Instacart has announced a seven percent reduction in employees representing 250 jobs. Chief Operating Officer Asha Sharma will leave the company of March 1st without a replacement.
CEO Fidji Simo stated, “Today we made the tough decision to part with approximately 250 of our talented team members, this will allow us to reshape the company and flatten the organization so we can focus on our most promising initiatives that we believe will transform our company and industry over the long term.” Projects that will receive attention include AI-powered smart carts, enhancing the retail media network and other rationalization initiatives.
For FY 2023 ending 31st December, Maple Bear Inc. trading as Instacart posted a loss of $1,624 million on revenue of $3,042 million with a diluted EPS of $(12.43). Comparative figures for FY 2022 were a net income of $97 million on revenue of $2,551 million with a diluted EPS of $0.96. For the most recent fiscal year, gross margin was 74.9 percent, but operating margin was (70.4 percent) due mainly to an eye-watering research and development cost of $2,312 million representing 76 percent of revenue. General administrative costs attained $803 million up from $339 million in FY 2022.
Maple Bear Inc. (CART) has traded over a 52 week range from $22.13 to $42.95. On February 15th the company had a market capitalization of $7,350 million and traded with a forward P/E of 105.3. On a trailing 12-month basis, profit margin was -53.3 percent and operating margin 5.7 percent. The company has generated a return on assets of 32.0 percent and on equity -48.5 percent. Nine percent of the equity is held by insiders and 53.3 percent by institutions. Six percent of the float was short as of January 31st, 2024.