Instacart (NASDAQ: CART), the leading grocery technology company in North America, saw its shares soar 11.91% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results and the announcement of a strategic acquisition.
The company reported a robust performance for Q1, with adjusted EBITDA of $244 million, significantly surpassing analysts' expectations of $229.4 million. While revenue came in slightly below estimates at $897 million compared to the anticipated $898 million, investors seemed more focused on the company's strong profitability metrics. Instacart's gross transaction value (GTV) for the quarter reached $9.12 billion, just edging out the estimated $9.11 billion.
Adding to the positive sentiment, Instacart provided an optimistic outlook for the second quarter. The company forecasts adjusted EBITDA between $240 million and $250 million, exceeding the consensus estimate of $237.2 million. This projection suggests continued strong performance and profitability. Furthermore, Instacart announced the acquisition of Wynshop, a provider of e-commerce solutions for leading grocers and retailers. This strategic move is expected to accelerate the expansion of Instacart's enterprise technology solutions and strengthen its relationships with retail partners, potentially driving future growth.
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