Instacart shares drop as Q4 outlook falls short

Instacart (NASDAQ:CART) reported third-quarter earnings that beat analyst expectations. Still, shares fell 6.3% in after-hours trade as investors were likely disappointed by the company's fourth-quarter guidance.

The grocery delivery platform posted adjusted earnings per share of $0.42, surpassing the analyst consensus of $0.22. Revenue for the quarter rose 12% year-over-year to $852 million, slightly above the $843.6 million estimate.

Gross transaction value (GTV) grew 11% YoY to $8.3 billion, driven by a 10% increase in orders to 72.9 million. The company's adjusted EBITDA jumped 39% to $227 million, representing 27% of total revenue.

For the fourth quarter, Instacart forecasts GTV between $8.5 billion and $8.65 billion, implying YoY growth of 8% to 10%. The company expects adjusted EBITDA of $230 million to $240 million.

"We delivered another strong quarter, with our scale and critical advantages helping us continue to serve our customers, retailers, brands, and shoppers even better," said CEO Fidji Simo.

She noted that Instacart achieved its fourth consecutive quarter of positive GAAP net income.

Instacart's transaction revenue increased 12% YoY to $606 million, while advertising and other revenue grew 11% to $246 million. The average order value rose slightly to $114.