Deliveroo FY profit guidance bolstered by strong Q4
UKI revenues were also up 7% to £332m
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Deliveroo has reported a 7% increase in gross transaction value (GTV) YoY to £1.97bn and a revenue growth of 6% to £545m in Q4, achieving the upper end of its adjusted EBITDA earnings guidance of between £110m-130m range.
As a result, its FY 2024 GTV also saw a 6% rise to £7.43bn, which was in-line with guidance of 5-9% (in constant currency).
In Q4, the group’s orders also increased 3% YoY and its GTV per order was also up by 4%.
Meanwhile, it reported group revenue growth of 6% to £545m in constant currency. However, as expected, revenue take rate (% of GTV) decreased 40 bps YoY due to our planned CVP investments
UKI GTV growth improved to 9% to £1.19bn in Q4 with order growth accelerating to 5% (Q1: 0%, Q2: 1% and Q3: 2%), as further execution on its initiatives helped drive improvements to frequency and retention despite continued uncertainty in the consumer environment. UKI revenues were also up 7% to £332m.
Additionally, international GTV growth increased to 5% to £771m with orders flat and GTV per order up 5%. Deliveroo saw continued strength in UAE and Italy, and a slight improvement in France, despite some ongoing market softness. Hong Kong continued to be impacted by the “difficult competitive environment”.
Excluding Hong Kong, international GTV growth was 10% in constant currency, while orders grew 6% YoY. Lastly, international revenues increased 3% to £213m.
Will Shu, founder and CEO of Deliveroo, said: “I’m proud of our progress in 2024 as we continued to strengthen our consumer value proposition. We enhanced our loyalty programmes, delivered strong growth in grocery and secured new partnerships to expand our retail selection, enabling us to bring even more of the neighbourhood to consumers’ doors.
“Our continued execution has driven improved frequency and retention in Q4, with order growth improving throughout the year in UKI. Our execution has also continued to deliver profitable growth, with EBITDA expected to be towards the top end of our guided range. We see many exciting opportunities ahead with significant growth potential for Deliveroo.”
