Instacart Beats on Revenue but Misses EPS, Suspends Guidance Amid DoorDash Deal
CART sits 78% above its 52-week low of $32.73.
Summary
Instacart reported Q3 revenue of $1,095 million, ahead of the $1,071 million IBES estimate, with GTV of $10,528 million and 91.4 million orders. EPS came in at $0.60 versus the $0.63 consensus, and net income was $147 million. The company suspended its financial guidance and withdrew previously issued long-term guidance, which follows the 8-K filed today disclosing record Q3 results alongside the DoorDash acquisition agreement. The guidance withdrawal reflects the pending take-private deal and limits forward visibility for standalone investors. DoorDash's CEO said the deal will help lower prices for grocery delivery and speed up delivery times, and that now was the right time given the strength of DoorDash's core business. DoorDash's CFO sees an opportunity to cross-list categories not currently available on both platforms, expects the deal to boost reach for advertisers, and expects to reinvest profit growth from the deal back into product.
At the time of this announcement, CART was trading at $58.30 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $13.5B. The 52-week trading range was $32.73 to $62.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.