Shares of Instacart (CART +1.87%) rallied on Friday after the food delivery platform issue an upbeat growth forecast.
By the close of trading, Instacart's stock price was up more than 9%.
Image source: Getty Images.
Instacart is providing value to shoppers, grocers, and advertisers alike
Instacart's gross transaction volume (GTV) -- the total dollar value of all products sold on its platform -- climbed 14% year over year to $9.9 billion in the fourth quarter. That drove a 13% jump in Instacart's transaction revenue to $698 million.
"We continue to raise the bar across the dimensions that matter most to customers: selection, convenience, quality, and affordability," CEO Chris Rogers said in a letter to shareholders.
Rogers went on to note that Instacart's marketplace now includes 2,200 retail brands and almost 100,000 store locations, with many orders being delivered in as few as 30 minutes.
NASDAQ: CART
Key Data Points
In addition to more shoppers ordering from the grocery delivery platform, more businesses are using its ad tools to attract customers. Instacart's advertising and other revenue rose 10% to $294 million.
All told, Instacart's total revenue increased 12% to $992 million. In turn, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) leaped 20% to $303 million.
Management sees more gains in 2026
Looking ahead, Instacart expects its GTV to grow by 11% to 13% to roughly $10.2 billion in the first quarter. The grocery delivery leader also projects its adjusted EBITDA to increase by 15% to 19% to approximately $285 million.
"In Q1, we're guiding to the strongest year-over-year GTV growth we've provided as a public company, and we're focused on building on this momentum to drive durable, profitable growth over the long term," Rogers said.
