Q3 2024 Trading Update

Deliveroo PLC

17 October 2024

 

17 October 2024

Q3 2024 Trading Update

Deliveroo plc

Solid GTV growth and continued strategic progress

●    Continued robust performance with growth in GTV and orders

○    Gross transaction value (GTV) up 6% year-on-year (YoY) in constant currency

○    Orders increased 2% YoY, while GTV per order was up 4% in constant currency

○    Further progress on our consumer value proposition (CVP), including enhanced Plus loyalty programme, increasing penetration of mid-sized grocery baskets and expanded selection in retail

●    GTV growth remained healthy in UKI with good growth in most International markets

○    In UKI, GTV growth was 7% YoY, with order growth improving to 2% (1% in Q2 and 0% in Q1) as we made progress on our initiatives in a more stable but still uncertain consumer environment

○    In International, GTV growth was 4% YoY in constant currency, impacted by the temporary disruption in France as a result of the Olympics. Elsewhere, UAE and Italy continue to grow strongly, while Hong Kong remains a laggard due to the difficult competitive environment

●    Revenue take rate up 30 bps sequentially reflecting timing of investments into CVP

○    Group revenue growth of 4% in constant currency (2% in Q1 and Q2)

○    Revenue take rate (% of GTV) decreased YoY but up sequentially versus Q2 2024 predominantly driven by seasonally lower promotional spend in European markets during Q3

●    FY 2024 guidance maintained  

○    GTV growth (in constant currency) anticipated to be in the range of 5-9%

○    Adjusted EBITDA expected to be in the upper half of the £110-130 million range

○    Free cash flow expected to be positive for the full year 2024

Will Shu, Founder and CEO of Deliveroo, said:

"Our results demonstrate another solid quarter of growth with a 6% year-on-year increase in GTV. UKI growth remains healthy, with improving order trends and overall we are pleased with the underlying growth in International, driven by the UAE and Italy.

There are many exciting opportunities ahead for the on-demand delivery industry. With our market-leading CVP, our pioneering approach to new verticals and our continuing work on loyalty, price integrity and service, Deliveroo is well-positioned to capture the significant growth potential in an industry still early in its maturity."

						Change						Change
			Q3 2024	Q3 2023		Reported currency	Constant currency		9M 2024	9M 2023		Reported currency	Constant currency
Group
GTV (£m)			1,778	1,697		5%	6%		5,468	5,204		5%	6%
Orders (m)			71.1	69.7		2%	2%		218.5	214.9		2%	2%
GTV per order (£)			25.0	24.3		3%	4%		25.0	24.2		3%	4%
Revenue (£m)			498	487		2%	4%		1,526	1,507		1%	2%
UK & Ireland (UKI)
GTV (£m)			1,098	1,026		7%	7%		3,294	3,084		7%	7%
Orders (m)			39.5	38.8		2%	2%		119.7	118.4		1%	1%
GTV per order (£)			27.8	26.4		5%	5%		27.5	26.0		6%	6%
Revenue (£m)			308	297		4%	4%		922	899		3%	3%
International
GTV (£m)			680	671		1%	4%		2,174	2,120		3%	4%
Orders (m)			31.6	30.9		2%	2%		98.8	96.5		2%	2%
GTV per order (£)			21.5	21.7		(1)%	2%		22.0	22.0		0%	2%
Revenue (£m)			190	190		0%	3%		604	608		(1)%	2%

Appendix:

Average monthly active consumers and monthly order frequency

	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024	Q2 2024	Q3 2024
UK & Ireland (m)	4.0	4.0	3.9	4.0	3.9	3.9	3.8
International (m)	3.1	3.1	3.0	3.3	3.3	3.2	3.1
Average monthly active consumers (m)	7.1	7.1	6.9	7.3	7.2	7.1	6.9
Year-on-year growth in MACs	(7)%	(4)%	(2)%	(2)%	0%	0%	1%
Average monthly order frequency	3.4	3.4	3.4	3.4	3.4	3.5	3.4

Monthly active consumers ('MACs') is the number of individual consumer accounts that have placed an order on our platform in a given month; average MACs for a quarter is the average of MACs for the three months of that quarter.

Average order frequency (monthly) is the average number of orders placed by active consumers in a month; AOF for a quarter is the average of AOF for the three months of that quarter.

 

Analyst & Investor call: Deliveroo will not hold a conference call or webcast on the trading update.

Contact information

Investor Relations

Tim Warrington, Investor Relations Director - [e-mail] 

Rohan Chitale, Investor Relations Director - [e-mail]

Media Relations

Joe Carberry, VP Policy & Communications - [e-mail]

Brunswick Group: Rosie Oddy and Jono Astle - [e-mail]  

 

About Deliveroo plc ('Deliveroo' or 'the Company' or 'we')

Deliveroo is an award-winning delivery service founded in 2013 by William Shu and Greg Orlowski. Deliveroo works with approximately 181,000 best-loved restaurants, grocers and retail partners, as well as around 135,000 riders to provide the best on-demand delivery experience in the world. Deliveroo is headquartered in London, with offices around the globe. Deliveroo operates across 10 markets, including Belgium, France, Hong Kong, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the United Kingdom.

Further information regarding Deliveroo is available on the Company's website at https://corporate.deliveroo.co.uk/.

Additional Notes

1. All figures in this trading update are unaudited.

2. All growth rates reflect a comparison to the three-month period ended 30 September 2023 unless otherwise stated.

3. References to "Q3" are to the three-month period ended 30 September 2024 and to "YTD" or "9M" are to the nine-month period ended 30 September 2024, unless otherwise stated. References to the "year", "financial year" or "2024 financial year" are to the financial year ending 31 December 2024 and references to the "last year", "last financial year" or "2023 financial year" are to the financial year ended 31 December 2023 unless otherwise stated.

This announcement may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target", "believe", "expect", "aim", "intend", "may", "anticipate", "estimate", "plan", "project", "will", "can have", "likely", "should", "would", "could" and any other words and terms of similar meaning or the negative thereof. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and its investments, including, among other things, the development of its business, trends in its operating environment, and future capital expenditures and acquisitions. The forward-looking statements in this announcement speak only as at the date of this announcement. These statements reflect the beliefs of the Directors, (including based on their expectations arising from pursuit of the Group's strategy) as well as assumptions made by the Directors and information currently available to the Company. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate and none of the Company nor any member of the Group, nor any of such person's affiliates or their respective directors, officers, employees, agents and/or advisors, nor any other person(s) accepts any responsibility for the accuracy or fairness of the opinions expressed in this announcement or the underlying assumptions. Actual events or conditions are unlikely to be consistent with, and may differ significantly from, those assumed. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any forward-looking statement will come to pass. No one undertakes to update, supplement, amend or revise any forward-looking statements. You are therefore cautioned not to place any undue reliance on forward-looking statements.

 

END