Maplebear Inc.

Good day and thank you for standing by. Welcome to Instacart's fourth quarter and full year 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 the session, you will need to press 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 session is being recorded. I would like to hand the conference over to Rebecca Yoshiyama, Vice President of Investor Relations, Capital Markets, and Treasury. Please go ahead.

Thank you, Operator, and welcome everyone to Instacart's fourth quarter and full year 2024 earnings call. On the call with me today are Fiji Simo, our Chief Executive Officer, and Emily Reuter, our Chief Financial Officer. During today's call, we will make forward-looking statements related to our business plans and strategy, developments in the grocery industry, and our future performance and prospects, including our expectations regarding financial results and share repurchases. 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 in our last Form 10Q filed with the SEC. We assume no obligation to update these statements after today's call, except as required by law. In addition, we'll 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. 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 over the call to Fiji for her opening remarks.

Thanks, Rebecca, and hello, everyone. I hope you had a chance to read my shareholder letter, where I highlighted the our strong finish to 2024, and the positive momentum we're carrying into 2025. As a category leader in a massive and underpenetrated market, we're not just focused on leading in terms of share of sales, but also by setting the pace for innovation and growth. And for us, these things go hand in hand. The more we innovate, the more indispensable our platform becomes for customers, retailers, and brands. Let me share a few recent examples of how we're delivering on this promise. First, for our customers, we'll laser focus on becoming an even bigger part of their everyday lives. In the past year, we launched new service options like Super Saver and Free Pickup, expanded family accounts to all users, and continuously optimized our marketing and incentive programs. Additionally, our continued momentum with restaurants and the rollout of our industry-leading $10 minimum basket has given customers more reasons to choose Instacart, whether that's for delivery from hundreds of thousands of restaurants nationwide or incremental top-up grocery orders. Our efforts have paid off. We've grown the overall number of people who use Instacart in the past year and drove quarterly users to order monthly and monthly users to order weekly at faster rates year over year. In addition to growing order frequency, we also offer more value to our Instacart Plus members who are growing faster than monthly users and remain our most loyal and engaged audience. Now for our retail partners. We're committed to helping them better meet their customers' needs no matter where or how they choose to shop. With grocery prices increasing over 25% since 2019, the need to innovate and enable savings for customers has never been greater. That's why we've built industry-leading solutions such as EBT Snap acceptance, loyalty program integrations, and digital flyers, each of which now covers over 80% of our GTVs. We also continue to encourage grocers to move to price parity with their stores, as we've seen that the ones that do have grown much faster on our platform. Recently, Kroger introduced same-as-in-store pricing on items featured in their weekly ad, and Schnax and Heritage Grocers Group both moved to price parity chain-wide and across all items, too. The solution we built don't just benefit the more than 1,800 retail banners on our marketplace, but also the approximately 600 enterprise storefronts that we power. Thanks to our investments in our enterprise solutions, we've driven double-digit percentage point increases in growth for the majority of retailers following their upgrades to our latest storefront technologies. And we are onboarding more new retailers to our enterprise solutions than in the past. In fact, in 2024, we launched 30 net new retailer sites, more than double the year before. By empowering retailers to grow their businesses, we're expanding our scale and making our technology and service even stronger and more efficient. And finally, for brands, we're helping brands tackle their biggest challenges while positioning ourselves as a one-stop shop for seamless multi-channel advertising. At the heart of this is performance. By leveraging our suite of innovative ad products, powerful ML models, advanced targeting and measurement tools, our performance remains best in class across a number of key metrics like ROAS, click-through rates, and sales lift. This is exactly what brands are looking for when deciding where to allocate their ad budgets, which is why we've grown to over 7,000 active brand partners on our platform who collectively spent north of a billion-dollar annual run rate on our platform in Q4. This leading technology and performance, plus the breadth and depth of our ad demand, is why we get to attract more and more retailers who want us to power ads on their own properties, which allows us to gain even more scale. We now have over 220 Carat Ads partners who contribute more inventory to our network and therefore allow us to deliver even greater performance for our advertisers. This results in a virtuous cycle of growth, performance, and scale. And while this was always our strategy, it's really great to see it start to build momentum. Pulling all of this together, our innovation is driving growth across the board. What's particularly exciting is that this momentum is fueled by our solid unit economics and critical advantages, giving us a unique ability to capitalize on the massive opportunity in front of us in ways that our competitors simply can't. Years after restaurant delivery platforms followed us into the space, were still the clear category leader. Among digital first platforms, we are leading in share of sales by far in small baskets and even more so in large baskets, with greater than 70% share in baskets of $75 and up. We continue to activate the most new customers to online grocery, in particular with large baskets, where we're multiples higher than the next biggest players. All of these results in Instacart capturing the most GTV from new customers placing their first grocery, convenience, and alcohol order on a digital first platform. And after customers start using Instacart, we're about five times better at converting small basket customers to large basket customers than other marketplaces do. So overall, we are continuing to find new opportunities to make our business even more efficient, which allows us to maintain a disciplined but aggressive approach to reinvesting in growth. By executing on this strategy, we're confident in our ability to extend our category leadership position, deliver short and long-term profitable growth for Instacart and our stakeholders, and transform the industry at large. I couldn't be more excited about what's ahead. And with that, I'll turn it over to Emily to talk about our financials.