All right, we're gonna go ahead and get started. I'm Doug Anmuth, J.P. Morgan's internet analyst. We're pleased to have with us Instacart CFO, Emily Reuter. Instacart is powering the future of grocery through technology, partnering with more than 1,500 retail banners that represent more than 85% of the U.S. grocery market, and the company has around 8 million active users on its platform. Emily recently became CFO after joining Instacart as VP of Finance in January, and over the last decade, she served in a number of finance roles at Uber, including recently as Head of Corporate Finance, and prior to that, as CFO of Mobility. So welcome, Emily.
Thanks so much for having me.
All right. You joined in January. Curious, what attracted you to Instacart, and how you'll leverage your background and skill set to strengthen the company going forward?
Sure. So, you know, starting with what attracted me to Instacart, the company is the clear leader in the online grocery space, and it's a massive market opportunity. You obviously know that it is, you know, relatively underpenetrated as you look at other categories, and I think there's just a tremendous amount that the company can do to continue to penetrate the online grocery market, and maintain its its leadership position. Additionally, the company has a really strong vision for continuing to innovate and drive technology adoption within the grocery industry at large. And so I think the the runway ahead and the ability to sort of continue to innovate and transform grocery is just enormous.
In terms of what I think I can bring to the table at Instacart, leveraging my experience at Uber over the past 10 years is, you know, first and foremost, you know, I have a lot of experience operating in a multi-sided marketplace, experience really balancing growth and profitability, you know, during my time as a CFO of the mobility business and in corporate finance. Finding ways to continue to invest in growth at the same time as delivering consistently improving economics year after year after year. So we did that while investing in and developing a broad portfolio of products that help serve a broad set of user use cases and needs. And so I think that I can bring that all, that new lens to, you know, to Instacart.
The last thing I'll say there is also just bringing that experience of having, you know, helped take Instacart, sorry, take Uber public, becoming a newly public company, getting into sort of that operating cadence of being a public company. So, Instacart is well ahead of many companies at this point in its journey in terms of profitability and financial rigor, but can definitely help bring my experience to bear on that, in that regard.
Okay, great. So maybe you can talk about where you've focused most of your time over the past four or five months. Have there been any surprises to you so far? And is there anything that you've identified that maybe you'd do differently?
Sure. Maybe I'll start with surprises. I think the thing that surprised me most was just how great the company is at operating and executing and making decisions very quickly cross-functionally. You know, it's a large organization at this point in time, but it still operates incredibly nimbly. I think I was from the outside, one of the things that drew me to Instacart was the fact that it is, you know, entirely focused on the grocery industry, so all of its technology really purpose-built for grocery, but coming inside, really just understanding the depth of the competitive advantage that the company has in the space across, you know, a whole host of areas that we can get into as we move forward. But it's just been really nice to see.
What was the other part of your question? Sorry.
Anything you would potentially do differently and where you focused your time most?
Great. Yeah. So I've spent a lot of my time focused on understanding the, you know, trade-offs that we are making and will continue to make between growth and profitability. That's something the company's obviously been doing through its history, and continues to do. But I'm really trying to take my own lens to the business and understand where are we spending, when, why, how, and, you know, are there opportunities to continue to evolve that? Maintaining leadership position as the clear category leader is a core priority of ours, and so we are looking across the spectrum, whether that's what we've been talking about the last couple of quarters, leaning in, in some cases, into investment opportunities like incentives, where we are able to be more targeted and sophisticated and personalized.
But also in terms of thinking about, you know, how we're developing our product portfolio. And so I think there's just a lot more that, you know, I'll be doing in the coming months in terms of spending my time, you know, ensuring that we're both continuing to invest in robust growth, but also delivering improvement in profitability.
Okay, great. So let's talk about the industry overall. Grocery remains underpenetrated online. For it to go to north of 20%, what's the path to get there? What really has to happen in your view?
So I think first and foremost, bringing both new users to the category and reengaging users that have tried the category, we have a product today that is the best it's ever been. If you tried Instacart four years ago, and you come back today, it's an entirely different experience in terms of the selection, the quality, the convenience, all of the things that we think make our position, you know, incredibly unique in the industry. And so we are spending time and energy and dollars against marketing because we know that if you come back and try the product today, it's just an amazing experience. So that's part one. The second part is, I think, continuing to go deeper on all the things that make us differentiated today. So you know, we talk about selection.
We have 1,500 retailers on the platform, 85,000 locations. We know that selection really matters to our users, because on average, they shop at over five retailers over their lifetime. And so we wanna continue to expand that selection, whether that's through expanding the set of products and services that an individual retailer offers. But also in the most recent quarter, we actually were able to add an incremental retailer to all of our users just by increasing our delivery radius, because we've become so efficient at delivery. On the affordability front, cost is and continues to be a barrier to adoption.
So we spend a lot of time ensuring that the kinds of deals or discounts that you can get in store, like, using your loyalty card or what you get from the weekly flyer that you get in the mailbox, we now have digitized that. We integrated with loyalty programs so that customers are saving, you know, $4.75, which is 20% more than they were saving a year ago. So we're very focused on how do we continue to drive down costs, both for that initial adoption, but also for to encourage ongoing ongoing usage. Quality. We are, you know, best in class at quality. It matters to customers, surprisingly, not surprisingly, that they get what they ordered.
And that sounds simple, it's very hard because the inventory on the shelf is changing all day, every day. We have deep integrations with retailers that allow us to know what's on the shelf, but even that information gets stale very quickly. And so we layer on that information that we get maybe the morning of, or in some cases, several times a day, with hundreds of millions of data points that allow us to predict, you know, it might have been on the shelf at 8 A.M. when you're ordering at 2 P.M., I'm gonna tell you that it's likely out of stock. And that helps me ensure that you select a backup. And actually, if it's really critical to your order, you know, maybe you actually readjust.
Ultimately, we know that we're able to deliver really high satisfaction orders, even when there is, on average, one replacement per order. We can deliver 95% satisfaction with our replacements or substitutions. And that's incredibly important in terms of having you come back into the ecosystem for your next order and your next order, and your next order. Across the board, just continuing to do all the things we do. The last thing that I'll mention is speed. We're really best in class at delivering speed, the combination of quality and speed, and selection. This is not speed for two items from the corner store. It is speed for a $100+ basket. Eighty percent of our orders in the most recent quarter were on demand.
Now, 40% of those, or, you know, roughly half, were priority orders, which for us are, you know, median delivery time of 50 minutes, in many cases, 30 minutes. And so this is, again, 30 minutes for your full grocery order for the week, with a level of quality that is really unmatched. And so we think that if we keep doing all of these things, and then we keep bringing customers back into the ecosystem, that'll really help continue to drive that online penetration and allow us to continue to be ahead of the curve, from a leadership position.
Okay, great. Market share across basket sizes is a frequent discussion with investors. Maybe you can just help us understand Instacart's market share position in both higher and lower basket sizes. And then how do you gauge the competitive risk from other third-party delivery providers, and then also some of the grocers themselves?
So we're the clear market leader in, in online grocery, as it relates to, to third-party players. And, from a large basket perspective, we continue to be more than 70% share, and from a small basket perspective, we continue to be, more than 50% share. And both of those have grown year-over-year. So both are important. So I'll start maybe talking a little bit about large baskets.
Mm-hmm.
Why are we so good at large baskets? Why do we care about this category? Well, we care about the category because 75% of the market is in large baskets. So of course, it's important, and we wanna be there, and because of that, we've focused on it, and we've become excellent at it, and we're better than anyone else at delivering those large baskets. We'll continue to focus on that, continue to grow our market share there. We're five times better than others at activating large baskets. We're five times better at converting small baskets to large baskets, so of course, that is an area of focus. So I think then the question naturally becomes: What about small baskets? And this is an area of focus for us as well.
We want to continue to be a leader in small baskets, but we wanna do it in a way that is sustainable over time. Meaning, I want to, for our weekly shop customers, be there for them when they want to do, you know, a fill-in basket midweek. I wanna be there for them when they need a convenience shop. I don't necessarily want or care about an order that is here today because it is subsidized, that goes away tomorrow, and that subsidy goes away. So we're very conscious of making sure that we're absolutely available for the use case. In terms of what I said earlier, the speed, we can do those small baskets, and I can do them very fast. I can do them effectively.
But again, we wanna make sure the ones that we're going after are the ones that ultimately convert to profitable customers over time. So we think about it from a customer lens. Is this customer gonna be profitable over time? The order can be unprofitable, that's okay, but if it's a perpetually unprofitable customer, I'm okay missing out on that.
... Got it. Okay, helpful. On GTV growth, so GTV grew 11% in 1Q, also included some one-time benefits, and the high end of the 2Q guide suggests 9% growth. Can you just talk through some of the key drivers, in your view, to return to, GTV growth in the double-digit levels?
Sure. So, you know, I think we talked a lot in Q1 about some of the one-time items. Those were things like leap day, of course, but also inclement weather. And that was, you know, worse than we expected, but also somewhat exacerbated actually by how strong our supply is in the market today. And that's important because, whereas, you know, the winter weather was more extreme this year versus a more mild winter weather season last year, but also we were able to match those spikes in demand more effectively. Meaning that a year ago or two years ago, you might have had a spike in demand, and you actually end up with unfulfilled orders. Today, we're able to be even more dynamic than we were in the past, to be able to actually satisfy those orders.
I say that because it's an important in understanding the dynamics of Q1, but also in understanding our capabilities, which is that it doesn't matter what's happening, whether it's weather or something else. We're able to flex that supply, and it's a very, you know, important part of our underlying, you know, business model. As it relates to going forward and you know, sustaining double-digit growth, we're of course very focused on getting the business back to double-digit growth, particularly focused on maintaining our clear leadership position. That takes a lot of what, you know, I talked about earlier. It takes just continuing to add new users, continuing to engage existing users, and we're doing that through all of the elements I talked about, I talked about earlier.
We feel really good about that underlying health of the business and that improvement that we've seen, you know, quarter after quarter after quarter, through 2023, and now into 2024.
What would need to happen from a cohort perspective to get there?
So it's an interesting question because, you know, in 2023, we talked a lot about specific cohort behavior, and the reason we did is that 2023 was very impacted by by what we call mature cohorts, but really sort of COVID and pre-COVID cohorts. Because one, we had COVID cohorts that were a very sizable part of our business. So they were over 50% of the business, and they were declining because some of those customers had come to the company for other reasons than convenience, right? They came for health reasons, which is very different. And so the expectation, of course, was that some of those might go away over time, and they did. And that happened in 2023.
It was even more exacerbated by the fact that we had actually been a pioneer in building out EBT SNAP, for online grocery. And so when EBT SNAP benefits, there was incremental benefits related to the pandemic, when those came off, really ending, in March of last year, that created an additional headwind because we have been so far ahead, in EBT SNAP. So we spent a lot of time talking about cohorts because it was in and of itself, really impactful in 2023, and of course, we'll always call out for you, for you all, when we see these kinds of situations. That all said, going forward, you know, we think about cohorts from our perspective as an output, not really an input.
We don't operate the business day-to-day thinking about, you know, there's someone on point to drive 2020 cohort growth, right? That's just not how we run the business. We think about how much do we wanna allocate and what returns are we getting on new users? Same thing. How much do we wanna allocate? What return are we getting on existing users or lapsed users? And we look for the highest and best return. So while we're pleased to see that the mature cohorts, the decline, has continued to improve for four quarters in a row, we have added, you know, new users in 2024 that are, you know, bigger than our pre-COVID cohorts. So we're very pleased with the direction of travel there.
We'll probably spend less time, unpacking or talking about the specifics of cohort behavior, because, again, it's just not how we day-to-day operate the business.
Right. Okay, makes sense. All right, shifting to merchants and partnerships, how important is exclusivity for Instacart going forward, and how should we expect these deals to trend?
So first and foremost, what I'd say is, you know, exclusivity is not our strategy. For, you know, the better part of a decade, Instacart was, you know, sort of the de facto exclusive partner of many retailers because, you know, there weren't a lot of other options. So direction of travel, we'd expect that, retailers over time will add their businesses to other marketplaces. And that's okay. What we're focused on as a business is continuing to provide value across the value chain to our retail partners. And that allows us to help them grow their business over time. So continuing to deepen our relationship, that means, as an example, we obviously have many retailers on our marketplace, but we also power the owned and operated websites of many of our retail partners.
We power Carrot Ads for them in many cases, which is our ad tech and our ad sales team powering, powering ads, where we can both participate in the economics of those ads. We're continuing to expand our set of products and services, with, with those retailers, like EBT SNAP, like pickup, alcohol, prescriptions. There's a host of things that we can do to continue to, to, deepen those relationships. And so, you know, what happens when a retailer goes non-exclusive? They stay with Instacart. We're an important part of their business. We continue to expand those set of services. We continue to grow our business. If you look at, you know, as examples, Aldi and Schnucks, which went non-exclusive over a year ago.
Mm-hmm.
Both of those businesses are growing, compounded at a growth rate higher than our total company. If you look at Albertsons, is another example that went non-exclusive prior to that. If you exclude the impact of EBT SNAP, where Albertsons we were particularly early in rolling out EBT SNAP, and it was particularly over-rotated towards the benefits of the pandemic-related benefits, if you exclude EBT SNAP, we will be growing with Albertsons in Q1, year-over-year and quarter-over-quarter. So across the board, just really looking to continue to provide that full value chain of services, help our retailers grow their businesses, and we feel good about that path.
Okay. So that brings us to the announcement last week. Uber announced that it would expand its partnership with Costco-
Yep.
which we believe is one of your top retail partners. What does that mean for Instacart and GTV growth going forward, and how are you positioned to hold on to share?
I'd start with the fact that Costco, just, just for context, has never been an exclusive partner to Instacart.
Mm-hmm.
And so within that context, Uber and Costco have had a pilot program in Texas for nearly three years across 25 stores. So we look obviously at that period of time and ask, you know, what happened? During that time, you know, we have maintained the vast majority of Costco's e-commerce business in Texas. We haven't seen a meaningful impact to our business. And another way we look at it is, our business in Texas with Costco has grown at, you know, about the same rate as our business in other geos. So, you know, overall, no noticeable impact from that partnership. We estimate today that that partnership is in about 17 states that reflect about, you know, 30% of our order volume with Costco. So, we feel pretty good about the...
We feel great, actually, about our relationship with Costco, which at the same time, has just continued to deepen over time. So in addition to Costco being on our marketplace, we have, we power their owned and operated same-day site. We have continued to expand with them. We just rolled out EBT SNAP. And so overall, from a relationship health standpoint, we feel really good about where we are with Costco.
Okay. Let's talk about two other large players in the space, Walmart and Amazon. Maybe you could just talk about what makes Instacart's offering so differentiated versus those players, and in particular, some of the advantages from the 600,000+ shoppers on the platform.
Sure. So I talked about several of our advantages earlier, and I'd point to, you know, really two specifically standing out as it relates to Amazon and Walmart. The first is on selection. So I talked earlier about how, you know, on average, our consumers shop from more than five retailers. You know, that's because people like selection, and they show it in terms of their shopping behavior. It may be that they have their favorite retailer that they're shopping from week to week. They supplement that with club retailers on a monthly basis, and then they have specialty retailers that they're using for an occasion and new verticals use cases. So we believe that our selection is a powerful differentiator.
We have 1,500 retailers on the platform, and we continue to expand both the number of retailers, but also the set of services that we have with them. The other factor is speed, and we talked a bit about that. You know, 45% of our orders are accepted by a shopper that's within a mile or already at the store, which means that we can already start, you know, pick, packing, and delivering the order. And that's a really differentiated experience. I don't know if you've had that experience of hitting, you know, order, and then it, it's accepted very quickly, and you're already, you know, already getting updates. That's a really magical experience, and we think that that is and will continue to be a differentiator.
To your point on the 600,000 shoppers, that's a big part of it. You know, I talked a little bit about our ability to flex to meet demand, you know, related to winter weather, but that's every day. You know, so there's spikes in demand that happen throughout certain parts of the day. You don't want your groceries less fast on Sunday afternoon just because everyone's ordering then. You probably want them also in 30 minutes or 50 minutes or whatever your time constraints are, and we can do that. It's a very different model than, you know, needing to pick a 2-hour window or next day. We would like to also serve those use cases. People have different needs. They have them...
Sometimes the same person has different needs week to week or month to month, depending on, you know, I'm ordering today later than usual, and now I need priority order, or maybe a different day, I don't need as speedy. But generally speaking, we know, given that 80% of our orders are on demand, that people care about speed, and we feel particularly differentiated there.
Okay. You recently announced a partnership with Uber-
Mm-hmm.
for them to power food delivery from the Instacart app. If you can talk about the rationale here and how you think about, incrementality from the partnership.
So we know that our consumers, many of them are already ordering online food delivery, and we also know that many of them are, are not, and so we think that's an opportunity as well. But we wanted, you know, given that, we wanted to be able to provide, that selection and that opportunity, for our customers. At the same time, we didn't want to do what many, you know, others in the space would do, which is spend, you know, $ billions, many years, only to get to, you know, limited supply and a not great or comparable customer experience. And so we found an incredible way to get that supply overnight, through the partnership with Uber.
So overnight, leading selection of restaurants, combined with best-in-class selection on the grocery side, we're able to do it in a very capital-efficient way, where we have positive unit economics on restaurant orders out of the gate, and we did it in a way that doubled the value of Instacart Plus overnight. So we think about the incrementality as it relates to... or we think about the restaurant component of our offering as really reinforcing the core of our online grocery model.
Mm-hmm.
Someone who comes to us for grocery, it may be more engaged with the app, more likely to come back and do more grocery orders over time, bring more value to our retail partners. So we think of it as a very important reinforcing mechanism for our core grocery business. At the same time, we think we can bring a lot of value to the partnership in terms of our customer base, which has more of a suburban bent and more family-oriented, and those are, of course, typically great great customers and great baskets. So we're really looking to make the partnership successful and bring the value of Instacart Plus to more and more people.
How do we think about the flow-through in terms of the P&L?
Sure. So, well, first and foremost, I'd say that the orders themselves, the GTV, will be captured in GTV and orders respectively. What we've disclosed about the economics of the transaction are that we will receive an affiliate fee related to orders that we send to Uber, and that will show up in transaction revenue.
Okay. Just you're capturing GTV?
Yes, we're capturing GTV.
You're capturing GTV?
Yeah.
Okay. Okay. All right, and is that something you would market around or in terms of, like, increasing awareness for your users? And what's the timing on the partnership starting?
So certainly, our both companies are very incentivized to make the partnership work. We're both very excited about it. So we would think about marketing it as we do anything else. We're looking at the holistic value of any dollar of spend in terms of what we think we can get in terms of return. So again, I don't think about it as I'm incentivizing you or marketing a customer specific to restaurants for that restaurant order in and of itself. I think about it as I want you to be exposed to our restaurant offering, because I think when you are, you, again, will come back more frequently to the Instacart app. You're more likely to do more groceries over time. And so to the extent we can enable that flywheel effect, we will definitely lean into it.
But we think about it through the same lens or metrics that we think about investing a dollar across core grocery today, across our new verticals business, across restaurants. And so we think about it holistically, and we'll certainly look to spend there. There was a second part of your question.
Timing.
Timing. Yeah. So, looking to roll out nationally, within weeks, not months.
Okay, great. All right, let's switch gears. Advertising growth, it's been a nice, nice driver within the business, certainly over the last couple of years. It has been more muted, the last couple quarters, and expected to grow at kind of similar rates in 2Q. What are the key levers to get ad revenue growth accelerating again?
Yeah. So, very excited about the long-term potential of the ad business. You mentioned that we've grown, you know, more muted growth over the last couple of quarters and guided to a Q2 growth rate that's sort of in line with what we saw in Q4 and Q1. Now, there's a couple things that are going on there that explain why we are where we are, though we're not happy with where we are, and we're really focused on, you know, continuing to accelerate that growth. So why we are where we are? The first is around just the dynamics of the advertising business, and it tends to lag GTV growth.
When advertisers are looking to spend, they're looking for a combination of return on that ad spend, which we think we're very good at, and we have that, you know, very well documented in terms of our ability to provide measurement capabilities, and we have accreditation in this space, and so we have that. The other side of the equation is they're looking for growth. Of course, we didn't grow as strongly in 2023 as we would have liked. That said, we have continued to accelerate our top-line growth, you know, for four quarters in a row, and so that really helps that conversation. Ads budgets, particularly for the largest advertisers, are planned pretty far in advance. So it's not that you see one quarter of growth and ads budgets flip overnight.
You're able to move ad budgets much more fungibly or flexibly with smaller advertisers, but as you can imagine, the large advertisers are important to our business, and so that will take time. So we do expect that to happen. The other piece of the equation that's been happening is that, while the underlying ads business is healthy and we have thousands of brands that are growing double digits and very attractively, we have a number of specific brands that have pulled back on spend, and that's related to idiosyncratic issues with their business. So we called out on the call that we had some alcohol brands as an example, that have pulled back because of, you know, structural headwinds in the alcohol space or individual consumer goods companies that we know are struggling.
So we feel really good that we know why they're pulling back. They're pulling back broadly. They tend to pull back, you know, last on Instacart because we are so measurable and we stack up very well from a returns perspective. But we're over-rotated towards those brands, and it means we need to continue to diversify our our spend base. So what does it take to grow more healthily going forward? You know, that's a big part of it. So one is we have 5,500 brands on the platform, we need to go deeper with all of them, and we'll do that by growing at the rates we've been growing at, and continuing to invest in measurement, where I think we're excellent today and can only get better.
We'll continue to expand the longer tail of advertisers, where obviously, as you get to that longer tail, we need to build better self-serve tools so that those advertisers can interact with our platform more easily. And we're doing that, but that takes time. And then the second part of the equation is all of the things that we're doing off-platform. So everything I just mentioned, I'm really focused specifically on the advertising we do on the Instacart app. We also do advertising through our Carrot Ads tech on third-party sites. So that is a business that's already up and running, but we can do more there and continue to expand our services to more retailers. And then as we go farther down the pipe, we're talking about things that are-...
Pretty nascent, and that is ultimately we'll be advertising on our Caper Carts, which are in-store shopping carts that are technology-enabled, where there will be a screen that can provide advertising opportunities with the consumer real-time in store. And then lastly, we've announced a number of partnerships with with partners like The Trade Desk and Google and Roku, where we can use our proprietary data that is very rich in terms of customer shopping behaviors to be able to allow CPGs to be more targeted in their spend that they're utilizing off-platform. So again, those are, you know, those take a bit more time, but we're pretty excited about the long-term path here.
Okay, great. Let's shift gears, talk about financials a little bit. You've committed to expanding Adjusted EBITDA in 2024 on an absolute and as a percentage of GTV basis. Can you just talk more about the key drivers of leverage and then how you think about this year, kind of in context, to your long-term financial targets?
So, you know, you asked a question earlier, what I was surprised about or maybe happy about when I joined the company, and I think your question really speaks to one of the answers, which is that there's a lot of levers in the P&L. And so as I kind of go top to bottom, if I think about something like transaction revenue, you know, sort of one line externally, that's six lines to me, and things that I can make choices about every day. So that is, I can drive and have been driving efficiency in terms of fulfillment, where we just keep turning the crank there, whether that's things like batch rates, it's the fact that 75% of our orders are fulfilled at stores where we have a planogram.
That means that the shopper literally is being told, like, "Now you're going here, go to aisle 4, go to aisle 8." It means they're faster at being able to pick, pack, and deliver high-quality orders. I said earlier that our shoppers are, you know, within a mile of the store 45% of the time. So, so our fulfillment efficiencies, I can then choose to, you know, drop to the bottom line, or I can choose to reinvest those savings into other things in transaction revenue. That is, how we price our products, which has thousands of levers down to state-level, fees, down to how we price things like, you know, priority versus pickup on two sides of the speed spectrum, speed and convenience spectrum.
There's a lot that we can do just within that line, and we are doing, and we're actively managing it.
Mm-hmm.
And I say that because, you know, when you think about transaction revenue, it is at the higher end. It's in the top half of our long-term guidance range. We like where we are, but we want to maintain that flexibility to lean into, incentives is another item that hits, as contra revenue. So we want to be able to have that flexibility, but it may mean that transaction revenue could, you know, go up and down quarter to quarter, because we're making different choices that at the end of the day, drive EBITDA, which is what we're focused on, but may create some optical movement from, from an external standpoint.
We just spent a lot of time talking about ads, so while, you know, more near term, not growing as fast as we would like, you know, we'll continue to march towards our long-term targets. And then, of course, we've shown a lot of OpEx leverage over the last, the last while, and we'll continue to do that. But I'd obviously call out sales and marketing, where that's more of a decision. If we see the returns and we wanna, you know, continue to invest in profitable growth, we'll do that.
Okay, great. Maybe you can talk to your guidance philosophy and just how you're thinking about that going forward.
Thanks. So first and foremost, you know, I'll start with GTV guidance. We guided to, you know, roughly 7%-9% growth in Q2. The way we think about GTV guidance is we're looking at what's happening in the business when we provide that guidance. What is the most recent data? We're trying to provide our best guess of what's gonna happen, you know, in the quarter. So I think about GTV guidance as we're providing guidance that we do not expect to exceed. It is truly what we think will happen in the business. Of course, you saw us in Q1 get surprised by some upside on the weather front. But you know, based on what we see in the business, that's where we'll guide.
On EBITDA, we wanna be able to deliver what we say we're gonna deliver, but I also would like to have flexibility to operate the business, how, you know, we need to operate the business. The day-to-day operations don't live neatly within quarters. Things, you know, shift. Some things move earlier, some things shift later, and I wanna be able to have that flexibility to invest when I see that opportunity. So wanna be able to deliver on EBITDA, with some flexibility and, don't expect to exceed our GTV guidance.
Okay. All right, we're gonna leave it there.
Thank you so much.
Thank you, Emily.
Thanks. Thanks, everyone.
Thanks, everyone.