However, operating cash flow experienced a decrease of $18 million to land at $111 million due to shifts in accounts receivable collection timing. Transaction revenue climbed by 12% to reach $542 million, while advertising revenue increased by 19% to hit $222 million.
Orders saw a 4% increase, bringing the total to 66.2 million with an average value of $113 per order. GTV for customers who joined before 2021 showed a year-over-year decline but at a slower rate than Q2. Despite acknowledging economic challenges, CEO Fidji Simo expressed optimism about Instacart's long-term prospects in a shareholder letter.
Looking forward, Instacart anticipates a 5%-6% increase in Q4 GTV due to larger orders and growth as inflation cools down. Adjusted Ebitda is projected between $165 million and $175 million, driven by seasonal advertising revenue growth. The company expects full-year GTV growth to be in the mid-single digits and adjusted Ebitda triple that of 2022.
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