Instacart Shares Jump 14% on Q4 Revenue Beat, $81M Profit and Strong Q1 Guidance
Shares of Instacart rose 14% after the grocery delivery firm exceeded fourth-quarter revenue forecasts and posted its strongest three-year gross transaction value performance. The company reported net income of $81 million versus $148 million a year earlier after a $60 million FTC settlement and projected first-quarter GTV profit above estimates.
1. Fourth-Quarter Performance
Instacart topped consensus revenue estimates for the fourth quarter, fueling a 14% jump in its share price. Gross transaction value climbed to its highest quarterly level in three years as both consumer orders and enterprise platform usage accelerated.
2. Earnings Impacted by FTC Settlement
Net income fell to $81 million, or $0.30 per share, down from $148 million, or $0.53 per share, in the year-ago period. This decline reflects a one-time $60 million payment to settle regulatory claims with the Federal Trade Commission.
3. First-Quarter Outlook
The company forecast first-quarter gross transaction value and core profit above analyst targets, driven by sustained demand for essentials on its delivery platform and rising advertising revenue from brands leveraging its marketplace.