Finally, we are about to have our first big Blockbuster IPO for 2023. Instacart just filed for IPO this past Friday and their numbers look pretty good. Net income for 2022 was $428M. Net income for the first 6 months of 2023 was $242M or approximately $500M annualized. Annual revenue growth rate was only 4% YoY for the first 6 months of 2023 but the gross margin improved drastically from 68% to 75%. Gross profits grew 34% YoY for grocery transactions and 24% for advertising. In the filing, the company also mentioned that their advertising revenue has been growing quickly, going from $67 million in 2019 to $740M in 2022, basically 11X in 3 years. I could see them squeeze out more revenue from advertising as brands and stores compete for attention from the customers.
Overall, Instacart’s numbers are pretty good. With $500M profits a year and ~30% gross profits growth rate, I believe a $10B valuation at IPO is quite achievable. Congratulations to the Instacart stakeholders and I hope we will see more IPOs coming up to free up liquidity for startup funding.