Instacart (NASDAQ:CART) delivered an impressive first-quarter performance that eclipsed analyst expectations. The company benefited from strong order growth and an increase in advertising revenue.

Adjusted earnings reached $0.37 per share, significantly above the $0.14 consensus estimate. Revenue climbed 9% year-over-year to $897 million, easily surpassing forecasts of $838.5 million.

Order volume reached 83.2 million in Q1, reflecting a 14% increase from the previous year, marking the fastest growth rate in a decade. Gross transaction value increased by 10% to $9.12 billion, although the average order value dipped 4% to $110 due to a shift towards restaurant delivery and reduced minimum order sizes for Instacart+ members.

Revenue from advertising rose 14% year-over-year to $247 million, outpacing overall transaction growth. Adjusted EBITDA soared 23% to $244 million, showing enhanced operating leverage.

For the upcoming second quarter, Instacart projects gross transaction value in the range of $8.85 billion to $9.0 billion, indicating 8-10% growth. Adjusted EBITDA is also expected to fall between $240 million and $250 million.