Instacart Q3 revenue tops estimates; to be acquired by DoorDash

Overview

• U.S. grocery tech firm's Q3 revenue rose 17% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 missed analyst expectations

• Instacart to be acquired by DoorDash in $17 bln cash-and-stock deal

Outlook

• Instacart suspends financial guidance and withdraws previously issued long-term guidance

Result Drivers

• ADVERTISING REVENUE - Co said advertising and other revenue grew 23% yr/yr, helping drive overall revenue growth

• CONSUMER DEMAND - CEO said solid consumer demand contributed to stronger fundamentals and revenue growth

• CUSTOMER ENGAGEMENT - CEO attributed results to deepening customer engagement

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 15 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Maplebear Inc. is $57.00, about 2.4% below its October 28 closing price of $58.42

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• Oct 29 - DoorDash strikes $17 billion deal for US rival Instacart in bets on grocery delivery

• Oct 29 - DoorDash Q3 revenue tops estimates on order growth; to acquire Instacart

• Oct 28 - Delivery Hero lifts annual guidance again as quick commerce drives growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)