Maplebear Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Eric Sheridan - Goldman Sachs - Analyst : Thanks so much for taking the questions. Maybe two partner if I could. Fidji, when you talk about continuing to scale the technology side of the business, can you go a little bit deeper in terms of how the technology investments continue to feed into building scale and depth of relationship on the supplier side of the marketplace with respect to retailers? And then the second part of it would be against that theme. How should we think about some of your key strategic priorities for investments on the technology side with an eye towards 2025? Thanks so much.

Question: Eric Sheridan - Goldman Sachs - Analyst : Thank you so much.

Question: Ron Josey - Citi - Analyst : Thanks for -- Great. Thanks for taking the question. PGM I wanted to better understand the progress and basically affordability has led to order growth. And specifically, it was great to see order growth re accelerate this quarter to 10%-plus year over year. But then also, I think we saw for order increase 18% year over year. So help us better understand how affordability has been driving order growth, but then also any other major drivers underlying each one of these, so we can better understand call it the continued progress for both order growth and affordability. Thank you.

Question: Ron Josey - Citi - Analyst : Thank you, Fuji.

Question: Sebastian Colen - Baird - Analyst : Great. Well, thanks guys, a couple of questions for me. Good quarter, by the way. Maybe following up on Eric's question on enterprise. I'm not sure if you can update us on the portion of the business that's coming from enterprise at this point. But maybe as you add these services including omni channel. How are you thinking about the split over time, the balance between the consumer marketplace and the enterprise offering. And then secondly, on the advertising business and great to hear that you're seeing more traction with emerging brands, I guess Fidji, I'm also curious if you think there's a path to getting to better standards within retail media and if that happens, how much of a lever could that be to drive more spending on the platform? Thank you.

Question: Sebastian Colen - Baird - Analyst : Great. Thanks Fidji.

Question: Ross Sandler - Barclays - Analyst : Thank you. Fidji, going back to the deeper integration with merchants. So the stat about those that are adding features growing twice as fast as those that are not adding features begs the question of what's going on with the latter group. Is it push back around? What's, the reason why they wouldn't be adding more features is that they're getting that from another provider or is it just like the slow pace of movement at these merchants, anything more you could help on that would be great. And then for Emily as non-exclusive grows as a percent of GTV, I believe that should have a upward pull on transaction take rate. Is that accurate? And if so are we going to, pocket some of that or we going to reinvest most of that back into the business? Any thoughts there? Thanks a lot.

Question: Justin Post - Bank of America - Analyst : Thank you. A model showing really strong leverage this year. Maybe you could just update us on where you are with headcount and maybe some of the key initiatives on the investment side. You're excited about for next year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 10:00PM, CART.OQ - Q3 2024 Maplebear Inc Earnings Call

Question: Justin Post - Bank of America - Analyst : Got it. In any kind of investment areas for next year with Caper or technology stack or marketing to think about?

Question: Justin Post - Bank of America - Analyst : Great. Thank you.

Question: Jason Helfstein - Oppenheimer & Co - Analyst : Thank you for taking the question. I'll, just ask one. So, I mean, is there anything you're seeing on the consumer outlook that is driving the slower fourth quarter GTV guidance or is it a function of obviously a one point tougher comp and general conservatism. Just any more detail around the fourth quarter GTV. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 10:00PM, CART.OQ - Q3 2024 Maplebear Inc Earnings Call

Question: Jason Helfstein - Oppenheimer & Co - Analyst : Thank you.

Question: Brian Nowak - Morgan Stanley - Analyst : Great. Thanks for taking my questions. I have two. Fidji, the first one is on overall shopper growth. I mean, you've talked a lot about sort of going after the long runway and grocery etcetera. Yeah, I think the 600,000 shopper number seems roughly flat quarter over quarter. Just can you just talk to us about what you're seeing on shopper growth and sort of what are the keys to driving durably faster shopper growth into next year? Then the second one on the advertising business, I know there's sort of a lot of moving pieces going on with the large brands and the emerging brands, et cetera. But as you sort of look into '25 what are the one or two key advertising innovations that you think could start advertising growing faster than GTV. Again. Thanks.

Question: Brian Nowak - Morgan Stanley - Analyst : Great. Thank you much.

Question: Doug Anmuth - JPMorgan - Analyst : Hey, thanks for taking questions. On for Emily, one for Fidji. Emily was just hoping you could walk through some of the 4Q dynamics a little bit more particularly on the bottom line, just trying to understand kind of what keeps down margins almost flattish sequentially. And then Fidji, you mentioned a good early traction and food delivery. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 10:00PM, CART.OQ - Q3 2024 Maplebear Inc Earnings Call Hoping you could talk about the use case there that you're seeing as opposed to customers going directly to some of the leading platforms. And if there's anything you can add on contribution to GTV or revenue. Thanks.

Question: Doug Anmuth - JPMorgan - Analyst : Thank you both.

Question: Nikhil Devnani - Bernstein - Analyst : Hi, thanks for taking my question. I wanted to ask a bigger picture, one on GTV growth. We've seen low double digit GTV growth this year. How do you think about the durability of these trends going into '25? Your product keeps getting better. You're scaling the Uber partnership. So with those tailwinds, is there any reason to think this momentum should not continue. And then related to that, it looks like you leaned in a bit on marketing this quarter. Was that a reflection of specific opportunities you saw or how do you think about continuing to lean in to drive the top line here? That would be helpful. Thank you.

Question: Nikhil Devnani - Bernstein - Analyst : Thank you both.

Question: Shweta Khajuria - Wolfe Research, LLC - Analyst : Thanks a lot for taking my questions. Let me try two please. My first one is Fidji as you think about the adoption of these services and integration with retailers. So it could be EBT SNAP or pick up or alcohol or loyalty or enterprise solutions. Your top services among your Top 20 retailers. What is the adoption rate like today? And then the second one I have is on price parity. Where do you think price parity can go? And where are you today in terms of price parity versus competition among the online grocery delivery platforms? Thanks a lot.

Question: Shweta Khajuria - Wolfe Research, LLC - Analyst : Thank you, Fidji.

Question: Andrew Boone - JMP Securities LLC - Analyst : Thanks so much for taking my questions. I wanted to go back to Instacart within the context of Instacart powering every single grocery order. Can you talk about the key bottlenecks that are out there right now for Caper carts and the broader distribution of carts into stores. What are you guys seeing there? And how do you knock that down and then a bigger picture question on just a newer initiative. Talk about Instacart business. What's the opportunity there, and how do you guys really expand into S and Bs or the broader business environment? Thanks so much.

Question: Andrew Boone - JMP Securities LLC - Analyst : Thank you.

Question: Ross Compton - Macquarie Group - Analyst : Hi, thanks for the question. I guess I'm kind of curious about the competitive dynamics of carrot ads as it tries to become the retail media network for grocers. I think it was promote IQ of Microsoft that recently shutted, and I was curious if you had seen any wins from this and really how your deep integrations kind of across the grocery retailers, help you win against Criteo and publishers. Any color on the supply side of the market, you're seeing a rate to the bottom for take rates, as Kroger kind of insources. What are some of the factors at play here that, that grocers are choosing Instacart to be their, monetization partners? Thank you.

Question: Ross Compton - Macquarie Group - Analyst : Great. Thank you. And I guess to get that virtual supply wheel going here, do you think you have to win more on the supply side against larger incumbents like in bakeoffs and do those go up for tender every two or three years? Like what does the supply side of the market look like you spoke a lot about the long tail, but maybe at the really competitive end, is there opportunity there to kind of win out?

Question: Ross Compton - Macquarie Group - Analyst : Okay, great. Thanks so much. Appreciate the answer.