Online food delivery company Delivery Hero has raised its full-year revenue outlook, after it swung to a profit in the first half of the year on accelerating growth.
The Berlin-based company expects total segment revenue to grow around 15% this year, compared with its previous guidance for growth of around 10% in constant currency terms.
After a pandemic-driven boost to growth, Delivery Hero has focused on reaching long-awaited profitability while maintaining growth as investor confidence in the rapidly expanding but mostly unprofitable sector started to wane.
EBITDA Performance
The group said its adjusted core operating result (EBITDA) swung to profit in the first six months of the year, from a loss of €323.0 million in the same period a year earlier and surpassing analysts' expectations of a loss of €5 million euros in a company-compiled consensus. It did not disclose a concrete figure.
Adjusted EBITDA margin on gross merchandise value (GMV) in the second quarter came in at 0.2% on improved cost allocation, the company said.
Overall GMV growth rose to 8% for the year, exceeding the German group's original expectations of 4% year-on-year. Group GMV outside of Asia saw double-digit growth of 18%.
Revenue rose 16% in constant currency to €2.58 billion in the second quarter, slightly above consensus estimate of €2.50 billion.
'Significant Improvements'
“Our team has executed another fantastic quarter, with significant improvements in both consumer and rider products," commented Niklas Östberg, CEO and co-founder of Delivery Hero. "As a result, we’ve seen an acceleration in YoY growth in Q2, as well as an improvement in category leadership. We achieved this while still hitting the milestone of a positive adjusted EBITDA on Group level.”
Delivery Hero's stock was up 3.6% in early Frankfurt trade.
Additional reporting by ESM
