Instacart Reports $3.378 Billion Revenue and $457 Million Net Income for Fiscal Year 2024

Maplebear Inc., operating as Instacart, reported a significant financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $3.378 billion, marking an 11% increase from $3.042 billion in 2023. The company's gross profit also rose to $2.542 billion, a 12% increase from the previous year, maintaining a gross margin of 75%. Despite these gains, the company recorded a net income of $457 million, a recovery from a net loss of $1.622 billion in 2023, which was heavily impacted by $2.6 billion in stock-based compensation expenses related to its IPO.

The increase in revenue was primarily driven by a 10% growth in Gross Transaction Value (GTV), which reached $33.461 billion, alongside a 9% increase in completed customer orders, totaling 294 million. The growth in transaction revenue was attributed to enhanced customer engagement and fulfillment efficiencies, although it was partially offset by increased investments in affordability initiatives and consumer incentives. Advertising and other revenue also saw a 10% increase, totaling $958 million, driven by higher advertising volume on the platform.

Strategically, Instacart completed its initial public offering (IPO) in September 2023, raising $392 million in net proceeds. Following the IPO, the company issued 5.833 million shares of Series A redeemable convertible preferred stock, generating an additional $175 million. The IPO and subsequent capital raises have positioned the company to invest further in its technology and operational capabilities. Additionally, the company initiated a restructuring plan in early 2024, resulting in a workforce reduction of approximately 250 employees, aimed at improving operational efficiencies.

Operationally, Instacart's user engagement metrics showed positive trends, with a notable increase in customer counts and order volumes. The company reported a decrease in operations and support expenses, primarily due to reduced compensation costs following the restructuring. As of December 31, 2024, Instacart had cash and cash equivalents of $1.3 billion, indicating a strong liquidity position to support ongoing investments and operational needs. The company also authorized a share repurchase program, initially set at $500 million and later increased to $1 billion, reflecting confidence in its long-term growth prospects.

Looking ahead, Instacart anticipates continued fluctuations in GTV growth due to macroeconomic conditions and evolving consumer behaviors. The company remains focused on enhancing its service offerings and expanding its market presence, particularly in the face of competitive pressures and changing consumer preferences. Management expressed optimism about leveraging its strong financial position to navigate these challenges and capitalize on growth opportunities in the online grocery sector.