Consumer Discretionary
Q1 results confirmed much of Hesham Shaaban’s short thesis - CART’s KPIs and monetisation are working against each other to some degree. Promos are revenue offsets, so while promos can help drive GTV / order growth, it will come at the expense of revenues and potentially to the point where the associated take-rate from the transaction is negative. Hesham suspects CART was pandering to the Street with its 2Q24 GTV guide. He can’t see how it gets there without missing current 2Q revenue estimates, which are likely to increase even further post-print following its strong EBITDA guide.
Edition: 186
- 17 May, 2024