Instacart Falls on Disappointing Sales, Earnings Outlook
The mixed report stands in contrast to US delivery rival DoorDash Inc., which provided a rosy order outlook two weeks ago.
Photographer: Tiffany Hagler-Geard/BloombergThis article is for subscribers only.
Instacart shares tumbled after the company posted weak fourth-quarter revenue and projected lower-than-expected adjusted earnings in the current period, stoking concerns from investors about its ability to grow without hurting its profit margins.
Sales from delivery transactions for the last three months of 2024 were $616 million, the company said in a shareholder letter Tuesday, falling short of the average analyst estimate of $623.4 million, according to Bloomberg-compiled data. Total revenue came to $883 million, also missing projections.