(Reuters) -Instacart beat Wall Street’s expectations for third-quarter gross transaction value (GTV) and core profit on Monday, helped by steady demand for essentials on its online grocery delivery platform.
The company, formally known as Maplebear, saw solid order growth in the reported quarter, helped by faster delivery options and lower prices of products such as fruits, vegetables and dairy items.
The company posted quarterly GTV – a key metric that shows the value of products sold based on prices shown on Instacart – of $9.17 billion, compared with analysts’ estimates of $9.09 billion, as per data compiled by LSEG.
Instacart’s quarterly core profit was $278 million, compared with analysts’ estimates of $264.5 million.
But the midpoint of the company’s forecasted range for fourth-quarter GTV came in below analysts’ estimates, in a fresh sign that rising economic uncertainty is forcing consumers to hunt for cheaper alternatives.
The online grocery delivery platform now expects current quarter GTV in the range of $9.45 billion to $9.60 billion, compared with analysts’ estimates of $9.45 billion.
Instacart is also facing stiff competition from e-commerce giant Amazon.com, which in August expanded its fast-delivery option to perishable food, including items such as strawberries, milk, and meats.
(Reporting by Anuja Bharat Mistry and Chandni Shah in Bengaluru; Editing by Sahal Muhammed)
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