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Investing.com -- Instacart (NASDAQ:CART) reported better-than-expected third-quarter results on Wednesday, with earnings and revenue exceeding analyst estimates as the grocery delivery platform continues to expand its retailer partnerships and enterprise solutions.
The company posted adjusted earnings of $0.51 per share, surpassing the analyst consensus of $0.50, while revenue reached $939 million, edging past estimates of $933 million. Revenue increased 10% YoY, matching the 10% growth in gross transaction value (GTV), which hit $9.17 billion. Instacart shares surged 8% premarket following the announcement.
Orders grew 14% YoY to 83.4 million, though average order value decreased 4% YoY, partly due to lowered basket minimums for Instacart+ members. The company’s net income rose 22% YoY to $144 million, representing 1.6% of GTV and 15% of total revenue. Adjusted EBITDA also climbed 22% to $278 million.
"In Q3, we delivered another strong quarter: orders grew 14% year-over-year, GTV increased 10%, and both net income and Adjusted EBITDA expanded," said CEO Chris Rogers. "Our strategy to accelerate online grocery adoption is working."
Instacart’s advertising and other revenue reached $269 million, up 10% YoY, while transaction revenue grew at the same rate to $670 million. The company highlighted its expanding AI solutions and enterprise offerings, including partnerships with retailers like Kroger, Good Food Holdings, and Sprouts Farmers Market.
For the fourth quarter, Instacart forecasts GTV between $9.45 billion and $9.6 billion, representing YoY growth of 9% to 11%, with Adjusted EBITDA expected between $285 million and $295 million. The company also announced a $1.5 billion increase to its share repurchase program and plans to enter a $250 million accelerated share repurchase program.