Instacart Reports 9% Revenue Growth to $897 Million in Q1 2025

Maplebear Inc., operating as Instacart, reported a revenue increase of 9% for the first quarter of 2025, reaching $897 million compared to $820 million in the same period of 2024. The company's gross profit also rose by 9%, amounting to $671 million, while the gross margin remained stable at 75%. However, net income decreased by 18% to $106 million, down from $130 million year-over-year, reflecting a decline in profitability as a percentage of revenue from 16% to 12%. The company attributed the revenue growth primarily to an increase in transaction revenue, which rose to $650 million, and advertising revenue, which increased to $247 million.

In terms of operational metrics, Instacart reported a 14% increase in orders, totaling 83.2 million, and a 10% rise in Gross Transaction Value (GTV), which reached $9.1 billion. The company noted that the growth in orders was driven by new customer acquisitions and increased engagement from existing customers. Despite these positive indicators, the decline in net income was attributed to rising operating expenses, particularly in research and development, which increased by 25% to $144 million, and sales and marketing expenses, which rose by 17% to $216 million.

Strategically, Instacart announced the acquisition of Marlin9 Holdings, Inc., a provider of e-commerce retail solutions, for approximately $105 million in cash. This acquisition is expected to enhance Instacart's technology offerings and strengthen its relationships with retail partners. Additionally, the company is undergoing a leadership transition, with CEO Fidji Simo announcing her intent to resign while remaining as Chair of the Board. The company is in the process of identifying a successor from its senior executive team.

On the operational front, Instacart's employee headcount has seen fluctuations, with a restructuring initiative in early 2024 resulting in a reduction of approximately 250 employees, or 7% of its workforce. The company reported a total of 3,250 employees as of March 31, 2025. The filing also highlighted a significant increase in stock-based compensation expenses, which rose to $66 million, reflecting the company's ongoing investments in talent and technology.

Looking ahead, Instacart expressed optimism about its growth trajectory, emphasizing its commitment to expanding its offerings and enhancing customer engagement. However, the company acknowledged potential challenges, including macroeconomic factors, competition, and regulatory changes that could impact its operations and financial performance. The management remains focused on leveraging its technology platform to drive further growth and improve profitability in the coming quarters.