Maplebear Inc. (CART), known as Instacart, reported a 14% year-over-year revenue increase to $1.019 billion in Q1 2023, exceeding the Zacks Consensus Estimate of $1.005 billion. The gross transaction value rose 13% to $10.288 billion, marking nine consecutive quarters of double-digit growth. However, earnings per share were 57 cents, missing expectations by one cent.
Despite solid revenue trends, CART faces challenges with its gross margin, which decreased to 72% from 75% year-over-year. Cost of revenue surged by 24% to $281 million, driven by higher processing fees and publisher payments. The company generated $253 million in free cash flow during the quarter, repurchased $349 million in shares, and holds approximately $880 million in cash assets.
With a current valuation of 2.27X forward 12-month sales, CART remains above its sector average but below its historical range, making it a mixed investment opportunity as competition from Amazon and DoorDash looms. CART maintains a Zacks Rank #2 (Buy) as it navigates margin pressures and seeks to enhance long-term growth.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
