Q1 2024 Maplebear Inc dba Instacart Earnings Call

May 8, 2024

Operator: Good day, and thank you for standing by. Welcome to Instacart's first quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode.

Good day and thank you for standing by welcome to insert Carton first quarter 2024 financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session you will need to press star one one on your telephone.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. Please limit yourself to one question and one follow-up so that we will have enough time to address everyone's questions. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Rebecca Yoshiyama, VP of Investor Relations, Capital Markets, and Treasury. Please go ahead.

Rebecca Yoshiyama: Please limit yourself to one question and one follow up so that we will have enough time to address everyone's questions. Please be advised that today's conference is being recorded I would now like to hand, the conference over to Rebecca Yoshi AMA VP of Investor Relations capital markets and Treasury. Please go ahead.

Rebecca Yoshiyama: Thank you, Josh, and welcome, everyone, to Instacart's first quarter 2024 earnings call. On the call with me today are Fidji Simo, our Chief Executive Officer; Nick Giovanni, our current Chief Financial Officer; and Emily Reuter, our current Vice President of Finance and incoming Chief Financial Officer. After brief prepared remarks, we will open up the call for live questions with Fidji and Emily. During today's call, we will make forward-looking statements related to our business plans and strategy, future performance, and prospects, including our expectations regarding financial results, partnerships, equity, issuances, and share repurchase.

Rebecca Yoshiyama: Thank you, Josh and welcome everyone to <unk> first quarter 2024 earnings call on the call with me today are <unk>, our Chief Executive Officer, Nick Giovanni <unk>, Our current Chief Financial Officer, and Emily Reuter, Our current vice President of finance and incoming Chief Financial Officer.

Rebecca Yoshiyama: After brief prepared remarks, we will open up the call for live questions with BG and Emily.

Rebecca Yoshiyama: These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. You can find more information about these risks and uncertainties, including those related to the classification of shoppers on our platform, in our last Form 10-K, filed with the SEC. In addition, we will also discuss certain non-GAAP financial measures which have limitations and should not be considered in isolation from or as a substitute for our GAAP results.

Rebecca Yoshiyama: During today's call, we will make forward looking statements related to our business plan and strategy future performance and prospects, including our expectations regarding financial results partnerships equity issuances and share repurchases.

Rebecca Yoshiyama: These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated you can find more information about these risks and uncertainties, including those related to the classification of shoppers on our platform and our last Form 10-K.

Rebecca Yoshiyama: Filled with the SEC.

Rebecca Yoshiyama: Assume no obligations to update these statements after today's call except as required by law.

Rebecca Yoshiyama: In addition, we will also discuss certain non-GAAP financial measures, which have limitations and should not be considered in isolation from or a substitute for our GAAP results.

Rebecca Yoshiyama: Reconciliations between these GAAP and non-GAAP financial measures is included in our shareholder letter, which can be found on our Investor Relations website.

Rebecca Yoshiyama: A reconciliation between these GAAP and non-GAAP financial measures is included in our shareholder letter, which can be found on our investor relations website. Now, I'll turn the call over to Fidji for her opening remarks. Thanks, Rebecca. Hi, everyone.

Speaker Change: Now I'll turn the call over to <unk> for her opening remarks.

Fidji Simo: I hope you had a chance to read our shareholder letter, which highlights our strong start to 2024 and how we're continuing to raise the bar across all the most important dimensions of grocery. As the largest online grocery marketplace in North America, we provide 98% of families with access to delivery and pickup from over 1,500 retail banners. We represent more than 85% of US grocery sales. On top of the best selection, 45% of our orders are accepted by shoppers who are already at or within a mile of the store, which means your first item is often picked out faster than it might take you to get out the front door.

Fidji: Thanks for that Hi, everyone. I Hope you had a chance to read our shareholder letter, which highlights a strong start to 2024 and how we're continuing to raise the bar across all the most important I mentioned of groceries.

Fidji Simo: As the largest online grocery market Michelin North America, we provide 98% of families with access to delivery and pickup from over 1500 retail banners will represent more than 85% of U S grocery sales on.

Fidji Simo: On top of the best selection, 45% of our holders are accepted by shoppers who are already at all within a mile of the store, which means youre frostbite is often peaked out faster, but it might take you to get out the front door.

Fidji Simo: Our shoppers also have the advantages of experience and our technology. With shopper tenure on the platform at an all-time high, constant improvements to our models, and in-store tools like planograms, shoppers can complete orders faster and with more accuracy. Simply put, no other marketplace offers the leading customer experience we provide at the scale and competitive cost we deliver it at. And now, by partnering with Uber, we're giving people more of what they're looking for.

Fidji Simo: Of shoppers also how does your vintages of experience and our technologies with shutoff tenure on the platform at an all time high constant improvements to our models and installed tools like Santa grams shutdowns can compete all those faster and with more accuracy simply put no other marketplace ourselves and needing care.

Fidji Simo: A lot of experience, we provide lots of scale and competitive costs, we didn't have already tapped and now by partnering with people that were giving people more of what they are looking for by bringing on hundreds of thousands of restaurants to into golf overnight, we're creating an unmatched combination of grocery and restaurant options for them to call.

Fidji Simo: By bringing hundreds of thousands of restaurants to Instacart overnight, we're creating an unmatched combination of grocery and restaurant options for Instacart customers. The Instacart app can now serve more of our customers' food needs, and our Instacart Plus membership becomes twice as valuable, with no delivery fee on grocery and restaurant orders over $35.

Fidji Simo: Customers.

Fidji Simo: <unk> got the App can now sell more of our customers' needs and our <unk> plus membership becomes twice as valuable with no delivery Xi'an grocery and restaurant all those over $35.

Fidji Simo: By giving our customers more reasons to turn to Instacart, we believe we'll also be able to drive more sales and growth opportunities for our retail and brand partners, which remains our top priority. Overall, I'm excited for what's ahead for Instacart in 2024 and beyond. We have a strong operating foundation, a relentless focus on profitable growth, and we're executing well on our vision to build the technologies that are transforming the grocery industry.

Fidji Simo: By giving our customers more reasons to come to in the call. We believe will also be able to drive more sales and gross opportunities fall retail and brand called mouse, which remains our top priority.

Fidji Simo: Overall I'm excited for what's ahead, probably into the Gulf in 2024 and beyond we have a strong operating foundation, a relentless focus on profitable growth and executing well on our vision to build the technologies that are transforming the grocery industry.

Fidji Simo: So it is with great confidence that we announce Emily Reuter as our next Chief Financial Officer. Nick will retire at the end of Q2, and Emily's role will be effective immediately after we file our Form 10-Q, which is expected later this week.

Fidji Simo: So it is with great confidence that we announce any road as our next Chief Financial Officer, Nick will retire at the end of Q2 and annual lease roll is affected immediately after we file our Form 10-Q, which is expected later this week.

Fidji Simo: As Nick and I discussed the best CFO profile for our future business, I wanted someone with a depth of operating experience in a complex marketplace business similar to our own. We found that and more in Emily, and she's been contributing enormously since she joined in January. Emily is undoubtedly the best CFO to help drive Instacart's future. I want to thank Nick for his exceptional contributions over the past few years.

Fidji Simo: Nick and I discuss the bus CFO profiles for future business I wanted someone who has a depth of operating experience in a complex marketplace business similar to our own we found out and more in annually and she's been contributing enormously since he joined in January annually is undoubtedly the best CFO to help drive in.

Fidji Simo: <unk>.

Fidji Simo: I want to thank Nick for his exceptional contribute your sense of all the past few years by introducing a new level of financial rigor across the company Nick help transform our business into one that deliver strong profitable growth and was one of very few tech companies that could make a successful public market debut last year now ill turn the call over to Nick.

Fidji Simo: By instituting a new level of financial rigor across the company, Nick helped transform our business into one that delivers strong, profitable growth and was one of very few tech companies that could make a successful public market debut last year. Now, I'll turn the call over to Nick to make a few remarks. Thank you, Fidji.

Nick: A few remarks.

Nick Giovanni: It has been an incredible three and a half years, and I'm very proud of what we've accomplished together at Instacart. The level of execution and teamwork required to create a sustainable, profitable, and growing company and then take it public after the longest tech IPO drought in history was one of the most satisfying experiences I've had in my career. Instacart is in a great position as a clear leader with strong operating fundamentals.

Fidji Simo: Yes.

Nick: Thank you <unk>. It has been an incredible three and a half years and I'm very proud of what we've accomplished together added Mr. Cart the level of execution and teamwork required to create sustainable profitable and growing company and then to take it public after the longest tech IPO drought in history with one of the most satisfying experiences I've had in my career is the cart is in a great.

Nick Giovanni: Positioned as the clear leader with strong operating fundamentals and after working closely with Emily over these past several months I'm certain that our team our partners and our shareholders cannot be in better hands. It has been a pleasure engaging with all of our investors and analysts over the past few years. Thank you all and with that I'll step off the call and turn it over to Emily.

Nick Giovanni: And after working closely with Emily over these past several months, I'm certain that our team, our partners, and our shareholders could not be in better hands. It has been a pleasure engaging with all of our investors and analysts over the past few years. Thank you all. And with that, I'll step off the call and turn it over to Emily.

Emily Reuter: Thank you, Fidji and Nick. Since joining Instacart in January, I've become even more bullish on the company's future. I joined Instacart because of its clear leadership position within online grocery and its impressive vision for the future of grocery technology. I'm now even more confident in our ability to capture our share of the massive market opportunity ahead. My confidence is driven by a few things.

Emily: Thank you <unk> since joining <unk> in January I've become even more bullish on the companys future.

Emily Reuter: Joined <unk> because of its clear leadership position with an online grocery and it's impressive vision for the future of grocery technology now.

Emily Reuter: Now even more confident in our ability to capture our share of the massive market opportunity ahead.

Emily Reuter: Confidence is driven by a few things.

Emily Reuter: The depth of our technology integrations, as well as the breadth of our longstanding retailer and brand partnerships. Our ability to deliver a great customer experience. This means having the best selections combined with high-quality service, all at the price and speed customers want it. Our cost-to-serve advantage is underpinned by our ability to fulfill multiple big-basket grocery orders from the same store at the same time. This allows us to generate efficiencies from batching while also giving shoppers more earning opportunities.

Emily Reuter: The depth of our technology integrations as well as the breadth of our longstanding retailer and brand partnerships our ability to deliver a great customer experience. This means having the best selection combined with high quality service all at the price and speed customers want it.

Emily Reuter: Our cost to serve advantage underpinned by our ability to fulfill multiple big basket grocery orders from the same store at the same time.

Emily Reuter: This allows us to generate efficiencies from batch a while also giving shoppers more earnings opportunities.

Emily Reuter: And finally, we aren't just focused on delivering results for the next few quarters or years. We're investing in technologies that will shape the future of groceries and grow the pie for all our stakeholders. I could not be more excited to work with our teams to drive even more profitable growth for Instacart as we work to further extend our lead across all of these dimensions. I also want to thank Nick for his support over these past few months and Fidji for her inspiring and collaborative partnership from day one.

Emily Reuter: And finally, we aren't just focused on delivering results for the next few quarters or years or investing in technologies that will shape, the future of grocery and grow the pie for all our stakeholders.

Emily Reuter: I could not be more excited to work with our teams to drive even more profitable growth for <unk> as we work to further extend our lead across all of these dimensions I also want to thank Nick for his support over these past few months and Fiji for her inspiring and collaborative partnership from day one.

Emily Reuter: Now, let me provide more color on our financial results and outlook. Q1 was an exceptionally strong quarter for us, with both GTV and adjusted EBITDA beating the high end of our guidance ranges. On the one hand, our outperformance on GTV was driven by a continuation of trends we've been discussing. This includes improving cohort dynamics consistent with what we've said in the past, which is that our mature cohort declines continue to improve, and our new cohorts continue to be bigger than pre-pandemic cohorts.

Emily Reuter: Now, let me provide more color on our financial results and outlook.

Emily Reuter: Q1 was an exceptionally strong quarter for us with the CTV and adjusted EBITDA, beating the high end of our guidance ranges on one hand, our outperformance on GTA V was driven by a continuation of trends. We've been discussing this includes improving cohort dynamics consistent with what we said in the past, which is our mature cohort declines continued to improve and our new.

Emily Reuter: Cohort continue to be bigger than pre pandemic cohort.

Emily Reuter: It also includes a lessening year-over-year EBT snap headwind, which had the biggest impact in Q4 and a smaller impact in Q1, primarily because of the successful EBT snap launches with Kroger and Costco. On the other hand, our year-over-year GTV growth in Q1 also benefited from a number of one-time things. This included just over one percentage point of growth from leap day, in addition to stronger-than-expected seasonality, as Q1 2024 was an exceptionally bad winter season, especially compared to the prior year quarter.

Emily Reuter: It also includes a lessening year over year, EBT snap headwind, which had the biggest impact in Q4 and a smaller impact in Q1, primarily because of the successful EBIT snap largest with Kroger and cosco.

Emily Reuter: On the other hand, our year over year GTD growth in Q1 also benefited from a number of one time things. This included just over one percentage point of growth from Leap day. In addition to stronger than expected seasonality as Q1 2024. It was an exceptionally bad winter season, especially compared to the prior year quarter.

Emily Reuter: After taking all of these factors into consideration, as well as what we've seen so far in this quarter, we arrive at our Q2 GTB guidance of $8.15 billion, representing 7% to 9% year-over-year growth. This growth outlook is a bit lower than Q1, primarily because we don't expect the benefit of inclement weather.

Emily Reuter: After taking all of these factors into consideration as well as what we've seen so far in this quarter. We arrive at our Q2 GTP guidance of eight to $8, one 5 billion, representing 7% to 9% year over year growth.

Emily Reuter: This growth outlook is a bit lower than Q1, primarily because we don't expect the benefit of inclement weather, while Q2 growth will not have the benefit of leap day, we largely expect this to be offset by EBIT snap moving from a modest year over year headwind to a tailwind from Q1 to Q2.

Emily Reuter: While Q2 growth will not have the benefit of leap day, we largely expect this to be offset by EBT snap, moving from a modest year-over-year headwind to a tailwind from Q1 to Q2. Overall, our Q2 GTV Outlook represents a sustained step up versus the 5% year-over-year growth we delivered in 2023. We are also guiding to strong Q2 adjusted EBITDA of $180 to $190 million and are well on track to delivering adjusted EBITDA expansions in full year 2024 on both an absolute and percent of GTV basis.

Emily Reuter: Overall, our Q2 GDP outlook represents a sustained step up versus a 5% year over year growth we delivered in 2023.

Emily Reuter: We are also guiding to strong Q2, adjusted EBITDA of $180 million to $190 million.

Emily Reuter: And are well on track to delivering adjusted EBITDA expansion and full year 2024 on both an absolute and percent of GDP basis.

Emily Reuter: One important thing to note about our Adjusted EBITDA Outlook is that it reflects our ability to manage multiple levers across our P&L to drive leverage. In Q2, we expect advertising and other revenue to grow largely in line with what we experienced over the past two quarters. This means our adjusted EBITDA as a percentage of GTV is expected to grow year over year, primarily driven by transaction revenue and adjusted OPEX leverage. We are also continuing to take a disciplined approach to equity management. We continue to expect net dilution to be in the low single digits before any share repurchases.

Emily Reuter: One important thing to note about our adjusted EBITDA outlook is it reflects our ability to manage multiple levers across our P&L to drive leverage in Q2, we expect advertising and other revenue to grow largely in line with what we experienced over the past two quarters. This means our adjusted EBITDA as a percentage of GDP is expected to grow year over year, primarily driven by transaction revenue.

Emily Reuter: And adjusted Opex leverage.

Emily Reuter: We are also continuing to take a disciplined approach to equity management. We continue to expect net dilution to be in the low single digits before any share repurchases and in 2024, we're committed to making sure that the net value of equity. We grant employees. This year is less than the adjusted EBITDA, we delivered in 2023.

Emily Reuter: And in 2024, we're committed to making sure that the net value of equity we grant employees this year is less than the adjusted EBITDA we delivered in 2023. We are confident in our ability to execute and generate more shareholder value over time. This is why we cumulatively repurchased approximately 27 million shares for $751 million by the end of Q1. As of March 31, we had $249 million of remaining share repurchase capacity and plan to continue opportunistically repurchasing shares.

Emily Reuter: We are confident in our ability to execute and generate more shareholder value over time.

Emily Reuter: Why aren't we cumulatively repurchased approximately 27 million shares for $751 million by the end of Q1.

Emily Reuter: As of March 31, we had $249 million of remaining share repurchase capacity and plan to continue Opportunistically repurchasing shares.

Emily Reuter: Overall, our business is performing well, and our operating fundamentals are solid. We remain relentlessly focused on making our service better, deepening our leadership position, and innovating with new technologies like Kaper and our partnership with Uber. While we don't expect these new growth initiatives to materially impact our financials in Q2, we believe that they have the potential to drive more value to consumers and growth to our retail and brand partners over time.

Emily Reuter: Overall, our business is performing well and our operating fundamentals are solid we remain relentlessly focused on making our service better deepening our leadership position and innovating with new technologies like <unk> and our partnership with Uber.

Emily Reuter: While we don't expect these new growth initiatives to material impact materially impact our financials. In Q2, we believe that they have the potential to drive more value to consumers and growth to our retail and brand partners over time.

Emily Reuter: We also expect all of this to help us drive more profitable growth and progress towards our long-term financial targets over time. We're excited about the future, and we appreciate your support as shareholders. With that, Fidji and I are here to take your questions. Operator, you may now begin. Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone.

Emily Reuter: We also expect all of this will help us drive more profitable growth and progress towards our long term financial targets overtime.

Emily Reuter: Excited about the future and we appreciate your support of shareholders with that P. J and I are here to take your questions. Operator, you may now begin.

Operator: Please limit yourself to one question and one follow-up. Please stand by while we compile the Q&A. Our first question comes from Eric Sheridan with Goldman Sachs. Thanks for taking the question. And Nick, thanks for all the assistance and help over the years. And Emily, best of luck in the role going forward.

Speaker Change: Thank you.

Emily Reuter: A reminder to ask a question you will need to press star one on your telephone please limit yourself to one question and one follow up please standby, while we compile the Q&A roster.

Operator: Our first question comes from Eric Sheridan with Goldman Sachs. You May proceed.

Operator: Thanks for taking the question and Nick Thanks for all the assistance and help over the years and Emily Best of luck in the role going forward.

Eric Sheridan: Maybe I'll ask in sort of a two-parter. You know, in terms of the building blocks of GTV growth, as you think, medium to longer term, can you unpack how you're thinking about the broader consumer demand on the platform, the input of sort of continued supply growth more broadly, and how to think about simulating rising utility amongst your user base as we think about sort of longer-term objectives around GTV against broader industry growth? Thank you so much.

Speaker Change: And maybe I'll ask sort of a two parter.

Eric Sheridan: In terms of the building blocks of GTD growth as you think medium to longer term can you unpack, how youre thinking about the broader consumer demand on the platform.

Eric Sheridan: <unk> sort of continued supply growth more broadly and how to think about stimulating rising utility amongst your user base should we think about sort of longer term objectives around GTD against broader industry growth. Thank you so much.

Fidji Simo: Thanks, Eric, for the question. So we are still very excited about the long-term growth that we anticipate in a market that is still moving online and still deeply underpenetrated online. What we see as the building blocks of that long-term growth are kind of the same things that are making us succeed today and allowing us to have this leadership position. Number one is selection.

Speaker Change: Thanks, Eric for the question. So we are still very excited about the long term growth, but we anticipate in a market that is still moving online and sell GP Underpenetrated online what we see as the building blocks of that long term growth of kind of the same.

Fidji Simo: Things that are making us succeed today, and allowing us to have that leadership position.

Fidji Simo: We continue to have a leading selection and we're, in fact, continuing to increase the selection, not just in groceries but now also adding a new use case with restaurants where we're able to add hundreds of thousands of restaurants overnight, which will create a new use case for the app. Quality is absolutely critical. You can see in the letter more details on how we continue to improve on that and are at an all-time high since the pandemic on fund rate and fill rate.

Fidji Simo: Number one is selection we continue to add leading selection and we are in fact, continuing to increase in selection not just in grocery, but now also adding a new use case with restaurants, while unable to hundreds of thousands of restaurants overnight, which will create a new use case will be up quality is absolutely critical.

Fidji Simo: In the latter more details on how we continue to improve that.

Fidji Simo: And we have a real leadership position there with not only a very healthy shopper supply but shoppers that are highly qualified and at the highest of their tenure right now. We also see speed as a critical advantage, which is again tied to our shopper supply with 45% of shoppers being at the store or within a mile of the store. And that means that we can deliver these orders faster than anyone. And we know that speed matters enormously in this market. The last one is affordability.

Fidji Simo: And be at an all time high since the pandemic on Sunrise and shell right and we have a real leadership position there who is not only a very healthy short of supply, but shelf built of a highly qualified and.

Fidji Simo: At the highest of Dovetailing out right now.

Fidji Simo: We also see speeds being a critical advantage, which again is tied to short of supply with 45% of shoppers being also saw within a mile of the store and that means that we can deliver all these all the soft sells on anyone and we know that student models enormous seems as markets.

Fidji Simo: Last one is affordability that remains is saying that we need to keep walking out to continue expanding the Tam and we are hard at work on that.

Fidji Simo: That remains the thing that we need to keep working at to continue expanding the TEM, and we are hard at work on it through a multi-pronged approach where we are adding a lot of different savings, whether it's from retailers, from CPGs, loyalty programs, weekly flyers, and really working with retailers on optimizing their pricing so that the customer that buys online feels like they're getting maximum value. And you're seeing us make progress on that as well, with $4.75 saved on items per order, which is up 20% year-over-year. So these components aren't changing.

Fidji Simo: Through a multi pronged approach what we are adding a lot of different savings whether it's from retailers from TPG loyalty programs, we can fliers.

Fidji Simo: And really working with retailers on optimizing the pricing so that the customer that buys online shelled eggs are getting maximum value and you're seeing us make progress on that as well is $4.75 saved on the items per order, which is up 20% year over year. So is this components often changing they all what's going to drive long term growth.

Fidji Simo: They are what's going to drive long-term growth, and every quarter, you're going to hear us talk about how we're making progress on all of them to really accelerate growth. Now, at the macro level, we have also talked about the fact that mature cohorts improving quarter after quarter, as we saw again this quarter, is definitely a big driver of long-term growth, as well as new cohorts continuing to get bigger, which is certainly what we've seen in 23 and 9, 24 compared to pre-pandemic. So we feel very well set up for the long term. Thank you. One moment for questions. Our next question comes from Nikhil Devnani on Bernstein. You may proceed.

Fidji Simo: And every quarter Youre going to hear us talk about how we're making progress on all of them to really activates the growth now at a macro level. We are we are also talks about the fact that mature cohorts improving quarter after quarter. As we saw again this quarter is definitely a big driver of long term growth as well as new cohorts continuing.

Nikhil Devnani: To get to GAAP, which is certainly what we've seen in 2003 and nine 2012 compared to pre pandemic. So we feel very well set up for the long term.

Nikhil Devnani: Thank you.

Nikhil Devnani: One moment for questions.

Nikhil Devnani: Our next question comes from Nicole <unk> with Bernstein you May proceed.

Nikhil Devnani: Hi, thank you for taking the question. I wanted to ask about reinvestment, please. It looks like your transaction revenue stepped up a bit sequentially, and sales and marketing were sort of flattish as a percent of GTV sequentially as well. Given you beat the guidance pretty comfortably on EBITDA, did you look at the possibility of reinvesting some of that excess profit to support growth for the rest of the year? You know, I guess why not go on the front foot more? Was it simply a lack of ROI on some of that investment? Or did other factors come into play as well?

Nikhil Devnani: Alright. Thank you for taking the question I wanted to ask about reinvestment. Please it looks like your transaction revenue stepped up a bit sequentially and sales and marketing was sort of flattish as a percentage <unk> sequentially as well given your beat the guidance pretty comfortably on EBITDA did you look at the possibility of reinvesting some.

Nikhil Devnani: Of that excess profit to support growth for the rest of the year.

Nikhil Devnani: I guess why not go on the front foot more was it simply a lack of ROI on some of that investment or do other factors come into play as well. Thank you.

Emily Reuter: Thank you. So I want to be clear that we actually did reinvest to support growth. And that's not always seen in the sales and marketing line. Sometimes it's seen in the incentive line, which is contra revenue.

Nikhil Devnani: So I wanted to be sure that we actually did reinvest to support growth and thats not always seen in the sales and marketing line. Sometimes it is seen in the incentive line, we should contract revenue.

Emily Reuter: And the reason we have been able to reinvest to support growth while having high confidence that this will return is because we have really overhauled our incentive system in the last year to be able to really target the right incentives to the right customers at the right time to drive long-term value, to drive habituation, and to drive more engaged customers. And so what you're seeing us do is actually reinvest heavily into the business to continue to support that growth that may not appear in the numbers immediately because we take a long-term view on this reinvestment.

Emily Reuter: And the reason, we have been able to reinvest to support growth, while having a high confidence that this will return is because we have really over a hold all incentive system in the last year to be able to really target the right incentives the right customers at the right time to drive long term value to drive a deterioration to draw.

Emily Reuter: Five more engaged customers and so what you're seeing US do is actually we invest heavily into the business to continue to support that growth. So that may not appear in the numbers and you just see because we take a long term view to this reinvestment and so some of these incentives all marketing might be driven long term risk.

Emily Reuter: And so some of these incentives or marketing might be driven at long-term retention, like, for example, getting you to adopt one more retailer or one more category or buy from a club, all of which are predictors of long-term retention and higher LTV. And so you might see that pay off over the longer term rather than in a quarter. But we are very much investing in the business and don't feel limited in our ability to invest. Great, thank you.

Emily Reuter: Tension like for example, getting you to adopt one more retailer whole one more category or buying from a club all of which are predictors of long term retention than IL.

Emily Reuter: And so you might see that pay off over the longer term rather than in quarter, but we are very much investing in the business and don't feel limited.

Emily Reuter: The LNG to invest.

Speaker Change: Great. Thank you.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Ross Adam Sandler: Thanks. One moment for questions. Our next question comes from Ross Sandler with Barclays; you may proceed. Hey, Fidji, just a couple of questions on these partnerships. So I guess first, maybe we can clear the air on the Amazon elephant in the room.

Emily Reuter: Our next question comes from Ross Sandler with Barclays. You May proceed.

Ross Adam Sandler: You guys work with Whole Foods in Canada. Sounds like Amazon is going to make another push here with their new pricing mechanism for Prime in the US. I guess, what's your view on that? And is there any reason why, at some point in the future, non-exclusive or whatever, you couldn't go back to working with Whole Foods? That'd be the first question. And then the second one is about the Uber partnership. I guess just how big do you think this could be?

Ross Adam Sandler: Hey, just a couple of questions on these partnerships.

Ross Adam Sandler: So I guess first maybe we can clear the air on the Amazon Elephant in the room, you guys work with whole foods in Canada.

Ross Adam Sandler: Like Amazon is going to go another push here with their new pricing mechanism for prime in the U S. I guess, what's your view on that and then is there any reason why at some point of future non exclusive or whatever.

Ross Adam Sandler: We can go back to working with whole foods.

Speaker Change: The first question and then the second one is on.

Ross Adam Sandler: Uhuh partnership I guess, just how big you think this could be.

Fidji Simo: And do you think that restaurant ordering will be, you know, just folks that are IC plus members who kind of order a la carte from food delivery apps? Or do you think there's a high overlap of DashPass subscribers that might come over and, you know, use Instacart now? Thanks a lot.

Ross Adam Sandler: Do you think that restaurant ordering will be just folks that our IC plus members, who kind of order all occur from food delivery apps or do you think there is like a high overlap.

Fidji Simo: Josh pass subscribers.

Fidji Simo: Come over and use.

Fidji Simo: The card now thanks a lot.

Fidji Simo: Thanks, Ross. So on Amazon specifically, I would say Amazon has experimented with many different pricing structures over the years. We have been testing this add-on subscription for some time, and within this contract, we remain very confident that we still have the winning customer value proposition and some critical advantages. We have the best selection, 1,500 retail partners, reaching 98% of households. We know how much selection matters in this market. That's a key advantage.

Speaker Change: Thanks Ross.

Fidji Simo: So on an Amazon specifically I would say Amazon has experimented with many different pricing structures of all the euro we had been testing is add on subscription for some time.

Fidji Simo: And within this contract we remain very confident that we shall have the winning customer value prop in some critical advantages. We have the best selection shifting unread retail partners, reaching 98% of household we know how much selection models in these markets. That's a key advantage. We also have a key advantage on.

Fidji Simo: We also have a key advantage in speed. As I said, 80% of our orders are on demand, half of which are priority. Whereas, you know, in the case of Amazon, you have to schedule orders far in advance. And we know, again, that speed matters enormously in this market. And we really have the best value with Instacart Plus being $99 a year, now twice as valuable with the addition of restaurants and not requiring an extra subscription.

Fidji Simo: Speed, though as I said, 80% of our hold off on demand off of which our priority whereas.

Fidji Simo: The case with Amazon you have to schedule all else falling in advance and we know again thats just matter of the notwithstanding market and we really have the best value witnessed a golf plus being $99.

Fidji Simo: So we feel really good that under any contract from this competitor, we will be able to continue gaining share as we have in the past. We work with them in Canada, and we are pleased with the results.

Fidji Simo: Now twice as valuable we get addition of restaurants and not requiring an extra subscription. So we feel really good that under any construct from from just competitor, we will be able to continue gaining share as we have in the past we work with them in Canada. We are pleased with the results.

Fidji Simo: There's no reason why we wouldn't be able to expand to Whole Foods, but that's their decision, not ours. We would be thrilled to work with them, but that's for them to decide. Now, on the Uber side, I'm really excited about the partnership. I think this is adding enormous selection overnight and positive unit economics, which, as you know, is really hard to pull off when you enter a completely new category. So we think this is something that's going to be incredibly attractive to the Instacart user.

Fidji Simo: No reason why we wouldn't be able to expand to a whole foods, but that's L decision not ours, we would be thrilled to work with them, but that's.

Fidji Simo: That's for them to decide now Uber side I'm really excited about the polymer share pricing is adding enormous selection overnight at positive unit economics, which as you know, it's really hard to pull off when you enter a completely new category. So we think this is something that is going to be incredibly accretive to the installed user.

Fidji Simo: And on your more specific question about which type of usage we see, we actually see that we have a lot of incremental audiences that Uber does not have, especially in families, especially in the suburbs, which is a big part of why this partnership is also valuable to them. And we are going to be aggressively wanting to, you know, convert these customers into restaurant customers. We know that our customers already go to other apps to order restaurants.

Fidji Simo: And on your more specific question on which type of usage do we see we actually see.

Fidji Simo: See that we have a lot of incremental audience is that well does not hubs, especially in families, especially in the suburbs.

Fidji Simo: Which is a big part of why this partnership is also valuable to them and we are going to be aggressively wanting to.

Fidji Simo: I'll just customers into our restaurant customers, we know that our customers are already go through other ops to order a restaurant, that's why we decided to prioritize entering he's category and I think with the value proposition options to golf, plus which is not increasing in price, despite adding all restaurants and.

Fidji Simo: That's why we decided to prioritize entering this category, and I think with the value proposition of Instacart Plus, which is not increasing in price, despite adding all restaurants and free delivery above $35 from both grocery and restaurants, we have a very strong value proposition here with leading selection in grocery and leading selection in restaurants. So we're really excited about our ability to attract new users and convert our existing users to become restaurant customers as well, and, as a result, make them more engaged. Thank you.

Fidji Simo: Free delivery above $75 from both grocery and restaurants, we have a very strong value proposition here.

Fidji Simo: Leading selection in grocery and leading selection in restaurants. So we're really excited about our ability to attract new users and convert our existing users to become restaurant customers as well and as a result makes them more engaged.

Fidji Simo: Thank you.

Operator: One moment for questions. Our next question comes from Jason Helfstein with Oppenheimer. You may proceed. Thanks for taking the questions. Just two questions.

Fidji Simo: One moment for questions.

Jason Helfstein: Our next question comes from Jason <unk> with <unk>.

Jason Helfstein: Oppenheimer you May proceed.

Jason Helfstein: Thanks for taking my questions.

Jason Helfstein: Two questions.

Operator: <unk>.

Jason Helfstein: Some comments about expanding to pick-up. How do you think about the savings that a customer gets when they do pick up? [inaudible] The second question... about Uber. Can the economics work to expand the partnership so that they would actually offer your grocery offering on their app? Thank you.

Jason Helfstein: You had some comments about expanding to pick up.

Jason Helfstein: Just how do you think about like what are those savings in our customer gets when they do pick up and do you think thats better position you to compete with Walmart.

Jason Helfstein: Obviously for online grocery and a second question.

Jason Helfstein: Mover.

Jason Helfstein: Can the economics work to expand the partnership so that they would actually offer your grocery offering on their app. So.

Jason Helfstein: Open ended question on that thank you.

Fidji Simo: So on pickup, pickup is a big part of our affordability strategy because it is a cheaper option for people who value price over convenience. And so that's why we're focused on it. And that's why we actually made it free this quarter to use pickup.

Speaker Change: Thank you so on pick up pick up in a big part of our affordability strategy because it is a cheaper option for people who value price of convenience.

Fidji Simo: And so that's why we're focused on it and that's why we actually made it to free his quarter to use pick up so to your point on the savings.

Fidji Simo: So to your point on the savings, it's a great option for people who may not have the time to get inside the store and want to benefit from those time savings but don't want to pay the cost of delivery. And we see that it is, in fact, a different customer because 75% of pickup orders are incremental. Now, pickup is a smaller part of our overall business, in the big part because we started with groceries.

Fidji Simo: A great option for people, who may not have the time to get inside the store and one of the benefits from those time saving but don't want to pay the cost of delivery and we see that it is in fact, a different customer because 75% of pickup orders are incremental now pickup is a smaller part of our overall business.

Fidji Simo: In default because we started with grocery but it's about the US continues to grow and we continue to expand with large grocers like Kroger, all depths and many more to go.

Fidji Simo: Continue to grow that business. So we're excited about it but it is a smaller part of our overall business.

Fidji Simo: But it's a part that continues to grow, and we continue to expand with large grocers like Kroger, Alderson, and many more to continue to grow the pickup business. So we're excited about it, but it is a smaller part of our overall business. As for your question about Uber and grocery, to be clear, this partnership was very focused on us entering restaurants. We are still going to compete in grocery, and we continue to have, you know, a leading category share in grocery. So this is something that we're excited to continue. Thank you.

Fidji Simo: As for your question on Uber and grocery.

Fidji Simo: To be clear ELC sponsorship with very focused about us entering restaurants, we are still going to compete in grocery and we continue to add leading category shoving groceries. So this is something that we're excited to continue to fill that.

Speaker Change: Thank you.

Colin Alan Sebastian: One moment for questions. Our next question comes from Colin Sebastian with Baird. You may proceed. Great, thanks. And Nick, all the best to you on your next steps. And Emily, welcome and congratulations.

Fidji Simo: One moment for questions.

Colin Alan Sebastian: Our next question comes from Colin Sebastian with Baird You May proceed.

Colin Alan Sebastian: Great. Thanks, Nick all the best to you on your next steps and Emily welcome and congrats.

Fidji Simo: Looking at the advertising revenue opportunity, this seems like it's still an area that's a significant opportunity as you engage with more CPG and brand advertisers. And so looking at that business, looking at the take rate, if you could perhaps maybe update us on the roadmap there, any specific platform enhancements or products this year that we should pay attention to, and ultimately, Fidji, your vision for advertising on the platform. Absolutely. So we still have very high conviction in our long-term targets, which are that advertising will reach 4 to 5% of GTV over time. It will not be linear.

Colin Alan Sebastian: Looking at the advertising revenue opportunity.

Fidji Simo: Like it's still an area.

Fidji Simo: Significant opportunity as you engage with more CPG and brand advertisers and and so looking at that business looking at the take rate. If you could perhaps maybe update us on the roadmap there any specific platform enhancements to our products. This year that we should pay attention to and ultimately APG your vision for advertising on the plot.

Speaker Change: Thank you.

Fidji Simo: Absolutely. So we still have very high conviction on our long term targets, which all that advertising would reach 4% to 5% of GTT overtime. It will not be linear as you look at the last couple of years advertising is growing very fast with over last couple years.

Fidji Simo: If you look at the last couple of years, advertising has grown very fast over the last couple of years. And so that's something that has changed in the last few quarters, mostly, as we've told you before, because ad growth lags GTV growth, and we haven't seen ads fully catch up yet. But our conviction around the long-term model is very strong.

Fidji Simo: And so that's a that's something that has.

Fidji Simo: Change in the last few quarters, mostly as we've told you before because AD growth lags GTT growth and we haven't seen us fully catch up yet but of conviction around the long term model is very strong. So we didn't we have the conviction because we continue adding more and more partnerships to measure.

Fidji Simo: The reason we have this conviction is because we continue adding more and more sponsorship to measure the performance of our ads and optimize those ads, and the results always come back, showing that we are an incredible place for advertisers to place their dollars. You probably saw that in the letter about our partnership with Cercana. We continue to launch new objectives and optimization capabilities, like, for example, new to brand objectives and target ROAS this quarter.

Fidji Simo: The performance of our heart and optimize those ads and the results always come back showing that we are an incredible place for advertisers to place that you.

Fidji Simo: You have seen that probably in the latter we don't fall enough ship with Susquehanna, We continue to launch new objectives and optimization capabilities.

Fidji Simo: Like for example, new to brand objective and targets rollout this quarter and so all of these capabilities are really contributing to giving brands confidence that we have a channel by which they are going to see a high return high self knee high Incrementals ladies.

Fidji Simo: And so all of these capabilities are really contributing to giving brands confidence that we have a channel by which they're going to see high return, high self-lead, and high incrementality. In terms of what to pay attention to, in addition to these measurements, improvements, targeting, et cetera, which is really all bread and butter, we have extended the strength of our ad platform beyond the world of the Instagram app. You have seen us do partnerships with Google, and recently NBCU, the trade desk, where we are taking the data and the strength of our targeting and our audiences and applying it to advertising platforms outside of Instacart. We have taken a similar approach with Carat Ads, where we power ads on our retailers' websites, whether that's Props, Schnucks, and many more.

Fidji Simo: In terms of what to pay attention to in addition, Tuesdays measurement improvements targeting et cetera, which is really our bread and butter.

Fidji Simo: We have extended the strengths of our platform beyond the walls of things like alter up you have seen us do partnership with Google recently.

Fidji Simo: You can use a trade desk, while we are taking the data and the strength of targeting an audience and applying it to our advertising platforms outside of in the call. We have taken a similar approach, which carol to ads, where we power on our retailers' websites with all that's proud snacks many malls.

Fidji Simo: And that's also a way to continue growing the ad business. And then, finally, expanding this ad business inside the store on Kapor with Kapor Ads, which is obviously small right now, given that we have hundreds of cars out there. But as we ramp up to thousands, of course, this is something that will get a lot bigger, especially as you look to 2025.

Fidji Simo: And that's also a way to continue growing the business and then finally, expanding he said the business inside the store on Cape I always keep a hub, which is obviously small right now given that we have hundreds of calls out there, but you know as we ramp up to thousands of call to see something.

Fidji Simo: That will get a lot bigger.

Fidji Simo: Especially as you look to 2025, so overall, we feel very confident about the performance of some initiatives take time.

Fidji Simo: So overall, we feel very confident about the performance of our ad. Some initiatives take time, but we feel good about our trajectory. Thank you.

Fidji Simo: But we felt good about off trajectory.

P J: Okay. Thanks P J.

Douglas Anmuth: One moment for questions. Our next question comes from Doug Anmuth with J.P. Morgan, if you would. Thanks for the questions.

Speaker Change: Thank you one moment for questions.

Douglas Anmuth: Our next question comes from Doug Anmuth with Jpmorgan you May proceed.

Emily Reuter: Emily, can you provide any more color on what you're seeing across cohorts? And if you see a time frame for mature cohorts, those declines to flatten out, and then think about the benefits of the new partnerships with Kroger and Costco on EBT snap and quantification just as you flip from a headwind to tailwind over into 2Q. Thanks for the question, Doug. So on cohorts, you know, what I'd say is that everything that we've said about cohort dynamics remains true. So mature cohort declines continue to improve in the quarter, and new cohorts are bigger than before the pre-pandemic.

Douglas Anmuth: Thanks for taking the questions and we can provide any more color on what youre seeing across cohorts and if you see a timeframe for mature cohorts those declines to flatten out and then.

Speaker Change: Anything that you can help us understand on the benefits of the new partnerships with Kroger and Costco on EBT snap in.

Emily Reuter: And on quantifying just as you flip from a headwind to tailwind over into <unk>.

Emily Reuter: What I would note, though, is that the strong Q1 performance that we saw benefited all of our cohorts. And so for that reason, I would expect that there was some acceleration and improvement in Q1 that we don't expect to repeat in Q2, given those one-time impacts. So overall, I think the underlying trends, you know, continue to move along the same trends with the one-time impact in Q1. As it relates to the benefit of the new partnerships on EBT, overall, what I'd say is that the year-over-year headwind improved from Q4 to Q1.

Speaker Change: Thanks for the question, Doug So on cohorts, what I'd say is that everything that we've said about cohort dynamics remains true so mature cohort declines continued to improve in the quarter.

Emily Reuter: New cohorts are bigger than pre pandemic.

Emily Reuter: Note, though is that the strong Q1 performance that we saw a benefit at all of our cohorts and so for that reason I would expect that there was some acceleration and improvement in Q1 that we don't expect.

Emily Reuter: To repeat in Q2, given those onetime impacts.

Emily Reuter: So overall I think the underlying trends continue to move along the same trends.

Emily Reuter: The one time impact in Q1.

Emily Reuter: As it relates to the benefit of the new partnerships on EBT.

Emily Reuter: Overall, what I'd say is that.

Emily Reuter: The year over year headwind improved from Q4 to Q1, the impact was strongest in Q4.

Emily Reuter: The impact was strongest in Q4, and in Q1, the launches of Kroger and Costco helped mitigate that impact. As we move into Q2, we do expect to see the expiration of those benefits, but the overall impact is modest.

Emily Reuter: And in Q1 at the launches of Kroger, and Costco helped mitigate that impact.

Emily Reuter: As we move into Q2, we do expect to lap the exploration of those benefits, but the overall impact is.

Emily Reuter: It is modest at the way that the way that I think about it is that the EBIT snap benefit in Q2 would.

Emily Reuter: The way that I think about it is that the EBT SNAP benefit in Q2 would effectively offset the impact that we had in Q1 from leap day, so about one percentage point of growth. Thank you. One moment, please.

Emily Reuter: Would effectively offset the impact that we had in Q1 from leap day, so about one percentage point spread.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Michael Morton: Our next question comes from Michael Morton with Moffitt Nathanson. You may press star to ask your question. Two, if I could, the related.

Speaker Change: Our next question comes from Michael Morton Nathan.

Michael Morton: Nathan you May proceed.

Michael Morton: Could you speak to the defensibility and contract length of some of the largest and exclusive relationships? It's a question that we frequently get from the investor base. Any clarity there? And we do appreciate that it's not essential to the success of your business, but it's a FAQ. And related to partnerships. I would love to know.

Michael Morton: Good evening. Thank you for the question.

Michael Morton: Two if I could the related could you speak to the defensibility and contract length of some of the largest exclusive relationships.

Michael Morton: Question that we frequently get from your Investor base any clarity there and we do appreciate that.

Michael Morton: It's not essential to the success of your business, but it's I'd say.

Speaker Change: Thank you.

Michael Morton: Related to partnerships.

Fidji Simo: How you think longer term when it comes to working with the likes of Walmart and Amazon. Research shows that they're taking share in grocery and could be taking share from your core customer base on the grocery side. And a lot of times, they like to pull things in house eventually.

Michael Morton: Would love to know.

Michael Morton: How do you think longer term when it comes to working with the likes of Walmart and Amazon.

Fidji Simo: Research shows that they're taking share in grocery and could be taking share from your core customer base on the grocery side and a lot of times I would like to pull things in house. Eventually is there any risk that you're feeding the beast bridging them to their own sustainable solutions. Thank you so much.

Fidji Simo: So is there any risk that you're feeding the beasts and bridging them to their own sustainable solutions? Thank you so much. Thanks for the question. So on contract length and exclusivity. First off, I just want to remind everyone that exclusivity is not a strategy. The strategy is fundamentally to be the partner of choice by being very embedded in grocers' businesses because we drive growth for them. As for the contracts, they are, I would say, one to two years, and they all have different terms.

Fidji Simo: Thanks for the question so on contract lengths and exclusivity first off I just wanted to remind everyone that exclusivity is not our strategy. The strategy is fundamentally to be the partner of choice by being very embedded in <unk> business, because we drive growth for them.

Fidji Simo: So it's not as if there is a cliff, you know, coming up at any point. And what we usually see is that when retailers go non-exclusive and go to other platforms, what happens is that they continue to grow with us and invest more in the relationship. And so, you know, we continue to invest in our technology with grocers. We have a relationship, even when they're not exclusive, where very often we power their own and operating business, we power their fulfillment, we do pick up with them, we do eBK snap, we do virtual convenience, the list goes on. And it's obviously a much more strategic relationship than just sitting in a marketplace. So that's very much how we think about this.

Fidji Simo: All the contracts they are I would say one to two years and.

Fidji Simo: They all have different timing, so it's not as though is a cliff.

Fidji Simo: Coming up at any point.

Fidji Simo: And what we usually see is that when retailers go non exclusive and go towards a platform. What happens is that they continue to grow with us invest more in the relationship.

Fidji Simo: And the use case that happens on other platforms is quite different from alone. It ends up being very small baskets. The things that you add up type of restaurant, although like a bag of chips and the kind of substance.

Fidji Simo: And so very different from what you can do on our platform, which is really everything from small baskets to larger baskets.

Fidji Simo: And so we continue to invest in our technology with grocers, we have our relationships even when they are not exclusive will very often.

Fidji Simo: <unk> owned and operated business, we thought was a fulfillment we do kick up with them, we do EBIT snaps with industrial convenience the list goes on.

Fidji Simo: And and it's obviously a much more strategic relationship than just sitting on the marketplace. So that that's very much how we think about this.

Fidji Simo: In terms of partnership and long term walking with a weak competitors.

Fidji Simo: I would say.

Fidji Simo: We obsess over it is always our being the best possible selection for customers and that's what got us to a.

Fidji Simo: Our selection that will present, 85% of U S grocery shelves being on the call and so that's why we want to work with every growth. However.

Fidji Simo: When you talk about competitive advantages, we think our competitive advantages are very strong and in particular when it comes to.

Fidji Simo: Fulfillment advantages.

Fidji Simo: Scale at which reoccurring.

Fidji Simo: Gives us very significant advantages over any retailer wanting to do that themselves and Thats. Why you are seeing even the largest guys. The programs of the world et cetera, really relying on us for fulfillment because we can do that.

Fidji Simo: The economics that are highly competitive at the scale that is incredibly competitive with quality, that's top notch and as a result, we can grow that business rather than doing the doing that themselves and not growing as fast as it would easily will I don't know if technology. So we want to make them to always.

Fidji Simo: And as a result, we can grow their business rather than them doing that themselves and not growing as fast as they would if they relied on our technology. So we want to make it always the smartest choice for them to partner with us. And that's exactly what has happened to date.

Fidji Simo: Is the smartest choice for them to partner with Us and that's exactly what has happened to date.

Operator: Thank you. Thank you. One moment, please.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Andrew M. Boone: Our next question comes from Andrew Boone with JMP Securities. Thanks so much for taking my question. The NBCUniversal partnership is very interesting. Can you talk about the potential for off-platform advertising and what you need to do to unlock more budget as well as more partners? Thanks so much.

Operator: Our next question comes from Andrew Boone with JMP Securities You May proceed.

Andrew M. Boone: Thanks, So much for taking my question. The NBC Universal partnership is very interesting can you talk about the the capsule.

Andrew M. Boone: Platform advertising in which you need to go to a more budgeted is going with more partners. Thanks. So much.

Fidji Simo: Thanks for the question, Andrew. So, the way we think about it is that we have really unique customer data that can help advertisers identify audiences, for example, who would be new to their brand, who is an engaged customer that may have, that used to be engaged, but may have churned. All of these audiences are incredibly critical for advertisers, especially in a world where cookies are going away, and other platforms are really hungry for high-quality third-party data.

Speaker Change: Thanks for the question Andrew So.

Fidji Simo: The way, we think about it is that we have really unique customer data that can help advertisers identify audiences. For example would be new to the brand who is an engaged customer that mi is that used to be engaged with may of channels. All of these audiences are incredibly critical.

Fidji Simo: For advertisers, especially in a world where cookies are going away and other platforms are really hungry for high quality first party data and so we are able to all first party data to do his ball enough ships with AR.

Fidji Simo: And so we are able, through our third-party data, to do these partnerships where advertisers are able to take our audiences and leverage that on other platforms to make their advertising on other platforms more efficient. And so that's very exciting. In addition to that, some of these brands decided to point directly to Instacart because they know that people are going to convert better if they land on a place where the ads allow them to buy and get the product in their hands within an hour.

Fidji Simo: Advertisers are able to take audiences and leverage thoughts on other platforms to make that advertising on those platforms most performance.

Fidji Simo: And so that's that's very exciting in addition to that song.

Fidji Simo: <unk> decides to points directly to end the call because they know that.

Fidji Simo: People aren't going to convert that average they land on a place where he adds allow them to buy and get the products inside their hands within an hour. So it's really a full funnel approach that we have with Google as the trade desk and B U.

Fidji Simo: So, it's really a full-funnel approach that we have with Google, the trade desk, and this new thing, and that's why we're really excited to continue deepening these partnerships. Now, in terms of materiality, I would say it is still small because it's a new thing and it requires a new infrastructure and a new muscle.

Fidji Simo: And that's why it works.

Fidji Simo: Really excited.

Fidji Simo: Two to continue deepening these partnerships now in terms of materiality I would say it is still small because it's a it's a new thing and it requires a new infrastructure kind of new muscle very often the people that we talked to to go get these budgets are different people than the people that are allocating spend on in the call.

Fidji Simo: Very often, the people that we talk to to get these budgets are different people than the people that are allocating spend on Instacart because they're just allocating spend on other platforms that are more maybe awareness-driven or other objectives. So, it takes a bit of time to sell this in, build these new relationships, add the new tools to make these services easier to access, and optimization capabilities. But we've done that in the past with our own platform. We know exactly the playbook, that the playbook we're applying this year, and we hope to see the results of that in 2025.

Fidji Simo: Because they'll just allocating spend on other platforms that are more maybe wellness. We've done all the objectives. So it takes a bit of time to sell this and build these new relationships.

Operator: Thank you. Thank you. One moment for questions. Our next question goes to Ron Josey with Citi. You may proceed.

Ron Josey: The new tools to make these salvage EDF to access optimization capabilities, but we've done that in the past with on platform. We know exactly the playbook, that's a playbook, while applying to just ship and.

Ron Josey: We hope to see the results of that.

Ron Josey: In 2025.

Operator: Okay.

Ron Josey: Thank you.

Ron Josey: One moment for questions.

Operator: Our next question goes from Ron Josey with Citi. You May proceed.

Ron Josey: Thanks for taking the question. Maybe as a quick follow-up to one of your prior questions, Fidji, I wanted to ask about just the comments in the letter around operating data. I think you have, you talked about a decade of operating data, and I want to just understand the strategic moats that you have as a result of that, both for the consumers and your retail partners. I think that's something that's often discussed.

Ron Josey: Alright, Thanks for taking the question maybe as a quick follow up to one of your prior questions I wanted to ask about just the comments in the letter around operating data I think you have you talked about a decade of operating data and I wanted to just understand that strategic moat that you have as a result of that both for the consumers and your retail partners. So I think that's something that's often discussed and two.

Fidji Simo: And to that, maybe another question around, I think, the comments on the call about quality or in the letter about quality, specifically around receipt analysis and the benefit of LLMs. Just talk to us about the benefits that you gain from that. Thank you. Absolutely.

Fidji Simo: Maybe another question around I think the comments on the call around quality around the letter around quality, specifically around receipt analysis and the benefit of LMS just talked about the doctors about the benefits that you gain from that thank you.

Fidji Simo: Thanks for the question. The reason I talked about operating data in the letter is that, you know, very often we talk about having the best prediction models and things like that, which is incredibly important. But even if someone literally duplicated all of our prediction models right now, if they didn't have the 10 years of operating data, the model wouldn't be that accurate. You know, you're only as smart as the data you collect.

Speaker Change: Absolutely thanks for the question.

Fidji Simo: The reason I talked about operating data in the in.

Fidji Simo: In the letter is because very often we talk about I think it's the best prediction models and things like that which is incredibly important I want to be clear, but even if someone literally duplicated right now all of a prediction models.

Fidji Simo: It didn't have the 10 years of operating data as a model wouldn't be that accurate.

Fidji Simo: Hanmi as smart as the data you collect and so.

Fidji Simo: And so what we've done is really amass a large pool of data, both on the consumer side and on the inventory side. On the consumer side, it's, you know, 11 to 12 years of large basket data of, you know, everything that customers want to buy, everything that they substitute, which is critical, because that allows us, if an item is not on the shelf, to substitute it with something that they prefer. Lots of data about, you know, the types of products that are complementary to others so that we can surface the best product recommendation and also surface the best ad recommendation.

Fidji Simo: What we've done is really.

Fidji Simo: NASA launched full of data both on the consumer side and also on the inventory side on the consumer side.

Fidji Simo: 11 to 12 years of large baskets data of every thing that customers want to buy everything Thats Z substitutes, which is critical because it allows us if an item is not on the shelves to substitute it with something that they prefer.

Fidji Simo: Lots of data about the types of products that are complementary to other cars that we can sell face the best product recommendation and also stock based the best at.

Fidji Simo: So all of that contributes to a richness of consumer data, which means that when you have invested in Instacart, and you have placed a couple of orders, it's really hard to go to another platform because you would have to rebuild your entire shopping basket, rebuild all of your habits, rebuild all of your preferences, and we have all of that for you. And that's why you see in the letter we mentioned that, you know, 75% of our customers have purchased an item from their buy it again list because, again, this is data we have on all of their purchase history.

Fidji Simo: AD recommendation, so all of that contributes to a richness of consumer data that means that when you are invested in them to call us placed a couple of photos.

Fidji Simo: It's really hard to go to another platform because you would have to rebuild your entire basket to rebuild all of your habits rebuild orajel preferences.

Fidji Simo: And we have all of that for you and Thats why youre seeing.

Fidji Simo: The latter one you mentioned that 75% of our customers.

Fidji Simo:

Fidji Simo: So neither from Soundbite again leased because again this is data we have on all of their purchase history now on the answer kind of a shot upside and inventory side. It is also really critical to have data that allows us to predict what's on the shelf and so again.

Fidji Simo: Now, on the kind of the shopper side and inventory side, it is also really critical to have data that allows us to predict what's on the shelf, and so, again, because we have 600,000 shoppers roaming the aisles of grocery stores, and we partner with retailers to get not only their catalog files, but their, you know, balance on hand data in some cases, And as I've mentioned in previous calls, the biggest compliment that we have on our technology is that some retailers and CPGs are actually using our out-of-stock predictions to optimize their operations, because we know what's on the shelf much more in real time with much more accuracy than retailers and CPGs themselves, and so we see them using our data to optimize their operations. Then, once you have kind of predicted what's on the shelf, you also need shoppers to find the items inside the store, and that's why we have, you know, planograms for, you know, that represent 75% of orders on the platform, so that when the shoppers arrive in the store, they are able to find the item with max efficiency and be able to increase the sound rate.

Fidji Simo: And because we have 600000 <unk> roaming deals of grocery stores, and we felt that with retailers to get.

Fidji Simo: Not only have catalog files, but.

Fidji Simo: Balance on hand data in some cases, we are able to create a system by which we can predict quarter after quarter, what's going to be on the shelves with more accuracy.

Fidji Simo: Given that we have developed all of these technologies to tell us what's exactly on the shelf right now and as I've mentioned in previous calls the biggest compliment that we have on our technologies at some retailers and CPG the auction using our out of stock predictions to.

Fidji Simo: Optimize their operations because we know what's on the shelf much more in real time with much more accuracy than retailers and CPG themselves and so we see them using our data to optimize the operations. Then once you have kind of predicted what's on the shelves you also need shut off to find the items inside the store and that's why we.

Fidji Simo: Have a plan O grams for.

Fidji Simo: 75% of all those on the platform so that when the shutdown horizons install they're unable to find the item with Max efficiency and and be able to increase the foundry and then finally.

Fidji Simo: Recent data and so in the latter because once you're on dawn continuing disorder and your foundry items, sometimes it happens that shut offs could make a mistake and we ship data we're able to tell them in real time now because we can analyze data he actually Mr. Sias them, Hey, you might have a.

Fidji Simo: Switch this item into a different order and allows them to self correct on the spot and so the combination of all of these technologies is really what gives us a massive leadership and results in foundries and shell raised that again I'll hit an all time high since the pandemic. So while we're really proud of this system and continue to improve upon them.

Fidji Simo: And so, the combination of all of these technologies is really what gives us massive leadership and results in sound rates and fill rates that, again, are at an all-time high since the pandemic. So, we're really proud of this system and continue to improve upon it quarter after quarter. Thank you, Fidji.

Fidji Simo: Quarter after quarter.

Fidji Simo: That's great. Thank you Vijay.

Operator: Thank you. One moment for questions. Our next question comes from Tom Champion with Piper Sandler. Good afternoon.

Fidji Simo: Thank you one moment for questions.

Operator: Our next question comes from Tom Champion with Piper Sandler You May proceed.

Tom Champion: Good afternoon.

Tom Champion: I'd love to hear you talk a little bit about affordability and how you're productizing deals within the platform and the product. And I guess, maybe beyond that big picture, could you talk a little bit about your view of the consumer and the range of outcomes you're contemplating for this year? Thank you.

Tom Champion: I'd Love to hear you talk a little bit about affordability.

Tom Champion: And how your product type deals.

Tom Champion: Within within the platform and the product and I guess, maybe.

Tom Champion: Maybe beyond that Big picture could you talk a little bit about your view of the consumer in the range of outcomes here.

Tom Champion: Contemplating for this year. Thank you.

Fidji Simo: So on affordability, we obsess over it. And that's why you are seeing results like, you know, our savings, increasing 20% year over year to $4.75 on items per order. And that's a metric we track really carefully because we want to make sure that when customers come to the platform, we give them a variety of ways to get a deal. And so when you're talking about productizing deals, there are actually a variety of deals and a lot of different products that you have to build to do that. One is loyalty programs. A lot of retailers offer a lot of deals to loyalty program members.

Speaker Change: Yeah. Thanks, so on affordability, we obsess over it and Thats why you are seeing results like savings increasing.

Fidji Simo: Increasing 20% year over year to $4 75.

Fidji Simo: Sense on items to all that and that's a metric we track really carefully because we want to make sure that when customers come to the platform, we give them a variety of ways to get the deal and.

Fidji Simo: And so when you are talking about prototyping deals, there's actually a variety of deals and its a lot of different products that you have to be able to do that one is loyalty programs. So a lot of retailers also a lot of gilts as all LG programs and quarter after quarter, we integrate with the loyalty programs of more and more retailers, which allows us to source a small deals.

Fidji Simo: Quarter after quarter, we integrate with the loyalty programs of more and more retailers, which allows us to surface more deals. We have retailer-funded deals where they are going to offer, for example, $10 off a particular order to attract customers to them. So that's also a platform that we built recently and allows retailers to actually use their own funds to attract delivery customers. We are also digitizing the weekly flyer.

Fidji Simo: We have retail are funded deals where they are going to offer for example, $10 off a particular holder to attract customers to them. So that's also a platform that we've built recently and allows retailers to actually put their own funds to attract delivery customers.

Fidji Simo: We are also digitizing the weekly failure Shilluk offline a lot of people end up looking at the weekly failure in a paper form.

Fidji Simo: If you look offline, a lot of people end up looking at the weekly flyer in paper form before they go to the store to kind of figure out what the deals are that they want to, you know, not forget when they get to the store.

Fidji Simo: They go to the store to kind of figure out what are the deals that they want out not forget when you get to the store, we're digitizing that says that people benefit from that experience.

Fidji Simo: We're digitizing that so that people benefit from that experience. And then, finally, we also have CPGs that are coming in and funding specific deals on that specific product. And we have a format called Stock Up and Save, which is actually an ad format where CPGs can come and basically give a deal for people to buy more of that particular product and get a discount for higher quantities. We also look at savings in terms of delivery options and providing more affordable delivery options like pickup and no rush, so that the people who value price over convenience can have, you know, the great benefits of our service as well.

Fidji Simo: And then finally, we also have CTG not all coming in and funding specific deals on that specific product and we have a format called startup and saves which is actually in that format, where CPG can come and like basically give a deal for people to buy more of that particular.

Fidji Simo: Product.

Fidji Simo: And get a discount for higher quantities.

Fidji Simo: We also look at savings in terms of delivery options and providing more affordable delivery options like pickup and no rush.

Fidji Simo: So that's the people who value.

Fidji Simo: So our convenience can have a great benefits of box office as well.

Fidji Simo: And so all of these add up to really making it feel like the service quarter after quarter becomes more affordable. And that is reflected in the fact that, if you look at our demographics, a couple of years ago, we were very highly concentrated in the affluent demographic, whereas right now, we actually map to the US population pretty closely.

Fidji Simo: So all of these how does that adds up to really making sure like the sale of it quarter after quarter becomes more affordable and that is reflected in the facts that you should look at all demographics. A couple of years ago. It was we were very highly concentrated into a friend demographic, whereas right now we actually map to U S population pretty close.

Fidji Simo: And that's something we're very proud about, because that means that we align with the entirety of the 10. And then finally, you know, you asked me for my view on the consumer. I would say we've seen quite, quite a resilient consumer. On the lower end, we certainly see that people with lower incomes are trying to stretch their budgets, trying to make their dollars go faster. And therefore, they do a lot more planning when they think about grocery shopping.

Fidji Simo: And that's what I'm, saying, while we're very proud about because that means that we align with the entirety of the up to 10.

Fidji Simo: And then finally.

Fidji Simo: You asked me for my view on the consumer I would say, we've seen quite a quite a resilient consumer.

Fidji Simo: I would say on the lower hand, we certainly see that people with lower income of trying to stretch their budget trying to make that go faster and therefore, they do a lot more planning.

Fidji Simo: And as a result, we want to make it as easy as possible for them to get the best deals, to be able to shop multiple retailers, if they want, you know, to combine different deals, and really see us as a place that helps them meet their budget and their family needs in the best possible way. And really meet consumers wherever they want to shop. So that's been really the focus. Thank you. Thank you.

Fidji Simo: When when do you think about grocery shopping and as a result, we wanted to make it as easy as possible for them to get the best deals to be able to shop multiple retailers, if they want to combine different deals.

Fidji Simo: And really see us as a place that can help them meet the Selby.

Fidji Simo: And so it's a family needs in the best possible way and really meeting consumers. However, they want to shop. So that's been really the focus.

Speaker Change: Thank you.

Speaker Change: Thank you one moment for questions.

Operator: One moment for questions. Our next question comes from Steven Fox with Fox Advisors. You may proceed. Hi, good afternoon.

Fidji Simo: Our next question comes from Steven Fox with Fox Advisors, You May proceed.

Steven Fox: Just one question for me on the Uber relationship. I guess, from a financial standpoint, how would you expect it to ramp up, and what should we think about in starting to see some financial benefits from it? Would it be mainly focused on seeing better subscriber growth or user growth? That translates into your business. My understanding from this morning's call is that Uber would basically be using its own couriers and be able to advertise on their space within your channel.

Steven Fox: Hi, Good afternoon, just one question from me on the Uber relationship I guess from a financial standpoint, how would you expect it to ramp in.

Steven Fox: What should we think about and starting to see some financial benefits from it would it be mainly focused on seeing better subscriber growth or user growth that translates into your.

Steven Fox: Your business my understanding from this morning's close that Uber would basically be.

Steven Fox: Using their own careers and be able to advertise on their space within your channel. So can you just sort of give us a sense directionally, how we should think about this helping your business.

Steven Fox: So can you just sort of give us a sense of directionally how we should think about this or earnings over say the next two to six quarters. Yeah, absolutely. Well, we're not gonna obviously give specific guidance here because we have not even launched the service.

Steven Fox: Our earnings over say the next two to six quarters things.

Fidji Simo: But I can tell you at a high level that we are getting an affiliate fee from Uber on orders that we send to them. The deal is Positive Unit Economics Day One for us, which we're excited about, but we're also going to be investing on top of that to ensure the success of the service and adoption. But we're not really looking at, you know, the restaurant business specifically; what we're really looking at is how this deal can help our business overall by making Instacart an even more engaging app, a more frequent use case, and getting us more Instacart Plus subscribers.

Speaker Change: Yes, absolutely.

Fidji Simo: We're not going to obviously guide specifically here because we have not even launched the service, but I can tell you at a high level.

Fidji Simo: We are getting in Australia, Chile from Uber on all those that we send to them.

Fidji Simo: Gil is positive unit economics day, one for us, which we're excited about but we're also going to be investing on top of that to ensure success of the service and adoption, but well not really looking at the.

Fidji Simo: The restaurant business, specifically, what we're really looking at is how you scale can help our business overall by making the call to an even more engaging up more frequent use case by getting us more into the Gulf plus subscribers and so we're going to really be looking at all of these metrics and in fact.

Fidji Simo: And so we're going to really be looking at all of these metrics and, in fact, driving adoption in a way that actually strengthens the entire business, not just get us a restaurant business, but really get us a more engaged customer across all of our services. So that's what we're excited about. And, you know, we'll, in terms of ramping up, we'll have to launch to see that.

Fidji Simo: Driving.

Fidji Simo: Adoption in a way that actually strengthens the entire business not just get us a restaurant business, but really get it and get us a more engaged customer across all of our service is so that's what we're excited about.

Fidji Simo: Well in terms of ramp up we'll have to launch two to see that.

Steven Fox: I appreciate that clarification. Thank you. Thank you. One moment for questions. Our next question comes from Rob Sanderson with Loop Capital Markets. He may proceed. Good afternoon.

Speaker Change: Great I appreciate that clarification. Thank you.

Robert Jason Sanderson: Thank you.

Robert Jason Sanderson: One moment for questions.

Steven Fox: Our next question comes from Rob Sanderson with loop capital markets. You May proceed.

Robert Jason Sanderson: Thank you for taking my question. Many of my near-term questions have been asked and answered, but I wanted to ask about smart carts. What are grocers looking for in terms of improved points to expand deployments? Are they looking at an ROI calculation? Are these just more experimental proof of concept stages at this point? And what would be a reasonable expectation for when we could think about deployment to maybe 5% of stores? Is that something that could happen in a three-year time frame? Is that realistic?

Robert Jason Sanderson: Good afternoon, and thank you for taking my question. Many of my near term questions have been asked and answered, but I wanted to ask about smartcards.

Robert Jason Sanderson: Grocery is looking for in terms of proof points to expand deployments are they looking at ROI calculation or are these just more experimental proof of concept stages at this point.

Robert Jason Sanderson: And what would be a reasonable expectation for when we can think about.

Robert Jason Sanderson: Deployment to maybe 5% of stores is that something that could happen like in a three year timeframe is that realistic and does the hardware costs have to come down meaningfully to think about things like 5% penetration. Thank you.

Fidji Simo: And does the hardware cost have to come down meaningfully to think about things like 5% penetration? Thank you. Thanks, Rob, for the question. So in terms of what grocers are looking at, it's exactly the same as the things we've been obsessing over, which is, do consumers love the product? And is that changing their behavior?

Fidji Simo: Thanks, Rob for the question. So in terms of what grocers are looking at it is exactly the same as the things we've been obsessing over all which is do consumers love the product and is that changing their behavior and he answer so far based on what we've seen is a resounding yes.

Fidji Simo: And the answer so far, based on what we've seen, is a resounding yes. We have seen consumers absolutely love using the carts. We hear a lot of anecdotes saying that consumers are seeking out the stores that have carts deployed. We certainly have seen that from Schnucks.

Fidji Simo: <unk> seen consumers.

Fidji Simo: Absolutely loved using the costs that we have a lot of anecdotes, saying that consumers.

Fidji Simo: Consumers.

Fidji Simo: Seeking the stores that have deployed.

Fidji Simo: We've certainly seen that some snacks snack.

Fidji Simo: Schnucks also gave us a data point that I put in the letter saying that people who use the carts end up having larger baskets than other carts. And that is a very big driver, as you can imagine, of grocers wanting to adopt that because that allows them to have a higher basket size of, you know, consumers that can skip checkout and have an experience that is a lot more engaging and can create competitive differentiation for them.

Fidji Simo: Snacks also gave us the data points that I put in the letter, saying that people who use the call to end up having larger baskets than are the hubs and that is a very big driver as you can imagine of grocers wanting to adopt <unk> because that allows them to.

Fidji Simo: You know a high a higher basket size of.

Fidji Simo: Because consumers Atkins keeps checkout and have an experience that is a lot more engaging and can create competitive differentiation for them.

Fidji Simo: So we've been really obsessed with, you know, the consumer reaction, very encouraged by it. And that's why you're seeing us really pour more fuel on Kapor and seeing retailers very excited to deploy it. In terms of ramping up, you know, I would say we are in many, many pilots with the largest grocers, whether it's Kroger, Wakefirm, Sobeys, Schnucks, the list goes on. And so we expect to have, you know, thousands of carts deployed by the end of the year.

Fidji Simo: So we've been really obsess over you know the consumer reaction very encouraged by it and that's why you're seeing us.

Fidji Simo: We the promo fuel on the on Cooper and seeing retailers are very excited to deploy that.

Fidji Simo: In terms of ramp up you know I would say we are you seeing the latter we all are in many.

Fidji Simo: Many pilots with the largest grocers with them its program waste. So these snacks the list goes on.

Fidji Simo: And then I think, you know, it really depends on kind of how those deployments go, but it could scale to many more. We are not, you know, guiding to a specific timeline because there are a lot of unknowns.

Fidji Simo: And so we expect to have thousands of costs deployed by the end of suggest and then I think it really depends on kind of how.

Fidji Simo: We'll also deploy them in school, but it could scale to many more we are not guiding.

Fidji Simo: Guiding to a specific timeline because all of a lot of unknowns, but we think that we have everything that we need to be able to to scale. These calls in terms of cost.

Fidji Simo: But we think that we have everything that we need to be able to scale these carts. In terms of costs, you know, we will work to get the hardware costs down in the future, no doubt. But that's not really the main blocker to deployment.

Fidji Simo: We will work to get the whole drive costs down in the future no doubt, but that's not really used to Maine.

Fidji Simo: Our main block after deployment I would say that's a big part of it. So it's a business model for <unk> is going to come from advertising and that's another reason why retailers all really excited about keep our costs because it becomes a completely new incremental line of business for them off I think advertising inside the store.

Fidji Simo: I would say that a big part of the business model for Kapor is going to come from advertising. And that's another reason why retailers are really excited about Kapor Carts because it becomes a completely new line of business for them to add advertising inside the store on the screen of Kapor Carts and a source of revenue for us that can justify putting more of the carts out there. Thank you, Fiji.

Fidji Simo: On the screen escaped us calls and a source of revenue for us that can justify putting more of the cost out there.

Fiji: Thank you PJ.

Speaker Change: Thank you.

Ross Albert Compton: Thanks. One moment for questions. Our next question comes from Ross Compton with Macquarie. You may proceed. Hi Fidji.

Fidji Simo: One moment for questions.

Ross Albert Compton: Our next question comes from Ross <unk> with Macquarie You May proceed.

Fidji Simo: In your S1, you estimate that the enterprise segment drove an estimated 20% of company GTV in 2022. And I think what's really interesting is your model, given the economics are similar on marketplace and enterprise, you're agnostic to where the demand comes from. I was wondering if you would share how enterprise is evolving, and whether as more grocers kind of enter the online space and are required to adopt your technological tools to kind of compete against Whole Foods and others. Do you see this kind of rising tide lifting all boats?

Ross Albert Compton: Hi, Savi.

Fidji Simo: It's one you estimate that the enterprise.

Fidji Simo: Segment drove an estimated 20% of company <unk> in 2022, and I think what's really interesting is.

Fidji Simo: Your model given the economics are similar on marketplace enterprise, you're agnostic to where the demand comes from I was wondering if you could share how enterprises evolving and where that was more coaches kind of into the online space and are required to adopt a technological tools kind of compete against whole foods and others do you see this kind of rising tide lift all boats and even though in order.

Fidji Simo: And even though an order might not occur on the marketplace, you kind of win the economics on the enterprise tool. Thanks Ross, great question. You're right; we remain agnostic between marketplace and white label.

Fidji Simo: It might not occur on marketplace, you kind of wind economics on the on the enterprise tools.

Fidji Simo: And that actually makes us a really strategic partner for grocers because, as you can imagine, in the case of grocers, they would prefer an order to go through their own unoperated platform. And so the fact that, you know, we are a partner at the table that wants to grow their O&O as much as we want to grow the marketplace is a very strong competitive advantage for us. We have seen growth of, you know, white label to be roughly in line with the marketplace, which has remained consistent for a few years.

Speaker Change: Thanks, Ross Great question.

Fidji Simo: We remain agnostic between marketplace and white label and was that actually makes us a really strategic partner for grocers because as you can imagine in the case of <unk>. They would prefer to go to through the owned and operated platform and so the fact that we are a partner at the table that wants to grow.

Fidji Simo: I hope I know as much as we want to grow marketplace is it is a very strong competitive advantage for us we have seen growth of <unk>.

Fidji Simo: White label to be roughly in line with market place. That's remained consistent for folks to do what we are seeing and I mentioned in the letter is a deepening of our rental price relationship with closer where in the past it might have been just following desktop phone calls just powering our fulfillment and now we are actually powering more.

Fidji Simo: What we are seeing, and I mentioned the latter, is a deepening of our enterprise relationship with grocers, where in the past, we might have been just powering their storefront or just powering their fulfillment. And now we are actually powering more and more things for them, whether it's FoodStorm, or we power their catering business, or we power Capercots, where we now enter their store. And what they really value is that all of these products are completely integrated.

Fidji Simo: And more things for them, whether it's food storm, while we power the catering business with us keep our costs well and we now enter that.

Fidji Simo: So and what they really value is that all of these products are completely integrated and so if you look at the deal. We just announced we save Mark well, we'll be going to power everything for them from their storefront solution to keep off calls two foot storm.

Fidji Simo: And so if you look at the deal we just announced with SaveMark, where we're really going to power everything for them from their storefront solution, to Capercots, to FoodStorm, to carrot ads, it's a great example of our enterprise strategy, really winning the day. Because you can now, you know, surface ads, again, not just on our marketplace, but surface ads on storefront products, surface ads on Capercot If SaveMark is using our Capercots, you can get people to reorder their in-store basket online. So the fact that we power both Capercots and their storefront is incredibly helpful. You can order catering from the Capercots.

Fidji Simo: Two carat of ads is a great example of Oh handle price strategy.

Fidji Simo: Winning the day because you now can sell face again, not just on our marketplace itself has had on stock control stuff. They start on keeps our costs are.

Fidji Simo: <unk> market using our K per car you can get people to reorder, they're installed basket online. So the fact that with our basketball courts and the storefront is incredibly hopeful you can all dust catering from the Cape book also against the fact that we have put some catering are integrated with Cape Cod is another integration that.

Fidji Simo: So again, the fact that we have FoodStorm catering integrated with Capercots is another integration that they love. And so when they come to us, it's not four-point solutions; it's now for a completely integrated product suite that they get to benefit from end to end, instead of having to integrate with 10 different vendors, who may be, you know, may have disjointed solutions. Great. Thank you very much.

Fidji Simo: They love and so when they come to us it's not for point solutions is now for a completely integrated product suite.

Fidji Simo: I did get some benefit from end to end instead of having to integrate with 10 different vendors.

Fidji Simo: Well maybe.

Fidji Simo: John <unk> solutions.

Speaker Change: Great. Thank you very much.

Speaker Change: Thank you.

Operator: Thank you. One moment for questions. Our next question comes from Justin Post with Bank of America. Hi, this is Steven McDermidon on behalf of Justin Post.

Speaker Change: One moment for questions.

Steven Fox: Our next question comes from Justin Post with Bank of America. You May proceed.

Steven Fox: In your shareholder letter, you touched on driving supply through increasing the delivery areas of customers. I was just wondering if you could flesh out some of those efficiency improvements that allowed that and kind of how the evolution of supply growth looks like going forward, given the higher penetration among customers or among grocers. Thank you. Thank you. We've always had a very strong supply.

Steven Fox: Hi, This is Steven the terminal on for Justin Post.

Steven Fox: In your shareholder letter you touched about driving supply through increasing the delivery areas with customers.

Steven Fox: I was just wondering if you could flesh out some of those.

Steven Fox: As you can see improvements.

Steven Fox: And kind of how the evolution of supply growth.

Speaker Change: Looks like going forward kind of.

Steven Fox: Given the higher penetration among customer or among grocers. Thank you.

Fidji Simo: And, you know, we continue to have waitlists for shoppers in many cities, and we have very high satisfaction rates with 80% of shoppers saying that they would recommend this work to someone else, and 80% of them saying that Instacart offers well-paid opportunities. So the fact that we have such attractiveness for shoppers is certainly helping us. Then, in addition to that, what we are doing is better matching the shopper supply we do have with the demand that comes onto the platform.

Speaker Change: Thank you.

Fidji Simo: We've always had a very.

Fidji Simo: Strong supply and we continue to have a waiting list for shoppers in many cities.

Fidji Simo: And very high satisfaction of shoppers with 80% of shoppers.

Fidji Simo: Saying that they wouldn't be commended just walk to someone else and 80% of them seeing that in Chicago felt well paid opportunities. So the fact that we have.

Fidji Simo: Such attractiveness workshop held itself and the helping US then in addition to that what we are doing is better matching the shutoff supply. We do have with the demand that comes onto the platform and a good example of that is so see expansion of the delivery radius that we did in Q1.

Fidji Simo: And a good example of that is the expansion of the delivery radius that we did in Q1, where we allowed 80% of customers to have access to at least one new retailer by, you know, expanding the delivery radius because we have shoppers that are, you know, okay, and excited to drive longer. What you're also seeing is that we are continuing to drive shopper efficiencies via batching and time-to-deliver orders. And that's what has helped transaction revenue and allowed us to reinvest in the business.

Fidji Simo: <unk> allowed 80% of customers to have access to at least one new retailer by.

Fidji Simo: Pending he's delivery wages, because we have shutdowns at all okay.

Fidji Simo: And excited to drive long distances.

Fidji Simo: What you're seeing also is that we are continuing to drive shopper or efficiencies that Shang and time to deliver all those.

Fidji Simo: And that's what is the whole transaction revenue and allowed us to reinvest in the business and we are doing that.

Fidji Simo: And we are doing that while also increasing shopper earnings. And so that's really what we continue to obsess over. It's becoming a lot more efficient, which allows us to reinvest in the business, while also giving shoppers more earning opportunities. And the fact that we've been able to drive both of these outcomes is really exciting.

Fidji Simo: While also increasing shop earnings and so that's really what we we continue to obsess about it becoming a lot more of extension, which allows us to reinvest in the business, but also doing shutdowns more earning opportunities and the fact that we've been able to drive both of these outcomes.

Fidji Simo: It was really exciting.

Speaker Change: Got it thank you.

Speaker Change: Thank you.

Operator: Thank you. Thank you. One moment for a question. Our next question comes from Mark Zgutowicz with The Benchmark Company. Hi guys, this is Alex Noppermark.

Fidji Simo: One moment for our questions.

Mark Zgutowicz: Our next question comes from Mark <unk> with the Benchmark Company you May proceed.

Alex Noppermark: Hi, guys. This is Alex on for Mark. Thanks for taking the question regarding opportunities to Reaccelerate advertising growth from a high level, how would you characterize the relative reliance on net new active brand additions versus improving same client spend I'm. Just curious how this dynamic has trended year to date. Thank you.

Alex Noppermark: Thanks for taking the question. Regarding opportunities to reaccelerate advertising growth from a high level, how would you characterize the relative reliance on that new active brand edition versus improving same client spend? I'm just curious how this dynamic has trended to your date. Thank you; it was a great question.

Fidji Simo: The thing I can tell you is that we have thousands of brands that are growing well into the double digits. But we also have a few large brands that have pulled back spend for reasons that are very specific to their own business. And these few brands can have too much of a meaningful impact on overall growth rates.

Speaker Change: That's a great question.

Fidji Simo: Because the thing I can tell you is we have solvency of brands that are growing well into the double digits.

Fidji Simo: But we also have a few large brands that have pulled back spend for reasons that are very specific to their own business and his shoe brands can have two meaningful of an impact on overall growth rates to give you. An example, we see shaft and large alcohol brands that have pullback spans because of everything that's happening in Hong Kong.

Fidji Simo: To give you an example, we see certain large alcohol brands that have pulled back spend because of everything that's happening in the alcohol category. And because we are still concentrated on the large brands, we are seeing this impact kind of outsized on our platform. And so it's a really big priority for me to continue diversifying the business so that we can see less impact when some large brands face challenges in their own businesses.

Fidji Simo: What category and because we are concentrated in the large brands we are seeing just impact.

Fidji Simo: Kind of outsized on our platform and so it's a really big priority for me as you can see new diversifying business.

Fidji Simo: So that we can see less impact when some large brands faced challenges in their own business.

Fidji Simo: I do think that a lot of it is going to come from adding new brands to the platform. But I also think that we have many brands, both large and small, that are still underindexed in terms of ad spend on the platform compared to the performance we drive.

Fidji Simo: I do think that a lot of it is going to come from.

Fidji Simo: New brands to the platform, but I also saying that we have many brands both large and small that are still under indexed in terms of our AD spend on the platform compared to the performance we drive and that's why it's been so focused on measurement and proving to performance because we need to be able to go to <unk>.

Fidji Simo: And that's why I've been so focused on measurements and proving performance because we need to be able to go to these brands with absolutely clear data that if they invest more, we will drive more sales. And now that we have all of these proof points, this is going to be a very big focus of the year, continuing to convince existing brands that are not advertising enough as well as new brands to come onto the platform. So a very big priority. Very helpful.

Fidji Simo: <unk>, absolutely clear data that easy invest more we will drive more sales and now that we have all of these proof points. This is going to be a very big focus of the job of continuing to convince existing brands.

Fidji Simo: Advertising enough as well as new brands to come onto the platform so they're a big priority.

Speaker Change: Very helpful. Thank you.

Operator: And as a reminder, to ask a question, you will need to press star 11 on your telephone. One moment, please. Our next question comes from Bernie McTernan with Needham. Hi, this is Stephanos Crist calling in from Bernie.

Speaker Change: Thank you and as a reminder to ask a question you will need to press star one on your telephone.

Stephanos Crist: One moment for questions.

Stephanos Crist: Thanks for taking our questions. Emily, congratulations on the new role. I would love to just hear some of your goals and plans, maybe over the short and long term, anything different you'd like to do. Thanks. Thanks, Bernie. And thanks for the congratulations. So I don't really think about it as doing things differently.

Stephanos Crist: Our next question comes from Bernie Mcternan with Needham you May proceed.

Stephanos Crist: Hi, This is stefanos crist, calling in from Bernie Thanks for taking my questions.

Stephanos Crist: Emily a congratulations on the new role.

Speaker Change: Would love to just hear some of your goals and plans.

Bernie: Over the short and long term anything different you'd like to do.

Emily Reuter: I think like Nick, I'm focused on creating the most valuable company and, you know, generating long-term free cash flow for shareholders. So that's really translated into me being focused on finding attractive opportunities for investment and growth. That's also creating a strong portfolio of offerings that serve a broad swath of consumers and meeting them where they are in terms of their consumer journey, but also focused on driving operating leverage and delivering improving profitability over time.

Speaker Change: Thanks, Bernie and.

Speaker Change: Thanks for the congratulations so I don't really think about doing things differently, I think like Nick and focus on creating the most valuable company and generating long term free cash flow for sure. So that's that.

Emily Reuter: Really.

Emily Reuter: Translated into me focused on finding attractive opportunities for investment in growth.

Emily Reuter: Is also creating a strong portfolio of offerings that serve a broad swath of consumers and meeting them, where they are in terms of their consumer journey.

Emily Reuter: But also focus on driving operating leverage and delivering improving profitability over time.

Speaker Change: I think lastly, I'll comment on we've executed a pretty large share repurchase program, which has helped execute over the last few months and we've driven $750 million of share repurchase.

Emily Reuter: By the end of Q1.

Speaker Change: I think the other thing I'll focus on is just how I'll ever see that I think if you look at my background.

Emily Reuter: We're able to leverage 10, plus years of operating experience in a market where obsessing over deepening our leadership position was critical I've seen very highly competitive markets and see what it looks like to deepen those competitive positions and also see what it looks like to lose ground. So I'm very focused on that particularly as <unk> has an incredible lead and I want to make sure we remain positioned to deep.

Emily Reuter: But not lead that's been partnering closely with BG and the team to ensure that happens.

Emily Reuter: Doing all of that obviously investing in those right opportunities, while continuing to drive profitability.

Emily Reuter: Okay.

Speaker Change: Thank you.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

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Emily Reuter: Good day and thank you for standing by welcome to <unk> first quarter 2024 financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one on your telephone please limit yourselves to.

Emily Reuter: One question and one follow up so that we will have enough time to address everyone's questions. Please be advised that today's conference is being recorded I would now like to hand, the conference over to Rebecca <unk> VP of Investor Relations capital markets and Treasury. Please go ahead.

Emily Reuter: I think, you know, if you look at my background, I'm able to leverage 10 plus years of operating experience in a market where obsessing over deepening our leadership position was critical. I've seen very highly competitive markets. I've seen what it looks like to deepen those competitive positions. I've also seen what it looks like to lose ground.

Operator: So I'm very focused on that, particularly as Instacart has an incredible lead, and I want to make sure we remain positioned to deepen that lead. So I'm partnering closely with Fiji and the team to ensure that happens. Doing all that, obviously investing in those right opportunities while continuing to drive profitability. Thank you. This concludes today's conference call. Thank you for participating. You may now, [inaudible] www.youtube.com.uk www.youtube.com.uk www.youtube.com.uk Fidji Simo, Nick Giovanni, Robert Sanderson, Nick Giovanni, Robert Sanderson, Nick Giovanni, [inaudible] Thanks for watching!

Speaker Change: Thank you, Josh and welcome everyone to <unk> first quarter 2024 earnings call on the call with me today are <unk>, our Chief Executive Officer, Nick Giovanni <unk>, Our current Chief Financial Officer, and Emily Reuter, Our current vice President of finance and incoming Chief Financial Officer.

Operator: After brief prepared remarks, we will open up the call for live questions with CG and Emily.

Operator: During today's call, we will make forward looking statements related to our business plan and strategy future performance and prospects, including our expectations regarding financial results partnerships equity issuances and share repurchases.

Operator: These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated you can find more information about these risks and uncertainties, including those related to the classification of shoppers on our platform and our last Form 10-K.

Operator: Filled with the SEC.

Operator: We assume no obligation to update these statements after today's call except as required by law.

Operator: In addition, we will also discuss certain non-GAAP financial measures, which have limitations and should not be considered in isolation from or a substitute for our GAAP results. A reconciliation between these GAAP and non-GAAP financial measures is included in our shareholder letter, which can be found on our Investor Relations website.

Operator: Good day, and thank you for standing by. Welcome to Instacart's first quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode.

Fidji Simo: Now I'll turn the call over to <unk> for her opening remarks.

Speaker Change: Thanks, Rebecca Hi, everyone. I Hope you had a chance to read our shareholder letter, which highlights a strong start to 2024 and how we're continuing to raise the bar across bowls and most important dimension of groceries.

Rebecca Yoshiyama: As the largest online grocery market Michelin North America, we provide 98% of families with access to delivery and pickup from over 1500 retail banners will represent more than 85% of U S grocery sales on.

Rebecca Yoshiyama: On top of the best selection, 45% of our holders of accepted by shoppers who are already at all within a mile of the store, which means youre first item is often being kicked out faster, but it might take you to get out the front door.

Rebecca Yoshiyama: Of shoppers also how does the advantages of experience and our technologies with shock of tenure on the platform at an all time high constant improvements to our models and installed tools like Cana grams shoppers can compete all the faster and with more accuracy.

Rebecca Yoshiyama: Simply put no other marketplace ourselves in meeting customer experience, we provide at the scale and competitive cost we delivered that.

Rebecca Yoshiyama: And now by partnering with Uber, we're giving people more of what Theyre looking for.

Rebecca Yoshiyama: By bringing on hundreds of thousands of restaurants to intercourse overnight, we're creating an unmatched combination of grocery and restaurant options falling to golf customers.

Rebecca Yoshiyama: <unk> App can now sell more of our customers needs and our <unk> plus membership becomes twice as valuable with no delivery fee on grocery and restaurant hold of over $35.

Rebecca Yoshiyama: By giving our customers more reasons to come to in the call. We believe will also be able to drive more sales and growth opportunities for retail and brand pulp mills, which remains our top priority.

Rebecca Yoshiyama: Overall I'm excited for what's ahead for <unk> in 2024 and beyond we have a strong operating foundation, a relentless focus on profitable growth and we're executing well on our vision to build the technologies that are transforming the grocery industry.

Rebecca Yoshiyama: So it is with great confidence that we announced Emily Reuter as our next Chief Financial Officer, Nick will retire at the end of Q2 and annual his role is affected immediately after we file our Form 10-Q, which is expected later this week as Nick and I discuss the best CFO profiles for future business I wanted.

Rebecca Yoshiyama: One was the depth of operating experience in a complex marketplace business similar to our own we've found out and more in annually and she has been contributing enormous fees. Since he joined in January annually is undoubtedly the best CFO to help drive <unk> future.

Rebecca Yoshiyama: I wanted to thank Nick for his exceptional contribution over the past few years by introducing a new level of financial rigor across the company Nick help transform our business into one that deliver strong profitable growth and was one of very few tech companies that could make a successful public market debut last year now ill turn the call over to Nick to provide.

Fidji Simo: A few remarks.

Rebecca Yoshiyama: Yeah.

Fidji Simo: Thank you <unk>. It has been an incredible three and a half years and I'm very proud of what we've accomplished together and support the level of execution and teamwork required to create.

Fidji Simo: <unk> profitable and growing company and then to take it public after the longest tech IPO drought in history with one of the most satisfying experiences I've had in my career is the cart is in a great position as the clear leader with strong operating fundamentals and after working closely with Emily over these past several months I'm certain that our team our partners and our shareholders cannot be in better hands.

Fidji Simo: On top of the best selection, 45% of our orders are accepted by shoppers who are already at or within a mile of the store, which means your first item is often picked out faster than it might take you to get out the front door. Our shoppers also have the advantages of experience and our technology. With shopper tenure on the platform at an all-time high, constant improvements to our models, and in-store tools like planograms, shoppers can complete orders faster and with more accuracy.

Fidji Simo: Simply put, no other marketplace offers the leading customer experience we provide at the scale and competitive cost we deliver it at. And now, by partnering with Uber, we're giving people more of what they're looking for. By bringing hundreds of thousands of restaurants to Instacart overnight, we're creating an unmatched combination of grocery and restaurant options for Instacart customers. The Instacart app can now serve more of our customers' food needs, and our Instacart Plus membership becomes twice as valuable with no delivery on grocery and restaurant orders over $35.

Fidji Simo: By giving our customers more reasons to turn to Instacart, we believe we'll also be able to drive more sales and growth opportunities for retail and brand partners, which remains our top priority. Overall, I'm excited for what's ahead for Instacart in 2024 and beyond. We have a strong operating foundation, a relentless focus on profitable growth, and we're executing well on our vision to build the technologies that are transforming the grocery industry. So it is with great confidence that we announce Emily Reuter as our next Chief Financial Officer. Nick will retire at the end of Q2, and Emily's role will be affected immediately after we file our Form 10-Q, which is expected later this week.

Emily Reuter: It has been a pleasure engaging with all of our investors and analysts over the past few years. Thank you all and with that I'll step off the call and turn it over to Emily.

Speaker Change: Thank you <unk> since joining <unk> in January I've become even more bullish on the companys future.

Emily Reuter: Joined <unk> because of its clear leadership position with an online grocery and it's impressive vision for the future of grocery technology now.

Emily Reuter: I'm now even more confident in our ability to capture our share of the massive market opportunity ahead.

Emily Reuter: The depth of our technology integrations, as well as the breadth of our longstanding retailer and brand partnerships. Our ability to deliver a great customer experience. This means having the best selection combined with high-quality service, all at the price and speed customers want it. Our cost-to-serve advantage is underpinned by our ability to fulfill multiple big-basket grocery orders from the same store at the same time. This allows us to generate efficiencies from batching while also giving shoppers more earning opportunities.

Emily Reuter: Confidence is driven by a few things the depth of our technology integrations as well as the breadth of our longstanding retailer and brand partnerships.

Emily Reuter: Our ability to deliver a great customer experience. This means having the best selection combined with high quality service all at the price and speed customers want it.

Emily Reuter: Our cost to serve advantaged underpinned by our ability to fulfill multiple big basket grocery orders from the same store at the same time.

Emily Reuter: This allows us to generate efficiencies from batch a while also giving shoppers more earnings opportunities.

Emily Reuter: And finally, we aren't just focused on delivering results for the next few quarters or years, we're investing in technologies that will shape, the future of grocery and grow the pie for all our stakeholders.

Emily Reuter: Now, let me provide more color on our financial results and outlooks. Q1 was an exceptionally strong quarter for us, with both GTV and adjusted EBITDA beating the high end of our guidance ranges. On the one hand, our outperformance on GTV was driven by a continuation of trends we've been discussing. This includes improving cohort dynamics consistent with what we've said in the past, which is that our mature cohort declines continue to improve, and our new cohorts continue to be bigger than pre-pandemic cohorts.

Emily Reuter: Now, let me provide more color on our financial results and outlook.

Emily Reuter: Q1 was an exceptionally strong quarter for us with the CTV and adjusted EBITDA, beating the high end of our guidance ranges on one hand, our outperformance in <unk> was driven by a continuation of trends. We've been discussing this includes improving cohort dynamics consistent with what we said in the past, which is our mature cohort declines continued to improve and our new.

Emily Reuter: <unk> continue to be bigger than pre pandemic cohort.

Emily Reuter: After taking all of these factors into consideration, as well as what we've seen so far in this quarter, we arrive at our Q2 GTP guidance of $8.15 billion, representing 7-9% year-over-year growth. This growth output is a bit lower than in Q1, primarily because we don't expect the benefit of inclement weather.

Emily Reuter: After taking all of these factors into consideration as well as what we've seen so far in this quarter. We arrive at our Q2 GTP guidance of eight to 815 billion, representing 7% to 9% year over year growth.

Emily Reuter: While Q2 growth will not have the benefit of leap day, we largely expect this to be offset by EBT snapback, moving from a modest year-over-year headwind to a tailwind from Q1 to Q2. Overall, our Q2 GTB Outlook represents a sustained step up versus the 5% year-over-year growth we delivered in 2023. We are also guiding to strong Q2 adjusted EBITDA of $180 to $190 million and are well on track to delivering adjusted EBITDA expansions in full year 2024 on both an absolute and percent of GTV basis.

Emily Reuter: Overall, our Q2 GDP outlook represents a sustained step up versus the 5% year over year growth we delivered in 2023.

Emily Reuter: We are also guiding to strong Q2, adjusted EBITDA of $180 million to $190 million.

Emily Reuter: And are well on track to delivering adjusted EBITDA expansion and full year 2024 on both an absolute and percent of GDP basis.

Emily Reuter: And adjusted Opex leverage.

Emily Reuter: We are also continuing to take a disciplined approach to equity management. We continue to expect net dilution to be in the low single digits before any share repurchases and in 2024, we're committed to making sure that the net value of equity with great employees. This year is less than the adjusted EBITDA, we delivered in 2023.

Emily Reuter: We are confident in our ability to execute and generate more shareholder value over time. This is why we cumulatively repurchased approximately 27 million shares for $751 million by the end of Q1.

Emily Reuter: As of March 31, we had $249 million of remaining share repurchase capacity and plan to continue Opportunistically repurchasing shares.

Emily Reuter: We don't expect these new growth initiatives to material impact materially impact our financials. In Q2, we believe that they have the potential to drive more value to consumers and growth to our retail and brand partners overtime.

Emily Reuter: We also expect all of this will help us drive more profitable growth and progress towards our long term financial targets overtime.

Emily Reuter: We're excited about the future and we appreciate your support as shareholders.

Speaker Change: With that Peter and I are here to take your questions. Operator, you may now begin.

Operator: Please limit yourself to one question and one follow-up. Please stand by while we compile the Q&A, Ross. Our first question comes from Eric Sheridan with Goldman Sachs. Thanks for taking the question. And Nick, thanks for all the assistance and help over the years. And Emily, best of luck in the role going forward.

Emily Reuter: Thank you as a reminder to ask a question you will need to press star one on your telephone please limit yourself to one question and one follow up please standby, while we compile the Q&A roster.

Operator: Our first question comes from Eric Sheridan with Goldman Sachs. You May proceed.

Operator: Thanks for taking the question and Nick Thanks for all the assistance and help over the years and Emily Best of luck in the role going forward.

Eric Sheridan: Maybe I'll ask sort of a two parter.

Eric Sheridan: In terms of the building blocks of <unk> growth as you think medium to longer term can you unpack, how youre thinking about the broader consumer demand on the platform.

Eric Sheridan: Put a sort of continued supply growth more broadly and how to think about stimulating rising utility amongst your user base should we think about sort of longer term objectives around GTD against broader industry growth. Thank you so much.

Speaker Change: Thanks, Eric for the question. So we are still very excited about the long term growth that we anticipate in a market that is still moving online and sell GP Underpenetrated online what we see as the building blocks of that long term growth of kind of the same.

Fidji Simo: Things that are making us succeed today, and allowing US all this leadership position.

Fidji Simo: Number one is selection we continue to have leading selection and we are in fact, continuing to increase in selection not just in grocery, but now also adding a new use case with restaurants, while unable to add hundreds of thousands of restaurants overnight, which will create a new use case for the up quality is absolutely critical.

Fidji Simo: It seems a lot of more details on how we continue to improve that.

Fidji Simo: <unk> at an all time high since the pandemic on ton rate in shell right and we have a real leadership position there who is not only a very healthy short of supply, but shut buildup of highly qualified and at the highest of Dovetailing out right now.

Fidji Simo: We also see <unk> being a critical advantage, which again is tied to short of supply with 45% of shoppers being also saw within a mile of the store and that means that we can deliver these all the SaaS sales on anyone and we know that speed models enormous changes market. It's the last one is affordability that we.

Fidji Simo: The thing that we need to keep walking out to continue expanding the Tam and we are hard at work on it.

Fidji Simo: Our multi pronged approach, what we are adding a lot of different savings, whether it's from retailers from CPG loyalty programs weekly fliers.

Fidji Simo: And really working with retailers on optimizing our pricing so that the customer that buys online shelled eggs are getting maximum value and you're seeing us make progress on that as well is $4.75 saved on the items per order, which is up 20% year over year. So is this components are unchanging Z all what's going to drive long term grow.

Nikhil Devnani: And every quarter Youre going to hear us talk about how we're making progress on all of them to really activate the growth now at a macro level. We are we are also talks about the fact that mature cohorts improving quarter after quarter. As we saw again this quarter is definitely a big driver of long term growth as well as new cohorts continuing.

Fidji Simo: To get the gas, which is certainly what we've seen in 2003 and nine 2012 compared to pre pandemic. So we feel very well set up for the long term.

Nikhil Devnani: Thank you.

Nikhil Devnani: One moment for questions.

Nikhil Devnani: Our next question comes from Nicole <unk> with Bernstein you May proceed.

Nikhil Devnani: Alright. Thank you for taking the question I wanted to ask about reinvestment. Please it looks like your transaction revenue stepped up a bit sequentially and sales and marketing was sort of flattish as a percent of GTA V sequentially as well given you beat the guidance pretty comfortably on EBITDA did you look at the possibility of reinvesting.

Nikhil Devnani: That excess profit to support growth for the rest of the year I guess why not go on the front foot more was it simply a lack of ROI on some of that investment or do other factors come into play as well. Thank you.

Emily Reuter: As well? Thank you. So I want to be clear that we actually did reinvest to support growth. And that's not always seen in the sales and marketing line. Sometimes it's seen in the incentive line, which is contra revenue.

Emily Reuter: So I wanted to be sure that we actually did we invest to support growth and thats not always seen in the sales and marketing line, sometimes it seeming to incentive line, we should contract revenue.

Emily Reuter: And the reason we have been able to reinvest to support growth while having high confidence that this will return is because we have really overhauled our incentive system in the last year to be able to really target the right incentives to the right customers at the right time to drive long-term value, to drive habituation, and to drive more engaged customers. And so what you're seeing us do is actually reinvest heavily in the business to continue to support that growth. That may not appear in the numbers immediately because we take a long-term view of these reinvestments.

Emily Reuter: Reason, we have been able to reinvest to support growth, while having high confidence that this will return is because we have really over a hold all incentive system in the last trial to be able to really target the right incentives the right customers at the right time to drive long term value to drive a deterioration to drive.

Emily Reuter: More engaged customers and so what you're seeing US do is actually reinvest heavily into the business to continue to support that growth. So that may not appear in the numbers immediately because we take a long term view to this reinvestment and so some of these incentives all marketing might be driven long term retention.

Emily Reuter: Like for example, getting you to adopt one more retailer whole one most category all buying from a club all of which are predictors of long term retention and health.

Emily Reuter: <unk> and so you might see that pay off over the longer term rather than in quarter, but we are very much investing in the business and don't feel limited.

Emily Reuter: In our ability to invest.

Speaker Change: Great. Thank you.

Speaker Change: Thank you.

Ross Adam Sandler: One moment for questions. Our next question comes from Ross Sandler with Barclays; he may ask, Hey, Fidji, just a couple of questions on these partnerships. So I guess first, maybe we can clear the air on the Amazon elephant in the room.

Speaker Change: One moment for questions.

Ross Adam Sandler: Our next question comes from Ross Sandler with Barclays. You May proceed.

Ross Adam Sandler: Hey, just a couple of questions on these partnerships.

Ross Adam Sandler: So I guess first maybe we can clear the air on the Amazon Elephant in the room, you guys work with whole foods in Canada sounds like Amazon is going to go another push here.

Ross Adam Sandler: There are new pricing mechanism for prime in the U S.

Ross Adam Sandler: I guess, what's your view on that and then is there any reason why at some point in the future.

Ross Adam Sandler: Or whatever.

Ross Adam Sandler: You can go back to working with whole foods, but the first question and then the second one is on <unk>.

Ross Adam Sandler: <unk> partnership I guess, just how big do you think this could be.

Ross Adam Sandler: So do you think that restaurant ordering will be just folks that our IC plus members, who kind of order all occur from food delivery apps or do you think there is like a high overlap.

Fidji Simo: Josh pass subscribers.

Fidji Simo: Come over and use.

Speaker Change: The court now thanks a lot.

Fidji Simo: Thanks, Ross. So on Amazon specifically, I would say Amazon has experimented with many different pricing structures over the years. They have been testing this add-on subscription for some time, and within this contract, we remain very confident that we still have the winning customer value proposition and some critical advantages. We have the best selection, 1,500 retail partners, reaching 98% of households. We know how much selection matters in this market. That's a key advantage.

Speaker Change: Thanks Ross.

Fidji Simo: On Amazon, specifically I would say Amazon has experimented with many different pricing structures of all the euro we have been testing is add on subscription for some time.

Fidji Simo: And within this contract we remain very confident that we sell at the winning customer value prop in some critical advantages we have the best selection she's Gen. Android retail partners, reaching 98% of households, we know how much selection not opening these markets a key advantage. We also have a key advantage on.

Fidji Simo: Steve as I said, 80% of a hold of on demand off of which our priority whereas.

Fidji Simo: The case with Amazon you have to schedule all of Bell's falling in advance and we know again thats just matter of the notwithstanding this market and we really have the best value witnessed the Gulf plus being $99 now twice as valuable. We get addition of restaurants and not requiring an extra subscription. So we feel really good that in the end you can.

Fidji Simo: So we feel really good that under any construct from this competitor, we will be able to continue gaining share as we have in the past. We work with them in Canada, and we are pleased with the results.

Fidji Simo: Trucks from from just competitor, we will be able to continue gaining share as we have in the past we work with them in Canada. We are pleased with the results.

Fidji Simo: There's no reason why we wouldn't be able to expand to a whole foods, but that's L decision not ours, we would be thrilled to work with them, but that's for them to decide now Uber side.

Fidji Simo: Really excited about the partnership I think this is adding enormous selection overnight as positive unit economics, which as you know, it's really hard to pull off when you enter a completely new category. So we think this is something that's going to be incredibly accretive to the in the Gulf user and on your more specific question on which type of.

Fidji Simo: Usage do we see we actually see that we have a lot of incremental audience is that well does not hubs, especially in family, especially in the suburbs.

Fidji Simo: Which is a big part of why this partnership is also valuable to them.

Jason Helfstein: And we are going to be aggressively wanting to, you know, convert these customers into restaurant customers. We know that our customers already go to other apps to order restaurants. That's why we decided to prioritize entering this category, and I think with the value proposition of Instacart Plus, which is not increasing in price, despite adding all restaurants and free delivery above $35 from both grocery and restaurants, we have a very strong value proposition here with leading selection in grocery and leading selection in restaurants.

Fidji Simo: And we are going to be aggressively wanting to convey.

Jason Helfstein: <unk> customers into restaurant customers, we know that our customers are already go through other ops to order a restaurant. That's why we decided to prioritize entering this category and I think with the value proposition offerings to golf, plus which is not increasing in price, despite adding all restaurants and.

Jason Helfstein: Free delivery above $75 from both grocery and restaurant, we have a very strong value proposition here.

Jason Helfstein: Leading selection in grocery and leading selection in restaurants. So we're really excited about our ability to attract new users and conversion of existing users to become restaurant customers as well and as a result makes them more engaged.

Jason Helfstein: So we're really excited about our ability to attract new users and convert our existing users to become restaurant customers as well, and as a result, make them more engaged. Thank you. One moment for questions. Our next question comes from Jason Helfstein with Oppenheimer. You may proceed. Thanks for taking the questions. Just two questions.

Jason Helfstein: Thank you.

Jason Helfstein: One moment for questions.

Jason Helfstein: Our next question comes from Jason <unk> with.

Jason Helfstein: Oppenheimer you May proceed.

Jason Helfstein: Thanks for taking my question.

Jason Helfstein: Two questions.

Fidji Simo: Some comments about expanding to pick up. How do you think about the savings that a customer gets when they do pick up? We think it's better for the Wal-Mart... Wal-Mart, probably for online.

Jason Helfstein: <unk>.

Jason Helfstein: You had some comments about expanding to pick up.

Jason Helfstein: Just how do you think about like what are those savings in our customer gets when they do pick up and do you think thats better position you to compete with Walmart.

Jason Helfstein: Obviously for online grocery and a second question.

Fidji Simo: The second question... to Uber. Can the economics work to expand the partnership so that they would actually offer your grocery offering on their app? Unknown Speaker Open ended.

Fidji Simo: Mover.

Fidji Simo: Can the economics work to expand the partnership so that they would actually offer your grocery offering on their app. So.

Speaker Change: Open ended question on that thank you.

Fidji Simo: Thank you. So pickup is a big part of our affordability strategy because it is a cheaper option for people who value price over convenience. And so that's why we're focused on it. And that's why we actually made it free this quarter to use pickup.

Fidji Simo: Okay.

Speaker Change: Thank you so on pick up pick up in a big part of our affordability strategy because it is a cheaper option for people who value price of convenience.

Fidji Simo: And so that's why we're focused on it and that's why we actually made it free each quarter to use pickup so to your point on the savings.

Fidji Simo: So to your point on savings, it's a great option for people who may not have the time to get inside the store and want to benefit from those time savings but don't want to pay for delivery. And we see that it is, in fact, a different customer because 75% of pickup orders are incremental. Now, pickup is a smaller part of the overall business, in the big part because we started with groceries, but it's a part that continues to grow.

Fidji Simo: It's a great option for people, who may not have the time to get inside the store and one of the benefits from those time savings, but don't want to pay the cost of delivery and we see that it is in fact to a different customer because 75% of pickup orders are incremental now pickup is a smaller part of our overall business.

Fidji Simo: In default because we started with grocery but it's about the US continues to grow and we continue to expand with large grocers like Kroger, all depths and many more.

Fidji Simo: To continue to grow the pickup business. So we're excited about it but it is a smaller part of our overall business.

Fidji Simo: And we continue to expand with large grocers like Kroger, Alderson, and many more to continue to grow the pickup business. So we're excited about it, but it is a smaller part of our overall business. As for your question on Uber and groceries, to be clear, this partnership was very focused on us entering restaurants.

Fidji Simo: As for your.

Fidji Simo: Question on Uber and grocery.

Fidji Simo: To be clear LC sponsorship was very focused about us entering restaurants, we are still going to compete in grocery and we continue to add leading category share in grocery. So this is something that we're excited to continue to fill that.

Fidji Simo: We are still going to compete in grocery, and we continue to have, you know, a leading category share in grocery. So this is something that we're excited to continue further. Thank you. One moment for questions. Our next question comes from Colin Sebastian with Baird. You may proceed. Great, thanks. And Nick, all the best to you on your next steps. And Emily, welcome and congratulations.

Fidji Simo: Okay.

Colin Alan Sebastian: Thank you.

Colin Alan Sebastian: One moment for questions.

Fidji Simo: Our next question comes from Colin Sebastian with Baird You May proceed.

Colin Alan Sebastian: Great. Thanks, Nick all of that for you on your next steps and Emily welcome and congrats.

Colin Alan Sebastian: Looking at the advertising revenue opportunity, this seems like, you know, still an area that's a significant opportunity as you engage with more CPG and brand advertisers. And so looking at that business, looking at the take rate, if you could perhaps maybe update us on the roadmap there, any specific platform enhancements or products this year that we should pay attention to, and ultimately, Fidji, your vision for advertising on the platform. Absolutely. So we still have very high conviction in our long-term targets, which are that advertising will reach four to five percent of GTV over time. It will not be linear.

Colin Alan Sebastian: Looking at the advertising revenue opportunity does.

Colin Alan Sebastian: It seems like it's still an area that.

Colin Alan Sebastian: Significant opportunity as you engage with more CPG and brand advertisers.

Colin Alan Sebastian: And so looking at that business looking at the take rate if you could perhaps maybe update us on the roadmap there any specific platform enhancements or products. This year that we should pay attention to and ultimately APG your vision for advertising on the platform. Thank you.

Colin Alan Sebastian: Absolutely. So we still have very high conviction on our long term targets, which all that advertising would reach 4% to 5% of GCG overtime. It will not be linear as you look at the last couple of years advertising has grown very fast over the last couple years.

Fidji Simo: If you look at the last couple of years, advertising has grown very fast over the last couple of years. And so, you know, that's something that has, you know, changed in the last few quarters, mostly, as we've told you before, because ad growth lags GTV growth, and we haven't seen ads fully catch up yet. But our conviction around the long-term model is very strong.

Fidji Simo: So that's something that as a change.

Fidji Simo: Change in the last few quarters, mostly as we've told you before because AD growth lags GTD growths, and we havent seen us fully catch up yet but of conviction around the long term model is a very strong. The reason we have his conviction because we continue adding more and more fall enough ships to measure.

Fidji Simo: The reason we have this conviction is because we continue adding more and more functionality to measure the performance of our ads and optimize them. And the results always come back, showing that we are an incredible place for advertisers to place their dollars. You probably saw that in the letter about our partnership with Circana. We continue to launch new objectives and optimization capabilities, like, for example, new to brand objective and target ROAS this quarter.

Fidji Simo: The performance of our heart and optimize those ads and the results always come back showing that we are an incredible place for advertisers to play sell dollars you.

Fidji Simo: You have seen that probably in the latter we don't fall enough ship with Susquehanna, We continue to launch new objectives and optimization capabilities.

Fidji Simo: Like for example, new to brand objective and target rollout this quarter and so all of these capabilities are really contributing to giving brands confidence that we are a channel by which they are going to see a highway.

Fidji Simo: And so all of these capabilities are really contributing to giving brands confidence that we have a channel by which they're going to see high return, high self-lead, and high incrementality. In terms of what to pay attention to, in addition to these measurements, improvements, targeting, etc., which is really all bread and butter, we have extended the strength of our platform beyond the world of the Instacart app. You have seen us do partnerships with Google, and recently NBCU, the trade desk, where we are taking the data and the strength of our targeting and our audiences and applying it to advertising platforms outside of Instacart. We have taken a similar approach with Carat Ads, where we power ads on our retailers' websites, whether that's Props, Schnucks, and many more.

Fidji Simo: High return high self knee high Incrementals cities.

Fidji Simo: In terms of what to pay attention to in addition, Tuesdays measurement improvements targeting et cetera, which is really our bread and butter.

Fidji Simo: We have extended the strengths of our platform beyond the walls of the adult to up you have seen us do partnership with Google recently.

Fidji Simo: You can use a trade desk, while we are taking the data and the strength of targeting an audience and applying it to our advertising platforms outside of in the call. We have taken a similar approach, which character ads, where we power ads on our retailers' websites without that's proud snacks many malls.

Fidji Simo: And that's also a way to continue growing the ad business. And then, finally, expanding this business inside the store on Kaper with Kaper Ads, which is obviously small right now, given that we have hundreds of cards out there. But as we ramp up to thousands of cards, this is something that will get a lot bigger, especially as you look to 2025.

Fidji Simo: And that's also a way to continue growing the business and then finally, expanding he said the business inside the store on Cape I always keep her heart, which is have you seen small right now given that we have hundreds of calls out there, but you know as.

Fidji Simo: As we ramp up to thousands of calls this is something that we will get a lot bigger.

Douglas Anmuth: So overall, we feel very confident about the performance of our ad. Some initiatives take time, but we feel good about our trajectory. Okay. Thanks, Fiji.

Douglas Anmuth: Especially as you look to 2025, so overall, we feel very confident about the performance of some initiatives take time.

Douglas Anmuth: But we feel good about our trajectory.

Speaker Change: Okay. Thanks P J.

Emily Reuter: Thank you. One moment for questions. Our next question comes from Doug Anmuth with J.P. Morgan. Thanks for the questions. Emily, can you provide any more color on what you're seeing across cohorts?

Fiji: Thank you.

Speaker Change: A moment for our questions.

Emily Reuter: Our next question comes from Doug Anmuth with Jpmorgan you May proceed.

Emily Reuter: And if you see a timeframe for mature cohorts, those declines to flatten out, and then think that you can help us understand the benefits of the new partnerships with Kroger and Costco on EBT snap and swiping and on quantifying just as you flip from a headwind to tailwind over into 2Q. Thanks for the question, Doug. So on cohorts, you know, what I'd say is that everything that we've said about cohort dynamics remains true. So mature cohort declines continue to improve in the quarter, and new cohorts are bigger than pre-pandemic.

Douglas Anmuth: Thanks for taking the questions.

Doug: Well you can provide any more color on what youre seeing across cohorts and if you see.

Emily Reuter: Frame for mature cohorts those declines to flatten out and then.

Doug: That you can help us understand around the benefits of the new partnerships with Kroger and Costco on EBT snap in.

Doug: On quantifying just as you flip from a headwind to tailwind over into <unk>. Thanks.

Speaker Change: Okay. Thanks for the question, Doug So on cohorts, what I'd say is that everything that we've said about cohort dynamics remains true. So mature cohort declines continued to improve in the quarter and new cohorts are bigger than pre pandemic. What I would note, though is that the strong Q1 performance that we saw a benefit.

Emily Reuter: All of our cohorts and so for that reason I would expect that there was some acceleration and improvement in Q1 that we don't expect to repeat in Q2, given those onetime impacts.

Emily Reuter: So overall I think the underlying trends continue to move along the same trends with the onetime impact of Q1.

Emily Reuter: As it relates to the benefit of the new partnerships on EBT.

Emily Reuter: Overall, what I'd say is that the year over year headwind improved from Q4 to Q1, the impact was strongest in Q4 and in Q1 at the launches of Kroger and Costco helped mitigate that impact.

Emily Reuter: As we move into Q2, we do expect to lap the expiration of those benefits, but the overall impact is.

Michael Morton: The way that I think about it is that the EBT SNAP benefit in Q2 would effectively offset the impact that we had in Q1 from leap day, so about one percentage point of growth. Thank you. One moment, please.

Emily Reuter: It is modest at the way that the way that I think about it is that the EBIT snap benefit in Q2 would.

Michael Morton: Would effectively offset the impact that we had in Q1 from leap day, so about one percentage point of revenue.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Michael Morton: Our next question comes from Michael Morton with MoFittNate. Nathan, you may proceed. Good evening. Thank you for the question. Two, if I could, the related.

Michael Morton: Our next question comes from Michael Morton with Nate.

Michael Morton: <unk> you May proceed.

Michael Morton: Good evening. Thank you for the question.

Michael Morton: Two if I could either related could you speak to the defensibility and contract length of some of the largest exclusive relationships.

Fidji Simo: Could you speak to the defensibility and contract length of some of the largest and exclusive relationships? It's a question that we frequently get from the investor base, any clarity there? And we do appreciate that it's not essential to the success of your business, but it's a FAQ. And related to partnerships. I would love to know.

Fidji Simo: A question that we frequently get from your Investor base any clarity there and we do appreciate that.

Fidji Simo: It's not essential to the success of your business, but it's a.

Speaker Change: Thank you.

Fidji Simo: Related to partnerships.

Fidji Simo: How do you think longer term when it comes to working with the likes of Walmart and Amazon? Research shows that they're taking share in grocery and could be taking share from your core customer base on the grocery side. And a lot of times, they like to pull things in-house eventually. So is there any risk that you're feeding the beast and bridging them to their own sustainable solutions? Thank you so much.

Fidji Simo: I'd love to know.

Fidji Simo: How do you think longer term when it comes to working with the likes of Walmart and Amazon.

Fidji Simo: Bridging them to their own sustainable solutions. Thank you so much.

Fidji Simo: Thanks for the question. So on contract length and exclusivity, first off, I just want to remind everyone that exclusivity is not a strategy. The strategy is fundamentally to be the partner of choice by being very embedded in grocers' businesses because we drive growth for them. As for the contracts, they are, I would say, one to two years, and they all have different timings.

Speaker Change: Thanks for the question so on contract lengths and exclusivity first off I just wanted to remind everyone that exclusivity is not our strategy. The strategy is fundamentally to be the partner of choice by being very embedded in <unk> business, because we drive growth for them.

Fidji Simo: So it's not as if there is a cliff, you know, coming up at any point. And what we usually see is that when retailers go non-exclusive and go to other platforms, what happens is that they continue to grow with us and invest more in the relationship. And so, you know, we continue to invest in our technology with grocers. We have a relationship, even when they're not exclusive, where very often we power their own and operated business, we power their fulfillment, we do pick up with them, we do EBT-SNAP, we do virtual convenience, the list goes on. And it's obviously a much more strategic relationship than just sitting in a marketplace. So that's very much how we think about it.

Fidji Simo: As far as the contracts they are I would say one to two year olds and all.

Fidji Simo: All have different timing, so it's not as though is a cliff coming.

Fidji Simo: Coming up at any point.

Fidji Simo: And what we usually see is that when retailers go non exclusive and go towards a platform. What happens is that they continue to grow with us invest more in the relationship.

Fidji Simo: And the use case that happens on other platforms is quite different from alone. It ends up being very small baskets. The things that you add a total restaurant, although like a bag of chips and the kind of substance.

Fidji Simo: And so very different from what you can do on our platform, which is really everything from small baskets to larger baskets.

Fidji Simo: And so we continue to invest in our technology with grocers, we have our relationships even when they are not exclusive will very often we powers have owned and operated business. We thought was a fulfillment we do kick up with them we.

Fidji Simo: We do EBIT snaps with industrial convenience and the list goes on.

Fidji Simo: And it's obviously a much more strategic relationship than just sitting on the marketplace. So that that's very much how we think about this.

Fidji Simo: In terms of partnership and long-term working with competitors, you know, I would say what we obsess over is always having the best possible selection for customers, and that's what got us to have a selection that represents 85% of U.S. grocery sales on Instacart, and so that's why we want to work with every grocer. However, when it comes to competitive advantages, we think our competitive advantages are very strong, and in particular, when it comes to fulfillment advantages, the scale at which we operate gives us very significant advantages over any retailer wanting to do that themselves, and that's why you are seeing even the largest guys, the programs of the world, et cetera, really relying on us for fulfillment, because we can do that at prices that are highly competitive at a scale that So we want to make it always the smartest choice for them to partner with us, and that's exactly what has happened to date. Thank you. Thank you. One moment of request.

Fidji Simo: In terms of partnership and long term working with our with competitors.

Fidji Simo: I would say what we obsess over is always our being the best possible selection for customers and that's what got us to a.

Fidji Simo: Our selection that represent 85% of U S grocery shelves being on the call and so that's why we want to work with every growth. However.

Fidji Simo: When you talk about competitive advantages, we think our competitive advantages are very strong and in particular when it comes to fulfill.

Fidji Simo: Fulfillment advantages.

Fidji Simo: Scale at which reoccurring.

Fidji Simo: Competitive with quality that top notch and as a result, we can grow that business rather than doing the doing that themselves and not growing as fast as it would is the real I don't know if technology. So we want to make them to always the smallest shortfall them to partner with us and that's exactly what has happened to date.

Speaker Change: Thank you.

Fidji Simo: One moment for questions.

Andrew M. Boone: Our next question comes from Andrew Boone with J&P Securities. Thanks so much for taking my question. The NBCUniversal partnership is very interesting. Can you talk about the potential for off-platform advertising and what you need to do to unlock more budget as well as more partners? Thanks so much.

Fidji Simo: Our next question comes from Andrew Boone with JMP Securities You May proceed.

Speaker Change: Thanks, So much for taking my question. The NBC Universal partnership is very interesting can you talk about the capsule.

Andrew M. Boone: On advertising and what you need to go to a more budgeted is going with more partners. Thanks. So much.

Fidji Simo: Thanks for the question, Andrew. The way we think about it is that we have really unique customer data that can help advertisers identify audiences. For example, who would be new to their brand, who is an engaged customer that may or that used to be engaged, but may have churned. All of these audiences are incredibly critical for advertisers, especially in a world where cookies are going away, and other platforms are really hungry for high-quality third-party data.

Speaker Change: Thanks for the question Andrew So.

Fidji Simo: The way, we think about it is that we have really unique customer data that can help advertisers identify audiences. For example would be new to our brand who is an engaged customer that me as I used to be engaged with may have channel. All of these audiences are incredibly critical.

Fidji Simo: For advertisers, especially in a world where cookies are going away and other platforms are really hungry for high quality self body of data and so we are able to offer quality data to do some small enough ships where.

Fidji Simo: And so we are able to offer third-party data to do these partnerships where advertisers are able to take our audiences and leverage that on other platforms to make their advertising on other platforms more efficient. And so that's very exciting. In addition to that, some of these brands decided to point directly to Instacart because they know that people are going to convert better if they land on a place where the ads allow them to buy and get the product in their hands within an hour.

Fidji Simo: Advertisers are able to take audiences and leverage that and other platforms to make that advertising on those platforms most performance.

Fidji Simo: And so that's that's very exciting in addition to that some of these <unk>.

Fidji Simo: <unk> decides to points directly to intercall, because they know that.

Fidji Simo: So it's really a full funnel approach that we have with Google, the trade desk, and that's why we're really excited to continue deepening these partnerships. Now, in terms of materiality, I would say it is still small because it's a new thing and it requires a new infrastructure and a new muscle.

Fidji Simo: And that's why we're really.

Fidji Simo: Really excited.

Fidji Simo: Two to continue deepening these partnerships now in terms of materiality I would say it is still small because it's a it's a new thing and it requires a new infrastructure kind of new muscle very often the people that we talk to to go get these budgets are different people than the people that are allocating spend on <unk>.

Fidji Simo: Because they'll just allocating spend on other platforms that are more maybe awareness we run all of our objectives. So it takes a bit of time to sell this and build these new relationships.

Fidji Simo: So it takes a bit of time to sell this and build these new relationships, add new tools to make these services easier to access, and optimization capabilities. But we've done that in the past with our own platform. We know exactly the playbook. That's the playbook we're applying this year, and we hope to see the results of that in 2025.

Fidji Simo: The new tools to make jeez, salvages EDF to access optimization capabilities, but we've done that in the past with on platform. We know exactly the playbook, that's the playbook, while applying to the chef and.

Fidji Simo: We hope to see the results of that.

Fidji Simo: In 2025.

Ron Josey: Thank you. One moment for questions. Our next question goes to Ron Josey with Citi. You may proceed.

Fidji Simo: Okay.

Speaker Change: Thank you.

Ron Josey: Thank you.

Ron Josey: One moment for questions.

Ron Josey: Our next question comes from Ron Josey with Citi. You May proceed.

Fidji Simo: Thanks for taking the question. Maybe as a quick follow-up to one of your prior questions, Fidji, I wanted to ask about just the comments in the letter around operating data. I think you have, you talked about a decade of operating data, and I want to just understand the strategic moats that you have as a result of that, both for the consumers and your retail partners. I think that's something that's often discussed.

Speaker Change: Absolutely thanks for the question.

Fidji Simo: The reason I talked about operating data in the in.

Fidji Simo: It didn't have the 10 years of operating data as a model wouldn't be that accurate.

Fidji Simo: Hanmi as smart as the data you collect and so.

Fidji Simo: What we've done is really.

Fidji Simo: NASA launched full of data both on the consumer side and also on the inventory side on the consumer side, it's 11% to 12 years of large baskets data of everything that customers want to buy everything that Z substitute, which is critical because it allows us if an item is.

Fidji Simo: Not on the shelves to substitute it with something that they prefer.

Fidji Simo: Lots of data about the types of products that are complementary to other cars that we can sell face the best product recommendation and also stocks as the best AD.

Fidji Simo: AD recommendation, so all of that contributes to a richness of consumer data that means that when you are invested in and <unk> placed a couple of photos.

Fidji Simo: Really hard to go to another platform because you would have to rebuild youll entire baskets rebuild all of your habits rebuild orajel preferences.

Fidji Simo: And we have all of that for you and Thats why youre seeing.

Fidji Simo: The lateral me mentioned that 75% of our customers.

Fidji Simo: So neither them from they'll buy it again it needs to because again. This is data we have on all of their purchase history now on the answer kind of a the short upside and inventory side. It is also really critical to have data that allows us to predict what's on the shelf and so again.

Fidji Simo: And because we have 600000, <unk> roaming deals of grocery stores, and we partner with retailers to get.

Fidji Simo: Not only that catalog files, but.

Fidji Simo: Balance on hand data in some cases, we are able to create a system by which we can predict quarter after quarter of what's going to be on the shelves with more accuracy.

Fidji Simo: Given that we have developed all of these technologies to tell us what's exactly on the shelf right now and as I've mentioned in previous calls the biggest compliment that we have enough technology that some retailers and CPG the auction using our out of stock predictions to.

Fidji Simo: Have a plan O grams for his thoughts.

Fidji Simo: 75% of all those on the platform so that when the sharper authorizing the store they are able to find the item with Max efficiency and and be able to increase the foundry and then finally.

Fidji Simo: Mentioned, we see data in the in the lateral because once you're on dawn continuing this order and your foundry items, sometimes it happens that shoppers can make a mistake and we ship data, we're able to tell them in real time now because we can analyze data he actually Mr. Sias them, Hey, you might have a.

Fidji Simo: Switch this item into a different order and allows them to self correct on the spot and so the combination of all of these technologies is really what gives us a massive leadership and results in foundries and shell raised that again at an all time high since the pandemic. So we're really proud of this system and continue to improve upon them.

Fidji Simo: And then, finally, I mentioned receipt data in the letter because once you're done completing this order and you find the item, sometimes, you know, it happens that shoppers could make a mistake, and with receipt data, we're able to tell them in real time now, because we can analyze receipt data, hey, actually, you missed this item, hey, you might have switched this item into a different order, and allow them to self-correct And so, the combination of all of these technologies is really what gives us massive leadership and results in found rates and sell rates that, again, are at an all-time high since the pandemic, so we're really proud of this system and continue to improve upon it quarter after quarter. Thank you, Fidji.

Fidji Simo: Quarter after quarter.

Fidji Simo: That's great. Thank you Vijay.

Tom Champion: Thank you. One moment for questions. Our next question comes from Tom Champion with Piper Sandler. Good afternoon.

Speaker Change: Thank you one moment for questions.

Tom Champion: Our next question comes from Tom Champion with Piper Sandler You May proceed.

Tom Champion: Good afternoon.

Fidji Simo: I'd love to hear you talk a little bit about affordability and how you're productizing deals within the platform and the product. And I guess, maybe beyond that big picture, could you talk a little bit about your view of the consumer and the range of outcomes you're contemplating for this year? Thank you.

Tom Champion: I'd Love to hear you talk a little bit about affordability.

Fidji Simo: And how your product type deals.

Fidji Simo: Within within the platform and the product and I guess, maybe.

Fidji Simo: Maybe beyond that Big picture could you talk a little bit about your view of the consumer in the range of outcomes here.

Fidji Simo: Contemplating for this year. Thank you.

Fidji Simo: So on affordability, we obsess over it. And that's why you are seeing results like, you know, of savings, increasing 20% year over year to $4.75 on items per order. And that's a metric we track really carefully because we want to make sure that when customers come to the platform, we give them a variety of ways to get a deal. And so when you're talking about productizing deals, there are actually a variety of deals and a lot of different products that you have to build to do that. One is loyalty programs. A lot of retailers offer many deals with loyalty programs.

Speaker Change: Yes. Thanks, so on affordability, we obsess over it and Thats why you are seeing results like savings increasing.

Fidji Simo: Increasing 20% year over year to $4 75.

Fidji Simo: Hence on items to all that and that's a metric we track really carefully because we want to make sure that when customers come to the platform, we give them a variety of ways to get the deal.

Fidji Simo: And so when you are talking about prototyping deals, there's actually a variety of deals and its a lot of different products that you have to be able to do that one is loyalty programs. So a lot of retailers also have a lot of gilts as all LG programs and quarter after quarter, we integrate with the loyalty programs of more and more retailers, which allows us to self based model.

Fidji Simo: We have retail are funded deals where they are going to offer for example, $10 off a particular holder to attract customers to them. Because that's also a platform that we've built recently and allows retailers to actually put that on funds to attract delivery customers.

Fidji Simo: We are also digitizing the weekly failure, if you look offline.

Fidji Simo: Lot of people end up looking at the weekly Shire in a paper form.

Fidji Simo: Before they go to the store to kind of figure out what are the deals that they want out not forget when we get to the store. We're digitizing that so that people benefit from that experience and then finally, we also have CTG that are coming in and funding specific deals on that specific product and we have a format called startup.

Fidji Simo: We're digitizing that so that people benefit from that experience. And then, finally, we also have CPGs that are coming in and funding specific deals on their specific products. And we have a format called Stock Up and Save, which is actually an ad format where CPGs can come and basically give a deal for people to buy more of that particular product and get a discount for higher quantities. We also look at savings in terms of delivery options and providing more affordable delivery options like pickup and no rush so that the people who value price over convenience can have, you know, the great benefits of our service as well.

Fidji Simo: Save which is actually in that format, where CPG can come and like basically give a deal for people to buy more of that particular product.

Fidji Simo: And get a discount for higher quantities.

Fidji Simo: We also look at savings in terms of delivery options and providing more affordable delivery options like pickup and no rush.

Fidji Simo: So that the people who value.

Fidji Simo: And so all of this adds up to really making it feel like the service quarter after quarter becomes more affordable. And that is reflected in the fact that, if you look at our demographics, a couple of years ago, we were very highly concentrated in the affluent demographic, whereas right now, we actually map to the U.S. population pretty closely.

Fidji Simo: <unk> of our convenience can have a great benefits of OXXO as well.

Fidji Simo: So all of these hot that adds up to really making sure like the sale of it quarter after quarter becomes more affordable and that is reflected in the fact that if you look at all demographics. A couple of years ago. It was we were very highly concentrated into affluent demographic, whereas right now we actually map to U S population pretty closely.

Fidji Simo: And that's something we're very proud about because that means that we align with the entirety of the 10. And then, finally, you asked me for my view on the consumer. I would say we've seen quite a resilient consumer. And on the lower end, we certainly see that people with lower incomes are trying to stretch their budgets, trying to make their dollars go faster.

Fidji Simo: And that's what I'm, saying, while we're very proud about because that means that we align with the entirety of the up the Tam.

Fidji Simo: And then finally.

Fidji Simo: You asked me for my view on the consumer I would say, we've seen quite a quite a resilient consumer.

Fidji Simo: I would say on the lower hand, we certainly see that people with lower incomes are trying to stretch their budget trying to make that go faster and therefore, they do a lot more planning.

Fidji Simo: And therefore, they do a lot more planning when they think about grocery shopping. And as a result, we want to make it as easy as possible for them to get the best deals, to be able to shop at multiple retailers if they want, you know, to combine different deals and really see us as a place that helps them meet their budget and their family needs in the best possible way, really meeting consumers wherever they want to shop. So, that's been really the focus. Thank you. Thank you. One moment for questions. Our next question comes from Steven Fox with Fox Advisors. You may proceed. Hi, good afternoon.

Steven Fox: When when do you think about grocery shopping and as a result, we want to make it as easy as possible for them to get the best deals to be able to shop multiple retailers, if they want to combine different deals.

Steven Fox: And really see us as a place that can help them meet their budgets.

Fidji Simo: Family needs in the best possible way and really meeting consumers. However, they want to shop. So that's been really the focus.

Steven Fox: Thank you.

Steven Fox: Thank you one moment for questions.

Fidji Simo: Our next question comes from Steven Fox with Fox Advisors, You May proceed.

Steven Fox: Just one question for me on the Uber relationship. I guess, from a financial standpoint, how would you expect it to ramp up, and what should we think about in starting to see some financial benefits from it? Would it be mainly focused on seeing better subscriber growth or user growth that translates into your business? My understanding from this morning's call is that Uber would basically be using its own couriers and be able to advertise on their space within your channel.

Steven Fox: Hi, Good afternoon, just one question from me on the Uber relationship I guess from a financial standpoint, how would you expect it to ramp in.

Steven Fox: Should we think about and starting to see some financial benefits from it would it be mainly focused on seeing better subscriber growth or user growth that translates into.

Steven Fox: Your business my understanding from this morning's call is that Uber would basically be.

Steven Fox: So can you just sort of give us a sense of directionally of how we should think about this or earnings over say the next two to six quarters. Yeah, absolutely. Well, we're not gonna obviously give specific guidance here because we have not even launched the service.

Steven Fox: Our earnings over say the next two to six quarters. Thanks.

Speaker Change: Yes, absolutely.

Fidji Simo: We're not going to obviously guide specifically here because we have not even launched the service, but I can tell you at a high level we.

Fidji Simo: We are getting in Australia change from Uber on all of those that we send to them.

Fidji Simo: The deal is positive unit economics day, one for us, which we're excited about but we're also going to be investing on top of that to ensure success of the service and adoption, but we're not really looking at.

Fidji Simo: The restaurant business, specifically, what we're really looking at is how <unk> can help our business overall by making the call to an even more engaging up more frequent use case by getting us more into the Gulf plus subscribers and so we're going to really be looking at all of these metrics and in fact.

Fidji Simo: Driving.

Fidji Simo: Well in terms of ramp up we will have to launch two to see that.

Steven Fox: I appreciate that clarification. Thank you. Thank you. One moment for questions. Our next question comes from Rob Sanderson with Loop Capital Markets. He may proceed.

Speaker Change: Great I appreciate that clarification. Thank you.

Robert Jason Sanderson: Thank you.

Robert Jason Sanderson: One moment for questions.

Steven Fox: Our next question comes from Rob Sanderson with loop capital markets. You May proceed.

Robert Jason Sanderson: Good afternoon, thank you for taking my question. Many of my near-term questions have been asked and answered, but I wanted to ask about smart carts. What are grocers looking for in terms of improved points to expand deployments? Are they looking at an ROI calculation? Are these just more experimental proof of concept stages at this point? And what would be a reasonable expectation for when we could think about deployment to maybe 5% of stores? Is that something that could happen in a three-year time frame? Is that realistic?

Robert Jason Sanderson: Good afternoon, and thank you for taking my question. Many of my near term questions have been asked and answered, but I wanted to ask about smartcards.

Robert Jason Sanderson: Grocery is looking for in terms of proof points to expand deployments like are they looking at ROI calculation or are these just more experimental proof of concept stages at this point.

Robert Jason Sanderson: And what would be a reasonable expectation for when we can think about.

Robert Jason Sanderson: Deployment to maybe 5% of stores is that something that could happen like in a three year timeframe is that realistic and does the hardware cost have to come down meaningfully to think about things like 5% penetration. Thank you.

Fidji Simo: Thanks, Rob for the question. So in terms of one grocers are looking out it's exactly the same as the things we've been obsessing over all which is do consumers love the product and is that changing their behavior and he answers. So far based on what we've seen is a resounding yes.

Fidji Simo: And the answer so far, based on what we've seen, is a resounding yes. We have seen consumers absolutely love using the carts. We hear a lot of anecdotes saying that consumers are seeking the stores that have carts deployed. You know, we've certainly seen that from Schnucks.

Fidji Simo: <unk> seen consumers.

Fidji Simo: Absolutely love using the costs that we have a lot of anecdotes, saying that.

Fidji Simo: Consumers are like seeking the stores that have deployed.

Fidji Simo:

Fidji Simo: So have you seen that some snacks. Our snacks also gave us the data points that I put in the letter saying that.

Fidji Simo: Schnucks also gave us a data point that I put in the letter saying that people who use the carts end up having larger baskets than other carts. And that is a very big driver, as you can imagine, of grocers wanting to adopt that because that allows them to, you know, attract a higher basket size of, you know, consumers that can skip checkout and have an experience that is a lot more engaging and can create competitive differentiation for them.

Fidji Simo: People, who use the call to end up having larger baskets than other hubs and that is a very big driver as you can imagine of grocers wanting to adopt <unk> because that allows them to.

Fidji Simo: You know a high a higher basket size of.

Fidji Simo: Consumers Atkins keep checkout and have an experience that is a lot more engaging and can create competitive differentiation for them.

Fidji Simo: So we've been really obsessed over you know the consumer reaction very encouraged by it and that's why you're seeing us.

Fidji Simo: So we've been really obsessed with, you know, the consumer reaction, very encouraged by it. And that's why you're seeing us really pour more fuel on Kaper and seeing retailers very excited to deploy it. In terms of ramping up, you know, I would say we are in many, many pilots with the largest grocers, whether it's Kroger, Wakefirm, Sobeys, Schnucks, the list goes on. And so we expect to have, you know, thousands of carts deployed by the end of the year.

Fidji Simo: Really pull more fuel on the on <unk> and seeing retailers are very excited to deploy that.

Fidji Simo: In terms of ramp up you know I would say we are you seeing the latter we all are in many.

Fidji Simo: Many pilots with the largest grocers with them its program of waste. So these snacks the list goes on.

Fidji Simo: And so we expect to have thousands of costs.

Fidji Simo: So by the end of suggest and then I think it really depends on kind of.

Fidji Simo: How are those deployments school, but it could scale to many more we are not guide.

Fidji Simo: Biding to a specific timeline because all of a lot of unknowns, but we think that we have everything that we need to be able to to scale. These calls in terms of cost.

Fidji Simo: We will work to get the hardware costs down in the future no doubt, but that's not really news of Maine.

Fidji Simo: I would say that a big part of the business model for Kaper is going to come from advertising. And that's another reason why retailers are really excited about Kaper Carts, because it becomes a completely new line of business for them to add advertising inside the store on the screen of the Kaper Carts and a source of revenue for us that can justify putting more of the carts out there. Thank you, Fiji.

Fidji Simo: Our main block after deployment I would say that's a big part of.

Fidji Simo: So it's a business model for <unk> is going to come from advertising and that's another reason why retailers are really excited about <unk> because it becomes a completely new incremental line of business for them of adding advertising inside the store on a screen escaped us calls and a source of revenue for us that can just.

Fidji Simo: If I'm, putting more of the cost out there.

Fiji: Thank you Vijay.

Speaker Change: Thank you.

Ross Albert Compton: Thank you. One moment for questions. Our next question comes from Ross Compton with Macquarie. You may proceed. Hi Fidji.

Fidji Simo: One moment for questions.

Ross Albert Compton: Our next question comes from Ross <unk> with Macquarie You May proceed.

Fidji Simo: In your S1, you estimated the enterprise segment drove an estimated 20% of company GTV in 2022. And I think what's really interesting is your model, given the economics are similar on marketplace and enterprise, you're agnostic to where the demand comes from. I was wondering if you would share how enterprise is evolving, and whether as more grocers kind of enter the online space and are required to adopt your technological tools to kind of compete against Whole Foods and others. Do you see this kind of rising tide lifting all boats?

Ross Albert Compton: Hi, Phebe.

Fidji Simo: S. One you estimate that the enterprise.

Fidji Simo: <unk> drove an estimated 20% of company GTP and in <unk>.

Fidji Simo: In 'twenty, two and I think what's really interesting is.

Fidji Simo: Your model given the economics are similar on marketplace enterprise, you're agnostic to where the demand comes from I was wondering if you could share how enterprises evolving the way that was more coaches kind of into the online space and are required to adopt or technological tools kind of compete against whole foods and others do you see this kind of rising tide lift all boats and even though in order.

Fidji Simo: It might not occur on marketplace, you kind of wind economics on me on the enterprise tools.

Speaker Change: Thanks, Ross Great question, you're right, we remain agnostic between marketplace and white label and was that actually makes us a really strategic partner for grocers because as you can imagine.

Fidji Simo: The case of grocers, they would prefer on old El to go to through the owned and operated platform and so the fact that we are a partner at the table that wants to grow as a whole I know as much as we want to grow marketplace is it is a very strong competitive advantage for us we have seen growth of <unk>.

Fidji Simo: What we are seeing, and I mentioned the latter, is a deepening of our enterprise relationship with grocers, where in the past, it might have been just powering their front end or just powering their fulfillment. And now we are actually powering more and more things for them, whether it's FoodStorm, where we power their catering business, or whether it's Capercots, where we now enter their stores. And what they really value is that all of these products are completely integrated.

Fidji Simo: White label to be roughly in line with market place. That's remained consistent for a few years, what we are seeing and I mentioned in the letter is a deepening of our rental price relationship with closer where in the past it might have been just powering desktop Franco just powering.

Fidji Simo: Fulfillment and now we are actually powering more and more things for them, whether it's food storm, while we power left catering business with us keep our costs well and we now enter the store and what they really value is that all of these products are completely integrated and so if you look at the deal we just announced with <unk>.

Fidji Simo: And so if you look at the deal we just announced with SaveMark, where we're really going to power everything for them from their storefront solution to Capercots, to FoodStorm, to carrot ads, it's a great example of our enterprise strategy, really winning the day. Because you can now, you know, surface ads, again, not just on our marketplace, but surface ads on storefront stores, surface ads on Capercots If SaveMark is using our Capercots, you can get people to reorder their in-store basket online. So the fact that we power both Capercots and their storefront is incredibly helpful. You can order catering from the Capercots.

Fidji Simo: Mark will be going to power everything for them from their storefront solution to keep our call to foot storm.

Fidji Simo: Two carat ads is a great example of a hand off price strategy are really winning the day because you now can sell face add again not just on our marketplace itself has had on stock control stuff. They start on keep the cost.

Fidji Simo: Eastern market using a cable car you can get people to reorder, they're installed basket online. So the fact that with our own both caped off costs and their storefront is incredibly hopeful you can all that catering from the Cape of call. So again. The fact that we have put some catering are integrated we escaped oncology is another integration that.

Fidji Simo: So again, the fact that we have FoodStorm catering integrated with Capercots is another integration that they love. And so when they come to us, it's not for point solutions. It's now for a completely integrated product suite that they get to benefit from end to end instead of having to integrate with 10 different vendors who maybe, you know, may have disjointed solutions. Great. Thank you very much.

Fidji Simo: They love and so when they come to US. It is not for point solutions is now for a completely integrated product suite.

Fidji Simo: I did get some benefit from end to end instead of having to integrate with 10 different vendors.

Fidji Simo: Well maybe.

Fidji Simo: John keep solutions.

Speaker Change: Great. Thank you very much.

Speaker Change: Thank you.

Operator: Thank you. One moment for questions. Our next question comes from Justin Post with Bank of America. Hi, this is Steven McDermott for Justin Post.

Speaker Change: One moment for questions.

Steven Fox: Our next question comes from Justin Post with Bank of America. You May proceed.

Steven Fox: In your shareholder letter, you talked about driving supply through increasing the delivery areas of customers. Unknown Speaker I was just wondering if you could flesh out some of those efficiency improvements that, you know, allowed and kind of how the evolution of supply growth looks like going forward kind of, given the higher penetration among customers or among grocers. Thank you. Thank you. We've always had a very strong supply.

Steven Fox: Hi, This is Steven Mcdermott on for Justin post.

Steven Fox: In your shareholder letter you touched about driving supply through increasing the delivery areas with customers.

Speaker Change: I was just wondering if you could flesh out some of those.

Speaker Change: As you can see improvements.

Steven Fox: Wow.

Speaker Change: How the evolution of supply growth.

Speaker Change: Looks like going forward kind of.

Speaker Change: Given the higher penetration among customer or among grocers. Thank you.

Speaker Change: Yeah. Thank you.

Fidji Simo: We've always had a very strong supply and we continue to have witnessed a bookshop built in many cities.

Fidji Simo: And very high satisfaction of shoppers with 80% of shoppers.

Fidji Simo: Saying that they wouldn't be commended just walked through someone else and 80% of them seeing that in Chicago felt well paid opportunities. So the fact that we have you know such attractiveness workshop held itself and the helping US then in addition to that what we are doing is better matching the shutoff supply we do have with the demand.

Fidji Simo: And a good example of that is the expansion of the delivery radius that we did in Q1, where we allowed 80% of customers to have access to at least one new retailer by, you know, expanding the delivery radius. What you're also seeing is that we are continuing to drive shopper efficiencies via batching and time-to-deliver orders. And that's what has helped transaction revenue and allowed us to reinvest in the business. And we are doing that while also increasing shopper earnings.

Fidji Simo: That comes on to the platform and a good example of that is so the expansion of the delivery radius that reaches in Q1, where we allowed 80% of customers to have access to at least one new retailer by.

Fidji Simo: Extending his delivery wages, because we have self builds at all.

Speaker Change: Okay and excited to drive long distances.

Fidji Simo: What you're seeing also is that we are continuing to drive shop of efficiencies that Shang and time to deliver all those.

Fidji Simo: And that's what is the whole transaction revenue and allowed us to reinvest in the business.

Fidji Simo: And we are doing that while also increasing shop earnings and so that's really what we we continue to obsess over it becoming a lot more of extension, which allows us to reinvestment in business, but also doing shutdowns more earning opportunities and the fact that we've been able to drive both of these outcomes.

Fidji Simo: And so that's really what we continue to obsess over. It's becoming a lot more efficient, which allows us to reinvest in the business, but also give shoppers more earning opportunities. And the fact that we've been able to drive both of these outcomes is really exciting.

Fidji Simo: Is really exciting.

Speaker Change: Got it thank you.

Speaker Change: Thank you.

Fidji Simo: Thank you. Thank you. One moment for a question. Our next question comes from Mark Zgutowicz with The Benchmark Company. Hi guys, this is Alex Knapp from The Benchmark Company.

Speaker Change: One moment for questions.

Mark Zgutowicz: Our next question comes from Mark <unk> with Debenture Our company you May proceed.

Alex Knapp: Hi, guys. This is Alex on for Mark Thanks for taking the question.

Alex Knapp: Thanks for taking the question. Regarding opportunities to re-accelerate advertising growth from a high level, how would you characterize the relative reliance on net new active brand addition versus Improving Sink Client Spend? I'm just curious how this dynamic has trended to your date. Thank you; it was a great question.

Mark Zgutowicz: Regarding opportunities to Reaccelerate advertising growth from a high level, how would you characterize the relative reliance on net new active brand additions versus improving same client spend I'm. Just curious how this dynamic has trended year to date. Thank you.

Speaker Change: That's a great question.

Fidji Simo: Because the thing I can tell you is we have thousands of brands that are growing well into the double digits.

Fidji Simo: But we also have a few large brands that have pulled back spend for reasons that are very specific to their own business and his shoe brands can have two meaningful of an impact on overall growth rates to give you. An example, we see shift in large alcohol brands that have pullback spans because of everything that's happening in the household.

Fidji Simo: Category and because we are still concentrated in the large brands we are seeing just impact.

Fidji Simo: And of outsized on our platform and so it's a really big priority for me as you can see new diversifying business.

Fidji Simo: We can see less impact when some large brands have faced challenges in their own business.

Fidji Simo: I do think that a lot of it is going to come from.

Fidji Simo: Adding new brands to the platform, but I also saying that we have many brands.

Fidji Simo: Both large and small that are still under indexed in terms of our AD spend on the platform compared to the performance we drive and that's why it's been so focused on measurement and proving to performance because we need to be able to go to these brands with absolute clear data that easy invest more we will drive.

Fidji Simo: <unk> sales and now that we have all of these proof points. This is going to be a very big focus of the job of continuing to convince existing brands that are not advertising enough as well as new brands to come onto the platform So very big priority.

Speaker Change: Very helpful. Thank you.

Operator: And as a reminder, to ask a question, you will need to press star 11 on your telephone. One moment, please.

Speaker Change: Thank you and as a reminder to ask a question you will need to press star one on your telephone.

Operator: One moment for questions.

Stephanos Crist: Our next question comes from Bernie McTernan with Needham. Hi, this is Stephanos Crist calling in from Bernie. Thanks for taking our questions. Emily, congratulations on the new role. Would love to just hear some of your goals and plans, maybe over the short and long term, anything different you'd like to do. Thanks. Thanks, Bernie. And thanks for the congratulations. So I don't really think about it as doing things differently.

Operator: Our next question comes from Bernie Mcternan with Needham you May proceed.

Stephanos Crist: Hi, This is stefanos crist, calling in from Bernie Thanks for taking my questions.

Stephanos Crist: Emily congratulations on the new role.

Bernard Jerome McTernan: Would love to just hear some of your goals and plans.

Bernard Jerome McTernan: In the short and long term anything different you'd like to do.

Speaker Change: Thanks, Bernie and thanks.

Speaker Change: Thanks for the congratulations so I don't really think about it is doing things differently I think like Nick and focus on creating the most valuable company and generating long term Africa for sure. So that's that's really.

Emily Reuter: That translated into me focused on finding attractive opportunities for investment in growth.

Emily Reuter: Also creating a strong portfolio of offerings that serve a broad swath of consumers and meeting them, where they are in terms of their consumer journey.

Emily Reuter: I think lastly, I'll comment on, you know, we've executed a pretty large share repurchase program, which I've helped execute over the last few months. And we've driven $750 million of share repurchase by the end of Q1. I think the other thing I'll focus on is just how I'll be able to do that. I think, you know, if you look at my background, I'm able to leverage 10 plus years of operating experience in a market where obsessing over deepening our leadership position was critical. I've seen very highly competitive markets, and I've seen what it looks like to deepen those competitive positions. I've also seen what it looks like to lose ground.

Emily Reuter: But also focus on driving operating leverage and delivering improving profitability over time.

Emily Reuter: I think lastly, I'll comment on we've executed a pretty large share repurchase program, which has helped to execute over the last few months and we've driven $750 million of share repurchase.

Emily Reuter: By the end of Q1.

Emily Reuter: I think the other thing I'll focus on is just how I'll ever see that I think if you look at my background.

Emily Reuter: We've also leveraged 10 plus years of operating experience in a market where obsessing over a deepening our leadership position was critical I've seen very highly competitive markets and see what it looks like to deepen those competitive positions and also see what it looks like to lose ground. So I'm very focused on that particularly as <unk> has an incredible lead and I want to make sure we remain positioned to deep.

Emily Reuter: So I'm very focused on that, particularly as Instacart has an incredible lead, and I want to make sure we remain positioned to deepen that lead. So I'm partnering closely with Fiji and the team to ensure that happens. And doing all that, obviously, investing in those right opportunities while continuing to drive profitability. Thank you. This concludes today's conference call. Thank you for participating.

Emily Reuter: And that lead that's been partnering closely with BG and the team to ensure that happens.

Emily Reuter: Doing all of that obviously investing in those right opportunities, while continuing to drive profitability.

Emily Reuter: Okay.

Emily Reuter: Thank you.

Emily Reuter: This concludes today's conference call. Thank you for participating you may now disconnect.

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