Maplebear Inc.

Good day and thank you for standing by. Welcome to Instacart's third quarter 2023 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 the session you will need to press star 1 1 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. Please go ahead.

Thank you, Gigi, and welcome everyone to Instacart's third quarter 2023 earnings call. On the call with me today are Fiji Simo, our Chief Executive Officer, and Nick Giovanni, our Chief Financial Officer. Shortly, we will open up the call for live questions. 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 Q4 and full-year 2023 financial results and future profitability, financial and operating targets, business and industry trends, market opportunities, and potential share repurchases. These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated by these statements. You can find more information about these risks and uncertainties in our financial perspectives for our initial public offering filed with the SEC on September 20, 2023, and in our Form 10-Q for the quarter ended September 30, 2023, that we will file with the SEC. We assume no obligation to update these statements after today's call, except as required by the law. In addition, we will also discuss certain non-GAAP financial measures. These non-GAAP financial measures have limitations and should not be considered in isolation from or as a substitute for our GAAP results. As a reconciliation between these GAAP and non-GAAP financial measures is located in our shareholder letter, which can be found on our Investor Relations website. This conference call is being webcasted and will be available for audio replay on our Investor Relations website in a few hours. Now, I'll turn the call over to Fiji for her opening remarks.

Thank you, Rebecca, and hi, everyone, and welcome to our table for our very first public earnings call. I hope you all had a chance to read our shareholder letter, which includes lots of information about our third quarter results. For more than 10 years, we have been investing in purpose-built technologies that can solve a wide array of complex challenges in grocery. We are the clear leader among digital first platforms in online grocery, with a winning combination of selection, quality, value, and convenience. Our strengths are evident across our business. The breadth and depth of our retailer integrations, the quality of the experience and accuracy of our orders, the size of our baskets, the increased order frequency and spend from our customers over time, not to mention our healthy unit economics. we have a massive head start and we're getting better every single day with every order. A significant advantage is our unmatched selection and deep integration with retail partners. We partner with more than 1,400 retail banners across more than 80,000 locations that collectively represent more than 85% of the U.S. grocery market. For us, it's about more than just putting our partners' catalog online. It's about becoming their strategic partner across their entire digital transformation. For example, we build and power many retailers' e-commerce storefronts and pickup businesses. We support operations at their brick-and-mortar stores and so much more. Another advantage is our highly engaged customer base. Instacart has become an important part of our customers' lives to the point where people count on us for their weekly grocery shop and many other use cases. When looking at annual cohort data from 2017 to 2022, on average, our monthly active orderers start by using Instacart 2.1 times a month and spend $226 a month in year one. And by year six, they order 3.9 times a month and spend $480 a month. On average, this means our customers spend more than $100 per order which is a key element to unlocking profitable unit economics, along with our next advantage, which is our massive scale in grocery. Over the last 12 months, we completed more than 265 million orders. This gives us the experience and data needed to unlock efficiencies that are unique to grocery and that you can only unlock once you reach that scale. From our best-in-class search engine and replacement algorithms to our batching technologies, to our wayfinding inside the store, and much more. These, in turn, allow us to improve customer and shopper satisfaction while minimizing our fulfillment costs. Finally, advertising. Our advertising and other revenue operates at a nearly $900 million run rate today. As we continue to scale our ads business, we're also working to drive better results for all our stakeholders, creating new and more effective ways for brands to connect with consumers and generating more sales for all retailers out of their existing locations. And because advertising helps us fulfill orders more profitably, we're able to maintain lower customer and retailer fees as a percentage of GTV. To put this in perspective, our fees are generally about half as much as the fees charged in restaurant deliveries. All of these advantages explain why the Instacart experience remains vastly superior. Based on third-party data, we continue to be the clear leader among digital first platforms in online grocery with more than 50% share of small baskets under $75 and more than 70% share of large baskets over $75. When we look at new customer activations in online grocery, Our large basket activations are more than five times higher than new entrants, which leads to our new activation GTV being multiples higher. Once a customer is onboarded to a platform, we closely track the conversion rate of small basket customers to large basket customers. And our rate is more than five times higher than these other players as well. These are all critical distinctions because approximately three quarters of online groceries and likely even more of the profits sits in large baskets of $75 and above. While our business continues to be impacted by several macro headwinds, our competitive advantages put us in a much better position to navigate this period and come out stronger. We remain relentlessly focused on profitable growth. We're staying disciplined and are managing the things we can control to ensure we continue delivering strong earnings and operating cash flow. Today, we have approximately $2.2 billion of cash and similar assets and recently established a new $500 million share repurchase program to opportunistically buy back shares. Overall, I'm unwavering in my long-term view on the future of online grocery adoption. I'm confident that our competitive advantages will allow us to further expand our category leadership. and we are focused on executing our profitable growth strategy. Transforming the world's largest retail category will take time, but we believe we have all of the ingredients to generate long-term value for our partners, teams, and shareholders. Thank you for your support and being on this journey with us. Now, I'll turn the call over to Nick to provide more of an update on our financials.