Why Is Instacart Parent Maplebear Stock Sliding Today?

Maplebear Inc CART shares are trading lower in premarket Wednesday after the company reported third-quarter financial results.

Revenue of $852.0 million exceeded the consensus of $844.1 million. EPS of 42 cents exceeded the consensus of 22 cents.

Gross transaction value was $8.30 billion in the quarter (+11% year-over-year), and orders came in at 72.9 million, up 10% year-over-year.

Transaction revenue stood at $606 million (+12% year-over-year) and Advertising & other revenue of $246 million (+11% year-over-year).

Gross profit rose 14% year-over-year to $641 million, and adjusted EBITDA surged 39% year-over-year to $227 million in the quarter.

As of September 30, cash and cash equivalents stood at $1.44 billion. As of the third quarter, the company cumulatively repurchased a total of $1.432 billion worth of shares. By September 30, there was $68 million remaining in buyback capacity. Additionally, the company announced a $250 million increase to its buyback program.

Outlook: Maplebear expects a fourth-quarter gross transaction value of $8.50 billion – $8.65 billion and adjusted EBITDA of $230 million – $240 million.

The company noted that the GTV outlook represents year-over-year growth of 8% to 10% even as it compares against last year’s strong holiday season, as it laps a meaningful sequential step up in incentive spend in the prior year quarter, and as it accounts for a small impact from Ahold Delhaize’s recent outage given it powers deliveries for their owned and operated websites.

Price Action: CART shares are down 6.91% at $45.00 premarket at the last check Wednesday.

Image via Shutterstock

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