Delivery Hero: closes FY-2022 with further improvement

Berlin / DE. (dhh) Delivery Hero SE, the world’s leading local delivery platform, published its results for the last quarter of 2022, showing further advancement towards the Company’s profitability goals. The Q4-2022 results demonstrate an uplift in the adjusted Ebitda|GMV margin to -0.3 percent (-3.3 percent in Q4 2021) for the entire Group, including Glovo. Despite the lifting of Covid restrictions in Asia, the Company achieved a healthy growth: the GMV increased by 9 percent YoY to EUR 11.4 billion in the fourth quarter 2022, while the Total Segment Revenue reached a 21 percent YoY increase hitting EUR 2.5 billion.

Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: «We have wrapped up another successful quarter. We were able to improve our market position in almost all key countries, while significantly improving our profitability. This was driven by cost focus, increased operational efficiencies, as well as our high margin AdTech business, which grew revenues to a run rate of EUR 750 million in the fourth quarter, 2022.»

Well on the way to profitability

Profitability was the backbone of Delivery Hero’s strategy in 2022, and the Company’s consistent focus on this ambition clearly paid off. While Delivery Hero’s Platform business including Glovo reached a positive adjusted Ebitda in Q4, excluding Glovo it even generated a positive adjusted Ebitda for the entire FY-2022.

Building upon the positive development in the Platform business, Delivery Hero’s Integrated Verticals segment delivered a strong quarter and outperformed guidance for the full year, leading to an adjusted Ebitda of EUR -345 million (excluding Glovo) for the entire FY 2022 against the forecasted EUR -380 million to EUR -400 million.

At Group level (including Glovo), the solid performance in both the Company’s Platform business and the Integrated Verticals segment resulted in a FY 2022 adjusted Ebitda/GMV margin of -1.4 percent, coming in at the upper end of the previously given guidance range of -1.4 percent to -1.5 percent. Furthermore, the Company ended FY 2022 with an abundant cash balance of EUR 2.4 billion.

Partly driven by foreign currency effects as well as the Company’s intensified focus on profitability, Delivery Hero’s FY 2022 GMV was just below the guidance of EUR 44.7 billion to EUR 46.9 billion, coming in at EUR 44.6 billion. The Total Segment Revenue for FY 2022 was slightly below the guidance of EUR 9.8 billion to EUR 10.4 billion, coming in at EUR 9.6 billion.

Emmanuel Thomassin, CFO of Delivery Hero, said: «Last year, the entire industry was faced with several challenges and we worked hard to come out of it as winners. We now look forward to continuing on this path in 2023, and we are glad to confirm our guidance of a positive adjusted Ebitda/GMV margin – including Glovo – of over 0.5 percent for the entire FY 2023 and over 1 percent for H2 2023. We also remain committed to reaching free cash flow break-even during H2 2023.»

Delivery Hero – Key Performance Indicators Q4 and FY-2022

All values include Glovo, as well as Woowa and exclude Delivery Hero Korea on a pro forma basis.

(EUR in millions) Q4-2021 Q4-2022 FY-2021 FY-2022
GMV Group 10,433.5 11,353.7 37,974.8 44,614.5
%YoY Growth (RC) 8.8% 17.5%
%YoY Growth (CC) 7.9%
Asia 6,529.2 6,667.3 23,907.0 26,910.4
MENA 1,837.5 2,334.2 6,755.9 8,542.3
Europe 1,506.8 1,772.8 5,354.0 6,570.4
Americas 559.9 579.4 1,957.8 2,591.4
Integrated Verticals 359.3 520.9 1,134.6 1,899.9
Total Segment Revenues Group 2,100.1 2,534.5 7,262.5 9,589.7
%YoY Growth (RC) 20.7% 32.0%
%YoY Growth (CC) 17.6%
Asia 876.6 967.7 3,070.7 3,803.6
MENA 459.6 618.3 1,562.9 2,218.4
Europe 322.2 356.3 1,192.6 1,319.1
Americas 150.7 152.3 509.6 681.6
Integrated Verticals 333.7 490.6 1,061.9 1,766.8
Intersegment consolidation (42.8) (50.7) (135.2) (199.8)