📈 Strong Q3 Growth Drives Revenue Surge
Delivery Hero’s Q3 2024 results reveal 9% GMV growth YoY, boosted by a 25% surge outside of Asia. The company also saw a 24% YoY increase in Total Segment Revenue, with strong performances in MENA, Europe, and Integrated Verticals. CEO Niklas Östberg highlighted the success of customer-centric services like Dmarts, loyalty programs, and quick commerce in driving higher engagement and loyalty. This quarter’s growth maintains the momentum from previous quarters, driven by efficient order fulfillment and enhanced customer experience.
💰 Updated FY 2024 Guidance Reflects Growth
Following a strong Q3, Delivery Hero raised its FY 2024 outlook. GMV growth is now targeted at the upper end of 7-9% YoY, and Total Segment Revenue is expected to reach the upper end of 18-21% YoY. Adjusted EBITDA remains forecasted at the lower end of $768-822M, while free cash flow guidance was raised to $53-107M. The company ended Q3 with a solid $1.65B cash balance, reflecting prudent cash management as it scales globally.
🌍 MENA and Europe Lead Regional Growth
Regional growth highlights include MENA's 30% YoY GMV increase, driven by affordability initiatives and rising order volumes. In Europe, GMV growth reached 21%, with improved operational efficiencies leading to break-even adjusted EBITDA. Delivery Hero recently unified brands like Yemeksepeti and foodpanda, aiming to unlock synergies and further accelerate growth in these high-potential markets.
🌐 Americas Platform Growth on Track
In the Americas, Delivery Hero’s PedidosYa platform led to 21% YoY GMV growth, achieving break-even adjusted EBITDA. Investments in quick-commerce and customer loyalty have driven demand in emerging economies with expanding purchasing power. The Integrated Verticals segment posted a 32% YoY GMV rise, attributed to higher order volume and larger basket sizes. Positive adjusted EBITDA is anticipated for this segment by year-end, further boosting Delivery Hero's financial resilience.
Is Delivery Hero's growth sustainable long-term?
