Maplebear (CART) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 results with revenue up 12% year-over-year to $852 million, GTV up 11%, and Adjusted EBITDA up 39% to $227 million, driven by 10% order growth and operational efficiencies.

• Net income improved from a $2.0 billion loss in Q3 2023 to $118 million profit in Q3 2024, reflecting lower stock-based compensation and cost controls.

• Maintained leadership in grocery orders, expanded Caper Cart deployments, and saw promising results from restaurant and business use cases.

• Advertising revenue grew 11% year-over-year, with emerging brands outpacing platform growth despite reduced spend from large partners.

• Completed a restructuring plan in Q1 2024, reducing headcount by 7% and generating cost savings.

Financial highlights

• Q3 2024 revenue: $852 million (up 12% year-over-year); Adjusted EBITDA: $227 million (27% margin); net income: $118 million.

• Gross profit increased 14% to $641 million, with gross margin at 75%.

• Operating cash flow was $185 million in Q3 and $534 million for the nine months ended September 30, 2024.

• Repurchased $357 million in shares in Q3, totaling $1.4 billion for 47 million shares at a $30.27 average price.

• Operating expenses declined sharply due to lower stock-based compensation and restructuring benefits.

Outlook and guidance

• Q4 GTV expected between $8.5 and $8.65 billion, representing 8%-10% year-over-year growth.

• Q4 Adjusted EBITDA guidance is $230-$240 million, with advertising and other revenue expected to grow in line with GTV.

• Management expects continued impact from macroeconomic factors such as inflation, interest rates, and changing consumer preferences.

• Anticipates normalization of SBC in Q4, with ongoing step-ups in Q2 due to annual equity grants.

• Authorized an additional $250 million for share buybacks, increasing flexibility for 2025 and beyond.