Instacart stock pops 14% on revenue beat, rosy guidance

Instacart's stock soared by 14% in after-hours trading on Thursday, propelled by the grocery delivery service's robust fourth-quarter earnings and a positive forecast. The company reported a 12% year-over-year increase in revenue, with a net income of $81 million, equating to 30 cents per share. Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $303 million, exceeding the $292 million anticipated by analysts from StreetAccount. CEO Chris Rogers highlighted in a letter to shareholders that the company's focus on technology and customer satisfaction is driving increased growth and engagement on their platform. "Our commitment to executing what matters most to our customers is fueling strong momentum in both our marketplace and enterprise platform, providing us with a significant strategic edge," Rogers stated. The gross transaction value, which measures the total worth of goods sold, rose by 14% year-on-year to $9.85 billion, surpassing StreetAccount's estimate of $9.54 billion. This quarter marked the highest growth rate for this metric in three years. Instacart processed a total of 89.5 million orders, exceeding the expected 87.8 million. Looking ahead to the first quarter, Instacart projects a gross transaction value between $10.13 billion and $10.28 billion, which is well above StreetAccount's forecast of $9.97 billion. The company anticipates an adjusted EBITDA ranging from $280 million to $290 million, compared to the $277 million that StreetAccount had predicted. Emily Reuter, the company's finance chief, shared with CNBC that significant expansion in its enterprise platform—which welcomed 70 new retailers over the past year—has played a crucial role in driving up gross transaction value. She also noted a modest contribution from future growth avenues, including investments in infrastructure, international markets, and artificial intelligence.