Delivery Hero: wraps up Q3-2023 with accelerated growth

Berlin / DE. (dhh) Delivery Hero Holding S.E., the world’s leading local delivery platform, announced an acceleration of GMV growth to 9 percent YoY and continued monetization optimization, leading to Total Segment Revenue growth of 16 percent YoY in its Q3 results. The Company also confirmed it was on track to reach an adjusted Ebitda/GMV margin of more than 0.5 percent for FY-2023 and more than 1 percent in H2-2023. This means that Delivery Hero expects to improve its adjusted Ebitda by more than EUR 850 million YoY in FY-2023. Additionally, the Company raised its guidance for GMV growth to the upper end of 5-7 percent YoY in FY-2023. Delivery Hero’s financial position remains solid.

CEO and Co-Founder Niklas Östberg: «We are excited by our progress as we drive the business towards positive Free Cash Flow. We doubled down on tech and innovation initiatives, delivering solutions for our customers while also optimizing our operations both on a country, regional, and global level. I’m very grateful to our teams for the strong developments they made this quarter.»

Looking ahead, as margins in the countries with profitable Platform businesses improve throughout the year, they are expected to generate more than EUR 1.3 billion adjusted Ebitda run-rate in Q4-2023, an expansion of more than 30 percent compared to Q4-2022. Delivery Hero has also seen large margin improvements for countries that are still loss making, and now anticipates progress in adjusted Ebitda/GMV margin to around -2.2 percent in Q4-2023, up from -4.8 percent in Q4 last year. A key driver for improvement is the APAC business reaching positive adjusted Ebitda before Group costs in October.

CFO Emmanuel Thomassin: «After another strong quarter we can confirm that we are on course to reach our full year Ebitda guidance, putting us in a strong position for our long term profitability goals. We have seen positive developments in the Gross Profit margin within both our Platform business and Integrated Verticals. The Americas recorded a Gross Profit margin of close to 10 percent, while APAC saw it grow to more than 10 percent due to stronger unit economics and improved delivery costs. This will allow us to continue driving our food delivery and Quick Commerce offerings around the world with greater products, service and availability for our customers.»

Guidance FY-2023

GMV Upper end of 5-7 percent YoY in constant currency (previously: 5-7 percent YoY in constant currency)
Total Segment Revenue Around 15 percent YoY in constant currency
Adjusted Ebitda FY-2023 >0.5 percent of GMV | H2-2023 >1.0 percentof GMV
Free Cash Flow Break-even during H2 2023

Key Performance Indicators Q3-2023

EUR in millions Q3-2022 Q3-2023
GMV Group 11,449.4 11,693.4
%YoY Growth (RC) 12.3% 2.1%
%YoY Growth (CC) 7.6% 8.6%
Asia 6,804.5 6,385.6
MENA 2,260.6 2,716.3
Europe 1,604.7 1,819.5
Americas 779.6 772.0
Integrated Verticals 496.3 602.6
Total Segment Revenues Group 2,498.7 2,712.9
%YoY Growth (RC) 28.0% 8.6%
%YoY Growth (CC) 20.3% 16.2%
Asia 970.1 929.4
MENA 594.1 723.5
Europe 312.8 369.9
Americas 202.2 201.9
Integrated Verticals 473.3 573.8
Intersegment consolidation (53.8) (85.6)