Home » Markets » Instacart revenue growth accelerates ahead of planned IPO
Instacart revenue growth accelerates ahead of planned IPO
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Instacart orders and revenue grew in the second quarter as consumers stuck to online grocery delivery despite rising prices and store reopenings, a promising sign for investors as the company prepares for a public offering as soon as later this year.
Instacart is one of the few companies in Silicon Valley moving toward a public listing in what might be one of the slowest years for IPOs in decades. A drop in the value of formerly highly valued technology stocks ranging from Snowflake Inc. to Uber Technologies Inc. has put renewed pressure on still-private companies looking to go public.
Revenue for Instacart during the three months ended in June climbed 39% from the year-earlier period to $621 million, investors said, the highest quarterly revenue in Instacart’s history. The increase was stronger than in the first quarter, when revenue increased 15% year over year.
The San Francisco company’s growth was driven by an increase in the number of orders placed on the app, which climbed 25% from the year-earlier quarter to more than 60 million, people familiar with the matter said. The quarter also was helped by the growth of new consumer price plans including lower-cost scheduled delivery and more expensive fast delivery options, as well as lower average fulfillment costs by grouping individual orders.