Maplebear (CART) - 2024 Q2 - Quarterly Report

Financial Performance - In Q2 2024, Instacart reported 70.8 million orders, a 7% increase compared to Q2 2023, driven by new customer acquisition and increased engagement [110]. - Gross Transaction Value (GTV) reached $8,194 million in Q2 2024, reflecting a 10$823 million, marking a 15% increase from the same quarter in 2023 [109]. - Gross profit increased to $623 million in Q2 2024, an 18$208 million, representing an 89% increase year-over-year, with an Adjusted EBITDA margin of 25% [112]. - Net income for Q2 2024 was $61 million, down from$114 million in Q2 2023, reflecting a decrease of 46% [129]. - Advertising and other revenue increased by 11% in Q2 2024, reaching $228 million compared to$206 million in Q2 2023 [136]. - Gross profit for the first six months of 2024 was $1,237 million, reflecting a 12$1,109 million in the same period of 2023 [138]. - Adjusted EBITDA for the six months ended June 30, 2024, was $406 million, with a margin of 25$716 million for Q2 2023, with a net income of $114 million [155]. Operating Expenses - Total operating expenses increased to$571 million in Q2 2024, up from $408 million in Q2 2023, representing a 40$185 million in Q2 2024, up from $130 million in Q2 2023, a 42$203 million in Q2 2024, compared to $166 million in Q2 2023, a 22$212 million in the first six months of 2024, largely due to higher accruals for taxes and compensation costs [145]. - The total operating expenses for the six months ended June 30, 2024, were $1,041 million, with total operating expenses as a percent of GTV at 6.3$850 million, with adjusted total operating expenses as a percent of GTV at 5.1% [167]. Cash Flow and Capital Resources - For the six months ended June 30, 2024, net cash provided by operating activities was $349 million, compared to$242 million for the same period in 2023, representing a 44.3% increase [173][174]. - The company reported cash and cash equivalents of $1.4 billion and marketable securities of$9 million as of June 30, 2024 [168]. - The company may require additional capital resources to execute strategic initiatives for growth, influenced by various operational factors [171]. - The board of directors authorized a new share repurchase program in June 2024 to purchase up to an aggregate of $500 million of common stock [170]. - For the six months ended June 30, 2024, net cash used in financing activities was$1,055 million, primarily due to repurchases of common stock totaling $1,040 million [177]. Market and Economic Factors - The company anticipates continued impacts from macroeconomic factors such as inflation and rising interest rates, affecting order volumes and customer acquisition [102]. - Inflationary pressures have negatively impacted consumer demand for online grocery, leading to reduced order frequency and lower average order values [185]. - Instacart's advertising revenue is expected to fluctuate due to seasonal trends, with historically higher revenue in Q4 and lower in Q1 [116]. Legal and Regulatory Challenges - The classification of Instacart shoppers as independent contractors remains subject to legal and regulatory challenges, which could impact the company's financial condition [107]. Shareholder Actions - During the six months ended June 30, 2024, the company repurchased and retired 35 million shares of common stock for an aggregate purchase price of$1,040 million [170].