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Investing.com -- Instacart (NASDAQ:CART) shares jumped 12% in after-hours trading on Thursday after the online grocery delivery company reported first-quarter results that exceeded analyst expectations, driven by strong order growth and advertising revenue.
The company posted adjusted earnings per share of $0.37, significantly beating the consensus estimate of $0.14. Revenue came in at $897 million, surpassing analyst projections of $838.5 million and representing a 9% year-over-year increase.
Instacart saw orders grow 14% YoY to 83.2 million in Q1, the fastest growth rate in 10 quarters. Gross transaction value (GTV) rose 10% to $9.12 billion, while average order value declined 4% to $110 due to the addition of restaurant orders and lower basket minimums for Instacart+ members.
"We’re off to a strong start in 2025 as we continue to execute on our vision of building the technologies to power the future of grocery for our partners," said Fidji Simo, CEO of Instacart.
Advertising and other revenue jumped 14% YoY to $247 million, outpacing GTV growth. The company’s adjusted EBITDA increased 23% to $244 million.
For Q2, Instacart expects GTV between $8.85 billion and $9 billion, representing 8-10% YoY growth. The company also anticipates adjusted EBITDA of $240-$250 million.
"Our operating fundamentals are strong and allow us to continue aggressively reinvesting in growth while staying on track to deliver annual Adjusted EBITDA expansion in 2025," Simo added.