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Maplebear (CART)
NASDAQ:CART
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Maplebear
(NASDAQ:CART)
76Outperform
Positive Factors
Advertising Growth
CART's advertising stars were aligned with a +14% year-over-year growth, marking the first acceleration in seven quarters.
Partnerships
Growth in orders is driven by a partnership with UBER for restaurants and lowering the minimum threshold on free delivery for Instacart+ subscribers.
Negative Factors
AOV Decline
The 1Q average order value decline of -1.7% quarter-over-quarter reflects the downside of affordability initiatives.
Competitive Pressure
Competitive promotional pressures, particularly from Walmart and Amazon, may continue to limit transaction take rate expansion for CART.
Maplebear (CART) vs. S&P 500 (SPY)
Market Cap
$11.91B
Dividend YieldN/A
Average Volume (3M)4.74M
Price to Earnings (P/E)30.0
Beta (1Y)1.14
Revenue Growth11.34%
EPS GrowthN/A
CountryUS
Employees3,265
SectorConsumer Cyclical
Sector Strength75
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.37
Shares Outstanding260,734,680
10 Day Avg. Volume4,636,353
30 Day Avg. Volume4,736,118
Financial Highlights & Ratios
PEG Ratio4.59
Price to Book (P/B)3.75
Price to Sales (P/S)0.00
P/FCF Ratio18.44
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda-3.23
Forecast
1Y Price Target
$52.18Price Target Upside13.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering24
Maplebear Business Overview & Revenue Model
Company DescriptionMaplebear Inc., doing business as Instacart, provides online grocery shopping services to households in North America. The company connects the consumer with a personal shopper to shop and deliver a range of products, such as food, alcohol, consumer health, pet care, ready-made meals, and others. The company offers its services through a mobile application or website. The company was incorporated in 2012 and is based in San Francisco, California.
How the Company Makes MoneyInstacart generates revenue through multiple streams. Its primary source of income is fees associated with its delivery and pickup services, which include service fees, delivery fees, and subscription fees for its Instacart Express membership, offering free delivery on orders over a certain amount. Additionally, Instacart earns money through partnerships with retailers who use the platform to reach a wider customer base, often sharing a portion of sales generated through the app. The company also leverages advertising revenue by selling ad space to consumer goods companies that want increased visibility for their products on the Instacart platform. These diversified revenue streams, coupled with strategic partnerships with major grocery chains, contribute significantly to Instacart's financial performance.
Maplebear Key Performance Indicators (KPIs)
Any
Gross Transaction Volume
Represents the total value of all transactions processed, reflecting the scale of operations and market reach. Growth in this metric can signal increased consumer trust and business expansion.
Represents the total value of all transactions processed, reflecting the scale of operations and market reach. Growth in this metric can signal increased consumer trust and business expansion.
Data provided by:
Main Street Data
Main Street DataMaplebear Financial Statement Overview
Summary
Maplebear has demonstrated significant improvements in its financial performance in 2024, with strong revenue growth, increased profitability, and a solid balance sheet. The company has effectively turned around from previous losses, showcasing operational efficiency. While cash flow metrics are strong, maintaining a healthy cash balance remains crucial. Overall, Maplebear is on a positive financial trajectory, with strengths in revenue generation and operational performance, though attention to liquidity management is advised.Income Statement
The company has shown strong revenue growth with a Revenue Growth Rate of 11.0% in 2024 compared to 2023, indicating a positive trajectory. The Gross Profit Margin for 2024 is high at 75.3%, reflecting efficient cost management. However, despite improvement, the Net Profit Margin in 2024 is 13.5%, suggesting room for increased profitability. The company turned around its EBIT margin from negative to 14.5% in 2024, showcasing strong operational improvements.75
Positive
Balance Sheet
The Balance Sheet reveals a solid financial position with a low Debt-to-Equity Ratio of 0.01, indicating minimal leverage and financial risk. The Equity Ratio is strong at 75.2%, showing substantial reliance on equity financing. Although Return on Equity is not applicable due to previous negative equity, the shift to positive equity and profitability in 2024 is a positive indicator of financial health.80
Positive
Cash Flow
The company has a robust Free Cash Flow growth of 17.5% from 2023 to 2024, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 1.50, which is favorable, reflecting efficient conversion of earnings to cash. The Free Cash Flow to Net Income Ratio stands at 1.36, reinforcing the company's strong cash position relative to its earnings. However, the decline in cash reserves indicates potential future liquidity challenges.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.38B | 3.04B | 2.55B | 1.83B | 1.48B | Gross Profit |
| 2.54B | 2.28B | 1.83B | 1.23B | 879.00M | EBIT |
| 489.00M | -2.14B | 62.00M | -86.00M | -75.00M | EBITDA |
| 556.00M | -2.08B | 109.00M | -60.00M | -50.00M | Net Income Common Stockholders |
| 457.00M | -1.62B | 428.00M | -73.00M | -70.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.52B | 2.19B | 1.71B | 1.49B | 1.43B | Total Assets |
| 4.12B | 4.73B | 3.67B | 2.96B | 2.10B | Total Debt |
| 26.00M | 40.00M | 49.00M | 54.00M | 51.00M | Net Debt |
| -1.40B | -2.10B | -1.46B | -1.09B | -1.17B | Total Liabilities |
| 1.02B | 800.00M | 3.73B | 3.53B | 520.00M | Stockholders Equity |
| 3.09B | 3.93B | -64.00M | -573.00M | 1.58B |
| Cash Flow | Free Cash Flow | |||
| 623.00M | 530.00M | 251.00M | -226.00M | -98.00M | Operating Cash Flow |
| 687.00M | 586.00M | 277.00M | -204.00M | -91.00M | Investing Cash Flow |
| -107.00M | 135.00M | 117.00M | -330.00M | 301.00M | Financing Cash Flow |
| -1.41B | -30.00M | 46.00M | 464.00M | 671.00M |
Maplebear Technical Analysis
Positive
45.94
Price Trends
41.23
Positive
43.49
Positive
41.78
Positive
Market Momentum
1.11
Negative
60.24
Neutral
63.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CART, the sentiment is Positive. The current price of 45.94 is above the 20-day moving average (MA) of 43.33, above the 50-day MA of 41.23, and above the 200-day MA of 41.78, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 63.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CART.
Maplebear Risk Analysis
Maplebear disclosed 65 risk factors in its most recent earnings report. Maplebear reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Maplebear Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $130.72B | 63.42 | 49.11% | ― | 41.92% | 81.11% | |
78 Outperform | $33.11B | 17.17 | 36.48% | 1.53% | 2.04% | -15.61% | |
76 Outperform | $11.91B | 29.99 | 12.96% | ― | 11.34% | ― | |
75 Outperform | $17.27B | 46.44 | 101.78% | ― | 6.40% | 891.13% | |
74 Outperform | $49.46B | 196.96 | 6.06% | ― | 20.88% | -80.08% | |
70 Outperform | $64.22B | 104.99 | 44.39% | ― | 32.23% | -46.86% | |
61 Neutral | $6.97B | 11.38 | 2.88% | 3.90% | 2.64% | -22.07% |
* Consumer Cyclical Sector Average
Performance Comparison
CART
Maplebear
45.94
13.36
41.01%
EBAY
eBay
72.43
21.21
41.41%
MELI
Mercadolibre
2,578.35
806.28
45.50%
CVNA
Carvana Co
305.21
190.18
165.33%
CHWY
Chewy
43.31
26.61
159.34%
CPNG
Coupang
27.16
4.20
18.29%
Maplebear Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 15.43%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
Instacart reported a strong start to the year with robust growth in orders, advertising revenue, and strategic acquisitions. The company is leveraging AI for innovation and expanding its market presence. However, challenges such as a decrease in GAAP net income and concerns over macroeconomic conditions present risks.Q1-2025 Updates
Positive Updates
Strong Q1 Performance
Instacart delivered GTV at the top end of guidance, growing 10% year-over-year, driven by a 14% increase in orders. Adjusted EBITDA of $244 million exceeded guidance, growing 23% year-over-year.
Advertising Revenue Growth
Advertising and other revenue increased by 14% year-over-year, outpacing GTV growth with strong contributions from both large and emerging brand partners.
Expansion of Instacart+ and User Engagement
Instacart+ adoption and user engagement increased, with small basket orders driving higher order frequency and new customer acquisition.
Strategic Acquisition of Wynshop
Instacart acquired Wynshop to expand enterprise strategy, enhancing storefronts for more retailers and strengthening its position in the market.
AI-Driven Innovation
87% of Instacart's code was developed with AI assistance in Q1, enhancing speed and efficiency across operations. AI is pivotal in delivering personalized customer experiences.
Negative Updates
Decrease in GAAP Net Income
GAAP net income decreased by $24 million year-over-year, primarily due to the lapping of $95 million of stock-based compensation reversals in Q1 of 2024.
Concerns Over Macroeconomic Uncertainty
Brands expressed concerns about potential impacts from macroeconomic uncertainties, trade policies, and regulations on advertising and marketing spend.
Decrease in Average Order Value (AOV)
Average order value decreased by 4% year-over-year, affected by the addition of restaurant orders and reduced minimum basket size for Instacart+ members.
Company Guidance
During Instacart's first quarter 2025 earnings call, the company provided guidance indicating robust performance and strategic initiatives for continued growth. The Gross Transaction Value (GTV) was at the top end of the guidance range, with a 10% year-over-year increase driven by a 14% rise in orders. Average order value decreased by 4% year-over-year due to the inclusion of restaurant orders and reduced minimum basket size for Instacart+ members. Transaction revenue grew 8% year-over-year, while advertising and other revenue increased by 14% year-over-year, outpacing GTV growth. The adjusted EBITDA exceeded expectations, growing 23% year-over-year, and operating cash flow improved significantly. The company ended the quarter with $1.8 billion in cash and similar assets, having repurchased $94 million worth of shares. Instacart's Q2 outlook anticipates GTV growth between 8% to 10% and adjusted EBITDA of $240 million to $250 million, indicating continued strong performance amid macroeconomic uncertainties.Maplebear Corporate Events
Executive/Board ChangesFinancial Disclosures
Maplebear CEO Fidji Simo Announces Resignation
Neutral
May 8, 2025
On May 7, 2025, Fidji Simo, CEO of Maplebear Inc., announced her intention to resign to pursue another opportunity, although she will remain as Chair of the Board. The company plans to appoint a new CEO from its senior executives soon. Additionally, Maplebear reaffirmed its financial outlook for the second quarter and fiscal year 2025, as previously stated in its May 1 earnings call.
Spark’s Take on CART Stock
According to Spark, TipRanks’ AI Analyst, CART is a Outperform.
Instacart (CART) scores a solid 73.5, driven by strong financial performance and positive earnings call outcomes. The company’s revenue growth and strategic innovations stand out as key strengths. Technical indicators show positive momentum, though valuation suggests the stock is fully priced. Overall, Instacart is on a positive trajectory, though investors should monitor liquidity and macroeconomic impacts.
To see Spark’s full report on CART stock, click here.
Executive/Board Changes
Maplebear Appoints New Chief Accounting Officer
Neutral
Mar 4, 2025
Maplebear Inc. announced the resignation of its Chief Accounting Officer, Alan Ramsay, effective March 10, 2025. Ramsay’s departure is amicable, with no disagreements related to company operations. Lisa Blackwood-Kapral has been appointed as the new Chief Accounting Officer, effective the same date. Blackwood-Kapral brings extensive experience from her previous roles at Lyft, Inc. and Shutterfly, LLC, and her appointment includes a comprehensive compensation package. This transition is expected to ensure continuity in the company’s accounting leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.