Grocery-delivery platform Instacart on Wednesday reported a nearly $2 billion loss in its first earnings report since going public, but its sales beat expectations and the company forecast “mid-single-digit” growth in the total value of transactions on its platform.
Instacart reported a net loss of $1.99 billion, or $20.86 a share, in the third quarter, driven by what the company said was “significantly elevated” stock-based compensation during its IPO. Revenue rose 14% to $764 million.
Analysts polled by FactSet expected a GAAP per-share loss of $15.07 cents, on sales of $737 million.
Instacart said it expected “mid-single-digit” growth in so-called gross transaction value, a gauge of the total value of products sold.
Shares slipped less than 1% after hours on Wednesday.
“We are confident in our position, even as several macroeconomic factors work against the online grocery industry: COVID is no longer a tailwind, consumers are receiving less government aid, interest rates remain high and inflation persists,” the company said in a letter to shareholders.
“Given our substantially larger scale, these headwinds impact us more than smaller, new entrants,” it said. “While we expect these and other factors to continue to dampen our current and near-term growth, they do not change our long-term view on online grocery adoption or our competitive advantages.”
The company, officially known as Maplebear Inc.
CART,
reported earnings as its stock price remains below what it was when it began trading in September, as investors remain hesitant to embrace IPOs.
Instacart, in its IPO papers, laid out a vision for the future where more people order groceries and other basic necessities online. But customer orders for the first half of this year hadn’t moved that much higher, and higher grocery prices have suppressed demand.
Moreover, the company faces some large rivals in the world of food delivery, like Walmart Inc.,
WMT,
Target Corp.
TGT,
and DoorDash Inc.
DASH,
which has expanded into grocery delivery. And it relies heavily on its top three customers to drive demand.
Shares of Instacart have fallen 19.9% since the company’s debut.
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